1STRATEGIC MANAGEMENT OF WOOLWORTHS Section 2: Executive Summary The report is built on the study on three major strategic initiatives that have been applied by Woolworths and the impact of these on the future operations as well. The three major strategies that are applied by Woolworths are mainly based on increasing the sustainability in organizations. The impact of the three strategies on Woolworths is also considered to be quite high and has supported the position that is gained by the company in the retail market. The retail operations of Woolworths can be further improved by increasing the use of these sustainabilitybasedinitiativesbytheorganization.Therecommendationsaremainly provided based on the methods by which Woolworths can develop the sustainability levels.
3STRATEGIC MANAGEMENT OF WOOLWORTHS Section 4: Introduction Strategy implementation is considered to be a process that mainly puts different strategies and plans into action in order to attain the desired goals. Strategic plan is thereby a written document that provides the details of various processes and steps that are required in ordertoreachgoalsthatarealreadyplanned(Bonn,CroninJr&Cho,2016).The implementation of various strategies can also have an impact on the operations of the organizations and to ensure that the plans made by the firms are on track. Application of strategies are considered to be critical to the success that is gained by the company and proper achievement of the objectives and goals as well (Brunori et al., 2016). The report will be built on the study of a company that has implemented specific strategies in order to improve its processes in the industry. The firm that has been taken into considerationforstudyisWoolworths.Thesustainabilitybasedstrategiesthatare implemented by Woolworths in order to sustain its processes in the competitive retail industry will be discussed in the report in detail. Woolworths Supermarkets is a grocery or supermarket based chain or store that operates its stores in diverse parts of Australia. The firm was established in the year 1924 and it has gained 80% of the total shares in Australian market along with another major retail organization Coles. Woolworths specialises in the sales of groceries, DVDs, magazines, household products, baby and pet supplies and the stationery items as well. Currently Woolworths functions more than 1000 stores in Australia that consists of 976 supermarkets and 19 “Metro” convenience stores as well (Woolworthsgroup.com.au 2019). Section 5: Aim The aim of the report is to recognize the implications of the strategies that are implemented in Woolworths. The effects of the three different strategies on the methods by
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4STRATEGIC MANAGEMENT OF WOOLWORTHS which Woolworths can develop its position in the retail market will be discussed in the report. Section 6: Discussion ThemanagementofWoolworthsGroupbelievesthatincreasingthelevelsof sustainability can be considered as the only way forward for the organizations to maintain theiroperationsandlevelsofprofitabilityaswell.Theapproachtosustainabilityis considered to be an important aspect that is related to the improvement of relationship that is developed with the communities, teams and the customers (Woolworthsgroup.com.au 2019). Strategic influences that impact the operations of Woolworths, The external environment based factors of countries in which Woolworths operates are able to influence its operations and strategies that are developed as well. The three major factors that can have an impact on the operations and strategies of Woolworths are as follows, Gender equality has been an important aspect that is related to the barriers facedbyAustralianorganizations.Theaccessofopportunitiesthatare provided to women in the country are quite low. The issues that are faced by women in the country due to gender inequality have been considered by the Australiangovernmentandpolicieshavealsobeendeveloped (Humanrights.gov.au. 2019). The Australian women have however made major progress towards the parity with men due to support that is provided by the government of the country. Women are being provided with leadership roles within the organization and pathways have been developed for the women to follow as well (Simões & Sebastiani, 2017). Waste management has been implemented in Australia as a modern system after the second half of 19thcentury. The progresses that have been made by
5STRATEGIC MANAGEMENT OF WOOLWORTHS the technological changes are able to play a major role in formation of processes that can be used for waste management purposes. The waste management programs are regulated at the federal and the state level as well. Waste management has major impact on the demographic and geographical dynamicsofthecountry(Environment.gov.au.2019).Reformationis implemented in various organizations for the purpose of maintaining a circular economy. The factors have also been able to hamper development of the interstate and industry relations. The National Waste Policy is considered to be a national framework that is implemented for recovery of resources and wastes in Australia. Collaborations have also been developed by The National Waste Policy with different Australian organizations, individuals, communities in order to manage waste (Ottman, 2017). Customervaluecreationhasbecomehighlyimportantforthemodern organizations that operate in Australia. The organizations are able to maintain their competitive position in the market with support that is provided by the loyal customer base. The collaborations that are developed by organizations with the customers have an impact on services that are provided to them (Naidoo & Gasparatos, 2018). Customer services are considered to be the most significant part of the operations that are developed by the organizations. The companies aim at developing different place in the market with the support of unique services that can be provided to the customers (Laszlo & Cescau, 2017). Strategic implications of the factors or activities performed by Woolworths, The sustainability initiatives that have been applied by Woolworths are helpful in improvementofthecustomerbase,developingtheteams,formingthecommunities,
6STRATEGIC MANAGEMENT OF WOOLWORTHS developing the supply chain and providing benefits to the shareholders as well (Chkanikova &Lehner,2015).Thethreedifferentsustainablestrategicinitiativesimplementedby Woolworths are as follows, Promoting the gender equity –Gender equity has been provided with highest levels of importance in order to the equity of gender in different roles within the organization. Around 40% of the total number of executive positions in the organization are held by women employees. The gap between wages of male and female workers has been reduced in order to maintain a positive work environment in Woolworths. The equal numbers of positions that are provide to men and women in the firm are considered to be a significant aspect that is related to the appropriate operations of Woolworths (Doppelt, 2017). The organization has also formed an effective image in the retail market with the importance that is provided by the firm to male as well as the female employees. Gender equity and providing similar positions to the female employees is considered to be the most important part of the sustainability based initiatives that have been undertaken by the company (News.com.au 2019). Moving towards a circular economy –Woolworths has aimed at reduction of the levels of waste that are generated due to the operations and manufacturing process of the organization. The policy of zero waste generation is applied by the firm in order to develop sustainable operations. Sustainability will be supported in a huge manner by the proper reduction of wastes that can further lessen the impact of its production on the environment. The improvementof recyclabilityis also a significantpart of theprocessesthat are accomplished by Woolworths in order to proceed towards a circular economy (Frostenson & Prenkert, 2015). The contribution that is provided by Woolworths to the development of circular economy is a major part of the ways by which the organization can increase the sustainableactivities.TherecyclablematerialsarealsousedbyWoolworthsforthe
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7STRATEGIC MANAGEMENT OF WOOLWORTHS packaging based needs of the organization. Different products of the organization are packed with the help of proper usage of the recyclable materials. The use of recyclable methods has been able to play a key part in the formation of sustainable operating methods by Woolworths (Woolworthsgroup.com.au 2019). Creation of shared value with the customers -The value that is provided by Woolworths to the customers is considered to be a significant aspect that has an influence on the revenues and profitability levels as well. Woolworths has aimed at developing its operations in a collaborative manner with the customers. The customers are considered to be the central part of the products and services that are provided by Woolworths. the services of Woolworths are mainly based on the methods by which effective experiences can be offered to them in order to attract them towards the physical stores (Fuentes & Fredriksson, 2016). The service levels of the organization are able to play a key part in helping the company to grow a loyal consumer base in the industry. Woolworths has always provided encouragement to the customers in order to consume the products in a healthy manner and to improve sustainability levels in the industry as well. The relationships that have been formed by Woolworths with the customers is considered to be an important factor that has an impact on the organization as well. The competitive position that is gained by the organization in retail industry is supported in a huge manner by the customer centric operations of Woolworths (Moreechampion.com.au. 2019). Strategic course of action that is implemented by Woolworths, The strategic objectives that have been set by Woolworths in order to uphold the place in retail industry are as follows, Improvement of the revenues and profitability of Woolworths in the highly competitive retail market.
8STRATEGIC MANAGEMENT OF WOOLWORTHS Developing the levels of sustainability in the operations of Woolworths for maintaining the operations and functions for a long time. Development of successful relationships with the customers in order to hold the competitive advantage of Woolworths in retail market in contrast to its major competitor Coles. The improvement of services that are provided by Woolworths in order to create a differentiation in the retail market (Tang, Lai & Cheng, 2016). Strategic goals developed by Woolworths, The improvement of customer satisfaction levels of Woolworths is a major strategic goal that can be developed by Woolworths. The development of proper training programs in the organization can also supportthesustainabilitystrategiesbasedonrecyclabilitythatare implemented by Woolworths. The formation of internal communication systems within Woolworths will be able to help the firm in order to develop collaboration between the male and female employees (Welford, 2016). Section 7: Conclusion The report can be settled by asserting that Woolworths has implemented the three major sustainability strategies with the aim of maintaining its position and place in the retail industry of Australia. The importance that is provided by Woolworths to the customers and sustainableactivitiesareabletoplayakeypartinimprovementofrevenues.The development of a positive work environment is supported by the same positions that are offered by Woolworths to both the male and female employees as well. The levels of
9STRATEGIC MANAGEMENT OF WOOLWORTHS importance that are provided to the employees have a major impact on the organizational operations. Section 8: Recommendations The key recommendations that are provided to Woolworths in order to develop the future operations are as follows, The growth of various teams of employees in order to implement the training programs to enhance the levels of diversity. The male and female employees willbeprovidedwithmajorpositionsintheteamsforsupportingthe sustainability initiatives. ThecustomersatisfactioncanbeincreasedbyWoolworthswiththe improvement that is made in the stores of the organization. The services offered in stores can be improved by gaining their feedback and using them in the organizational processes. The usage of recyclable materials for packaging activities of Woolworths with the development of various systems in order to upsurge the number of products that are packed with the help of these materials.
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10STRATEGIC MANAGEMENT OF WOOLWORTHS Section 9: References Abc.net.au. (2019). Woolworths busted over 'environmental' toilet paper. Retrieved 21 August2019,fromhttps://www.abc.net.au/news/2007-08-23/woolworths-busted- over-environmental-toilet-paper/648704 Bonn, M. A., Cronin Jr, J. J., & Cho, M. (2016). Do environmental sustainable practices of organic wine suppliers affect consumers’ behavioral intentions? The moderating role of trust.Cornell Hospitality Quarterly,57(1), 21-37. Brunori, G., Galli, F., Barjolle, D., Van Broekhuizen, R., Colombo, L., Giampietro, M., ... & De Roest, K. (2016). Are local food chains more sustainable than global food chains? Considerations for assessment.Sustainability,8(5), 449. Chkanikova, O., & Lehner, M. (2015). Private eco-brands and green market development: towards new forms of sustainability governance in the food retailing.Journal of Cleaner Production,107, 74-84. Doppelt, B. (2017).Leading change toward sustainability: A change-management guide for business, government and civil society. Routledge. Environment.gov.au. (2019). Department of the Environment and Energy. Retrieved 25 August2019,fromhttp://www.environment.gov.au/protection/waste-resource- recovery/national-waste-policy Frostenson, M., & Prenkert, F. (2015). Sustainable supply chain management when focal firms are complex: a network perspective.Journal of Cleaner Production,107, 85-94.
11STRATEGIC MANAGEMENT OF WOOLWORTHS Fuentes, C., & Fredriksson, C. (2016). Sustainability service in-store: Service work and the promotion of sustainable consumption.International Journal of Retail & Distribution Management,44(5), 492-507. Humanrights.gov.au. (2019). Face the facts: Gender Equality 2018 | Australian Human Rights Commission. Retrieved 25 August 2019, from https://www.humanrights.gov.au/our- work/education/face-facts-gender-equality-2018 Laszlo, C., & Cescau, P. (2017).Sustainable value: How the world's leading companies are doing well by doing good. Routledge. Moreechampion.com.au. (2019). Moree Woolies goes green with installation of 357 solar panels.Retrieved21August2019,from https://www.moreechampion.com.au/story/6097323/moree-woolies-goes-green-with- installation-of-357-solar-panels/ Naidoo, M., & Gasparatos, A. (2018). Corporate Environmental Sustainability in the retail sector:Drivers,strategiesandperformancemeasurement.Journalofcleaner production. News.com.au (2019).‘We never did it as a profit driver’. [online] NewsComAu. Available at:https://www.news.com.au/finance/business/retail/ditch-problematic-singleuse- items-but-dont-demonise-plastic-sustainability-experts-say/news -story/caf10228bf275e334a545221742062cb [Accessed 21 Aug. 2019]. Ottman, J. (2017).The new rules of green marketing: Strategies, tools, and inspiration for sustainable branding. Routledge.
12STRATEGIC MANAGEMENT OF WOOLWORTHS Simões, C., & Sebastiani, R. (2017). The nature of the relationship between corporate identity andcorporatesustainability:Evidencefromtheretailindustry.BusinessEthics Quarterly,27(3), 423-453. Tang, A. K., Lai, K. H., & Cheng, T. C. E. (2016). A multi-research-method approach to studying environmental sustainability in retail operations.International Journal of Production Economics,171, 394-404. Welford,R.(2016).Corporateenvironmentalmanagement3:Towardssustainable development. Routledge. Woolworthsgroup.com.au(2019).[online]Woolworthsgroup.com.au.Availableat: https://www.woolworthsgroup.com.au/icms_docs/195398_2018-sustainability- report.pdf [Accessed 21 Aug. 2019].
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