Strategic Management : Organic Food in Woolworths

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student:
Name of the University:
Author’s Note:

1STRATEGIC MANAGEMENT
EXECUTIVE SUMMARY
The purpose of this report is to identify the strategic course of action that Woolworths need to
follow in the face of the increasing demand for organic food in the nation of Australia. The
report begins by highlighting the three important strategic influences apparent within the
Australian retail sector, that is, the increasing tendency of the customers to consume organic food
products, the focus of the customers on the food products which do not use any form of
chemicals and also the focus of the customers on the products which are cost effective. Thus, in
order to integrate these strategic influences Woolworths needs to undertake product
diversification so as to incorporate organic food products within its product portfolio, use cost
leadership strategy and use multiple suppliers so as to procure organic food products which are
completely natural. Lastly, the report concludes by recommending the usage of the product
diversification strategy and the establishment of direct relation with the farmers of Australia so
as to procure fresh organic vegetables and crops directly from them.

2STRATEGIC MANAGEMENT
Table of Contents
1.0 Introduction................................................................................................................................3
2.0 Aim............................................................................................................................................3
3.0 Discussion..................................................................................................................................4
4.0 Conclusion.................................................................................................................................8
5.0 Recommendations......................................................................................................................8
References......................................................................................................................................10

3STRATEGIC MANAGEMENT
1.0 Introduction
As stated by Hill (2017) strategic management is a very complex process and the
corporations are required to take into consideration various factors for the formulation of the
strategies that they would follow or for devising the strategic direction of their corporation.
David and David (2016) are of the viewpoint that the corporations while keeping into perspective
their own organizational goals or objectives also need to collect the required data which in turn
would highlight the needs, demands or for that matter the requirements of the target market they
focus on. This is important since research research works have shown that the corporations
which formulate their strategies taking into consideration the needs of the target market or the
market influences and also their own goals or objectives have a higher chance of gaining success
in comparison to the corporations which do not take into account this particular measure (Ethiraj
t al., 2018). For instance, within the nation of Australia it is seen that the demand for organic
food had increased in an exponential manner and the customers are increasingly resorting to the
purchase of the same which in turn had made it important for the different departmental stores as
well as the supermarkets of the concerned nation to offer them (Golijan & Popović, 2016). This
in turn had necessitated a change in the product related strategies which are being followed by
the corporations related to the retail sector of Australia. It is in the backdrop of these aspects that
the report tries to analyze the strategic course of action that Woolworths need to follow in the
face of the increasing demand for organic food in the nation of Australia.
2.0 Aim
The aim of this report is to identify the strategic course of action that Woolworths need to
follow in the face of the increasing demand for organic food in the nation of Australia.