Woolworths Strategic Management Analysis

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

1STRATEGIC MANAGEMENT
Table of contents
Introduction......................................................................................................................................3
Strategic management practices in Woolworth...............................................................................3
Strategic management to attain competitive advantage...................................................................7
Recommendations for enhancing strategic management practices in Woolworth..........................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

2STRATEGIC MANAGEMENT
Introduction
The aim of this study is to analyze on the strategic management practices of Woolworths
limited. Woolworths limited is one of the major Australian retail organizations and is ranked
second largest in the globe in terms of revenue. The main operations of this company involve
liquor retailing, hospitality, restaurants, pubs, and departmental stores. This company came into
news for the past two years due to its low financial performance. Woolworths attained a revenue
of 60,868 and 58,276 dollar in 2015 and 2016 respectively, which is quite less as compared to
the past ten years. However, the profit of this organization also declined in 2015 and 2016 in
comparison with previous years. This highlights that thus entity’s strategic management practices
was not successfully implemented in the last two years. This study also highlights on how the
implementation of strategic management gain competitive advantage. Further, recommendation
for stimulating management practices is also analyzed in this study.
Strategic management practices in Woolworth
The vision of Woolworths is to deliver the customers proper experience of shopping every
time. The company’s goal is to understand their customers through business excellence and by
providing proper knowledge about their products (Wheelen,and Hunger, 2017) The main
strategic concern for this entity is to grow up multi-types of retailing that includes low product
price, high quality goods and services in order to meet the requirement of customers. In addition,
expanding its leadership role in each segments of the market, utilization of portfolio and
maintaining proper financial track record are some other strategic management that they
implements for expanding their business growth and attaining highest rank in the competitive
marketplace.

3STRATEGIC MANAGEMENT
This organization strategies to innovate the product according to the customers tastes and
preferences for satisfying them to the maximum extent. The company’s strategy towards their
workers aims to provide good business environment and proper pay for their work. The
corporate strategic priorities that the entity follows includes-
 Extending leadership in liquor- Woolworths sets up marketing campaign of enhancing
growth of the business and provide value for the stakeholders for expanding their market
share in Australia (Hitt et al., 2012). For the past two years, the company did not
concentrate on the promotional activities including advertisement and hence this reduced
their overall sales.
 Developing their portfolio for maximizing shareholder value-The company develops a
strong portfolio in order to attract more customers from the market.
 Placing the enablers in new growth area- Woolworths implements new policies in order
to perk up relationship with their shareholders in the long term and tries to provide value
for these shareholders by investing in business. They also try to change staffing policy for
gaining benefit of using best international talent. The entity’s supply chain facilitates
them to attain higher profitability in the business.
The external environment also influences their profitability and strategies in business. The
external environment is mainly divided into two parts that includes- macro-environment and
industry environment. The macro-environment refers to the general influence variable while
industry environment relates to the factors that influences outside the boundaries of the
organization.