Strategic Planning and Management for Woolworths

Running Head: WOOLWORTHS 0
STRATEGIC PLANNING
AND MANAGEMENT

WOOLSWORTHS 1
Table of Contents
Introduction................................................................................................................................2
Drivers and Factors in Macro Environment...............................................................................2
PEST Analysis.......................................................................................................................2
SWOT Analysis.....................................................................................................................4
Drivers and Factors in Industry Environment............................................................................5
The Industry Five Force of Woolworths................................................................................5
Recommendations......................................................................................................................7
References..................................................................................................................................9

WOOLSWORTHS 2
Introduction
Businesses in this retail industry comprise of varieties of selections such as dairy
foods, groceries, canned goods, toiletries, fruits and vegetables and cleaning merchandise. In
most of the countries, the retail industry is highly mature and competitive. In this industry,
Woolworths is one of the leading supermarket retail chain incorporated in 1924 when the first
store of the company was opened. With continuous innovation and development, Woolworths
is now operating with 900 plus relying on 115,000 team members in the stores. In 2017,
Woolworths earned net revenue of 5,566.9 crores AUD (wsj.com, 2019). The company
business is built on integrity.
This report outlines Woolworth’s macro and industry environment factors having
significant influence over the strategic direction of the firm as well as decision making. In
last, necessary recommendations were also suggested relating to the strategic options to the
firm leading Woolworths to achieve its objectives and mission.
Drivers and Factors in Macro Environment
The macro environment of Woolworths analysed with the help of PEST and SWOT
tools –
PEST Analysis
PEST stands for Political, Economic, Social, Technological factors. PEST analysis
defines a context of macro-environmental factors used as a constituent of strategic
management. It benefits the management in identifying company strategic position, rate of
market growth and significant directions for the operations (Gupta, 2013). The PEST
exploration of Woolworths is stated below -
 Political factors
Government regulations against duopolistic nature of market – Woolworth and Coles
controls a greater market share in Australia and thus creating duopolistic market in nature.