Business Environment: Micro Factors and Challenges Faced by Woolworths Holdings Limited

This report discusses the micro factors that affect the business operations of Woolworths Holdings Limited, a leading retail organization in Australia. It also highlights the challenges present in the micro environment and provides solutions to overcome these risks and challenges.

The Business
Environment

EXECUTIVE SUMMARY
Business environment is a sum of all events, conditions and influences that affect and
surround in a business. The changes in external environment might affect the business activities
and decision’s quality of organisation as well as their competitors. The micro environment
factors include public relations, competitors, shareholders, market intermediaries and many
more. There are various challenges exist in the micro environment.

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Identify and analyze the micro environment factors...................................................................4
Challenges present in the micro environment.............................................................................5
Solutions to overcome risks or challenges...................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
Books and journals:.....................................................................................................................7

INTRODUCTION
The term business environment indicates the external factors, forces or institutions that
cannot be controlled by the business and affect the business operations of any organisation.
These include competitors, government, customers, suppliers, political, technological, social,
legal and many more (Cascio, 2021). These factors have direct or indirect influences on the
business operations. The assessment is preparing on Woolworths Holdings Limited which is the
leading retail organisation in Australia. The company founded by Max Sonnenberg in 1931. It
has an international presence in South Africa, New Zealand and Australia. It includes three main
operating divisions Woolworths South Africa, Country Road Map and David Jones. WHL
acquired David Jones in 2014. There are 40 and more David Jones Stores throughout New
Zealand and Australia providing clients the best brands across beauty, fashion and home.
MAIN BODY
Identify and analyze the micro environment factors.
Micro environment factors have direct influence on the company and affects their business
operations. It is a collection of factors that can influence the business performance and are close
to the organisation. These factors include suppliers, company, competitors, marketing
intermediaries, customers and general public. In the article “Woolworths to trial staff body
cameras after in-store assaults doubled in 2020”, it has been studied that the company is
influenced by external forces which says that they are not ready to accept assault in their stores
as this can damage their position in the market. They took this concern very seriously and
identify measures that will save their works from any harm (Chowdhury, Audretsch and Belitski,
2019). They found a way that their staff members that are checkout workers and shelf stackers
will carry body cameras in order to reduce the rates of abuse and assaults (Woolworths to trial
staff body cameras after in-store assaults doubled, 2020). The following are the micro
environment factors that can influence the business activities:
 The company: In an organisation, there are various departments such as finance, top
management, human resource, operation, research and development and many more
which needs to be taken into consideration by the marketing management for producing
the plans for marketing. Marketing managers work closely with them in order to make

strategies and plans so that effective decision making can be done. In WHL’s context,
they are required to be wise to spend their time on monitoring the R&D team so that their
results can be successful.
 Competitors: Competitors refers to the rivals who compete in the same market and with
resources. It is important for the organisation to deliver extreme customer value and
satisfy them. In context of WHL, they are required to simply attend strategic benefits
against their competitors by building strong position in the market with their services and
products (Giragosian, 2021).
 Public: The term public can be referred to public which has potential or actual interest or
that can impact the ability of an organisation to accomplish their goals. This includes
consumer protection groups, environmentalists, media person and many more. In WHL’s
context, they are required to understand the customer needs and opinions. Also, they are
required to create a position among public which helps to develop favorable response for
the distance.
Challenges present in the micro environment.
 Availability of investors: Investors or shareholders plays a very important role as they
help to funding the business. Without funds a business cannot be developed or expand. In
context of WHL, by taking investments operating risk can be shared and often achieve
expertise and support.
 Level of competition: It also affects the economic livelihood. In an industry, a large
amount of competitors denotes lots of demand for the goods and services offered. In
WHL’s context, if it does not have any competition then it might not find any opportunity
to succeed in the long run.
 Media and General Public: Media or local community will also impact the ongoing
business reputation. Society often support organizations that offers job opportunities,
operate with social and environmental responsibility and pay taxes on time. If it is not
happened, then a negative public backlash can be held (Oubrich and Et.al., 2018). As the
respective company claimed that they find necessary measures to overcome the negative
comments from public and protect their works from abuse and assaults as well, if they
would not do so then it will impact in negative way.

 Distribution channels and suppliers: The supplies are the very essential part of overall
customer value delivery network of any organisation. They are challenging ones who
delivers materials to business such as cutting tools, materials, equipment and many more.
It is very important for the business to assure the reliability and quality of vendors for
smooth business functioning.
Solutions to overcome risks or challenges.
 It is very important to educate the customers by telling them about the benefits of using
the brand products and services.
 In context of WHL, as they are working for the employee’s safety, and protect them from
abuse and assault (Yan, 2018). They should also take initiative to motivate them and
provide expertise knowledge so that they can handle the things and understand the
concerns of wearing body camera.
CONCLUSION
From the above discussion, it has been concluded that the business environment covers
micro and macro environmental factors which influences the business functions and activities.
The report is discussed with the article of an Australian company named Woolworths Holdings
Limited which is concerned about their workers and wants to protect them from assault and
abuse. The report contains with micro environmental factors such as company, shareholders,
competitors and many more which affect the business directly or indirectly. It is also mentioned
with challenges and solutions present in the micro environment.

REFERENCES
Books and journals:
Cascio, W., 2021. Managing human resources. McGraw-Hill US Higher Ed USE.
Chowdhury, F., Audretsch, D.B. and Belitski, M., 2019. Institutions and entrepreneurship
quality. Entrepreneurship Theory and Practice, 43(1), pp.51-81.
Giragosian, N., 2021. Successful product and business development. CRC Press.
Oubrich, M. and Et.al., 2018. Development of a competitive intelligence maturity model:
Insights from Moroccan companies. Journal of Intelligence Studies in Business, 8(1).
Yan, M. R., 2018. Improving entrepreneurial knowledge and business innovations by simulation-
based strategic decision support system. Knowledge Management Research &
Practice, 16(2), pp.173-182.
Online;
Woolworths to trial staff body cameras after in-store assaults doubled, 2020. [Online] Available
Through: < https://www.theguardian.com/business/2021/apr/17/woolworths-to-trial-
staff-body-cameras-after-in-store-assaults-doubled-in-2020>