Business Plan Analysis and Formulation for Woolworths Group

This report evaluates the business plans, strengths, weaknesses and performance analysis of five organizations. Also, the business plan of Woolworths Group will be formulated and implemented in detail. Suggestions in the form of a report to improve the implementation of the plan will also be discussed.

Running head: Leadership management
Leadership management

Leadership management 1
Executive Summary
Developing and implementing a business plan are crucial strategies for the organization’s success. A
business plan is a description of the future of the business. It directs the business about what to do and
how to do. It assists the business in meeting its goals and objectives by utilizing the currently available
resources and skills. It helps the business in enhancing its profitability and assets.
The business plan can help the business in many ways. It strategizes the actions of the business. Each
attempt involves specific responsibilities which are allocated to specific personnel. It also assigns the
duration for completing the task. The start and end dates with the respective budgets are assigned to them.
Thus the business plan also helps the company in time and cost management. An ideal business plan
defines the clear objectives to be achieved in the organization, plans greater details to implement them,
allocates time for their accomplishment and monitors their performance to achieve the goals of the
organization.
So, in this report, the business plans, strengths, weaknesses and performance analysis of five
organizations would be evaluated .Also, the business plan of Woolworths Group will be formulated. A
report will also be created regarding the implementation and suggestions to improve the said plan.

Leadership management 2
Contents
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................4
Business Plan Analysis................................................................................................................................4
Analysis of the Business Plan.................................................................................................................11
Business Plan for Operations Department.................................................................................................12
Background of the business.......................................................................................................................12
Description of the business and its products and services......................................................................12
Marketing Activities and Strategies.......................................................................................................13
Key financial indicators of Woolworths Group......................................................................................13
Productivity / Performance Targets for community awareness or branding..........................................13
Environmental Impact...........................................................................................................................13
Governance and Management...............................................................................................................14
Quality...................................................................................................................................................14
Sales......................................................................................................................................................14
Triple Bottom Line................................................................................................................................14
Workforce..............................................................................................................................................14
Business Plan of Woolworths Group.........................................................................................................14
Goals, Objectives and Mission of the Plan............................................................................................15
Resource Management..........................................................................................................................15
Budget or Cost Benefit Analysis.............................................................................................................15
Stakeholder identification and evidence of feedback and consultation..................................................16
Implementation Plan..............................................................................................................................16
Projected Profit and Loss statement......................................................................................................16
Performance Indicators..........................................................................................................................16
Performance review structure /plan.......................................................................................................16
Contingency and mitigation strategies...................................................................................................17
Report regarding the Implementation of the plan......................................................................................17
Evidence of approval to implement the plan..........................................................................................17
Performance review evidences.............................................................................................................17

Leadership management 3
Responses regarding the implementation of the plan.............................................................................18
Final Observations regarding the outcome and implementation of the business plan.........................18
Personnel Appraisal of the strengths and weakness of the development and implementation plan....18
Evidence of the Workplace........................................................................................................................19
Conclusion.................................................................................................................................................20
References.................................................................................................................................................21

Leadership management 4
Introduction
A well thought business plan is just a stack of paper if it is not accompanied by clear procedures to
implement the strategies suggested in the business plan. Also, the analysis of its formulation and
implementation is necessary to judge whether the plan is executed in the right manner. Business plan
analysis is conducted with the intention to provide the solutions regarding the problems faced by the
business in working under real world conditions (Otoo et al.,2016).
So, in the following report, the business plan analysis of five companies will be conducted to assess their
strategies. Further, the business plan of Woolworths Group will be formulated and implemented in detail.
Suggestions in the form of a report to improve the implementation of the plan will also be discussed.
Business Plan Analysis
N
a
m
e
o
f
t
h
e
C
o
m
p
Summary Strength
s
Weakness Performanc
e KPI
Monitoring
the
processes
Recommen
dations to
improve
the plan

Leadership management 5
a
n
y
B
H
P
Billiton
Limited is a
public listed
company
which deals in
mining,
metals and
petrol. Its
headquarters
are in
Melbourne. Its
mission is to
own and
conduct its
business
through large
and long life
and
economically
reasonable
assets which
are diversified
by commodity,
Its
strengths
are its
focused
employe
es and its
assets
portfolio
of the
company
which is
world
class and
sustainab
ly
develope
d.
The
stakehold
ers
receive
One of the major
weaknesses of the
organization is its
ineffectiveness in
handling the mining
and processing
operations relating to
the Samarco Dam
Failure and its inability
to manage the
fluctuating commodity
prices and the effect of
the global economic
volatility which may
affect the operations of
the business (BHP
Billiton,2016).
Its key
performance
indicators
are low total
recordable
injury
frequency
(TRIF),
monitoring
of the
greenhouse
gas
emissions,
and
contribution
to the charity
and high
profits
available for
the
stakeholders.
Adequate
procedures
for
sufficient
and low cost
funding to
safeguard
the
operations
rising from
volatility.
Proper
procedures
should be
adopted to
minimize
occurrence
of the
incidences
such as
Samarco
Dam
Failure.
Implementa
tion of the
vigilance
programs to
supervise
the mining
operations.

Leadership management 6
geography and
market. Its
objective to
create a long -
term
shareholder
value through
the discovery
and
procurement
and marketing
of the natural
resource (BHP,
2018).
adequate
returns
on their
investme
nts (BHP
Billiton,
2016).
C
o
c
a
C
o
l
a
A
m
a
ti
Coca –Cola
Amatil is
amongst the
biggest bottlers
of non-
alcoholic
beverages in
the Asia
pacific region.
Its
headquarters
are in Sydney
It
captures
growth
and long
term
value for
the
stakehold
ers. Its
strategy
is to
lead,
Its weakness is the
inability to cope up
with the macro
economic factors
affecting competition
and demand. The other
weaknesses are its
inability to manage the
Occupational health
and safety risks
affecting the human
resources of the
Its KPIs are
accountabilit
y for
creating
sound
environment
al practices
and efficient
water usage
ratios,
energy usage
ratios, total
The Audit
and Risk
committee,
Related
party
committee
and
Sustainabilit
y
Committee
ensures that
the risk
Continuous
vigilance
systems on
monthly
basis should
be adopted
to review
and suggest
the
measures to
minimize
the risk

Leadership management 7
l (Coca- Cola
Amatil, 2016).
Its mission is
to keep the
customers
refreshed and
to deliver
sustainable
returns to the
stakeholders.
Its objective is
to create the
workforce
which is
aligned with
the values of
the
organization.
execute
and
partner.
organization and the
Geo-political risks
having an impact on
the performance of the
company (Coca- Cola
Amatil, 2016).
solid waste
recycled and
produced.
management
system and
internal
controls are
working
well in place
in the
organization
.
confronted
by the
company.
C
o
m
m
o
n
W
e
a
lt
h
B
a
n
The Common
Wealth Bank
of Australia is
a multinational
bank
delivering
financial
services such
It is the
largest
Australia
n retail
bank and
strongest
in terms
of key
Its weaknesses amount
to dependency on the
offshore borrowings. It
is also affected by the
rapid growth in
property prices and
private sector debt
The KPI of
the Bank are
the anti-
bribery and
corruption
policy, Anti-
money
laundering/c
The
processes
such as
making
transparent
and
balanced
decisions, a
Continuous
vigilance
should be
implemente
d regarding
the material
risks having
an impact

Leadership management 8
k as retail,
business and
institutional
banking etc.
The mission of
the bank is to
protect and
upgrade the
financial
wellbeing of
people.
The objectives
are to maintain
the lowest cost
structure and to
expand the
consumers
through online
and direct
means
(Commonweal
th Bank, 2016).
earnings
and asset
quality
metrics.
(S & P Global Ratings,
2017).
ounter
terrorism
financial
programs
and Fraud
policies.
new wealth
management
responsible
investing
framework
to manage
the system
of the bank.
on the
compliance
issues of the
organizatio
n.
N
a
ti
o
n
a
The National
Australia Bank
is amongst the
It has a
strong
brand
It has no global
identification and the
decreasing revenue is
The key
performance
indicators
The strategy
of the bank
is
The bank
must focus
on its key

Leadership management 9
l
B
a
n
k
A
u
s
t
r
a
li
a
fourth largest
financial
institutions in
Australia in
terms of
market
capitalization,
earnings and
customers.
The mission is
to be
Australia’s and
New Zealand’s
most respected
bank (National
Australia Bank
Limited,
2016).
Its objectives
are to deliver
the services for
customer
satisfaction
and develop
relationships in
its priority
name,
good
financial
position
and it is
a leading
financial
player
with
diverse
products
and
services.
affecting its growth
and development (Kim
& Mauborgne, 2015).
are Total
shareholder
return and
the Return
on Equity
Growth of
the
organization.
supported
by
strengthenin
g the
elements of
the balance
sheet and
the risk
management
capability
and
technology
platforms.
performanc
e indicators
in order to
survive in
the market.

Leadership management 10
segments.
W
e
s
f
a
r
m
e
r
s
Wesfarmers is
one of
Australia’s
largest
companies ,
dealing in
various
business
operations
such as
supermarkets,
liquor, hotels
etc. Its
headquarters
are in West
Australia. Its
objective is to
provide
satisfactory
return to the
shareholders.
The mission
statement
consists of core
values and
It is the
biggest
player in
the retail
sector in
Australia
and New
Zealand.
Also it is
a
sustainab
le
business
which
stresses
upon
communi
ty
building.
All the areas of
operation are not
equally profitable and
it is dependent upon
local suppliers of
power.
The
company has
been
committed to
create value
for the
stakeholders
including
employees
and
communities
.
The
company
acquires or
diverts its
segments in
order to
increase the
long term
shareholder
wealth and
manages to
achieve
adequate
risk profile
(Wesfarmers
, 2016).
The
company
should
adopt
strategies
for
customer
retention
and risk
managemen
t plans to
minimize
the risk.

Leadership management 11
strategies
aimed to focus
on achieving
the objectives
(Wesfarmers,
2016).
Analysis of the Business Plan
BHP Coca Cola Amatil Common Wealth
Bank
National Australia
Bank
Wesfarmers
The strategy of the
business plan of the
company is to
operate and own an
everlasting group
of assets which are
diversified by
commodity,
geography and
markets (BHP,
2018).
The objectives of
Coca Cola Amatil
are to deliver
quality products to
its customers. Also,
it aims at creating a
motivating
environment at the
work place (Taiwo,
Lawal & Agwu,
2016).
The bank wants to
create shareholders
value which
reflects trust,
truthfulness,
honesty and
integrity (World
Economic Forum,
2017).
It is the only
Australian bank
adopting the global
integrated reporting
business
framework which
is focused on make
corporate reporting
more meaningful
for the stakeholders
(National Australia
Bank Limited ,
n.d.).
The goal of the
company is to bring
sustainable benefits
for its stakeholders.
Due to its strong
strategically
framework, it
manages to
increase its profits
and expand its
business
(Wesfarmers,
2016).

Leadership management 12
Business Plan for Operations Department
Woolworths Limited is the Australian company dealing in consumer retail. It is the largest takeaway
liquor retailer and hotel and gaming poker machine operator in Australia (Woolworths Group,
2016).Around 205000 employees are employed in the business who serve 29 million customers every
week (Woolworths Group,2018). Following are the details of the development and implementation of the
business plan regarding the Operations Process of Woolworths Limited.
Operation Processes convert the inputs into outputs. The inputs consist of raw material, labor, equipment,
data and finance. The output consists of delivery of goods or services and the ease of purchasing goods or
delivery of services from the company’s stores (Onwutalobi,2016).
So, a business plan has been developed and implemented regarding the installation of the automated
invoicing machine at the stores of the company to enhance the experience of the customers and to save
time and other resources of the staff. It will help them to divert their attention from billing to assisting the
customers in a better way.
Background of the business
Description of the business and its products and services
Woolworths Group is the Australian consumer retail company with its headquarters at Bella Vista, New
South Wales. It is the second largest Australian company by revenue with AS$ 59 Billion in 2016
(Woolworths Group,2016). It deals in retail segments such as liquor, hotel, poker machine, food and
petrol.
The segments under Woolworths Group are Woolworths Food Group, Endeavour Drinks and Portfolio
Business. Under the Woolworths Food Group, the brands are Woolworths rewards which is the
supermarket loyalty program, Woolworths Supermarkets and Countdown which is the chain of
supermarkets. Apart from that it also operates in petrol and financial services.

Leadership management 13
Under the endeavor drinks it has brands such as Dan Murphy, BWS etc. and in the portfolio business it
has Big W group and ALH group which operate in the hospitality sector.
Marketing Activities and Strategies
The marketing strategies and activities of the company are to prioritize its customers across all the brands.
It aims at building a customer centric approach and generating sustainable sales momentum in its eatable
related segment (Honig & Samuelsson,2013).
Also, it aims at upgrading its portfolio business by developing strategies which focus on shareholder’s
value. Through its voice and customer program, the store and the support office team gets the customer
feedback on daily basis. Its tag line’ We bring a little good to everyone every day ‘ is supported by its
initiatives.
Key financial indicators of Woolworths Group
PROFIT AND LOSS PROJECTION
Particulars 2017( $M) 2016($M)
Total operating revenue 55668.6 53663.7
Cost of Sales (39739.7) (38538.6)
Gross profit 15928.9 15125.1
Expenses (13847.1) (13905.7)
EBIT 2081.8 1219.4
Income tax expenses (700.00) (300.00)
Profit /Loss for the period 1381.8 919.4
Thus, from the table it is clear that the profit will increase from $919.4 Million to $ 1381.8 Million
thereby increasing by 50%.
Productivity / Performance Targets for community awareness or branding
According to Marketing (2015) Woolworths deliver better performance against profitability, consumer
engagement and brand awareness. The company has played a crucial role in improving the
quality of life and wellbeing.
Environmental Impact
The company manufactures and transports products which support its ‘clean green ‘campaign. It also
disposes its waste carefully and in an ecofriendly manner.

Leadership management 14
Governance and Management
The Board of Directors of Woolworths Group is responsible for directing the company for meeting its
objectives. It is accountable to its stakeholders for the performance of the company.
Quality
Quality assurance is a procedure adopted by Woolworths to ensure that the set standards regarding food
production is met. In January 2012, Woolworths was the first national supermarket to offer certified beef
to its consumers.
Sales
The strategy for sales adopted by Woolworths is Good Prices, Right Range and Great Services. The
company continuously innovates to provide best value and convenience to customers, in-store and online.
Triple Bottom Line
Woolworths adopts the Corporate Social Responsibility approach comprehending the current socio-
cultural and economic climate of the industry. The CSR strategy adopted by the company has helped it to
design the way the consumers and the stakeholders feel about the brand and their reaction to it.
Workforce
The company has implemented the Workforce Optimization Solution which provides the right tools to
maximize the workforce performance and enhance the effectiveness of customer service operations.
Social Media Presence
The company is investing its profits in digital media. It has launched a new online store with big photo
buttons designed for mobiles. As a result it has earned more than AUS$ 1.2 Billion online sales in June,
2015 a 50% rise from the previous year.
Business Plan of Woolworths Group
Woolworths Group is an Australian consumer retail company headquartered in Bella Vista, New South
Wales, Australia. It operates in various segments such as Supermarkets, hospitality sector, fuel and
loyalty programs. The business plan of the company consists of introducing the automated invoicing
system in the process for enhancing the speed and efficiency of the billing process so to minimize the
wastage of time of the human resources.

Leadership management 15
Goals, Objectives and Mission of the Plan
The goal and objective of the plan is to deliver the best product to the customers as per their required
convenience, value and quality. The mission statement of the plan is to be the priority for consumers who
care about value, innovation and sustainability (Pisano,2015).So, the plan is to introduce an automated
invoicing system for increasing the speed and efficiency of the billing process (Necke,2015).
Resource Management
The resources required for the automated billing process are computer hardware, software and personnel
to supervise the mechanism.
Budget or Cost Benefit Analysis
Cost Benefit Analysis of Woolworths -Automated Customer Invoicing System
Costs Year
0 1 2 3 4 5 6
Developmental costs($M)
-
50000
Operating costs -75000 -82500 -90750 -99825
-
109808
Total Costs
-
50000 -75000 -82500 -90750 -99825
-
109808
Discount factor @ 15 % 1 0.87 0.76 0.66 0.57 0.5
Present value of costs
-
50000 -65217 -62382 -59670 -57075 -57594
Cumulative PV costs
-
50000
-
115217
-
177599
-
237269
-
294344
-
348938
Benefits ($M)
tangible benefits 110000 121000 133100 146410 161051
intangibe benefits 10000 11000 12100 13310 14641 10000
Total benefits 120000 132000 145200 159720 175692 10000
Discount factor@ 15 % 1 0.87 0.76 0.66 0.57 0.5 0.43
Present value of benefits 104348 99811 95471 91320 87350 4323
Cumulative PV benefits 104348 204159 299630 390951 478301
48262
4
Cumulative PV benefits -
costs
-
50000 -10870 26560 62361 96606 129363
13368
6
Thus, from the above table, it is clear that the billing process will be profitable in the year 6.

Leadership management 16
Stakeholder identification and evidence of feedback and consultation
The stakeholders would be customers, staff of the stores and the middle management. They would be
invited for feedback on the newly introduced automated billing machine. They would be asked to fill the
Questionnaires regarding the relevant topic.
Implementation Plan
The plan would be implemented in 2 months. The various departments such as IT, HR and accounts
department would be invited to participate in its implementation. They would be given various
responsibilities such as IT department would take care of the installation and working of computers and
the automated machine. The HR department would take care of the human resource employed to
supervise its working etc. The accounts department would take care of the amount of invoices generated
in a day.
Projected Profit and Loss statement
PROFIT AND LOSS PROJECTION
Particulars Year
0($M)
Year
1($M)
Year
2($M)
Year
3($M)
Year
4($M)
Year
5($M)
Year
6($M)
Total operating revenue -50000 40000 30000 50000 40000 60000 70000
Cost 25000 20000 15000 25000 20000 30000 35000
Gross profit -25000 20000 15000 25000 20000 30000 35000
Expenses -10000 -5000 -5000 -4000 -3000 -5000 -4000
EBIT -35000 15000 10000 21000 17000 25000 31000
Profit /Loss for the period -35000 15000 10000 21000 17000 25000 31000
Thus, it is clear from the table that the profit in the sixth year amounts to $31000 Million from the use of
Automated Invoicing machine.
Performance Indicators
The performance indicators are the total number of invoices generated per million of revenue, the number
of invoices not processed or transferred to an accounting system, the time consumption to approve the
invoice and the number of invoices which are waiting for approval (Babafemi,2015).
Performance review structure /plan
The performance of the automated invoicing machine would be reviewed with the help of feedbacks from
the customers and the staffs with the help of questionnaires. The machine would be reviewed
continuously regarding the rectification of the errors in its working if any.

Leadership management 17
Contingency and mitigation strategies
In case of sudden disruption in the working of the machine, the staff should be vigilant in detecting the
problem. In this regard, the alternative manual machines would be kept at the stores. Proper training
would be given to the staff for detecting and preventing the causes of disruption in the machine (Barney
& Hesterly,2015).
Report regarding the Implementation of the plan
Evidence of approval to implement the plan
Mail sent by the student
Mail sent by the Operations Manager, Woolworths Group
Performance review evidences
The employees, customers and the personnel from the various departments would be given the
questionnaires to know about the feedback about the newly installed machine.
It would include questions such as:
Q1. Is the newly installed machine helpful in saving time and other resources of the organization?
Ans Yes
Q2. Does the machine disrupt frequently?

Leadership management 18
Ans. Sometimes
Q3. Any recommendations regarding the working of the machine.
Ans Continuous monitoring is required to supervise its performance on weekly basis to improve its
efficiency.
Responses regarding the implementation of the plan
The plan implemented for the newly installed machine should be reviewed periodically. Also the
technical aspects such as the hardware and the software system should be updated from time to time.
The billing amounts should also be reviewed by the accounts department daily. Also, the number of
invoices which are not approved by the machine should also be taken care of by the accounts
department.
Final Observations regarding the outcome and implementation of the business
plan
The observations regarding the implementation of the business plan are:
1. The plan should be well implemented and reviewed on continuous basis.
2. The cost management in the implementation could have been better, if it was reviewed properly.
3. The resource management should have been managed in a better way.
Personnel Appraisal of the strengths and weakness of the development and
implementation plan
The strengths in the development and implementation plan are:
1. Uniqueness of the idea (Hargreaves et al.,2016).
2. Cost effectiveness (Meyer & Crane, 2015).
3. Upgraded software and hardware used in the implementation of the plan.
The weakness in the development and implementation plan are:
1. Lack of knowledge in the implementation of the plan
2. Lack of financial resources in the implementation of the plan.

Leadership management 19
3. Ineffective resource management in the implementation of the plan.
Evidence of the Workplace
The following are the evidences of the e-mails sent to the management of Woolworths:
Below is the evidence of the social media page of Woolworths:

Leadership management 20
Conclusion
Thus to conclude, the business plan is developed and implemented regarding the installation of the
automated invoicing machinery. It is expected that it will minimize the wastage of resources and increase
their speed and efficiency of the resources. It is cost effective and will thus contribute towards profit
maximization of the company (Sadeghifar et al.,2015).
The machinery will ease the working of the staff thereby requiring less staff on billing counter on the
stores. It will enable the staff to shift its focus on dealing with the customers. So, the newly introduced
automated machinery will surely prove to be a boon for the organization.

Leadership management 21
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Journal of Management Policies and Practices,3(1),43-49.
Barney, J. B. & Hesterly, W. (2015). Strategic management and competitive advantage concepts and
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Leadership management 22
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Leadership management 23
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