International Business: Business Management Plan for Woolworths in China

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International Business
Name of the student
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Executive summery
Woolworths limited is a supermarkets and grocery store chain. The company
specializes in selling groceries including fruits, vegetable, packaged foods, meat, fish and
related items. Currently they are planning to expand in Asian market. In Asian market, the
target of Woolworths is primarily China. This report presents a business management plan for
Wools worth describing all the perspective of starting new grocery and retail business in
China including, scheduling, budget, scope, feasibility analysis, objectives and others.

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Table of content
Introduction and Background:....................................................................................................2
Woolworths CSR activity:.....................................................................................................3
Scope of expansion:...................................................................................................................4
Feasibility analysis:....................................................................................................................5
Retail Market analysis of China.............................................................................................5
PESTLE analysis of Woolworths...........................................................................................5
SWOT analysis of Woolworths.............................................................................................8
Stakeholder Analysis................................................................................................................10
Program Logic Model..............................................................................................................13
Resources.................................................................................................................................14
Budget and Gant chart..............................................................................................................17
References:...............................................................................................................................19

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Introduction and Background:
The well-known Australian company, Woolworths was founded in 1924. Owned by
Woolworths limited the Woolworths supermarkets is a grocery store chain. The company
specializes in selling groceries including fruits, vegetable, packaged foods, meat, fish and
related items. Items such as magazines, household, health and beauty products, pet and baby
items are also found in company’s stores. The company has 1000 stores across Australia
consisting 976 supermarket and 19 convenience store (Wolfsbauer and Bobbin 2016). Along
with supermarkets operating across Australia, the company also has an online store named
HomeShop, widely famous for their “click and collect” service and their home delivery
service. In July 1997, the chain of the company stopped operating and put their prime focus
on sporting goods. After the decision of shifting company’s focus, the company renamed
itself Venator group. In the year 2008, the final decision was taken to close all the
Woolworths stores by the first months of 2009 (Parkinson 2018). Although there are other
existing companies across the globe the Woolworths Company has no affiliations. The
company aim to be the first priority and be placed 1st across all their brands. Five priorities
are set by the company to achieve their goal. The company works on building a customer and
store-led culture and team. It also works towards the generating sustainable sales momentum
in food. The next priority is to evolve drinks business and be able to provide more
convenience to customers. Working on their company’s portfolio to pursue strategies and
deliver shareholder value. Lastly, the company works to become a retailer through end –to-
end process and operating with excellence.

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Woolworths CSR activity:
Corporate Social Responsibility (CSR) is the era when the organization achieves the
development of sustainability in both the scenario of economic dimension and in the social
and the environmental dimension (Cheng, Ioannou and Serafeim 2014). It is the CSR that
encourages and assist companies to think about the impact they can have on the rest of the
society including the environment as well as their stakeholders. In the following case study of
Woolworth, the approach towards CSR is recognized by the success that is not measurable in
the terms of growth and profit but in the way it reduces the impact in the environment. In
Woolworths, it is believed that the integration of the financial performances with the criteria
of the non-finances will generally enhance the value for the stakeholders and the members
engaged and connected to the organization. The organization launched its first strategy of
sustainability in the year 2007 named as doing the right (Frigerio 2017). Being a part of the
CSR strategy for the year 2020, Woolworths aims towards daily reporting on the progress of
its targets towards its goals and commitments. The company has goals and commitments
covering Woolworths’s customer, stakeholders, team members and the communities where
the company operates. The noble cause that the company has initiated is all about people,
planet and prosperity which will be explored in this paper.
However, there have been times when the company is faced with various challenges
such as removal of CEO and dropping of share price. Along with all the obstacle the
company there are opportunities as well that are on the way of Australia’s largest retail
company. The company has got the opportunity by the e-commerce platform and now can
enter the international markets of Asia. Through the help of Tmall Global, which provides
scope to the overseas businesses to conduct business, the Woolworths has got the exposure
and ready to be accessed by the consumers (Whitehead 2016). According to research there is

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a very high demand for high quality, Australian made products in the overseas market. Hence
there is a high possibility for Woolworths to experience a business venture.
Scope of expansion:
Woolworths has grown in one of the biggest retail groups in the southern hemisphere
with its retail market from Ghana to New Zealand. The company has their own purpose, their
vision and their set of values. These constitute the natural progression from the values and the
vision of the business that develops the Woolworths. The goals of Woolworths have always
been to put forward the customers and the clients in the first priority. The overall purpose of
the company has been adding quality to the life. Woolworth targets to be one of the world’s
most responsible retailers by reflecting the commitments, the passion towards the customers,
the people and the planet. The assignment focuses on the case study of Woolworths
highlighting the focus of the organization towards the initiative of an international business
platform. The main scope of Woolworths as explained in this assignment is to expand its
platform of the business in the retail sector from one country to another. Woolworths aims
towards the growth of its business to the markets of Asia. Some of the targeted markets that
the company is focusing to expand and grow are of China, Japan, Malaysia and Indonesia.
As per the investors and bankers opinions, through extending in Asian market rather
than domestic or US debt markets Woolworths could afford to operate more in Hong Kong's,
to become the second largest grocery chain in China. Apart from that, outbidding Japan's
Aeon and Thailand's Charoen Pokphand Group could also bring enough opportunity for
Woolworths to flourish. However, borrowing in local currency can create an ordinary
prevaricate while reducing the currency risk in the operating zone. Recently Woolworths has
already launched their first online store on Tmall Global in China as their fist overseas