Analyzing the Effect of External Environment on Woolworths Supermarket

Running head: BUSINESS ENVIRONMENT
Business Environment
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1BUSINESS ENVIRONMENT
Executive Summary
The report has helped in analysing the different external factors that has created huge
presence in the Woolworths supermarket. The different kind of changes has to be resolved in
an effectual manner that has helped the company in solving issues and helped them in
addressing the changes as well.
The main aim and purpose of the report is to analyse the decision-making process tool that
has helped the company in gaining competitive advantage in the economy. Proper
ascertainment has been done that has helped company in gaining competitive advantage and
solve such issues effectively.

2BUSINESS ENVIRONMENT
Table of Contents
Introduction................................................................................................................................3
Evaluation of effect of external environment on Woolworths...................................................3
Appropriate frameworks to resolve challenges faced by Woolworths......................................5
Analysis of industry specific factors in decision-making process of Woolworths....................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

3BUSINESS ENVIRONMENT
Introduction
The report helps in analysing and critically evaluating the effect of the external
environment on the firms. The firm that has been chosen in the entire report is Woolworths
Supermarket wherein appropriate kind of frameworks help in resolving the challenges that is
faced by the respective firm. Proper and synthesise of the industry specific factors in the
context of the decision-making technique has to be analysed effectively for the different firms
and Woolworths in a respective manner.
The main aim and purpose of the report is to identify the different kind of effects of
external environment on the Woolworths firm. Proper frameworks will be applied as this will
help in analysing the challenges and analyse the decision-making process as well. Proper
analysis is required to be done appropriately as this will help the company in undermining the
business of the retailers and analysing the preferences of the customers in an effectual
manner.
The structure of the report includes the evaluation of external environment of
Woolworths on the entire economy along with analysis of the strategies that will reduce the
risks and mitigate the risks effectively.
Evaluation of effect of external environment on Woolworths
Proper external analysis is required to be done of Woolworths as this will help in
understanding and identifying the political, economic, social, technological, environmental
and legal factors that can affect the business in both positive and negative manner.
The different kind of political factors created poor relationships with the different
suppliers that led to change in the culture of the business (Hansen & Villadsen, 2017).
Woolworths is one such supermarket that had been successful in the entire market had bad
relationship record with the suppliers. There is huge political kind of pressure against the