Environmental Analysis and Risk Management for Woolworths

Business Enviornment
Woolworths
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Business environment 1
Contents
Introduction......................................................................................................................................2
Background information..................................................................................................................2
General and historically relevant responses the factors...................................................................3
PESTLE.......................................................................................................................................3
Porter’s five forces analysis.........................................................................................................6
Respond with a solution to all of the environmental risks...............................................................7
Scenario Planning........................................................................................................................8
Wargaming..................................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

Business environment 2
Introduction
In the current era, this has been found that it is essential for the company to conduct the analyses
related to the environmental factors that can affect the working of the company. This report is
environment scan report which is prepared with the objective to propose the solutions to the
challenges which is faced by the firm in the environment in which they are managing their
operations. This reflects that the report is the continuation of the previous one in which the
discussion related to the Woolworths external factors has been done. These factors lead to the
issues which affect the company as they won’t be able to meet the needs of the customers. The
major focus of the report is to find out the solution of problems that offer the convenience to the
company while conducting their business operations in the market.
Background information
Woolworths is a well-known company that is present in the Australian market and came into
existence in the year 1924. The company is specialized in selling the groceries item in their
supermarkets which mainly include vegetables, fruit, meat and many others. The company is
able to manage more than 1000 stores within Australia. In the Australian market, Woolworths is
getting affected by the micro and macro factors which are discussed in the previous assessment
(Woolworths, 2018). Considering the competitive market, it is essential for the company to find
the solutions to the factors.

Business environment 3
General and historically relevant responses the factors
PESTLE
Political factors
Woolworths Company is operating their business operations in Australia and New Zealand and
both the countries are stable in terms of policies (Armstrong, Adam, Denize and Kotler, 2014).
The performance of the company was affected by the campaign introduced by the government
which was based on the unfair competition offered by the company to small retailers. This has
exploited the image of the company in the market of Australia. The company took the steps to
manage the same by appointing a dedicated team who look towards the step taken by the
company as this helps them in managing the sustainable position in the market.
Economic factors
The economic factors affect the profitability and revenue of Woolworths. This has been found
that the rise in the GDP of Australia and New Zealand is offering the benefit to the company
with the rise in purchasing power (Chernev, 2018). This will also bring the changes in the prices
of products offered by the Woolworths. The rise in the prices helps the company to earn the
profit in the market of Australia.
Social factors
The change in the preference of the customers is affecting the operations of the Woolworths
Company. The choices of the customers and demand are affected by the changes in technologies
(Hill, Jones & Schilling, 2014). Along with this, the rise in the awareness among the customers