Strategic Management of Woolworths Group

Running head: WOOLWORTHS GROUP 0
Strategic Management
Woolworths Group

WOOLWORTHS GROUP 1
Executive Summary
The purpose of this report is to conduct external and internal environment analysis of
Woolworths Group for evaluating its issues and providing appropriate recommendations.
Woolworths Group was founded in 1924, and it is one of the largest corporations in Australia
in terms of revenue. The firm operates in more than 3,000 stores across different locations in
Australia, New Zealand and India. Its headquarters is situated in Bella Vista, New South
Wales, Australia. In order to analyse the external environment of Woolworths Group,
PESTEL and Porter’s five force analysis is conducted. For internal environment analysis,
VRIO model is used in the report. The report finds that the firm is facing issues due to high
competition, lack of innovation, pricing strategy and others. In order to address these issues,
the firm can improve its online services, improve its pricing strategy and collaborate with
other retailing firms. These recommendations can assist in improving the profitability of
Woolworths Group and sustain their future development.

WOOLWORTHS GROUP 2
Table of Contents
Introduction................................................................................................................................3
External Environment Analysis.................................................................................................4
PESTEL Analysis...................................................................................................................4
Porter’s Five Force Analysis..................................................................................................5
Internal Environment Analysis..................................................................................................7
VRIO Model Analysis............................................................................................................7
Identification of Woolworths Group’s Issues............................................................................9
SWOT Summary....................................................................................................................9
Woolworths Group’s Issues...................................................................................................9
Implications and Recommendations....................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12
List of Figures
Figure 1: Woolworths Group's Logo..........................................................................................3
Figure 2: PESTEL Model Analysis............................................................................................4
Figure 3: Porter’s Five Forces Model Analysis.........................................................................6
Figure 4: VRIO Model Analysis................................................................................................8

WOOLWORTHS GROUP 3
Introduction
Woolworths Group is an Australian corporation which operates in the retailing
industry. The company is Australia’s second largest firm in terms of revenue after
Wesfarmers Limited. The corporation was founded in 1924, and its headquarters is situated in
Bella Vista, New South Wales, Australia (Woolworths Group, 2018a). It is the largest
takeaway liquor retailer in Australia as well. Woolworths operates in more than 3,000 stores
across Australian, and it has hired more than 205,000 employees (Woolworths Group,
2018b). It operates in different locations in Australia, New Zealand and India. Gordon Cairns
is the Chairman, and Brad Banducci is the CEO of the firm. This report will analyse external
environment of Woolworths Group by using PESTEL and Porter’s five force analysis. This
report will evaluate internal environment of Woolworths by using VRIO model. Further, the
report will examine issues faced by the firm and provide recommendations for addressing
such issues.
Figure 1: Woolworths Group's Logo
(Source: Woolworths Group, 2018b)