Management Strategy for Woolworths Group: Strategic Scenario Plan

Verified

Added on  2023/06/13

|11
|3185
|146
AI Summary
This article discusses the management strategy for Woolworths Group, including a strategic scenario plan, future forecasting methods, financial projections, and a SWOT analysis. It also covers the organization's competitive and diversification strategies, as well as its top-line strategy.

Contribute Materials

Your contribution can guide someone’s learning journey. Share your documents today.
Document Page
MANAGEMENT
STRATEGY
STRATEGIC
SCENARIO PLAN.

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
Table of Contents
INTRODUCTION...........................................................................................................................3
INTRODUCTION AND DATA APPROACH...............................................................................3
ORGANIZATION OR COMPANY OVERVIEW-....................................................................3
SOURCING DATA-....................................................................................................................3
FUTURE FORECASTING METHODS.........................................................................................5
FORECASTING METHODS-....................................................................................................5
LISTENING PROCESS-.............................................................................................................5
FINANCIAL PROJECTIONS-...................................................................................................6
OVERALL HEALTH AND PERFORMANCE OF THE COMPANY-....................................6
Section 3 strategic development..................................................................................................6
CONCLUSION................................................................................................................................8
Section 4 conclusion....................................................................................................................8
REFERENCE.................................................................................................................................10
Document Page
INTRODUCTION
INTRODUCTION AND DATA APPROACH
ORGANIZATION OR COMPANY OVERVIEW-
Woolworths group is an Australian retailer organization which is one of the biggest
Australian company. It was founded in 1924 and currently having 3000 stores, employing over 2
lac team members who serve over twenty-nine million customers. Currently the group is present
in more than 13 countries but basically serving in Australia (Hepworth and Newman, 2019.) The
company believes in partnership, innovation and deep care for people, as well as inclusion, well-
being and sustainability.
OPPORTUNITIES AND PROBLEMS-
Opportunities- Post pandemic recovery advantage, Expansion in NZ and other countries,
offering new products, large number of super markets, huge market share, great reputation these
all aspects can favour the company to get more market share and strengthen position.
Introduction of fresh products in the market since post pandemic market is prone to it.
Problems- After pandemic the organization is facing problems like- Slow consumer cycle and
slowing growth in the market. Changing priority of customers toward fresh foods it impacted the
business, Growing competition in the retail market specially in NZ, Higher taxation, quality
concern, fluctuation in Australian dollar, Deleverage in the Australian market.
The company may go with new strategy to eradicate the perils. Introduction of new
products or assuring people for hygienic products will give it upper hand. New quality standards
can be implemented. In Australian market repositioning strategy can be implemented since the
market is offering a good scope if retailers offer the products of the choice of customers. After
pandemics the trend is shifted to fresh products so by implementing new strategy with this regard
it can add value to the customers.
SOURCING DATA-
Methods of sourcing data- For the purpose the data is taken from various sources. Mainly
the financial reports in which both statement of financial performance and financial position are
Document Page
taken of the concerned organization and other printed sources, interviews, survey, observation
and some other methods are also taken into consideration while sourcing the data for Woolwoths
ltd. Other authentic sources which discloses the data are also considered (Grimmer, 2021.)
OUTLINE OF IMPORTANT DATA-
The data of Woolworths Ltd is as follows-
Woolwoths is having around 31% market share in retails. Revenue in last three years has
been 59.98, 63.68, 55.69 billion Australian dollars. Net income has been 2.69, 1.17, 2.07 billion
Australian dollar. EBIT of the organization 3.58, 4.39, 4.90 billion Australian dollars.
Total asset at present is 39.24. Cash in 2021 was 1.01 and working capital in last three
years had been -2.32, -5.07, -7.33 billion Australian Dollars. Cash flows in 2020 was -1.9 billion
A. D and in 2021 -0.7 billion Australian Dollars (Tiwari, 2018.)
It is targeting working class and upper middle class section of the society with customer
focused services and every possible product at convenient prices under one roof.
Both quantitative and qualitative data are taken for the purpose of analysing the
performance and for making predictions for the chosen organization.
RATIONALE BEHIND SELECTION OF DATA-
Rational for
selecting data
For analysing Woolworths Ltd the data is selected for fulfilment of the
objectives. For analysing the opportunities and perils before the organization
and how by following strong strategy it can eradicate the problems and grab
the available opportunities. The financial data of the company is taken to know
the financial performance over last three years so help us in forecasting. The
data is taken for last three years so the impact of pandemic can also be
assessed. By following the taken data predictions for the future performance of
the entity can be easily made.
Organization For making the data more useful it has been organized. It is arranged in an

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
of data order. Firstly the mathematical data is taken which is signifying statistical
performance and latter on Qualitative data is considered. Financial data is
taken for three years so can bring comparability year wise.
Other sources For better information various authentic websites are also used so can make the
picture of performance more clear.
FUTURE FORECASTING METHODS
FORECASTING METHODS-
For making forecasting for Woolworths Ltd various methods are used which consist
Delphi method, Market survey and Trend analysis, Observation method, Time series analysis.
The methods are used to provide projection for the future of the company. The variety of
methods are used to wipe out the problem of biasses of a method. Delphi method is used for
knowing the views of experts. Experts respond to several rounds of questionnaires and the
responses are aggregated so can maximize the results by knowing expert views. Market survey
and Trend analysis is made to predict the performance. For this purpose the feedback of
customers and reviews of employees is taken into consideration. By observing the data of last
three years trend of the performance is also assessed. So these all methods are used to forecasting
for Woolworth's performance in the future.
LISTENING PROCESS-
While collecting the data by direct interactions the listening process is followed properly
so can maximize the results. The proper channel is followed which consists receiving,
understanding, remembering, evaluation and feedback. As it is told in sourcing of data interviews
and survey methods are used so the listening process is carried out. Firstly the information is
received and then for understanding and remembering proper methodology is implemented. For
evaluation purpose various techniques are used like bifurcation, organization, simplification etc.
At the end of the process feedbacks of the concern parties here in the case customers and
employees are considered and their views or any recommendation is taken. That's how the
listening process is followed in data gathering and analysing which helped in ensuring the quality
of the available data (Bielefeld,2021.)
Document Page
FINANCIAL PROJECTIONS-
These are a few projections which can help the organization in being more profitable in
the future.
1) The net income of the company had been 2.69, 1.17, 2.09 billion Australian dollars from
2019. In pandemics even the entity generated profit it is a positive sign. After pandemics, it is
showing a great recovery and now the profit is 2.09 so it can be predicted to be more in the
future. So company can use this net profit amount for the purpose of expansion and can take
more advantage of post pandemic recovery of the market.
2) Working capital from 2019 has been in negative figures. In 2021, it was -7.33 billion AD
Which is a matter of worry. Even in 2021 it has shown good recovery yet it surged from -5.07 to
-7.33 So if the same trend may exist then it would be more these years. So for countering it the
company can bring new working capital management policy so can provide sufficed liquidity.
OVERALL HEALTH AND PERFORMANCE OF THE COMPANY-
The overall health and performance of the company is now can be called average. Since
after pandemics it is generating good amount of profit yet it can't be called satisfactory. Cash
flows in 2020 and 2021 had been negative(-1.09, -0.7) (Samad, Wondal and Nurhasanah, 2021.)
It is showing recovery yet it is matter of stress. On the other hands in last consecutive three years
company is facing problem of negative working capital. It is severe challenge since if the
sufficient amount of liquidity is not in hand then the available opportunities can't be grabbed
even operational failures can also be experienced. These concerns are already expressed in the
forecasting. Otherwise, after being hit be CoVID-19 the company is showing positive
performance with a few considerations it can be given sharp surge.
Section 3 strategic development
The Woolworth group is one of the most leading brand of the Australia which deliver best
experience to the buyers of the organization In order to increase the profitability and experience
of the customer the organization develop the strategic plan. With the assistance of strategic
planning or the development the organization will able to operate the business in effective as
well as efficient manner (Bryson and George, 2020). The organizations strategic mission of the
Document Page
company is to deliver the best and convenient and qualitative services to the consumer in
appropriate manner. Apart from that the goal of the company is to improve the services or bring
innovation in order to make sure that the customer is satisfied with the services. Along with that
the vision of the company is to lead the establishment in the southern hemisphere and become
the first priority of the customer. In order to that the organization is offering the best services all
over the world that give assistance in improving the image of the brand.
SWOT analysis
The SWOT analysis is considered as one of the best tool to determine the values and the status of
the brand in effective as well as efficient manner. The swot analysis consist of the four element
which are mentioned as follows:
Strength: the biggest strength of the organization is that the company is one of the leading brand
of the Australia. It means the organization is having higher brand value in the domestic as well as
international market. Along with that the organization is having the highest market share in the
marketplace. The organization is providing wide variety of the commodity and services to the
customer. Along with that the organization deliver the several loyalty programme to the
customers which increase the awareness among the people and attract large numbers of the
customers from different market.
Weakness: the organization is having the presences in the limited areas as compared to the
competitors of the organization. The organization is having the limited supplier all over the
geographic due to poorer relation with the suppliers (Catană and Toma, 2021). Along with the
organization is not growing much due to increment in the online branding and availability of the
online stores.
Opportunity: the organization has the opportunity to expend the business all over the brand by
making good relationship with the supplier. The expansion of the business in the international
market can enhance the profitability of the company. Along with that the organization can offer
online services to the customers in the modern era. Along with that the organization can enhance
the awareness among the people with the assistance of advertising and promoting the brand.
Threat: the availability of the large numbers of the competitors available in the marketplace
which offering the innovative product and services to the consumers. Another one is the slow
growth of the online platform or the stores in the Australian market.
Top-Line Strategy

Paraphrase This Document

Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Document Page
The organization considered as one of the best organization in order to increase the revenue or
gross sales of the organization. Due to the plan of action the company is able to develop the
strong finical value in the marketplace (Dzwigol, 2020) . With the assistance of the top line
strategy the organization is generating gross profit in the domestic as well as international
marketplace.
Competitive Strategy.
Through the competitive strategy the organization is increasing the awareness among the people
and delivering the transparency to the consumer in effective as well as efficient manner. The
organization promotes the business enterprises on the social media platform such as Facebook,
Instagram, chrome, google etc. along with that the organization target the market and the
potential customer in order to increase market in southern hemisphere in appropriate manner.
Vertical Integration and Diversification Strategies.
The diversification strategy give assistance in increasing the business in the various geographical
area (Halachmi,2019). The organization builds the relationship with the different suppliers in
order to increase the presence in the right direction.
CONCLUSION
Section 4 conclusion
From the analysation it will be concluded that the organization is capable enough to take expend
the business in the international marketplace. Along with that the organization is satisfying the
customer by offering various services to the consumer in effective as well as efficient manner.
Along with that the organization can increase the business in the southern hemisphere with the
utilization of the digital platform. In context to attract large numbers of customers from
different market segment the organization can user digitalization where the company offers the
wide range of the product on online stores. With the assistance of that the organization is able to
expend the business all over the world. As in the modern era every person is depended on the
latest technology the company is capable enough to increase the market in short period of the
time (Khrystyna and et.al2021). Along with that in order to increase the satisfaction of the
customer the organization focuses on the quality of the product. Aspart from that as the
organization is having the brand value in the market of the Australia the company is able to
deliver the competitive advantages and lead the other market. In the sort period the company
make research on the market and able to target the potential customer fort increasing the
Document Page
awareness among them. Moreover, in the medium term the organization open the outlets or the
online stores facilities in the various cites or countries with the assistance of making good
business relationship with the suppliers.
Walmart is also the organization which is using the same strategy to increase the business all
over the world in adequate manner. Along with that with the digitalization Walmart is defeating
the other organization in appropriate manner. On the other hand the organization is dealing with
the various challenges in the retail sector that are quit similar to Woolworth organization. UMS
is also a retail company which can use the top line strategy in order to deal with the challenges of
competitors. For instance with the assistance of the top line strategy the organization can boost
the sales of the company in appropriate manor.
The competitive strategy will be the best for boosting the sales of the company as it give
assistance in comparing the organization with the other company and attreacting the large
numbers of the customers (Makadok, Burton and Barney 2018). While using the competitive
strategy the organization will offer the better and qualitative product at the cheap price to the
consumer which help in increasing the scale of the growth. On the other hand this strategy is
already used by the competitive retail company and some organization is planning to copy this
plan of action as the specific organization find it profitable and productive.
In the process of the management and decision-making the knowledge is play essential role. The
management is the function of managing the people and the operation of the company in
appropriate manner which required special knowledge. The knowledge is sometime because of
that thee individual person can determine the pros and cons of the organization. With the help of
the knowledge the individual person is-able to identify the requirement of the resources in the
company. Along with that the individual person is able to deliver right product to the right
customers as well as proper guidances to the workers who are offering services to the consumer
on behalf of the company (Young, Rosenstiel and Henderson, 2020). Within the less knowledge
the people of the organization are not able to determine the taste and preferences of the
consumer. Beside that the individual working people is not able to accomplish the goal of the
company in effective manner. Management and decision-making are totally depended on the
knowledge of the person.
Document Page
REFERENCE
Bielefeld, D., Hughes, J. and Grafenauer, S., 2021. The Changing Landscape of Legume
Products Available in Australian Supermarkets. Nutrients. 13(9). p.3226.
Bryson, J. and George, B., 2020. Strategic management in public administration. In Oxford
Research Encyclopedia of Politics.
Catană, Ş. and Toma, S.G., 2021. Retail industry-marketing strategies for the competitive
business environment. Manager (University of Bucharest, Faculty of Business &
Administration), 33(1).
Dzwigol, H., 2020. Methodological and empirical platform of triangulation in strategic
management. Academy of Strategic Management Journal, 19(4), pp.1-8.
Grimmer, L., 2021. A new way to pay is coming to Woolworths and Coles: Interview with
Matthew Elmas.
Halachmi, A., 2019. Strategic management and productivity. In Public Productivity
Handbook (pp. 641-666). CRC Press.
Hepworth, K. and Newman, F., 2019. Trade Unions v. Social Audits: Addressing labour
exploitation in Woolworths domestic food supply chain. Human Rights Defender. 28(1).
pp.14-18.
Khrystyna and et.al2021. Strategic management of the innovative activity of the
enterprise. Journal of Optimization in Industrial Engineering, 14(Special Issue), pp.95-
103.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Samad, F., Wondal, R. and Nurhasanah, N., 2021. Early Listening Skill on Lesson Study-Based
Activities. Jurnal Obsesi: Jurnal Pendidikan Anak Usia Dini. 6(3). pp.1930-1937.
Tiwari, S., 2018. Data sourcing techniques for personalized location based tourist spot
recommender system (Doctoral dissertation).
Young, K.M., Rosenstiel, T.L. and Henderson, P., 2020. Long-term R&D strategy and
planning. Research-Technology Management, 63(2), pp.18-26.

Secure Best Marks with AI Grader

Need help grading? Try our AI Grader for instant feedback on your assignments.
Document Page
1 out of 11
circle_padding
hide_on_mobile
zoom_out_icon
[object Object]

Your All-in-One AI-Powered Toolkit for Academic Success.

Available 24*7 on WhatsApp / Email

[object Object]