Risk Management for Woolworths Group Limited

Running head: RISK MANAGEMENT
Risk management
Name of the Student
Name of the university
Author note

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Part A
1. Summary and Overview of the company
Woolworths Group is a well reputed retail company in Australia. The segment of the
company includes Australian food and petrol, a supermarket chain in New Zealand, BIGW,
Hotels and Endeavour Drinks Group. The food and petrol segment of the company is involved in
the procurement of petroleum as well food products for reselling to the Australian consumers.
While the BIGW segment deals with the procurement of discount in general merchandisers, the
hotel segment deals with the provision of a range of leisure and hospitality services to the
Australian consumer. The mentioned organization is the second largest retail company in
Australia as well as in New Zealand when it comes to yearly revenue (Dos Santos, Svensson and
Padin 2013). Moreover, recently the company has expanded its business in the Indian retail
market. In spite of the fact that the chief sector of the company is the retail sector, the mentioned
company is also the largest retailer of liquor in Australia.
Considering the fact the company operates in several sectors and is a multinational
organization, the management of the company suffers from several risks associated with their
stakeholders and consumers. In this report, an analysis of the external and internal factors that
have the potential to develop risks for the company has been performed. Along with that, a risk
management plan in order to eradicate potential risks of the company has been developed in this
report.
2. Stakeholder Analysis of Woolworths
Like any other organizations, the stakeholders of the Woolworths company includes its
consumers, employees, suppliers, shareholders and debt funders. In addition to this, other

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stakeholders of the company include franchises, unions, media, NGOs, organized business, and
community interest groups. In the following table, a stakeholder analysis of three major
stakeholders of the Woolworths Group limited has been conducted.
Stakeholder Roles and Responsibilities Power in the business
Consumers The role of the consumer is to
pay for the products as well as
services offered by the
Woolworths company. The
consumers pay a vital role in the
economic system of the company
since increasing consumer
demand motivates the produces
and enhance the revenue of the
company (Marraccini et al.,
2012).
Considering the fact that the
number of consumers of the
Woolworths company is huge,
the power of the consumers in
business in high.
Employees The chief role of the employees
working in Woolworths
organization is stocking shelves,
merchandising, providing
assistance to the consumers,
consumer service, operating the
stores and others. The role of the
manager is to manage the
employees so that their
Currently, the total number of
employees in the mentioned
organization is 2,02,000. Thus it
can be understood that the power
of employees in the business is
high.

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productivity gets increased.
Shareholders Three of the major shareholder of
the company includes Perpetual
Investment Management Ltd.,
The Vanguard Group, Inc. and
BlackRock Fund Advisors.
Shareholders do not normally
have any rights to be involved
directly in company management
(Keith 2012). They connect with
the management of Woolworths
through the boards of Directors.
In spite of the fact that the
shareholders do not possess the
right to participate directly in the
decision making of the company,
their investment is highly crucial
for the prosperity of the
company. Thus the power of
shareholder in Woolworths is
moderate to high.
3. The scope of risk management of Woolworths
In order to properly address as well as eradicate current as well as potential risks associated with
Woolworth organization, it is crucial for the organization to address the issues in a transparent
manner. The scope of risk assessment of the organization is as follows:
1. Education and Training
2. Equipment Arrangement
3. Monitoring and evolution
4. Legislative Support
4. SWOT and PEST Analysis of Woolworths