Big W: Analysis of Professional Communication Skills Report

This report provides an analysis of Big W's professional communication skills within the supermarket and retail industry. It examines the company's strengths, such as its focus on customer needs and corporate social responsibility, highlighting initiatives like providing free books for kids and its product safety commitment. The report also critiques Big W's weaknesses, including its cost-saving strategy and store closures, and the impact of misleading promotional practices. Recommendations are made for Big W to maintain its prices, restructure its supply chain, and prioritize customer and team well-being, suggesting that these steps will contribute to the company's long-term success and sustainable growth in a competitive market. The conclusion summarizes the ups and downs of Big W under the Woolworths Group and emphasizes the importance of core values.

Running Head: COMMUNICATION 0
Big W
Professional Communication Skills
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Contents
Introduction................................................................................................................................3
Big W.........................................................................................................................................3
Aspect of excelling at.............................................................................................................3
Aspect of criticism for............................................................................................................4
Recommendations......................................................................................................................4

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Executive Summary
In this competitive business world, it is essential to keep on operating in a right way with
right decisions to make the company run for long-term. In every organisation, there are highs
and lows that the company needs to face but this depends on their power of making decisions
to maintain the position in the market with fulfilment of core values. Every company
generated the aspect of excelling and criticising for understanding the working within the
change in the retail working environment in terms of focusing on the supermarket industry. It
only requires planning right strategy, practices and processes for future success consisting
modernization and improvising transformation within the offerings and proper guideline
nationally and across the globe.

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Introduction
In today’s competitive business world, supermarkets industry is making a food retail channel
at huge across the globe where it offers broad variety of household necessities, food and
beverages with fast transformation in recent. This sector of retail industry is customizing
operating strategies using common method such as ECR standards (efficient consumer
response) for increasing supply chain efficiencies of supermarket to drive logistics trends.
Supermarkets are predominate food products distribution channel of FMCG (Fast Moving
Consumer Goods) as a major of the industry while managing the controlled flow (IBIS
World, 2020). This report is going to analyse the aspects of company “Big W” excelling at
and other as criticism for based on the industry of supermarket.
Big W
In Australia, “Big W” under Woolworths Group Limited as one of the most loved brands.
The company put its team and customer at first across the network of 183 stores all over the
country. Moreover, they provide great prices for the families of Australia working with a
team of over 18,000 individuals. Its core values are to care deeply, learning and listening
while doing the right thing providing “on-trend” quality products to customers at great prices
(Woolworths Group, 2020). Recently the organisation has reported growing sale which
provides it a competitive advantage than compared to its key competitor including operating
in clothing and retailing sector such as K-Mart and Coles (Figure 1).

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Figure 1: Growing sale of Big W
Source: (Murphy, 2019a).
However, the company is also facing challenges due to growing competition in the retailing
sector of Australia which resulted in reducing its sales and profits. The following graph
shows the struggles faced by the organisation due to its failure to innovate in the retailing
sector.

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Figure 2: Australian retail trade (Big W)
Source: (Murphy, 2019b).
Aspect of excelling at
Big W is excelling at fulfilling the needs of every customer by making a real difference for
making the company as family grow with its team and customers. The company provide free
books for kids to boost their imaginations and sharing stories by gaining knowledge. Also,
Big W has its one-stop party shop where individuals can buy things for decorations at great
prices especially for families living in Australia. The company created home delivery or Pick-
up for free on same-day for growing families as well to show and spread love offering 90
days returns if any customer changes the mind (Big W, 2020). Hence, Big W just tries to
make every single day of individuals easier through its helping ways and offerings.
Moreover, they keep on developing more ways for customer and their family to rely on with
pricing strategy on big days where customer expects rewards recognition, quality basics, and
big-name brands. The company donates through programs with Good360 as being in a
partnership while making differences to Aussie families. Thus, the outshining aspect at Big
W is its quality products and great prices with putting the company’s team and customer at

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first. The survival of the company in the world of retailing is to excel and embrace while
working and operating effectively and efficiently (Salmon, 2016).
Another aspect in which the company excels at
Corporate social responsibility (CSR) is another aspect in which the company excels at which
assist the organisation in creating a positive brand reputation in the Australian retail sector.
Woolworth which is the parent company of Big W has implemented policies to make sure
that the company is able to deliver effective products and services to its customers without
hindering its brand image. For example, the company has implement “Product safety
commitment” policies which enable it to make sure that it delivers high-quality products
which are focused on customers’ demands and these products did not negatively affect the
environment (BigW, 2020). While complying with this policy, the organisation also ensures
that it follows the customer safety guidelines which are introduced by the Competition and
Consumer Act 2010 (BigW, 2020). As per this policy, the company focuses on conducting
factory audit, product testing and inspections to ensure that its products are safe to use for its
customers. Customers also have the option to report an incident which they face with the
product and the company provides them adequate compensation to protect their rights. Due to
these policies, the organisation is able to create a positive brand reputation in the market
which enables it to excel in the Australian retailing sector.
Aspect of criticism for
In Australia, Big W revealed its discount stores closing within three years as the company
was pushing the cost-saving strategy as a failure in the retail market. The impact of closing
stores was of affected team of the company as they lost jobs which were their priority. But,
the company was committed to support the team for next six months and help in exploring
redeployment opportunities for their continuous career with other brands of Woolworths
Group at Big W (Hall, 2019). There are 30 Big W stores in total as a discount retailer owned
by Woolworths but need to close them within three years due to risk based on the problem of
discounter in linked to child of the group losing millions. The customers started to move
towards Big W competitor that is Kmart, also Zara and H&M as fast-fashion powerhouses
(Brook, 2019). Thus, the aspect of criticism for Big W is its cost-saving strategy and making
differences between Aussie families and other individuals. In retail, the proportion blown out
and pricing tactics mislead is also one of the supermarket’s criticism. The failure is generated
with cutting out the misleading promotional practices such as offerings in relation to

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discounted price. Also, it is essential to work with guidelines to reduce the pricing problems
for making sure about the customer’s fair treatment and transparency (Hobbs, 2015). So, it
requires modernization in the retail industry with working strategy for increase in operations
of supermarkets.
Recommendations
To recommend, Big W needs to maintain its prices for long-term working in stores thinking
of employees and keep the customers happy without any wide failure of struggling. It is
essential for the company to restructure the supply chain and increase the level of discount
market as Woolworths has great reputation that can create opportunities. Moreover, it is
crucial to maintain its operating costs for the company’s market share and success. As Big W
is committed to the core values of giving first preference to customer and team, the company
should take steps in relation to both rather than thinking of profit by making investments. The
decision should be taken of lowering inventory and improving stock flow while making the
process and practices in business easier while boosting the gross margins and unsold stock
reduction. However, the major issue is not of price but to focus on right stock flow on right
day in right stores that will help in end-of-season amount reduction in terms of markdowns
and clearance (Mitchell, 2019).
The decision of closing the stores were to help in boosting the profitability for attaining the
stability of remaining Big W stores for its brand success. So, it is essential for Woolworths
Group to open the alternatives for further success and growth while maintaining the values of
customer and team as the company’s first priority. It will help in encouraging opportunities
and improving the conversion speed to earn as planned for long-term (Lannin, 2019). Hence,
this will lead Big W with more sustainable and robust distribution centre and store network
with rapid change in the retail environment. Also, will make the growth of sales high and
boost the profits in future.
Conclusion
To conclude, this report sums up the ups and downs as the aspects of Big W under the
Woolworths Group with upholding the company’s core values of making customer and team
as their first and utmost priority. The company faced various risks and challenges to deal in
the market but tried hard to maintain its position as a discount retailer with Woolworth’s

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reputation as well. Thus, in the supermarket industry, Big W focuses on building the great
values among the country’s people and development of opportunities for team.

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References
Big W, 2020. BIG W. [Online]
Available at: https://www.bigw.com.au/about-us
[Accessed 17 January 2020].
BigW, 2020. BIG W Product Safety Commitment. [Online]
Available at: https://www.bigw.com.au/product-safety-commitment
[Accessed 18 January 2020].
Brook, B., 2019. Smaller suburban centres could be in Big W firing line as discounter
announces first of 30 store closures. [Online]
Available at: https://www.news.com.au/finance/business/retail/smaller-suburban-centres-
could-be-in-big-w-firing-line-as-discounter-announces-first-of-30-store-closures/news-story/
c398718c53e5155986bf029b82116df1
[Accessed 17 January 2020].
Hall, J., 2019. Big W reveals the first three stores to close in January. [Online]
Available at: https://www.news.com.au/finance/business/retail/big-w-reveals-the-first-three-
stores-to-close-in-january/news-story/6b78275684d95c02a053d266d6e21a3b
[Accessed 17 January 2020].
Hobbs, T., 2015. Criticism of supermarket price tactics “blown out of proportion,” claims
BRC. [Online]
Available at: https://www.marketingweek.com/criticism-of-supermarket-price-tactics-blown-
out-of-proportion/
[Accessed 17 January 2020].
IBIS World, 2020. Supermarkets & Grocery Stores Industry in the US - Market Research
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Available at: https://www.ibisworld.com/united-states/market-research-reports/supermarkets-
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Lannin, S., 2019. Woolworths to shut 30 of its Big W stores amid retail gloom. [Online]
Available at: https://www.abc.net.au/news/2019-04-01/woolworths-to-shut-30-of-big-its-w-

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stores-over-next-three-years/10958700
[Accessed 17 January 2020].
Mitchell, S., 2019. Woolworths finally bites bullet on Big W. [Online]
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[Accessed 17 January 2020].
Murphy, J., 2019a. ‘Retail sector in recession’: Warning signs for Kmart, Big W, Myer and
David Jones. [Online]
Available at: https://www.news.com.au/finance/business/retail/retail-sector-in-recession-
warning-signs-for-kmart-big-w-myer-and-david-jones/news-story/
22b6d944bb3d82fc6d93437d433c04b6
[Accessed 18 January 2020].
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c176efe37d7db039e894ad0536b1b24d
[Accessed 18 January 2020].
Salmon, K., 2016. SURVIVING THE BRAVE NEW WORLD OF FOOD RETAILING.
[Online]
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[Accessed 17 January 2020].
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[Accessed 17 January 2020].