Stakeholder Analysis of Woolworth Supermarket Report

This report provides a comprehensive stakeholder analysis of Woolworth Supermarket, examining both internal and external stakeholders. It identifies key stakeholders such as customers, employees, suppliers, investors, government, and competitors, and assesses their roles, interests, and levels of influence. The report delves into the nature and degree of stakeholder interests, highlighting potential conflicts and their implications. It includes a SWOT analysis of stakeholders, outlining strengths, weaknesses, opportunities, and threats. Furthermore, the analysis explores dissimilarities among stakeholders and differences in their interests and influences, offering insights into effective stakeholder management. The report concludes by summarizing the key findings and implications for Woolworth Supermarket's business strategy, emphasizing the importance of addressing stakeholder interests to ensure sustainable business performance. The analysis demonstrates how stakeholder engagement is critical for long-term success in the intensely competitive market.

RUNNING HEAD: BUSINESS ENVIRONMENT
RUNNING HEAD: BUSINESS ENVIRONMENT
BUSINESS ENVIRONMENT
Name of the Student:
Name of the University:
Author’s Note:

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Executive summary
This report aims to analyse the stakeholder of Woolworth Supermarket. The success of
this company depends on the internal stakeholders and external stakeholders of this company.
Though the level of interest of every stakeholder is not similar yet it can be said that it is the
responsibility of Woolworth Supermarket to fulfil the interest of every stakeholder. Every
stakeholder of this company has a different contribution to this company. The level of interest is
identified in this report. By addressing the interest of employees, Board members, investors,
customers, suppliers, government, competitors, and community this organisation can manage its
business in an intensely competitive market.

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Table of Contents
Introduction:....................................................................................................................................3
Company background:.....................................................................................................................3
Identification of functional areas:....................................................................................................4
Identification of internal and external stakeholders and their roles:............................................4
Identification of the nature and degree of the main stakeholder’s interest and implications of
conflicting interests:.....................................................................................................................7
Identification of the level of the main stakeholder’s influence:................................................10
Stakeholder matrix:....................................................................................................................11
Identification of stakeholder dissimilarities and analysis of the differences in stakeholder
interests and influences:.............................................................................................................12
Conclusion:....................................................................................................................................13
References:....................................................................................................................................14

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Introduction:
The present business scenario is much more competitive due to the intensity and rate of
competition. Along with the competitive business scenario, the officials of a business
organisation are facing more complicated sets of stakeholders. Identifying the internal and
external stakeholders is important for a business organisation. Stakeholder analysis is important
for a business organisation because it will help the company to fulfil the interest of the key
stakeholders of the company. This report aims to identify the key internal and external
stakeholders of the Woolworth Supermarket. Interest and influence of the stakeholders along
with stakeholder management theories will be identified in this report.
Company background:
Woolworth Supermarket is the biggest super chain of Australia controlled by the
Woolworth Group. In 1924, this supermarket was established. Headquarter of this organisation is
located in Bella Vista, Australia. At present this organisation operates in 3240 stores throughout
Australia with the help of 201,000 team members (Woolworthsgroup.com.au, 2018). Brad
Banducci is the present CEO of this company (Woolworthsgroup.com.au, 2020). The mission of
this company is to deliver the best in convenience, value and quality for the consumers of this
company. The vision of the organisation protects the environment and the Welfare of the animals
(Woolworthsgroup.com.au, 2020). Besides that, this organisation motivates its suppliers and
business partners to become environmentally responsible and follow the core values of
Woolworth Supermarket, which is producing the best quality products in a safe and fair working
condition (Woolworthsgroup.com.au, 2020). Total revenue of this Organisation in 2017 was $56,
726 million (Woolworthsgroup.com.au, 2018).

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Identification of functional areas:
Identification of internal and external stakeholders and their roles:
Identification of
stakeholder group
Role
Customers The success of this organisation depends on customers, the core
external stakeholders of Woolworth Supermarket. To make the
business viable, customers play a significant role. By purchasing
products from this organisation ensure the cash flow (Nejad et al.,
2016). Besides that, to improve the business operation, the officials of
Woolworth Supermarket has to rely on customer feedback. So it can be
said that the success and development of a business organisation
depend on the feedback from the customer’s side. That is the reason
this organisation is interested to satisfy the customer requirements of
29 million people throughout over 3240 store network. It can be said
that the customer is an opportunity for this company.
Employees Employees are the core internal stakeholder of Woolworth
Supermarket. The quality of value propositions of Woolworth
Supermarket depends on the skill sets and expertise of the employees.
(Kent & Zunker, 2017). Also, employees of this organisation have the
responsibility to fulfil the diverse needs of the market. That is the
reason this organisation emphasises on its 201,000 team members. The
efficient workforce of this company is a strength for Woolworth
Supermarket.

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Suppliers Suppliers of Woolworth Supermarket is an external stakeholder.
Suppliers have the responsibility to deliver the raw materials for the
business. This organisation uses the services and goods, delivered by
thousands of direct and indirect suppliers. For the long term
development and sustainable development, this organisation offers
favourable terms to its suppliers (Hvass, 2014). Suppliers of this
company is a strength for this company.
Communities Community is the external stakeholder of this organisation. As an
external stakeholder community can affect the business operation of
Woolworth Supermarket. Community is a weakness for this company
because this company has to prioritise community to create a positive
reputation in the market (Vijayan et al., 2014).
Competitors Competitors are an external stakeholder of a business organisation.
Though computers are not directly involved in the business of
Woolworth Supermarket yet it can be said that the business operation
of this organisation can be affected by this stakeholder (Sutton-Brady,
Kamvounias & Taylor, 2015). Competitors can increase the level of
competition in the market which can create an adverse impact on the
business of Woolworth Supermarket and vice versa. Competitors of
this company are a threat.
Government As an external stakeholder, the government can affect the business
operation of Woolworth Supermarket. The key role of government is to
create the standard of Business and regulations to control the business

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operation of Woolworth Supermarket. Government is a threat to this
company. This organisation has to follow the rules and regulation set
by the government.
Investors Investors as an internal stakeholder can influence the business of
Woolworth Supermarket. The role of the investor is to support the
business operation of this company. By providing a seamless flow of
money this stakeholder plays a significant role (Jolanta, 2015).
Investors of this company are strength. They ensure constant cash flow
to maintain successful business operation.
Board members As an internal stakeholder, board members have the responsibility to
ensure the smooth operation and funding in the business. The decision-
making process of Woolworth Supermarket is controlled by the board
members. Board members have the reasonability to assist the higher-
level manager of this company. Board members of this company are
strength for this company. They take major decisions, which is
followed by the company.
SWOT analysis of the Woolworth Supermarket’s stakeholder:
Strengths  Employees of this organisation is a strength for this organisation due
to their skill, and efficiency.
 Suppliers of this supermarket are the strength of this supermarket.
The suppliers of this organisation deliver the best quality raw
materials to this organisation.

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 Investors of this super chain market are strength. They maintain the
constant cash flow to ensure smooth business operation.
 Board members of this organisation are strength for the Woolworth
super chain market. With their guidance, this organisation is
achieving shared objectives.
Weaknesses  The community of this organisation is a weakness for this
organisation. To maintain its reputation, the authority of the
supermarket has to invest a huge amount of money for the
improvement of the community.
Opportunities  Customer of this supermarket is an opportunity for this organisation
to boost its market share and profit.
Threats  The government can be a threat to this supermarket chain. To avoid
any kind of disrupt from the government, this super chain market has
to follow the rules and regulation.
 Competitors of this organisation like Coles Supermarket, ALDI, the
distributors and others are a threat to the Woolworth supermarket.
Identification of the nature and degree of the main stakeholder’s interest and
implications of conflicting interests:
In this part, the nature and degree of stakeholder’s interest will be identified. However,
the degree of their interests or the extent of the stakeholder's interest is different. The interest of
employees of this organisation is the job security of them which is related to the organisational
performance. If the organisation is successful to maintain its desired organisational performance

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then the job security of the employee will be increased (Chenchehene, & Mensah, 2015). So it
can be said that the nature and degree of employee’s interest are related to the business
performance and organisational performance of Woolworth Supermarket. However, there is a
conflict of interest. Employees of this company are interested in job security and increase in
salary. On the other hand, this organisation is interested to enhance profit by providing low
salary to the employees of Woolworth Supermarket.
The interest of customers as a stakeholder is moderate. There are certain reasons for
which the interest of customers of Woolworth Supermarket is high. Customers of this
organisation demand a high-quality product at a low cost. The quality and utility of those
products are prioritised by the customers. If this company is successful to fulfil the desired value
of the customer then it can be said that Woolworth Supermarket can maintain its successful
business (Naidoo & Gasparatos 2018). So it can be said that customers as a stakeholder have a
high interest in the business of Woolworth Supermarket. However, there is a conflict of interest.
The customer wants a high quality of product at a low cost. On the other hand, the officials of
Woolworth Supermarket is interested to increase profit margin by providing a low-quality
product at a high cost.
Suppliers of this organisation have a modest interest in the business of Woolworth
Supermarket. There are several other business organisations, who purchase raw materials,
components from these suppliers. However constant profitability and successful business
performance can fulfil the interest of the supplier. If this organisation is successful to maintain its
business appropriately then the relationship between this organisation and suppliers will sustain
for a long time. However, there is a conflict of interest. Suppliers of this organisation are
interested to provide low quality raw materials and components at a high price for their extra

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benefit (Ayuso et al. 2014). The Woolworth Supermarket is interested to purchase high-quality
raw material and component as a low cost.
The interest of the community on the business of Woolworth Supermarket is moderate.
The interest of the community is constant sustainable development in the community areas. It
will help this organisation to create a positive reputation in the community. To fulfil the interest
of communities this organisation is involved in community upliftment initiatives in the areas
within this organisation operate. However, there is a conflict of interest. Community is interested
to get the support from this company. On the other hand, this organisation is interested to curtail
the cost. That is the reason this organisation is interested to curtail its involvement in the
community development projects.
The interest of the competitors of the group is low. However, it is not possible for a
business organisation to the interest of the competitor. The competitors of Woolworth
Supermarket are interested to enhance their market share by reducing the market share of
Woolworth Supermarket. It can be said that it is not possible for the management team of the
group to fulfil the interest of competitors. However, there is a conflict of interest. Competitors
are interested to enhance their business by reducing the business of Woolworth Supermarket. On
the other hand, Woolworth Supermarket is interested to expand its business as much as possible
by reducing the market of competitors.
The interest of government related to the ethical business practices of this organisation.
The government has the responsibility to monitor whether Woolworth Supermarket is following
ethical principles in the business operation or not. To fulfil the interest of the government,
Woolworth Supermarket has to follow the rules and regulations set by the government. So it can
be said that the interest of the government will be moderate for Woolworth Supermarket.

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However, there is a conflict of interest. The government is interested to force this company to
follow ethical business practice. On the other hand, this organisation is interested to curtail its
business expenditure as much as possible. To do that this company has to follow the unethical
business practice.
The interest of investors is always high and is connected to the profitability of
Woolworth Supermarket. If this organisation is successful to increase the profit margin of the
business as much as possible then the investors will get the maximum return of their investment
(Campbell & Park, 2017). So it can be said that by increasing the profit margin, Woolworth
Supermarket can fulfil the interest of investors. However, there is a conflict of interest. Investors
are interested to receive the maximum return of their investment. On the other hand, this
organisation is interested to utilise the profit as much as possible.
In terms of the board member, it can be said that the interest of this stakeholder is high.
Board members are interested in the performance of this organisation. If this business
organisation is successful to continue its positive and favourable business performance then it
will increase the stability of the board members. (Johnson-Cramer, Berman & Post, 2017).
However, there is a conflict of interest. Board members are interested in the stability of their
position. On the other hand, this organisation is interested to prioritise the efficient and effective
board members.
Identification of the level of the main stakeholder’s influence:
At the end of this paragraph, there is a matrix which is to identify the different
stakeholders having a different level of influence on Woolworth Supermarket. Board members
and investors of this organisation have a high level of influence on this organisation (Slabá,
2016). Both the investors and board members have a role in the decision-making process. That is

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the reason these two stakeholders have a high interest in this organisation. These two
stakeholders enjoy the maximum influence in the business of Woolworth Supermarket.
Employees, customers and government have moderate influence in the business of Woolworth
Supermarket. These three stakeholders do not have the power to control the decision-making
process. However, these three stakeholders have moderate influence in the business of
Woolworth Supermarket. Suppliers, competitors and community have the lowest influence on
the business of Woolworth Supermarket. These three groups are not directly associated with the
business operation of Woolworth Supermarket. That is the reason these three stakeholders have
the least influence on the business of this organisation.
Stakeholders High Moderate Low
Employees
Board members
Investors
Customers
Suppliers
Government
Competitors
Community

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Stakeholder matrix:
In this part, the stakeholder matric will be provided. This matrix will identify the level of
influence of the stakeholders of the Woolworth Supermarket. The management team of
Woolworth Supermarket has to keep satisfied employees, customers and government. The
authority of this company has to manage the curiosity of the investors and board members. This
organisation has to monitor the suppliers, community and competitors. The officials of
Woolworth Supermarket has to keep informed the customers and government.

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Identification of stakeholder dissimilarities and analysis of the differences in
stakeholder interests and influences:
In this part, the stakeholder analysis of the automobile industry can be done. Volkswagen
is a leading business organisation of the automobile industry. The stakeholder analysis of this
company will be done in this part. Stakeholder of this organisation are employees, government,
customers, suppliers, NGOs, employees, investors, and Board of members. To do its successful
business, this organisation has to fulfil the interest of every stakeholder. This organisation
understands the needs, wants, expectations and values of the stakeholders and interested to fulfil
the stakeholder's interests. To fulfil the interest of customers this organisation offers the best
quality product for the consumer. To fulfil the interest of government organisation follows rules
and regulations set by the government. By solving environment-related rules this organisation is
fulfilling the interest of NGOs. Employees of this organisation are getting several benefits from
the Volkswagen Company. So it can be said that this company is interested to fulfil the needs of
employees. By offering a sustainable off for this organisation fulfils the interest of suppliers. The
board of members and investors play a significant role in the decision-making procedure of the
Volkswagen Company. The authority of the Volkswagen Company fulfils the interest of
investors and the board of members. Woolworth Supermarket does its business in the retail
industry. On the other hand, Volkswagen does its business in the automobile industry. There are
certain differences between the stakeholders and the interest of the stakeholders.
Conclusion:
Thus, this report includes that the authority of Woolworth Supermarket should address
both internal and external stakeholders. Every stakeholder of this company has a different level
of contributions. That is the reason this organisation has to fulfil the interest of stakeholder. It

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can help this organisation to maintain its smooth, successful and positive business operation. By
addressing the interest of employees, Board members, investors, customers, suppliers,
government, competitors, and community this organisation can manage its business in an
intensely competitive market.

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References:
Ayuso, S., Rodríguez, M. A., García-Castro, R., & Ariño, M. A. (2014). Maximizing
stakeholders’ interests: An empirical analysis of the stakeholder approach to corporate
governance. Business & society, 53(3), 414-439.
Campbell, J. M., & Park, J. (2017). Extending the resource-based view: Effects of strategic
orientation toward community on small business performance. Journal of Retailing and
Consumer Services, 34, 302-308.
Chenchehene, J., & Mensah, K. (2015). Dividend policy and its effects on shareholders wealth:
Evidence from UK retail industry. International Journal of Liberal Arts and Social
Science, 3(2), 52-64.
Hvass, K. K. (2014). Post-retail responsibility of garments–a fashion industry
perspective. Journal of Fashion Marketing and Management.
Johnson-Cramer, M. E., Berman, S. L., & Post, J. E. (2017). Re-examining the concept of
‘stakeholder management’. In Unfolding Stakeholder Thinking 2 (pp. 145-161). Routledge.
Jolanta, M. A. J. (2015). Diversity management’s stakeholders and stakeholders management.
In Proceedings of the 9th International Management Conference" Management and
Innovation For Competitive Advantage", Bucharest, Romania (pp. 780-793).
Kent, P., & Zunker, T. (2017). A stakeholder analysis of employee disclosures in annual
reports. Accounting & Finance, 57(2), 533-563.

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Naidoo, M., & Gasparatos, A. (2018). Corporate Environmental Sustainability in the retail
sector: Drivers, strategies and performance measurement. Journal of Cleaner
Production, 203, 125-142.
Nejad, M. G., Apanasevic, T., Markendahl, J., & Arvidsson, N. (2016). Stakeholders'
expectations of mobile payment in retail: lessons from Sweden. International Journal of Bank
Marketing.
Slabá, M. (2016). Stakeholder profile and stakeholder mapping of SMEs. Littera Scripta, 9(1),
123-139.
Sutton-Brady, C., Kamvounias, P., & Taylor, T. (2015). A model of supplier–retailer power
asymmetry in the Australian retail industry. Industrial marketing management, 51, 122-130.
Vijayan, G., Kamarulzaman, N. H., Mohamed, Z. A., & Abdullah, A. M. (2014). Sustainability
in food retail industry through reverse logistics. International Journal of Supply Chain
Management, 3(2), 11-23.
Woolworthsgroup.com.au. (2018). 2018 Annual Report-Our impact. Retrieved 5 April 2020,
from https://www.woolworthsgroup.com.au/icms_docs/195396_annual-report-2018.pdf
Woolworthsgroup.com.au. (2020). Strategy and objectives - Woolworths Group. Retrieved 5
April 2020, from https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-
and-objectives/

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