Business Management Report: Woolworths Stakeholder and PESTEL Analysis

This report provides a comprehensive analysis of Woolworths, an Australian grocery chain, examining its business operations, size, geographical presence, and core products. The report identifies and assesses both the external and internal stakeholders of Woolworths, including customers, suppliers, government, shareholders, employees, owners, managers, and the board of directors. Furthermore, the report conducts a PESTEL analysis of the Australian market, evaluating the political, economic, social, technological, legal, and environmental factors influencing Woolworths' business. The analysis highlights potential threats and opportunities for the company within the Australian context, including the impact of environmental regulations and changing consumer preferences. The report utilizes credible sources to support its findings and provides a detailed overview of Woolworths' strategic environment.

Running head: BUSINESS MANAGEMENT
Business Management
Name of the Student
Name of the University
Author note

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Table of Contents
Assessment 2...................................................................................................................................2
Topic 1.........................................................................................................................................2
Topic 2.........................................................................................................................................3
Topic 3.........................................................................................................................................4
Topic 4.........................................................................................................................................6
References........................................................................................................................................8

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Assessment 2
Topic 1
Woolworths is one of the Australian grocery store chains which was founded in the year
1924 which has their presence in more than 80% of the Australian market. The company is
headquartered in Bella Vista, New South Wales, Australia and the number of locations in which
the company is having their presence is 995 (Woolworths.com.au, 2019). Woolworths relies on
more than 115000 members in the distribution centers, stores along with support offices which is
helpful in providing the customers with superior range of goods and services.
The revenue of the company has increased to $56.726 billion till the year 2018 which has
helped Woolworths in achieving the highest position in the competitive business environment.
The different geographical locations wherein Woolworths has their presence includes Australia
and New Zealand wherein Woolworths traded as Countdown supermarket and they have been
recognized as one of the most innovative retailers wherein consumers are looking for simple
techniques to shop the different products (Woolworths.com.au, 2019).
The major or the core products which are being sold by Woolworths wherein they sell
groceries such as vegetables, meat, fruit along with packaged products, moreover there is sell of
magazines, health and safety beauty products as well as stationary items. Furthermore, the other
core delivery service known as HomeShop wherein there is click and collect and home delivery
option which will be beneficial in improving the overall customer service. Woolworths is
operating in the retail industry wherein there are few other competitors which are present in the
market. As a retailer, Woolworths currently operates in more than 1000 stores across Australia,
which are 976 supermarkets along with 19 convenience stores which are carrying the similar

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logo of Woolworths. Lastly, Woolworths have different private label brands such as Woolworths
Gold, fresh, Homebrand along with Wholefood market in the entire Australian market in an
appropriate manner.
Topic 2
External Stakeholders of Woolworths
Customers
The customers are the most precious aspects of Woolworths Company wherein the
company needs to satisfy the needs of the requirements of the customers. There are more than
1500 stores and the effort of Woolworths is to satisfy and value the sustainability related
practices of the customers in an effortless manner (Schaltegger, Lüdeke-Freund & Hansen,
2016).
Suppliers
The suppliers are the integral part of the company wherein it is inclusive of the fact that
they source the different goods along with use the different services in a sustainable manner
which will be beneficial for the success of the organization in comparison to the other
competitors of the company (Morris & Metternicht, 2016).
Government
The government of Australia and New Zealand provides a legal framework along with
the different services which are required to be needed for the market economy which will be
helpful for them in operating in an efficient manner (Matuleviciene & Stravinskiene, 2015).

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Moreover, the government establishes legal rules of the game wherein they control relationship
among the businesses, resource suppliers and consumers.
Shareholders
Furthermore, the different shareholders of the company are helpful in making the
different financial investments in the corporation that helps in the overall entitlement that will be
beneficial for the growth of the company appropriately (Kolk, 2016). The shareholders are
considered as the owners of the business who can typically affect the different operations of the
business and gain competitive advantage in the market as well.
Society
Woolworths operates in Australia and New Zealand and the main role of the community
and the society is to distribute along with produce the different kinds of goods and services
which will be beneficial in satisfying the demands of the customers through participating in order
to save the society (Imperatori & Ruta, 2015). The corporate social responsibility related
activities can be helpful in improving the welfare of the company and society.
Topic 3
Internal Stakeholders of Woolworths
Employees
They are considered to be the primary stakeholders of the company and they play a
defining role in tactics, strategy along with the operations which is carried out by Woolworths.
Woolworths employ over 46000 employees in the entire global operations and they help in

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analyzing the different kinds of vision and mission of the company in an appropriate manner
(Hueske, Endrikat & Guenther, 2015).
Owners
These are the different individuals who have significant shares in Woolworths and they
are the ones who are liable for the different impacts the company has and have significant role in
the strategy as well (Hueske & Guenther, 2015). The owners have implemented the self check
payout system in the organization which is beneficial for the customers in improving the overall
satisfaction among the customers and improve the overall brand image of the company.
Managers
They are the ones who play substantial role in determining the overall strategy of the
company in an appropriate manner. The different managers are accountable for the different
decisions which are made in the company and are helpful in implementing the strategy
appropriately. Furthermore, the managers of the company try to become more adjusting towards
understanding the needs of customers and meeting their requirements in an appropriate manner.
Board of Directors
The board of directors plays a major role in Woolworths as they try to improve the
overall operations of the company in a positive manner. The main aim of BOD is to analyze that
the prosperity of the company through proper collection directing the affairs of the company
appropriately (Derakhshan, Turner & Mancini, 2019).
Financial Sponsors

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These are the ones who help Woolworths in receiving hedge funds along with private
equity funds which play a major role in order to improve the overall growth of the company
appropriately (Ansoff et al., 2018). There is inclusion of mezzanine funds which are issued by
the financial sponsors to gain competitive advantage in comparison to the other competitors.
Topic 4
PESTEL Analysis of Australia
Political Aspects- There is huge political stability in the Australian economy which will
be beneficial for Woolworths to operate in such environment. Australia is the safe destination for
making investments and which is progressive and open in nature (Noe et al., 2017). Furthermore,
Australia has open and efficient legal framework wherein level of corruption is low which will
be successful for Woolworths.
Economic Aspects- The standard of living of the individuals is low in Australia which
can be affecting the growth of Woolworths. However, the exchange rates of currency against
dollars or sterling are favorable in Australia which will be beneficial for the overall growth of
Woolworths (Noe et al., 2017).
Social Factors- The main aspect in Australia is that main emphasis is provided to higher
education of the individuals which improves the overall social status and wealth of the company.
It will be one of the most beneficial opportunities which can be adopted by Woolworths in order
to improve the overall efficiency of the company (Noe et al., 2017).
Technological Factors- There is few issues related to the technological advancement
which can affect growth of Woolworths negatively. The government funding have been more

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than 55% of the different research and development related activities which can cause huge
negative impact on business.
Legal Factors- There is inclusion of different contractual issues which can create
negative impact on the Woolworths business (Noe et al., 2017). The different compliance with
the government regulations and sanctions are affecting growth of company negatively.
Environmental Factors- There is weather and climate change in Australia that can create
impact on the overall efficiency of business operations of Woolworths. The growing desire to
protect environment is creating different sustainability rules and regulations that can impact
growth of Woolworths.
Threats of Environment on Woolworths
The increased environment rules and regulations in the Australian economy is affecting
growth of the company negatively (Ansoff et al., 2018). Moreover, the focus of the individuals
are more on health conscious and which is making them more conscious to buy the different
products.

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References
Ansoff, H. I., Kipley, D., Lewis, A. O., Helm-Stevens, R., & Ansoff, R. (2018). Implanting
strategic management. Springer.
Derakhshan, R., Turner, R., & Mancini, M. (2019). Project governance and stakeholders: a
literature review. International Journal of Project Management, 37(1), 98-116.
Hueske, A. K., & Guenther, E. (2015). What hampers innovation? External stakeholders, the
organization, groups and individuals: a systematic review of empirical barrier
research. Management Review Quarterly, 65(2), 113-148.
Hueske, A. K., Endrikat, J., & Guenther, E. (2015). External environment, the innovating
organization, and its individuals: A multilevel model for identifying innovation barriers
accounting for social uncertainties. Journal of Engineering and Technology
Management, 35, 45-70.
Imperatori, B., & Ruta, D. C. (2015). Designing a social enterprise: Organization configuration
and social stakeholders’ work involvement. Social Enterprise Journal, 11(3), 321-346.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1), 23-
34.
Matuleviciene, M., & Stravinskiene, J. (2015). The importance of stakeholders for corporate
reputation. Engineering Economics, 26(1), 75-83.

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Morris, A., & Metternicht, G. (2016). Assessing effectiveness of WEEE management policy in
Australia. Journal of environmental management, 181, 218-230.
Noe, R. A., Hollenbeck, J. R., Gerhart, B., & Wright, P. M. (2017). Human resource
management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Schaltegger, S., Hansen, E. G., & Lüdeke-Freund, F. (2016). Business models for sustainability:
Origins, present research, and future avenues.
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2016). Business models for sustainability:
A co-evolutionary analysis of sustainable entrepreneurship, innovation, and
transformation. Organization & Environment, 29(3), 264-289.
Woolworths.com.au (2019) Woolworths Supermarket - Buy Groceries Online (onoine) Retrieved
from https://www.woolworths.com.au/ [Accessed on 30th April 2019]