Business Plan Evaluation: Woolworths, Blueprints Pty Ltd Comparison

This report offers a detailed analysis of Woolworths' business plan, focusing on the macro-environmental factors impacting its operations. It begins with an executive summary and introduction, followed by an overview of Woolworths as a global supermarket chain. The core of the report involves a PESTEL analysis, examining the political, economic, social, technological, environmental, and legal factors influencing Woolworths' business strategy. The report also includes an analysis of the Blueprints Pty Ltd Company's business plan and a comparative analysis of the two companies. The study concludes with recommendations based on the findings, providing insights into how Woolworths can leverage its strengths and address its weaknesses. The report examines the impact of government regulations, inflation rates, customer health concerns, technological advancements, environmental sustainability, and employment laws on the company's performance. The analysis highlights both opportunities and threats, offering a comprehensive view of the challenges and prospects facing Woolworths in the Australian market.

Running head: BUSINESS PLAN EVALUATION
Business Plan Evaluation
Name of the Student:
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1BUSINESS PLAN EVALUATION
EXECUTIVE SUMMARY
The primary goal of this paper to analyse the macro-environmental factors impacting the
work process of an Australian supermarket company named Woolworths. To bring light to
the analysis of the macro environmental factors the study determines the PESTEL analysis of
the concerned retail chain that strongly determines the prospects of strengths and
opportunities for the future of the company. The company with the help of implementing the
same in its business structure can gain a compelling competitive advantage in the paradigm of
the market. In this connection, the study also examines the business plan of the Blueprints Pty
Ltd Company of Australia to create an understanding of how a business plan in a company
works.

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Table of Contents
Introduction................................................................................................................................3
Overview of Company...............................................................................................................3
Macro Environmental factors - PESTEL analysis.....................................................................3
Blueprints Pty Ltd Company......................................................................................................9
SWOT Analysis.........................................................................................................................9
Comparison of the two companies...........................................................................................10
Recommendations....................................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
The presented report is based on evaluating the entrepreneurship plan of a
supermarket company Woolworths, Australia (Xu, Gao, and Hammond, 2017 pp. 155). The
report critically focuses on examining the macro-environmental factors that may affect the
business plan of the concerned company. In this connection, the study analyses the depth of
the company in details and examines the current external environmental factors that create a
massive influence in the strategical plan process of Woolworth’s retail chain. The study then
compares the business plan of Woolworths with that of Blueprints Pty Ltd Company. The
details analysed by the particular report are explained as below.
Overview of the Company
Woolworths has debuted in the year of 1924 dated 5th December in Australia (Haynes,
2017, pp. 10). The concerned company is a global supermarket retain chain store owned by
Woolworths Limited. The company is examined to account across 80% of the Australian
grocery market. The company at current is operating 1000 of its store alone in Australia
(Grimmer, 2019, pp. 18). Woolworths operates its store both in physical as well as online
market. The business plan set by the concerned company was established with the
examination of PESTEL analysis.
Macro Environmental factors - PESTEL analysis
As implied by Lancaster and Massingham (2017, pp. 36), PESTEL factors of the
macro-environmental analysis is a tool used to measure and assess market sectors and
opportunities for any product or service. In this connection, as examined by the study that
Woolworths operates itself in a dynamic environment and thus the factors of the external
environment creates a massive impact on the company. The same is explained as below.

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Political factors
As stated by Gilpin (2016, pp. 210), political considerations are related to the level
and nature of intervention of both the local and international government in the economic
environment of any business entity. The political factors influencing Woolworths are
specified as below.
The significance of local government
Unlike other states and countries, the role of local government in Australia
implements strict laws and orders in the market structure of the country (Fukuyama, 2017,
pp. 110). The concerned company in this connection is liable to effectively follow the set of
rules to strive in the market.
Influence of NGO’s and other protest groups
The non-government organisations, pressure groups and other movements
implemented by the activist groups engage into critical creation of policymaking strategies
for the country (Vracheva, Judge and Madden, 2016, pp. 380). To gain and contribute to the
community as well as the corporate goals and gain advantage from the same, Woolworths is
liable to follow the set of rules implemented by the concerned group.
Regulatory Practices
Researchers examined that over the past few years the Australian government has
changed its orders concerning the business market and specifically in the business sector
concerning the retail chain (Crane and Matten, 2016 pp. 205). In this case, the concerned
retail company is liable to manage the diversified norms and regulations of the market the
company works.
Economic factors

5BUSINESS PLAN EVALUATION
As opined by Epstein (2018, pp. 110), the commercial elements of the external
business environment are those which impacts the financial performance of both a business
entity and country as a whole. The economic factors creating influence on Woolworths can
be specified as below.
Workforce
The skill and talent level of the individual concerning the service sector is examined
to be on a moderate to a high level in terms of Australia (Lee, Hallak and Sardeshmukh,
2016, pp. 222). This turns out to be an opportunity for Woolworths to gain the advantage of
the labour workforce for their retail chain and also improve their service process in Australia.
Inflation rate
The ease of the liquidity system in the Australian market after the recession in the
year of 2018 has led to an increased rate of inflation in the economic condition of the country
(Bernanke et al., 2018). Therefore, it becomes a threat to the concerned retail chain industry
because in the connection of this the price of the goods also increased and impact the revenue
earning of the business.
Infrastructure and economic performance of Australia
As implied by Freestone, Randolph and Wheeler, (2017, pp. 78), the foundation of
business environment Australia has developed with recognisable changes because of the core
investment of the Australian government. This evidence proves that the overall economic
performance of the country is expected to grow in the upcoming 5-10 years. In this
connection, Woolworths can take significant advantage to access the opportunity of improved
infrastructure and therefore increase their customer base as well as the disposable income.
This, in turn, will benefit both the economy of the company and the country as a whole.

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Social factors
According to Cooter and Ulen (2016, pp. 56), social factors are those part of the
macro environmental analysis that helps a business entity to understand the taste and
preferences of its potential customer concerning the goods and services the company is
offering. The social factors creating influence on the retail chain of Woolworths can be
explained as below.
Health and safety of the customers
With days passing and globalisation increasing in the environment, the behaviour of
customers towards their health is getting strict (Freestone, Randolph, and Wheeler, 2017, pp.
78). In this case, the concerned company needs to maintain its process of work into satisfying
the safety needs of its customers and not neglecting the same. Ineffectiveness of the same
may lead to severe loss to the company as the cost of failure of people safety is too high in
Australia.
Education standard of society
As opined by Viswanath and Kim, (2016, pp. 99), the education standard of people in
Australia is overall on a high range. In this context, the concerned retail industry can leverage
itself to recruit the best skilled and talented people for achieving their goals and objectives.
Technological factor
As implied by Buckley and Casson, (2016, pp. 22), various technical elements create
a significant impact on the competitive advantage and paradigm earned by a business entity.
Everything starting from the establishment of a business organisation to bringing changes in
the strategic business plan requires technological modifications in the same. The technical
factors influencing Woolworths are specified as below.

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The enhancement of internet technology
Any business entity needs to keep pace with improvement of innovative technologies
for the smooth user interface of internet technologies that give them a better experience of
online shopping to the customers (Schwab, 2017, pp. 45). As examined in the earlier section
of the study that Woolworth's deals into online business as well, in this context it can be of
great competency for the company to adapt the potentiality of 5G to transform its customer
interface in the retail industry.
The technological innovation strategies used by competitors
The innovation and technical approach implemented by the potential competitors can
be of great use to the concerned retail chain. This is examined as both a threat and
opportunity to Woolworths. Analysing the competitor strategy may help the retail industry
make required changes in their plans and processes and also may affect its customer base as
there is a risk for the customers to shift from one company to another (Grayson and Hodges,
2017, pp. 101).
Environmental factors
As opined by Clift et al., (2017, pp. 279), sustainment of the ecological factors are
becoming a mandatory base for the business entities. The business organisation is liable to
adhere to the standards of environmental needs. The environmental factors creating an impact
on Woolworths are examined below.
Process of Recycling
The method of recycling in terms of Australia has become more of a law than just a
need (Isaak, 2016 pp. 71). In this connection, the concerned retail industry needs to

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implement its strategic plans in the process that it can adhere to the rules and regulations of
the same.
Weather and climate change
The extreme changes in the weather condition and the seasonal climatic changes
adhere to increase the cost of production and operation management of any business and
likely Woolworths also (Ali, Nagalingam and Gurd, 2017, pp. 1248). In this context, to
eliminate the risk of the same, the industry should focus on implementing flexible supply
chain management.
Intervention of agencies
Numerous environmental agencies are fostered into regular activities of scrutinisation
to check whether the business entities are adhering to the laws set by the government for
protecting the ecological balance (Hopkins, 2016, pp. 89). Few of those are related to
decreases in the emission of carbon gases, safe dumping of harmful wastages and effective
water management. This, in turn, leads to an increase in the cost of production in the
Woolworths retail chain.
Legal factors
According to the viewpoint of Lin (2019, pp. 541), the statutory factors foster a
crucial role in the growth of a grocery industry. The legal factors to be taken into
consideration by the concerned retail chain are analysed as below.
Employment law
The law of undertaking the process of employment adheres a strict set of rules and
regulations (Hanrahan, 2018, pp. 78). Woolworths needs to consider all the set of rules to
continue its business under legal proceedings.

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Laws to health and safety
The requirement to follow the health and safety norms for the benefits of the customer
is a crucial part of every business (Groves et al., 2016, pp. 54). As determined by the study
that Woolworths deals with the daily usage and food products that are consumed by the
people regularly, the company needs to follow the same to avoid legal consequences.
Business and Environment Laws
The concerned retail industry needs to implement and follow the strict laws of
business and environmental needs that are enforced by the Australian government. These
laws are consistent with the WTO and the EU as well. The exception to this may lead to a
high level penalty and termination of the business entity (Kaufmann, 2017, pp. 90).
In contrast with the above mentioned business plan of Woolworths Australia, the
business plan Blueprints Pty Ltd Company of Australia is analysed as below.
Blueprints Pty Ltd Company
The Blueprints Pty Ltd Company’s establishment was based on debuting a small
private company (Horwitch, 2013, pp. 45). The company specialises in providing consulting
services to the SMEs. This company focuses on preparing business plans for other managers
and support agencies. The business was self-funded and was operated with a no borrowing
policy. The primary mission statement of the company is to offer planning services, advanced
to the managers of SMEs and business education (training) programs to different small and
medium firms. The nature of the concerned company was analysed with the help of SWOT
analysis.

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SWOT Analysis
As opined by Gurel and Tat (2017, pp. 11), SWOT Analysis is a tool that helps in
analysing the major strengths and opportunities and dangerous threats and weaknesses of a
business organisation. In this connection, the SWOT analysis of Blueprints is explained as
below.
Strength
 The substantial services of planning and training provided by the company are linked
with advisory experiences.
Weakness
 Only one person operates the company.
 Minimised track record in the external market of consultancies.
Opportunities
 Expand the training programs externally.
 Providing better placement opportunities.
Threats
 Threat and entry of competitors
 Sensitivity in the commercial break down of the SMEs.
Based on the above illustrations, it is examined that the business plan of Blueprints is
to target small and medium organisations that include some 10-100 employees, the
metropolitan area of Sydney and only an approximate of 200,000 organisations in total. In
this connection, the study tends to compare the business plans of both the companies –
Woolworths and Blueprints Pty Ltd Company.

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Comparison of the two companies
The same is explained with the help of the given table.
Woolworths Blueprints Pty Ltd Company
Operates globally. Operates in Sydney alone.
A multinational supermarket dealing with
grocery and several other products
concerning health and daily needs of people.
Deals in providing business plans to the
SMEs.
Has separate stores and retail chain sectors
in different parts of the globe.
Operates only with one store.
Has several numbers of employees and
managers working at a different level of the
company.
Operated by only one person.
Strong financial sustainability Weak financial sustainability.
Gains a higher market paradigm and
competitive advantage.
Lacks behind incompetency and
capabilities.
Recommendations
As the study critically examines the weakness and lacks in the Blueprints Company as
compared to Woolworths, the research tends to state that there is a high area of opportunities
for the company to sustain and spread in the market. Based on these shreds of evidence and
examination of the above report, the study tends to provide some strategic recommendations
to the Blueprints Pty Ltd Company, for its future benefits and retention.
 Improving the department by figuring out the weak points in the service offered.