HRMT20028 - Organisational Change Management Report: Woolworths

This report provides a comprehensive analysis of Woolworths Supermarkets' change management strategies. It begins with an executive summary outlining the key changes and reforms implemented by Woolworths, along with proposed future strategies. The report then delves into the factors driving...Read More

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Title: Change Management
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Executive Summary
Woolworth is a leading retail brand in Australia. The company has more than ten million
customers and has been advocating the concept of change management. This is how the
company is promoting sustainable growth in all its operations. This report summarizes key
changes and reforms that have been implemented by Woolworths Supermarkets. The changes
and strategies that have proposed for future implementation have been discussed in detail. Brief
discussions of those factors that are driving the need for change have been given.
The human resource development strategies that have been implemented by Woolworths
Supermarkets to overcome any resistance to change have been explained. Analysis of how
Woolworths Supermarkets has aligned its future strategies to manage change and innovation in a
global business environment has been given. The Australian Retail sector has been undergoing
through changes and personal insights have been given and this is followed by a conclusion

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Contents
Introduction......................................................................................................................................2
Analysis...........................................................................................................................................3
a) Outline Key Changes and Reforms that have been implemented by Woolworths
Supermarkets. Identify also those Changes and Strategies That Have Proposed for Future
Implementation............................................................................................................................3
b) Identify and Discuss those Factors that are Driving the Need for Change..............................5
c) Identify Human Resource Development Strategies that have been Implemented and/or
Proposed by Woolworths Supermarkets to Overcome any Resistance to Change......................6
d) Analyze how Woolworths Supermarkets has aligned its future strategies to manage change
and innovation in a global business environment?......................................................................8
e) Reflect on your own Personal Learnings and Insights as a Result of Analyzing the
Woolworths Supermarkets Case Study?......................................................................................9
Conclusion.....................................................................................................................................10
Recommendations..........................................................................................................................10
References......................................................................................................................................11

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Introduction
Woolworths Limited is an owner of retail stores that sell liquor, fuel, and food in New
Zealand and Australia. The company also has its own operations such as dining, bars,
accommodations, gaming and venue hire. The company has its headquarters in Australia. The
key changes and reforms that have been implemented through Woolworth’s supermarket and
strategies for future implementation have been discussed. The factors which are driving the need
for change along with human resource development strategies have been explained. How
Woolworth’s supermarkets have aligned the future strategies and innovation in the global
business market has been discussed. A reflection of personal learning and insights has been
given.
Analysis
a) Outline Key Changes and Reforms that have been implemented by Woolworths
Supermarkets. Identify also those Changes and Strategies That Have Proposed for
Future Implementation.
The key changes and reforms which have been implemented through Woolworths focus on
healthy and protecting competitive markets. This is done for the benefit of customers. Few
priorities are as follows-
1. Retail regulations and laws must be customer-centric and barriers to the competition must
be eradicated for encouraging economic productivity and growth. This needs to be done
for the benefits of customers (Lindberg, 2013).
2. The intervention from government authorities must be restrained and consumers can
benefit a lot from the competitive conduct.

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3. The market analysts need to follow fast-changing business models and customer
expectations.
4. Regulations and rules must enable Australian businesses for becoming internationally
competitive and best practices must be adopted (Lehmann, 2017).
The Changes and Strategies That Have Proposed for Future Implementation-
1. Create Strong customer association-The customer has been collected through
Woolworth Executives which continues to take all the business decisions. The
Woolworths Company is a customer-obsessed and has been continuously building loyal
relationships with its customers. The company has been trying hard to understand its
customers' requirements. The customers are provided with membership cards and
personalize services are being provided to consumers (Shaw, 2015).
2. The Prominent Fashion Retailer-The The Woolworths company limited has been
differentiating itself by defining its target segments. The company is leading towards
innovation through a continuous focus on the fabric. The prime motto is to provide
comfort to the customers. The company has been inspiring its customers through timeless
classic with different forms of purchase patterns and technology.
3. Drive Synergies across the Group-The Woolworths has been effectively driving
efficiencies. The business operations are growing in the southern hemisphere especially
within Australia. The absolute focus of the company is on cost control and adding to
profitability. The operation model has been redefined and enhancement of processes. The
business is addressing the challenges through the optimization of supply chains and
investments in distribution capabilities for supporting virtual business (Wooding, 2013).

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4. To Become a Giant Food Business-The Woolworths company is providing the
customers with superior quality and innovative food at a low cost. There is an absolute
focus over offering the customers with unbeatable quality of food. The customers are
offered a wide range of food variations on the menu. This is how the company is able to
meet customer needs.
b) Identify and Discuss those Factors that are Driving the Need for Change.
The company-Woolworths are focused towards encouraging the national reform. This is how
the business will drive economic growth. With relevance to the above statement, the factors are
discussed below-
1. Not protecting the individual competitors-The Australian market needs to ensure there
should be a competition framework which can be internationally competitive.
2. Unnecessary restrictions by government-In order to offer the customers with high-
quality food and varied menu, it is desirable that retailers must continuously innovate.
The company believes in providing food at low prices (Liu, 2015).
3. Elimination of Costs-The The Australian Government needs to harmonize the
inconsistencies within laws and licensing rules.
4. Competition Policy-The competition laws within the Australian Framework must be
enabled to protect and enhance competitive markets. This has to be done for customers.
This can be done through the implementation of low prices. The retail food industry is
driven through competition by small players which require security and growth by the
government authorities.
5. Retail Prices-There are certain regulatory constraints on competition and retail prices.
This is adversely affecting the economy and customers. The government needs to ensure

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fair trading and promoting competition. This is also accompanied by enacting consumer
protection laws (Cai & Zhang, 2017).
The Woolworths Company believes that the government should impose limited changes in its
competition framework. For instance-the regulatory authorities need to review the predatory
pricing system within the economy. There are certain changes that are required to be done within
the Consumer and Competition Act. The present provisions are adapted to address the issues
which are raised by small retailers. The merger provisions need to operate more efficiently and
informal merger process needs to be reviewed. The present business is undergoing massive
changes with the launch of digital framework. The small and big food business houses need to
address the issues concerned with digital framework and provide the customers with a better
virtual experience. The Government needs to enforce the digital business framework within its
regulatory policy. The government needs to ensure a clear and concise code of conduct (Ward,
2017).
c) Identify Human Resource Development Strategies that have been Implemented
and/or Proposed by Woolworths Supermarkets to Overcome any Resistance to
Change.
Changes in organizational structure and operational methods of the Woolworths Company
are necessary for the purpose of business sustainability. The Human resource development
strategies which are required to be implemented for overcoming resistance to change are
discussed below-
1. Change is one of the critical aspects which must be undertaken to respond to the dynamic
factors that can transform the present necessities. The rigid hierarchies and inflexible rules

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and impersonal management are unable to respond to changing the environment. From this
point of view, organizational change is required for internal and external reasons (Alexander,
2017).
2. The theory of complexity and system theory has been discussed in detail. Changes imply
recognizing the demand of the customers or anticipation of future events. This concept has
evolved from the organizational change and management of the transition process. The
company needs to adopt the concept of managing change and planning the change. These
concepts have been categorized and different human resource theories and practices must be
adopted by the company (Gluskin, 2013).
3. People Management is a new concept which is adopted by the Woolworths Company. The
fundamental concept of bringing a change in an organization has been advocated by the
company professionals. This is all about managing the efforts of the workforce and also
adhering to the basic needs of its professionals and staff of Woolworths (Knies & Leisink,
2013).
4. Control and Influence is an important HRM strategy which has been adopted as a resistance
to change. The management of changes within the organization can be achieved through
control and influence over the various alterations. Organizational change has been recognized
as the management strategy which can interact with the environment on a continuous basis.
5. Organizational Climate is a new HRM strategy helps in maintain the set of association
among stakeholders and different set of variables which cannot be controlled by the
organization. The company needs to motivate its managers and employees on a constant
basis. The leads must be generated by the managers and inspire others too (Gabriel, 2015).

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6. Change Agent is a new HRM strategy that can outdo the competitors in the long run. The
change agent refers to external consultants and internal employees who are associated with
the company. The external consultants may work for a given time period with the company
and manage the change taking place within the organization. Internal employees are
permanently associated with the company (Momani & St. Amand, 2015).
d) Analyze how Woolworths Supermarkets has aligned its future strategies to
manage change and innovation in a global business environment?
Woolworths is one of the renowned and trustworthy brands in Australia. The company
has been providing the best experience to its customers. The Woolworths Organization has been
doing continuous innovation. It is considered as one of the best examples for incredible growth
with relevance to delivering the food and other products like liquor and fashion products at a low
cost. The Woolworths Company has been changing its organizational structure with changing
environment and has made continuous changes to accomplish the customer needs. Therefore, the
company has been providing greater value to its customers (Puranam & Maciejovsky, 2017). The
administration department within Woolworths has been making decisions regarding change
management and understanding the shopping behavior of its customers. Woolworth has given an
active response to its customers by providing them with a greater number of opportunities. The
company has been responding to the challenges in a dynamic manner. By understanding the
demands of the customers, Woolworths Management has been adopting the various product
concepts and strategies to accept mobile technology. This is how the company has been
increasing its accessibility to its customers. The company has a clear policy of its price fixation
(de Motta & Ortega, 2013).

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All the products of Woolworths Company are sold through retail stores. The company is
welcoming the new changes within the environment and has made it's operational online. It is
one of the exceptional mediums through which the products are being sold online. This is how
the company understands the requirements and needs of its customers who are living outside the
suburb regions. Through its online operations, the company has been undergoing growth in its
retail operations. The company has been making changes in its employee engagement programs.
At present, the company has eighteen million customers and has been adopting forward steps for
employing the workforce. The company has a reward policy for its loyal employees. This is how
the company has been making sustainable growth within the organization (Rivera, 2016).
The organization has understood the concept of change management and ensures sustainability in
its operations. The changes are not made at the operational level, but also at the middle and
lower level. This is a competitive world where the changes taking place within the environment
are dynamic. The company understands the different perspectives of its employees and
encourages them towards growth and prosperity (Rydzak & Monus, 2018).
e) Reflect on your own Personal Learnings and Insights as a Result of Analyzing the
Woolworths Supermarkets Case Study?
Woolworths is regarded as the brand leader of the retail food business in Australia. The
company is known to show dynamic leadership in all its products. The company has been
recognizing the employee’s ability towards the achievement of its goals and objectives. The
company is known for managing its resources effectively. It recognizes the efforts done by its
employees. The company ensures that there are zero food waste procedures within its
organization.

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The Australian market has been coming up with challenges in the form of rival
companies like Coles, Metcash, and others. The Woolworth organization has been able to
eradicate the challenges by making the changes in its pricing policies and make its products sold
in a competitive market. The company has collaborated with Coles and has been charging higher
prices from the customers. At present, there have been restrictions through the Australian
Government and this had an impact on its operations.
Woolworths has a lot of potential for increasing its business in other parts of the country.
The company has robust supply chain management and responsive operations through which it
can increase its customer base. The growth of Woolworth can be largely impacted through the
changes in tax policies and other regulations The Company is able to understand the customer
buying patterns and offers a wide range of opportunities to grow.
Conclusion
The Woolworths Company has been effectively managing the change externally and
internally. The Company understands the concept of change management and promotes changes
within its employees, HR managers, and others. The company has initiated new Human resource
management strategies through which it can effectively deal with the changing demands of the
customers. This includes evolving the virtual interface for its customers and effectively
managing its operations. There are continuous efforts for inventory management. The
Woolworths Company has made collaboration with external consultants to ensure sustainable
growth and change agents.

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Recommendations
The Woolworth Strategy needs to focus on mainly three principles-
1. Woolworth needs to improve the core offering through which first preference can be
given to customers.
2. Continuous innovation to meet with the customer needs
3. Creating the customer value through the organization of success and execution of retail
model.
4. The company needs to bring about price reductions and bring a competitive level.
5. The online tore pricing must be matched with the store pricing system.
6. The major impact must be on freshness and range of various fruits and vegetables.

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References
Alexander, A. (2017). Gauging the unique developmental strategies towards human resource at
Saudi Aramco. Human Resource Development International, 21(2), 150-157.
Cai, F., & Zhang, X. (2017). Structural Reform for Economic Growth. Australian Economic
Review, 50(4), 450-459.
de Motta, A., & Ortega, J. (2013). Incentives, Capital Budgeting, and Organizational
Structure. Journal Of Economics & Management Strategy, 22(4), 810-831.
Gabriel, K. (2015). Organizational Development, Organizational Culture and Organizational
Change. SSRN Electronic Journal.
Gluskin, E. (2013). Structure, nonlinearity, and system theory. International Journal Of Circuit
Theory And Applications, 43(4), 524-543.
Knies, E., & Leisink, P. (2013). Linking people management and extra-role behaviour: results of
a longitudinal study. Human Resource Management Journal, 24(1), 57-76.
Lehmann, S. (2017). Bridging Strategies and Action: Towards a Method for Change
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Management, 17(2), 138-154.
Lindberg, D. (2013). Change Management Tools for Systemic Results. Change Management: An
International Journal, 12(3), 1-6.
Liu, X. (2015). Trade Agreements and Economic Growth. Southern Economic Journal, 82(4),
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Momani, B., & St. Amand, S. (2015). Best Practices in Central Bank Organizational Culture,
Learning and Structure: The Case of the Moroccan Central Bank. Economic Notes, 44(3),
449-482.

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Puranam, P., & Maciejovsky, B. (2017). Organizational Structure and Organizational
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Shaw, D. (2015). Managing dualities in organizational change projects. Journal Of Change
Management, 16(3), 201-222.
Ward, T. (2017). Inequality and Growth: Reviewing the Economic and Social
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