Woolworths Case: Change Management Impact on Performance

This research proposal investigates the impact of change management on Woolworths' organizational performance, prompted by increased market pressure and competition in the Australian retail industry. It identifies factors influencing organizational change, such as management functions...Read More

Running head: RESEARCH PROPOSAL
Impact of Change Management on Organizational Performance: A case study of Woolworths"
Name of the Student:
Name of the University:
Author’s Note:

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Executive Summary
This current study deals with the effect of change management process on organizational
performance in the context of Woolworths It has been received that Woolworths has faced huge
market pressure and competition in Australian retail industry. This led Woolworths to implement
structural changes in their organization. This is due to invest properly and reduce the high
operating cost of business. Organizational change makes the employees flexible with the new
environment. Therefore, primary method will be used in this research study to collect data.
Hence, the anticipated findings of the research study highlight the benefits of new changes in
Woolworths.

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Table of Contents
1.0 Introduction................................................................................................................................4
1.1 Background of the study........................................................................................................4
1.2 Problem Statement.................................................................................................................5
1.3 Research Aim.........................................................................................................................7
1.4 Research objectives...............................................................................................................7
1.5 Research questions.................................................................................................................7
2.0 Literature Review......................................................................................................................8
2.1 Concept of change management............................................................................................8
2.2 Factors influencing changes in an organization.....................................................................8
2.3 Lewin’s Change Management model..................................................................................10
2.4 Impact of change management on organizational performance..........................................11
3.0 Research Methodology............................................................................................................12
3.1 Research philosophy, design and approach.........................................................................12
3.2 Sampling method and sample size.......................................................................................13
3.3 Data collection method and data analysis............................................................................13
3.4 Accessibility and validity issue...........................................................................................14
3.5 Ethical consideration...........................................................................................................14
3.6 Time Frame..........................................................................................................................14
4.0 Expected outcome....................................................................................................................14

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References......................................................................................................................................16

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1.0 Introduction
Globalization leads the business organization to face internal and external changes. In
order to deal with the changing environment change management is necessary for a business.
Change management improves the performance of the employees in an organization. However,
organizational change enables the employees to be flexible with the new environment. Bringing
change in an organization the management will be able to make a dynamic work culture in an
organization (Kuipers et al., 2014). The performance of a firm is influenced positively by the
change management process. Any change in the organizational system leads the organization to
gain a competitive advantage in the global market. This study deals with the impact of change
management on the performance of Woolworths.
1.1 Background of the study
Woolworths is the popular retail organization in Australia. It has large grocery chain
across Australia and global market. Woolworths mostly provides groceries, household products,
beauty products and health products (Woolworths.com.au, 2018). It has 100 stores and 986
supermarkets across Australia. Due to high competition in global retail industry retailers focus on
bringing changes in their organization. Change management is considered as an approach to
direct the transition in an organization. Change management leaves an overall impact on the
productivity of the organization. For every organization change is necessary to restructure the
organization to deal with the changing environment. In the recent years, there is a huge
competition in the global retail industry. Thus, incorporate something new in traditional business
process becomes important for the retailers.

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Australian retail landscape is going through a structural shift by incorporating
technological disruption in retail ecosystem (Doppelt, 2017). They focus on the communication
process with consumers by restructuring their organization. Consumers prefer to interact through
online and offline. At present, it becomes a major challenge for the retailers to navigate the
emerging technology in retail industry. Changing technology leads the retailers to conduct their
business in a new environment. However, it is crucial for all business to identify the way through
which they can leverage the new changes in their organization. Restructuring of the organization
leads the retailers to make a balance between the supply and demand. Change management
reveals that how the organization is influenced by the majority of decision. In the recent years,
Woolworths has faced structural changes in their organization to strengthen their existence in a
highly competitive environment.
The major issue that is faced by Woolworths is the inability to deliver the service based
on the customer demand. This is due to the inappropriate SAP (system, application, and product)
structure of this organization. Increased market pressure leads Woolworths to bring changes in
its management structure. Previously Woolworth had cut its operation cost by reducing 400
executives. This led the organization to face high turnover of senior employees as many seniors
lost their trust in Woolworth’s operation system. At present Woolworths has implemented lean
retail operating model to invest efficiently along with saving money (Woolworthsgroup.com.au,
2018). This model also helped them to improve the customer experience.
1.2 Problem Statement
In the recent years, huge market pressure is a big reason, which leads the business
organization to alter their existing system. However, the poor organizational structure hampers
the customer satisfaction in a business (Price, 2016). Woolworths failed to deliver excellent

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customer service due to its inappropriate SAP structure. Losses of customer and employee faith
are the major reasons, which influence an organization in to implement change. On the other
hand, old system, as well as the structure of an organization, is a big issue to incorporate
emerging technology. In the recent years, technology is very rapid in Australia. For this reason,
every organization has to incorporate new technology into their system to cope up with the
globalization. Hence, due to the traditional system, it is difficult to implement new technology in
an organization.
Huge market pressure due to globalization is a big issue that influences the change
management. In order to gain sustainable business organization needs to cope up with the
globalization. Globalization forces the organization to implement new changes in their
organization (Fleming & Measham, 2015). In the context of Woolworths, the share price is fallen
and they failed to deliver satisfactory service to their customers. Due to high market pressure,
Woolworths are forced to close their many stores as they faced high operation cost.
At present high competition in Australian retail market leads the retailers to cut the cost.
In the year 2016, Woolworths has faced a huge loss of $1.235 billion in their Australian food and
petrol business (News.com.au, 2018). This was the first time for Woolworths to face loss in their
23 years business. Such loss occurred due to poor customer satisfaction and high competition in
Australian retail industry. Thus, change became necessary for Woolworths to deal with such
market challenges.

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1.3 Research Aim
This research study aims to evaluate the impact of change management on Woolworth’s
performance.
1.4 Research objectives
 To identify the potential factors of change management in an organization
 To what extent change management influences the organizational performance of
Woolworths
 To recommend the ways to improve the change management process in Woolworths
1.5 Research questions
 What are the reasons to implement a change in an organization?
 What are the major impacts of change management on Woolworths?
 What are the techniques to improve change management in Woolworths?

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2.0 Literature Review
2.1 Concept of change management
Change management is a technique to manage the human resources to gain the desired
business outcomes (Kuiper et al., 2014). However, change management incorporates many tools
and techniques in the existing system of an organization. This allows the individuals to carry out
a personal transition. Change management allows an organization to move from their current
state to the transition state and finally the desired state. Change management focuses on the
workforces that are affected by the new change in an organization. To cope up with the dynamic
world any organization needs to change constantly. This will help them to understand the
customer needs that are changing over the time. However, change management refers to the
adaption of needs of the current market. Change management is beneficial for the organization to
gain competitive advantages on the other hand; it may create many challenges during its
implementation.
2.2 Factors influencing changes in an organization
Various factors are involved in influencing the changes in an organization. One of the
major factors is management function, which affects the changes in an organization. Changes
in the position of board director or CEO often lead the organization to bring changes in their
existing strategy (Kuipers et al., 2014). However, the incoming members of the management
team review the existing strategies and generate new ideas to improve the strategies. On the other
hand, structural transformation is another factor which facilitates the new changes in an
organization. Structural transformation is done to expand the business in the international
market. This type of transformation alters the market structure, capital ownership, management

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and market structure of an organization. For the retailers, structural transformation acts as the
major factor to implement new changes in their organization. For an organization, it is important
to be flexible with the existing strategy besides developing the new strategies.
Market competition is another factor of change management in an organization. As
argued by Hornstein, (2015), rising competition in the target market forces an organization to
review their existing strategy to gain competitive advantages. At current years one of the major
challenges in Australian retail sector is the product limitation and alternative product by the
competitors. Many competitors offer the product at low price and often high demand of
consumers leads the organization to face product limitation. Such huge competition in the market
influences the business organization to change their current strategies. However, changing
strategy helps the organization to take necessary actions based on their current weakness and
threats.
Changing demand of the consumers is a vital factor of organizational change.
However, the demand and need of the consumers often change, which leads the marketers to
change their business procedures and incorporate new business model. In the retail industry,
market trend changes over the time that creates a big challenge for the marketers. Social and
cultural factors play an important role in bringing changes in an organization. However, the
cultural and social profile of an organization brings changes in their strategic management. As
commented by Rosenbaum, More & Steane, (2018), strategic orientation of any business should
be aligned with the cultural and demographic sensitivities. As for example, when a retailer is
entering a new market then it is important for them to review the cultural and social trends of
such country. To align their business with the social trend of the market organization focuses on
incorporating changes in their business.

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Laws and legislation are involved in bringing changes in an organization. Any change in
law such as environment and tax-related law brings changes in the strategic management of an
organization (Van der Voet & Vermeeren, 2017). To conduct a business operation without facing
any legal obligation every organization needs to incorporate the legal requirements in their
existing system. This causes changes in an organization. On the other hand, due to lack of
technology or availability of technology influences an organization to bring changes in their
strategy. In the recent years growing information technology makes changes in the strategic
management of any business organization.
2.3 Lewin’s Change Management model
Among the various models of change management, Lewin's change management model
is very popular. This model focuses on the structural changes in an organization (Cummings,
Bridgman & Brown, 2016). Unfreeze; change and freeze are the three major stages of this model.
The unfreeze stage focuses on the preparation of the change in an organization. In the change
phase, real transition takes place. During this phase, the people of an organization prepare
themselves to receive new changes in an organization. Next phase is the refreeze stage. In this
phase, the introduced changes are embraced and implemented completely. By following this
model the organization is able to understand the structural changes. Therefore, this model allows
the organization to implement new changes step by step in their workplace. Any organization
gets a clear idea of how the change is implemented and its significance for an organization.
Lewin’s change management model reveals that good communication and effective leadership
are the two major elements to carry out a change in an organization. Often employees become
resistant to change. Application of this model allows an organization to influence the employees
to accept the change by revealing the profit of a change.

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2.4 Impact of change management on organizational performance
Studies show that change is related to the performance of an organization. Change in the
organizational strategy increases the profitability of the organization. Therefore, change
management is directly associated with customer satisfaction, service delivery, improved
productivity and market growth (Al-Jaradat et al., 2013). Change brings new opportunity for the
employees to maximize their performance. Therefore, change encourages innovation process in
an organization, which allows the organization to compete in global market. In order to improve
the organizational efficiency, change management is necessary for the organization (Ndahiro,
Shukla & Oduor, 2015). If an organization is able to manage the implemented change properly
then efficiency of the work process can be increased. Employee behavior is also influenced by
change management process.
Managing a change in an organization leads the business to stay current with the new
trend of the industry. As argued by Thomas, (2014), employee resistance is a big barrier while
managing changes in an organization. Often the employees do not accept any change in the
existing system. Therefore, to manage organizational changes business owner has to expend
more. On the other hand, lack of adequate support causes the failure of change management
process. Hence, it can be evaluated that change management brings both opportunities and threat
for an organization.

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3.0 Research Methodology
3.1 Research philosophy, design and approach
Research methodology is a crucial part of every research study. In This research study,
positivism philosophy will be taken. This philosophy will help the research to make the research
in a logical way and to represent it critically (Taylor, Bogdan & DeVault, 2015). This current
study is based on the impact of change management in organizational performance of
Woolworths. Hence, by applying positivism philosophy the researcher will be able to exhibit the
data in a logical way. Research approach is another crucial part of research methodology.
Deductive and inductive approaches are two major research approaches. Among these two
approaches, deductive approach will be selected by the researcher. Deductive approach follows
the existing theories and models. Hence, by applying deductive approach the researcher will be
able to review the existing models and theories to collect authentic data for the selected topic.
Maximum researchers avoid the inductive approach as application of this approach
requires development of new theories (Flick, 2015). Deductive approach will allow the
researcher to analyze the collected data with support of relevant theories. Research design needs
to follow in a research study to analyze the variables of the topic. Selection descriptive design
will be effective for this study. In order to develop research hypothesis, descriptive design is
required. The current research topic has two variables thus descriptive design will allow the
researcher to create hypothesis based on the variables.

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3.2 Sampling method and sample size
Sampling technique focuses on the selection of sample size. Sampling technique is
categorized in probability and non-probability technique (Lewis, 2015). In this current study,
probability sampling technique will be chosen by the researcher. The researcher will focus on
simple random sampling technique to select the sample size. To conduct this research 75
employees of Woolworths will be taken for survey and 3 managers of Woolworths will be
chosen to take interview. Such sample size will be suitable for this study to collect authentic
feedbacks.
3.3 Data collection method and data analysis
Primary research methodology will be selected to collect data from the sample size. This
study will include both quantitative and qualitative method, thus it will be called mixed method.
Mixed method is beneficial for a research study to collect valid and reliable data (Silverman,
2016). Most of the research study follows mixed method. Quantitative method includes survey
and qualitative method will be used to conduct the interview. Quantitative data collection is
crucial to obtain real-time data. For quantitative study questionnaire will be used. Through
conducting the survey the researcher will be able to acquire real-time data from the participants.
For every research primary and secondary research need to be carried out. The literature review
section will be based on the secondary research method. Journal review will be used as the
strategy of secondary data collection. For every research collected data needs to analyze in a
proper way as it gives a clear idea to the reader about the presented information.

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3.4 Accessibility and validity issue
Accessibility, reliability and validity are issues often occur while conducting a research.
During the conduction of research the researcher will face data accessibility issue. Many journals
are in paid version, which will resist the researcher to gather information from such journals. On
the other hand, it will be often difficult for the researcher to get valid and reliable data. The
researcher has to use current data, which will create challenges as current information is often
not reliable.
3.5 Ethical consideration
The researcher needs to follow ethical requirements while carrying out a research. The
researcher needs to keep confidentiality of the information that is obtained from survey and
interview. For this purpose the researcher needs to follow Data Protection Act. The researcher
should not force the candidates to involve in survey. Therefore, the researcher cannot raise any
personal question to the interviewees, which can affect their sentiments. The entire personal
information of every candidate should be protected. Therefore, during the literature review
proper citation is required.
3.6 Time Frame
(Refer to appendix)
4.0 Expected outcome
From the entire analysis it can be said that change management will make big change in
the context of Woolworths. Structural change will help an organization to sustain in the global
market. The major issue highlights the external changes, which insists an organization to

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introduce new changes in an organization. Implementation of lean retail model will be a big
change in this organization, which needs to manage properly. Proper management of lean retail
model will allow Woolworths to increase their productivity along with good customer
experience. Poor level of customer satisfaction was the major factors that led Woolworths to
implement new model in their business. Based on the literature review it can be said that new
change in Woolworths will bring opportunity to deal with current market challenges.

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References
Al-Jaradat, O., Nagresh, M., Al-Shegran, A., & Jadellah, N. (2013). Impact of change
management on the performance of employees in university libraries in Jordan. European
Journal of Business and Management, 5(2), 160-178.
Cummings, S., Bridgman, T., & Brown, K. G. (2016). Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. human relations, 69(1), 33-60.
Doppelt, B. (2017). Leading change toward sustainability: A change-management guide for
business, government and civil society. Routledge.
Fleming, D. A., & Measham, T. G. (2015). Local economic impacts of an unconventional energy
boom: the coal seam gas industry in Australia. Australian Journal of Agricultural and
Resource Economics, 59(1), 78-94.
Flick, U. (2015). Introducing research methodology: A beginner's guide to doing a research
project. Sage.
Hornstein, H. A. (2015). The integration of project management and organizational change
management is now a necessity. International Journal of Project Management, 33(2),
291-298.
Kuipers, B. S., Higgs, M., Kickert, W., Tummers, L., Grandia, J., & Van der Voet, J. (2014). The
management of change in public organizations: A literature review. Public
administration, 92(1), 1-20.

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Lewis, S. (2015). Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), 473-475.
Ndahiro, S., Shukla, J., & Oduor, J. (2015). Effect of change management on the performance of
government institutions in Rwanda: A case of Rwanda revenue authority. International
Journal of Business and Management Review, 3(5), 94-107.
News.com.au. (2018). Woolworths unveils $1.235 billion loss. Retrieved 13 April 2018, from
http://www.news.com.au/finance/business/retail/woolworths-unveils-1235-billion-loss/
news-story/5a6cd1f33658f536b47d95b305c5bc67
Price, R. (2016). Controlling routine front line service workers: an Australian retail supermarket
case. Work, employment and society, 30(6), 915-931.
Rosenbaum, D., More, E., & Steane, P. (2018). Planned organisational change management–
forward to the past? An exploratory literature review. Journal of Organizational Change
Management, (just-accepted), 00-00.
Silverman, D. (Ed.). (2016). Qualitative research. Sage.
Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research methods: A
guidebook and resource. John Wiley & Sons.
Thomas, O. O. (2014). Change Management and its Effects on Organizational Performance of
Nigerian Telecoms Industries: Empirical Insight from Airtel Nigeria. International
Journal of Humanities Social Sciences and Education (IJHSSE), 1(11), 170-179.
Van der Voet, J., & Vermeeren, B. (2017). Change management in hard times: can change
management mitigate the negative relationship between cutbacks and the organizational

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commitment and work engagement of public sector employees?. The American Review of
Public Administration, 47(2), 230-252.
Woolworths.com.au. (2018). Woolworths. Retrieved 12 April 2018, from
https://www.woolworths.com.au/
Woolworthsgroup.com.au. (2018). Lean Retail Model to drive three-year growth plans.
Retrieved 12 April 2018, from
https://www.woolworthsgroup.com.au/page/media/Latest_News/Lean_Retail_Model_to_
drive_three-year_growth_plans/

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Appendix
Research
Activities
1st week-2nd
week
2nd week -6th
week
6th week to
8th week
8th week to
10th week
10th week -
12th week
Set of the
research aim and
objectives
Conduction of
the literature
review
Application of
primary data
collection
method
Analysis of the
collected data
Data
representation
Figure 1: Time Table
(Source: Researcher)