Business Research: Comparison of Lion and Woolworths Limited Report

This report presents a comparative business research analysis of Lion Nathan and Woolworths Limited, two prominent Australian companies. It investigates the role of social media in their business strategies, highlighting both advantages and disadvantages. The project objectives encompass identifying social media's impact, assessing risks and mitigation strategies, and comparing financial stability and profitability. The scope includes an examination of social media's positive and negative effects, along with risk assessment and financial comparisons, while excluding administrative details, organizational structures, and offline campaigns. The literature review explores social media's significance in marketing and consumer engagement. The report then delves into the financial performance of both companies, comparing liquidity, profitability, and capital structure ratios. Risks associated with each company, both internal and external, are identified, followed by a discussion of risk mitigation strategies. The conclusion summarizes the key findings, emphasizing the importance of social media in business promotion and the factors influencing profitability within the context of the Australian market.

Running head: COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Business Research: Comparison between Lion and Woolworth Limited
Name of the student:
Name of the university:

1COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Table of Contents
Introduction......................................................................................................................................2
Project objective..............................................................................................................................2
Project scope....................................................................................................................................2
Literature review..............................................................................................................................3
Role of social media in business organizations...............................................................................3
Advantages of social media on business.....................................................................................4
Disadvantages of social media on business.................................................................................5
Comparison of the financial stability and profitability of Woolworths Limited and Lion Nathan. 6
Risks and its combat strategy..........................................................................................................7
Risks associated to Woolworths Limited and Lion Nathan.....................................................7
Risk mitigation strategies developed for Woolworths Limited and Lion Nathan...................8
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

2COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Introduction
This report depicts the role of social media in the business organizations and their
positive and negative impact in the business organization. In order to prepare this report the
selected organizations are Lion Nathan and Woolworths Limited two Australia based companies.
Woolworths Limited is a retails industry and Lion is a food and beverage providing business
both of the companies serves online as well as online in Australia and they are willing to serve
their products and services within and out of Australia as well.
For gaining measurable success from the competitive marketplace, different strategies
have been adopted by the business organizations and based on those the companies are currently
gaining profit. This report represents the objective of the project, the project scope. However,
based on the literature review the financial stability and the profitability of the companies are
also illustrated in this report. After identifying the risks associated to the companies it is
necessary to identify proper risk mitigation approaches.
Project objective
 To identify the role of social media in the developed business strategies of
Woolworths Limited and Lion Nathan
 To identify the risks and risk mitigation strategies associated to Lion and
Woolworths Limited
 To compare the financial stability and profitability

3COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Project scope
After successful completion of the project it will be able to deliver the following
In Scope:
 The advantages and disadvantages of social media in the business organization
(Lion Nathan and Woolworths Limited)
 The risks and risks mitigation strategies associated to the organizations
 The comparison between the financial stability and profitability of both the
companies
Out scope:
 The administration details are not analyzed in this report
 The organizational structures are not considered
 The offline campaigning aspects are not analyzed in this report
Literature review
Role of social media in business organizations
The social media networking array includes Titter, YouTube, Facebook, Google Plus etc
helps to navigate different beneficial strategies for the business organizations. In order to
promote the business throughout the world the social media play very important role. Not only
this, but the social media acts as a marketing lead for the businesses also (Gitman, Juchau and
Flanagan 2015). In order to develop the existing consumer base and to grab huge number of
consumers from the marketplace the social media is very much important. It helps to serve a

4COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
much better service to the consumers. Apart from this, marketing is also done with the help
social media. It provides several opportunities regarding marketing products and service as well.
For advertisement purposes also social media is very helpful. The audiences who will follow the
company online website through the social media could gain information regarding the current
status of the companies. Through the help of blog post the companies will be able to deliver their
business status to the consumers. Real time updates are also available in social media
application (Chandrasekaran and Raghuram 2014). The social media will be able to hit the
clients through advertisements. The audience could communicate much frequently through the
social media. Even if any changes occur then, the schedule changes updates will be easily
reached to the consumers through the help of social media. However the business organizations
could both positively and negatively impacted through the social media applications. The
advantages and disadvantages of social media in the business operations and functionalities are
elaborated below.
Advantages of social media on business
Achievement of valuable consumer insight: In the real time several data related to the
consumers could be generated. The feedback of the consumers is posts in the social media like
Facebook, twitter, Instagram etc. From the social listening the daily activities of the consumers
can be detected and with their precious feedback the consumer insight can be gained (Putra
2013). In addition to this, the consumers could efficiently communicate with each other though
the independent social media platform.
Increment of brand loyalty and awareness: Through the help of social media application
the consumers can connect themselves with the companies. The retention of the consumers and

5COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
brand loyalty helps to enhance the brand loyalty of the companies and even the awareness are
also enhanced with the help of the social media application.
Generation of higher converting leads: With the help of regular interaction the
companies will be able to gain huge number of consumers throughout the world. The amount of
sales also gets enhanced and this is referred to as one of the most effective and efficient decision
making direction providers (Bartman 2014). The companies who sales their products through
online platform, are found to achieve much sales revenue than the offline service providers.
However he selected organizations named as Lion and Woolworths Limited use both the online
and offline selling platforms.
Providing high consumer experiences: Due to frequent communication the consumers
gain extreme high experiences from the social media application.
Search for competitors: Social media gives opportunity to monitor the key information
regarding different business organization those, who are biggest competitors to the nominated
companies named as Lion and Woolworths Limited.
Disadvantages of social media on business
Account management: As the social media provides effective business benefit to the
consumers thus proper management of the website is also very much necessary from the
consumers and business aspects (Nakandala Lau and Zhao 2017). Social media account is
required to be managed on time however if the developer fails to update the site properly then,
the security, cost and time everything will be affected.
Risks: Security risk is referred to as one of the most effective reasons behind the
disadvantages of social media. If the system developers fail to adopt the accurate risk mitigation

6COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
and security aspects then, several marketing associated risks will occur. Rather, the management
team should check the updates not only regular basis but also at a timely manner, to avoid the
risks associated to consumer’s comment (Arli et al. 2013). In addition to this proper control
management in terms of virus and hijacking issue control, are required to be adopted by the
management authorities of the organizations.
Comparison of the financial stability and profitability of Woolworths Limited
and Lion Nathan
After analyzing the financial ratio of the company it has been found that, liquidity ratio,
profitability ratio, capital structure ratio is the processes those are widely used by Woolworths
Limited and Lion Nathan. Through the help of current asset and the current liabilities the
liquidity ratio of Woolworths Limited is calculated. The current asset of the company is
$7660900 and the value of liability is $9168600 thus the liquidity ratio of the company is 0.80
(Bajracharya and Hastings 2015). According to the trends on ROI, it has been found that the,
operating profit of the company is $2146000 and the entire equity value is $25336800. The net
profit margin of the company is $3067700.
On the other hand, from the global financial report of Lion Nathan it has been found that,
the business delivered the revenue of $687.4 and on the prior corresponding of the consequences.
The prior corresponding period is enhanced by 6%. More than half of the beer market is covered
by Lion Nathan (Safrudin et al. 2014). The Australian beer market is increased up to 6.3 % due
to the delivery of different kinds of beer in the marketplace. The company has fallen from the
$9.45 in January. However, currently due to the adoption of Information system he market
growth is increased.

7COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
;’
Figure 1: Market Growth model of Woolworths Limited
(Source: Nakandala, Lau and Zhao 2017, pp-4182)
Risks and its combat strategy
Risks associated to Woolworths Limited and Lion Nathan
After analyzing the market and financial stability of the companies it has been found that,
both of the companies are facing internal as well as external risks. The external environment of
the company of Woolworths Limited is negatively impacted due to its weak market strategy. The
higher product prices of the companies are also restricted through the Australian government
(Das Nair and Dube 2017). However, they fail to meet the changing needs of the consumers.

8COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Due to the presence of multiple business options, the company fails to serve the suitable business
strategy. Additionally, extreme completion level, the company is significantly getting affected.
On the other hand, the products of Lion like prima tropicool and other fruit drinks are
damaging the brand image of the company. The volume is getting declining for the Lion’s Beer,
spirit and wine as well. Due to high level competition in the beverage market, the trust level is
getting deficit. As the company is unable to serve their products outside Australia thus, due to
lack operation limitation the revenue of the company is getting affected. Coca Cola, Frucor are
the biggest competitors to Lion.
Risk mitigation strategies developed for Woolworths Limited and Lion Nathan
Risk mitigation strategies in Woolworths
Limited
Risk mitigation strategies in Lion Nathan
Through periodic review the risk profile of the
company are adopted. Risk aware culture should be
adopted and risk management and compliance
committee are also developed to mitigate the
material level business risks of the company
(Maimela 2016).
In order mitigate most of the issues associated to
Lion the company has developed proper team
management and compliance programs.
Divisional leadership and managers are required to
be adopted by the management authority to drive
the risk ware culture if the companies and
developing the responsibilities of the companies.
For ensuring the management the company has
developed due diligence procedure to corporate the
mergers and acquisition. In addition to this the
legal, financial treasury and the tax associated
issues are also mitigated with the help of business
leadership team development.

9COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Instead of upward and downward communication
approaches the company has developed open
communication in order to make the employees
feel free to communicate with the managers of the
company (Dakora and Bytheway 2014). Not
only this, but also proper monitoring and
collaboration aspects also developed by the
management authority of Woolworths Limited.
External audit is another important factor adopted
by the Lion Nathan company to mitigate the control
level issues and change management issues.
Besides, the offline service the company has
adopted online services too, to deliver their services
within and outside Australia regardless of the
location of the clients and access time of the
consumers as well.
For quality improvement different technical level
services are also adopted by the company. Even the
specified risk area of the company are identified
and based on that certain tool and strategies are
developed in Woolworths Limited.
The different aspects those are considered for
developing the risk management strategies for Lion
Nathan, include stakeholder reporting, product
integrity and information system as well (Jones
2014). The company has implemented Information
System for developing their existing marketing
scheme and strategy. With the help of information
system the Supply Chain Management (SCM) and
Customer Relationship Management (CRM)
system the overall operation of the business
organization will be completely mitigated.

10COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
Conclusion
From the overall discussion it can be concluded that, social media plays important role in
the business organizations, for promoting their business within and out of Australia. In order to
understand the role of social media it is very much necessary to understand the business
strategies and after understanding the role of business strategies, how the social media is directly
and indirectly associated to that is also represented in the report. Due to frequent economic
inflation in the market the profitability of the organizations are also affected both positively as
well as negatively. In order to represent the report, Lion Nathan food and beverage serving
companies and the revenue status of Woolworths Limited are compared and demonstrated in this
report. Not only this but also it has been found that, different risk are associated to the
companies. In order to mitigate the issues associated to Lion and Woolworths Limited proper,
risk mitigation strategies are also developed by the companies. Those aspects are clearly
compared to each other.

11COMPARISON BETWEEN LION AND WOOLWORTH LIMITED
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