Lonsdale Institute BSB61015: Woolworths Leadership Report Analysis

This report offers an in-depth analysis of Woolworths' leadership, focusing on key aspects such as business ethics, leadership styles, and the decision-making processes within the organization. The report commences with an exploration of business ethics and its significance, particularly within Woolworths, highlighting the benefits of ethical practices and the impact of leadership styles such as Participative and Authoritative. It then delves into the influence of Australian legislation on leadership, providing illustrative examples. The report outlines Woolworths' mission, purpose, and values, followed by its objectives, plans, and strategies, including its approach to organizational change. A PESTLE analysis assesses the external environment, while a SWOT analysis and Five Forces model evaluate the competitive landscape. Strategic and operational recommendations are proposed, with a focus on maintaining product quality, sustainability, and convenient shopping experiences. The report concludes with a discussion on the decision-making process and the importance of stakeholder involvement. The report is a comprehensive study of Woolworths' leadership and management practices.

RUNNING HEAD: WOOLWORTHS
LEADERSHIP ACROSS THE ORGANISATION

WOOLWORTHS 1
Contents
TASK 1......................................................................................................................................2
TASK 2......................................................................................................................................4
Purpose...................................................................................................................................4
Company background................................................................................................................5
Internal and external analysis.....................................................................................................5
PESTLE..................................................................................................................................5
SWOT.....................................................................................................................................6
Five Force Model of competition...........................................................................................6
Recommended strategies............................................................................................................7
Conclusion..................................................................................................................................8
Decision making process............................................................................................................8
TASK 4 Issue Management.......................................................................................................8
Task-5.......................................................................................................................................10
Ethical conduct.........................................................................................................................10
Ethical business culture........................................................................................................10
Ethical behavior....................................................................................................................10
Application of behavior in workplace..................................................................................10
Adaption of Ethical behavior................................................................................................10
Addressing Conflict of interest.............................................................................................11
Leadership style.......................................................................................................................11
Leadership style and circumstances.........................................................................................11
Personal development plan......................................................................................................12
Bibliography.............................................................................................................................15

WOOLWORTHS 2
TASK 1
Business ethics are the norms and principles that guide an organization to follow the right
path to offer product/services. A business organization should follow the ethics as it offers
multiple benefits. Woolworths is a reputable business organization and it highly relies on the
business ethics in its business process. It develops the use of quality raw material to produce
commodities. Additionally, it opts for appropriate advertisement by considering the culture
norms of Australia and it deals with the stakeholders (employees, customers, suppliers, and
shareholders) in a respective and polite manner1. Therefore, it has experienced ide number of
benefits such as:
1. It has raised the organization reputation in the Australian retail industry.
2. It has developed positive interpersonal relation with the stakeholders.
3. It aids in retaining old customers and attracting new customers in Australia and global
market.
4. It has assist in easily attracting the new talent in the organization.
Leadership is the art of motivating, inspiring, leading and guiding the human resource of an
organization for effective work performance. There are multiple leadership styles and it
includes Authoritative, Participative, Transformational, and Transactional leadership styles2.
Participative leadership style involves the human resource in identifying objectives,
developing strategy and decision making process. This form of leadership style is highly
appropriate to raise the employee motivation and satisfaction level.
A leader dictates the policies, plans, goals and procedures to the employees. The
Authoritarian leadership style is suitable hen the employees do not attain adequate knowledge
to opt for a decision3.
These leadership styles assist in offering product/service to the customers in a timely manner.
They help in providing quality performance and gaining high financial return (objective).
They work in collaborate manner and benefits in developing integrity (value). Thus,
Participative and Authoritative leadership style benefits the organization to fulfill their
mission, objectives and values4.

WOOLWORTHS 3
The Australian legislation lays a direct impact on the leadership of an organization. This can
be explained with the help of examples:
Example 1: The business organization has to amend its leadership style if the Australian
government lays a continuous amendment in its business legislative policies. The continuous
amendment may result in confusion and chaos in work performance. Additionally, it has to
devote high time, efforts and resources to continuously adapt to the amended policies.
Example 2: The organization has to opt for ‘Participative’ leadership style if the Australian
legislative policies are in high support of labour power. Therefore, it has to offer similar
power to its human resource by including their participation in important areas.
Mission: It has a mission to offer high quality and valuable products to the customers in a
convenient manner.
Purpose: The key purpose of the organization is to ‘add quality to life’. Its purpose includes
adding exceptional quality in every product and experience it offers to its customers and
people.
Values: It aims to embed the values in its business process. Below are the key values of
Woolworths
1. Customer obsessed: It offers high priority to its customers as it assists in earning
profit and operating in the industry.
2. Inspirational: It aims to take the lead and inspire the other business organizations in
the retail industry.
3. Being responsible: It lays high focus on doing the right thing and in a right manner.
4. Collaborative: It emphasize on collaborative working by working as a team.
5. Quality: It is the heart of their business and they are highly committed to quality5.
The company has adhere to its mission, purpose and values and it has enabled in emerging as
a reputed Australian based multinational supermarket store in Australia. It has aid in
developing a strong customer base and offed high recognition in the domestic market.
Objectives: The company aims to increase its customer strength in Australian and
international market. It attains an objective to increase its business reputation to minimize
competition in domestic market. Additionally, it has a goal to raise its financial earnings, and
customer satisfaction level.

WOOLWORTHS 4
Plan: The supermarket store is planning to attain strong market share to minimize
competition from its key rivals named ALDI, Amazon and Target.
Strategies: It relies on ‘everyday low pricing strategy’ to offer products to the customers.
Additionally, it opts for social media marketing and sales promotion to boost the products
sales and retain customer interest in the supermarket.
A change in process, system, organization structure and leadership gave rise to organizational
change. There are multiple steps in organizational change process and it includes the
following:
1. Urgency creation: The organization has to urgently communicate a change among
the human resource of the organization. It aids in gaining employee’s serious and
sudden attention towards the change.
2. Team building: It has to develop a team of skilled and effective employees to lead a
change in the organization.
3. Vision creation: The responsible employees should develop a vision behind the
change.
4. Communicating vision: The responsible employees (leads) should communicate the
vision to all the associated employees.
5. Removing obstacles: They should eradicate all the problems emerge in successful
change implementation.
6. Quick wins: They should offer minor rewards (non-financial) to boots employee
motivation to accept the change.
7. Integrate the change: The leads should gradually implement the change in the
organization6.
TASK 2
Purpose
The key purpose of the report is to analyze the business environment of the organization in
Australian market.
Executive summary

WOOLWORTHS 5
Woolworths is a recognized supermarket store and it deals in multiple products in Australia.
Australia and retail industry offers fine external and internal business environment. It has
multiple strengths and low threats and weakness. Its strategic objectives enable the
organization to attain strong position in the market.
Company background
Woolworths is an Australian based company founded in the year 1924. It is a multinational
organizational as it serves customers in 23 countries. It has a strong market presence as it
serves 29 million customers. It forms the retail industry of Australia. Its current strategic
direction is to improve the marketing of its product and services. Its key expectation is to
raise high number of customers and develop loyal customers in domestic market.
Internal and external analysis
PESTLE
PESTLE is a framework to analyze the external environment of an organization. It aids in
developing strategies to avail the full utilization of opportunities and minimize the threats
prevailing in the business environment.
Political: The Australian government has high government integrity and offers high trade
freedom to the business organization7. Therefore, the company will not face restrictions to
initiate trade in international environment. Thus, Australia offers passable political
environment.
Economic: The population strength of the country is 24.8 million. The Gross Domestic
Product and Unemployment rate counts to $1.2 trillion and 5.6%. Additionally, the inflation
rate is mere is 2.0%. The fine GDP, low unemployment and inflation rate depicts the fine
economic growth of Australia. The adequate Per Capita Income ($50334) states that
customers have fine disposable income and they can easily purchase the product/service7.
The fine economic growth offers an attractive economic environment.
Social: The Australian population is highly sensitive to price and they show minor brand
loyalty in their buying process. Additionally, they show high preference to quality and trendy
products. The high price sensitivity and low brand loyalty offers an unfavourable social
environment.

WOOLWORTHS 6
Technological: Globally, Australia ranks 17th as the innovative country8. Additionally, it
offers fine digital connectivity and automation to the business organizations. The availability
of upgraded technology assists the organization to avail the use of latest machineries in the
production process.
Legal: The Australian government highly protects the property rights of the business
organization7. Therefore, the company will not experience issues concerning product
imitation. Thus, it offers fine legal environment to the company.
Environmental: Australia attains low risk from natural calamities like earthquake, landslide
and flood. Therefore, it offers passable environment to conduct business operations.
SWOT
Strengths
1. It has a high business reputation in the market.
2. It deals in multiple products line (grocery, beauty and electric products).
3. It has a skilled force of employees (115000).
4. It has a high presence as it has 995 stores in Australia 9.
Weakness
1. Its competitors offer similar products to the customers at competitive prices. It limits
the organization to raise its product price to avail high return.
Opportunities
1. The rising population of Australia offers a chance of increase in customer strength.
2. The upgraded technology develops an opportunity of minimizing labor requirement
and decreasing labour cost8.
Threats
1. It faces high competition from one of its rivals named ALDI. It develops a threat of
reduction in customers and market share.
Five Force Model of competition
Industry rivalry: The Australian retail industry has multiple companies including
Woolworths, Target, ALDI, Tesco, Coles, Kroger, and Amazon. These companies offer

WOOLWORTHS 7
similar products to the customers at attractive price. Therefore, Woolworth’s faces mediate
competition from its rivals.
Customer’s power: Woolworths has high customer strength and it offers quality products at
low prices10. Therefore, high number of customers has low bargaining power to lower the
price of commodity. Thus, its customers have low bargaining power.
Supplier’s power: Woolworths avails the necessary material from multiple suppliers and
these include Teys Australia, a red meat and Supply chain solution provider8. It does not
depend on mainly limited suppliers. Thus, supplier’s has low bargaining power.
Threat of substitution: ALDI is one of the rivals of Woolworths in the retail industry. It offers
similar products at lower prices to the customers. Therefore, attains mediate threat of
substation as substituting from Woolworths to ALDI cost low.
Threat of new entrant: The existing supermarket stores have high recognition and strong
customer base in the retail industry. Thus, attains low threat from the new company12.
Recommended strategies
Strategic objectives
1. It should lay high focus on maintain and raising its product quality. It assists the
organization to maintain customer trust and reputation in the industry.
2. It should initiate steps towards sustainability in its business process. It should adhere
to the concept of reuse, reduce, and recycle in the production process. It aid in
minimizing the overall cost and minimizing environmental pollution. Additionally, it
will allow the company to fulfill its responsibility towards the environment.
3. It should initiate convenient stores to offer quality shopping experience to the
customers.
Operational goals
It should recruit skilled employees as it minimize the cost involves in training. It will aid the
organization to adhere to sustainability. It requires human resource and financial resource to
fulfil the above strategic objectives. It should achieve these strategic objectives within a
period of one year.
Risk

WOOLWORTHS 8
1. These strategic objective raises employee responsibility in the organization.
Therefore, it attains a risk of employee retention.
2. It develops the risk of rising cost and delayed product.
Successful implementation of change
1. The organization should frame SMART objectives for the achievement of strategic
objective13.
2. It should offer managerial support and fine organization culture to maintain employee
interest towards the set objectives.
Conclusion
From the above discussion, it is acknowledged that Australia offers fine business fine
environment to the Woolworths.
Decision making process
Woolworths should include all the relevant stakeholders in its decision making process. It
should mainly include board of directors, employees, and shareholders to develop relevant
decisions to achieve the strategic objectives. It should conduct a regular meeting to consult
with the stakeholders. Additionally, it should pre-inform the stakeholders and it must offer
opportunity to all the stakeholders. It should lay attention on the suggestions and plans
offered by them. It should also offer rewards and appreciation to stakeholders offering
creative and fruitful ideas. It aids in boosting their interest in the achievement of strategic
objectives14.
Stakeholders are the individuals that attain an interest in the organization. They are highly
influenced and impacted by the organization and its business process. The employees and
Board of directors forms the part of internal stakeholders and customers, suppliers,
shareholders, government and community groups are external stakeholders. All these
stakeholders differ in their interest. The customers attain interest in gaining quality products,
employees show interest in gaining high recognition and fine pay15. Therefore, it can be
stated that the company should maintain the interest of each stakeholder.

WOOLWORTHS 9
TASK 4 Issue Management
1. For this section selected issue is that internal audit in the company has reveals that the
management is offering male employees 10% more payment then the female
employees for the same level of job and responsibilities.
2. When these kinds of issues arise in the company then it implies that the company has
supported male dominating culture which put serious adverse effect on the company’s
reputation. These kinds of incidents can impact three primary factors of the
Woolworths such as it can adversely impact the reputation of the Woolworths, it can
cause increase the employees attrition ratio and this issue can impact on the
profitability of the company. When people will get to know about the results of the
internal audit that Woolworths gives more payment to the male employees then to the
female employees then it is possible that Australian citizen start boycotting to
approaching Woolworths store for satisfying their daily needs. Media is the prime
source through which people of the country can get coverage for this information.
Moreover, it will also create a leverage system for the other competitors in the retail
industry. As the company holds around 27.6% market shares in the Australian market
and major competitors of the Woolworths are TESCO, Coles group, Walmart, etc.
These competitors always make effective measures to gain the market share by
attracting the audience towards themselves. Thus, it is expected that other competitors
will take advantage of this issue and they will market negative things about the
company. This will put adverse effect on the profitability of the company because
now customers will prefer to approach other retail stores.
Apart from this, there is also the strong possibility that female employees of the
company start developing negative belief about the management. Resultant, it is
possible that female employees of the Woolworths starts resigning and they will likely
to join other competitor brands. In this way, it will also increase the employee attrition
ratio of the company.
3. Here, the top-level management of the company is at the fault and this fault is arisen
because of the psychology barrier of the management people. Top level management
of the company need to change their psychology in effective and efficient way. The
suggested measure here is that top level management should conduct a press-
conference and they should admit that we have conducted a mistake but from now we
are taking an oath that we will not support male dominance culture. Apart from this,

WOOLWORTHS
10
they should also say that we are requesting from all the people and companies in the
world that do not support such kind of culture. Moreover, the management persons
have to change their psychology they should understand that both (male and female)
are equal and both carry identical responsibility. Thus, both should be entitled for the
same pay scale. In this way, it is possible that customers and employees of the
company may not leave the company.
Task-5
Ethical conduct
Ethical business culture
In my opinion ethical conduct in Woolworths help the business to adopt ethical behavior and
to maintain equality, quality and fairness in the organization. It is because through this
organization increase the motivation of employees due to adopting the ethical principles in
which they get equal rights and maintain dignity as well as diversity in the organization1.
Therefore, for managing the ethical conduct in the organization it focuses on maintaining the
ethical business culture through dignity and workforce diversity management.
Ethical behavior
In my opinions there are several ethical behavior which are considered significant for me
such as development of professional relationship in the organization it is because through this
organizations can increase their productivity in the organization. I also perceive that respect is
the most significant ethical behavior it is because through respect the overall employees in
the organization will be motivated. Further, in my perception obeying the rules and
regulations and severe punishment against unethical behavior is also considered important for
the organization. This is due to the reason that this can maintain discipline and conduct the
work in ethical manner2.
Application of behavior in workplace
In my opinion ethical behavior is applied in the organization by developing certain ethical
standards through which managers of the organization will be influenced to perform work
fairly. The ethics will be taught in the organization by providing training and by developing
various programs.

WOOLWORTHS
11
Adaption of Ethical behavior
I will be the example for my team by performing my duties by adopting various ethical
principles such as fairness, regularity and equity in which I will also participate in each
activity and managing involvement with the ethics and philosophies. This can support me to
get quality results and this can encourage other team members to adopt ethical behavior for
avoiding negative outcomes.
Addressing Conflict of interest
The conflict of interest will be addressed through defining various strategies for example I
can divide the interest and uninterested person to adopt ethical behavior and develop good
relationship so that counselling will be provided to them about the effects of ethical behavior.
Further, ethical standards are developed for each of the members which are accepted by all
the team members.
Leadership style
In my opinion adopt servant leadership style it is because I become the leaders to serve the
needs and requirement of the organizations and to the person for which the group were
formed. This leadership style is adopted by me it is because it helps me making the decisions
by involving all the members of the team which is benefited for all the members in the team.
This can also support me in maintaining coordination and serving the needs of the team
members, organization and clients. Through this I can adopt the strategy of empathy that is to
make the decision by keeping themselves in the situation of others.
I can improve this leadership style it is because it is become difficult for me to make the
decision according to the requirement of the team members and organizations. So in my
opinion I could use the contingent leadership style it is because through this I could adopt the
skills and abilities according to the situation and effectiveness of the team members. Through
this I could not focuses on one leadership skills and trait as well as can adopt different skills
in different situation. Therefore, for this I can improve my leadership skills by adopting
various strategies that is I can work on more complicated projects so that I can step out from
my comfort zone and this project will be done by taking the involvement of all the team. This
can support to become aware about the different situation and to handle the complex project
within the time period3.

WOOLWORTHS
12
Leadership style and circumstances
In the first scenario I could adopt “Coach-Style Leadership” it is because through this I can
understand the strengths of individual and develop the strategies. It is because through this
they also feel motivated and remove the negative image at the same time increase
productivity. In this leadership style I could focused on the overall development of the
employees.
In this scenario I could adopt the “transactional leadership style” it is because through this I
can influence them to work extra due to the benefit of the organization. In this I could reward
the team members for their efforts. In this I can rephrase the incentive plan through which
members will be motivated and become supportive. Through this each member will work
efficiently to earn more reward which can overcome the problem of falling behind.
In the third scenario I could use the “Bureaucratic leadership style” it is because through this
I can explain my problem to the other managers and can listens their opinions regarding the
issue. This can also support me to explain them that resources are to be shared for the month
due to benefiting the objectives of the organization. This leadership style can support in
influencing them by developing innovative strategies and ambitious goals 4.
In the fourth scenario I could adopt democratic leadership style it is due to the reason that
company is restructuring through which it can involve everyone in the decision making. This
can provide equal direction to the each employee so that coordination is maintained in the
team till the time restructuring is done in the organization. Through this leadership style I can
schedule meeting on regular basis to provide information about the changes and role which
should be play my each employees of the organization.
Personal development plan
Tasks Activities
Personal and professional goals  For the next 10 years I could my
personal and professional goals is to
develop my professional skills, gains
new experiences and to involve in
training institutions so that skills and
knowledge to become an effective

WOOLWORTHS
13
leaders will be increased.
 My personal goal is linked with the
professional goal such as to increase
the quality of work, increase
communication skills and to solve the
complex problem efficiently.
Steps to accomplish objectives For accomplishing the objective and goals
which is set for the 10 years, I could perform
various activities-
 Attend the training classes so that I
can increase the knowledge for the
specific area.
 Attend meetings to learn the
experiences of the different managers
and entrepreneurs.
 Take complex project
 Receive feedback from the team
members to understand the strength
and weaknesses.
Prioritizing the steps The various steps is to be taken to achieve the
goals-
 I can talk to my mentor and
supervisor so that I can receive
different information which can help
me to achieve better outcomes.
 Understand my strengths and
weaknesses and develop the strategies
to overcome the weakness.
 I can listen the stories to successful
businessmen and leadership style as
well as strategies they have taken to
encourage the team members and to
accomplish the objective of the

WOOLWORTHS
14
organization.
Skills and knowledge To achieve my both personal and professional
goals I should have various skills such as-
 Communication skills to
communicate the message.
 Problem solving skills to take
complex challenges
 Relationship building skills to
maintain coordination and
collaboration.
The above plan describe that my goal is to become more professional by learning and to
become effective leader, for this I have to attend the training classes and take feedback from
the others. I can adopt various different procedures such as I can investigate my strengths and
weaknesses etc. Further, for this I need different skills and knowledge which includes
communication skills, intellectual skills etc. This can help in adopting efficient leadership
style and accomplishing the objective of the organization5.

WOOLWORTHS
15
Bibliography
x
1. George, R. T. Business ethics; Pearson Education India, 2011.
2. Aaker, D. A.; Joachimsthaler, E. Brand leadership; Simon and Schuster, 2012.
3. Antonakis, J.; Day, D. V. The nature of leadership; Sage publications, 2017.
4. Daft, R. L. The leadership experience; Cengage Learning, 2014.
5. woolworthsholdings. OUR PURPOSE,VISION AND VALUES, 2020.
woolworthsholdings. https://www.woolworthsholdings.co.za/overview/our-purpose-
vision-and-values/ (accessed February 16, 2020).
6. Lewis, L. Organizational change; John Wiley & Sons, Incorporated, 2019.
7. Heritage. Australia, 2019. Heritage. https://www.heritage.org/index/country/australia
(accessed February 16, 2020).
8. Liddy, M. How Australia ranks on innovation, in one chart, 2015. Abc.
https://www.abc.net.au/news/2015-12-07/how-australia-ranks-on-innovation/7007740
(accessed February 16, 2020).
9. woolworthsgroup. Woolworths Supermarkets, 2020. woolworthsgroup.
https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/
Woolworths (accessed February 16, 2020).
10. woolworthsgroup. A BUSINESS BUILT ON INTEGRITY, 2020. woolworthsgroup.
https://www.woolworthsgroup.com.au/page/about-us (accessed February 16, 2020).
11. Insidefmcg. Woolworths names top suppliers, 2016. Insidefmcg.
https://insidefmcg.com.au/2016/12/14/woolworths-names-top-suppliers/ (accessed
February 16, 2020).
12. Tavitiyaman, P.; Qu, H.; Zhang, H. Q. The impact of industry force factors on resource
competitive strategies and hotel performance. International journal of hospitality

WOOLWORTHS
16
management 2011, 30 (3).
13. Bjerke, M. B.; Renger, R. Being smart about writing SMART objectives. Evaluation and
program planning 2017, 61.
14. Zsambok, C. E.; Klein, G. Naturalistic decision making; Psychology Press, 2014.
15. Ackermann, F.; Eden, C. Strategic management of stakeholders: Theory and practice.
Strategic management of stakeholders: Theory and practice 2011, 44 (3).
16. Scott, C. p.; Jiang, H.; Wildman, J. L.; Griffith, R. The impact of implicit collective
leadership theories on the emergence and effectiveness of leadership networks in teams.
Human Resource Management Review 2018, 28 (4), 464-481.
17. Connolly, M.; James, C.; Fertig, M. The difference between educational management and
educational leadership and the importance of educational responsibility. Management
Administration & Leadership 2019, 47 (4), 504-519.
18. Hsieh, J. Y.; Liou, K. T. Assessing the structural relation. Review of Public Personnel
Administration 2018, 38 (1), 83-109.
19. Jie, F.; Gengatharen, D. Australian food retail supply chain analysis. Business Process
Management Journal 2019, 5 (2), 12-18.
20. Burnes, B.; Hughes, M.; By, R. T. Reimagining organisational change leadership.
Leadership 2018, 14 (2), 141-158.
21. woolworthsgroup. A BUSINESS BUILT ON INTEGRITY, 2020. woolworthsgroup.
https://www.woolworthsgroup.com.au/page/about-us (accessed February 16, 2020).
x