Business Environment: Stakeholder Analysis of Woolworths (MGT501)

This report provides a comprehensive stakeholder analysis of Woolworths, an Australian retail giant. It begins with an executive summary and introduction outlining the report's objectives, which include examining the functional areas of Woolworths, differentiating between internal and external stakeholders, and investigating their respective interests and potential conflicts. The report delves into the nature and degree of influence of key stakeholders such as employees, shareholders, customers, and suppliers. It utilizes PESTEL analysis to identify the level of influence of stakeholders across political, economic, social, and technological dimensions. Furthermore, the report constructs a stakeholder matrix and compares Woolworths' stakeholder landscape with that of Westpac, a banking industry competitor. The analysis explores conflicts of interest between stakeholders and concludes with a comparison of stakeholders between the retail and banking industries. The report provides insights into the complex relationships between stakeholders and their impact on the business.

Running head: STAKEHOLDER ANALYSIS OF WOOLWORTHS
Stakeholder Analysis of Woolworths
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1STAKEHOLDER ANALYSIS OF WOOLWORTHS
EXECUTIVE SUMMARY
The primary aim of this particular report is to analyse the stakeholder ideology of a retail
chain industry. The industry chosen for the fulfillment of the same is Woolworths, Australia.
In this context, the report tends to investigate the functional areas of the concerned sector and
analyses its stakeholders accordingly. Further, the study concentrates on differentiating the
internal and external stakeholders of the same industry. Moreover, the report investigates the
interest of the stakeholders and the conflicts that arises because of the difference in the
implications of the stakeholders of Woolworths. Furthermore, the report examines the level
and importance of the significant stakeholders and uses the theory of PESTEL analysis in
order to fulfill the same. Hereafter, the report creates a stakeholder matrix of Woolworths and
moves forward in comparing the industry of Woolworths with that of Westpac in Australia.
Finally, the study ends with the comparison of the stakeholders between the retail industry of
Woolworths and the banking industry of Westpac.

2STAKEHOLDER ANALYSIS OF WOOLWORTHS
Table of Contents
Introduction................................................................................................................................3
Functional Areas of Woolworths...............................................................................................3
Internal and External Stakeholders............................................................................................4
Nature and degree of main stakeholders................................................................................5
Conflicts of interest between the stakeholders.......................................................................6
Level of main stakeholder influence......................................................................................7
PESTEL analysis to identify the level of stakeholders at Woolworths.................................7
Stakeholder Matrix...................................................................................................................11
Comparison between stakeholders of Woolworths and Westpac............................................12
Conclusion................................................................................................................................15
References................................................................................................................................16

3STAKEHOLDER ANALYSIS OF WOOLWORTHS
Introduction
Woolworths is considered as an Australian supermarket industry which was debuted
back in the year of 1924 on the 5th of December (Parkinson, 2018). The concerned company
is recorded to obtain 80% of the retail industry of the Australian market. The interested retail
chain industry stands on the second rank in Australia concerning the factor of revenue
earning. Woolworths operates in the international and global sector of the retail business
market out of which its primary operational industries are in the country of Australia and
New Zealand. Its first store was recorded to be debuted in the Australian region – Sydney and
at present is known to run around 750 stores alone in the different areas of Australia.
Functional Areas of Woolworths
In the era of the global and modernised area of the business environment, Woolworths
has set up its standard of operation management towards providing quality products and
services to its potential customers (Knox, 2015). Concerning the growth plan of building into
crucial areas of extending their leadership prospects, maximising their goodwill value,
growing new businesses in the global sector and nurturing new as well as existing talents;
Woolworths is concerned with the following functional areas (Rodgers, 2016).
 Human Resource Management – Woolworths concentrates on sustainably
managing its human resources since the HRM is known to be a vital part of any
business organisation. Effective retention of the same helps Woolworths to manage its
business operations in a productive manner.
 Marketing and Promotion – Woolworths have been recorded to invest a
recognisable amount in the field of promoting and marketing the products and
services offered by them. This helps the retail chain industry to increase its revenue.

4STAKEHOLDER ANALYSIS OF WOOLWORTHS
 Production and Sales – Woolworths manufactures its final products as per the
sufficient demand of the customers and the target markets. This helps the company in
increment in its sales and therefore the motive of profit earning.
 Distribution and Supply Chain Management – Woolworths company understands
the fact that only manufacturing the goods and improving the quality of service will
not be enough. The same has to be effectively distributed to the target market. Thus,
the company focuses on leveraging its goods and services productively from the place
of origin to the position of obtainment.
 Customer Service Support – The functions and responsibilities of Woolworths does
not end after selling the goods and services to its target market. The concerned retail
chain industry critically focuses on providing the necessary support to its customers
regarding the needs and issues on the sold products and services.
Internal and External Stakeholders
As stated by Baumgartner & Rauter, (2017), the internal and external stakeholders are
an essential part of a business organisation. In this context, Woolworths believes in the
ideology of building an active group of stakeholders and their partnership indulgence in order
to create a better and sustainable business environment for themselves. This also ensures a
competitive future for the concerned retail chain. Thus, the report tends to investigate the
identification of the internal and the external stakeholders of Woolworths (Methner, Hamann
& Nilsson, 2015).
Internal Stakeholders
 The Employees – Woolworths is recorded to employ over 46, 000 employees every
year for their global operations and help them lead by providing learning
opportunities and training programs to them.

5STAKEHOLDER ANALYSIS OF WOOLWORTHS
 The shareholders – Listed as a JSE and public trade company, Woolworths is
recorded to have several shareholders in the region of South Africa.
 The Debt Funders – The vital source of capital for the concerned retail chain. The
group of these stakeholders are significantly funded to meet the financial obligations
of the business concerning the managing of the related risks to the business.
External Stakeholders
 The Customers – Operating at over 1500 stores all across the globe, Woolworths
have managed to satisfy the needs and requirements of all its peer customers with
their premium quality products and services.
 The Suppliers – A thousand numbers of direct and indirect suppliers provides the
source of goods and use of potential services to Woolworths. Thus, Woolworths is
recognised to offer their suppliers favourable support and facilities to develop the
state of suppliers in the long run.
 The Communities – Woolworths is recorded to operate in South Africa and one other
Sub- Saharan African countries along with its potential markets in New Zealand and
Australia. The concerned retail chain effectively appreciates the need to involve in a
healthy business relationship with the communities and uplift the areas within their
sectors of operation.
Nature and degree of main stakeholders
The nature of the direct stakeholders is described as the parties involved with the
business and its activities, whereas, the nature of indirect stakeholders is defined as the
parties who are not directly involved in the business activities but are affected by the same. In
this connection, the report tends to describe the nature and degree of the major stakeholders
of the Woolworths Company (Ferro et al., 2017).

6STAKEHOLDER ANALYSIS OF WOOLWORTHS
The employees
The employees of the concerned retail chain engage with the strategies of the
Woolworths and also with the business performances. They foster their adequate performance
level in order to increase the value of their self and the organisation altogether. They provide
man force to the concerned retail chain industry and feedback on the necessary changes to be
made.
The Shareholders
The shareholders at Woolworths are known to create a decisive environment of
investment opportunities for the same.
Customers
Leveraging the customers with premium quality of products and services,
Woolworths earn broader marketing opportunities from the customers as their potential
stakeholders. The awareness towards the customer base helps the concerned retail chain to
gain better competitive advantage and loyalty to their goodwill.
The Suppliers
The peer suppliers of Woolworths are known to deliver sufficient and consistent
quality of innovative products. They support the business regions of Woolworths all across
the globe.
Conflicts of interest between the stakeholders
According to the viewpoint of Woods (2017), the conflicts in the stakeholders arises
when the demands and activities of one affect the another. In this connection, the study tends
to undermine the conflicts of interest that occur between the stakeholders of Woolworths.

7STAKEHOLDER ANALYSIS OF WOOLWORTHS
 The rise in the demand of the customers creates pressure on the suppliers to provide
Woolworths with a higher number of raw materials in a short span of time.
 The decrease in the funding by the shareholders creates an issue for the employees to
work effectively in the manufacturing of the final products.
 The lack in the supply of raw materials by the suppliers leads to non- fulfillment of
the wants and desires of the customers.
 The non- effectiveness in the work of the employees, creates a lack in the satisfaction
of the customers.
Level of main stakeholder influence
The stakeholders at Woolworths are vital for its business processes and proceedings
(Bepari & Mollik, 2016). This is so because the stakeholders affect the complete external and
internal working environment of the concerned retail chain. Thus, the study tends to analyse
the level of the influence of the stakeholders with the help of the limitations of the PESTEL
analysis.
PESTEL analysis to identify the level of stakeholders at Woolworths
As stated by Flax, Bick & Abratt, (2016), the stakeholders at Woolworths influence
the plans and processes of the same as per their level of majority and activities in the
concerned retail chain. In this connection, the level of stakeholders at Woolworths is analysed
as below.
Political
Considering the political stability of the regions Woolworths is mainly established in,
the interventions of the government policies and orders create a mild influence in the working
structure of Woolworths. This is because the significant region of the establishment of
Woolworths is in the countries of Australia and New Zealand and the political stability of

8STAKEHOLDER ANALYSIS OF WOOLWORTHS
both the countries regarding the business environment is considered to be stable. However, it
was also examined the involvement of government as stakeholders at Woolworths is deemed
to be at a lower level. The government and its laws are not considered to be a major
stakeholder at the concerned retail chain industry.
Economic
Considering the level of stakeholders at Woolworths, the economic environment
consists of the shareholders and debt-funders of Woolworths. They, in turn, are responsible
for creating the required amount of funding and fulfilling the financial needs of the same
creates a higher level of influence in the working procedures of the retail industry. This is
because the financial requirements are the most primary and crucial needs of any business
and are the same for Woolworths. Non – effectiveness in the financial obligations will create
to the loss in the complete work of the company.
Social
The social environment of the stakeholders at Woolworths consists of its peer
customers and the suppliers the business is connected with. This is because at the end of
every business proceeding the success of the company depends on its sales level. This can be
only successful when the suppliers and the customers are maintained in an effective manner
in the business. Thus, the level of the customers and suppliers as the stakeholders of
Woolworths is considered to be reliable. The loyalty of the customers and their feedback is
what describes the paradigm of Woolworths. The supply of raw materials is necessary for the
production purposes of the company. In this connection, the study tends to state that the
customers are the real kings of the business and the suppliers are essential for the end product
along with the employees. Therefore the needs and requirements of the potential customers,
as well as the payment of the suppliers, should be fulfilled on a timely basis.

9STAKEHOLDER ANALYSIS OF WOOLWORTHS

10STAKEHOLDER ANALYSIS OF WOOLWORTHS
Technological
The technological environment of Woolworth’s stakeholders consists of the
employees of the same. As opined by Almatrooshi, Singh & Farouk, (2016), the employees
are the ones who describe the goals and objectives of any business organisation. The same
theory is applied for the effective and efficient working of Woolworths. In this regard, the
given study tends to state that the employees as the stakeholders of the concerned retail chain
industry create a massive level of influence to the same. This is because the employees are
the ones who are responsible for carrying out all the tasks and requirements of the business
starting from understanding the need of the market, to producing the final products, selling
the same and modifying them with the innovative technologies. In this case, it can be stated
that the employees should be well maintained and supported in order to provide them with
better work journey and retain them in the organisation of Woolworths.
Environmental
The environmental legacy of the stakeholders at Woolworths is considered to be the
communities of the same. It was analysed with the help of the study that the influence of the
communities as the stakeholders at Woolworths is considered to be mild. This is because the
different communities prevailing in the different regions of the business of the concerned
retail chain are not connected to the business activities of the same. However, it was analysed
that Woolworths considers their Corporate Social Investment and leverages towards the
betterment of the communities they are indirectly connected to.
Legal
The legal environment of stakeholders at Woolworths consists of the government and
its taxation policies implemented for the business of retail chain sectors. The study analysed
that Woolworths has effectively followed the rules and orders regarding the tax payments

11STAKEHOLDER ANALYSIS OF WOOLWORTHS
implemented by the government. This leads to the lower intervention of government in the
working processes of Woolworths since they are satisfied with the effectiveness of
Woolworths concerning the laws and policies of taxation maintained by the same.