MGT603: Operations Management Report: Woolworths Inventory Analysis

This report, prepared for MGT603, examines the inventory challenges faced by Woolworths in Australia, particularly during the COVID-19 pandemic. The analysis utilizes systems thinking tools, including a rich picture, CATWOE (Customers, Actors, Transformation process, World view, Owner, Environ...Read More

Running head: OPERATIONS MANAGEMENT 1
Operations Management
Name
Institution
Author’s Note

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Rich Picture
Introduction
Stakeholders normally play a fundamental role when it comes to the achievement of a vast range
of goals and objectives through an adequate and reliable implementation of different types of
policies (Rothaermel, 2016). Again, the success of failure that is associated with any
organization normally depends on how specific functional areas within the organization are
always combined with an intention of producing or delivering appropriate value to different
stakeholders known to be existing at both internal external parts of the organization.
Additionally, this mode of functions integration is normally being encountered within the

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boundaries of a continuously changing and complex environment. As a result, an appropriate
formulation and implementation of different policies together with strategies always play a vital
role as a given organization puts much effort to maintain its level of success and even go as far
as growing in a more complex and competitive market platform (Feri, Giannetti & Jentzsch,
2016). An appropriate and reliable implementation of a vast range of policies will help
Woolworths to overcome the inventory problem thus providing it with an opportunity of being
able to provide an appropriate and reliable of various products to its customers at any given
point.
Root definition
The manufacture of various essential products like the tissue papers together with
sanitizers will greatly help a wide variety of customers originating from various regions from
getting affected by the virus. Moreover it will provide them with an opportunity of protecting
themselves as much as possible during this delicate time that almost every part of the world is
subjected to this deadly condition. At the same time, increasing level of raw materials within the
organization will provide a perfect opportunity for the manufacturing process to move to the next
level. This will be greatly catalyzed by various stakeholders stepping in to make sure that
appropriate plans are well incorporated through a vast range of policies. There will be need to
put a lot of efforts on customer satisfaction in order to bring on board a good relationship with
customers by making sure that the supply originating from the organization is greater than the
demand that is available across different market platforms. Additionally, another importance of
the company products will also be able to ensure that the spread of the virus is minimized among
the customers. The major obstacle when it comes to solving various issues related to system

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principles is always the definition of the problem. In the real life systems of the organization
different stakeholders will find an opportunity of facing the same issue in a different way.
CATOWE
Customers-Customers are known to the core pillar of the organization. Moreover, they
are the ones to determine the level of supply that should be done form the organization
depending on their needs under various circumstances (Haslett, 2011). As a result, Woolworths
main customers include families together with organizations. Since they are known to constitute
various people with different financial capabilities, there will be no need to implement higher
prices. Still, instead, it is appropriate for Woolworths to take a necessary measure by coming up
with reasonable prices that will be able to accommodate every customer segment. Moreover, the
outbreak of the pandemic has caused serious financial impact to the customers, and since there is
a high demand for both tissue and sanitizer products, it would be much appropriate to implement
a moderate process to meet the needs of these customers as much as possible. It is an act that will
attract their attention and even make them develop the urge to staying with the organization even
after the pandemic.
Actors-There are various actors who are firmly attached to the situation and will also be
in a position of going the extra mile to be part of the entire solution, thus making sure that
various operations are carried out appropriately. Employees are among the significant internal
stakeholders who will be part of the whole situation and will try their level best to help in the
implementation of a vast range of solutions. On the other hand, different external investors will
be part of the project to make sure that it is capable of operating smoothly, thereby minimizing
any loss that is likely to emerge (O'Loughlin, 2013).

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Transformation process- An appropriate management of inventory through the
implementation of modern technological advancements will be the primary transformation
process. Moreover, it will put a lot of focus towards making sure that the organization is capable
of meeting its targeted goals and objectives by eradicating the occurrence of a vast range of
negative issues as much as possible.
World View- Since the situation is an inventory problem, it is clear that it is likely to
lead towards the emergence of serious problems (Huvila, 2016). One of the negative impacts that
will be able to emerge due to the issue is poor customer services that will be able to make the
customer develop conditions of satisfaction since their expectations will not be met. Also, it will
make the organization to encounter severe losses in terms of its cost-effectiveness.
Owner-The manager's office has the authority to control the entire system. It can even go
the extra mile to come up with appropriate and reliable decisions that will make sure that the
solutions are well taken into account to bring a vast range of changes geared towards propelling
the organization towards a positive direction.
Environmental constraints- There is a vast range of ecological constraints that are
likely to prevent the entire system from operating. One of the major constrain is the continuous
change of various government laws and regulations that keep on being implemented from time to
time. This makes it very difficult to swiftly change towards the direction of these laws within the
minimum time possible.
Based on the aforementioned tools, there are various solutions that can be perfectly
implemented to overcome the entire issue thus providing the organization with a perfect
opportunity of becoming very competitive in terms of the products and services that it is capable
of providing to its customers (Ngai et al., 2012). Concerning the first tool, there is the need to

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scale up the rate of production that is taking place within the organization, thus making sure that
the production of goods is taken to the highest level to meet the demand of the customers at any
given time. Appropriate customer service will also lead towards the creation of s strong bond
between the customers and the entire organization (Tereshchenko et al., 2016). As far as the
second tool is concerned, there is the need to put a lot of focus in the entire transformation
process to make sure that a vast range of goals is attained within the shortest time possible
thereby providing the organization with an opportunity to perform maximum across different
market platforms (Yadin, 2013). It is, therefore, clear that customer relationship is significant
and should always take into consideration at all times (David & David, 2016). When talking
about appropriate and reliable customer relationships, this does not only involve how an
organization talks to its customers bust also, the type of products and services that are provided
to them within an appropriate time frame (Toytok, 2016).

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References
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privacy shocks. Journal of Economic Behavior & Organization, 123, 138-148.
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