System Thinking Report: Analysis of Woolworths for MGT603

This report presents a system thinking analysis of Woolworths' operational management, addressing issues related to inventory, customer satisfaction, and overall business performance. The report begins with an introduction to system thinking and its application in understanding complex organizational behaviors. It then analyzes the problems faced by Woolworths, particularly in inventory management, where the company experiences both shortages and excesses of products. The report utilizes the CATWOE framework (Customers, Actors, Transformation process, Worldview, Owner, and Environmental constraints) to provide a structured analysis of the stakeholders and their perspectives. A Rich Picture is included to visually represent the complex situation and relationships within the company. The root definition of the problem is identified as issues in handling customer needs, inventory management, and service delivery. The report concludes with recommendations to improve the supply chain and enhance customer satisfaction, including suggestions for inventory management and offers to retain customer loyalty. The report is a comprehensive application of system thinking tools to a real-world business problem, providing insights into organizational challenges and potential solutions.

Running head - SYSTEM THINKING
System Thinking
Name of the student
Name of the university
Author’s note

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Background of System Thinking
One of the major approach that leds by many organizations for the processing of
issues regarding system behaviors and analysis that focus on the system’s constituent part is
system thinking (Mjema, 2018). The system thinking management or system thinking
analysis is considered to be a traditional analysis, that helps in understanding the various
system sand breaking them into many separate elements (Mutale, et al., 2016). The process of
system thinking could be used any kind of research area and is applied to various other fields
of studies like – medicine, economics, educational system and many more.
According to the process of system thinking, the system behavior results in many
reinforcing and the balance of the process itself. The reinforce processing leads to the
increase in the system thinking, which eventually leads the system to collapsing (Twisk, et
al., 2015). Thus, balancing process is applied which using the application of system thinking
as it helps in maintaining equilibrium in the particular system.
Analysis of the problem faced
The problem that have been addressed in the assignment one describes the various
complexity concerns within the operational management of the organization Woolworths
Company. The concern that have been raised within the organization regarding the
operational management of Woolworths Company could be classified by representing them
in various hypothetical issues (Parkinson, 2018). The issues have been effecting the various
stakeholders of the organization and have been disrupting in conduction in business of the
organization. There have been issues regarding collecting resources for the business as the
organization is responsible for supply the collected inventories to the fellow customers.
Woolworths Company is a retailer organization that operates in major part Australia
and as well as New Zealand. The retail organization supplies major food and grocery

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products to their customer by setting up various supermarket at different parts of the two
major Oceanic countries. The organization is considered to be the second largest organization
in Australia in terms of revenue. The organization takes supply of the grocery and food
products form the major supply groups at Australia and serve them to the customers as end
products. In the recent years, Woolworths Group have taken up the dealership of supplying
liquors to many of the leading hotels and also have opened by liquor shops at the their retail
store. In essence to that, the organization have also started a standalone media business
known as Cartology. This sector of Woolworths Group takes up all the business related with
the communication process (Feigin, 2016). The sector helps the organization is
communicating with all the major suppliers, partners and the customers.
Despite all the efforts put by Woolworths Company, the organization have been
facing issues regarding their operational management and customers’ satisfaction.
One of the main issue that Woolworths Company have been facing is in assessing the
inventory that they stock which they serve the customers. Most of the inventories that is
stored by the organization are all the major products of food, both fresh and preservatives
kind all the other grocery products that is essential for the public in their day to day lives.
These products are essential for the people as this are the necessary essentialities for the
people. In this major sector of operational management, Woolworths is lagging behind.
While taking stocks from their suppliers, sometimes, Woolworths is taking up huge lot of
supply from them and also in times they are picking up short lots of supplies that is leading to
shortage of goods in the retail shop (Spillan & Ling, 2015). This excesses and shortage of
products is impacting a huge influence on the customers’ as they are not getting the necessary
products from the supermarket. The organization is also not able to produce the necessary
service that is wanted by their customers as the organization is not aware of the needs of the
customers too.

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CATWOE
CATWOE stands for – customers, actors, transformation process, world view owner
and environmental constraints.
Customers - One of the most important stakeholders of any organization is customers. They
holds the vicissitudes of the organization, as they are the one who buys the products of the
customers. From the point of view of the customers, problems in the organization is seen
from different point of perspective. If they are not getting the service that they are entitled
for, then eyebrows would be raised against the organization (Indahati, Fitriani & Munajat,
2017). The customers of Woolworths have been facing some major problems regarding, as
there are times when they are finding themselves in shortage of products that they needed the
most from the organization. There are times also when there is a huge stick of same products
or items that the customers already possess. The customers are facing these major issues at
Woolworths. The customers are also stating that are getting the similar products at other
markets or retail shops in much lowers prices. Thus, they are facing a dilemma reading the
brand loyalty against Woolworths (Mayoza et al., 2018).
Actors – By actors, the main references goes to various stakeholders of the organization
itself. The actors in the organization composes of the suppliers, the employees at both
management and lower level and customers of the organization. Due to the issue in the
organization, the suppliers that supply the products to the organization faces problems due to
the uneven consignment that they get from Woolworths organization (Trongtortam et al.,
2018). They suffer loss in their business as there is no constant flow of chain in the supply
that they get from the organization. The employees face problems to due to the low sells at
the retail shop.

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Transformation process - The organization needs a change in their process of business or
adapt and new form of business. The current form of service that is provided by Woolworths
is not satisfactory as other retailers sell the products in lesser price than that of the
Woolworths sell the products. This is a concern as the customers would be changing their
brand loyalty too. Thus, they would be needing new ways of business so that they could hold
the customers to them.
World-view – The issues that are faced by Woolworths would be effecting the business on
long-term basis. The issues would effect the service produced by the organization.
Owner – In this tool, ownership is determined as the people that bare directly involved with
issues faced at Woolworths Company. Various stakeholder are linked with the problems
(Mahalepa & Goede, 2018).
Environmental Constraints – The environmental constraints are signified as the budget,
different resources, and the time constraint of the organization.
Root Definition
From the analysis of the problem, the root definition of the problem that could be
addressed for the problem that is faced by Woolworths is that they are facing a problem in
handling the customers. The problem are inventories the shortage and excess of inventory
that is stored by the organization and the service provided by the organization.
Solutions
Some of the recommendation that could be made regarding the issues faced by the
organization is that they should be changing policy of supply of good form their prominent
supplier. A constant flow in the chain of supply of the products should be maintain by
Woolworths so that they never go out of stock of the products.

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The organization should also offer attractive offers on their products so that got stop
the customers form changing their brand loyalty.
Rich Picture
(Source – Author)

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