Organisational Change Project: Analysis of Woolworths Supermarkets

This report examines organisational change within Woolworths Supermarkets, a major Australian retailer. It begins with an introduction to the company, followed by an analysis of its internal and external environments. The internal analysis utilizes a SWOT framework to identify strengths, weaknesses, opportunities, and threats, while the external analysis employs a PESTLE framework to assess political, economic, social, technological, legal, and environmental factors. The report then delves into a literature review of change management theories and models, with a focus on Lewin's Change Management Model. Subsequently, it evaluates potential strategies to address identified areas needing change, offering specific recommendations. The report concludes by outlining the resources needed to implement the proposed strategies. This comprehensive analysis aims to provide a strategic framework for managing and implementing organisational change within Woolworths, enabling the company to adapt to market dynamics and enhance its competitive position.

Organisational Change
Project

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Introduction to organisation........................................................................................................3
Internal and external analysis of company to determine areas that requires change.................4
Literature Review – background of change management theories or models..........................7
Evaluation of possible strategies to change needed to improve the situation.............................8
Recommendations of most appropriate strategies.......................................................................9
Needed resources for executing the identified strategies............................................................9
CONCLUSION..............................................................................................................................10
REFERENCES .............................................................................................................................11

INTRODUCTION
Change is concerned with the process of causing a practice or function to become
distinct somehow compared to present or past situation of it. It is a constant process that firm
undergo in order to stay competitive in market and achieve high growth and success (Al-Haddad
and Kotnour, 2015). This report is based on Woolworths Supermarkets which is one of the
largest Australian company which deals in retail sector. The organisation was established in year
1924 and is headquartered in New South Whales, Australia. The project intent to analyse
organisational change for which a case study of company is develop that needs a change
intervention. This report covers overview of company along with analysis of internal and
external environment to determine required change areas within firm. Moreover, change
management theory and models are defined and possible change strategies are evaluated to
improve the situation. At last, recommendations are provided along with needed resources that
helps in executing change strategies within firm and summary of key points covered in entire
report is included as conclusion in the project.
MAIN BODY
Introduction to organisation
Woolworths Group is one of the well known organisation and a leading food retailer of
Australia. The main operations of organisation includes liquor retailing, supermarkets, discount
department stores, pubs and hotels under leisure and hospitality group in Australia. The group is
specialises in supermarket operations and consumer stores as well as also engage in procurement
of liquor food and other products. The company is valued approximately $40 billion by market
capitalization and is considered as one of the ASX's 'defensive' customers staples industry stocks
by its investors. For financial year 2017/18, the annual gross yield of Woolworths was 4.87%
(Woolworths Group (WOW), 2019). The main mission of company is to deliver the best in
value, convenience and quality for customers. The firm employs around 201,000 employees who
a serves more than 29 million customers every week across its brands (Woolworths Group,
2019). The company undergoes a change by introducing new automated distribution warehouses
which helps in stock more products. It switch from manual workforce to automated workforce
that helps in improving its productivity and performance. This is one of the largest investment of
firm in infrastructure with the expectation to deliver significant productivity, efficiency and

safety. The company is highly committed towards winning trust of customers as well as
maximize its share of food spend of customers by lowering prices and enhancing their shopping
experience. The Woolworths supermarket has an extensive network and is a market leader in
Australia in food retail and grocery and acquires over 80 percent of market share. The firm
operates approximately 1000 stores in all across the Australia out of which 976 are supermarkets
and 17 are convenience shops (Binder, 2016).
Internal and external analysis of company to determine areas that requires change
In today's competitive business environment, retail industry is one of the rapidly growing
sector that highly contributes in economic development of country. The business environment
consist of numerous internal and external factors that creates various opportunities and threats
for company and impacts its operations.
Internal Analysis:
Woolworths is a leading supermarket chain of Australia that has large product portfolio
including vegetables, groceries, bakery products, footwear, clothes, home furnishing etc. For
determining the impact of business environment factors and the areas that requires change, it is
very necessary to analyse internal and external surroundings of business (Blanco-Portela and et.
al., 2017). For analyse the internal environment of Woolworths, SWOT analysis is conducted
which helps in determining strengths, weaknesses along with opportunities and threats. The
SWOT analysis in context of refereed organisation is mentioned below:
Strengths: Market leadership: The retail market of Australia is lead entirely by Coles and
Woolworths who are the 2 key players. In this context, the company enjoys strong
leadership in market with holding of 80% market share which declines the threat of
competition for it drastically (SWOT analysis of Woolworths, 2019).
 Promotions: Aggressive promotional strategy is following by company in which it
informs customers every week regarding the offers that run. It also emphasize on value
proposition by keeping the lowest entry level prices in market.
Weaknesses: Price wars: The organisation always faces price war with its strongest competitor Coles.
In order to undercut the rivalry, the supermarket has ended up devising major pricing
blunders which results in major losses.

 Partial behaviour of Woolworths to certain markets: The business entity targets both
premium and value segment, selling both aspirational and affordable products. Even so,
the firm is notable to be partial towards segment of higher income offering them better
products and services and giving more attention (Bourne, 2016).
Opportunities: Focus on experience: Each retail sector offers the same to value segment. Being able to
be distinct in in-store experience is the opportunity for Woolworths. It can involve
personalized services, self check out system, shopping assistance based on artificial
intelligence or personalized loyalty schemes. These will assist to differentiate and firm
can charge extra who wants to avail such technology based services.
 Focus on health conscious customer group: In industry, people are now becoming more
conscious about their health which provides an opportunity to company to manufacture
and offer such products which are beneficial for the health of people. Bringing change in
product portfolio by including chemical free and organic products can be an opportunity
for Woolworths (Carnall, 2018).
Threats: Competition: In the retail market of Australia, the biggest competitor of Woolworths is
Coles. Apart from this, the online retailers such as Amazon is now also engage in food
retailing which creates a serious threat for company.
 Changing preferences of customers: The constantly increasing concern and awareness
about health is making the people more conscious of what they buy. Changing needs and
preferences of customers creates a threat for Woolworths.
External Analysis:
External environment consist of various macro factors that influence operations and
activities of firm in both positive and negative manner. The management of Woolworths requires
to assess the external environment in continuous manner so as to analyse the impact and bring
changes within operations of firm if needed (Cocks, 2014). PESTLE analysis framework is used
to analyse the external environment which consists of six factors which are mentioned below in
context of company:
Political factor: This aspect is concerned with factors like tax policies, political stability,
tariffs, tax regulations etc. which impacts the functioning of business. Being a leading brand,

there are some political forces that influence operations of Woolworths. In Australia, the retail
market is politically stable, thus, making the company more stable in host nation. In retail
market, the duopolistic nature of company exerts political pressure over it which impacts its
operations (D'Cruz and Noronha, 2014).
Economic factor: Inflation rate, deflation, fiscal policy, economic condition of country
etc. are the factors included in it. The forces like high unemployment rate and recession has
strong influence on financial performance of firm as these can lead to decline in sales. In
financial year 18-19, the company faced reduction in profit margins because of high stock loss.
Increased cost of raw materials increases the cost of its products which ultimately declines its
profit margins. In-spite of financial disruption, the company is performing better in Australian
market because of more stability.
Social factor: It is concerned with changing needs, attitudes, beliefs and behaviours of
customers. The Australian people are becoming more concerned towards their health and prefer
to eat healthy food which may influence the operations of company as it requires to add healthy
options in its product portfolio (Davies and Brady, 2016). If Woolworths is not able to satisfy
needs of customers then it will impacts on its profitability ratios. The company has taken this
into consideration and put forward a step by determining the changes in social context and
started selling its products at lower prices.
Technology factor: It includes rate of technological diffusion, changes in technology etc.
Currently, people and organisations both become technology savvy which makes it essential for
organisation to use technological processes. In order to provide better quality service to
customers, the company has embarked upon being tech savvy. For improving the efficiency of its
operations, the company implements SAP based merchandising system. As Australia is known
for its technological advancements, constant adoption of new technology helps company in
maintaining its sustainability in market.
Legal factor: This factor is concerned with laws, regulations and policies made by
government of Australia. Compliance with laws and regulations is necessary in order to run
operations successfully (Heckmann, Steger and Dowling, 2016). The refereed company strictly
follows all governmental regulations which helps it in running its operations sustainably.
However, any transformations in legal requirements associated with employment, product safety,
competition, consumer protection etc. will directly influence the operations of Woolworths.

Environmental factor: This force includes climate change, weather, attitudes of people
towards green products etc. Woolworths indulged in environment friendly practices by investing
its resources in reducing the carbon footprint of company and wastage of resources. This helps it
in running its operations successfully in the country. However, if company uses such processes
or systems in business that may harm the environment, then it will influence negatively on its
operations and firm may face criticism from government and society (Lozano, Nummert and
Ceulemans, 2016).
By analysing the internal and external environment of company, it can be said that
company requires to bring changes in its product portfolio by including organic products in it.
Apart from this, company also requires to implement technological systems and processes within
firm in order to enhance experience of customers. Moreover, the firm also needs to bring
changes in its pricing strategies by setting standard price for its products and offer these with
similar quality to all types of customers.
Literature Review – background of change management theories or models
Change management refers to the process that helps in managing the change within firm
in order to ensure effective accomplishment of goals. It is a systematic approach to deal with
transformations that takes place in processes, technologies and goals of company (Mir and
Pinnington, 2014). This helps an organisation like Woolworths to move from current situation to
desired future state. At the organisational level, changes influence the managers as well as
employees. There are various factors which are responsible for change within firm and it is
necessary for management of company to manage the change in an effective and efficient way.
There are some change management theories and models that can be implement by firm for
managing change in appropriate way.
As per the view point of Anastasia, 2015, Lewin’s Change Management Model is one
of the effective framework that enables manger to understand structured change within firm. This
model consist of three phases including unfreeze, change and refreeze. In first stage is associated
with preparing for change in which the organisation and its employees requires to prepare for
change and have proper understanding and awareness regarding importance of change within
firm. Organisation like Woolworths requires to communicate with its workforce that why
existing processes needs to change and how it can benefit the organisation. In the second stage,
the change takes place within firm (Major Approaches & Models of Change Management,

2015). In this stage, good leadership plays crucial role in providing employees with right
direction and making the process easier for them. At this stage, communication and time plays
crucial role in executing the change successfully. In the Refreeze stage, the change is now been
implemented, accepted and embraced by people and the situation starts to become stable again.
This framework helps management in managing the changes effectively within firm.
Apart from this, Nudge theory is the another approach which helps company in
managing change. This theory is based on the concept of nudging someone or inspiring them to
change. It is assistive and exploring the existing impacts as well as understanding and explaining
them in order to eliminate or change them to the degree where positives starts to derived. This
theory seeks to work on administration and understand impact on behaviour of human that leads
to change people. The theory emphasize on design of choices that is accountable for influencing
choices and directing preferences that an individual makes. The main advantage of using this
theory within firm is that it considers the differences in knowledge, opinions and feelings of
individuals and also takes in account the reality of circumstance and characteristics of human
behaviour and nature (Waddell, Creed, Cummings and Worley, 2019). Therefore, reduces the
employees resistance for change and helps in effectively manage it within firm.
Evaluation of possible strategies to change needed to improve the situation
By internal and external analysis of firm's business, some areas are identified that
requires change in order to improve the situation. The firm is facing issue of declining sales of
products due to changing needs of customers and their increasing awareness regarding health. It
also requires to bring changes in its processes and systems by implementing technology. For
managing the technological changes within firm, some possible strategies that Woolworths
requires to adopt are mentioned below:
Providing training to employees: For managing the technological changes in effective
way, it is required by Woolworths to provide appropriate training to employees. The training
related to aware employees about change helps in managing it effectively. In this training, the
information about the need of change and its impact on organisational performance requires to be
communicated by manager to their staff members so that they enable to handle them in proper
way (Ceulemans, Lozano and Alonso-Almeida, 2015).
Providing standard quality products to all: As the company is known in market for its
partial behaviour, for improving the image of company in market, the management of

Woolworths requires to provide standard quality products for all group of customers at similar
prices. This will helps company in gaining trust of customers and improving its partial image in
market. Apart from this, firm also requires to emphasise more on providing products as per the
needs of customers and include healthy options in its product line.
Pricing strategy: The company requires to emphasize on its pricing strategy as the
current target audience of firm is premium group, company uses penetration pricing strategy, but
set prices lower to its competitors (Janssen, Van Der Voort and van Veenstra, 2015). Any change
in economic factor influence the prices of products. If the prices of products is much high, then
other people may not to able to buy its products. So, company requires to emphasize on prices of
its products in order to ensure that they are affordable to customers and supports in gaining
competitive advantage over rivals.
Recommendations of most appropriate strategies
As per the above analysis, it is recommended to Woolworths that it should emphasize on
providing training to employees on continuous basis so as to ensure that their skills and
capabilities will be enhance and they are enable to deal with challenges effectively and adopt and
manage the changes in an appropriate way. Apart from this, the management of company should
be updated with technological advancements that takes place within firm as this can assist in
understanding, adopting and implementing them effectively within the firm. Apart from this,
business entity should introduce new products in its product line. As the needs and preferences of
customers are changing very frequently and they are they are becoming more aware about
benefits of eating healthy food, company should include chemical free or organic food products
in its stores. It can also take advantage in market over its competitors by engaging in
manufacturing of healthy food products.
Needed resources for executing the identified strategies
Proper formulation and implementation of strategies requires some resources. For
executing the above identified strategies, the resources required by company includes adequate
amount of funds. In implementing change and providing training to employees, managers of
Woolworths requires to have adequate funds so as to conduct training session and hire skilled
professionals for providing training to employees in proper way and enhancing their knowledge
regarding change, how to manage it, the importance of change as well as the way to handling the
challenges and technology in an effective and efficient manner (Brones, de Carvalho and de

Senzi Zancul, 2017). The another resource which is needed for executing the strategies is
appropriate amount of time and human resource which is required to implement the strategies in
proper way. Skilled and experienced human resource will help business entity in executing the
strategies appropriately and leading the firm towards growth and success.
CONCLUSION
As per the above mentioned report, it has been concluded that change is a crucial process
that every organisation requires to undergo in order to attain growth and success in market and
gaining competitive edge over rivals. Analysis of internal and external environment of firm aids
in determining the factors that impacts on operations and strategies of firm and identifying the
areas that requires change. Use of frameworks like Lewin’s change management model and
nudge theory will assist company in managing the change in effective manner within firm. There
are some strategies that can be implement by company such as providing training to employees,
changing pricing strategy etc. so as to improves productivity and performance and enhance profit
ratios of organisation.

REFERENCES
Books and Journals
Al-Haddad, S. and Kotnour, T., 2015. Integrating the organizational change literature: a model
for successful change. Journal of Organizational Change Management. 28(2), pp.234-
262.
Binder, J., 2016. Global project management: communication, collaboration and management
across borders. Routledge.
Blanco-Portela, N. and et. al., 2017. Towards the integration of sustainability in higher education
institutions: a review of drivers of and barriers to organisational change and their
comparison against those found of companies. Journal of Cleaner Production.166,
pp.563-578.
Brones, F.A., de Carvalho, M.M. and de Senzi Zancul, E., 2017. Reviews, action and learning on
change management for ecodesign transition. Journal of Cleaner Production, 142, pp.8-
22.
Bourne, L., 2016. Stakeholder relationship management: a maturity model for organisational
implementation. Routledge.
Carnall, C., 2018. Managing change. Routledge.
Cocks, G., 2014. Optimising pathways for an organisational change management programme.
The TQM Journal. 26(1), pp.88-97.
Ceulemans, K., Lozano, R. and Alonso-Almeida, M., 2015. Sustainability reporting in higher
education: Interconnecting the reporting process and organisational change management
for sustainability. Sustainability, 7(7), pp.8881-8903.
D'Cruz, P. and Noronha, E., 2014. Workplace bullying in the context of organisational change:
The significance of pluralism. Industrial Relations Journal. 45(1), pp.2-21.
Davies, A. and Brady, T., 2016. Explicating the dynamics of project capabilities. International
Journal of Project Management. 34(2), pp.314-327.
Heckmann, N., Steger, T. and Dowling, M., 2016. Organizational capacity for change, change
experience, and change project performance. Journal of Business Research. 69(2),
pp.777-784.
Janssen, M., Van Der Voort, H. and van Veenstra, A.F., 2015. Failure of large transformation
projects from the viewpoint of complex adaptive systems: Management principles for
dealing with project dynamics. Information Systems Frontiers, 17(1), pp.15-29.
Lozano, R., Nummert, B. and Ceulemans, K., 2016. Elucidating the relationship between
sustainability reporting and organisational change management for sustainability.
Journal of cleaner production. 125, pp.168-188.
Mir, F.A. and Pinnington, A.H., 2014. Exploring the value of project management: linking
project management performance and project success. International journal of project
management. 32(2), pp.202-217.
Waddell, D., Creed, A., Cummings, T.G. and Worley, C.G., 2019. Organisational change:
Development and transformation. Cengage AU.
Online
Woolworths Group (WOW), 2019. [Online]. Available through: <>https://www.ig.com/au/news-
and-trade-ideas/shares-news/top-10-largest-australian-companies-by-market-
capitalisation-190130#woolworthsgroup

Woolworths Group, 2019. [Online]. Available through:
<https://www.woolworthsgroup.com.au/page/about-us/>
SWOT analysis of Woolworths, 2019. [Online]. Available through:
<https://www.marketing91.com/swot-analysis-of-woolworths/>
Major Approaches & Models of Change Management, 2015. [Online]. Available through:
<https://www.cleverism.com/major-approaches-models-of-change-management/>