Woolworths' BUS510 Organisational Learning and Change Project

This project provides a comprehensive analysis of organizational change within Woolworths, an Australian supermarket chain. It begins with an overview of Woolworths' operations and then delves into internal and external diagnoses, identifying factors influencing the organization. The project examines implemented changes, particularly technological and environmental adaptations, and their outcomes. The Johari Window model is applied to improve communication during change implementation. The current challenges faced by Woolworths, such as customer dissatisfaction due to price fixation, are discussed, along with the gap between expected and actual outcomes of technology implementation. Change interventions are explored, and recommendations are made for ethical and effective implementation. The project emphasizes the importance of ethical values in organizational change. Desklib offers a wide array of study resources and solved assignments for students.

BUS510 Organisational Learning and Change
Organisational Change Project
Submitted by: Harpreet Singh
Submitted to:

Table of Contents
Introduction......................................................................................................................................3
Organizational Description..........................................................................................................4
Internal and external diagnoses....................................................................................................5
Analysis of Organizational Change.................................................................................................7
Outcome of changes.....................................................................................................................8
Johari Window Model of change.................................................................................................9
Current scenario.............................................................................................................................11
The gap between current reality and expected outcome............................................................11
Change interventions.....................................................................................................................12
Exploration and selection of change interventions....................................................................12
Recommendations for implementation......................................................................................13
Recognition and application of appropriate of Ethical Values......................................................15
Conclusion.....................................................................................................................................16
References......................................................................................................................................17

Introduction
Implementation of changes to organizational needs, technological advancement and adaptability
towards changing market is one of the major business strategies. Realization by any firm
regarding the need for changes governs the success rates and provides numerous competitive
advantages. For any organization, the changes can be internal and external governed by various
factors. Operational changes are in need to induced majorly when a firm fails to product
profitably and efficient or have a degraded quality of service (Georgalis, et. al., 2015). The
Woolworths is a grocery store chain which has been considered for the case study and
implementation of the operational change project. With advancing customer demands and
induced technological processing, there is an inevitable need for operational changes to be
introduced. The changes must be in compatibility that avails the attainment of better vision and
can safeguard the future of both organization and individuals involved. Following assignment is
an assertion of operational changes when implemented in Woolworths' formulated case scenario.

Organizational Description
According to Woolworths Group (2018), Woolworth is an Australian supermarket and grocery
store chain which is owned by Woolworth Limited. Woolworths was founded by Percy
Christmas, Stanley Chatterton, Cecil Scott Waine, George Creed, Ernest Williams in 1924. It is
specialized in selling groceries products such as fruits, meat, packaged foods, vegetables etc.
Further, it has been indulging in selling magazines, DVDs, health and beauty products,
stationery, and household products. It is currently operating 100 stores in Australia and also deals
online to attract more customers. It has 968 supermarkets and 18 convenience stores with the
home shopping delivery facility. Woolworth introduces its campaign “The Fresh Food People" in
1987 which was till last in 2014 with a new commercial line-up. It introduces loyalty schemes in
which incentives are given to a customer for purchasing in Woolworth store and in the next visit
customer are offered with a discount on products with respect to incentives Woolworth Limited
(2014). Further, it announces rewards and credit card for a customer to provide the best
experience to a customer while purchasing. Woolworth is leading second largest supermarket
across the World and operates four private level brands such as Woolworths Home brand,
Woolworths Select, Woolworths Gold, Woolworths Fresh, and Macro Whole foods Market
which offers household, a premium brand (shampoo, dog food, and food), gold range, fresh food,
and family specific products respectively.
Figure 1: Woolworth Limited
Source: (Woolworth Limited, 2014)

Internal and external diagnosis
Internal and external diagnose plays vital role in change management with the concern of
identifying the factors affecting the organization. It helps in analyzing the situation of the
company in the market and the ability to pay debts or make innovation for customers. Following
are internal and external diagnoses:
Internal diagnosis
Internal environment factors are an affair that occurs within the organization and leads to impact
the organization with the change in environment. Competitors, customers, and suppliers are an
internal factor that impacts the organization and can be controlled.
Customers: Customers are considered as the king of a market which drives the change and
innovation in an organization with the change in demand. Woolworth produces products with the
consent of customers and provides discounts or offers to a customer to make the purchase.
Suppliers: Suppliers is responsible for satisfying customers and low cost of production with the
commitment to supply fresh and quality products. Woolworth uses sustainable sources for the
supply of products and chooses registered or approved farms to bring grocery (Indris, &
Primiana, 2015).
Competitors: Competition is a key to Woolworth and holds a dominating position in the
supermarket with 39% of share in an Australian supermarket. It also has a dominant position in
the advertisement as it increases advertising by 8% every ye
External diagnosis
It is the event that has been taken place outside the organization and difficult to predict and
control which leads to having a strong impact on policies and strategies of an organization. It
includes following factors:
Environment: It is a crucial factor that influences investors, stakeholders, and surroundings
which effect ecological aspects. It includes CSR approach and Woolworth adopted zero food

waste and manages 25% reduction in carbon emission. It develops and implements policies for
ethical sourcing of palm oil, animal welfare, and fish or seafood (Indris, & Primiana, 2015).
Economic: Economy of Australia plays a great role in the retail sector and therefore for
Woolworth business with the fluctuation in the foreign exchange rate which influences import of
products. Economic factor plays a great role in influencing buyers as it affects buying decisions
and power of customers.
Demographic: The most important factor which influences selling and demands of the products.
It is related to the human population and considered as cardinal function as it includes location,
age, sex, race, income, etc. Woolworth brings innovation to attract customers with the launch of
fresh agriculture with demographic alterations (Indris, & Primiana, 2015).

Analysis of Organizational Change
Change in structure, operations, and marketing strategies of the organization are essential
components for business sustainability. Change is the critical aspects for augmenting the efficacy
of management which can be undertaken in response to external and internal factors which helps
in identifying the current necessities of the organization. Being the recognized and trusted retail
supermarket brand of Australia, Woolworth Limited is continuously delivering the best
experience to customers across all stores with the change in technologies and availability of
products in the stores. The Woolworth recognized as leading supermarket and food chain retail
services and liquor business along with the financial services. This organization has been
continuously changing the business environment with the substantial changes to meet the
customer demand and requirements (Millar, 2012).
Woolworth is responding to the new era of technological development and rapidly changes the
way of selling products with the concept of mobile technology and increasing accessibility in
respect to the pricing policy with the idea of price fixation which brings satisfaction among
customers. Change in the organization is about bringing sustainability in the business operation
and give the vision to develop a large base of customers with the changing pricing policy and
adoption of mobile technology. The following are the changes adopted by Woolworth:
Technological changes: Technology is considered a key to development which brings the
organization closer to the customers (Baker, 2012). Technological changes in Woolworth make
shopping easy with the transaction system and helps in expanding at the global level with the
implementation of mobile technology with the social media intervention.
Environmental changes: Woolworth has brought environmental changes in business with the
adoption of corporate social responsibility'. It brings changes in the supply chain of business and
impact cost of production. Woolworth develops a policy of sourcing in respect to food,
vegetables, appliances, and various other items. It adopts ethical and sustainable sourcing
method in relation to fair labor and fair trade of palm oil, fish, seafood, and animal welfare.
Woolworth reduces water usage and carbon emission on per carbon delivery with owned trucks
(Baker, 2012).

Further, it includes SWOT analysis which helps in analyzing the competitive position and
gaining competitive advantage in the market.
SWOT Analysis
Outcome of changes
With the initiation of a change in the organization brings sustainability and stability of the
business operations. The changes cannot be only on an operational level but it contributes to
developing skills of employees with the intervention of new gadgets and technologies in the
environment of an organization. The business operation cannot be in the state of standby mode
due to change in demands and preferences of products with the increasing trends and
competitions. The change in the Woolworth fetches innovations and creativeness with respect to
products and managing satisfaction of the customers (Woolworths Group, 2018). Woolworth
accepted the environmental and technological changes with respect to the customers and
competitors. The expectation is to expand the business and bring advancement in operations to
gain productive hours to produce more products with respect to customer specification.
Strength
1. Market leader
2. Adopted corporate social
responsibility
Weakness
1. Increase in competition and
rivarly in market
2. Various price changing policies to
hold of high customer base
Oppurtunity
1. Increase in shop style with
advance supply chain maangement
2. Increase in interest of customers
with change demand
Threats
1. High rivalry
2.Change in governemnet policies and
tax rates
SWOT

Johari Window Model of change
The Johari window model is used for developing communication between employees in relation
to the implementation of changes. This model is based on two ideas such as 1) acquiring trust
through revealing information and, 2). Develop self-awareness with the feedbacks. The model
works with the aspects of feedback and disclosure. Each individual can be represented with
window panes which include four panes and signifies personal information, feelings, motivation,
information known or unknown to others (Saxena, 2015).
Figure: Johari Window
Source: (Saxena, 2015)
The model includes conveying and accepting feedback aspects which help in developing
communication between employees. This leads to managing intervention of technologies in the

business. Woolworth must adopt this model to develop communication in order to respond to
change and bring productivity in an organization.
 Open area: In this information of individual are known to others by the way of
communication which occurs between employees. It includes feedback solicitations
which help in knowing yourself (Saxena, 2015). Through an increase in open areas
results in a decrease in a blind spot through revealing information.
 Blind spot: It is the area which is not known to self and neither others and with this other
may interpret. It is necessary to communicate information related to change in the
organization to reduce blind spot through discussing the perspective of management with
employees.
 Hidden areas: In this, information is known to management but hidden from employees,
which create a difference and impact relationship between employee and management
(Saxena, 2015). The organization must reveal the information related to changes in
organization in order to develop a perception of employees.
 Unknown areas: This area includes information which is known to management and
employee which is going to happen in future. The communication must be necessary to
decrease unknown areas which help in offering a vision to the organization via discussion
with employees.

Current scenario
The change in an organization depends on the change agent which initiates the changes and
eliminates risk or challenges in implementation. In Woolworth, manager, and employees need
the training to develop required skill with respect to advance technology to oversee changes. In
the current state, every organization is looking to adopt changes and bring innovation in the
organization with the intention to increase customer base. The Woolworth faces challenges in the
implementation of change in technology with respect to change in demand of customers due to
price fixation policy (Woolworths Group, 2018). The customer has to pay fix price of products
with no discount brings dissatisfaction among customers. Change in technology brings
dissatisfaction and revolution among employees.
The gap between current reality and expected outcome
Woolworth faces challenges in the implementation of technology with respect to expected
results. It enhances productivity in the organization but it needs training and orientation of
employee with respect new intervention of technology. The intervention of technology brings
change in operation, structure, and strategies of production. Woolworth deals with the gap
between expected and actual outcome of technology implementation (Woolworth Limited,
2014).

Change interventions
Figure 1: Driving changes in the organisation
(Source: Priol, 2015)
Exploration and selection of change interventions
For Woolworths to be responding to the changing market trends, which is going from offline to
online and are now more of focused on quality of service rather than quantity and cost efficiency,
adoptions in the conventional operational process is inevitable (Barach, 2016). Factors to be
addressed in this change project are:
 Automation
In order to reduce the working errors encountered while processing in manual course, the
company is in need to be introduced with automatic processing (Bolden, 2016). This
includes automatic machinery for stock management and customer handling.
 Web analytics
For a continuous tracking of customer trends, there is an inevitable need for web
analytics to be added to existing online vending and offerings. This enables the company
to know more about their customers and adapt in accordance.
 Fast communication