Strategic Management Analysis Report: Woolworths and PESTEL Framework

This report provides a strategic management analysis of Woolworths, an Australian supermarket chain, utilizing the PESTEL framework. The analysis examines the macro-environmental factors impacting the company, including political stability, globalization support, and wage pressures within the political context. Economic factors such as economic stability, growth in developing countries, and unemployment rates are also assessed. The report further explores social factors like healthy lifestyle trends and cultural diversity, technological advancements like mobile phone usage, and increasing business automation. Legal aspects like food safety regulations and tax reform laws are considered, along with environmental factors such as eco-friendly products and business sustainability trends. The report concludes by highlighting the implications of these factors on Woolworths' strategic direction and overall growth, emphasizing the importance of adapting to both positive and negative environmental influences.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
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Introduction
The report helps in the overall analysis of the different kinds of issues and
opportunities which can be gained from the PESTEL analysis in an effective manner. The
main focus is required to be provided on purpose of analysis along with identification of the
key factors along with their implications are required to be discussed.
Overview of Woolworths
Woolworths is one of the Australian supermarkets or the grocery store which was
founded in the year 1924. The headquarter of the company is in Bella Vista which is situated
in Australia and the number of locations wherein the company is serving is more than 995
locations (Woolworths.com.au.,2018). The employees working in the organization is 115000
till the year 2017 and the major products and services which are being sold by the company
are inclusive of different magazines, household magazine products, stationery items along
with additional more than 19 convenience stores carrying the same kind of logo. Lastly, the
company was owned by Brad Banducci who is the CEO and founder of the organization. The
revenue which has been earned by the company till the year 2017 is A$42.132 billion till the
year 2017 and the company has their presence in New Zealand.
Macro Environmental Analysis of Woolworths
Political Factors- In the political aspects, there are different kinds of factors which are
being considered in order to analyse the opportunity and threat.
 There is huge rate of stability in the market which is one of the opportunities which
can be faced by Woolworths in a positive manner (Hill, Jones & Schilling, 2014)

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 There is huge political support for globalization which proves to be the other
opportunity (Wheelenet al., 2017)
 On the other hand, there is political pressure for higher rate of wages which is threat
Economic Factors- Woolworth is under significant amount of pressure from the
different kinds of economic changes. The different economic issues are as follows:
 There is huge stability in the major economies which is one of the opportunities
 The other opportunity is the continued growth of the developing countries
(Wheelen et al., 2017)
 The other opportunity is related to decrease the unemployment in Australia
Social Factors- There are different diversification along with the trends of the healthy
lifestyle which will prove to the opportunity.
 The first opportunity is relating to healthy lifestyle trend in Australia
 The other opportunity is related to the trend of cultural diversity
Technological Factors- In exploiting the overall opportunity in the innovative
capabilities, this will be beneficial for the success of Woolworths.
 There is increase in the usage of the mobile phones among the customers which is one
of the major opportunities
 The increase in the automation of the business is the other opportunity
Legal Factors- There are few legal issues which can create pressure on the
effectiveness of the firm which are being discussed as follows:
 The first opportunity is relating to food safety regulations (Lasserre, 2017)
 There are different tax reform laws which can create negative impact on the firm

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Environmental Factors- The ecological factors play a major role in the organization
which will be inclusive of the business sustainability in the market.
 The friendly products which are in trend are the opportunity (Doz, 2017)
 The trend of sustainability of business is the other trend
Conclusion
Therefore, from the above this can be concluded that there are different negative
implications of the legal aspects and political aspects which is required to be taken into
consideration as this will be beneficial for the overall growth of the firm in a positive manner.
On the other hand, there are different positive aspects such as environmental and social
aspects which plays a major role in making the company more efficient.

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References
Doz, Y. L. (2017). Strategic management in multinational companies. In International
Business (pp. 229-248). Routledge.
Hill, C. W., Jones, G. R., & Schilling, M. A. (2014). Strategic management: theory: an
integrated approach. Cengage Learning.
Lasserre, P. (2017). Global strategic management. Macmillan International Higher
Education.
Wheelen, T. L., Hunger, J. D., Hoffman, A. N., & Bamford, C. E. (2017). Strategic
management and business policy. pearson.
Woolworths.com.au. (2018). Retrieved from https://www.woolworths.com.au/