Strategic Management Process and Woolworths Analysis Essay

This essay explores the concept of strategic management, emphasizing its role in aligning organizational operations with corporate goals for sustained success. It highlights the importance of market assessments, stakeholder consultation, and continuous monitoring in formulating effective strategies. The essay then applies these principles to a case study of Woolworths, an Australian supermarket chain. It provides a detailed background of Woolworths, analyzing its market position, management structure, and strategic initiatives. A comprehensive SWOT analysis is conducted, evaluating Woolworths' strengths (market leadership, pricing strategies, wide offerings, employee policies, and customer knowledge), weaknesses (confused positioning, price wars, and rising costs), opportunities (improving customer experience and expansion), and threats (increased competition and shifting customer focus). The analysis underscores the importance of adaptability and customer-centric approaches in achieving competitive advantage within the dynamic market environment. The essay uses this analysis to illustrate the practical application of strategic management theories and concepts, showcasing how businesses can adapt to changing market conditions and maintain a competitive edge.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the student
Name of the university
Author note

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Part A
The organizations develop strategic management with the objective of aligning the
operations of the venture with the corporate goals for empowering sustenance. The modifications
in the businesses operations relied on the efficiency of the operation while operating as per the
requirementsof the customers (Vom Brocke, Petry and Gonser 2016). In this relation,
Appelbaum et al. (2017) opined that the different alterations that are commenced by the
organizations are developed through corporate plan through to evaluation while controlling the
measures. The strategic intent of an organization is specifically subjective to the alterations in the
market environment and the manner in which the same might be developed through thorough
market assessments.
The strategic management system permits an organization in developing adequate
knowledge on the market environments and thereby developing operations as per the
requirementsof gaining competitive benefits. Lueg and Radlach (2016) stated that the assessment
of the market environment permits an organization in developing knowledge on the diverse
technological alterations and the strategic positioning of the competitors. In this relation, the
market assessments provide wider base of knowledge to the organization with the objective of
developing the resource based view while competing with the existing players in the markets.
The different alterations in the businesses operations are specifically related to the
requirementsof the same in gaining a competitive position in the markets (Williams et al. 2017).
In this relation, the organizations develop efficient strategies through market assessments and
consultation with the stakeholders with the purpose of empowering the competitive benefit of the
same in the diverse economies. Androniceanu (2017) stated that the strategic management
systems of an organization includes an integrated process of continuous planning, monitoring

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and control over the activities of the venture with the purpose of gaining a competitive benefit.
Therefore, the organizations develop a range of strategies and evaluate the same with the
objective of improving the performance in the markets.
The rationality of the strategic management system is specifically based on the logical
interpretation of the market situation and the enumeration of set of strategies for growth and
expansion of the venture in the diverse economies (Bedford, Malmi and Sandelin 2016). The
strategic intent of an organization is specifically based on the effectiveness of strategy
formulation and the manner in which the same might permit growth and sustenance in the
diverse economies. Therefore, the strategic management system of an organization permits the
same in identifying the market prospects through careful study of demand while formulating and
implementing strategies as per the requirementsof the venture.
Part B
Background of Woolworths
The concerned organization, Woolworths, is an Australian supermarket which is owned
by the Woolworths Group. The organization was established in the year 1924 and has been
developing its product base consistently with the objective of developing the operation of the
venture while adhering to the increasing demand of the customers (Woolworths.com.au 2019).
The key alterations that are commenced by the organization was specifically based on the
customer-centric needs. On the other hand, the management structure of the organization permitd
the same in developing a corporate culture which focused more on consumer needs. Woolworths
and Coles developed a duopoly of the Australian supermarkets accounting to about 80% of the
market share in the nation (Woolworths.com.au 2019). The organization developed a wider
range of propositions with the objective of adhering to the requirementsof the Australian

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customers.
Woolworths mostly proposed a range of groceries along with magazines, health and
beauty products, household products and stationery items. The wider array of propositions
permitd the organization in drawing the attention of most of the customers. On the other hand,
the wider expansion of the organization in the Australian markets through around 1000 stores
permitd the venture in drawing the attention of the customers towards the offerings
(Woolworths.com.au 2019).
The organization follows a hierarchical structure which permitd the venture in developing
a strong communication between the management and the workforce. The increased rate of
communication between the managers and the employees permit the venture in improving
collaborative functioning of the different systems as per the requirementsof the customers. The
strategic management initiatives of the organization are again based on the division of teams and
departments which are supervised and controlled. The performance monitoring and controlling
related initiatives of Woolworths permitd the same in improving the performance along with
productivity as per the businesses needs. Therefore, the organization developed a system of
strategic management through the induction of the hierarchical structure through micro-
management.
SWOT assessment of Woolworths
Strengths
 Market leadership
 Managing perceptions
 Wide array of offerings
 Improved Employee policies and
Weaknesses
 Confused positioning
 Price wars with Coles
 Rising cost of operations

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retention
 Good customer knowledge through
market assessments
 Dynamic Promotions
Opportunities
 Improving the experience of the
buyers
 Expansion in the developing
economies
Threats
 Increased competition in the markets
through new entrants
 Shifting focus of the customers
Strengths
 Market leadership: The organization developed a powerful duopolistic situation in the
Australian markets through improved proposition while reducing the threat of
competition. Market leadership of the organization permitd the same in developing a
profitable venture while gaining over the trust and confidence of the customers (Pickles,
Barrientos and Knorringa 2016). The key alterations that are commenced by the
organization are specifically based on the performance monitoring and control
mechanisms while increasing the rate of returns from the operations.
 Managing perceptions through extensive pricing and promotion policies: The
organization devised a range of extensive pricing and promotional policies with the
objective of managing the perception of the people and persuading them to depend on the
propositions made by the venture. The organization designed the customer segments and
segregated their offerings with the objective of continuing with the efficiency of the

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operation while operating in the diverse economies. The flexibility of the pricing
strategies and the promotional operations of Woolworths greatly depends on the
affordability of the customers and their specific line of interests (Battersby and Peyton
2016). Therefore, the organization developed a competitive benefit through considerable
alterations in the pricing and promotional activities while increasing the middle class
segment by 55% (Price 2016).
 Wide array of offerings: The organization aimed at providing the customers with a wide
array of propositions with the objective of drawing the attention of the prospective
customers and meeting their profitability goals. The key modifications in the businesses
operations are specifically based on the efficiency of the operation while operating in the
diverse economies. The wider range of offerings permitted the venture in increasing the
sales volume while adhering to wider range of customer demands.
 Employee policies: The organization developed policies that would permit the venture in
retaining the trust and cooperation of the employees through enhanced rewards and
recognitions apart from remuneration (Pulker et al. 2018). On the other hand, the training
and development programs permitted the organization in instilling the culture among the
employee groups. Therefore, the employee policies of the organization permitted the
same in retaining the satisfaction of the employees while operating on the diverse
businesses goals.
 Good customer knowledge: The market assessments and surveys that are conducted by
Woolworths permitd the same in identifying the changing requirementsand preferences of
the customers (Thornton et al. 2017). The assessment of the requirementsand changing
behavior of the customers permit the venture in positioning their offerings as per the

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requirementsof gaining economic sustenance while operating in the diverse economies. It
has been noticed that the organization also kept a track of customer shopping bills from
different physical stores with the objective of efficiently managing their inventories.
Therefore, market assessments and wider knowledge of the customer preferences permitd
the venture in developing a customer-centric operationalization culture in the business.
 Dynamic promotions: Woolworths follows a dynamic promotional strategy through
their integration with different social media platforms (Pulker et al. 2018). The social
media integration policies permitd the venture in maximizing the rate of awareness
among the customers which added to their competitive value while operating in the
Australian markets.
Weaknesses
 Confused positioning: The concerned organization, Woolworths, targets a wider range
of income groups which might affect the capability of the organization in positioning
their propositions effectively as per the requirementsof the target customers. The
organization undertakes a survey of the continuous alterations in the preferences of the
customers but the confusion for positioning the propositions remain while operating in
the diverse economies.
 Price wars with Coles: The increased competition with Coles based on pricing of the
propositions have affected the rate of profitability of the venture while drawing the
attention of the prospective buyers. It has been noticed that the pricing wars with Coles
have greatly contributed to the lower priced offerings made by Woolworths with the
purpose of retaining the loyalty of the customers (Beaton-Wells and Paul-Taylor 2017).

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 Rising cost of operations: The rising cost of operations like cost of labor have
minimized the margins earned by the organization through every transaction. The rising
costs also affected the capabilities of the organization in strengthening the R&D based
operation of the same which restricted the potency of the business in developing their
resources as per the requirementsof the customers.
Opportunities
 Improving the experience of the buyers: The improvements in the experience of the
buyers would permit the organization in drawing and retaining the attention of the
prospective millennial buyers towards the propositions that are made by the venture. It
has been noted that the millennial (GenY) encourages experience over the price of the
offerings. On the other hand, it has been found that around 31% of the Australian
population constitutes of millennials (Pulker et al. 2018). In this relation, the
organization might take steps to improve the experience associated with the offerings
with the purpose of improving the rate of sales volume in the Australian markets.
 Expansion in the developing economies: The expansion of the organization in the
developing economies would permit the venture in finding cheap labor for the operations
apart from prospective buyers. The increasing rate of disposable income among the
prospective customers would permit the venture in drawing the attention of the customers
towards the distinguished propositions that are made by the same.
Threats
 Increased competition in the markets through new entrants: The increased rate of
competition that is being faced by the organization, Woolworths, through maximized rate
of new entrants affected the operations of the venture. The new entrants in the market

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offered similar products at a lower price which affected the organization through loss of
loyal customer base to the competitors. On the other hand, the price wars with Coles has
also affected the rate of sales of the venture.
 Shifting focus of the customers: The shifting preferences of the customers from readily
available products to the healthy consumption habits of organic and chemical free
products affected the rate of operations. The modifications in the preferences of the
customers restricted the capability of Woolworths in retaining the brand position.

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References
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Woolworths.com.au., 2019. Woolworths Supermarket - Buy Groceries Online. [online]
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Appendix
Figure: Organization chart of Woolworths
(Source: Woolworths.com.au 2019)