Analysis of Big W's Operations Using System Thinking (MGT603)

This report presents a system thinking analysis of the operational challenges faced by Big W, a retail company. The analysis begins by identifying the core problem: Big W's struggle to generate revenue and meet customer needs, primarily due to ineffective business processes. The report then delve...Read More

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

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Analysis of the problem
The problem which have been investigated and identified in the assignment one have
pointed out that there have been many concerns related to the complexity with the
management of operations at Big W, a company which was introduced by Woolworths group
in the year of 1964. So far till 2019, the organization have been operating 182 stores under
their leadership, and under the influence of Woolworths group itself. Big W is a retail
company, which have been operating in many parts of Australia and Asia (Feigin, 2016). The
retrial organization sells major food and grocery products to their potential customers through
their various supermarket placed in different parts of Australia and Asia. The organization
takes supplies of grocery and food product from some of the major suppliers of Australia as
well as Asia. Therefore, the organization serves these supplies to their potential customers
through their supermarkets. In spite of all the effort which the management of Big W spends,
the organization have been facing some major problems related to their profit generation.
The stores have been employing about 2200 employee and more under them, across Australia
and Asia as well. However, the market in the Asia as well as Australia is being dominated by
other supermarket organization like Albies, which is one of the largest organization dealing is
stationary goods. Thus, due to this reason, the organization have been lagging behind, which
in turn have led them in losing revenue. As the organization was could not be able to assess
as much as revenue it was estimated by the organizational management, apex level
management members of Woolworths Group have been considering in venturing with other
organizations that have been operating in the sector (Feigin, 2016).
The approach of system thinking would be ideal for Big W, because it would be
helping the organization is incorporating all the necessary factors needed for generating the
estimated profit margin which is expected by the apex level management at Woolworths. It
would be helping them in performing more effectively in the market (Indahati, Fitriani &

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Munajat, 2017)). The system would also help in enhancing the products and service of Big
W, which in turn would be incorporating a competitive advantage. Basically, the tool of
system thinking is used for assessing problems in the systematic behavior and resolving those
problem and providing prominent solution.
Background of System Thinking
In many cases related system issues, one of the major approaches that is led by many
organization for processing those problems related to behavior of system and the analysis of
system constituents is done based on system thinking. The process of system thinking is or
system thinking analysis is estimated to be traditional tool for analysis, which helps the apex
level management of an organization to understand the various system operating in the
organization and also helps them in breaking those system in many elements (Mahalepa &
Goede, 2018). The tool or the process of system thinking can be used in many research fields
and also is applied in many fields of studies such as economics, education system, and
organizational development and understanding of the system.
With the cognitive approach of system thinking, it would the organization in
reinforcing the issues related to system behavior and balancing those processes. Therefore,
the process of reinforcing would lead in increasing the analysis process of system thinking
which would help in incorporating the issues that is faced by the organizations (Mayoza et al.
2018) . Henceforth, the process of balancing the systematic approaches is applied while
applying the application of system thinking in the organization. It would be helping the
organization is maintaining the balance among the systems of the organizations.
CATWOE
The tool CATOWOE is used along with the approach of system thinking for assessing
the identified problem based on the cognitive approaches of the system, recognizing the

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potential stakeholders and also helping the organization in achieving the desired goals. The
tool stand for – customers, actors, transformation process, world view, owner and
environmental constraints.
Customers – It is considered that customers are one of most important stakeholders of any
organization. The consumers of the end product manufactured by the organization, holds the
ultimatum key for their ups and down. From the view point of customers, there have been
some problem at Big W (Mjema, 2018). If there have not been any problems faced by the
customers at the organization, then there would not be have been any problem for Big W in
generating revenue. Customers judge any organization from the basic traits of service and
product they receive from the organization. There have been many times when the
organization have been facing some major problems related to their inventory management.
Some of the products which are essential for the customers have been missing from the
storage of Big W. Hence, the organization were not able to produce those products to their
customers (Mutale et al. 2016). At times, the organization pile their storage facility with
products which are not essential for the customer. Thus, the organization have been facing
problems in gaining profit.
Actors – At this specific part, actors signify the various stakeholders who are the part of the
organization. The actors of the company Big W would compose of employees, suppliers,
management level employees and customers (Parkinson, 2018). Due to the problem at Big W,
the suppliers who are entitled for supplying products to the organization, they have been
facing issues related to the supply orders they get. Thus, due to the uneven supply contacts,
the suppliers have been facing issues in essence of the system of supply.
Transformation process – The organization Big W have been facing problem related their
business processes. Thus, they would be needing some transformation regarding their

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business conduction process (Spillan & Ling, 2015). The current service which is provided
by Big W have been satisfactory. Thus, it would be needing some changes.
World-view – The issue which Big W have been facing problem regarding their non-
effective approaches to business. Thus, the issues would be affecting the organization in
every steps.
Owner – Ownership is determined through the people that are directly involved with the
problem faced by the organization.
Environmental Constraints – The environmental constraints could be signified as the scope
for identifying the budgets, time and various other resources needed for completing the
solutions for the problems.
Root Definition
With the analysis of the problem faced by Big W, the root definition of the problem
would be addressed. The main issue faced by Big W that they cannot handle their customers
need and having been facing problem in generating revenue (Spillan & Ling, 2015). This
problem have raised due to the significant incorporation of business processes led by the
organization.

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Rich Picture
(Source – Author)

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References
Feigin, L. M. (2016). The effects of protests and boycotts on a brand and its reputation: a
case study on Woolworths and boycott, divestment and sanctions (BDS) (Doctoral
dissertation, The IIE).
Indahati, P., Fitriani, R. N., & Munajat, Q. (2017). Knowledge Management System Features
Analysis Using Soft System Methodology: A Case Study of an Agency in the
Ministry of Religious Affairs in Indonesia. Journal of Engineering and Applied
Sciences, 12(12), 3277-3280.
Mahalepa, T., & Goede, R. (2018, January). INDUSTRY NEEDS FOR DATA
WAREHOUSING STUDENTS: USING SSM AS HERMENEUTIC DATA
ANALYSIS TOOL FOR INTERPRETIVE INTERVIEW DATA. In Proceedings of
the 61st Annual Meeting of the ISSS-2017 Vienna, Austria (Vol. 2017, No. 1).
Mayoza, L., Agus, A., Lili, W., & Rizal, A. (2018). ANALYTICAL BUSINESS
DEVELOPMENT ON NEON TETRA (PARACHEIRODON INNESI)
ORNAMENTAL FISH CULTIVATION. GSJ, 6(7), 938.
Mjema, E. A. M. (2018). A SYSTEM THINKING APPROACHING MAINTENANCE,
PRODUCTION AND QUALITY. Tanzania Journal of Engineering and
Technology, 26(2).
Mutale, W., Balabanova, D., Chintu, N., Mwanamwenge, M. T., & Ayles, H. (2016).
Application of system thinking concepts in health system strengthening in low‐
income settings: a proposed conceptual framework for the evaluation of a complex
health system intervention: the case of the BHOMA intervention in Z ambia. Journal
of evaluation in clinical practice, 22(1), 112-121.

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Parkinson, M. M. (2018). Case Study 4: Woolworths Group plc. In Corporate Governance in
Transition (pp. 203-221). Palgrave Macmillan, Cham.
Spillan, J. E., & Ling, H. G. (2015). Woolworths: An Adizes Corporate Lifecycle
Perspective. In Business History Conference. Business and Economic History On-
line: Papers Presented at the BHC Annual Meeting (Vol. 13, p. 1). Business History
Conference.