Report: Assessing Woolworth's Structure, Innovation, and Performance

This report provides an in-depth analysis of Woolworth's organizational structure, focusing on its hierarchical nature and the strategies employed to foster innovation and enhance business performance. The study examines the impact of the company's structure on idea generation, employee motivation, and the implementation of new technologies, such as digital business and in-store innovation labs. It highlights how Woolworth's structure facilitates communication, resource allocation, and employee engagement, leading to improved customer satisfaction, sales growth, and overall business efficiency. The report also discusses the impact of these structural elements on Woolworth's financial performance, including increased sales, reduced net debt, and higher dividends, providing a comprehensive overview of the relationship between organizational structure and business outcomes. Recommendations are provided to further improve the structure and its impact.

Impact of organisation
structure on management
innovation and performance

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Executive summary......................................................................................................................1
Introduction of the company........................................................................................................1
SECTION 1......................................................................................................................................1
Company's Organisational structure, strategies and possible reasons.........................................1
SECTION 2......................................................................................................................................4
Impact of the company's structure on business Innovation.........................................................4
SECTION 3......................................................................................................................................5
Impact of the company's structure on business performance......................................................5
RECOMMENDATIONS.................................................................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Organisation structure is having great impact on innovation and performance of the
company as having a well organised structure helps the company to bring good communication
and that results in sharing of ideas(Bhowmick, 2015). Present study is based on the company
Woolworth that was founded in the year 1924 by Edward Chatterton. It is an Australian Grocery
store chain accounting about 80% of the Australian market. Report includes Woolworth's
organisational structure and different strategies that the company is using. Report also give
Impacts of the company's structure on innovation and finally on its performance. Proper
recommendations have been given with respect to organisational structure and innovation so that
business performance can get enhanced.
Executive summary
The report provides an analysis of organisational structure of Woolworth that is an
Australian Grocery store chain. The report was prepared in order to draw attention about impacts
of organisation structure over innovation and business performance of Woolworth in order to
recommend different ways for improving the business activities.
Introduction of the company
Woolworth Supermarkets is an Australian supermarket chain that was founded by
Stanley Edward Chatterton in the year 1924 in Australia, headquarter in Bella Vista, New South
Wales. Company is operating with more than 1000 stores and 976 supermarkets. Woolworth is
also operates online and having its own website that is Woorlworth.com.au. It is originally
known as Home shop as it is very easy for the customers to just click and collect the desirable
items. They are the most innovative retailers in the Australian market and provide there
customers easiest way to shop and feel comfort with the use of Woolworth Supermarket App that
helps the customers to shop at home.
SECTION 1
Company's Organisational structure, strategies and possible reasons
Organisational structure of Woolworth:-
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Figure:-1
Company is having Hierarchical organisational structure as company is having a direct
chain of command from top level to bottom level of the organisation(Cho and Wayman, 2015).
Decisions are taken by top management and are implemented to its subsidiary levels of the
management. The present CEO of the company is Mr. Brad Banducci, Independent chairman is
Gordon Cairns and there are five Independent Non- Executive Directors in Woolworth.
Whenever any strategy is in need to be implemented then the final decision is of top management
only. Different managers are there in order to monitor and guide the employees so that they can
work more effectively. All the employees are set free to share there ideas so that some
innovation is there and firm can raise its business with help of innovative ideas and can bring
competitive advantage to the firm(Clauss, 2017). If any issue arise at bottom level then it is
passed to top management with the help of managers and the final decision usually comes from
top management only. Top managers listen to all the respective problems of the junior staff and
make effective strategies so that these problem do not arise again and again. Employees are
getting good opportunities and are always motivated to work effectively in order to have
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Illustration 1: Organisation structure

promotions. Mangers are focusing on each individual employee and never be partial to them.
That is the reason employees of Woolworth are very loyal towards the company.
Strategies:- Woolworth always come up with innovative strategies that helps in improvement in
business activities. There are many strategies that company have used in these years:-
 Company have increased its pick up sites to 2,900 stores over the years and is employing
1,875 employees as team members. Not only this company have made strategy to
improve its social media sites so that it become more attractive for the customers to visit
these sites as it leads to customers satisfaction(Alagaraja and Shuck, 2015). They are
transforming there business with the help of innovative technology and is focusing on its
online sales. They are giving discounts to the customers so that they are attracted towards
the firm and can bring competitive advantage.
 Company is also updating the current stores and making it more attractive and
comfortable for the customers so that they can have good experience. For the same
company have upgraded its stores with the help of store renewal program in transforming
Australia and New Zealand food(Cho and Wayman, 2015).
 Another strategy company implements for contributing to its community and for the same
company have removed 180 tonnes of plastic from its fruit and vegetables. Not only this
company have also removed single use plastic bags from its Australian supermarkets.
 In order to retain the employees for long period of time company have improved its way
of working and is retaining its employees by motivating the team members with diverse
skills and capability. Company is creating such environment where every individual feel
as owner and never hesitate to share the ideas. Not only this managers are also deriving
the performance of the employees so that they can analyse where the things are lacking
behind and needs improvement(Kaliannan and Adjovu, 2015).
 Woolworth is investing in online and convince offerings across metro stores and for the
same company is improving its online and app experience with help of new innovative
technology. Company is working on loyalty program with the help of which customers
will have reduced friction in payment process and they will also have some profits as
loyal customers.
 Company is also making strategies related to personalised and convenient shopping
experience for the customers. As a result company have also achieved to offer about
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2,900 food, drinks and Big W retail sites. In Australian food company have sales growth
of over 100% and have become Choice of the customers.
SECTION 2
Impact of the company's structure on business Innovation
Organisation structure basically affects the idea generation and its implementation. It
basically depends on the organisational decision makers to influence the innovation within
company by having their direct control over organisational structure. If Employees are not given
right to share there ideas and just follow the order of senior managers then there are less chances
that they will come up with some innovation. Woolworth focuses on different approach to
human rights and this strategy helps the company to develop understanding between the
employees and managers. Top mangers have set there employees free to deliver there own ideas
and for the same company is giving incentives so that employees are motivated to deliver there
ideas(Alagaraja and Shuck, 2015). As a result Woolworth is having such knowledgable
employees that always come up with different strategy and technology that can improve the
business growth and can bring competitive advantage to the firm with the help of innovation.
Following are some impacts of management structure over innovation in the firm:-
 As structure is Hierarchical, it is easy to share the ideas from bottom level of the
organisation to the higher level managers. Company have many innovations in recent
years like having digital business, WooliesX is another standout. This have resulted in
having $1 billion sales, having 6.2 million orders and 30% growth in the business. The
reason of this result is quit simple, as company is having such effective structure where
all are set free to come up with innovative ideas so that business can be improved.
 As a result of effective company structure the innovation exercise conducted by
Woolworth over shopping experience have positively affected the growth of the firm.
Some neat technological solutions Woolworth is approaching in-store innovation and
have come up with new idea to set innovation lab in stores in order to test technological
solutions to different issues coming in front of the organisation so that improvement can
be made in shopping experience of the customers(Clauss, 2017).
 As Employees and Employers are having good understanding, the team performance is
good and employees are coming forward to improve the performance of the team with the
help of new strategy implementation. If any issues is arising in the firm related to lack of
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resources that result in poor innovation and technology, Members of the team can directly
reach to the administration department in order to have the respected resources. As
organisation is having a clear and effective structure, communication become easy for the
employees. For the implementation of new innovation or technology proper resources are
in need, if top management is not able to provide the same than chances are there that
employees will not get motivated to share the ideas. For the same structure of the
organisation have to set in such way that small to small ideas of the employees can be
shared to the top managers in order to bring effective change in the firm.
 Company is also working to provide a comfortable working environment to employees
that resulted in employees retention. Employees are getting benefits in respect to annual
leaves with the support of top managers. All the employees work in proper coordination
with respect to different business activities and this helps in bring innovative ideas by
working together as a team(Lyytinen, Yoo and Boland Jr, 2016). Less conflicts are seen
as guidelines are directly coming from top management due to effective structure of the
firm and this also helps the employees to reduce work interdependency.
 By having such effective structure in Woolworth, communication between the employees
and top management become easier and it eliminates the ambiguity and encourages the
working people to share their point of views.
 A well structured organisation of Woolworth is basically providing sound basis for
effective planning as it become easy to allocate resources and give direction to the
employees so that they can contribute for the development of the firm by providing
innovative strategy in operational part of the business.
 Woolworth is having employees that are having sense of belonging and high morale due
to well structured organisation(Bhowmick, 2015). All the employees are getting
recognition for their skills and appreciation for the contribution they make in order to
grow the firm with their creative minds.
SECTION 3
Impact of the company's structure on business performance
Company's structure have a great impact on its performance. Woolworth is having an
organised structure that is resulting in good performance of there business as communication
between the employees as managers become easy by having effective structural implementation.
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Company is improving its performance day by day and that it the reason it is among the top
leading brand in Australia. Company's organised structure have resulted in improved customers
satisfaction and also have increased the number of customers. Sales growth of the company have
increased to 3.4% as employees are coming with there creative minds for bringing good change
in the organisation's work culture(Bititci, Cocca and Ates, 2016). A strong trading performance
also have resulted in reduction in net debt and increased in dividend is seen over the year that is
approx 93%. If company will continue with the same organisation structure then there are
chances that more improvement will be there in upcoming years. Following impact are seen on
Woolworth performance with respect to company's structure:-
 The efficiency of staff members have been increased and Woolworth's organisations
structure have resulted in good managerial decisions in the different departments that
resulted in better performance of the business(Maduenyi and et.al., 2015).
 As structure is all set, it become easy to transfer information from top to bottom level of
the company. Not only this if employees of Woolworth want to have some talk with the
top managers they are set free, In this way communication gap do not arise and it become
easy to extract creative ideas from the employees. These ideas have resulted in better
performance of Woolworth over the recent years.
 Many employees have suggested better options related to store management and use of
technology. Many ideas have been generated with respect to high profit with less cost
implementation. All these ideas were result of strong organisational structure that
benefited company as rise in profitability was seen(Bhowmick, 2015).
RECOMMENDATIONS
From the above report it is been analysed that Woolworth is having an organised
structure that resulted in profitability of the business over the years. Company have to make
efforts in order to maintain this structure from long time and have to increase the morale of the
working people so that no negative effect is seen to have such structure in the firm. Company can
conduct different activities that helps in building good relationship among the team members.
Having an effective communication and relation can help in generation of innovative ideas that is
beneficial with respect to profitability of the business. Organisational structure is set effectively
but major communication tools are in need to be improved with the use of new technology in the
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working culture so that it become easy for the managers and staff to communicate effectively
without any barrier.
CONCLUSION
From the above study it is been concluded that organisational structure is having a great
impact over company's performance as innovation of the working people depends on the
structure of the firm. Woolworth is having an organised structure that is the reason employees
are coming with innovative ideas as communication between the employees and top managers is
going on effectively. As a result company have resulted in good performance and profitability of
the business have raised over the years.
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REFERENCES
Books and journals
Alagaraja, M. and Shuck, B., 2015. Exploring organizational alignment-employee engagement
linkages and impact on individual performance: A conceptual model. Human Resource
Development Review. 14(1). pp.17-37.
Bhowmick, A., 2015. Examining the Relationship Between Organisation Structure and
Perceived Innovation-A Study of Indian Corporations. NHRD Network Journal. 8(2).
pp.39-44.
Bititci, U., Cocca, P. and Ates, A., 2016. Impact of visual performance management systems on
the performance management practices of organisations. International Journal of
Production Research. 54(6). pp.1571-1593.
Cho, V. and Wayman, J.C., 2015. Assumptions, strategies, and organization: Central office
implementation of computer data systems. Journal of School Leadership. 25(6). pp.1203-
1236.
Clauss, T., 2017. Measuring business model innovation: conceptualization, scale development,
and proof of performance. R&D Management. 47(3). pp.385-403.
Kaliannan, M. and Adjovu, S.N., 2015. Effective employee engagement and organizational
success: a case study. Procedia-Social and Behavioral Sciences. 172. pp.161-168.
Lyytinen, K., Yoo, Y. and Boland Jr, R.J., 2016. Digital product innovation within four classes
of innovation networks. Information Systems Journal. 26(1). pp.47-75.
Maduenyi, S. and et.al., 2015. Impact of organisational structure on organisational performance.
ONLINE
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