Comprehensive Report on Asset Management Techniques: Woolworths Group

This report provides a comprehensive analysis of asset management techniques employed by the Woolworths Group, a major Australian retail company. It begins with an executive summary and an introduction to the company's operations, including its various segments like Australian Food & Petro...Read More

Running Head: ASSET MANAGEMENT TECHNIQUES 0
ASSET MANAGEMENT TECHNIQUES
Executive Summary
Assets are the nervous system of the company without which production process is
incomplete. For the efficient utilization, the accuracy of asset is important. Asset management is
a core element of an organization which directs the company in. This report includes the detail

ASSET MANAGEMENT TECHNIQUES 1
study and analysis of the Australian based, “Woolworths group”. After reading, conclusions can
be drawn on the basis of asset management in the company, the importance of human as a
resource to the company. The essentials comment related to the planning, leadership, operations,
performance evaluation and improvement in context of the organization. Brief introduction of
ISO are also being included in the report. Focus on the relatable issue is spotted and
recommendation to the specifics is also suggested.

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Contents
Introduction-Woolworths Group.....................................................................................................2
Asset Management...........................................................................................................................3
Operation and Performance Requirements......................................................................................4
Key Physical Assets.........................................................................................................................5
Review of ISO.................................................................................................................................6
ISO 55000....................................................................................................................................6
1. Overview of Organisation.....................................................................................................7
2. Leadership.............................................................................................................................7
3. Planning................................................................................................................................7
4. Support..................................................................................................................................8
5. Operations.............................................................................................................................8
6. Performance Evaluation........................................................................................................9
7. Improvement.........................................................................................................................9
Considerable Spots........................................................................................................................10
Fixing the concerned Spots............................................................................................................10
Conclusion.....................................................................................................................................12
Bibliography..................................................................................................................................13

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Introduction-Woolworths Group
Woolworths Limited is a company rooted from Australia, which is engaged in the retail
operations. The company deals with the Australian Food & Petrol, NZ (New Zealand) Super
marts, BIGW and Hotels, Endeavor Drinks Group. The AFP (Australian Food and Petroleum)
segment is all associated with the fetching of food and petroleum related goods for the resale in
the domestic market of Australia. The segment of NZS (New Zealand Supermarket) is all
engaged with the procurement of liquor and food products for resale to native customers in New
Zealand. The Endeavor Drinks provides the supply of the liquor to the Australian Customers.
BIGW division of the Woolworths Group is all involved with the general merchandise products
for the resale to the Australian customers. Hotel segment of the group is all occupied with the
range of hospitality and leisure services, adding the food and alcohol, accommodation facility,
entertainment and zone of gaming in Australia. Brands like Woolworths, BWS and Dan
Murphy’s are all under this group (Reuters, 2019). Woolworths Group falls in the retailing
industry. Bradford Banducci is the employer or say, the CEO of the Woolworths Group,
Australia.
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Asset Management
The assets of the company are engaged in a manner such that it makes out the best use of
the company’s assets results in maximizing the shareholders’ value. It also aids to contribute the

ASSET MANAGEMENT TECHNIQUES 4
best possible return to the stakeholders. Every working organisation or a company has a wide
range of assets, including on the basis of liquidity- High, low or moderate in nature. The risk of
the business or company is also being distributed and lowered in the practical world (Wright,
2018). The asset management can also be absorbed by the investment of the available funds or
the investment of capital structure in the asset side of the balance sheet.
The management of assets in Woolworths is in the compliance with the capital structure
in the company. The company manages its capital structure in terms, to raise the capital
maximization of the stakeholders in the company. The example of extra ten percent per share
dividend was declared in addition to the 2018 final dividend, this was done in order to maintain
the interest of the shareholder as asset management (WoolworthsGroup, 2019(a)).
Operation and Performance Requirements
The assets are being included in company in order to work properly, efficiently without
any chaos which results in the time-saving and in speeding up the rate to achieve targets. Assets
also play a pivotal role in routine work of the organizations operations. Woolworth’s Group
maintains the retail chain and delivers to the home the fresh products. And other tasks are carried
out in the company which includes big assets in amount and cost both (Mitchell, 2019).
Assets placed in the firm were recently restructured and faced challenges in FWC (Fair
Work Commission). The group works in the retail, food products and warehouse, the workers
there has placed complain against the group of Woolworths to restructure. Reasons stated the
chaos and excess of mismanagement across the Australia (Patty, 2019).

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SDA or, “Shop, Distributive and Allied Employees” Association (SDA), was
disappointed as there was no input in the plan. The employees and workers are always a pivotal
component of right side of the balance sheet. But the workers are now in need for the uplift of
working area. Assets are being utilized in the organisation to improve health of the financials
involved (Patty, 2019).
Key Physical Assets
Physical assets relates to the terminology like current assets and the fixed assets, such as
plant and equipment in the company. Physical Asset management leads to the systematic
approach for the management of the available asset in the enterprise. Earlier this concept of
managing assets was not given much priority. But with the importance and passage of time it is
now taken into proper consideration (Noe, Hollenbeck, Gerhart, & Wright, 2017).
Assets are the third most important aspect of the business in order to achieve the targets
and goals for the company, followed by the finance and capital. Assets as already told, enhances
the profitability of the organisation. Whole of the finance is either invested in physical assets
associated with the company or is spent in arranging the staff in the process of staffing. Human is
an efficient living asset to the enterprise. Manpower in the organisation is pivotal to the operating
of the machinery and equipment installed at the work place. The sight of mankind from every
level either top, middle or lower level is import in any organisation. On and off the workstations
the worth of the manpower still remains constant, due to the interference in working operations.
The human as a resource keeps its noteworthiness at every side of the issue and departments.
Either skilled or non-skilled labor or employees are attained to every department of the
Woolworths Group (Noe, Hollenbeck, Gerhart, & Wright, 2017).

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Other important assets to Woolworth’s supermarket are the machines involved in
focalizing the movement of the items purchased, the storage of the goods, and the cargos in the
transit, the refrigerators for the preservation of the frozen or relevant goods for the trading
purpose, equipment used inside the territory to shift and store the products (Noe, Hollenbeck,
Gerhart, & Wright, 2017).
Review of ISO
ISO is an abbreviated format for International Standard Organisation. ISO create, set and
publish the standards. They provide the standards which are applied globally (ISO, 2019).
ISO 55000
States and defines the overview, concepts and related terminologies in Asset
Management. The ISO 55000 implies the basic need in accordance with the management of
assets in the organisation. The required terminologies are being defined. . In addition the
required aspect it adds the advantage of understanding and better working in the organisation. It
helps to maintain and improve the effective way of managing the assets in the firm (IAM, 2019).
ISO 55001
It is a document comprises of universal principles. It is a systematize system for asset
management. It is applicable to organizations regardless of size and industry. Its key purpose is
to assist the businesses by handling their risk by setting performance standard. It provides
thorough details for creation of asset management system (Van den Honert, 2013).
ISO 55002

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ISO stands for ‘International Organization for standardization’. It is a global federation of
national standards bodies. The ISO technical committee performs the International standard
work. International organizations and government and non-government bodies that attain close
working relationship with ISO also take active part in its work procedures. It is examined that
‘Project committee ISO/PC 251’is the committee accountable for ISO (Hodkiewicz, 2015).
Brief Comments on:
1. Overview of Organisation
The group of Woolworths, detailing about its organizational structure deals with the
supermarket which is largest in Australia. It was commenced in 1924, headquarter is placed at
Bella Vista, NSW, Australia. This Woolworths Group has diversified into various segments and
severing the people of Australia since a long time. Group registered under public company with
the features; Minimum one shareholder, no caps for the number, freely transferable of shares,
directors should be three in number with a start, end its name with “limited” word, auditor must
audit the financial books of the company, listed on ASE (Australian Securities Exchange)
(Weebly, 2019).
2. Leadership
The CEO (Chief Executive Officer) of Woolworths Group Mr. Bradford Banducci after
promotion form the junior level to senior one, he made in mind about brushing up the basics
from the initial level in order to achieve plans. The CEO accepts the opinion from the
employees. These opinions can be taken either in direct manner or can be taken into the indirect

ASSET MANAGEMENT TECHNIQUES 8
manner. The success level of the organisation depends on the way a leader or the boss lays
down the principles on which the employees of the Woolworths have to work with (Low, 2016).
3. Planning
The planning phase of the Woolworths Group has been modified and restructured into
multifold. The buzz creator example was the 2015, where the group announced the freshly made
strategies to win over the others nearby and related grocery shops. The main principles they
worked on are-
 Offer- the group improved the core offer to ensure the customers preference.
 Growth- the group focused more on the innovation to lead, and satisfy the customer
needs.
 Efficiency- created the additional customer value by implementing the Lean Retail
Model.
The group has recently implemented the changes in the plans stated by the management teams
several times (AFN Staff Writers, 2015).
4. Support
Providing the online retail chain in the Australian market and the other assistance in the
hospitality sector makes the important role of Customer support in the organisation. Woolworths
Online, assist the Responsible Service of Alcohol. But along with the support for the consumers
they also provide the back system to hired hand in the working organisation. They reconsider the
issues which are being raised in the organisation and try to face and solve at personal level. In
order to maintain the helping hands in the company, the support and aid should be provided
(Woolworths Group Limited, 2019).

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5. Operations
Operations here means the working in the organisation related to the working the
organisation. The company has total of 3,774 stores and probably around 202,000 employees
working within, reported the last year annual report of the Woolworths (Young & Bell,
2019). The principal tasks or activities of the Group are:
 Australian Cuisine – with the count of 1,008 supermarkets, company is still operating
 Endeavour Drinks – 1,545 under Dan Murphy’s’ with BWS brands. Including the
Cellar masters, Langton’s and online platforms like winemarket.com.au.
 New Zealand Food – with 181 count Countdown supermarkets as wholesaler and
retails to further 69 stores.
 BigW with 183 stores, 323 hotels, and 534 canopies in petroleum are successfully
operating in the market of Australia and New Zealand (woolworthsgroup, 2019(b)).
6. Performance Evaluation
The human as an asset in any organisation makes work in the market and makes its goodwill.
The working environment at the workplace needs to be addressed and should be considered
important in any kind of organisation. Fair Work Commission (FWC) was facing the dispute
among SDA and Woolworths Group while restructuring of the organisation. For the same
reasons the human asset of the company was losing their worth in the company sense. FWC took
stand for the workers and employees and hereby the evaluation of performance is crucial in the
manner to retain and work efficiently to achieve goals (SDA, 2019).

ASSET MANAGEMENT TECHNIQUES 10
7. Improvement
The deviation between the actual and standard set organizational goals often occurred in
organisation. This deviation occurs in the organisation can be in respect to employees, goals
or target based achievement. Every company needs to improve at certain level in order to
beat competition and lively entertain the people. The Group needs to reconsider the pricing
of the products, compete with the right brands; acceptance of the role of discount, the
margins should be narrowed, right audience should not be ignored, others should be given
preference and improvement should be marked (Marketing, 2015).
Considerable Spots
While working, any member of the concerned organisation can meet certain and
uncertain times, can be termed are the weak spots of Woolworths Group as an organisation.
There are many spots in the organisation to be worked on, but basically in the Group is “Pricing
Policy”. Woolworths is backed with the issue of pricing of the products in the market available
in the supermarkets. Value of the product is directly related to the worth of the product and
money available in the pockets of the consumer. When customer finds all aligned in a manner in
favor to him, picks up and buy. This also relates the concept of positioning in the industry when
compared with the brands in Australian market. Position in the market also defines, worth and
branding in the market. The presence of the Woolworths in the market needs to be expanded in
order to increase the topline of financials (Bhasin, 2019).
Woolworths Group in Australia also lacks in the area of the management of internal
resources can be helping hands, raw materials, the structure and other related aspects. External
environment relates to the concerns of the claims and assertions by the other companies,

ASSET MANAGEMENT TECHNIQUES 11
suppliers credit role, inequality in the behavior with certain segments of audience and market
(Knox, 2014).
Fixing the concerned Spots
Issues raised in the organisation are needed to be solved quickly in order to gain back the
appropriate working atmosphere in the Woolworths. The recommendations which are to be
applied in the organisation, to gain the worth, financial gains and employees retention in the
company. Pricing policy in Woolworth is most crucial for now scene in the enterprise. They can
efficiently set the price in order to meet the pockets of the buyers in Australian market. Group
has to maintain the quality of the goods and product they are already dealing with. The
packaging deals with the target audience to buy products should be enhanced. Lowering the price
depends on the ideas and strategies identified by the human capital in the firm. And for the same
reason the retention of employees are required. Gender equality in the organisation makes
retention of the employees in the company and motivation helps to work in the seeking
organizational goals and targets. Being equal in the professional environment, giving equal rights
and duties are enjoyed and adds as a motivation to the employees. This will give hike to the top
line of financials and achievement of the goals of the Woolworths (Equality Rights Alliance,
2016).

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Conclusion
Whole of the current report is elaborating the present situations and studies dealing in the
Woolworth organisation. Asset, the dependent of any business or any concern is very important;
all aspects of the related facts are discussed at the initial level of the report. Woolworths works
on various principles which are stated by its own. This Group has confined with various
drawbacks and aspects when the decisions are taken wrong, and has faced failures. But with the
changes and ability of absorbing the challenges it was able to gain the market segment again.
They noted importance of marketing aspects other brands are dealing with, instance asset
management, pricing policy, internal processes to be strengthen quality of the products,
employment retention and others. The techniques related to the management of the assets should
be put forward in order to achieve maximum amount of return formats to company and
shareholders. Comments on the aspects of the organizational details are being included as part of
report. The focus of asset management and the reasons for the downfall has been discussed in the
report. Woolworths has upgraded the decision making process in order to maintain worth and
goodwill in the market.

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