Woolworths Group: A Sustainability Analysis and Strategic Review

This report provides a comprehensive analysis of Woolworths Group's sustainability practices, based on the provided assignment questions. It examines the company's mission, vision, and corporate responsibility framework, including its 'People, Planet, Prosperity' strategy. The report delves into specific initiatives such as gender equality, diversity programs, and environmental efforts like the container deposit scheme and soft plastics recycling. It also assesses Woolworths' animal welfare principles and its commitment to science-based emission reduction targets. Furthermore, the report identifies key indicators of strategic sustainability, stakeholder engagement, and strategic alliances, including the Caltex partnership. The analysis covers Woolworths' customer-centric objectives, including customer satisfaction, and the strategies employed to enhance customer experience, such as pricing initiatives, store refurbishments, and new product development. The report concludes with a discussion of a phase model of sustainability for the company, providing a detailed overview of Woolworths' approach to sustainable business practices.

Running head: WOOLWORTHS SUSTAINABILITY
WOOLWORTHS SUSTAINABILITY
Name of the student
Name of the University
Author Note

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Question 1
The respective company that has been taken into consideration for the research
assessment is a Sydney based popular retail company, Woolworths Group. Woolworths Group
Limited is a major and second largest Australian company after Perth based retail conglomerate
Wesfarmers which exclusively provides premium retail service and it is also considered as the
largest liquor takeaway and hotel and gaming poker machine operator in Australia
(Woolworthsgroup.com.au.2019). The mission of the company is to deliver the best products and
services in convenience, value and quality to its customers. The company has approximately
201,000 team members in their organization who work relentlessly to provide premium service
and assistance to the customers as well as the potential customers in order to be remarkable in
the arena of customer satisfaction (Keith 2012). The vision of Woolworths Group is that to put
itself into the first position in retail sector among the customers all over the world. Among the
basic objectives of Woolworths Group Limited, there is a separate place entitled for corporate
responsibility. The Woolworths Group Limited has built a framework of Corporate
Responsibility Strategy 2020 which is widely based on People, Planet, Prosperity. According to
the Corporate Responsibility Strategy 2020 taken up by the respective company in 2015, under
the section of People, the company has formulated policies of encouraging diversity by striving
for gender equality, providing 40% position in the organization to women with a uniform and
equal salary for both men and women in the organization and encouraging Indigenous people of
Australia in joining the organization and working together with the mainstream population. In
the prosperity section of Woolworths Group, the need for sustainable, healthy and amicable
products for safety and security of the customers has been highlighted. A fair and amicable
relationship and commitment with the suppliers has also been mentioned in the corporate
responsibility report (Woolworthsgroup.com.au.2018).

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Question 2
Woolworths Group, Australia has taken up, in their recent sustainability report that has
been launched in February 2017, Woolworths Group 2020 commitments widely termed as
People, Planet, Prosperity to bring in sustainable development of the organization internally as
well as externally. The project named People, Planet, Prosperity has been built by Woolworths
Group in order to engage itself with customers, communities, supply chain and team members as
well as catering to the environmental needs by making efforts in minimizing the environmental
impact of their operations. According to the “People, Planet, Prosperity” project, under the
department of People, Woolworths Group has been efficiently working to bring diversity as well
as gender equality and neutrality in the workplace. The aim of the project is to not only bring
diverse communities, ethnicities and nationalities in the organization including Indigenous
Torres Strait islanders (Australian aboriginals) in the workforce, but also representation of
women in higher designations inside the organization. Woolworths has successfully operated the
diversity plan by winning Gold Tier Employer Status in Australian Workforce Equality Index
(AWEI) for the exclusive inclusion of Lesbian, Gay, Bisexual, Transgender and Intersex people
in the organization. The initiative named Proud@ Woolworths Group Network which was
exclusively meant for the LGBTQ community has apparently been a success and has become an
example of a role model of diversity in an organization all over the world. Under the department
of Planet, Woolworths has been designated as the first retail partner to the New South Wales
Container Deposit Scheme Network Operator with an aim to provide a voucher redemption
solution for customers and the roll out of reverse vending machines across New South Wales.
Woolworths Group has also expanded their partnership with REDcycle (waste processor) in
order to initiate soft plastics recycle program among the customers (functional as well as
potential) to make them aware of the importance of Reduce, Reuse and Recycle. The animal

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welfare principles taken up by Woolworths Group as their sustainability measures in their
Sustainability Report are: 1. Freedom from hunger and thirst, 2. Freedom from discomfort 3.
Freedom from pain, injury or disease, 4. Freedom to express normal behavior, 5. Freedom from
fear and distress. The Global Business Framework of Farm Animal Welfare (BBFAW) has
identified and recognized Woolworths’ progressive initiatives regarding implementing farm
animal welfare improvements within as well as outside their production. Woolworths Group has
identified its progress and marked itself at Tier 3 out of six tiers in representing leading
performance as retailers in animal welfare arena of Australia. With the help of good governance
and performance reporting, Woolworths has successfully launched itself to be one of the top
companies of Australia working relentlessly for animal rights. In the 2020 Sustainability strategy
of Woolworths Group, the company has been diligently committed to use science-based targets
(SBT) which are emission reducing targets ensuring de-carbonization which aims at keeping the
temperature below 2 degree celcious compared to the temperature of pre-industrial levels.
Woolworths Group has been immensely helped by the implementation of IGNITION (Integrated
Software Platform for SCADA system) at Vinpac International and Dorris Estate Winery
enabling them to increase sustainability efficiencies in their business operations by the design of
thermodynamic models in order to reduce energy use. Under the department of Prosperity,
Woolworths Group has initiated “Woolworths earn and learn program” which enables schools
and primary learning centers obtain plethora of educational resources, which includes sports,
mathematics, science and art equipments in order to serve the communities and society around
the company. Presently, it is calculated that approximately $50 million requisite products have
been provided in schools of New Zealand. The Royal Flying Doctor Service taken up by

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Woolworths Group delivers necessary care to over 95,000 people in the form of air ambulance
and rural GP services (Woolworthsgroup.com.au.2018).
Question 3
Indicator of Strategic Sustainability Evidence
1. Sustainability in vision and mission Incorporation of diversity in workplace,
amicable relationship with the suppliers and
efficient, sustainable stakeholder management
2. Sustainability Strategy and Business
Strategy link
Incorporation of organic food products in the
company, implementation of sustainability
practice in the company with introduction to
Recycling of plastics among the customers.
3. Sustainable Development Goals Corporate Responsibility Strategy 2020 which
highlights the project named “People, Planet,
Prosperity” which includes gender neutrality
and diversity in workforce by including
indigenous communities, women as well as
sexually diverse communities at workforce,
introduction to the three Rs, Reduce, Reuse
and Recycle among the employees and
customers to increase environmental awareness
and proper and sound stakeholder engagement
and supplier management as well as social
philanthropy to meet the demands of

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prosperity.
4. Stakeholder engagement Giving stress to customers, team members and
communities to encourage them to participate
in their operations and functions together and
provide their valuable opinion and vision to the
company in order to improve the company in
the near future.
5. Strategic alliance Woolworths Group has entered into a strategic
alliance with the company Caltex in the
agreement of 15 year wholesale fuel
arrangement with the agreement of
convenience, wholesale food, redemption,
loyalty and fuel supply. The agreement states
that Woolworths Group and Caltex will aim to
collaborate together and co-create a market
leading convenience offering approximately up
to 250 sites under metro banner to accelerate
the company’s growth and development.
Woolworths Group is in a constant persuasion
of an IPO or sale of its business of petrol and
an expanded management team has been
placed so that it looks after the growth of the

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company in a standlone basis
(Woolworthsgroup.com.au.2019).
6. Employee or Community wellbeing
program
Woolworths Group, in its Sustainability
Report, has put down the initiatives of
employee wellbeing programs such as
introspection of mental health as well as
physical health of the employee, providing
them with proper working condition and
allowing diversity and gender equality in the
workplace.

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Question 4
The Key objectives of Woolworths Group are: 1. Customer satisfaction, 2. Connected,
personalized and convenient shopping experience 3. Differentiation in food products 4.
Innovation in beverages they offer 5. Unlock value in their portfolio 6. “Better for customers”
and “Simpler for stores” experiences. The company follows “outside-in objectives”. Outside-in
objectives can be broadly defined as the belief that customer value creation, customer orientation
and customer based experiences which is intended for customer satisfaction would enable the
business to acquire success (Day 2014). Woolworths Group has specifically focused on customer
experience and satisfaction to a greater extent. Woolworths food group has identified and framed
three year strategy that are: win the trust of the customers, increase the company’s share of food
spend through lower prices and improving all aspects of marketing and shopping experience. The
strategies are widely based on three significant principles that are: Offer, Growth and Efficiency.
Under the offer principle, Woolworths has the mission to improve the core offer to ensure that
Woolworths is the first company that comes in a customer’s mind. Under the Growth principle,
Woolworths is diligently dedicated towards innovations and new ideas that might cater to the
new and latest, ever evolving needs and preferences of customers. Under the Efficiency
principle, Woolworths is dedicated to organize, maintain and uphold the performances of the
company and also follow Lean Retail Model to achieve success in the arena of customer
satisfaction and experience. Certain initiatives that have been taken up by Woolworths in
enhancing and influencing customer orientation, experience and satisfaction are pricing value
initiatives where an introspection and scrutiny of targeted customers, price range, affordability,
composition of demography has been done in order to place the correct price for the desirable

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and deserving products. Woolworths is in the process of creating high quality and better priced
brands of their own in order to close the range gaps where there would be absolutely no brands
from outside that might take the role of its competitor or peer in the market of Australia in the
global context. The second most significant initiative which Woolworths has taken to improve its
customer experience is by introducing new stores and refurbishments. The company has been
taking up massive capitals for refurbishing the existing stores and creating new stores according
to the researches about the market position as well as the current consumer demand conducted.
The company has taken up the initiative of refurbishing approximately 80 stores they have all
over Sydney and Australia in order to attract the attention of the customer as well as drive the
functional and potential customers towards their stores. The refurbishments and renovations are
supposed to be designed and decorated according to the choices and preferences of the
customers. The renovations would largely depend on the market and advertisement aesthetics
which is presently functioning all over the Australian market globally as well as locally, with a
high priority to create a greater potential for customer growth and development. It literally means
that the renovations should be attractive enough to drive the customers in the store and compel
them to buy the products. The third significant initiative taken up by Woolworths to enhance
customer experience is by delivering new products and better experiences to the customers.
Woolworths Food Group has established and formulated a separate department known as
Woolworths FoodCo which would be responsible for introspecting and analyzing market trends,
customer eating habits and behavior and then formulizing and developing new product
categories, focusing mainly on improving fresh meat supply and processing facilities regarding
its production, distribution and maintenance. Apart from the mentioned duties and
responsibilities, Woolworths FoodCo also has the duty of developing and enhancing strategic

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sourcing relationships with the primary or customary industry partners of Woolworths Group.
The new and innovative products of the company would make it possible to arrest the attention
of the potential as well as functional customers to a greater extent
(Woolworthsgroup.com.au.2018).
Question 5
A phase model of sustainability of a company can be broadly and clearly defined as a model
of a company that categorizes the process and stages of sustainability of a particular company
(Roome and Louche 2016). A phase model consists of four parts, namely, governance and
leadership, strategy and execution, Environmental stewardship and Social responsibility. The
company Woolworths Group is an “ideal” company according to my viewpoint as I believe that
the sustainability and other strategies the company has taken is ideal and correct. I have divided
its strategies and initiatives in a four faced phase model of sustainability. The four-faced phase
model of sustainability of Woolworths can be broadly categorized, classified, explained and
analyzed hereafter (Woolworthsgroup.com.au.2018).
1. Governance and leadership: The governance and leadership section is broadly based on
the vision, mission, values, leadership patterns and goals, stakeholder engagement,
culture and ambience of the company. The mission of the company Woolworths Group of
Australia is to deliver the best products and services in convenience, value and quality to
its customers. The company has approximately 201,000 team members in their
organization who work relentlessly to provide premium service and assistance to the
customers as well as the potential customers in order to be remarkable in the arena of
customer satisfaction. The leadership pattern that the company follows is linear and

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vertical in nature where the shareholder and the board of director ensures the position at
the top of the leadership map and the managers, executives take the place of the
downward position of the leadership map. Therefore, the departmental communication as
well as the power-structure communication is vertical in nature. The culture and
ambience of the company is diversified and innovative in nature where there is an equal
opportunity for both men and women to showcase their talent and skill to the
organization and remain employed. The indigenous people as well as the migration
refugees of Australia are also given good opportunity to serve in the company and earn
their livelihood. Woolworths Group is committed to provide a sound and secured
stakeholder relationship and commitment. With the introduction of various sustainability
schemes such as diversification and philanthropy, the company has been successful in
stakeholder management and commitment.
2. Strategy and execution: The strategic planning of Woolworths Group includes initiatives
such as enhancing the way of working of the teams, innovative measures of re-inventing
stores as well as food and beverages, unlocking value for its portfolio and productivity
initiatives such as budgeting, building and automation of capitals and improvement in
delivery productivity targets.
3. Environmental Stewardship: Woolworths Group, Australia is the first company in
Oceania to issue certified Green Bonds for a supermarket under the Climate Bonds
Initiative. The other sustainability projects that Woolworths Group has taken or would be
taking are :1. Introduction of Energy Management Center to monitor and investigate
energy consumption within the organization and make measures to reduce it if necessary
2. Introduction of energy-efficient LED lighting which is also eco-friendly, hybrid or

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HFC-free refrigerating system for a sustainable practice of refrigeration in the
organization as well as keeping in mind the amount of energy that are to be utilized in the
process. 3. Reduction of plastic on food products, fruits and vegetables and instill in the
mind of the consumers, the significance and effectiveness of the three R which is Reduce,
Reuse and Recycle for environmental protection. 4. Introduction to Woolworth’s organic
growth fund which encourages and propagates eco-friendly habit among the members as
well as the customers.
4. Social Responsibility: Woolworths Group has taken up its Corporate social responsibility
Strategy 2020. The areas that the strategy covers are People, Planet and Prosperity. The
project named People, Planet, Prosperity has been built by Woolworths Group in order to
engage itself with customers, communities, supply chain and team members as well as
catering to the environmental needs by making efforts in minimizing the environmental
impact of their operations.

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References:
Day, G.S., 2014. An outside-in approach to resource-based theories. Journal of the Academy of
Marketing Science, 42(1), pp.27-28.
Keith, S., 2012. Coles, Woolworths and the local. Locale: The Australasian-Pacific Journal of
Regional Food Studies, 2, pp.47-81.
Roome, N. and Louche, C., 2016. Journeying toward business models for sustainability: A
conceptual model found inside the black box of organisational transformation. Organization &
Environment, 29(1), pp.11-35.
Woolworthsgroup.com.au.2018. Available at:
https://www.woolworthsgroup.com.au/page/community-and-responsibility/group-responsibility/
Woolworthsgroup.com.au.2019. Available at: https://www.woolworthsgroup.com.au/page/about-
us/
Woolworthsgroup.com.au.2019. Available at:
https://www.woolworthsgroup.com.au/page/media/Latest_News/woolworths-group-enters-
convenience-and-loyalty-alliance-and-new-15-year-wholesale-fuel-arrangement-with-caltex