BIZ202 Business Environment - Woolworths: Environmental Factors Report

This report provides an analysis of the business environment faced by Woolworths, focusing on the economic factors that impacted its performance, particularly the decline in GDP from 2012 to 2016. The report identifies key environmental factors, such as lower productivity, decreased demand, and changes in customer spending, as well as the impact of rising interest rates and government spending reductions. It evaluates the unsuccessful responses taken by the business, including declining profit margins and reduced employee income. The report concludes that the lower GDP significantly influenced the organization's performance. Recommendations are provided, including increasing the supply of goods and services, utilizing modern technology, and improving employee retention through effective motivation. The report also includes references to relevant academic sources to support its analysis.

The Business
environment
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Introduction
 Discusses the particular events which directs to the loss
 Evaluation of economical event
 Discusses the unsuccessful responses taken by the business
 Recommend counter strategies and potential growth opportunities for
the business

Identification and analysis of
environmental factors
 The economic factor affected the performance of Woolworths. In
Australia, the GDP rate has been declined from 2012 to 2016 for
affecting the performance of a business (Trading economics, 2019 ).

Impact of Lower GDP on business performance
 Lower productivity (Botha, Kourie, & Snyman, 2014).
 Lower demand of goods and services
 Changes in Customer Spending

Continued…
 Rising Interest Rates
 Government Spending Reduction (Wetherly, 2014).

Unsuccessful responses by the
business
 Decline in the profit margin (Apăvăloaie, 2014).

Continued…
 Spending in many areas
 Declined in the employee income (Kolk, 2016).

Conclusion
 With respect to the above discussion, it can be concluded that a lower
level of GDP could be negatively influence the performance of
organization.
 It can also be summarised that from 2012 to 2016, the organization
has taken many actions to improve their performance but it was
unsuccessful. There are two activities that majorly declined the s
production level named as decline in the profit margin and spending
in diverse areas.

Recommendations
 Increasing the supply of goods and services
 Use of modern technology (Wetherly, 2014).
 Increasing the retention level of employee by considering effective
tool of motivation (Botha, Kourie, & Snyman, 2014).

References
 Apăvăloaie, E. I. (2014). The impact of the internet on the business
environment. Procedia Economics and Finance, 15, 951-958.
 Botha, A., Kourie, D., & Snyman, R. (2014). Coping with continuous
change in the business environment: Knowledge management and
knowledge management technology. Elsevier.
 Kolk, A. (2016). The social responsibility of international business:
From ethics and the environment to CSR and sustainable
development. Journal of World Business, 51(1), 23-34.
 Trading economics (2019). Australia GDP, retrieved from
https://tradingeconomics.com/australia/gdp
 Wetherly, P. (2014). The business environment: themes and issues in
a globalizing world. Oxford University Press.
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