Analysis of Woolworths' Business Environment and Challenges

This report provides an executive summary of Woolworths' business environment in Australia, analyzing both internal and external factors that influence its performance and strategic decisions. The report identifies key internal factors such as skilled applicants and effective management, and external factors including technology advancements and competition. A major challenge facing Woolworths is identified as intense competition within the industry. To tackle this, the report recommends leveraging digital marketing platforms and implementing loyalty programs to enhance brand awareness, attract new customers, and retain market share. The analysis highlights the importance of strategic planning and adaptation to overcome industry challenges and achieve a competitive edge. The report concludes by summarizing how Woolworths can strategically overcome industry challenges through innovation and effective decision-making processes.

Assessment
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Executive summary
Business environment is comprised of some external and internal factors that directly
impact on productivity and performance of workers as well as companies. It also influences how
firms functions including customers, supply & demand, management and business regulations.
This assignment has based on Woolworths supermarket, operating its business in Australia with
skilled applicants who are able to serve services and products on daily basis. This study has
explained 2 different external and internal factors that affecting supermarket ability to
strategically compete in their market or industry. Furthermore, it has defined one major
challenge that firm face and then justifies appropriate suggestions to tackle it.
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Table of Contents
Executive summary..........................................................................................................................2
INTRODUCTION...........................................................................................................................3
Background of company.........................................................................................................3
Internal factors affecting organization....................................................................................3
External factors affecting firm................................................................................................4
Major challenge facing organization......................................................................................4
Approach or recommendation in context of tackling challenge.............................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6
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INTRODUCTION
Strategic environment can be described as wide range of strategic factors that might
influence business performance and contribute to its commercial decision. The current study will
be based on Woolworths, which falls under category of leading supermarkets in Australia. This
assignment will explain 2 external and two internal factors and then it will propose one most
challenging element that could impact organization strategy. Moreover, to overcome 1 challenge
suitable suggestion will be justifying at last in this study.
Background of company
Woolworths is one of the most popular and biggest supermarket chains in Australia they
operate more than 995 outlets across nation (Van Kampen and Kirkham, 2020). Organization
relies on 115,000 workers in stores, distribution centres and support offices to cater their
consumers with superior service, value, range and convenience. As one of the most innovative
retailer in country, Woolworths totally comprehends that buyer’s are looking for new, easy way
to shop. They arrange and provide everything according which is quite beneficial for firm and
their customers as well in term of building strong bond between both of them.
Internal factors affecting organization
Internal factors refer to anything within organizations and under control of firm no matter
whether they are intangible or tangible. These elements after being figured out are grouped into
weaknesses and strengths of any firm or business. Applicants within firm can be considered as
internal element that effectively contribute and influence decision making procedure of business
(Davis, 2017). By working and performing even better, employees support firm to give tough
competition to competitors in order to gain competitive advantages.
Effective management is also recognizing as internal factor that affect Woolworth’s
decision making and commercial judgement in positive manner (Papa and et.al., 2018). Manager
with excellent management style manage the performance of each candidate which make
supermarket able to take decision about expanding business in new marketplace and reaching at
global level. Management with the help of developing strategies and plans improve and enhance
working abilities of staff that allow Woolworths to create plan for serving excellently to its
buyers. These two factors play vital role in success and growth of chosen company.
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External factors affecting firm
There are many external elements available in world of business that may put negative or
positive impact on existing plans and policies of Woolworths and also contribute to its strategic
decisions. It can be identified that technology advancement is one of external factors that put
positive impact on strategies development and decision making process of firm which turn into
increasing consumer’s base, enhance service and productivity level even better (Dakpo,
Jeanneaux and Latruffe, 2016).
It can be said that along with above factor, economic element also affect Woolworths
practice and judgement related to customers and operational as well as functional units, but in
negative manner. Under this component, increasing competition between existing players can
put high much pressure on firm to change their current plans and tactics according to situation
(Grimmer, 2017). Due to this factor, managers and other people within company feel high
pressure and drive towards taking major action that help to overcome intensive competition
negative effect.
Major challenge facing organization
Woolworths prides itself on collaborating & working closely with Australian farmers and
growers to assure the best items are accessible to consumers. They take all the actions by
considering consumer health and sourcing 96% of all fresh vegetables and fruits and 100 percent
of fresh meat from framers. Above external and internal factors affect organization performance
and strategic decision positively. Only one element could impact firm strategy in negative
manner and that is intense competition or rivalry between existing companies. There are many
players operating in same industry where Woolworths operates, they all are competitive with
each other to gain competitive benefits and to become global leader which is quite difficult to do
(Grimmer, 2017). Increases in competition have been a major identifying element across all
industries and segments. It can impact current business strategy of Woolworth in term of
changing their plans, tactics and management style.
Approach or recommendation in context of tackling challenge
It has been identified that workers and effective management style as internal factors and
technology advancement & competition as external elements impacts Woolworths management
strategic decision. Increasing competition in industry can put high pressure on supermarket. To
overcome this challenge firm can consider and implement suitable suggestion. Organization
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should use the latest digital marketing platforms such as Twitter and other to gain attention of
new buyers and to generate its brand awareness all over the world (Grimmer, 2019). This
approach will help company to tackle challenge and generate more revenue than its rivals such as
Walmart, Kobout, Mera etc (Ncube and et.al., 2016). Furthermore, it can be said that
Woolworths can give tough competition to its competitors and gain competitive advantages by
planning range of loyalty programmes. It will help to retain their market share and consumers as
well as drive new towards purchase.
CONCLUSION
By summing up above discussion, it has been summarized that Woolworths business by
taking appropriate action and developing effective strategy overcome one of the biggest
challenge that is intense competition between existing players within retail industry. By taking
right decision and using accessible tools like advanced technologies organization has gaining
competitive edge in ethical manner.
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REFERENCES
Book and Journals
Dakpo, K.H., Jeanneaux, P. and Latruffe, L., 2016. Modelling pollution-generating technologies
in performance benchmarking: Recent developments, limits and future prospects in the
nonparametric framework. European Journal of Operational Research. 250(2). pp.347-
359.
Davis, P.J., 2017. How HR can create competitive advantage for the firm. Human Resource
Management International Digest.
Grimmer, L., 2017. Is it so hard to say sorry? Revisiting image restoration theory in the context
of Australian supermarkets. Asia Pacific Public Relations Journal. 18. pp.17-32.
Grimmer, L., 2017. Is it so hard to say sorry? Revisiting image restoration theory in the context
of Australian supermarkets. Asia Pacific Public Relations Journal. 18. pp.17-32.
Grimmer, L., 2019. Disrupting the giants: How independent grocers respond to the supermarket
duopoly in Tasmania, Australia. In Case Studies in Food Retailing and Distribution (pp.
13-24). Woodhead Publishing.
Ncube, P and et.al., 2016. Competition, barriers to entry and inclusive growth: Agro-processing.
Papa, A and et.al., 2018. Improving innovation performance through knowledge acquisition: the
moderating role of employee retention and human resource management
practices. Journal of Knowledge Management.
Van Kampen, T. and Kirkham, R., 2020. Assessment of the Supermarkets and Grocery Stores
Sector in Australia: A Case Study of Woolworths and Coles using DEA and
VAIC™. Journal of New Business Ideas & Trends. 18(1).
Online
Woolworths Supermarkets. 2020. [Online]. Available through:
<https://www.woolworthsgroup.com.au/page/about-us/our-brands/supermarkets/
Woolworths>
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