Case Study: Strategic Management and Woolworths' Transformation

This case study analyzes the strategic management challenges faced by Woolworths, an Australian retail giant, focusing on the period around 2015-2017 when the company experienced significant financial losses and market pressures. The study examines the organizational overview of Woolworths, the issues it confronted, including rising market competition from brands like Coles and Aldi, and the strategic interventions implemented to address these challenges. These interventions include technology upgrades, human resource strategies, and strategic changes. The report also provides recommendations for Woolworths, such as focusing on customer-centric approaches and online services, to regain market share and improve financial performance. The analysis highlights the importance of strategic planning, technology adoption, and effective human resource management in achieving sustainable business growth and competitive advantage within the dynamic retail sector. The document is contributed by a student to be published on the website Desklib, a platform which provides all the necessary AI based study tools for students.

RUNNING HEAD: STRATEGIC MANAGEMENT
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Strategic management
A CASE STUDY ON WOOLWORTHS
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A case study on Woolworths 2
Contents
Introduction....................................................................................................................................................3
Organization Overview..............................................................................................................................3
Issue...........................................................................................................................................................3
Strategic intervention.....................................................................................................................................4
Technology intervention............................................................................................................................5
Human resource intervention.....................................................................................................................6
Recommendations and Conclusion................................................................................................................7
References....................................................................................................................................................10

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Introduction
Strategic Management is recognition and explanation of the strategies managers can take
so as to attain improved performance and a competitive advantage for organization. An
organization is said to be competitive if the average profitability is higher than all the companies.
The key to gain success lies in the management. In such a highly competitive business
environment it is the management that works well in coordination (Abbott & Booth, 2014).
Woolworths in 2015 went a significant structural change. Some of the subsidiary of the company
was shut down due to poor performance. The report furnishes the approach in which the
organization can manage the crises. The organization has reported a loss in 2015 in 10 years.
Organization Overview
Woolworths Limited is an Australian company providing with wide retail interest all over
Australia and New Zealand. It is the second largest company by revenue in Australia. The
organization is known as the second largest organization in New Zealand. In addition,

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Woolworths is providing with various retail facilities across Australia meeting out all the
requirements of the retail sector. It holds a significant market position and performs efficiently
by working in an effective way.
Issue
There is a rising market pressure that has forced companies to revolutionize the management
structure. Woolworths is facing extreme pressure from its competitors’ due to a change in the
retail market segment. Woolworths In the recent time has been facing too much market demands
from its competitors: Cole, Mark & Spenser etc (Defoe, 2013).
It is evident to notice that the retail sector in Australia has employed a large number of people.
The organization has been facing an extreme change in its share price due to huge loss. The
company is following the cost cutting measures to build trust in consumers (Hyam and Ong,
2016).
Recently the organization has to close some of its stores due to lack of income. They were
powerless to manage their process into various segments. This caused a loss to the retail
industry. Woolworth is failing to please customer. They are losing confidence in the brand.
International low-cost brands like Aldi. Due to which the customers are switching to other
brands to reassure their requirements. The change in the market requirements is affecting
consumer’s buying behavior due to intervention from international brands like Costco and Aldi
(Treadgold, 2015).

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Strategic intervention
Strategic Intervention is related to extracting the majority of sensible and effectual forms of
strategic act and communication commencing a range of disciplines.
The aim of strategic intervention is to train by developing an extremely practical method for
taking action. This allow in guaranteeing growth in a strategic way in order to get things done
within an effective framework. Human needs are fulfilled and elevated based on the Need and
opportunities available in the market in order to match up with the expectations. A strategic
change is essential for an organization to survive (Anderson & Anderson, 2010; Bolman & Deal,
2013). This will help in reinforcing to get the maximum results (Rhodie, 2000). Woolworths
understand the importance of retaining employees. Employees are an imperative asset an
organization requirements to focus on its mission and objectives. It is essential to bring in
attention of every individual over the instance in order to incorporate changes. The organization
desires to offer its employees with the power to bring the change. Woolworths has understood
the importance of creating short term goals for the long term survival (Cameron and Green,
2004). It is only probable to gain sustainable results by working on persistent goals. Strategic
implementation is an essential way to make a change lastingly in the organization.
Woolworths has strategically adopted the policy in order to gain a persistent change. Woolworths
has to develop an effective market strategy to bring support in the senior executive. The
management at Woolworths is losing faith in the organization. This is affecting the employee’s
sustainability. Woolworths has announced a loss of $ 1.235 billion for the financial year 2016.
Woolworths has incurred loss due to the failure of its brand (Master Business and Big W
Business. Due to which they have registered the biggest loss in 20 years (Chung, 2016).

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Intervention in business is importance for building tough strategies that aim to develop an
effective change in the organization. Business interventions are important for bringing a change
in the organization. These interventions help in increasing the competence and ability of the
organization.
Technology intervention
Woolworths has gained a competitive advantage by adding Technology. It is a way through
which people come close to each other. In a competitive atmosphere, Technology development is
an important process to gain success. Customers are typically inclined to the organizations that
are technology upgraded. Woolworths has strategically upgraded the e-commerce technology in
order to satisfy the objectives of customers (Ryall and Bramson, 2013). An organization
technologically handicapped can’t live in a long run. Market trends have revealed that a large
number of sections are buying goods online (Liguori, 2012). Woolworths has upgraded its
website in order to promote interest of the people. This allow in an easy flow of technology for
achieve sustainable organizational goals. By adding technology with the organization it is
possible to strengthen the capacity on a long run. By focusing over the sustainability and
organizational potential it is possible to gain growth and effectiveness. By focusing over the
growth it is possible to manage longevity and sustainability. Woolworths has understood that,
Employees are an important asset an organization needs to focus on. It is essential to bring in
attention of every individual over the instance in order to incorporate changes (Goolsby & Reed,
2016).

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Human resource intervention
In order to gain definite results, Woolworths has developed effective market strategies through
social processes. This is allowing in gaining a competitive advantage by developing an effective
market growth. This is making an effective market presence by organizing people behavior and
motivating them to add onto the productivity. The change in the organizational structure has a
long-lasting impact on the growth (Cameron & Green, 2004; Low, 2016). For achieving
usefulness It is extra significant to classify the efforts that are been organization member. A
change in the organizational structure has affected the organizational growth. It is essential to
appreciate the general dynamics of the organization. HR intervention is an obligatory step
towards gaining effective results (Chung, 2016).
Recently, Woolworths has reported a market turnaround, with the supermarket lifting analogous
food sales by 4.5 per cent to $9.3 billion in the third quarter. Woolworths said overall customer
satisfaction had improved and items-per-basket growth remained positive at 4.7 per cent (Chugh,
2017).
Average prices declined by 2.5 per cent during the quarter, compared with 2.6 per cent in the
previous quarter, largely driven by declines in general merchandise and grocery which offset
higher fruit and vegetable prices. The Organization has gained a significant market share due to
its effective market strategies. This has helped the organization in gaining effective market
results (Chugh, 2017; Somasundaram, 2017).

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Recommendations and Conclusion
It is recommended that the organization need to develop an effective market share by gaining an
effective market share. The organization is able to make effective framework by adding the
market advantage in order to develop sustainable results. There is a need t o implement a
structured model instead of spending money on the sick unit. These units are causing a burden
and hence affecting overall profits. Secondly it is necessary to develop a customer-centric
approach. This approach will help in managing the goals. There are other brands in the market
that are providing a sustainable growth in the market. This is only possible if the organization is
able to compete against the other competitive brands. In order to grow in the market it is evident
for the business organization to focus on arranging market capacity. Lastly, the strategic capacity
of the organization is to focus on online services. The brand needs to develop an effective market
growth by helping the customers in managing the sales.
These strategic interventions are important to help the sick unit in order to gain sustainable
market growth. Woolworths has to develop a strategic market growth structure helping them in
restructuring. All these diagnosis tools will allow in gaining results by reviving the market
competency. Strategic market growth and scope will help in arranging an effective market
position. This will help in managing systematic growth through up-gradation of the system.

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References
Abbott,H. & Booth,H. (2014)Foundations for Operating Department Practice: Essential Theory
for Practice.UK: McGraw-Hill Education
Anderson,D. & Anderson,L. (2010)Beyond Change Management: How to Achieve
Breakthrough Results Through Conscious Change Leadership. USA: John Wiley & Sons
Bolman,L. &. Deal,T. (2013)Reframing Organizations: Artistry, Choice, & Leadership.
USA:John Wiley & Sons
Cameron,E. & Green,M.(2004) Making Sense of Change Management: A Complete Guide to the
Models, Tools & Techniques of Organizational Change. UK :Kogan Page Publishers
Chugh,F.2017. Woolworths continues sales turnaround. [Online].Available from:
http://www.news.com.au/finance/business/retail/woolworths-continues-sales-
turnaround/news-story/278f4a15fc1a57b7845fdddd094c6819 [Accessed on 22/08/17]

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Chung, F.(2016). Woolworths unveils $1.235 billion loss. [Online] Available from:
http://www.news.com.au/finance/business/retail/woolworths-unveils-1235-billion-loss/
news-story/5a6cd1f33658f536b47d95b305c5bc67 [Accessed on 22/08/17]
Defoe,D.2013.[Online].Availableat: http://www.psycholawlogy.com/2013/05/31/underst&ing-
organizations-using-the-four-frame-model-factories-or-machines-structure-family-
human-resources-jungle-politics-&-theatres-temples-or-carnivals-symbols/ [Accessed on
22/08/17]
Goolsby,Reed,(2016)[Online]Availableat:http://job.sagepub.com.ezproxy-b.deakin.edu.au/
content/53/3/326.abstract [Accessed on 13/09/16]
Hyam, R. and Ong.T. (2016).Woolworths reports almost $1 billion loss in half-year results
[Online]. Available from: http://www.abc.net.au/news/2016-02-26/Woolworthss-reports-
almost-$1-billion-loss/7202004 (Accessed on: 22/08/17)
Liguori, M., (2012) The Supremacy of the Sequence: Key Elements and Dimensions in the
Process of Change. Organization Studies, 33(4), pp.507-539.
Low, C.2016. [Online].Available from: http://www.smh.com.au/business/retail/woolworths-
slumps-to-1234-billion-loss-20160824-gr0dvl.html [Accessed on 22/08/17]
Somasundaram, N.2017. There are glimpses of a Woolworths turnaround ahead of its half year
results. [Online].Available from: https://www.businessinsider.com.au/there-are-glimpses-
of-a-woolworths-turnaround-ahead-of-its-half-year-results-2017-2[Accessed on
22/08/17]