Foundations of Workplace Success: Woolworths Report Analysis

This report provides a comprehensive analysis of Woolworths' workplace success, examining various factors that contribute to its operational efficiency and market position. The report begins with an introduction highlighting Woolworths' expansion and the importance of competition in the Australian retail sector. It then delves into a PESTEL analysis, evaluating the political, economic, social, technological, legal, and environmental factors influencing Woolworths. The report also includes Porter's Five Forces analysis to assess the competitive landscape, including the bargaining power of suppliers and buyers, the threat of substitutes, and the rivalry among competitors. A SWOT analysis is presented, evaluating Woolworths' strengths, weaknesses, opportunities, and threats. The report further examines managerial roles, leadership culture, organizational structure, and key stakeholders, including a stakeholder analysis. The conclusion summarizes the key findings and references supporting literature. This report offers valuable insights into Woolworths' strategic approach to workplace success and its implications within the Australian retail market.

FOUNDATIONS OF
WORKPLACE SUCCESS
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 Woolworths has managed to expand rapidly
through range of acquisitions and by
penetrating overseas markets and conquering
Australia as major proportion of retail sector.
 It is imperative for the Australian government
to guarantee smaller businesses can contest
with the key players operating in Australia.
 Moreover, this can be considered as the
operational way of struggling with the oligopoly.
Introduction

 Political Factor
 Woolworth mainly generates its profits from
the Australia-New Zealand Closer Economic
Relations Trade Agreement (ANZCERTA).
 This exchange collaboration has facilitated
both the nations whereby Woolworth is
functioning into a single financial system.
 Economic Factors
 Australia as well as New Zealand constitutes
of a comparatively high standard of living in
comparison to many other Western nations.
Situational Analysis- PESTEL Analysis

 Social Factors
 Woolworth has been efficiently promoting
environmentally lifestyle as well as sustainable
corporate practices by aligning with
“sustainability strategy 2007-15”.
 Technological
 Woolworths has implemented the SOA (Service
Oriented Architecture) software that displays its
business action, recognize blockages of their
service in real time as well as decrease costs
(Woolworthsgroup.au 2019)
Continuation

 Legal
 Legal and regulatory influences favour the
expansion and development of Woolworths’
business.
 Environmental
 Chatfield and Reddick (2018) have noted that
Woolworths has an impact on the environmental
factors since they execute their major operations
in petrol sector and shape customers buying
decision with their discount strategy.
Continuation

 Bargaining power of suppliers- Being major
marketers in Australian retail market, retailers like
Kelloggs and Nestle have failed to succeed in the retail
game, due to robust power of Woolworths and Coles
market share.
 Bargaining Power of Buyers- Studies have found
retail products in Australia to be homogenous to certain
extent, thus having reduced switching expenses and
has enabled buyers with high bargaining power (Bailey
2016).
 Threat of Substitution- The accessibility of
substitutes has been posing risks for business, thus can
be measured from moderate to high. This is due to the
fact that customers can easily opt for substitutes
related to level of suitability stores, grocery shops and
pharmacies.
Porters’ Five Forces Analysis

 Rivalry of industry competitors
 Rivalry among Woolworths and its competitors
has been measured to be severe and high.
 Threats of New Entrants- According to Spiteri,
Olstad and Woods (2018), these factors have
deterred number of new market entrants from
penetrating into Australian market, particularly
for international players in the Australian food
retail sector.
Continuation

Strengths
 Robust attention on Australian
food and alcohol business
upsurging Woolworths’ top line
development
 Well-organized supply chain
management
 Wide-ranging private label
portfolio distribution
Weaknesses
• Major Dependence on
Australian Retail Sector
Opportunities
• Upsurging emphasis on retail
data and big data analytics
• Introducing new home
improvement stores in Australia
Threats
• Intense market rivalry in
Australian supermarket domain
• Low level of purchaser
confidence poses negative
impact on Woolworths’
business operations
SWOT Analysis

 Managerial roles have been deliberated as highly
imperative and primarily deal with people,
groups, teams.
 It also deals with customers and stakeholders in
order to advance the business in attaining
success by heading various units and team of
organization.
 Leadership culture at Woolworths has been
unusual than its competitors as Woolworths
primarily offers utmost consensus and proper
direction required for team intended for desired
goal attainment.
Organizational Structure and Key
Stakeholders (Mintzberg theory)

 Woolworths has greatly focusing on water, natural
energy resources, waste as well as energy
reduction along with sustainable farming and
fishing.
 Woolworths has been trying to shape sustainability
in its process of supply chain along with its vital
suppliers.
 Woolworths’ business operations have been
concentrating precisely on sustainability in supply
chains and further have purposed to increase and
expand the number of collaboration determinations
with suppliers on the subject of sustainability.
Stakeholder Analysis