HLT 7038: Professional Change Management Report on Woolworths

This report provides an analysis of the professional change management strategies employed by Woolworths, a major Australian retailer facing significant competition. It examines the company's efforts to manage change through new product lines, technology upgrades, and employee training programs aimed at enhancing customer experience and revenue generation. The report highlights Woolworths' focus on customer convenience, its struggles with SAP structure, and the resulting employee turnover and store closures. It further explores the essential steps for effective change management, including identifying non-contributing processes, improving employee engagement, and adapting to dynamic market demands. A SWOT analysis is presented, outlining Woolworths' strengths, weaknesses, opportunities, and threats, particularly emphasizing competition with Coles and government regulations. The report also delves into issues of strategy philosophy, such as declining profits, the need for price adjustments, and the importance of stakeholder involvement and improved communication across the organization, concluding with recommendations for innovative products, competitive pricing, and continuous process improvements to ensure Woolworths' survival and growth in the competitive retail market.

Running head: Professional Change Management 0
woolworths
Professional Change Management
7/14/2018

Professional Change Management 1
Executive Summary
In this report, brief discussion will be carried on the professional change management of the
Woolworths. Woolworths is the Australia largest retail sector companies and is facing major
competition from its opponents. Managing change in the organization is important for the growth
of the company. This helps in successfully implementing of the new strategies. Woolworths has
introduced new product lines and updated technology in the organization to increase its customer
base. Woolworths focuses on the training of its employees, labor in earning more revenues for
the company. The company has developed more advanced technology to assist its customer and
provides them excellent shopping experience from their retail stores. Woolworths focuses on the
convenience of its customers by making the availability of its product ranges across all the retail
stores in Australia. The company is developing strategy that helps them in overcoming its losses
and surviving in the retail sector markets.

Professional Change Management 2
TABLE OF CONTENTS
Executive Summary.....................................................................................................................................1
Introduction.................................................................................................................................................3
Professional Change management of Woolworths......................................................................................4
Issues of strategy Philosophy.......................................................................................................................6
Conclusion...................................................................................................................................................7
References...................................................................................................................................................8

Professional Change Management 3
Introduction
WOOLWORTHS
Change management process in the organizations helps in improving their profitability and
productivity. This process includes the range of tasks that the company needs to follow in order
to achieve the company’s intended outcome.
Woolworths has provided the greatest experience to its consumers through its priority services
and loyalty programs. Major changes are noticed in the subsidiary products of the Company, as
they are competing hard to remain in the market. Majority of the problems are noticed in its SAP
structure. The Woolworths has failed in fulfilling the customer requirement; this has resulted in
changing of the employees’ structure in the company. Continuous losses in the company have
caused mass departure of the senior executives of the company. Majority of the retail outlets of
the Woolworths are closing due to the shortage of income in these outlets. Woolworths failed in
meeting the requirement of its customers. Woolworths is famous for providing products at
cheaper price to its customer, in current years the company failed on its purpose (prosci, 2018).
Woolworths is one of the Australia’s biggest supermarket chains. 1,15,000 employees, 995
stores and distribution centers to provide their customers with range, superior services operating
across Australia. Woolworths is occupied thoroughly with the Australian farmers to guarantee
that the best foodstuffs are available to its buyers (Woolworth Group, 2018).
They are the most innovative retailers, which invent new and simple ideas for the customer to
shop. Woolworths has created Woolworths supermarket app, consumer can now shops from
home or away from home by using their computer and the products will be delivered straight to
their home.

Professional Change Management 4
Professional Change management of Woolworths
Organizations have to change their strategies and operating methods for sustainability of their
businesses. In this report, discussion will be based on the change management process of
Woolworths based on the principles of the organization. This process is based on managing
efforts of the employees in the organization and keeping in mind the necessities of the staff and
the workers in the organization (Smartsheet, 2018). Woolworths Company is focusing on
fulfilling customers demand. Woolworth’s management is changing rapidly by updating its
technology and more focus on the price and the products changes. Previously, the products of
Woolworths are selling only in its retail store in Australia, now the online operations of the
Woolworths have started to target maximum number of customers. Essential steps for effective
change management process of Woolworths are:
 Woolworths has to identify the processes, product that are not contributing to the growth
of the company and has to improve its product and technology to increase the demand of
the products
 For spreading its operations in Australia, the company has introduced changes in
employee’s engagement processes. The company’s human resource department is
employing more hardworking and dedicated employees in the company to gain its
customer loyalty and increasing its customer base. The company for the success of the
organizations introduces sustainable changes (project manager, 2018).
 As the demands of the products in the retail market are dynamic, Woolworths has
managed the changes in the retail business, as the large numbers of substitutes are
available. Involvement of employees is necessary and important part in change
management process. The organization should accept the perspective of its employees
about its product to remove the faults in the products (Tallyfy, 2108).
 Woolworths employees are trained enough to have the required knowledge to cope with
the change. The Woolworths managers are trained towards the development of the
inventory management skills (Eba, 2016).
 The manager of the organization develops a close relation with the employees or assists
them in obtaining data internally.
 Proper training should be provided to the employees of the organization on how to treat
the customers properly and maintaining relationship with the customer
 The project managers and the change management members that communicate the
requirement of supervisors, executives and the frontline employees must develop proper
communication plan. Each member has complete information about his or her role for the
effective application of change in the organization (Luxury interactive, 2018).
 Woolworths needs to focus on matching its resources with the available opportunity. It
should manage its resources to maintain good relationship with the customers.

Professional Change Management 5
Continuous change in the internal policy is an effective step in change management
process (Parker Avery Group, 2018).
 Woolworths current position in the market is very bad. The company is losing its
valuable customers to its competitors. It is very important for the company to develop an
excellent reward policy to attract the new customers and maintain the existing one.
 Woolworths customers have changed their consumption patterns. They move to more
innovative services and products. Woolworths has to accept this reality and need to start
modernizing.
 The company focuses on obtaining information about the customer. This knowledge will
help the company in developing services and products according to the customer
aspirations and desires.
 Woolworths has to provide information about its services and range of products offered
in different channels. They should also provide unique facility of assistance on fashion to
their customers.
 Woolworths methods and food processes are designed for a smaller business.
Woolworths has to offer excellent services to its customers to stay strong in the market.
The Woolworths has to apply FSC program in its operations to be more successful. This
means ordering, organizing, planning and moving the food products in the finest manner
so that its customers can get what they desire every time of their visit to the Woolworths
retail stores (Techtarget network, 2014).
SWOT analysis of Woolworths
Definition:
SWOT analysis is divided into four elements strength, weakness, opportunities and threat. It is a
framework for analyzing and identifying the factors that have an impact on the feasibility on a
person, project, place, and product. It is used by business entities and nonprofit organizations. It
is used in the beginning of the strategic planning exercise (The Sydney Morning Herald, 2015).
SWOT analysis in context of Woolworths applied as follows:
Strength: Woolworths are the leading retail industry in the Australia. Company’s leadership
quality increases their employee’s ability in developing their market potential with the use of
company’s human, technological resources and the company’s presence in the industry.
Weakness: The impact of external environment condition affects Woolworths position in the
retail market of Australia. Australian Government imposes restriction on the Woolworths in
increasing prices for its products .This is the major weakness in obtaining higher growth levels
for the company (Harvard extension School, 2018).

Professional Change Management 6
Opportunities: Australian retail industry shows decent growth potential and factors such as
consumer lifestyle changes, increase in supply chain and computerization have all affected the
potential of retailers and increases opportunities for them to grow.
Threat: higher competition with the Coles supermarket is the major threat to the Woolworths
Company. Government interference is another threat to the Australian retail company
Issues of strategy Philosophy
 Profits and the growth of the Woolworths are declining. The Woolworths has to cut the
prices of the product in order to survive and compete with its competitors Aldi and Coles.
Woolworths has to sacrifice its income for minimum two years by improving the cost of
its food and services (Shopper track, 2016)
 Stakeholders, Human resource department involvement in the Woolworths Change
management process will make sure that the issues raised are solved within the
organization (Tutorials point, 2018).
 Woolworths is a great retail company that maintains relations with its suppliers,
customers, team members. Woolworths focuses continuously in improving its shopping
experience, offer to its customers (Strategy&, 2018).
 Managing the rapid change in the retail sector is becoming very difficult for the
Woolworths organization. The company wants an efficient operation. Lack of
collaboration, consistency and communication across the Woolworths organizations are
caused by the lack of visibility and information on the major supply chain of company.
The company has to improve its communication and consistency in the organization to
achieve the growth and the success (Sourcing journal, 2018).
 As the consumers, want wide variety of high quality and cheaper products to be delivered
in the multiple retail outlets of Woolworths. The company should now focus on the
demand of its customers and the availability of its product across all the retail outlets
(Process.st, 2017).
 Woolworths has to improve its corporate social responsibility activities, as it is important
for its product, labor, environment and society. This helps the company in enhancing its
image and goodwill in the society (Tinypulse, 2016).
 Woolworths is now focusing on global sourcing and increases its private label products to
increase its position in the retail sector market. The company is now adding more
features, choices for its customers, which helps in gaining the customer loyalty and
increasing the demand of the products (Strategy & Business, 2018).
 Increase in the promotional activities of the Woolworths enhances its brand image and
awareness among the customers about its new product launch, new schemes and reward
policies among the consumers (Harvard Business review, 2012).

Professional Change Management 7
 Woolworths has updated its technology both for the customers and for the employees of
the organizations for the better understanding of the company policies and the complete
and the precise information about its product ranges (CISCO, 2018).
Conclusion
Woolworths should focus on developing a strategy that discovers the changes in the retail
business and the company’s current performance. The Barriers have been identified in the
change management process of Woolworths like lack of skilled and authorized leadership in
their retail stores and the lack of involvement of the senior management department. Woolworths
customers are switching to its competitors. Woolworths has to develop innovative products to
attract new customers and retain its old customers. The company has to produce the products at
decreased prices in order to remain in the market and retain its customers and the share price of
the company. This is also concluded from this report that changes in concepts, strategy, policies
are essential for the success and growth of the organizations. Woolworths vision is to provide
valuable services to its customers and fulfilling demand of its consumer is the goal of the
organizations. Thus, a regular evaluation and constant changes in the processes of the
organization is important for sustaining in the business world full of competition. Food supply
chain process implemented by the Woolworths maintains its competitive position in the market.
Simple and clear instructions, practical training of the organizations employees has also
contributed in the success of the organization. Woolworths has also focuses on its promotional
activities to create the brand awareness and the visibility of its products among the customers.
Woolworths has developed many strategies for recovering the losses, surviving in the market and
gaining its goodwill in the market.
References

Professional Change Management 8
CISCO. (2018) Digitizing your store? Why you’ll need strong change management. (online)
Available from: https://www.cisco.com/c/en/us/solutions/industries/retail/change-management-
digital-transformation.html [Accessed 14/07/2018]
Eba. (2016) The Change Management Process: Linking the steps to Successful change. (online)
Available from: http://www.educational-business-articles.com/change-management-process/
[Accessed 14/07/2018]
Harvard Business Review. (2012) Managing risks: A New Framework. (online) Available from:
https://hbr.org/2012/06/managing-risks-a-new-framework [Accessed 14/07/2018]
HARVARD Extension school. (2018) What could go wrong? How to Manage Risk for
Successful Change Initiatives. (online) Available from:
https://www.extension.harvard.edu/professional-development/blog/what-could-go-wrong-how-
manage-risk-successful-change-initiatives [Accessed 14/07/2018]
Luxury interactive. (2018) Five key challenges facing retailers today-and how to solve them.
(online) Available from: https://luxury.wbresearch.com/five-key-challenges-for-retailers-how-to-
solve-them-ty-u [Accessed 14/07/2018]
Process.st. (2017) How to make a change management strategy (and defuse the growth time
bomb). (online) Available from: https://www.process.st/change-management-strategy/ [Accessed
14/07/2018]
Project Manager. (2018) How to lead a change Management process. (online) Available from:
https://www.projectmanager.com/blog/change-management-process [Accessed 14/07/2018]
Prosci. (2018) Change Management process. (online) Available from:
https://www.prosci.com/change-management/thought-leadership-library/change-management-
process [Accessed 14/07/2018]
ShopperTrack. (2016) Change Management is more important than ever. (online) Available
from: https://www.shoppertrak.com/article/change-management-important-ever/ [Accessed
14/07/2018]
Smartsheet. (2018) 8 elements of an effective change management process. (online) Available
from: https://www.smartsheet.com/8-elements-effective-change-management-process [Accessed
14/07/2018]
Sourcing Journal. (2018) Top five issues facing Retail Supply Chains. (online) Available from:
https://sourcingjournal.com/topics/business-news/top-five-issues-facing-retail-supply-chains-
cbx-29423/ [Accessed 14/07/2018]

Professional Change Management 9
Strategy&. (2018) Change Management Perspective. (online) Available from:
https://www.strategyand.pwc.com/reports/change-management-perspective [Accessed
14/07/2018]
Strategy+ Business. (2018) 10 principles of Change Management. (online) Available from:
https://www.strategy-business.com/article/rr00006?gko=643d0 [Accessed 14/07/2018]
Tallyfy. (2018) 9 steps to a successful Change Management process. (online) Available from:
https://tallyfy.com/change-management-process/ [Accessed 14/07/2018]
TechTarget network. (2014) Change Management Strategy. (online) Available from:
https://searchcio.techtarget.com/definition/change-management-strategy [Accessed 14/07/2018]
The Parker Avery Group. (2018) Defining Change. (online) Available from:
http://www.parkeravery.com/pov_Defining_Change_Management.html [Accessed 14/07/2018]
The Sydney morning Herald. (2015) Woolworth is facing slowest growth in 19 years as strategy
resets. (online) Available from: https://www.smh.com.au/business/woolworths-facing-slowest-
growth-in-19-years-as-strategy-resets-20150226-13q0vs.html [Accessed 14/07/2018]
Tinypulse. (2016) 8 strategies for change management that actually works. (online) Available
from: https://www.tinypulse.com/blog/sk-strategies-for-change-management [Accessed
14/07/2018]
Tutorials point. (2018) Change Management Process. (online) Available from:
https://www.tutorialspoint.com/management_concepts/change_management_process.htm
[Accessed 14/07/2018]
Woolworth Group. (2018) About us. (online) Available from:
https://www.woolworthsgroup.com.au/page/about-us [Accessed 14/07/2018]