Gap Analysis and Change Management Plan for Woolworths Supermarket

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Portfolio Assessment 2
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Table of Contents
Introduction......................................................................................................................................3
Gap Analysis....................................................................................................................................4
SWOT Analysis of Woolworths..................................................................................................4
Areas of Gap................................................................................................................................6
Leadership and Change Management Plan......................................................................................9
Leadership changes required.........................................................................................................14
Conclusion.....................................................................................................................................16
References......................................................................................................................................17
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Introduction
The report has been developed in order to conduct an effective gap analysis and develop a
Leadership and Change Management Plan. The Gap Analysis will aid in identifying the gaps
between the desired state of performance and the current state of performance. The gap analysis
will create opportunities to determine the factors that are leading towards the issues in the
performance. The analysis will also focus on determining the strategies and approaches that will
support for covering the issues and strategizing development of the organizational performance.
The report will develop a Leadership and Change Management Plan to ensure for overcoming
the issues and gaps identified in the organization.
The company undertaken in order to perform the gap analysis is Woolworths. It is an Australian
supermarket and grocery store chain established since 1924. The company is currently operating
by undertaking 80% of the market share in consideration with Coles.
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Gap Analysis
The gap analysis is a managerial approach in which the differences between the current state of
performance and the desired state of performance are analyzed. The gap analysis is an approach
through which the gaps in performance are identified and structured in order to develop
corrective strategies and approaches. The gap analysis includes for different stages and
processes which will structure for identifying factors contributing to the gaps in performance.
Woolworths operates on wide scales and includes different processes that require effective
coordination in order to accomplish the organizational aims and objectives. There are different
frameworks available to conduct a gap analysis; SWOT analysis will be applied in this case to
identify the gaps.
SWOT Analysis of Woolworths
Strengths
Woolworths shares a loyal and a long term customer base which has supported for the expansion
and diversification of business into different sectors and business operations. The business is
supported with market leadership in the Australian retail market along with Coles. The long term
business and customer relations supported the business targeting different segments and target
markets in the supermarket industry (Productivity Commission Inquiry Report, 2012). The
business initially started by focusing on the rich and wealthy section of society. The movement
to lower sections and lower market volumes discovered an increased market base for the
organization.
The company also has an advantage of covering different sections and segments of the products
provided in the orbits of its operations. The business has diversified into sections like household
products, consumer goods, and baby product, etc. The company exercises effective customer
relations and tracking to support the loyal base and diversity in the markets. The business
exercises effective customer relations and has developed strategies to support for fetching
customer feedbacks and opinions (Retail Food Sector Report, 2017). This is integration with the
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aggressive and effective marketing and promotional strategies executed throughout various
levels has developed an effective impact on the business and its operations.
Weaknesses
The business has lately been accused of unethical human resource policies and strategies which
has created undue pressure on the employees. The business witnessed scenarios of high
employee turnover and absenteeism in the majority of the stores of Woolworths due to service
process and designing. The business observed issues within the leadership styles and approaches
adopted at the business. Increased working hours and restrictions exercised at the employees
developed issues such as lower motivation and decreased the level of performance of the
employees at the stores (Riasi, 2015). The managers and leaders exercised an increased level of
pressure on the employees to work in an unjustified environment and surroundings. The
employees also witnessed the issues of unstructured wages systems and pay scales.
The business has also been challenged with the practice of price wars and the increasing level of
competition in the industry. The company has also been witnessed with challenges of increasing
costs for operations. The Bick and Mortar concept of stores has been adding up the costs for the
business. The operations are costing more as compared to the online services and products
provided in the contemporary business environment.
Opportunities
The business has opportunities to develop the current state of operations and services. The
business can focus on developing the Brick and Mortar supermarkets as high urban stores and
super hubs. The business has opportunities to invest in wine markets and urban preferences of
the customers. According to IBIS World, the supermarket industry will observe the development
of traditional stores into super hubs providing with lounge and urban setting facilities for the
customers. The business has the opportunity to develop such settings to resource the operational
costs and expenses for the stores (Richards, et. al., 2012). Furthermore, the business has the
opportunity to diversify and invest in lucrative markets and scenarios where cheaper labor and
other resources are available. The business can be benefitted by investing in a lucrative market
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such as Asia where cheaper human resources are available to accomplish the organizational and
market aims or objectives.
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Threats
The business in the supermarket industry operates under a highly competitive business
environment. Woolworths has observed the emergence of major international market players in
the supermarket industry of Australia. The industry is observing entrance of global market
competition and organizations into the industry which is developing pressure for price wars.
These global organizations are providing with unrealistic and cutthroat competition in the face
of prices and discounts offered to the customers (Tanaka, et. al., 2017). The business has also
observed increased adoption of own brands and labels that are providing competition for the
local and regional suppliers. The customer is being more aware and educated about different
alternatives and options provided to them regarding the purchases and satisfaction of the
demands. The customers are demanding for more healthy and nutritional products that target for
effective and healthy satisfaction of the demands.
Areas of Gap
With the above discussions and observations, various areas of the gap have been identified that
are impacting on the performance of Woolworths. These areas are the scope of improvements on
which the business can focus to develop the performance. It has been identified that these areas
of the organization and its performance are restricting the growth and development of the
organization. These gaps are discussed as below:
Service Process Design
The operations and services required to be accomplished by the employees are complex in
nature. These processes impact on the performance and the organizational effectiveness of the
organization on a whole. The business has analyzed the poor performance of employees due to
complex processes and structures of the services and operations. For instance, the self-checkout
systems and counters available at the stores still require the presence of administrative staff to
support the customers with complex checking out procedures (The Balance, 2017). The business
has observed an increase in the number of employee turnover in the stores due to the complexity
of procedures and processes. The employees have often complained about lengthy processes and
procedures which consumes the time and efforts of the employees.
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Demand and Capacity Management
The business and operations of Woolworths have also observed the issue of ineffective demand
and capacity management. The managers at Woolworths have been complained of developing
excessive pressure on the employees at the times of high sales volumes and peak seasons. It has
been witnessed that managers and administrative staff at Woolworths practices unethical human
resource management practices that have resulted in a deficient of the actual and desired states
of performance (Trevena, et. al., 2015). The employees are forced to work overtime and are
pressurized to work in a discriminative environment. This has impacted on the motivation level
and performance of the employees at Woolworths.
Supply Chain Management
It has also been observed that the organization is facing issues within the supply chain
management and networks of the business. With an increase in the management of operations
and scope of business for Woolworth's issue have been arising in the supply chain management
systems and networks. The business has observed issues in the tracking and detailed processes
of the business. The tracking systems of loads of products being unloaded and unlogged at the
ports are ineffective as they lack for proper communication between the employees (Wu, et. al.,
2015). The bulk orders are often omitted which results in piles of inventory causing an increase
in operational costs for the business. The communication gap between suppliers and the
employees results in faults and conflict within the employees. This impacts on timely delivery of
the products to the customers and hampers development in the sectors of the organizational
performance.
Ineffective Leadership and Management
The business has also observed the issue of ineffective human resource planning and
management. The employees have complained about unstructured wages policies and strategies
at the organization level. Woolworths has been exercising ineffective human resource policies
which have led to differences in the wages and incentive systems for the employees (Noe, et. al.,
2017). The employees complained about ineffective incentive policies and motivational
approaches practiced at the organization. It is extremely necessary for contemporary and
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dynamic business organizations to establish effective human resource planning and management
to ensure employee stability.
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Leadership and Change Management Plan
Leadership is the ability through which an individual is able to direct and motivate the
employees in the desired direction. Leadership ensures for effective accomplishment of the goals
and objectives through the integration of efforts of the employees and the employers. Leadership
is required in dynamic and contemporary business organizations to support effective operations.
The discussions and observations above have identified different issues in the leadership styles
and practices executed at Woolworths.
Change management is an integral part of the development and growth of an organization.
Change management is referred to as a management approach which is executed in order to
smoothly execute and develop the changes in an organization. Changes in an organization are an
inevitable force and dynamic in nature (Brewster, et. al., 2016). These changes develop for
growth and instill development to ensure for effective accomplishment of goals and objectives.
There are various factors such as internal and external that impacts on the performance and goal
attainment activities of the business.
In the given case scenarios there are different factors contributing to engaging in leadership and
change management to ensure for effective business administration. These factors are
recognized as Service Process Design, Demand and Capacity Management, Supply Chain
Management and Ineffective Human Resource Planning and Management. The leadership and
change management plan below will provide a description with different approaches and
strategies to be undertaken by the management of Woolworths to ensure for increased
effectiveness and productivity in the organization.
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Current State
(Change
Requirement)
Desired State
(Change
Implementation)
Approach
(Change Strategy)
Time Duration
Service Process
Design:
The business is
observing issues in
designing the service
processes. The issues
relate to the
complexity of
procedures and
integration of
different activities.
It is required at
Woolworths to
develop effective
service processes and
programs which
supports for effective
performance.
The managers are
required to resolve the
issue of lengthy and
integrated processes.
The approach of
redesigning the
service processes and
procedures is
required.
This approach will aid
in designing the
service processes and
procedures as per the
requirements and
needs of the
employees
(Productivity
Commission Inquiry
Report, 2012).
Redesigning will also
support for
simplifying the
processes and
structuring in an
effective manner.
The time duration
required to implement
these changes is
determined to be 3
months.
Demand and
Capacity
It is required in the
business operations
The business
managers must focus
In order to implement
these approaches and
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Management:
The business and
department managers
are facing issues in
management in the
demand of the
products and the
capacity of the
workforce to manage.
Workers are often
compelled to work
overtime in
unjustified manners to
achieve the
requirements of
business and its
operations.
and processes to
effectively manage
and organize the
demand and supply
forces.
The business
managers are required
to develop strategic
alignment between the
customer needs and
the supplies at the
warehouses and the
stores.
Effective leadership is
required in the sector
of demand and supply
management
(Malagueño, et. al.,
2019).
on ensuring the
effective balance in
the demand and
supply management at
Woolworths.
Management of
human resources is
required to provide
with effective supply
during peak seasons
and high demands.
The leaders are also
required to develop
and implement
strategic leadership
approaches and
policies to support for
higher motivation and
employee integration.
changed leadership
strategies, the time
duration of 4.5
months is required.
Supply Chain
Management:
The company is also
observing issues with
supply chain
management and
network distribution.
Woolworths is
required to
strategically organize
and administrate the
order and delivers in
the operations.
The business can
apply the strategy of
Continuous flow
model (Mylan, et. al.,
2015).
Under this model, the
supply chain
The time duration
required to implement
this model in the
systems and processes
of Woolworths is 6
months.
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