Impact of Australian GDP Decline on Woolworths Limited (BIZ202)

This presentation examines the economic impact of the Australian GDP decline from 2012 to 2016 on Woolworths Limited. It evaluates how the decline affected the business's performance, including lower productivity, reduced demand, and changes in customer spending. The presentation highlights unsuccessful reactions taken by Woolworths, such as declining profit margins and increased spending in various areas. It concludes with recommendations for improvement, including the application of modern technology, increasing the supply of goods and services, and focusing on employee retention. The analysis emphasizes the importance of understanding external environmental factors and adapting business strategies to maintain a competitive position in the marketplace. The presentation uses sources like Trading Economics and various academic journals to support its findings.

Speaker Notes
Slide 1:
This presentation discusses the economic event that affected to the performance of the
business. The vent is associated with GDP rate losses in Australia in the context of
Woolworths limited. During 2012 to 2016, GDP rate has been declined in Australian
negatively affected to productivity to Woolworths. It evaluates how the GDP decline the
performance of business. It demonstrates unsuccessful reactions taken by Woolworths at the
time of 2012 to 2016 in oppose to their performance. In last, it recommends many strategies
that were taken by the firm to have the decision in the context of business growth.
Slide 2:
The economic factor affected the performance of Woolworths. In Australia, the GDP rate has
been declined from 2012 to 2016 for affecting the performance of a business.
(Source: Trading economics, 2019).
From the analysis, it is founded that GDP rate of Australia has been continually declined
from 2012 to 2016 that was a big economical event as it directly affected the performance of
the organization. It is illustrated that GDP could decline the opportunity of Woolworths to
increase their productivity and retain their position in the marketplace. In this, it is founded
that GDP is a factor that affecting to an income level of consumers that decline the

consumption level of employee. It would be affected the overall performance of the
organization (Trading economics, 2019).
Slide 3:
The lower GDP could create many issues in the organization named as lower productivity,
lower goods and services demand, and modification in customer spending. It is founded that
the rate of GDP could decline possibilities of operating the business at a high level, which
would affected to the productivity of firm. The lower GDP rate could decline the income
level of employee that would mandate them to spend less on consumer goods. Consequently,
it would be affected by the overall productivity of the organization. The lower GDP could
also decline the demand for goods and services because it affected to disposal income of
people. (Botha, Kourie, & Snyman, 2014).
Slide 4:
It is illustrated that rising in the interest rates and reduction in the government might be
affected due to the lower level of GDP. During lower GDP rate, consumers could spend less
on their consumer products and services. They prefer to have only more essential products
which might be influenced by the overall productivity of the organization (Wetherly, 2014).
Slide 5:
During 2012 to 2016, the organization has taken many actions to improve their performance
but it was unsuccessful. There are two activities that majorly reduce the production of the
organization named as decline in the profit margin and spending in divers sectors. It is
founded that organization has declined its profit margin for increasing their sale but the low
income level of people could decline possibilities of consumption level (Apăvăloaie, 2014).
Slide 6:
Woolworth has increased its spending in many areas to get profit and improve their condition
during the lower GDP but this action negatively reflected the overall performance of the

organization. Another act that was taken by their organization was a decline in the employee
income cause of the lower level of profit which has demotivated the employee to work in the
organization. Consequently, it increase employee turnover in the organization (Kolk, 2016).
Slide 7:
With respect to the above discussion, it can be concluded that a lower level of GDP could be
affected by the performance of the organization as it could be a major economic factor. In
Australia, most of the retail organization was influenced during 2012-2016. It can also be
summarized that the lower GDP has been directly as well as indirectly affecting the
performance of the firm. It declined some essential factors as it affected to the performance
named as lower productivity, lower demand of goods and services, changes in the customer
spending, rising interest rates, and reduction in the government rates. It can also be
summarised that from 2012 to 2016, the organization has taken many actions to improve their
performance but it was unsuccessful. Two activities that majorly declined the productivity of
the organization was a decline in the profit margin and spending in many areas.
Slide 8:
For improving the performance of the firm, Woolworth should take many activities that are
known as the higher application of modern technology, increasing the supply of goods and
services at a high level, and increasing the retention level of an employee by considering an
effective tool of motivation (Wetherly, 2014). These ways could offer a path to the
Woolworths to improve their business performance and retain their position in the
marketplace. An organization should be needed to invest in modern technology due to
improving the skills of employees and retain them for the long-term. Consequently, it will be
affected by the overall performance of the organization (Botha, Kourie, & Snyman, 2014).

References
Apăvăloaie, E. I. (2014). The impact of the internet on the business environment. Procedia
Economics and Finance, 15, 951-958.
Botha, A., Kourie, D., & Snyman, R. (2014). Coping with continuous change in the business
environment: Knowledge management and knowledge management technology.
Elsevier.
Kolk, A. (2016). The social responsibility of international business: From ethics and the
environment to CSR and sustainable development. Journal of World Business, 51(1),
23-34.
Trading economics (2019). Australia GDP, retrieved from
https://tradingeconomics.com/australia/gdp
Wetherly, P. (2014). The business environment: themes and issues in a globalizing world.
Oxford University Press.