Report on Woolworths Management Principles, Structure, and Strategy

This report provides a comprehensive analysis of Woolworths' management principles and organizational structure. It begins with an introduction and company background, followed by an in-depth examination of the organization's structure, including management and ownership, product offerings, innovation strategies, operational processes, and sustainability plans. The report also delves into Woolworths' market position, including a SWOT analysis that highlights its strengths, weaknesses, opportunities, and threats. The report concludes with recommendations based on the analysis, offering insights into potential improvements and strategic adjustments. The report emphasizes the importance of management's role in fostering sustainable growth, innovation, and positive stakeholder relations within the competitive retail market. The report underscores the importance of understanding the company's operations, market dynamics, and the impact of factors like innovation and sustainability on its overall performance.

Running head: MANAGEMENT PRINCIPLE
MANAGEMENT PRINCIPLE
Name of the student
Name of the university
Author note

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Table of Contents
1. Introduction..................................................................................................................................2
2. Company background..................................................................................................................2
3. Organization structure.................................................................................................................3
4. Recommendations......................................................................................................................11
5. Conclusion.................................................................................................................................12
References......................................................................................................................................14

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1. Introduction
Sustainable operations of businesses are supported through the suitable management
skills based on different managerial principles. The purpose of undertaking the report is to
identify the organizational structure that is followed by Woolworths. The research will also
focus on investigating the manner in which the management body of the organization undertakes
its operations for supporting the sustainable growth of the business. Therefore, the research will
help in understanding the different aspects of change that the organization might consider in
order to enhance the operations.
2. Company background
The Woolworths’ group is an Australian conglomerate, which operates different divisions
like grocery store chain, liquors, home care products and petrol. The diversification of the
product offerings of the business has helped in enhancing the chances of expansion in the
international markets. The organization was established in the year 1924 and holds its
headquarters in New South Wales of Australia (Woolworthsgroup.com.au 2018). The growth of
the organization is based on the different divisions that are held by the organization relating to
supermarkets, liquor, petrol and home improvement products. The continuous innovation
approaches that were undertaken by the organization have helped in supporting the sustainable
growth of the business operations. The revenue of the organization as computed by the end of the
fiscal year 2017 was A$55.669 billion. On the other hand, the net income of the organization
seemed to improve down the years from A$1.593 billion in the year 2017 to A$1.824 in 2018
(Woolworthsgroup.com.au 2018). The continuous development of the organizations is based on
the management’s approach towards attaining the long term objective of organizational

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sustainability. The estimated number of employees in the group was assumed to be 205,000 by
the end of the year 2018. The skilled workforce of the organization and the higher retention rate
of the same have helped the organization in undertaking continuous improvements in the
processes of the same.
3. Organization structure
3.1 Management and ownership
The management of the organizations is aimed at maintaining the smooth functioning of
the business processes through increased shareholder value. As per Brad Banducci, the CEO of
the organization, the enhanced operations of the organization is based on the identification of the
needs of the customers and the collaborative functioning of the management with the employees
(Woolworthsgroup.com.au 2018). The smooth functioning of the business is facilitated through
suitable communicational mediums that are utilized by the different departments in order to
ensure the integrative operations of the workforce. On the other hand, the different policies that
are formed by the management of the organization have helped inducing a positive workforce
culture, which has helped the business in facilitating the sustainability of the same. Diversity in
the workforce and inclusion of the LGBTI communities in the workplace has helped the
organization in upgrading the Corporate Social Responsibility of the same while operating in the
diverse regions.
3.2 Products
The product offerings of Woolworth’s are food and groceries, home and personal care
products, petrol, liquor and some other general merchandise in Australia and New Zealand. The

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major product offerings of the organization are based on the preferences of the customers
(Woolworthsgroup.com.au 2018). The quality of the products that are proposed by the
organization has helped the same in retaining the trust and loyalty of the customers adhering to
the sustainable approach of the same. The organization offers a large variety of vegetables, fruits,
meat, packaged products, magazines, dvds, stationery items and home care products. The wide
array of products that are offered by the organization has helped the same in expanding their
scopes of business in the different markets as per the needs of the customers (Pamfilie, Petcu
and Draghici 2012).
3.3 Innovation
The continuous innovations that are undertaken by the business have helped the same in
undertaking the sustainable approach in the international markets. The creation of WooliesX, a
digital business application, is one of the major innovations that is undertaken by the
organization in order to facilitate sustainable functioning of the same (Woolworthsgroup.com.au
2018). The organization successfully created business through catering to the needs of 6.2
million orders earning over $1 billion sales (Karadag 2015). The digitalization of the business
processes has helped the business in reaching out to the customers more viably with the product
and service offerings as per the needs of the same (Woolworthsgroup.com.au 2018). The key
elements that support changes in the organizational operations are specifically the support of the
stakeholders and the collaborative operations of the different divisions that are created by the
business organization. Foss and Hallberg (2014) stated that the organizational operations are
mostly supported by the stakeholder’s approach and participation in the innovation processes.
Stakeholders, specifically the investors play a major role in the innovation process that is
undertaken by businesses. The concerned organization holds positive relations with the

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stakeholders, which has helped the business in undertaking the unprecedented growth of the
same while operating in the international markets. The organization holds a strong R&D
department which has helped the business in maintaining the efficacy of the innovations in the
product development and distribution as per the needs of the customers. The R&D departments
of the organization have helped the management in understanding the priorities that are faced by
the same in order to sustain in the competitive markets. The infusion of digital technologies in
the organizational operations has helped the same in enhancing the operations of the same while
operating in the diverse international markets.
3.4 Operations
The organization is aimed at providing the customers with high quality products and
services as per the needs of the same. The key changes that are undertaken by the management of
the organization is based on the performance of the workforce and their commitment towards
work. The major aim of the organization is to retain the target customers through maintenance of
quality of the products that are proposed by the same. The organization holds large retail stores
through, which the customers collect their required commodities. On the other hand, the
organization has also made used of internet to create websites in order to facilitate online buying.
The options have helped the organization in boosting their sales through increasing the
availability of the products to the customers (Barney 2012). The quality assurance programs that
are undertaken by the organization have helped the same in monitoring over the quality of the
products and the processes in order to support the sustainability of the business. The
classification of the operations that are undertaken by the business are based on the primary
needs of the customers. The identification of the varied needs of the customers and thereby

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developing processes in order to support the preferences of the clients has helped the
organization in holding on to the sustainability of the same (Johnston and Girth 2012).
3.5 Sustainability plan
The sustainability plans of the organization is based on the diversification of the products
and the quality of the same in order to retain the loyalty of the customers. The organization has
undertaken steps to utilize different digital media platforms for promoting their products in the
competitive markets. Michael, Storey and Thomas (2017) stated that innovation plays a major
role in enhancing the sustainability quotient of organizations. the concerned organization has
taken steps to bring forth changes in the product offerings of the same while assessing the needs
of the customers. It has helped the organization in maintaining the efficacy of the product
offerings while operating in diverse international markets. The long term objective of the
organization is based on valuing the shareholders in order to maximize the investments for the
smooth functioning of the business processes. Killen et al. ( 2012) stated that the shareholders
contribute to the smooth functioning of the business through the capital. However, Hahn (2013)
believed that the stakeholders of the business like the employees suppliers and the like holds the
key for the sustainable functioning of businesses in the international markets. The organization
has formulated policies for strengthening relations with the stakeholders in order to enhance the
operations, which contributed to the sustainable functioning of the same (Peng 2017). The
management’s collaborative functioning with the stakeholders has helped the business in making
its quick progress in the international markets.
3.6 The market of the organization

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The concerned organization holds around 1000 stores in Australia and approximately 950
supermarkets and other convenience stores around the nation. The dynamic expansion of the
organization has helped the same in undertaking an unprecedented growth in the years. The
product offerings of the business are designed and distributed as per the assessment of the needs
of the target customers. The key changes that are undertaken by the organization in the process
have helped the same in maintaining the efficacy of the operations while undertaking expansions
in different regions of New Zealand and Australia. Priem, Li and Carr (2012) stated that the
growth of organizations are based on the digital configuration of the same in order to expand the
scopes of the markets. The concerned organization has also taken steps to develop strategies in
order to make a wider market penetration in the different economies for supporting the
sustenance of the same. The organization undertakes its different marketing operations under the
flagships Woolworth Home brand, Woolworth Select, Woolworths gold and the like in Australia.
It has helped the organization in segregating between the different preferences and needs of the
customers while placing their propositions in the market. On the other hand, the organization
also undertakes retail chains, which are located in Mexico, Austria, Germany and UK. It has
helped the enterprise in undertaking a deeper market penetration and expansion in the global
competitive scenarios (Woolworthsgroup.com.au 2018).
3.7 SWOT Analysis
Strengths
 Market leadership
 Market Segment penetration
 Employee policies
Weaknesses
 Similar or slightly higher prices in the
market
 Partial position of the organizational
product offerings towards the higher

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 Good Customer relation
 Huge customer base
 Enhanced quality of products
 Coordination among the stakeholders
and the management (Keupp, Palmié
and Gassmann 2012)
income segment
Opportunities
 Undertaking strategic acquisitions and
creating franchisees in different
economies will be helping the
organization in facilitating wider
expansion of the enterprise
 Brand promotion through dynamic
sponsorships and advertisements
Threats
 Rising cost of raw materials and issues
in the supply chain logistics
 Economic recessions relating to
different trade wars across economies
 New entrants in the market offering
substitute products (Meyer, Neck and
Meeks 2017)
The analysis portrayed the core capabilities and competencies that are faced by the
organization while operating in diverse international markets. The key change that is undertaken
by the organization has helped the same in undertaking expansion in the international markets.
Enhanced quality of products, good customer relations and the positive workforce culture that is
induced by the organization through policies has helped the same in undertaking the smooth
operations. However, slightly higher prices of the products have affected the buying behaviour
of the customers. On the other hand, it also affected the competitive advantage of the
organization over the other players in the market. The partial position of the products as per the

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assessment of the income of the customers has also affected the range of product offering sand
the scope of business expansion, as the company disregards the value of the free customers or the
financially weak customers who might turn out to be potential buyers in future (Hair et al.
2012).
The economic recessions and the new entrants in the market might affect the competitive
position of the business while operating in diverse international markets. However, the
coordinative workforce is one of the major strengths of the business, as it will be assisting the
management in undertaking different changes in an unfavourable situation. The positive
workplace culture of the organization has helped the management in enhancing the operations of
the workforce as per the needs of the business. Doz (2017) stated that a coordinative workforce
is boosted with the ability of undertaking operations as per the plans of the management, which
helps the business in achieving the goals of the same. Therefore, despite of all the issues that are
faced by the business while undertaking its operations, strong relations with the stakeholders will
be helping the business in avoiding different uncertainties. It will be helping the organization in
facilitating the smooth operations of the business processes (Aguinis, Edwards and Bradley
2017).
3.8 Risk assessment and control
The organization undertakes different strategies in order to assess the different market
risks that are faced by the same. Survey and assessment of the market conditions of the business
has helped the organization in upholding the efficacy of a strong R&D department. Grunig
(2013) stated that the smooth functioning of the business is based on the risk management
framework that is chosen by the organization. The risks that might be encountered by

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Woolworths are based on the parameters of strategic, operational, compliance and financial risks,
which are associated with the retail operations. However, the organization adheres to the
enterprise risk management framework in order to enhance the operations through avoidance of
the different risks. Vaccaro et al. (2012) stated that the identification of the risks and the
evolution of the same helps the organization in framing different strategies in order to overcome
the uncertainties. The identification of the risks that might be faced by the concerned
organization has helped in enhancing the operations in order to support the competitive
advantage of the business. The control systems that are utilized by the organization are based on
the assessment of the severity of the risks that are faced by the business. A team of risk
management experts is employed in the concerned organization and is assigned with the task of
identifying all the market risks that might be faced by the organization. It will be helping the
organization in undertaking consultations for avoiding the risks.
3.9 Corporate social responsibility
The organization retains a diversified workforce and enforces a positive environment in
the workplace, which has helped the organization in boosting the morale of the employees in
order to enhance the profitability of the same (Goetsch and Davis 2014). On the other hand, the
green initiatives that are undertaken by the organization like the reduction of CO2 emissions by
the end of ear 2018 and banning the utilization of plastic for packaging purposes has contributed
significantly to the welfare of the environment. The different initiatives of the organization
relating to sponsorships in different charitable trusts have helped the same in adhering to the
interest of the communities and their perpetual development (Johnson 2014). The organization
undertakes different direct community investments in order to develop the lifestyle of the people
and thereby help in the prosperity of the region. The financial stability is one of the major

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supports through which the organization undertakes the smooth operations of the processes.
Oreg, Michel and By (2013) stated that the sustainability of businesses are dependent on
allocation of resources and the decisions that are undertaken by the management through an
assessment of the situation. Therefore, Woolworths has taken all possible steps to undertake the
corporate responsibility of the business while operating on the aims of maximizing the
profitability.
3.10 Assumptions for future growth
The growth of the retail sector will be helping the organization in expanding in the
international markets more viably. On the other hand, digitalization of the processes has helped
the organization in undertaking the smooth functioning of the business operations while
operating in the diverse international markets. The growth of the e- commerce industry will be
helping the organization in reaching out to a large number of customers through minimal
expenses. It will be helping the organization in maximizing its profits while operating in the
international markets.
4. Recommendations
The recommended actions that might be undertaken by the concerned organization are
being discussed in this section of the research:
 The organization might undertake a survey of the interests of the customers and thereby
frame impartial positioning of the products in order to attract the attention of the free
customers along with the potential customers. The organization might undertake long