University Management Report: Woolworths Change Management Strategies

This report provides a comprehensive analysis of Woolworths' need for organizational change to improve its market position. The report begins with an executive summary, followed by an introduction and overview of Woolworths. It includes an internal and external analysis using SWOT and PESTEL frameworks to identify areas requiring change, such as technological innovation and online presence. The report then reviews relevant literature on change management theories, including Lewin's and Kotter's models. It evaluates potential strategies, such as technological advancements like robotic food delivery, and offers specific recommendations. The analysis covers resource requirements for implementation and concludes with a summary of findings, emphasizing the need for Woolworths to adapt to remain competitive in the market. The report highlights the importance of addressing weaknesses in online presence and the impact of competitor strategies. This report offers valuable insights for management to make informed decisions.

Running head: MANAGMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
Change in the structures, strategies along with operational procedures of the companies are
the crucial elements which needs to be incorporated by different companies for improving the
effectiveness of the company in a suitable manner. In the respective assignment, concept of
the organizational change can be linked with different principles of companies which can be
followed by Woolworths for improving their position in the market. With the help of
PESTEL and SWOT analysis, it can be seen that the technological innovation and offerings
of Woolworths are the two major concerns which needs to be settled with the suitable
strategies and change management models. Lastly, the technological innovation with the
inclusion of the Robotic Food Delivery options are the effective elements which can be
implemented by Woolworths for improving their position.

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Table of Contents
1. Introduction and Overview of Woolworths...........................................................................3
2. Internal and External Analysis of Woolworths for Identifying Areas Requiring Change.....4
SWOT Analysis.....................................................................................................................4
PESTEL Analysis...................................................................................................................5
Summary of Areas where Change is Required......................................................................6
3. Literature Review on Change Management Theories or Frameworks..................................7
4. Evaluation of Possible kind of Strategies for Improving Situation at Woolworths...............9
5. Recommendations of Suitable Strategies.............................................................................10
6. Analysis of Resources for Implementing Suitable Strategies..............................................11
7. Conclusion............................................................................................................................12
References................................................................................................................................13

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1. Introduction and Overview of Woolworths
Change in different structures, operational procedures as well as strategies of the
companies are necessary for the sustainability of the business. With the help of the
sustainable change, it assists in directing the transitions in company and it affects the overall
productivity of the company. It is considered to be the tool which describes significant
restructuring of the organization as the strategies of change assists in providing the customers
and employees with a proper and enhancing experience suitably (Teixeira, Gregory & Austin,
2017). The report throws light on analysing and identifying the organizational change which
is required to be implemented at Woolworths for receiving success in the competitive
business environment. With the help of external and internal analysis of Woolworths, the
different areas are required to be recognized wherein proper change is needed. The literature
review will be helpful in discussing different frameworks and theories which can be helpful
in developing suitable strategies for the success of the company.
Woolworths is considered to be the Australian grocery store which is owned by
Woolworths Group and it was incorporated in the year 1924. The company is headquartered
at New South Wales, Australia and they are operating in more than 995 locations which has
been helpful for them in increasing their effectiveness (Woolworths.com.au 2019). The
employees who are employed at Woolworths includes 115000 till the year 2018 and there has
been high level of increase in revenue of the company which is amounting to A$56.726
billion till the year that has been able to make them the most premium and pioneer companies
in the market.

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2. Internal and External Analysis of Woolworths for Identifying Areas Requiring
Change
With the help of internal and external analysis of the business environment of
Woolworths, it will be helpful for identifying and assessing the different areas wherein the
change is required. The SWOT and PESTEL analysis are required to be incorporated for
understanding the changes which needs to be included for Woolworths as to gain the strong
presence in the market and improve their profitability in comparison to the other companies
which are major competitors and restricting their growth.
SWOT Analysis
Strengths- Woolworths is one of the pioneers and it is considered to be among the
oldest organizations which have been successful in introducing the modern retail model. The
strong brand name and image are the two aspects which helps Woolworths in becoming
successful and it has become popular in the Australian economy (Tang, 2019). There are
more than 115000 employees that is considered to be the other aspect which will be helpful
for them in gaining strong presence in market.
Weaknesses- The company has limited global presence in the market in comparison
to the companies such as Wesfarmers or Target supermarket. In the current era, there has
been high level of increase in the online companies which are able to grow fast, however, in
the respective scenario, there has been restriction in growth of the company negatively.
Moreover, there is price war for Woolworths with their nearest as well as strongest
competitor Coles (Steigenberger, 2015). Due to the same, Woolworths have been facing high
level of blunders of pricing which has resulted in major losses in the past for Woolworths.
Opportunities- Woolworths Supermarket can promote their brand with advertising or
sponsorships that can be beneficial in bringing change in the company. There can be proper

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innovative procedures which can be incorporated by the company as it will be helpful for
making the company (Sofat, Kiran & Kaushik, 2015).
Threats- There is high level of competition present in the market from the
international players which is affecting business of Woolworths (Schmidt, Groeneveld & Van
de Walle 2017). The customers in the current scenario prefer the different products which are
healthy and it is becoming a huge challenge for Woolworths to manage the effectiveness. The
organic and the different chemical free products are in huge demand that is affecting their
effectiveness in market that is leading to negative impact and threat on the business of
Woolworths as well as they are not focused towards providing such experience to customers
(Noe et al., 2017).
PESTEL Analysis
Political Aspects- Woolworths is one of the big brands, however, there are different
kinds of political aspects which needs to be followed by them. Firstly, ban of plastic usage
led to slowdown in initial months has affected the growth of the company negatively.
Relatively, the retail market is stable in nature which makes Woolworths stable in the host
country as well (Morin et al., 2016). Moreover, due to trade war, foreign investors are
reluctant in investing in Australian economy that creates pressure on Woolworths.
Economic Aspects- In case of economic environment, Woolworths tried to initiate
various loyalty programs, however, it led to failure of the company in market of United
Kingdom. There is lack of innovation in the different aspects such as products and services
which are being delivered by them to the different customers (Lozano, Nummert &
Ceulemans, 2016). Woolworths needs to work on being more innovative as well as
meaningful organization that helps them in gaining trust among customers and improve their
satisfaction approach.

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Social Aspects- The different customers are considered to be the central source of
various business organizations as they generate high level of revenues in the market
effectively. As the focus of the customers are changing in the current scenario, it is affecting
the profitability of the company Woolworths as they are not diversifying their business units
and due to the same, it is leading to the dissatisfaction among customers (Lozano, Ceulemans
& Seatter, 2015).
Technological Aspects- Woolworths does not have strong online presence through
their official website for their customers. Due to the same, it is affecting the growth of the
company in competitive business environment and they are not being able to gain stronger
position in the market as well (Lines et al., 2015). The other competitors such as Wesfarmers
and Target supermarkets are able to generate high level of revenues in market as there is huge
online approaches and innovations which are done by them in comparison to Woolworths
which is lagging behind.
Legal Aspects- Woolworths have been capable of introducing the different legal laws
and legislations which make them efficient. However, there should be proper incorporation of
different rules and regulations regarding the stocks up to date and avoid legal claims against
the different products which are sold by them (Levasseur, 2015). In such scenario,
Woolworths will be able to become effective in nature in reducing claims of such legislations
successfully.
Environmental Aspects- Woolworths have been successful in participating in
different kinds of recycling activities for reducing the wastage in landfill and making the
company efficient in the environment approach (Kotter & von Ameln, 2019). The
sustainability goals of Woolworths have been successful wherein they are boosting the
sustainable development and improve their presence in the market in a successful manner.

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Summary of Areas where Change is Required
From the analysis of internal and external business environment of Woolworths
Supermarket, there are few areas wherein proper change is required to be incorporated by
Woolworths as to improve their position in the market and gain competitiveness in the market
as well. Firstly, Woolworths need to increase their offerings which are required to be
provided to the different customers in the market as in the current scenario, there is high level
of pressure from competitors, which is impacting their growth prospects. The other weakness
of Woolworths is the limited global presence as there is lack of innovation in the services
which are delivered to the customers. During such scenario, there can be situations for
satisfying the requirement of customers and improve their satisfaction level effectively as
well (Jones et al., 2019).
On the external front of the environmental analysis, it can be noticed that Woolworths
have been facing high level of competition from Wesfarmers and other companies and the
main reason is technological downturn of Woolworths. Woolworths is not capable of
providing the customers with the updated version of the robot delivery that can be helpful for
them in improving their profitability and managing the experience of customers suitably as
well.
3. Literature Review on Change Management Theories or Frameworks
The respective section deals with the change management model as well as
explanation of the different theoretical frameworks of respective model successfully. Change
management in the organizational or managerial level is conceived to be one of the most
important aspects that needs to be incorporated by the companies to become successful and
enhance their effectiveness. As commented by Hornstein (2015), the change management is
considered to be the structured kind of approach to the different companies, teams as well as

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individuals from the current scenario to the desired aspect which is required to be
incorporated by the companies and improve their effectiveness.
However, as opined by Christopher and Sarens (2015), there is resistance to change in
the process of change management wherein the employees or the different officials feel that
they are not being involved to become the part of the process and it affects their morale
negatively as well. In order to implement the changes, there are various models which can be
incorporated by the organizations for improving their performance. According to Chen et al.
(2019), as per the Lewin’s Change Management model, there are three major stages which
are being incorporated for generating innovation in workplace and it will be improving the
morale of the employees. Unfreezing is the first stage that includes the change preparation
wherein the company and employees are prepared for the change and the fact that the change
is required and needed in an essential manner.
On the other hand, change is the second aspect wherein the actual transition which
takes place and it takes place as there will be embracement of the changes which will be
successful for the company. In the respective scenario, communication and planning are the
two key elements which should be managed by the company as it will be enhancing the
growth of the company positively.
Lastly, refreezing is the ultimate stage wherein change has been accepted by the
different employees and overall management of the company. It is considered to be the phase
of refreeze wherein the company and the employees will be aware regarding the change and
they will be performing the activities on that manner without any kind of attrition or
resistance to change.
On the other hand, as commented by Chad (2015), Kotter’s Change Management
Theory is the other aspect which needs to be implemented by the company in such a manner

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which is easy to be incorporated by the companies and improve the situation suitably. It is
one of the popular models and the main idea behind the respective model is the fact that the
change will be adapted by the different employees and they will be preparing themselves for
the change which will be benefitting them and the company as a whole. Moreover, as opined
by Cameron and Green (2015), there are eight steps which are included in the process
wherein it is described as follows:
As commented by Buick et al. (2015), creating sense of urgency is the first step
wherein the people will be motivated and they are preparing themselves for moving towards
the respective objectives. Moreover, according to Altamony et al. (2016), building the team is
the second aspect wherein getting right people on team is the most essential strategy which
should be implemented with proper skills and commitment that will be leading to the success
of change implementation. As opined by Hargie (2016), getting the vision correct through
emotional connect as well as objectives which will be suitable for the effectiveness of the
firm. As stated by Easley et al. (2016), the proper communication with the individuals is the
other aspect which should be adapted by managers of company as it will be enhancing their
goals and the change process will be working in a smooth manner. As to empower the
different actions, support is the crucial element that needs to be incorporated by the company
that will not be creating pressure on employees and it will be beneficial in starting an entire
change process. The company needs to focus on the short-term goals as it is the most
appropriate way in achieving success. Incorporating the change in the workplace culture is
the key element in the respective model which will be enhancing the effectiveness of
employees suitably.

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4. Evaluation of Possible kind of Strategies for Improving Situation at Woolworths
With the help of the process of change management models, there can be different
strategies which can be implemented by Woolworths for improving the scenario and generate
high level of effectiveness in the competitive business scenario. Woolworths needs to adapt
policy that is persistent in nature and in order to achieve the different aspects in long-run,
Woolworths can mainly focus on diagnostic as well as intervention approach for bringing
required changes in company. As commented by Ahmad (2016), technology is the first aspect
which needs to be incorporated by Woolworths as it will be bringing people close to one
another.
In case of Woolworths, the management support for the technological advancement
in company is necessary as it is critical in nature for the managers to show their support in
managing changes through interacting as well as communicating with the staff members.
Employees are the crucial part of the company and their opinions are required to be valued.
Employees can develop a level of comfort wherein the management will be supporting
process and it will be suitable for improving scenario efficiently.
Moreover, the case for the change is the other aspect which needs to be incorporated
by management of Woolworths which will be helpful for increasing their global presence in
comparison to Wesfarmers or Coles which have high level of international presence in the
market. As Woolworths is failing to satisfy the different requirements of the customers, the
different loyal customers are losing their faith from the brand. In such scenario, there can be
inclusion of the robotic home delivery of the products which are being purchased by the
customers (Easley et al., 2016). The respective approach will be suitable for the working
customers as they can be able to order the food items and get the delivery as per their
convenience.

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5. Recommendations of Suitable Strategies
From the analysis of the different strategies which are efficient in approach, the most
suitable strategy that can be adapted by Woolworths for increasing their overall profitability
and revenue generation in the market includes the aspects:
Technological Innovation through introducing the Artificial Intelligence Approach
can be adapted by Woolworths as it will be assisting them to become effective in competitive
business environment. The robotic food delivery options can be the most effective element
that can be introduced by Woolworths for implementing change. Due to the attack from rival
companies such as Wesfarmers, Woolworths have been affected negatively and customers are
changing their preferences (Easley et al., 2016). Technological Innovation is the main
element which can be helpful for Woolworths in becoming effective and it will be enhancing
their growth prospects.
However, the respective technological innovation will be adapted through the
inclusion of different employees in the process. The employees play a crucial role in
understanding the importance of the process and they can provide suitable solutions which
will be generating effective solutions for gaining competitiveness in the market. It is the duty
of management of Woolworths to check that there is no resistance to change among
employees as effective management and proper leadership skills are the key elements in
governing the organizational interest.
On the other hand, the involvement of different ranges of products are the other
aspect which is required to be introduced by Woolworths as to implement efficiency in the
process. Woolworths need to include cheap products in their offerings provided to customers
as the other competitors such as Waitrose along with Mark and Spencers are being able to
satisfy the customers through providing them with similar quality products at a cheap rate. As