Business Research Report: Woolworths Limited - Structure and Analysis

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This report provides a comprehensive analysis of Woolworths Limited, a major Australian retail organization. It examines the company's organizational structure through front and backstage flowcharts, illustrating the flow of power and management. The report highlights the significance of service encounters in attracting and retaining customers, contributing to Woolworths' high revenue ranking. Furthermore, it delves into the managerial implications of the organizational structure, emphasizing the importance of effective decision-making processes, the role of the board of directors, and the delegation of responsibilities to key personnel like the CEO, CFO, and HR director. The analysis concludes that Woolworths' success stems from its efficient operations, robust management structure, and customer-centric approach, resulting in high customer satisfaction and market position.
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SOCIAL NETWORKS IN BUSINESS RESEARCH
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Woolworths Limited is a major Australian organization that involves in the activities
of retailing products physically and through the internet. The organization is international
since it has managed to expand its operations beyond its local Australian borders to New
Zealand. It is also the second largest organization after the Perth-Based organization, basing
this ranking on revenue. The operations of the organization are said to be retail based, mostly
because it mainly relies on suppliers to obtain its products, with some of these products being
finished goods that await being sold to the end users. The success of this organization is
mainly attached to its able leadership, which has provided the right direction for the
organization through the highly effective and capable decision that it has been making. This
paper provides both the front and the back stage flow charts of the organization, an
explanation of how significant the services encounter is to the organization and clear analysis
of the implications of the organizational management (Woolworths, 2017.)
Organizational Flow Chart
The organizational flow chart shows the flow of power and management within the
organization. Is simply reveals the supremacy of all the positions within it and who the
organizational employees are answerable to.
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Backstage Flowchart
In all organizations, there are both the front and back stage aspects of an organization.
The front stage refers to the specific aspects that are open to the public and the perception
that the organization has made clear for all individuals to view and understand about how it
operates. These aspects are however very different with the reality of operations. The
backstage provides a clear view of how the organization operates, with the inclusion of the
many aspects that customers are not able to view. The following organizational flow chart
represents the backstage organizational structure of Woolworths Limited organization
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Front Stage Flowchart
Apart from the flow chart above, have a different view and understanding of how the
organization operates. The flow chart below is known as the front stage flow chart of the
organization, and reveals the perception that the public has on how the organization operates
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Explanation of significance of the service encounter
Service encounter is simply the means through an individual or organization provides
services to another individual or organization with the aim of attaining gains from the same.
Woolworths Limited organization has established a strong business management structure
with an aim or ensuring that it offers high-quality goods and services to its customers. The
organizational service encounter has remained effective for a long time, an aspect that has
helped the organization attain the second ranking based on its revenue in Australia. The
organizational service encounter is thus of significant importance to the organization, and it is
the main reason why the organization has managed to maintain its customers and even obtain
royal ones who only purchase goods and services from it.
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The first major significance aspect of the organizational service encounter is the fact
that its effectiveness has attracted a large number of organizational customers. The customers
of any organization are only attracted to that organization by the capabilities that the
organization reveals in offering its services. Customers cannot become loyal to an
organization that does not satisfy them with the services that it offers. From the management
structure and strategies that Woolworths Limited organization utilizes, it is clear to view and
understand the means through which it manages to win the willingness of the customers to
purchase its products and services. Individuals have a significant will to ensure that they
implement effectiveness in their operations and that they remain in complete control of all the
important operations at hand.
Analysis of Managerial implications
Organizational management is the most important aspect of any organization. An
organization is highly effective in its operations when its management has established a
strategy and means of operation that ensures all the decisions being made are appropriate and
beneficial to its progress. From the backstage flowchart of the Woolworths organization, the
first aspect of consideration is the means through which it ensures that organizational
employees remain completely effective and capable of maintaining effectiveness. The
organization has established a solid management structure that ensures it is run by a group of
individuals and its decisions are not made by a single individual. The organizational chief
executive officer is the individuals that a large number of people consider to be the main
decision maker. From the backstage management flowchart, however, it is clear that the CEO
of the organization is answerable to a group of organizational directors who formulate the
board of directors. This board is thus the group of individuals that make the most important
decisions of the organization (Child, J. 2015).
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The CEO of Woolworths Limited organization is a senior individual and a highly
reputable decision maker for the organization. Being given such a position in any
organization requires an individual that is highly skilled and capable of maintaining the
effectiveness of operation within an organization. Despite all these skills, however, it is still
difficult for an individual to operate without making any form of mistakes. This aspect is the
main reason why the organization has established the board of directors as the overseeing
body that determines whether the decisions that the CEO makes are4 the most appropriate
decisions that should be made for the organization. This is because making even a single
wrong decision in such an organization might cause major problems with aspects regarding
the organizational operations and profit making process (Takahara, Y. & Mesarovic, M.
2004)
Despite these aspects, however, the board only address the most important matters but
allows the organizational CEO to handle the rest of the issues. This is considered important
because, like all other individuals, CEOs do not operate well when they are put under
pressure. Since the most skilled individuals in an organization are the people considered for
the chance of becoming organizational CEOs, it becomes appropriate to give them an
opportunity to govern the organization without too much interference by the board of
directors on the routine decisions that they make. It is thus clear that the success of an
organization significantly relies upon the effectiveness of that organization in its operation.
The other important aspect of consideration is the extent to which the organization has
established effective governance at all levels of operation. Woolworths Limited is a
significantly large organization, and thus every decision that is to be made cannot be referred
to the organizational CEO. To maintain a high level of decision-making effectiveness, the
organization has selected a group of highly skilled individuals to hold important positions
within the organization and has given them the mandate to make important decisions within
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there are of operation. These individuals among others include the Chief Financial Officer
and the General Human Resource director. With such high form of organizational
stratification and division of operation, the organization manages to run smoothly, with all
the important decisions being made in an effective way (Pinterest, 2017).
In conclusion, Woolworths Limited organization has established a significantly stable
form of operation that enables it to manage to remain among the best organizations in
Australia. The organization has also established a good management structure that ensures its
decisions are made in the most effective way possible. Through its operations and
effectiveness of operation, the organization has managed to enhance effectiveness in the
services that it offers, an aspect that has attracted a large number of customers to the
organization.
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References
Child, J. 2015. Organization : contemporary principles and practices. Chichester, West
Sussex: Wiley.
Pinterest, 2017. Explore Organizational Chart: Pinterest. Available at
https://www.pinterest.com/pin/276689970835302273/
Takahara, Y. & Mesarovic, M. 2004. Organization Structure. Boston, MA: Springer US.
Woolworths, 2017. Woolworth’s Management Structure. Woolworths Limited. Available at
http://orreconomics.weebly.com/management-structure.html
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