Stakeholder Analysis of Woolworths: Business Environment Analysis

This report provides a detailed stakeholder analysis of Woolworths, a major Australian retail company. It begins by examining the company's functional areas, including sales and marketing, financials, customer service, human resources, research and development, and production and distribution. The report then identifies and discusses both internal stakeholders (employees, managers, investors, and the board of directors) and external stakeholders (customers, regulators, suppliers, and shareholders), outlining their respective roles and influence on the company. The analysis delves into the nature and degree of stakeholders' interests, highlighting potential conflicts and their implications. A stakeholder matrix is developed to visually represent the key stakeholders and their relationships. The report concludes with a summary of the findings and insights into effective stakeholder management within Woolworths, emphasizing the importance of balancing various stakeholder interests for sustainable business operations.

Running head: STAKEHOLDER MANAGEMENT OF WOOLWORTHS
STAKEHOLDER MANAGEMENT OF WOOLWORTHS
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Executive Summary
The report is built on the study of a company named Woolworths that functions in the retail
industry of Australia. The analysis is related to the methods by which the organization has
been able to develop different functional areas of business like, sales and marketing,
financials, human resources, production and distribution, research and development and
customer services. The internal and external stakeholders of Woolworths and their impact on
the operations of the company has also been discussed in the report in detail. The report has
provided a detailed picture related to the impact that stakeholders can have on the operations
of the company. The stakeholder matrix that is developed as a part of the report is also able to
show the major stakeholders of Woolworths.

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Table of Contents
Introduction and background information on your business example...........................3
Main discussion..............................................................................................................4
Identify functional areas.............................................................................................4
Identify internal and external stakeholders and their roles........................................6
Identify the nature and degree of main stakeholders’ interests, and implications of
conflicting interests................................................................................................................8
Identify the level of main stakeholders’ influence.....................................................9
Create a stakeholder matrix......................................................................................11
Conclusion....................................................................................................................12
References....................................................................................................................14

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Introduction and background information on your business example
Stakeholder analysis is considered to be major technique that is implemented by the
organizations in order to understand the requirements of the stakeholders who are the part of
a particular project. The proper identification of stakeholders is a major activity that needs to
be performed in order to ensure the success that can be gained by the company. The needs of
stakeholders and the methods by which they are able to affect the processes of the
organization can be understood with the support of stakeholder examination frameworks
(Agudo‐Valiente, Garcés‐Ayerbe & Salvador‐Figueras, 2015). The strategic view of the
stakeholders of the organizations is considered to be a significant factor that is related to
successful operations in various industries. The report will be mainly based on the analysis of
different functional of the Australian organization named Woolworths that functions in retail
industry of the country. The internal and external stakeholders and their impact on the
organizational revenues will also be examined in the report (Andriof & Waddock, 2017).
Woolworths is a grocery or supermarket chain that is owned by the Woolworths
Group and was established in the year 1924. Woolworths has developed a duopoly in the
Australian retail industry along with Coles that another major retail company. The companies
have together gained 80% of the shares in retail industry of the country (Woolworths.com.au.
2019). Woolworths specialises in the selling of groceries, health and beauty based products,
magazines and DVDs, baby and pet supplies, stationery items and household products. The
company has aimed at providing convenience to the customers with the help of Woolworths
Online (Woolworths.com.au. 2019).

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Main discussion
Identify functional areas
The operations of a business organization are influenced by the control that is
developed on various parts of a business. The business operations are thereby separated with
respect to the different functional areas in order to function based on the expertise of various
individuals. The various functional areas of the modern business organizations include, sales
and marketing, financials, customer services, human resources, production, distribution and
research and development (Barnett, Henriques & Husted, 2018). The effective operations of
Woolworths is also based on the proper formation of different functional areas. The
development of functional areas of Woolworths can be analysed as follows,
Sales and marketing – The marketing and promotional activities that are performed
by Woolworths are helpful for the organization to increase awareness related to products that
are offered to customers. The marketing mix that is formed by the organization has been able
to attract customers towards the products and services that are offered. The products offered
by Woolworths are mainly based on the ways by which retail needs can be fulfilled. The
promotions that are formed by Woolworths are mainly based on the innovative marketing
techniques and schemes that are offered to customers (Barnett, Henriques & Husted, 2018).
The company tries to maintain the brand visibility levels in consumer market with the help of
proper promotional activities. Different media that are used by the organization in order to
reach the customers are radio, newspapers, magazines that can help in the development of
brand awareness. The social media platforms are also used by Woolworths in order to
develop a niche market with the help of its effective products. The loyalty of customers
towards the brand can also be maintained with help of schemes that have been developed
(Beaulieu & Pasquero, 2017).

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Financials – Woolworths has gained revenues of 56.726 Billion Australian Dollars in
the year 2018. The financial position that has been formed by the firm in retail market of
Australia is quite strong and provided support to development of operations of Woolworths.
The financial strength is considered to be a vital aspect that is based on the services and
experiences that are offered to the consumers in Australia. The price wars that are faced by
Woolworths with another retail organization named Coles are quite fierce in nature. The price
based competition also has an impact on the profit margins that are gained (Bourne, 2016).
Customer services – The major target customers of Woolworths mainly include high
income based earners who are a part of the retail industry. The company is however planning
to target lower income based groups of customers with the help of competitive pricing for the
products and services that are provided to them (Cooper, 2017). The consumers are also
considered to be most significant part of operations that are performed by Woolworths. The
importance that is provided by Woolworths to the customers has played a key part in
improving the loyalty levels. The firm also aims to provide fresh products to the customers
straight from the local growers and farmers (Cantrell, Kyriazis & Noble, 2015).
Human resources – The employees or human resources are also important for
maintaining profitability of Woolworths in retail industry. The efficient team in Woolworths
has played a important part in proper development of relationships with the local growers in
order to acquire the best raw materials. The proper management of human resources is
considered to be an important aspect that is related to the processes of Woolworths in the
highly competitive retail market (Clevenger & MacGregor, 2019).
Research and development – The research and development based activities that are
performed by various firms has the ability to improve the processes and increase the levels of
innovativeness as well. Woolworths has implemented research and development with the aim

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of improving the organizational processes (Crane & Livesey, 2017). The innovative solutions
that have been implemented by Woolworths are able to improve the efficiency of the
organization and enhance the experiences that are provided to the customers as well. The
investments that are made by Woolworths on research and development are mainly based on
the profits gained from its operations (Elias, 2016).
Production and distribution – Production and distribution are considered to be most
significant part of the business operations of Woolworths. The production process is able to
affect the profit margins that are earned by the organization. The distribution channels on the
other hand help the products to reach the customers faster. The needs of target customers can
be fulfilled easily with the proper development of efficient distribution based channels
(Garcia‐Castro & Francoeur, 2016).
Identify internal and external stakeholders and their roles
Internal stakeholders
Employees – The employees of Woolworths are considered to be the most important
stakeholders of the organization. The efficiency of the teams that are developed by the
employees has an impact on the revenues that are earned by the organization. The levels of
employee satisfaction are ensured with the help that is offered by efficient employees of the
firm. The customer experience in stores of Woolworths are also dependent on the methods by
which the employees are able to interact with them (Harrison, Freeman & Abreu, 2015).
Managers – The decisions related to various operations of Woolworths are mainly
taken by the managers or leaders of the company. The leaders are considered to be
responsible for the ways by which a company like Woolworths can uphold its profitable
operations in the highly volatile retail industry. The leaders also have the responsibility to
manage the employees and provide them with the suitable tasks as well (James, 2016).

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Investors – The development of operations of Woolworths is also related to the
investments that are made by the investors. The company is able to use the financial
resources in order to implement innovative solutions in the stores with the support that is
provided by the investments that are made. Performance levels of the company are also
influenced in a huge manner by the investments that are made (Johnson-Cramer, Berman &
Post, 2017).
Board of directors – The Board of Directors of Woolworths are responsible for
managing the senior leadership of the company. The decision making process of the company
is totally based on the Board of Directors. Woolworths will be able to maintain its processes
in a sustainable manner with the help of right decisions that are made by the Board
(Meixell & Luoma, 2015).
External stakeholders
Customers – Woolworths has always operated in the industry with respect to the
customer first based policy. The loyal consumers of the company are able to play key role in
proper improvement of revenues and profit margins of Woolworths. The customers are able
to support the company and help in gaining profits in the competitive retail industry of
Australia (Pérez & Rodriguez del Bosque, 2016).
Regulators – The regulations that are developed by the government of Australia has a
major impact on profits earned by Woolworths. The government regulators are considered to
be major externa stakeholders of the company who have an impact on the pricing policies of
Woolworths as well (Tantalo & Priem, 2016).
Suppliers – The suppliers of Woolworths are highly important stakeholders of the
company. The prices of different products are affected in a huge manner by the raw material

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prices that are decided by the suppliers. The relationship that is developed between
Woolworths and the suppliers has an impact on the prices of services and products that are
offered by the company (Vos & Achterkamp, 2015).
Shareholders – The shareholders of Woolworths are mainly responsible for
investments that are made in the operations of the company. The profits that are gained by
Woolworths are based on the proper usage of financial resources that are developed due to
investments made by shareholders (Johnson-Cramer, Berman & Post, 2017).
Identify the nature and degree of main stakeholders’ interests, and implications of
conflicting interests
The internal stakeholders of Woolworths that include, the managers and Board of
Directors are mainly able to affect the decisions that are made within the organization. The
management of Woolworths is mainly considered to be responsible for the ways by which
profits can be earned by the company. The employees and their work processes are
influenced in a huge manner by decisions that are made by the top management (Barnett,
Henriques & Husted, 2018). The employees provide immense levels of contribution to the
development of the operations of Woolworths. The services offered by employees have a
direct impact on the consumers who are the external stakeholders of the firm. The
relationship that is developed by Woolworths between the suppliers and the organization as a
whole is considered to be a major responsibility of the top management (Johnson-Cramer,
Berman & Post, 2017).
The conflict in interests between the employees and managers of Woolworths can
have a negative impact on the work environment that is developed within the organization.
This is turn will influence the services provided to the customers in a negative way. The loyal
customer base of Woolworths will also be affected due to the lack of proper services that are

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required to be provided to them by the organization. The conflicts with shareholders or
investors can have a major negative effect on the ways by which Woolworths can make
effective investments in different operations (Garcia‐Castro & Francoeur, 2016).
Identify the level of main stakeholders’ influence
The main stakeholders of Woolworths mainly include, the employees, customers,
managers, suppliers and investors. The relationship that is developed between the managers
and employees is helpful in the development of an effective work environment in the
organization. On the other hand, the relationship that is formed between the suppliers and the
managers can help in maintaining the prices of products and services. The relations with the
investors are considered to be important in order to ensure the effective operations of
Woolworths so that the company can make investments in different areas (Harrison, Freeman
& Abreu, 2015). The relationships that the employees and management of Woolworths is
able to develop with the customers is able to play a significant role in the methods by which
the company can maintain its operations. The profit margins and position of Woolworths in
the industry is totally based on the loyal customer base that is maintained by the organization
with the help of effective services that are provided to them (James, 2016).
The power and influence levels of the stakeholders are however quite different from
the interests that they have in the organization. The most powerful stakeholders of
Woolworths are the customers and they have the power to influence the profit margins of the
firm in a huge way. On other hand, the suppliers cannot be considered as powerful
stakeholders of the company. The huge availability of stakeholders in the retail industry has a
major impact in reduction of the power of suppliers (Clevenger & MacGregor, 2019).
However, the interest levels of suppliers in organizational operations are quite high. The local
farmers and growers are major suppliers of Woolworths and they are also dependent on the
company in order to reach the customers. The interest of these farmers and local growers are

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thereby quite high in comparison to the customers who are the major stakeholders of
Woolworths and have an impact on the organization as well (Agudo‐Valiente, Garcés‐Ayerbe
& Salvador‐Figueras, 2015).

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Create a stakeholder matrix
Stakeholder Interests Influence
Managers Hifgh
Employees
Investors
Board of Directors
High Medium
High High
High Medium
High Medium