Strategic Management of Woolworths: Sustainability and Market Position

This report provides a comprehensive analysis of Woolworths' strategic management, focusing on the implementation and impact of sustainability initiatives. The report examines three key strategies: promoting gender equity, moving towards a circular economy, and creating shared value with customers. It explores how these initiatives influence Woolworths' operations, customer base, and market position within the competitive retail industry. The analysis includes discussions of the external factors impacting Woolworths, such as gender equality, waste management, and customer value creation. The report concludes with recommendations for future development, emphasizing the importance of employee training, customer satisfaction, and internal communication to further enhance Woolworths' sustainability efforts and maintain its competitive advantage. The report highlights how Woolworths aims to improve revenues and profitability, develop successful customer relationships, and differentiate its services in the retail market through these strategic initiatives. The report also explores the importance of the company's strategic goals, including improving customer satisfaction and developing proper training programs for employees.

Running head: STRATEGIC MANAGEMENT OF WOOLWORTHS
STRATEGIC MANAGEMENT OF WOOLWORTHS
Name of the Student
Name of the University
Author Note

1STRATEGIC MANAGEMENT OF WOOLWORTHS
Section 2: Executive Summary
The report is built on the study on three major strategic initiatives that have been applied by
Woolworths and the impact of these on the future operations as well. The three major
strategies that are applied by Woolworths are mainly based on increasing the sustainability in
organizations. The impact of the three strategies on Woolworths is also considered to be quite
high and has supported the position that is gained by the company in the retail market. The
retail operations of Woolworths can be further improved by increasing the use of these
sustainability based initiatives by the organization. The recommendations are mainly
provided based on the methods by which Woolworths can develop the sustainability levels.

2STRATEGIC MANAGEMENT OF WOOLWORTHS
Section 2: Table of Contents
Section 4: Introduction...................................................................................................3
Section 5: Aim................................................................................................................4
Section 6: Discussion.....................................................................................................4
Section 7: Conclusion....................................................................................................8
Section 8: Recommendations.........................................................................................8
Section 9: References...................................................................................................10
Section 10: Appendices................................................................................................13
Appendix 1...............................................................................................................13
Appendix 2...............................................................................................................14

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Section 4: Introduction
Strategy implementation is considered to be a process that mainly puts different
strategies and plans into action in order to attain the desired goals. Strategic plan is thereby a
written document that provides the details of various processes and steps that are required in
order to reach goals that are already planned (Bonn, Cronin Jr & Cho, 2016). The
implementation of various strategies can also have an impact on the operations of the
organizations and to ensure that the plans made by the firms are on track. Application of
strategies are considered to be critical to the success that is gained by the company and proper
achievement of the objectives and goals as well (Brunori et al., 2016).
The report will be built on the study of a company that has implemented specific
strategies in order to improve its processes in the industry. The firm that has been taken into
consideration for study is Woolworths. The sustainability based strategies that are
implemented by Woolworths in order to sustain its processes in the competitive retail
industry will be discussed in the report in detail.
Woolworths Supermarkets is a grocery or supermarket based chain or store that
operates its stores in diverse parts of Australia. The firm was established in the year 1924 and
it has gained 80% of the total shares in Australian market along with another major retail
organization Coles. Woolworths specialises in the sales of groceries, DVDs, magazines,
household products, baby and pet supplies and the stationery items as well. Currently
Woolworths functions more than 1000 stores in Australia that consists of 976 supermarkets
and 19 “Metro” convenience stores as well (Woolworthsgroup.com.au 2019).
Section 5: Aim
The aim of the report is to recognize the implications of the strategies that are
implemented in Woolworths. The effects of the three different strategies on the methods by

4STRATEGIC MANAGEMENT OF WOOLWORTHS
which Woolworths can develop its position in the retail market will be discussed in the
report.
Section 6: Discussion
The management of Woolworths Group believes that increasing the levels of
sustainability can be considered as the only way forward for the organizations to maintain
their operations and levels of profitability as well. The approach to sustainability is
considered to be an important aspect that is related to the improvement of relationship that is
developed with the communities, teams and the customers (Woolworthsgroup.com.au 2019).
Strategic influences that impact the operations of Woolworths,
The external environment based factors of countries in which Woolworths operates
are able to influence its operations and strategies that are developed as well. The three major
factors that can have an impact on the operations and strategies of Woolworths are as follows,
 Gender equality has been an important aspect that is related to the barriers
faced by Australian organizations. The access of opportunities that are
provided to women in the country are quite low. The issues that are faced by
women in the country due to gender inequality have been considered by the
Australian government and policies have also been developed
(Humanrights.gov.au. 2019). The Australian women have however made
major progress towards the parity with men due to support that is provided by
the government of the country. Women are being provided with leadership
roles within the organization and pathways have been developed for the
women to follow as well (Simões & Sebastiani, 2017).
 Waste management has been implemented in Australia as a modern system
after the second half of 19th century. The progresses that have been made by

5STRATEGIC MANAGEMENT OF WOOLWORTHS
the technological changes are able to play a major role in formation of
processes that can be used for waste management purposes. The waste
management programs are regulated at the federal and the state level as well.
Waste management has major impact on the demographic and geographical
dynamics of the country (Environment.gov.au. 2019). Reformation is
implemented in various organizations for the purpose of maintaining a circular
economy. The factors have also been able to hamper development of the
interstate and industry relations. The National Waste Policy is considered to be
a national framework that is implemented for recovery of resources and wastes
in Australia. Collaborations have also been developed by The National Waste
Policy with different Australian organizations, individuals, communities in
order to manage waste (Ottman, 2017).
 Customer value creation has become highly important for the modern
organizations that operate in Australia. The organizations are able to maintain
their competitive position in the market with support that is provided by the
loyal customer base. The collaborations that are developed by organizations
with the customers have an impact on services that are provided to them
(Naidoo & Gasparatos, 2018). Customer services are considered to be the
most significant part of the operations that are developed by the organizations.
The companies aim at developing different place in the market with the
support of unique services that can be provided to the customers (Laszlo &
Cescau, 2017).
Strategic implications of the factors or activities performed by Woolworths,
The sustainability initiatives that have been applied by Woolworths are helpful in
improvement of the customer base, developing the teams, forming the communities,

6STRATEGIC MANAGEMENT OF WOOLWORTHS
developing the supply chain and providing benefits to the shareholders as well (Chkanikova
& Lehner, 2015). The three different sustainable strategic initiatives implemented by
Woolworths are as follows,
Promoting the gender equity – Gender equity has been provided with highest levels
of importance in order to the equity of gender in different roles within the organization.
Around 40% of the total number of executive positions in the organization are held by
women employees. The gap between wages of male and female workers has been reduced in
order to maintain a positive work environment in Woolworths. The equal numbers of
positions that are provide to men and women in the firm are considered to be a significant
aspect that is related to the appropriate operations of Woolworths (Doppelt, 2017). The
organization has also formed an effective image in the retail market with the importance that
is provided by the firm to male as well as the female employees. Gender equity and providing
similar positions to the female employees is considered to be the most important part of the
sustainability based initiatives that have been undertaken by the company (News.com.au
2019).
Moving towards a circular economy – Woolworths has aimed at reduction of the
levels of waste that are generated due to the operations and manufacturing process of the
organization. The policy of zero waste generation is applied by the firm in order to develop
sustainable operations. Sustainability will be supported in a huge manner by the proper
reduction of wastes that can further lessen the impact of its production on the environment.
The improvement of recyclability is also a significant part of the processes that are
accomplished by Woolworths in order to proceed towards a circular economy (Frostenson &
Prenkert, 2015). The contribution that is provided by Woolworths to the development of
circular economy is a major part of the ways by which the organization can increase the
sustainable activities. The recyclable materials are also used by Woolworths for the

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packaging based needs of the organization. Different products of the organization are packed
with the help of proper usage of the recyclable materials. The use of recyclable methods has
been able to play a key part in the formation of sustainable operating methods by Woolworths
(Woolworthsgroup.com.au 2019).
Creation of shared value with the customers - The value that is provided by
Woolworths to the customers is considered to be a significant aspect that has an influence on
the revenues and profitability levels as well. Woolworths has aimed at developing its
operations in a collaborative manner with the customers. The customers are considered to be
the central part of the products and services that are provided by Woolworths. the services of
Woolworths are mainly based on the methods by which effective experiences can be offered
to them in order to attract them towards the physical stores (Fuentes & Fredriksson, 2016).
The service levels of the organization are able to play a key part in helping the company to
grow a loyal consumer base in the industry. Woolworths has always provided encouragement
to the customers in order to consume the products in a healthy manner and to improve
sustainability levels in the industry as well. The relationships that have been formed by
Woolworths with the customers is considered to be an important factor that has an impact on
the organization as well. The competitive position that is gained by the organization in retail
industry is supported in a huge manner by the customer centric operations of Woolworths
(Moreechampion.com.au. 2019).
Strategic course of action that is implemented by Woolworths,
The strategic objectives that have been set by Woolworths in order to uphold the place
in retail industry are as follows,
 Improvement of the revenues and profitability of Woolworths in the highly
competitive retail market.

8STRATEGIC MANAGEMENT OF WOOLWORTHS
 Developing the levels of sustainability in the operations of Woolworths for
maintaining the operations and functions for a long time.
 Development of successful relationships with the customers in order to hold
the competitive advantage of Woolworths in retail market in contrast to its
major competitor Coles.
 The improvement of services that are provided by Woolworths in order to
create a differentiation in the retail market (Tang, Lai & Cheng, 2016).
Strategic goals developed by Woolworths,
 The improvement of customer satisfaction levels of Woolworths is a major
strategic goal that can be developed by Woolworths.
 The development of proper training programs in the organization can also
support the sustainability strategies based on recyclability that are
implemented by Woolworths.
 The formation of internal communication systems within Woolworths will be
able to help the firm in order to develop collaboration between the male and
female employees (Welford, 2016).
Section 7: Conclusion
The report can be settled by asserting that Woolworths has implemented the three
major sustainability strategies with the aim of maintaining its position and place in the retail
industry of Australia. The importance that is provided by Woolworths to the customers and
sustainable activities are able to play a key part in improvement of revenues. The
development of a positive work environment is supported by the same positions that are
offered by Woolworths to both the male and female employees as well. The levels of

9STRATEGIC MANAGEMENT OF WOOLWORTHS
importance that are provided to the employees have a major impact on the organizational
operations.
Section 8: Recommendations
The key recommendations that are provided to Woolworths in order to develop the
future operations are as follows,
 The growth of various teams of employees in order to implement the training
programs to enhance the levels of diversity. The male and female employees
will be provided with major positions in the teams for supporting the
sustainability initiatives.
 The customer satisfaction can be increased by Woolworths with the
improvement that is made in the stores of the organization. The services
offered in stores can be improved by gaining their feedback and using them in
the organizational processes.
 The usage of recyclable materials for packaging activities of Woolworths with
the development of various systems in order to upsurge the number of
products that are packed with the help of these materials.

10STRATEGIC MANAGEMENT OF WOOLWORTHS
Section 9: References
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11STRATEGIC MANAGEMENT OF WOOLWORTHS
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