Organisational Change Management: Woolworths Strategy Framework Report

This report provides a comprehensive analysis of Woolworths' strategy framework, examining key changes and reforms implemented, including the establishment of roadmaps and timeframes, deregulation of policies, and a customer-centric approach. It identifies the factors driving the need for change, such as manpower adjustments, loyalty program enhancements, and expansion plans, while also considering external factors like government regulations. The report delves into the human resource development strategies employed to overcome resistance to change, including differentiation strategies and technological advancements. Furthermore, it analyzes how Woolworths aligns its future strategies to manage change and innovation in a global business environment, emphasizing decision-making processes, growth strategies, and market development. The report concludes with personal learning insights gained from the case study, covering areas such as customer comfort, market penetration, and cost reduction. The report also references the company's annual reports, internal news, and media releases. The report utilizes 20 academic sources and includes the Woolworths Group's Reconciliation Action Plan.

Woolworths Strategy Framework 0
Title: Woolworths Strategy Framework
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Woolworths Strategy Framework 1
Executive Summary
Woolworth is one of the renowned retail grocery outlets running, its operations in Australia.
Woolworth's online stores have shown competent results from the past few years. This report
summarizes an introduction on the Woolworth Company. The Key Changes and Reforms that
have already been implemented by Woolworths Supermarkets have been given. The changes and
Strategies that have proposed for Future Implementation have been discussed. The Factors that
are driving the Need for Change has been given.
The Human Resource Development Strategies that have been Implemented and/or Proposed by
Woolworths Supermarkets to deal with any Resistance to Change is explained. How Woolworths
Supermarkets has lined up its future strategies in order to manage change and innovation in an
international business environment? The Personal Learning’s and Insights as a result of
analyzing the Woolworths Supermarkets case study have been discussed followed by a
conclusion.

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Contents
Introduction......................................................................................................................................3
a) Outline Key Changes and Reforms that have Already been Implemented by Woolworths
Supermarkets. Identify also those changes and Strategies that have Proposed for Future
Implementation................................................................................................................................3
b) Identify and Discuss those Factors that are Driving the Need for Change.................................4
c) Identify Human Resource Development Strategies that have been Implemented and/or
Proposed by Woolworths Supermarkets to Overcome any Resistance to Change..........................6
d) Analyze How Woolworths Supermarkets has Aligned its Future Strategies to Manage Change
and Innovation in a Global Business Environment?........................................................................7
e) Reflect on your own Personal Learning’s and Insights as a result of Analyzing the
Woolworths Supermarkets case study?...........................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

Woolworths Strategy Framework 3
Introduction
Woolworth's organization is a grocery store that is focused on embedding the working
ways and offers core values to customers. The company has been providing better experiences to
its customers. The Woolworth team has been working together to achieve a sustainable
environment and objectives throughout the year. The company has shown massive focus on
enhancing customer satisfaction. The Woolworth organization has been able to achieve sales
growth in all its operations. The company is planning to invest in other businesses in upcoming
years. The group has shown an improved financial structure.
a) Outline Key Changes and Reforms that have already been implemented by
Woolworths Supermarkets. Identify also those changes and Strategies that
have proposed for Future Implementation.
The Woolworth organization has been open towards the reforms for providing leadership
and implementing the changes. Most of the reforms made in its organizational structure involve
establishment of the roadmap and timeframe for the implementation of recommendations made
by its group and government (Rosch & Priest, 2017). The economic benefits can be realized
through the coordinated response from the employees. Moreover, the Woolworth organization is
looking forward to the deregulation of policies that do not support the economy. The Woolworth
organization has strongly supported the deregulation of trading hours. Competitive principles
must be supported by zoning legislation and planning. The public must be tested for applying
these regulations. All the import restrictions must be removed (Mango, 2018).

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The Woolworth Company aims at meeting the customer demands with its advances in
retail and virtual outlets. There must be less discrimination on the number of products sold by
different outlets, the number of employees present in an organization and other competitive
factors. With the complexity of the grocery business, the compliance costs must be reduced.
Woolworth’s organization has shown a prime focus on implementing the changes and strategies
for driving more growth and revenue. The organization has been extremely focused on
customers, people, and operations. The company is customer-centric. The group understands
who its customers are and what are their requirements? The company has been segmenting the
target audience with its various initiatives and apprehends the buying behavior of its customers.
The company plans to ensure that its brand value must be understood through its customers
(Jenkins & Allen, 2017). In order to create strong customer associations, the company has started
to reward loyalty programs. This is how the customers will be in the positions of saving money.
The customers have shown a positive response towards the brand and customer loyalty reward
programs and participation has been exceptional. Woolworth has been working hard towards its
organizational framework and ensures that is available to all its customers. The company aims at
making the shopping experience convenient through its outlets. The company wants to expand its
business operations into women's footwear and other necessities too (Randall, 2009).
b) Identify and discuss those factors that are driving the Need for Change.
The Woolworth possesses an exceptional strategy through which the business is moving
towards the change. The company has analyzed external and internal factors. Foremost, the
company is focused on making a change in its manpower (Shillingford, 2013). This is one of the
easy adjustments that can be changed as they are able to control the environment. The company

Woolworths Strategy Framework 5
has been launching various programs through which it can attract more customers to its store.
This is how the company is able to offer 20 percent discount on different items. This is a return
program and value points collected over a time period can be used for future purchasing too. The
company is looking forward to making changes in its loyalty program through which it can boost
sales and revenue in a longer time period (Lins, Balsanelli & Neves, 2018).
An important change that can be made is to the packaging the food on different items.
With the variety of food made available to the customers, Woolworths should focus on making
its food cheaper. This is how the company will be able to outdo its competitors. It is essential to
capture the target market by making simple changes and cater to the demands of small and
middle-income groups easily (Mann, 2012). Woolworth has been looking forward to expanding
its business in North Africa and plans to open more than two hundred stores in the following
years. When company is into the expansion stage, it needs to look different factors. Foremost,
whether the company will be able to survive in long run? The Woolworth organization needs to
consider the competition, purchasing power of customers and is there any market for doing
business? The customers must be able to purchase the products and services (Yergler, 2013). The
possible analysis done by the Woolworth organization can help the business to grow and achieve
success. The company needs to adopt different strategies by changing the time frame and mode
of operation in different areas. However, there are certain external factors prevailing in the
environment like policy, government regulations which cannot be controlled. The change cannot
be considered as permanent or temporary within the prevailing environment. The company needs
to adjust with the present government regulations and inculcate the changes within its
organizational structure (Dion, 2012).

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c) Identify Human Resource Development Strategies that have been
Implemented and/or Proposed by Woolworths Supermarkets to overcome any
Resistance to Change.
According to research, Woolworth has been using generic strategies. The Woolworth
Company has been into selling food products and clothes. The company has been selling
manufactured products. The company has used a differentiation strategy through which it can
distinguish its own products and services with its competitors (Latemore, 2013). The company
has adopted the sustainable approach and environment-friendly principle of conducting the
business. Through the application of analysis, Woolworth Company has internal strengths when
compared with the weaknesses. The company has been providing quality products to its
customers through its economical price structure. The company has a competitive advantage
when compared with the products and services of its competitors (Allio, 2012).
The technological environment is concerned with how to do work technically. The
workplace environment results in making the Woolworth business more effective. The company
is required to develop its technical capability and efficient working of its online shopping
centers. There is a certain instance- where the virtual stores have been showing the incompetence
and require alterations to be made with changing buyer needs (Mahajan, 2011).
The company is influenced by the country’s economic environment. This can have a
positive or negative impact on business operations. The company must have all the necessary
and sufficient resources for the development of its products and services. There are times where
the products are priced at a competitive price and people start looking for alternatives. The

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company needs to analyze the pricing strategy and then market its products (Subrahmanyam,
2018).
The business needs to understand the natural ecological environment. The company must
take care of its surroundings. The company needs to enforce an effective recycling system that
will make the surroundings clean. This is how the company should inoculate positive
surroundings and environment-friendly approach. The quality of the products must not be
compromised at any cost. The Human resource management decision-making process is crucial
for the success of the company. This can affect the brand value in a positive or negative way.
Accommodating the needs of the customers living in the town should by the top priority (Zhu,
Zheng, Riggio & Zhang, 2015).
d) Analyze How Woolworths Supermarkets has aligned its Future Strategies
to Manage Change and Innovation in a Global Business Environment?
In order to manage innovation and change in this international business environment, the
Woolworth company needs to focus on the decision making the process. The company needs to
analyze the appropriate problem at the right time and suggest solutions. For instance-the
company planned to remove the Christmas magazines and discontinue the sales. This has not
been accepted by the Christina community and more percentage of people came out and outcry
for closing the stores. The company needs to innovate its products and services and look for
different reasons why the specific target market is not interested in its product or service
(Bullough & de Luque, 2014).
As a part of innovation, the company needs to adopt growth strategies. This will help in
maximizing the strengths. The strategies developed must have lower risks and help to improvise

Woolworths Strategy Framework 8
the products and services. The Woolworth organization must consider market development
strategy and focus on what they are pursuing currently. The market development strategy reflects
the skills and capability of the business to drive innovation (Jones, 2013). The company must be
able to sell a number of items by opening more number of outlets in its neighborhood places.
The company needs to focus on developing internal growth strategies. Product development is an
expansion strategy that requires the technical skills of employees. This implies modifications of
existing products or simply adding more products. This is done for increasing the target market
or penetrating to a new target market with existing product lines (Kulkarni & Gopakumar, 2014).
Woolworth needs to consider innovation as a part of its strategy. However, innovation is
considered to be a riskier concept when aligned with the strategy formulation. This requires the
development of new ideas through the company’s management and operations. The company
needs to develop new methods of reaching its target customers (Alexander, 2017). Market
penetration requires launching a new product into a given market with an understanding of the
needs and demands of buyers and third parties. Designing new processes and methodologies can
be time-consuming. This involves a lot of effort from the employees working in this company
(Kuznetsov, 2018).
e) Reflect on your own Personal Learning and Insights as a result of analyzing
the Woolworths Supermarkets case study?
Different areas: that comfort to their clients both in urban communities and townships.
New customer: The organization will be providing the option of infiltrating present clients.
Promoting: By following a basic leadership procedure is practically like separate an objective
market. Such that the organization will be collecting data (statistical survey) about the market

Woolworths Strategy Framework 9
and customer demands and wants (Katterfeld, 2014). The Woolworth organization will be
providing to settle on selected options that can work for the education of customers. Diminishing
costs: The company needs to focus on decreasing the costs of generation implies Woolworths
will have the option of exploiting for delivering the maximum number of items at lower prices
and therefore will provide the option to offer their items at moderate costs and can achieve more
clientele accordingly. Obliging all pay bunches inside the economic structure can be more of
noteworthy expense to Woolworths as they should change a portion of their providers to lessen
the cost structure (Pounder, 2012).
Diminishing the costs will likewise have an impact on the items' nature. Growing to
townships will cost them gigantic cash. This will help in township structure probably won't react
true to form through the business. Laws and general rules can be very severe and influence the
accomplishments made by the business (Mullen & Eadens, 2017). By and large, the company
Woolworth has a generally excellent system of conducting business and company can break
down that various parts of the internal and external market must be considered. There are various
choices that will be considered in improving the organization's picture towards the general
population and what will this bring in future with respect to their customers, tasks, and
individuals (Valente, 2012). Woolworths has huge designs for what does will be coming next.
It's just about improving their business, however growing it significantly around the landmass so
we can see that their mentalities are widespread and that they are defining enormous objectives
for themselves. We do accept that a couple of significant alterations can be made to their
business inside and outer powers which can either bring about a positive or negative result for
them.

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Conclusion
Woolworth is one of the most successful companies. The Company should ponder the
business choice; yes they are an entrenched and fruitful organization in South Africa however
would they succeed somewhere else? Considering that South Africa has the biggest economy in
Africa, so what might the purchasing force be from a nearby African neighboring nation?
Looking at the situation objectively, by and large, Woolworths isn't specific to the store for a
normal shopper, you need to win a tolerable salary just to shop at Woolworths. The nourishment
areas are more expensive than a normal general store, yes there quality and bundling are better;
however is that truly what another African nation needs? Their purchasing force is less and they
probably won't have the option to bear the cost of commonly the majority of Woolworth's items
since they may have an option or substitute store in their nation.

Woolworths Strategy Framework 11
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