BUS510 - Organisational Change: Woolworths Supermarket Report

This report provides a comprehensive analysis of organisational change within Woolworths Supermarkets. It begins with an introduction outlining the purpose of the assessment and an overview of Woolworths, including its market position and competitive landscape. The report then delves into an analysis of the organisation, identifying areas requiring change such as increasing market pressure, subsidiary losses, declining earnings per share, and changing customer expectations. It explores change management theories and frameworks, specifically Lewin's change management model and the ADKAR model, discussing their application in managing change. Furthermore, the report evaluates potential change strategies, focusing on restructuring the company's operations and introducing new departmental stores to enhance customer service and adapt to market demands. The analysis includes a SWOT analysis of the proposed restructuring strategy. The report concludes with recommendations for suitable strategies and required resources for their implementation, providing a detailed and insightful examination of organisational change in the context of Woolworths.

Organization learning and change
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Contents
Introduction......................................................................................................................................2
Overview of company..................................................................................................................2
Analysis of the organisation to identify areas requiring change......................................................3
Overview of change management theories or frameworks.............................................................4
Lewin’s change management......................................................................................................4
ADKAR model............................................................................................................................6
Possible change strategies required to improve situation................................................................7
Recommendations............................................................................................................................9
Resources required for most suitable strategies.............................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
Organisational change is referred to as any alternation that might happen within the total work
environment. The change in organisation is process of bringing modification in strategies,
procedures, processes, technologies as well as the culture which affect the changes in the
organisation. The purpose of this assessment is to permit the organization viewpoint to examine
the organisational alteration and to suggest for improving the situation. The company that has
been selected is Woolworths. The project seeks to form a case study of a company that needs
intervention in change. The report includes the discussion of the internal as well as external
evaluation of organisation to determine the areas where the change is required. The review of
literature is conducted about change management models or frameworks. Further, there is an
evaluation of the probable change approaches that are compulsory to enhance situation. In end,
the recommendations of the suitable strategies are provided to bring change. Along with this, the
report includes the required resources for applying determined appropriate strategies.
Overview of the company
Woolworth supermarket is a well-known Australian supermarket or the grocery store chain that
is founded by Woolworth’s group. The company founded in 1924, September under name of
Wallworths Bazaar Ltd. The company is Australia’s major supermarket chain who is functioning
995 within Australia and it major depend on 115,000 personnel in their stores, distribution
centres as well as the assist headquarters to offer clients with the high quality, superior services
as well as high convenience (Woolworths, 2019). The company pride itself on working carefully
with growers and agriculturalists within Australia to confirm that they offer best goods to their
clients. Organisation source 96% all the fresh fruit as well as vegetables with 100% of the fresh

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meat from growers as well as growers in Australia. In the present Australian market, Woolworths
Company is dealing with intense competition. The major competitors of Woolworths include
Aldi, Coles, Target and many others (Woolworths Group, 2019). The competition level affects
the company the most due to which there is a need for the changes. Apart from this, there are
many other factors due to which the evolution in the company is required.
Analysis of the organisation to identify areas requiring a change
The change management is the approach which affects the overall productivity of the company.
Woolworths Company needs to focus on improving productivity and giving the tough fight to its
existing competition due to which they need to bring the change (Mitchell, 2019). There are
different reasons due to which change in the management is required for the Woolworths
Company.
 Increasing market pressure: - The rise in the market pressure has forced the companies
to bring the change in the management structure (Carnall, 2018). It has been found that
Woolworths is dealing with too much market pressure as their competitors can attract the
maximum customers in the Australian market.
 Loss in the subsidiary: - Woolworths has expanded its stores as well as the subsidiaries
in the entire market of Australia. Some of the units of the company got closed because
they were not able to make a profit from their stores. It has been found that one of the
subsidiaries is David Jones which led to the heavy loss for the company. It has been
found that R6.9bn damage of the department store chain David Jones bashed Woolworths
into the damage of approx. R3.5bn for its 2018 monetary year. However, the company
reported a profit in the year 2017 for R5.4bm (Wet, 2019). The loss of the subsidiary

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shows that there is a need for the change in the structuring, policies and other plans of
Woolworths.
 Decline in earnings per share: - It has been found that during the period Woolworth
company register decline in the earning per share from 17.7% to 346.3c. The company
cut its last dividend by 27.5% to approx. 130.5c taking its entire for its 2018 monetary
year to R2.39, a 23.6% weakening from preceding year’s R3.13 (Laing, 2018). However,
retail group’s total revenue grew with 1.6% to R75bn.
 Decline in expectation of the customers: - It has been determined that Woolworths is
failing to meet the expectations of the customers and they are losing the faith in the
brand. In the diverse environment, needs and wants of customers are changing which
makes the company bring the changes in their structure.
Overview of change management theories or frameworks
To manage the change and implement the approaches related to change, it becomes vital for the
company to prevent the implementation of the inappropriate or casual approaches and try to
emphasis on the appropriate plan of action (Tang, 2019). The approaches provide the set
procedure to the company who are looking for the change within their organisation. In the
research, this has been witnessed that most common model of change management include
Lewin’s change management and ADKAR model. These models are adopted by the companies
so that they can manage the change within the organisation in the effective manner. The review
of the different researcher has been gathered on these models to understand the concepts in an
effective manner.

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Lewin’s change management
As per the view of Hossan, 2015, the change management is an on-going course that receipts the
time, expertise, dedication as well as the efforts to apply and run. The change management
process needs association of personnel or staff of business and might make the people for being
influenced by variations. It has been found that it is essential for company to determine changes
that are required within organisation (Ellis & Abbott, 2018). According to changes, the company
will adopt change management approaches as well as models.
As per the view of Ellis and Abbott, 2018, Lewin’s change management model is considered as
one of greatest widespread and effective models that make it likely to comprehend the structure
as well as organisational change. The model was designed as well as invented by Kurt Lewin in
year 1950s and it is still applied by the companies today. Lewin explained about structured or the
organisational change through changing states of the ice blocks in their change model. The three
stages of the change model are given below: -
 Unfreeze: - As per the view of Hussain, Lei, Akram, Haider, Hussain and Ali, 2018, first
stage of Lewin’s method includes planning for change. This step majorly prepares for the
change which is required to bring by the organisation. This has been proved that most of
the employees resist any kind of change within the organisation. Similarly, the employees
of the Woolworths might resist the change due to which it is essential to break this and
develop the atmosphere that change is essential. It becomes essential to make the
employees realise that there is a need for change within the company.
 Change: - Another step of the model changes in which the real transition will take place.
The process might take the time to occur as this is determined that persons usually spend
the time to hold new activities, change as well as the developments (Dawson, 2019). For

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instance; Woolworths Company will plan for the restructuring of their entire store which
will help them to bring the improvement in their entire process. This stage includes the
actual actions towards the change that is required to be taken by the company.
 Refreeze: - As per the Cummings, Bridgman and Brown, 2016, this stage is considered
as final as well as the important stage which shows that change is acknowledged,
embraced and implemented by the people. This is determined that the organisation
initiates to become steady after the change which is made by them (Tang, 2019). In this
stage, the employees will work on a normal pace with routing with the change that took
place within the organisation. For instance; Woolworths Company will bring the change
and then employees will come to the normal routine. This time with the help of change
within the structuring of the organisation they will be able to offer high customer
satisfaction as well as expectations.
This model can be applied by the company when they want to bring the change within the
organisation. The model helps the company to go on the right track and to follow the entire
process in a sequence which will help them to achieve the change in an effective manner
(Cameron and Green, 2019).
ADKAR model
Considering the view of Galli, 2018, ADKAR model or theory of the change is considered as one
of essential theories as it makes the possibilities for the diverse change management teams to
emphasis on those actions that allow the company to directly reach on to the goals. The model
helps the company to attain the gaols when they bring the change. Agreeing to this Wong,
Lacombe, Keller, Joyce and O'Malley, 2019 said that model is used by manager to bring the
change to find out the different loopholes as well as gaps in entire process of change

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management. The company can provide the effective training to the employees. ADKAR model
majorly stands for:
 Awareness: - The awareness is essential as it shows the need and requirement to bring
the change (Das, 2019).
 Desire: - The management of the company desires to carry change and to be a member in
it.
 Knowledge: - The information and knowledge of what change company is willing are
required.
 Ability: - Company needs to have skill to integrate the change regularly (Cook, 2015).
 Reinforcement: - This element shows that it is essential to keep change implemented and
reinforced it later on as well.
As per the views of Hayes, 2018, ADKAR model provides capability of the identification as well
as assessment of reason which shows why the variations have been made and are not working. It
also ensures the anticipated outcomes that are not being gained. Further, model is beneficial as it
makes it probable for the one to break entire changes into the diverse portions and also to figure
out points, departments and areas where the change may not be as effective as deliberate. The
model provides both aspect of change which includes the business model as well as the people
model. Agreeing to this, the author says that the ADKAR model is a change management tool
that assists the business to regulate most difficult change and the reason behind the achievement
of change (Dana, Mukaj and Vishkurti, 2016). The employees of company get assistance
throughout the entire change process.

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Possible change strategies required to improve the situation
The situation of the Woolworths Company is making it difficult for them to manage the
operations in Australia due to which the company need to bring the changes in their operations.
The evaluation of the potential change strategies is essential to enhance the situation. The major
strategy that is essential to bring is the restructuring of the entire process (Hogan, 2019).
Woolworths should restructure their shoes that can attain a high profit in the market. Along with
this, considering the rising and intense competition the company should bring the new
departmental stores. The change is essential as it helps the company to form the customer-facing
leadership roles to offer better service to customer and also to attain changing wants of
customers at time of shopping.
Along with this, Woolworths Company ensures that they don’t affect any of the employees.
There will be no net reduction in the overall number of the team member to whom the
employment in the stores has been provided. The evaluation of the restricting of the store
strategy has been performed with the help of SWOT analysis.
SWOT analysis
A SWOT analysis includes the two internal elements that are strengths and weakness with this
the analysis of the two external factors has been done that are opportunities and threats. The
evaluating of the possible change strategy has been done that contribute in improving the
situation.
Strengths Weaknesses
 High market share is the strength of the
Woolworths which helps them in attracting
 The major weakness is that this planning
might lead to the major resistance from the

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the attention of the customer if they make
the change in the business.
 The restructuring as a change will become
a strength for the company to meet the
needs of the customers and to enhance their
experience.
 Promotion of the product after the
restructuring process will lead to the
strength of the company.
employees towards the change. The
resistance will stop the company to bring
the change within the organisation (Bateh,
Castaneda and Farah, 2013).
 The company face price war against the
competitors presents in the market as all
the customers find the low prices of the
product.
Opportunities Threats
 The change will bring the opportunity for
the company to attain a high profit in the
market which will be possible by meeting
the needs of the customers.
 The opportunity of improving the structure
of the organisation on a timely basis which
is considered as management of
organisational change.
 The company have the opportunity to bring
the changes in the subsidiary outlets in
which they are not able to attain the high
profit.
 The intense competition is one of the major
threats that affect change management
within Australia. The competitors like
Coles and Aldi will also bring the change
considering the change in their strategies.
 The failure of change management is
considered as one of a major threat. Thus,
Woolworths need to think about the
strategies that they are adopting for the
changes.

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Recommendations
Woolworths Company needs to bring the change in their system due to which they can attract the
best customers from the market. Considering the need for the changes, it is suggested to
Woolworths that they should restructure their departmental stores in Australia market. The
strategy is suitable for the company as this will contribute in improving the performance of the
company as well as attaining the profit in the market. The restructuring strategy of the company
includes the redesigning operations as well as the management reporting structures to
acknowledge and also to correct operational issues that help businesses in forming a good
position.
Woolworths Company restructuring strategy will contribute effectively in making the changes in
the organisation. The company should bring improvement in exiting processes and practice
which include improvement in the communication as well as the decision-making. The change
management of the company includes the restructuring in which there will be an improvement in
the productivity of the employees.
Resources required for most suitable strategies
The restructuring store of the Woolworths is one of the change management strategies that are
required to be followed by them. Change management includes store restructuring for which
there is a need for the resources that are required to be managed by the company. One of the
major resources which are required for implemented is an investment which requires amount.
The company can use retained earnings as well as their savings which can be used by the
company for restructuring the stores.

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The company need to contact the contractors for the restructuring of the store within Australia.
Woolworths Company needs the architect that can contribute in restructuring the store so that
they can contribute in improving the experience of the customers. Woolworths need the diverse
resources that are required to restructure the stores within Australia. Human resource is
considered as one of the major resources that can effectively contribute to the restructuring of the
entire business. The HR team of the company contribute in hiring the right people for the
restricting of the entire store and forming the strategies against the competitors to give them the
tough fight.
Conclusion
At the end of the report, change management is essential as it brings the changes in strategies,
procedure, technologies which will bring improvement in the process. The analysis of the
Woolworths Company has been done as they need to manage the change within the organisation.
The report includes the analysis of the organisation has been done with the motive to determine
the areas in which the change is required. It has been found that change is needed within
Woolworths due to rise in market pressure, loss in the subsidiary, decline in EPS, the decline in
expectation of customer and many others. Further, the change management theories or
framework has been done. The review of the literature is done based on different theories which
include Lewin’s change management as well as the ADKAR model. The paper shows the
possible change strategies which are required to understand for improving the situation. The
evaluation of the change strategies has been done with the help of SWOT analysis model. In the
end, the suggestion has been provided that can contribute in improving the strategies and
operations of the company. The restructuring of the store is one of the essential changes that took