Analysis of Strategic Operations and Issues of Woolworths Company

Introduction

The current research deals with the issues in the strategic operations faced by Woolworths, a major supermarket chain of Australia. Colloquially the company is known as woollies and at present, they own around supermarket chain of Australia operating stores in Australia. The company was formed in the year 1924 under the name Woolworths Bazaar Limited and had their first store at Sydney’s Pitt Street. The consumer interest grew after December 1924 as the store started selling a variety of goods and claiming the price to be the cheapest in market. Woolworth supermarket, a famous retailer chain in Australia holds at least 78% market and it encounters a strong level of competition from Coles, which is another grocery and supermarket outlets in Australia. Growth in structure, strategies and operational methods of the organization are mandatory for business sustainability.

The term “change” defines to any alteration, which occurs in the entire work environment of the association to grow. In this assignment, the concepts of organisational change will be linked up with the organisational principles followed by Woolworths group. In this task, list will be provided for emphasizing the pertinent change previously acquired in the chosen organisation. In the third part, plans of organisational change will be focused after assessing the SWOT analysis. By rationally assess the role of the change agent in the organization, this will develop climate for planned change by overcoming resistance and supporting forces for positive growth.

Major issues of Woolworths

Losing loyal customers: Woolworths encounter a problem of losing its existing loyal customers to its competitor companies, which directly influence its annual sales revenue and ultimate profitability. Woolworths rewards strategy employed by the management which is very significant loyalty programs for existing customers. After incorporation of these strategies, Woolworths supermarket enjoys at least 18 million customer base every week and this number is constantly increasing day by day.

Issues regarding technology change: The management of Woolworths after facing a severe strategic issue within the competitive retail market of Australia has recently introduced the online shopping website. Therefore, the management analyses the present trends and starts to offer products on online. The CEO of Woolworths, Ian Moir always concentrates on the profitability and costs down with proper implication winning strategies. Woolworths’ credit card strategy involves and automatic tracking of the purchase in the supermarkets. This shopping card also give pay back points to the card, therefore the consumer can avail the discounts on their next purchase.

Competition issue: Woolworths faces a huge level of competition from its existing competitor companies like Coles and Aldi. Even there are possibilities of new entrants, which may come with innovative strategies to destroy the leading position of Australia. Therefore, Woolworths should change its present strategies in order to prevent the possibilities of new strategic issues that will hamper its business and brand name.

Managing Change

Change is the critical aspects for enhancing the effectiveness of the management. Organizations undertake in response to dynamic internal and external factors that transforms with current necessities of the organization. Evidence suggests that severe orders, narrow descriptions of job, inflexible rules and procedures and impersonal management and the high degree of operational specialization can’t respond in an adequate manner for demanding for change. In these sides, the organizational change is required for several internal and external causes. In the overall perception, change in the organization may alter in or reorganize them to future demand by foreseeing the outer events. The concept explains the involvement of changing the organisation from the ongoing state towards the desired state for the future and managing the transition process.

In other words, the idea of the organization has been inclusive in the theory of the management such as the “System theory” and “Theory of Complexity”. In the literature of the management, expressions like “planned change”, “managing change”, “organizational change” and “change agents” and more presently “change masters” have been abstracted across many organizations. All these concepts are categorised and make available in different forms of collection of theories, practices, and policies.

The fundamental concepts of changing organisation are all about the managing efforts of the people of the management along with maintaining the harmonization of the basic needs of workers or staffs of the company. Here the main fundamental statement of the managing changes is that of organizations and their managers who can have more influence and control over such alterations that are taking place in the core. In this context, the organizations may interact with the environment on the constant basis. In the concept of the change agents, the organizational climate is compromised with the set of relationships between agents or stakeholders and several other factors that may be out of the out of control of the organization. Being the agent of the organisation, the personal attributes of managers needed to motivate and inspire others to follow their leads. The term change agent can be external change agents and internal change agents. Those who provide outside consultants who are temporary associated with the organization to remain engaged only during the time of the change process are the external change agent of the organization.

On the other hand, individuals working for organization and has experience of improving the same organization are the role of the internal change agents in the fields of the organization. For both the individuals, the efforts of the organizational change need to be approached as a process of identifying the individual sub-group after undergoing district decision making process and willingness to change.

Being recognized one of the renowned and trusted retail brands of Australia, Woolworths Limited constantly endeavours for delivering world-class experience for customers across all stores available in different parts of Australia. With the constant evaluation an innovation, the organization is perfect example who has remarked as incredible growth in term of delivering not only food chain retail services and liquor businesses but also financial services as well. The organization blends changing business environment and has made substantial changes for accomplishing the extended customer demands and greater values of their choices. The management of Woolworths believes that retailing should not be stand still and it is important to admit that decisions about customers and the behaviour of shopping must change in a dynamic manner.

Woolworths is responding towards the new era of development by proving the foundations for ensuring the growth and opportunities. By putting the demands of the customer at the heart of their business, the management of Woolworths has rapidly changed their selling product concepts by accepting the mobile technology and increasing the accessibility towards the products and price fixation procedures. For instance, the retails products are initially sold out only in their stores across Australia. By accepting the welcoming changes in the world of retail business, the company has started their online operations to reach maximum customers. Eventually, the company has recognized the needs to keep up and understand the demand of customers and ensure such the retail growth operation seamlessly and effortlessly between “physical and virtual” stores to shop in a way, which refer the most. For extending their operations, Woolworths has made changes in the employee engagements policies.

For serving near about 18 million customers, the human resource department of the company has followed the forwarded steps towards employing more people and work hard to earn their custom and reward their loyalties. In this way, the organization is continuously making sustainable changes for the growth of the organization. Change in the organization is all about ensuring the sustainability in the business operation. Such changes refer not only the operational level but it also contributes towards encouraging contribution of each of employee of the organization. By accepting the truth that the retail business operation can’t be stand still because the demands and products preferences are moving and dynamic, Woolworths has perfectly managed the environmental changes. The organization has already made changes not only accepting the mobile technology to shop across the country but also in the field of human resource and the perspective of each employee of the organization.

SWOT of Woolworths Limited

Strengths

Being positioned as the market leader in the retail business in Australia, the company has perfectly presents their ability of dynamic leadership in the process of the development of the business. Further the company has recognized their ability towards exploiting the retail market potentiality; the company has managed their resources effectively and efficiently. Here the company has made their efforts for minimizing the carbon footprint and accepting the zero food waste policies within the workplace.

Weaknesses

The immense pressure of the rival companies such as Aldi, Coles and many others, the Australia retail market gives new tasks to hold their steady customer base over the years. Companies like Woolworths, for instance, have made a lot of price changing policies to make their product price because the Australian Government has restricted the move of Woolworths in keeping higher prices for their products while making collaboration with Coles. This is one the prime weaknesses of Woolworths.

Opportunities

The Australian retail business has a immense growth potentiality for future period. The factors like advanced supply chain management, advanced and dynamic customer lifestyles and changing shop culture have large uphold the abilities of retailer and provide good opportunities to grow.

Threats

High rivalry in the retail industry is the main threat of Woolworths. Furthermore, the changing government policies and tax and interest rates are major factors, which can affect the growth of Woolworths in the upcoming period within the Australian retail. Based on such SWOT analysis this can clearly identified that Woolworths have taken the “change” for sustainable business operation. Still the organization needs to make some changes for making innovating pricing strategies for delivering their products at the reduced prices. On the other hand, the company has failed to sustain its competitive advantage. For this the company has to explore the promotion strategies and the extension of sponsorship. The company has the financial resources for adopting such changes in their business.

By initiating and managing change in the organisation with the efforts of individual or group is known as change agent. The concepts of change agent managers of the organization are still not clear among managers, employees and HR professionals. Most of the organizations are looking for individuals who are capable of turning strategy into the reality for sustaining during the process of business development in the competitive world. Change agent can be internal such as employees or managers who are associated with the organization to oversee the process of the change across all departments of the organization. In the selected organisations the managers and employees of Woolworths group are being trained to develop the required skills to oversee change. Here managers of the organisation initially struggled with the inventory management skills. Later efforts would be given towards the improvement of the stock management skills. The significant role of the changing agent emphasized when organizations are looking for changing patterns of thoughts, change agent will be able to solve the problems, which have already created the current pattern of thoughts.

Conclusion

By describing the significant contribution of the organizational change towards the perspective of Woolworths, this can be said that alteration in strategy, concepts, policies are required for growth of the business. Fulfilments of the demand of the customers are the ultimate goal of any business. Thus a constant evaluation and alteration are required for ensuring the sustainability in this competitive business world.