Woolworths Limited is one of the biggest supermarket chains developed in 1924 in the international community. In recent years, the retail market in Australia deals with many fluctuations by participating in new competitors. The retail industry is now more vibrant because of the intense competition among Aldi, Coles, Wesfarmers, and Woolworths. The Woolworths is now intended to reduce prices to decrease percentage compared with other company products. However, it is stated that Woolworths required conducting operations and implementing the change to maintain its position in the retail industry and the development strategy in the future. According to Woolworths limited, they recognized as a strong and dominating retail brand with over 59 million revenue and more than 20,000 employees. They represented many other big brands such as BWS, Big W, and many more (Sullivan & Gouldson, 2017). In the following, an effort has been made to discuss the appropriate diagnosis models and intervention based on diagnosis.
It has been stated that change management as per the Emerald group, operating and developing business in this era, the community has also suffered the influence of the environment around it. These impacts often cause competitive pressure and a matter of concern to the growth and success of the organization. It is understood that as all processes and methods in reform objective is to maintain a competitive advantage for the organization. They have to implement new technologies, link with other organizations, utilize staff working culture, strategic nature, and restructuring the department of business. It is associated with the internal and external framework of a company to drive the change within the Woolworths. The organization is comprised of several factors with the potential to influence the operations conducted in the organization. Woolworths is also impacted by the trend and it affects the change and innovation in the industry trends and demands of the customer (Thompson & McLarney, 2017).
The diagnosis models, which have identified as Mckinsey 7s model, which will be implemented for technological intervention as there are 7 elements, which is characterized into hard and soft elements (Sikdar & Payyazhi, 2014). Hard elements are described as structure, system, strategy, and soft elements are described as staff, shared value, style, and skills. It is stated that every organization should use this diagnostic model for change in the development of the organization. It also helps in bringing success to the organization these 7 elements develop on a harmonious and reasonable manner. Woolworths will not fully appreciate the abilities, capabilities and concentrate on few elements and less concentrate on other elements (Shiri, Anvari & Soltani, 2015).
The hard elements determine the growth and success of the organization, which exists, observes, and evaluates the level of understanding effectively and efficiently within the organization. It is stated that the organizational structure depends on the coordination, specialization, and cooperation among the business departments. The changes are discovered as adjustment towards creativity, breaking up of the traditional method of thinking, human resource weakness, and innovation for employees (Straatmann, Kohnke, Hattrup & Mueller, 2016). These issues are diagnosed, which is significant for organization development and weakness needs to be resolved. Under the strategy element, Woolworth may seek information about seeking data and information about consumer trends, environment operation, competitiveness of the retail industry to define a prospect for new strategy and development. The strategic change tends to human capability, leadership, and organizational structure, which should change and from that vision change. The system element describes that Woolworths consider HR and financial system to decide growth rate to replace a well-known brand. In addition, Woolworths can easily monitor, control, evaluate, and implementation process of change, and determine staff and personnel on the right path (Dezdar & Haghighi, 2014).
The elements in the McKinsey 7S diagnostic model are-
It is stated that Kotter’s integrative model of organization is comprised of six elements i.e. social system, dominant coalition, external environment, formal organizational arrangements, technology, employees, and other tangible assets. It also says that all companies undergo periods of change to adapt to the innovative business environment. It is significant for not only matter of concern, but also competitive benefit, and thus enhances the growth of the organization. According to Haynes, it is stated that the strategic intervention will influence to key process changes. This diagnosis will have in implementing change in the organization. Woolworths can depend on Kotter’s integrative model to concentrate on the competitive challenges, which they have to deal with competition and exploit development of the retail market. In the external environment, it influences business operations conducted in the Woolworths. It is essential for adopting low price strategy and establishes a difference by enhancing diversity in the organization (Connelly, Haynes, Tihanyi, Gamache & Devers, 2016).
It is stated that to determine the effectiveness of the strategic intervention, Woolworth needs to evaluate and determine the success and growth of the organization. Woolworths can define as all formal structure that has been established to deal with the operations of employees and technology (Mathews & Crocker, 2016). In the external environment, Kotter’s can define the level of competition, the threat of substitutes, existing rivals, price fluctuations, negotiating capacity of buyers, and the bargaining power of suppliers. It is stated that the organizational culture of Woolworths changed because of the leadership and diversity in the workforce. It is also influenced by effective and efficient decision-making in human resource and technological development. In technological development, it deliberates competition and level of rivalry in the marketplace. It also n contributes to improved competitive advantage, for example, integrated online application for a smartphone (Wee, 2017).
The existence of Woolworths mainly depends on the efficient utilization of resources such as employees, capital, technology, infrastructure etc. These aspects can make cordial relationship among other employees and Woolworths maintain a positive relationship with their prospective employees. They can define and manage the goals and strategies by a negotiating process between employees of dominant alliances, which have similar interests (Monnot, 2017).
The Mckinsey 7s model determines to execute a proposed and definite strategy. It aligns the processes and departments during a merger and acquisition. It helps to understand the gaps, inconsistencies, and improve the performance of the Woolworths. It can be used to interrelate and made changes to analyze the current situation made according to consideration. In respect to the diagnosis to the intervention of this model utilized by the Woolworths, enhance their product delivery and increasingly efficient and productive employee as well as customer engagement. This holistic model involves every employee in the organization and evaluates the Woolworths strength, weakness, opportunities, and threats at every point of the organization. It will also involve the systems i.e. marketing, operations, production, IT, and finance along with traditional aspects in the association (Cox, Pinfield & Rutter, 2018).
The Kotter’s integrative model application will bring the advantages and it will give long-term profitability. In the short-term, Woolworth defines products of customer and demands of the customer. They should gather information of customers make an effective decision according to that. It is stated that adjustments might improve performance, productivity, and operate the system smoothly. In the long-term, these six elements will more influence the main organization procedures will shape the development and growth of the organization. It is stated that the key success and growth of the Woolworths is adaptability, it will determine and discusses in which manner they will maintain the alignment among the internal and external organization, and adapt to the challenge to attain objectives (Oreg, Bartunek, Lee & Do, 2018).
The strategic intervention of Mckinsey 7s framework used by Woolworths as it is seen that the top supermarkets in Australia are recognized as a quality products provider. They are losing their position in the market as prices are increasing at every point in time. According to Chung, a customer supermarket survey over 2500 consumers, the products promotions and value recognition have been more essential for the retention of customers. It is recognized from the diagnosis that Woolworths need to focus on communication, retention, motivation, and need to enhance their organizational culture. As per the survey, conducted 52% of consumers interpreted that the value of money is the most significant factor in delivering products in the supermarket as compared to 45% in 3 years ago. It is stated that to induces the customers, Woolworth should improve diversity in selecting products, as the quality of services is essential. The strategic intervention would be appropriate and allow organizations to collect information from industry, which will provide long-term stakeholder engagement in competing with opponents. The intervention designed to assist employees of Woolworths in developing strategies in order to enable competitive advantage and success. Therefore, to execute the change management in Woolworths, there have been many interventions used by the organizations in order to encourage and improve their services, to induce customers and maintain their position in the Australian supermarket industry (Chienwittayakun & Mankin, 2015).
The strategic intervention of Kotter’s model utilized by Woolworth is to manage change effectively and efficiently. They should implement a structural intervention to adapt to the organizational changes. They should take care of the organizational culture, power, and politics, and enhance communication among the manager and employees. The emphasis on innovating organization culture is to become more dynamic, adaptable, more focussed on the needs and preferences of the customers. They should develop an intervention plan and policies and make proper strategies in attaining the goals It is stated that advancement of technology has innovate their products and services so that they can meet more of their customers’ needs, customer value and quality services. Woolworths should be more conscious about the pricing strategy in defining and determining the success and growth of the organization. They should attract as many as players should so that they can focus on improving performance and able to attain the capabilities and abilities of every employee in the organization. They should direct all the assets and resources towards the attainment of goals and objectives (Al-Haddad & Kotnour, 2015).
Conclusion
In conclusion, it has been diagnosed that implementing change in organizational procedures and policies is a difficult process. Woolworth has various opportunities to recover market segments form competitors. Every organization has own diagnostic model, which further states the McKinsey 7s and Kotter’s model for change management. The strategic intervention assists Woolworths in recapturing position in the retail market and also establish benefits of the new market opportunities internally. These changes discover many issues and opportunities in the external framework of the organization, which is supported by intervention strategies with respect to the organization. Woolworths has effectively maintained a competitive edge in the retail market along with competitors. They concentrate on execution and implementation of the aims and objectives as a major procedure. However, the prospective opportunities that Woolworths should support and adaptive change management in present as well as in future.
References
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