Organizational behaviour facilitates in creating a constructive work environment in recent times where competitive pressures tend to be stronger than before. Organizational behaviour further helps to develop resilience, human influence and fosters vitality. Thus, organizational behaviour serves decisive role in the management of business (Woolworthsgroup.com.au 2020). The mission statement of Woolworths is to improve stock turns and improve network level of efficiency while guaranteeing that its consumers find in-stock and significance for money products as per their expectation. The vision of Woolworths is to serve as a world lead in retail sector which appeal public who actually care about the value, innovation and quality of products (Woolworthsgroup.com.au 2020). Woolworths’ organizational structure comprises of directors, management and brands which it takes into account. The administration is involved in the process of management control system which is accountable for accomplishing students’ objectives.
The Group Executive Committee is primarily accountable for directing and supervising the management decisions, operations and daily operations of the Woolworths’ brands and reporting to top management of Woolworths. The management structure of Woolworths primarily comprises of Brad Banducci (Managing Director and Chief Executive Officer), Amanda Bardwell (Managing Director or Woolies X), Guy Bent (Managing Director, FoodCo and Metro), Paul Graham (Chief Supply Chain Officer), Stephen Harrison (Chief Financial Officer) and Andrew Hicks (Chief Marketing Officer).
Woolworths is serving as one of the leading and major superstores in Australia which is owned by Woolworths Limited. The organization offers extensive range of products to its clientele. Woolworths has long established history in Australia and has been continuing to remain popular even today. As per reports, Woolworth’s brand has undergone significant changes over the past 33 years (Woolworthsgroup.com.au 2020). Woolworths focus on fresh food, valuable products and its Australian legacy remains robust in its brand positioning and across its present and past visual identities. Woolworths has been successful in taking expenses of its business as part of the “Project Refresh’ initiative. Project Refresh has been seen as an extensive evaluation of all aspects of the organization’s mission. Woolworths has shown great commitment in monitoring, handling as well as decreasing where likely, greenhouse gas emissions of its operations (Nakandala, Lau and Zhao 2017). The company has been endeavouring in order to understand as well as address the risks generated by climate change for the business. Furthermore, Woolworths has undertaken energy price risk analysis and has capitalized on a range of initiatives which support their mission of optimizing energy use and increasing budget certainty.
|
Political Factor |
Ø Challenging trading conditions in Australia has been impacting the growth of retailer Woolworths. Ø As per reports, Woolworths’ yearly results for fiscal year in 2017 ended with a bottom line growth of around 25.3% (Nakandala, Lau and Zhao 2017). Ø On the other hand, the Federal government in Australia has of late introduced competition strategy which circumvents leading self-governing players like Woolworths as well as Coles in removing competition. Ø Close economic as well as trade relations continue between Australia and New Zealand and has helped in the establishment of trade relations in organization. Nevertheless, challenging trading situations in South Africa have affected the growth of Woolworths. |
|
Economic Factor |
Ø Decline in financial sector across Australia has posed impact on the performance of Woolworths significantly. Ø Variations in the currency exchange rates with waning of Australian currency have severely impacted the global operations of Woolworths (Nakandala and Lau 2019). |
|
Social Factor |
Ø There has been witnessed an increasing trend of various organic products. Accordingly, Woolworths must focus on increasing its organic produce in its product portfolio in order to attain hefty number of Australian customers. |
|
Global Factors |
Ø In the next 5 years, entry of Kaufland , German supermarket giant will pose severe challenge for local operators. Ø As per reports, Kaufland has declared strategies of competing heavily on price and has the likelihood to pose threat to Woolworths and other currently leading retailer, Coles (Knox 2015). Ø Woolworths requires competing with highly appropriate shopping experience for time underprivileged customers which will be presented by Kaufland. Ø According to Flax, Bick and Abratt (2016), the Australian retail market has the potential to be considerably superior in comparison to the one targeted by Aldi. Ø It is probable to challenge the business operations of Woolworths. Meanwhile, Woolworths will be competing with a probable access from Amazon Fresh in addition to the development of the Costco store chain as well as its unveiling of a noteworthy available contribution. Ø Woolworths is not taking these threats lightly and focusing on increasing capital expenditure by capitalizing on pilot programs like Woolworths 3.0 store as well as the Woolworths Metro store aiming to produce a segregated shopping experience intended to elevate the level of expediency of e-commerce services Ø (Woolworthsgroup.com.au 2020). |
Simple Problems:
1. Woolworths brand decline due to competition
Woolworths might be experiencing brand value decline because of severe competition between other competitors. As per report, even though brands are regarded as being exceptional amplified their brand value discount retailers Aldi will continue to lessen Woolworths’ brand value. Aldi recently accounting for approximately 15% share among the supermarkets, Woolworths is encountering severe competition while executing its business operations (Abaño 2019). Furthermore, Woolworth’s ranking as the highly valuable brand has experienced a decline of around 1% and currently is on the 5th ranking. Most importantly, the issue lies that certain products in Australia are considered to be progressive on sustaining its brand value and consequently observed a strong innovation gap amongst the highly valuable brands in Australia and out of the country.
2. Woolworth’s facing problems with declining clothing sales
Woolworths is facing challenges related to falling clothing sales due to forceful advancements by SA’s declining economy in addition to the fluctuation of financial market in regarding raising fortunes of its Australian business. The article has provided information that Woolworths has completed its striving R22 billion procurement of David Jones. On the other hand, in South Africa Woolworths’ sales have declined by around 0.2% whereas the comparable store sales have got declined by around 3.4%. Furthermore, Mahlaka (2018) hasclaimed that with the fall in comparable sales at David Jones and Country Road by nearly 3.3% and 1%, Woolworths has focused on its domestic private label products which involved Studio W as well as RE into David Jones.
1. ACCC takes action against Woolworths’ operations
The Australian Competition and Consumer Commission has highlighted primary apprehensions related to projected acquisition by BP Australia’s Pty Ltd of Woolworths Ltd association of retail service station positions and further trying to gather feedback from interested parties. The planned acquisition has eliminated impact of Woolworths on metropolitan markets. As a result, there is a concern that BP would not pursue the pricing strategy of Woolworths. Article has noted that ACCC charges Woolworths of developing a strategy sanctioned by senior administration in order to immediately lessen the anticipated yearly profit decline of Woolworths (ACCC.gov.au 2020). Hence, the ACCC is seeking restrictions for full refund of the amount paid by suppliers under the monetary penalty and outlays.
2. Reducing consumer cycle
As per reports, price of Woolworths’ product range is more expensive as compared with Coles. Such an expensive product range has created a challenge for Woolworths where majority of their consumers are shifting to discounter Aldi. It has further been claimed that during a period of destabilized financial activity, customers have shown likelihood to reduce discretionary expenditures which has been posing challenges to the Big W and Masters. Moreover, persistent pressure on relying on margins which involve slower like-for-like sales in comparison to cost growth which is an extreme-dependence on yearly margin expansion and greater competition instigating from Coles and Aldi (ACCC.gov.au 2020).
1. Probable Carbon Pollution Problem to be faced by Woolworths
Reduced prices and unprecedented pressure for instigating the growth of fast fashion might act as a probable risk for Woolworths in recent future. As per Chalmers (2019), the problem remains that in the process, retail investors in Australia are putting immense pressure for reducing carbon emissions through water usage, pollution and waste and carbon emissions. In the view of Chalmers (2019), unless big retailers like Woolworths is not making noteworthy changes, the issue of carbon pollution is expected to rise nearly 5% through 2030. Since climate change still remains a long-term concern, utmost urgency for immediate action is significantly evident. Thus, taking into consideration such a long labelled wicked problem of climate change, Woolworths must strengthen its current sustainable initiatives in order to reduce greenhouse gas emissions resultant to climate change.
(2c) Strategies to refurbish Woolworths’ Current Organizational Structure and Function
Strategies to tackle decline in Brand and Clothing Sales
Woolworths to tackle its probable brand decline in the retail sector must launch new initiatives to deal with retail landscape. Reports have claimed that recently Woolworths has launched Cartology which intends to evaluate campaign efficacy and furnace improved association with its customers. This retail media business has been expanding a national digital screen network across Woolworths’ stores as well as novel performance tracking modelling (Methner, Hamann and Nilsson 2015). This will help the company to prosper in future as Australian customers are gradually inclining towards digital platforms to purchase grocery products to gather capacity for elevated ‘on-shelf’ prominence in the digital shopping environment. On the other hand,discuss how to deal with to tackle any probable issue of promoting unsafe products and reduce product value, Woolworths must focus on restructuring change on management levels by reducing over $500 million along with reinvestment savings into decreasing the costs. Further it must strategize to refurbish its culture and streamline the business to make major improvement for logistics and brand strategy (Knox 2015).
With an aim of tackling probable slow consumer cycle Woolworths has intended to revamp its store operating model after almost 10 years. Such a strategy has been instigated with an intention of putting greater emphasis on fresh food, opportuneness as well as customer service to suit changing customer needs. Woolworths is planning to restructure management structure regarding the implementation of the store model. This restructure will see the establishment of two new fresh food units at store in near future (Flax, Bick and Abratt 2016).
Furthermore, to increase consumer cycle, Woolworths Food Group must outline its three year strategy to gain the conviction of its consumers as well as upsurge its share of food spend by means of reduced values and enhancing all factors of shopping experience. Present Woolworths Managing Director has been strategizing to aims position the customers at the primary level of whatever they do (Gifford and Newmeyer 2017). This approach will result in reduced values with more compelling agreements along with greater modernization. Furthermore, the strategy should primarily focus on three core principles related to offers, growth and efficiency. As per reports, Woolworths already has been engaged in employing the first trend of this strategy of increasing consumer cycle with substantial investment program which involves around $125 million of price discounts for customers thus taking the value position of the company to its highest competitive level. In addition to this, Woolworths will renovate 80+ stores yearly for the foreseeable future as compared with 23 stores in FY 14 and 61 in FY15.
Furthermore, to deal with carbon pollution, Woolworths must work with its suppliers in product groupings whereby company can see high potential for reducing embedded carbon related to clothing and dairy. Additionally, Woolworths must invest in an array of initiatives which will optimising its energy usage across the fleet of stores, distribution centres as well as support agencies, decreasing its energy consumption as well as challenging emerging technologies.
According to Schleper, Blome and Wuttke (2017), refurbishments will be designed considering preferences of local customers and further will be prioritized in regions where Woolworths perceives utmost potential for customer growth. According to Chalmers (2019), Woolworths transformed functions will continue to develop around 20-30 new divisions per annum as per population growth and to look into gaps in the current system.
Following recommendations are offered in order to enhance Woolworths’ level of learning and improve organizational behaviour.
Firstly, learning has been found that learning primarily takes place in a hierarchy culture wherein the leader takes into account of essential functions and employees are given utmost freedom of individuality and discretion. However, Woolworths must take into account that simply providing individuality and flexibility will not be able to stimulate any learning wherein employees will be able to receive empowerment and will show greater inclination in learning (Lappalainen 2015). At this juncture, Woolworths must consider a model of empowerment where people are nurtured within a wholly supportive setting with self-development prospects.
Secondly, Woolworths’ managers must provide suitable direction, transparency and recognition in order to confirm that every employee appreciates his or her role in the organization, what is expected to deliver as well as the extent of value each employee will add to the organization (Ovadje 2018).
Thirdly, implementation of McClelland’s principle at the beginning of employees’ occupation will help Woolworths’ managers to obtain in-depth understanding of the profile of employees (Flax, Bick and Abratt 2016). It is justifiable to suppose use of McClelland’s principle will help Woolworths to develop workforce and provide hands-on experience in their work.
In addition to this, human resources of Woolworths must be accountable for setting up specific initiatives and adopt the conducted programs in order to create approachable and responsive workplace climate. According to Gifford and Newmeyer (2017), few measures which Woolworths’ must undertake are likely to induce progressive leadership initiatives along with uninterrupted interaction between employees of the company and further establishing Woolworths’ human resources goals as well as objectives.
Lastly, the management of Woolworths must take constructive thing related to incentive-based motivational methods whereby performance is primarily driven by objectives. In the view of Nakandala and Lau (2019), by successfully interacting with employees’ management can guarantee reciprocally approved subsequent goals as well as targets which further acts as significant motivational outcomes on its workforce. Furthermore, managers of Woolworths must confirm that the company must set up knowledge-based enterprises to amplify competence of the workforce. It will be suitable for situations wherein Woolworths will be able to set up employees’ management as well as self-leadership abilities and focus on their ingenuity, tacit knowledge as well as determination.
References
Abaño, J., 2019. Woolworths, Coles brand value decline due to competition – Inside FMCG. [online] Inside FMCG. Available at: https://insidefmcg.com.au/2019/09/02/woolworths-coles-brand-value-decline-due-to-competition/ [Accessed 22 Jan. 2020].
ACCC.gov.au., 2020. ACCC releases Statement of Issues on BP’s proposed acquisition of Woolworths’ petrol sites. Available at: https://www.accc.gov.au/media-release/accc-releases-statement-of-issues-on-bps-proposed-acquisition-of-woolworths-petrol-sites Accessed 22 Jan. 2020]
Chalmers, S., 2019. Woolworths shares fall as supermarket warns consumer demand is ‘subdued’. [online] ABC News. Available at: https://www.abc.net.au/news/2019-02-20/woolworths-sales-growth-picks-up-despite-subdued-consumer-demand/10828114 [Accessed 22 Jan. 2020].
Flax, J., Bick, G. and Abratt, R., 2016. The perceptions of supplier-buyer relations and its affect on the corporate brand. Journal of Brand Management, 23(1), pp.22-37.
Gifford, R. and Newmeyer, C.E., 2017. Brand Leadership: Behaviors that Drive Brand and Consumer Engagement—An Abstract. In Creating Marketing Magic and Innovative Future Marketing Trends (pp. 627-628). Springer, Cham.
Knox, M., 2015. Supermarket monsters: The price of Coles and Woolworths’ dominance (Vol. 6). Black Inc..
Lappalainen, P., 2015. Reframing engineering curriculum with integrated education to foster future innovation ecosystems. eLearning, p.43.
Mahlaka, R.,2018. Woolworths faces the eye of the storm. [online] The Citizen. Available at: https://citizen.co.za/business/1784344/woolworths-faces-the-eye-of-the-storm/ [Accessed 22 Jan. 2020].
Methner, N., Hamann, R. and Nilsson, W., 2015. The evolution of a sustainability leader: The development of strategic and boundary spanning organizational innovation capabilities in Woolworths. In The Business of Social and Environmental Innovation (pp. 87-104). Springer, Cham.
Meyer, J., 2015. Woolworths shares facing headwinds, says Morgan Stanley. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/markets/woolworths-shares-facing-headwinds-says-morgan-stanley-20150120-12twvl.html [Accessed 22 Jan. 2020].
Nakandala, D. and Lau, H.C., 2019. Innovative adoption of hybrid supply chain strategies in urban local fresh food supply chain. Supply Chain Management: An International Journal.
Nakandala, D., Lau, H. and Zhao, L., 2017. Development of a hybrid fresh food supply chain risk assessment model. International Journal of Production Research, 55(14), pp.4180-4195.
Ovadje, F., 2018. Riding the waves of change: An interview with Mitchell Elegbe, CEO Interswitch group. In Routledge Handbook of Organizational Change in Africa (pp. 268-280). Routledge.
Schleper, M.C., Blome, C. and Wuttke, D.A., 2017. The dark side of buyer power: Supplier exploitation and the role of ethical climates. Journal of Business Ethics, 140(1), pp.97-114.
Woolworthsgroup.com.au., 2020. Strategy and objectives – Woolworths Group. [online] Woolworthsgroup.com.au. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives [Accessed 22 Jan. 2020].
Woolworthsgroup.com.au., 2020. About Us – Woolworths Group. [online] Woolworthsgroup.com.au. Available at: https://www.woolworthsgroup.com.au/page/about-us [Accessed 22 Jan. 2020].
Organizational behaviour facilitates in creating a constructive work environment in recent times where competitive pressures tend to be stronger than before. Organizational behaviour further helps to develop resilience, human influence and fosters vitality. Thus, organizational behaviour serves decisive role in the management of business (Woolworthsgroup.com.au 2020). The mission statement of Woolworths is to improve stock turns and improve network level of efficiency while guaranteeing that its consumers find in-stock and significance for money products as per their expectation. The vision of Woolworths is to serve as a world lead in retail sector which appeal public who actually care about the value, innovation and quality of products (Woolworthsgroup.com.au 2020). Woolworths’ organizational structure comprises of directors, management and brands which it takes into account. The administration is involved in the process of management control system which is accountable for accomplishing students’ objectives.
The Group Executive Committee is primarily accountable for directing and supervising the management decisions, operations and daily operations of the Woolworths’ brands and reporting to top management of Woolworths. The management structure of Woolworths primarily comprises of Brad Banducci (Managing Director and Chief Executive Officer), Amanda Bardwell (Managing Director or Woolies X), Guy Bent (Managing Director, FoodCo and Metro), Paul Graham (Chief Supply Chain Officer), Stephen Harrison (Chief Financial Officer) and Andrew Hicks (Chief Marketing Officer).
Woolworths is serving as one of the leading and major superstores in Australia which is owned by Woolworths Limited. The organization offers extensive range of products to its clientele. Woolworths has long established history in Australia and has been continuing to remain popular even today. As per reports, Woolworth’s brand has undergone significant changes over the past 33 years (Woolworthsgroup.com.au 2020). Woolworths focus on fresh food, valuable products and its Australian legacy remains robust in its brand positioning and across its present and past visual identities. Woolworths has been successful in taking expenses of its business as part of the “Project Refresh’ initiative. Project Refresh has been seen as an extensive evaluation of all aspects of the organization’s mission. Woolworths has shown great commitment in monitoring, handling as well as decreasing where likely, greenhouse gas emissions of its operations (Nakandala, Lau and Zhao 2017). The company has been endeavouring in order to understand as well as address the risks generated by climate change for the business. Furthermore, Woolworths has undertaken energy price risk analysis and has capitalized on a range of initiatives which support their mission of optimizing energy use and increasing budget certainty.
|
Political Factor |
Ø Challenging trading conditions in Australia has been impacting the growth of retailer Woolworths. Ø As per reports, Woolworths’ yearly results for fiscal year in 2017 ended with a bottom line growth of around 25.3% (Nakandala, Lau and Zhao 2017). Ø On the other hand, the Federal government in Australia has of late introduced competition strategy which circumvents leading self-governing players like Woolworths as well as Coles in removing competition. Ø Close economic as well as trade relations continue between Australia and New Zealand and has helped in the establishment of trade relations in organization. Nevertheless, challenging trading situations in South Africa have affected the growth of Woolworths. |
|
Economic Factor |
Ø Decline in financial sector across Australia has posed impact on the performance of Woolworths significantly. Ø Variations in the currency exchange rates with waning of Australian currency have severely impacted the global operations of Woolworths (Nakandala and Lau 2019). |
|
Social Factor |
Ø There has been witnessed an increasing trend of various organic products. Accordingly, Woolworths must focus on increasing its organic produce in its product portfolio in order to attain hefty number of Australian customers. |
|
Global Factors |
Ø In the next 5 years, entry of Kaufland , German supermarket giant will pose severe challenge for local operators. Ø As per reports, Kaufland has declared strategies of competing heavily on price and has the likelihood to pose threat to Woolworths and other currently leading retailer, Coles (Knox 2015). Ø Woolworths requires competing with highly appropriate shopping experience for time underprivileged customers which will be presented by Kaufland. Ø According to Flax, Bick and Abratt (2016), the Australian retail market has the potential to be considerably superior in comparison to the one targeted by Aldi. Ø It is probable to challenge the business operations of Woolworths. Meanwhile, Woolworths will be competing with a probable access from Amazon Fresh in addition to the development of the Costco store chain as well as its unveiling of a noteworthy available contribution. Ø Woolworths is not taking these threats lightly and focusing on increasing capital expenditure by capitalizing on pilot programs like Woolworths 3.0 store as well as the Woolworths Metro store aiming to produce a segregated shopping experience intended to elevate the level of expediency of e-commerce services Ø (Woolworthsgroup.com.au 2020). |
Simple Problems:
1. Woolworths brand decline due to competition
Woolworths might be experiencing brand value decline because of severe competition between other competitors. As per report, even though brands are regarded as being exceptional amplified their brand value discount retailers Aldi will continue to lessen Woolworths’ brand value. Aldi recently accounting for approximately 15% share among the supermarkets, Woolworths is encountering severe competition while executing its business operations (Abaño 2019). Furthermore, Woolworth’s ranking as the highly valuable brand has experienced a decline of around 1% and currently is on the 5th ranking. Most importantly, the issue lies that certain products in Australia are considered to be progressive on sustaining its brand value and consequently observed a strong innovation gap amongst the highly valuable brands in Australia and out of the country.
2. Woolworth’s facing problems with declining clothing sales
Woolworths is facing challenges related to falling clothing sales due to forceful advancements by SA’s declining economy in addition to the fluctuation of financial market in regarding raising fortunes of its Australian business. The article has provided information that Woolworths has completed its striving R22 billion procurement of David Jones. On the other hand, in South Africa Woolworths’ sales have declined by around 0.2% whereas the comparable store sales have got declined by around 3.4%. Furthermore, Mahlaka (2018) hasclaimed that with the fall in comparable sales at David Jones and Country Road by nearly 3.3% and 1%, Woolworths has focused on its domestic private label products which involved Studio W as well as RE into David Jones.
1. ACCC takes action against Woolworths’ operations
The Australian Competition and Consumer Commission has highlighted primary apprehensions related to projected acquisition by BP Australia’s Pty Ltd of Woolworths Ltd association of retail service station positions and further trying to gather feedback from interested parties. The planned acquisition has eliminated impact of Woolworths on metropolitan markets. As a result, there is a concern that BP would not pursue the pricing strategy of Woolworths. Article has noted that ACCC charges Woolworths of developing a strategy sanctioned by senior administration in order to immediately lessen the anticipated yearly profit decline of Woolworths (ACCC.gov.au 2020). Hence, the ACCC is seeking restrictions for full refund of the amount paid by suppliers under the monetary penalty and outlays.
2. Reducing consumer cycle
As per reports, price of Woolworths’ product range is more expensive as compared with Coles. Such an expensive product range has created a challenge for Woolworths where majority of their consumers are shifting to discounter Aldi. It has further been claimed that during a period of destabilized financial activity, customers have shown likelihood to reduce discretionary expenditures which has been posing challenges to the Big W and Masters. Moreover, persistent pressure on relying on margins which involve slower like-for-like sales in comparison to cost growth which is an extreme-dependence on yearly margin expansion and greater competition instigating from Coles and Aldi (ACCC.gov.au 2020).
1. Probable Carbon Pollution Problem to be faced by Woolworths
Reduced prices and unprecedented pressure for instigating the growth of fast fashion might act as a probable risk for Woolworths in recent future. As per Chalmers (2019), the problem remains that in the process, retail investors in Australia are putting immense pressure for reducing carbon emissions through water usage, pollution and waste and carbon emissions. In the view of Chalmers (2019), unless big retailers like Woolworths is not making noteworthy changes, the issue of carbon pollution is expected to rise nearly 5% through 2030. Since climate change still remains a long-term concern, utmost urgency for immediate action is significantly evident. Thus, taking into consideration such a long labelled wicked problem of climate change, Woolworths must strengthen its current sustainable initiatives in order to reduce greenhouse gas emissions resultant to climate change.
(2c) Strategies to refurbish Woolworths’ Current Organizational Structure and Function
Strategies to tackle decline in Brand and Clothing Sales
Woolworths to tackle its probable brand decline in the retail sector must launch new initiatives to deal with retail landscape. Reports have claimed that recently Woolworths has launched Cartology which intends to evaluate campaign efficacy and furnace improved association with its customers. This retail media business has been expanding a national digital screen network across Woolworths’ stores as well as novel performance tracking modelling (Methner, Hamann and Nilsson 2015). This will help the company to prosper in future as Australian customers are gradually inclining towards digital platforms to purchase grocery products to gather capacity for elevated ‘on-shelf’ prominence in the digital shopping environment. On the other hand,discuss how to deal with to tackle any probable issue of promoting unsafe products and reduce product value, Woolworths must focus on restructuring change on management levels by reducing over $500 million along with reinvestment savings into decreasing the costs. Further it must strategize to refurbish its culture and streamline the business to make major improvement for logistics and brand strategy (Knox 2015).
With an aim of tackling probable slow consumer cycle Woolworths has intended to revamp its store operating model after almost 10 years. Such a strategy has been instigated with an intention of putting greater emphasis on fresh food, opportuneness as well as customer service to suit changing customer needs. Woolworths is planning to restructure management structure regarding the implementation of the store model. This restructure will see the establishment of two new fresh food units at store in near future (Flax, Bick and Abratt 2016).
Furthermore, to increase consumer cycle, Woolworths Food Group must outline its three year strategy to gain the conviction of its consumers as well as upsurge its share of food spend by means of reduced values and enhancing all factors of shopping experience. Present Woolworths Managing Director has been strategizing to aims position the customers at the primary level of whatever they do (Gifford and Newmeyer 2017). This approach will result in reduced values with more compelling agreements along with greater modernization. Furthermore, the strategy should primarily focus on three core principles related to offers, growth and efficiency. As per reports, Woolworths already has been engaged in employing the first trend of this strategy of increasing consumer cycle with substantial investment program which involves around $125 million of price discounts for customers thus taking the value position of the company to its highest competitive level. In addition to this, Woolworths will renovate 80+ stores yearly for the foreseeable future as compared with 23 stores in FY 14 and 61 in FY15.
Furthermore, to deal with carbon pollution, Woolworths must work with its suppliers in product groupings whereby company can see high potential for reducing embedded carbon related to clothing and dairy. Additionally, Woolworths must invest in an array of initiatives which will optimising its energy usage across the fleet of stores, distribution centres as well as support agencies, decreasing its energy consumption as well as challenging emerging technologies.
According to Schleper, Blome and Wuttke (2017), refurbishments will be designed considering preferences of local customers and further will be prioritized in regions where Woolworths perceives utmost potential for customer growth. According to Chalmers (2019), Woolworths transformed functions will continue to develop around 20-30 new divisions per annum as per population growth and to look into gaps in the current system.
Following recommendations are offered in order to enhance Woolworths’ level of learning and improve organizational behaviour.
Firstly, learning has been found that learning primarily takes place in a hierarchy culture wherein the leader takes into account of essential functions and employees are given utmost freedom of individuality and discretion. However, Woolworths must take into account that simply providing individuality and flexibility will not be able to stimulate any learning wherein employees will be able to receive empowerment and will show greater inclination in learning (Lappalainen 2015). At this juncture, Woolworths must consider a model of empowerment where people are nurtured within a wholly supportive setting with self-development prospects.
Secondly, Woolworths’ managers must provide suitable direction, transparency and recognition in order to confirm that every employee appreciates his or her role in the organization, what is expected to deliver as well as the extent of value each employee will add to the organization (Ovadje 2018).
Thirdly, implementation of McClelland’s principle at the beginning of employees’ occupation will help Woolworths’ managers to obtain in-depth understanding of the profile of employees (Flax, Bick and Abratt 2016). It is justifiable to suppose use of McClelland’s principle will help Woolworths to develop workforce and provide hands-on experience in their work.
In addition to this, human resources of Woolworths must be accountable for setting up specific initiatives and adopt the conducted programs in order to create approachable and responsive workplace climate. According to Gifford and Newmeyer (2017), few measures which Woolworths’ must undertake are likely to induce progressive leadership initiatives along with uninterrupted interaction between employees of the company and further establishing Woolworths’ human resources goals as well as objectives.
Lastly, the management of Woolworths must take constructive thing related to incentive-based motivational methods whereby performance is primarily driven by objectives. In the view of Nakandala and Lau (2019), by successfully interacting with employees’ management can guarantee reciprocally approved subsequent goals as well as targets which further acts as significant motivational outcomes on its workforce. Furthermore, managers of Woolworths must confirm that the company must set up knowledge-based enterprises to amplify competence of the workforce. It will be suitable for situations wherein Woolworths will be able to set up employees’ management as well as self-leadership abilities and focus on their ingenuity, tacit knowledge as well as determination.
References
Abaño, J., 2019. Woolworths, Coles brand value decline due to competition – Inside FMCG. [online] Inside FMCG. Available at: https://insidefmcg.com.au/2019/09/02/woolworths-coles-brand-value-decline-due-to-competition/ [Accessed 22 Jan. 2020].
ACCC.gov.au., 2020. ACCC releases Statement of Issues on BP’s proposed acquisition of Woolworths’ petrol sites. Available at: https://www.accc.gov.au/media-release/accc-releases-statement-of-issues-on-bps-proposed-acquisition-of-woolworths-petrol-sites Accessed 22 Jan. 2020]
Chalmers, S., 2019. Woolworths shares fall as supermarket warns consumer demand is ‘subdued’. [online] ABC News. Available at: https://www.abc.net.au/news/2019-02-20/woolworths-sales-growth-picks-up-despite-subdued-consumer-demand/10828114 [Accessed 22 Jan. 2020].
Flax, J., Bick, G. and Abratt, R., 2016. The perceptions of supplier-buyer relations and its affect on the corporate brand. Journal of Brand Management, 23(1), pp.22-37.
Gifford, R. and Newmeyer, C.E., 2017. Brand Leadership: Behaviors that Drive Brand and Consumer Engagement—An Abstract. In Creating Marketing Magic and Innovative Future Marketing Trends (pp. 627-628). Springer, Cham.
Knox, M., 2015. Supermarket monsters: The price of Coles and Woolworths’ dominance (Vol. 6). Black Inc..
Lappalainen, P., 2015. Reframing engineering curriculum with integrated education to foster future innovation ecosystems. eLearning, p.43.
Mahlaka, R.,2018. Woolworths faces the eye of the storm. [online] The Citizen. Available at: https://citizen.co.za/business/1784344/woolworths-faces-the-eye-of-the-storm/ [Accessed 22 Jan. 2020].
Methner, N., Hamann, R. and Nilsson, W., 2015. The evolution of a sustainability leader: The development of strategic and boundary spanning organizational innovation capabilities in Woolworths. In The Business of Social and Environmental Innovation (pp. 87-104). Springer, Cham.
Meyer, J., 2015. Woolworths shares facing headwinds, says Morgan Stanley. [online] The Sydney Morning Herald. Available at: https://www.smh.com.au/business/markets/woolworths-shares-facing-headwinds-says-morgan-stanley-20150120-12twvl.html [Accessed 22 Jan. 2020].
Nakandala, D. and Lau, H.C., 2019. Innovative adoption of hybrid supply chain strategies in urban local fresh food supply chain. Supply Chain Management: An International Journal.
Nakandala, D., Lau, H. and Zhao, L., 2017. Development of a hybrid fresh food supply chain risk assessment model. International Journal of Production Research, 55(14), pp.4180-4195.
Ovadje, F., 2018. Riding the waves of change: An interview with Mitchell Elegbe, CEO Interswitch group. In Routledge Handbook of Organizational Change in Africa (pp. 268-280). Routledge.
Schleper, M.C., Blome, C. and Wuttke, D.A., 2017. The dark side of buyer power: Supplier exploitation and the role of ethical climates. Journal of Business Ethics, 140(1), pp.97-114.
Woolworthsgroup.com.au., 2020. Strategy and objectives – Woolworths Group. [online] Woolworthsgroup.com.au. Available at: https://www.woolworthsgroup.com.au/page/about-us/our-approach/strategy-and-objectives [Accessed 22 Jan. 2020].
Woolworthsgroup.com.au., 2020. About Us – Woolworths Group. [online] Woolworthsgroup.com.au. Available at: https://www.woolworthsgroup.com.au/page/about-us [Accessed 22 Jan. 2020].
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download
