Management Business Context : Woolworths Holding Limited

The Management Business Context- Woolworths Holding Limited

Table of Contents

Introduction. 3

Background Information. 3

PESTEL Analysis. 4

Porter’s five forces. 4

Stakeholders of Woolworths. 5

Business Strategy. 5

Conclusion. 6

References. 7

Introduction

Organisations do not operate in isolation. They influence and are influenced by several elements engrained in the organisation’s internal and external environments, the impact of which may be observed in its structure and tactics. These elements are essentially dynamic, resulting in numerous uncertainties, and are substantially related to other areas of the organisation in such a way that organisations must evaluate them before making any strategic choice. This study is going to discuss the business context of Woolworths Holding Limited and its different types of business environment affecting it. It is going to discuss the company profile of Woolworths Holding limited and also is going to discuss the business environment.

Background Information

Woolworths Limited is an Australian retail corporation with interests in neighbouring New Zealand. The retailing chain sells a wide range of goods and services, including food, booze, and lodging services. Woolworths has been a retail example of overcoming adversity from its commencement in 1924, quickly growing to fabricate auxiliaries and secure different brands and products on its way to prosperity. The key governance concern is the lender’s control over the business’s sale, which was established by the board’s utilization of gotten acquired assets at the beginning of the casual recuperation process (Parkinson, 2018). Today, the organization utilizes north of 191,000 individuals and procures A$2.14 billion in profit, as per the latest numbers available as of the end of operations in 2011. Woolworths pioneered the use of cash registers in transaction processing; each purchase was followed by a receipt printed from the cash register. These businesses want to make a big difference in the communities in which they operate (Zulu, 2020). In 1929, the businesses launched the first foreign branch in New Zealand, dealing in general items. As a component of their development procedure, the organizations bought Foodland food and Progress Enterprises, expanding the absolute number of Woolworth’s outlets in Australia to 750.

PESTEL Analysis

Political Factor: For a long time, greater commercial links between Australia and New Zealand have improved Woolworth’s corporate success. The two nations also have political stability, which makes for an ideal economic climate.

Economic factors: New Zealand’s Price Level is also rather high, and higher living quality for the total society will have a significant impact on Woolworth’s overall success. The most important indicator of green buying intention is an environmental concern (Grootboom, 2018).

Socio-cultural factors: Woolworth exceeds all expectations to satisfy the specific needs of its purchasers by conveying successful and fast administrations.

Technological factors: Woolworth continues to make significant investments in information and communication technologies to perform better and customer satisfaction.

Environmental Factors: Natural refrigerant and HVAC systems were installed throughout 14 locations, decreasing the company’s carbon footprint.

Legal factors: While Woolworths closely adheres to different norms and regulations, they must concentrate on keeping its supplies up to date to avoid any legal claims regarding their items.

Porter’s five forces

Threats of New Entrants: New participants in Food and Staples Retailing give development and extremist advancements, applying strain on Woolworths Limited with marked down value techniques, cost decreases, and giving better approaches to enhance clients.

Bargaining Power of Suppliers: Because of the prevalence of supermarket chains, suppliers in the grocery business have considerable leverage. In truth, suppliers can cause market supply fluctuations. Woolworths will respond by lowering pricing and extending its private-label product choices (Van Kampen and Kirkham, 2020).

Bargaining Power of Buyers: Purchasers may be a mentioning group. They need to get the best things introduced at the most diminished conceivable expense.

Threats of Substitute: Customer behavior in this business is heavily influenced by brand loyalty. Furthermore, many businesses, like Woolworths, sell food and technology.

Rivalry among the Existing Competitors: In the event that resistance among current individuals in a space is wild, it will push down expenses and decline the business’ finished advantage.

Stakeholders of Woolworths

Woolworths bends over backward to meet their clients’ assumptions for item quality, worth, and maintainability across all of our 1453 retail stores. Woolworths utilizes around 45 000 individuals all through its worldwide organizations, and we perceive their situation as a main business in empowering health. We try to give good conditions and to advance their long haul and practical turn of events. Woolworths works in South Africa, just as 10 other Sub-Saharan African countries, just as Australia and New Zealand. With regards to assorted market real factors across mainlands, worldwide company development for top merchants is likewise a difficult undertaking (Kasanagottu and Bhattacharya, 2018). We recognise the significance of being effectively associated with local area upliftment exercises in the networks in which we work. Woolworths has numerous investors in South Africa and globally, going from critical organizations to people, being a JSE-listed and publicly traded firm. Woolworth’s advance funders are a huge wellspring of capital for the Group, and we guarantee that the Group is fittingly financed to fulfill its monetary commitments and corporate targets while dealing with the related dangers. Obligation funders are a critical wellspring of capital for the Group, and Woolworths guarantees that the Group is properly financed to fulfill its monetary commitments and business destinations while dealing with the related dangers.

Business Strategy

One is to defend and expand Woolworths’ core businesses, ensuring that they protect the basis of what distinguishes them from their rivals. The second strategy element is to reach out to more people and utilise our platform even further by exploring both undeveloped and new growth possibilities. With regards to assorted market real factors across mainlands, worldwide company development for top merchants is likewise a difficult undertaking (Kasanagottu and Bhattacharya, 2018). The third goal is to be the best in terms of customer service. They developed a successful company by placing its clients at the core of all that they do, and this should proceed as they keep up with and develop our center organizations while additionally growing for additional.

Conclusion

This study above concludes about the business context of Woolworths Holding Limited and its different types of business environment affecting it. It also discusses the company profile of Woolworths Holding limited and also is going to discuss the business environment. It gives a brief discussion about the company’s profile and also discusses the pestle analysis of the company despite strong competition; business chains offer low rates and huge discounts since they optimize economies of scale owing to high annual turnover. The inclusion of Porter’s market influences in the administration of this powerful chain is straightforwardly connected with its consistency, allure, and effectiveness.

References

Grootboom, V. (2018). University of KwaZulu-Natal students’ perceptions of green branding at Woolworths (Doctoral dissertation). Retrieved from: https://ukzn-dspace.ukzn.ac.za/handle/10413/18225

Kasanagottu, S., & Bhattacharya, S. (2018). A Review of Metro, Target, & Woolworths Global Business Strategy. International Journal of Mechanical Engineering and Technology, 9(7). Retrieved from: https://www.researchgate.net/profile/Sudipto-Bhattacharya-2/publication/326928843_A_review_of_metro_target_woolworths_global_business_strategy/links/5da15471a6fdcc8fc3492352/A-review-of-metro-target-woolworths-global-business-strategy.pdf

Parkinson, M. M. (2018). Case Study 4: Woolworths Group plc. In Corporate Governance in Transition (pp. 203-221). Palgrave Macmillan, Cham. Retrieved from: https://link.springer.com/chapter/10.1007/978-3-319-77110-6_10

Van Kampen, T., & Kirkham, R. (2020). Assessment of the Supermarkets and Grocery Stores Sector in Australia: A Case Study of Woolworths and Coles using DEA and VAIC™. The Journal of New Business Ideas & Trends, 18(1), 1-11. Retrieved from: https://research.usc.edu.au/view/delivery/61USC_INST/12132822630002621/13137209350002621

Zulu, S. B. (2020). The role of CSR in brand equity: Case of selected Woolworths stores in Pietermaritzburg (Doctoral dissertation). Retrieved from: https://ukzn-dspace.ukzn.ac.za/handle/10413/19497