SOLUTION: Strategy Management – 1500 words. extra $5 is for the analytics assignment

SOLUTION: Strategy Management – 1500 words. extra $5 is for the analytics assignment.

Attached.

Running head: STRAEGIC ANALYSIS

1

Strategic Analysis
Student’s Name
Institutional Affiliation

Background information
Woolworths Group Limited first opened for business in 1924 in Brisbane with cheap
commodities as the founding philosophy and values. Percy Christmas founded the company as
the CEO. Currently, the supermarket operates as a retail store through Australia, where it
engages in the procurement and resale of food products to customers (“Corporate Responsibility
Strategy 2020 – Woolworths Group”, 2019). The corporate governance of the company is based
on the Board of Directors. The principal objective of the Board is to ensure the value of
shareholder is maintained and increased. Furthermore, the Board represents the shareholders’
interest by appraising and overseeing the policies, strategies, and performance of the company.
The group has invested significantly in its corporate responsibility strategy. The
framework incorporates three components, namely, planet, people, and prosperity, which enacted
in 2015. In terms of the planet, the company focuses on zero food waste and the reduction of

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carbon emission to encourage sustainability. Woolworths has also embraced diversity as its
strategic approach, whereby the executive and senior managers’ positions reflect gender equality.
Diversity in the group coupled with zero salary wage gap continues to mirror the communities it
serves. In addition, the foundation of the firm is hinged on trusted relationships. This strategy
entails fair and equitable business engagement with various suppliers to attain top quartile
ranking. The group has managed to inspire customers to consume its products healthily and
sustainably.
The momentum sale of Australian foods showed improved sales growth. In 2017, the
group realized an adjusted sales growth of 7.8% with total sales of the year amounting to $3.6
billion (“WOOLWORTHS GROUP LTD: WOW Stock Price | AU000000WOW2 |
MarketScreener”, 2019). On the other hand, Endeavour drinks saw a robust growth of 4.3%
totaling $7,913 million in the year ended in 2017. The company realized most of its profit from
both food and liquor stores.
Macro-environment Analysis
This analysis aims at looking at the external factors that are beyond Woolworth’s group control
and to analyze their impacts on the corporate development of the firm.
Political factors
Political factors are critical in the long-term profitability of the Woolworths Companies
in the Australian market. The political stability of Australia is linked with the sterling
performance of the supermarket. Also, the Australian political environment provides the firm
with suitable growth opportunities in the local markets. The trading cooperation between
Australia and New Zealand motivates foreign partners and investors to show interest in
conducting business-related activities with the company. The stable market condition of
Australia has seen Woolworths realize a high rate of return on investment and success.
Economic factors
Factors such as unemployment rate, foreign exchange rate, and inflation among others are
the economic factors that determine the aggregate demand and investment in the Australian
economy. These facets play a significant role in the financial performance of Woolworths
Limited Company. According to Eslake (2007), the Australian and financial markets show rapid
economic growth. Besides, the country is sheltered against most forces of competition as

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evidenced by its remarkable trading conditions in the Food and retail industry. In this light, the
firm’s growth trajectory and high volumes of sales are determined by the Australian sound
economic environment. Additionally, the relatively high standard of living of the country and a
stable parity purchasing power of the state acts as the fertile breeding ground for the firm’s
competitive advantage in the Australian markets.
Social/ Cultural factors
For the sustainability of profitability of the retail company, identification of customers of
the needs of a target market is imperative owing to their central source of revenue (Oraman,
2014). Woolworths has identified and focused on the customer experience as part of the
framework for sustainability strategy. Through innovation and invention, the firm has availed
various means of fulfilling customer’s demand, with the preference and choice of consumers
being the driving force. Given that the modern consumers are inclined mainly to retail shopping
experience within the social context, Woolworths has introduced a wide range of food products
that are in line with the affordability of customers’ choice and budget. Store visitors have been
treated to the lowest prices on different food, liquor, and other merchandise products.
Another critical area the group has paid more attention is the location of its stores within
Australia. The convenient location of retail stores has seen the efficient circulation of food
products and improved customer services; not to mention an increased impact on the firm’s
ability to maximize its earnings (Darling, 2001). Moreover, the group has been able to consider
the current social trends in the Australian market when launching initiatives such as loyalty
programs which have been able to increase the customer base for the company (“Home Woolworths Annual Report 2017”, 2019).
The shift towards healthy eating has been one of the appeals to customers who are after
options of healthy food in the market. The company has been able to boost its grocery stores with
fresh and healthy food. Besides, the firm has altered the location of some items to portray its
focus on the choice of healthy eating. For instance, Business Tech (2015) indicates that
Woolworths removed confectionary products from counters as a step to depicting healthy
lifestyle.
Technological factors

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Modern innovative technologies that are meant to enhance the customer experience when
shopping has been the primary area of focus in Woolworth Limited Company. For example, the
use of Radio Frequency Identification in retail stores is used to read and capture stored
information on tags attached to the products (2018 Annual report, 2018; “Supply chain
technologies – at Woolworths”, 2003). T…

SOLUTION: Strategy Management – 1500 words. extra $5 is for the analytics assignment

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