SWOT analysis of Woolworths
Discuss about the Professional Change Management Of Woolworths.
Change management process in the organizations helps in improving their profitability and productivity. This process includes the range of tasks that the company needs to follow in order to achieve the company’s intended outcome.
Woolworths has provided the greatest experience to its consumers through its priority services and loyalty programs. Major changes are noticed in the subsidiary products of the Company, as they are competing hard to remain in the market. Majority of the problems are noticed in its SAP structure. The Woolworths has failed in fulfilling the customer requirement; this has resulted in changing of the employees’ structure in the company. Continuous losses in the company have caused mass departure of the senior executives of the company. Majority of the retail outlets of the Woolworths are closing due to the shortage of income in these outlets. Woolworths failed in meeting the requirement of its customers. Woolworths is famous for providing products at cheaper price to its customer, in current years the company failed on its purpose (prosci, 2018).
Woolworths is one of the Australia’s biggest supermarket chains. 1,15,000 employees, 995 stores and distribution centers to provide their customers with range, superior services operating across Australia. Woolworths is occupied thoroughly with the Australian farmers to guarantee that the best foodstuffs are available to its buyers (Woolworth Group, 2018).
They are the most innovative retailers, which invent new and simple ideas for the customer to shop. Woolworths has created Woolworths supermarket app, consumer can now shops from home or away from home by using their computer and the products will be delivered straight to their home.
Organizations have to change their strategies and operating methods for sustainability of their businesses. In this report, discussion will be based on the change management process of Woolworths” href=”https://#”>change management process of Woolworths based on the principles of the organization. This process is based on managing efforts of the employees in the organization and keeping in mind the necessities of the staff and the workers in the organization (Smartsheet, 2018). Woolworths Company is focusing on fulfilling customers demand. Woolworth’s management is changing rapidly by updating its technology and more focus on the price and the products changes. Previously, the products of Woolworths are selling only in its retail store in Australia, now the online operations of the Woolworths have started to target maximum number of customers. Essential steps for effective change management process of Woolworths are:
- Woolworths has to identify the processes, product that are not contributing to the growth of the company and has to improve its product and technology to increase the demand of the products
- For spreading its operations in Australia, the company has introduced changes in employee’s engagement processes. The company’s human resource department is employing more hardworking and dedicated employees in the company to gain its customer loyalty and increasing its customer base. The company for the success of the organizations introduces sustainable changes (project manager, 2018).
- As the demands of the products in the retail market are dynamic, Woolworths has managed the changes in the retail business, as the large numbers of substitutes are available. Involvement of employees is necessary and important part in change management process. The organization should accept the perspective of its employees about its product to remove the faults in the products (Tallyfy, 2108).
- Woolworths employees are trained enough to have the required knowledge to cope with the change. The Woolworths managers are trained towards the development of the inventory management skills (Eba, 2016).
- The manager of the organization develops a close relation with the employees or assists them in obtaining data internally.
- Proper training should be provided to the employees of the organization on how to treat the customers properly and maintaining relationship with the customer
- The project managers and the change management members that communicate the requirement of supervisors, executives and the frontline employees must develop proper communication plan. Each member has complete information about his or her role for the effective application of change in the organization (Luxury interactive, 2018).
- Woolworths needs to focus on matching its resources with the available opportunity. It should manage its resources to maintain good relationship with the customers. Continuous change in the internal policy is an effective step in change management process (Parker Avery Group, 2018).
- Woolworths current position in the market is very bad. The company is losing its valuable customers to its competitors. It is very important for the company to develop an excellent reward policy to attract the new customers and maintain the existing one.
- Woolworths customers have changed their consumption patterns. They move to more innovative services and products. Woolworths has to accept this reality and need to start modernizing.
- The company focuses on obtaining information about the customer. This knowledge will help the company in developing services and products according to the customer aspirations and desires.
- Woolworths has to provide information about its services and range of products offered in different channels. They should also provide unique facility of assistance on fashion to their customers.
- Woolworths methods and food processes are designed for a smaller business. Woolworths has to offer excellent services to its customers to stay strong in the market. The Woolworths has to apply FSC program in its operations to be more successful. This means ordering, organizing, planning and moving the food products in the finest manner so that its customers can get what they desire every time of their visit to the Woolworths retail stores (Techtarget network, 2014).
Issues of strategy Philosophy
Definition:
SWOT analysis is divided into four elements strength, weakness, opportunities and threat. It is a framework for analyzing and identifying the factors that have an impact on the feasibility on a person, project, place, and product. It is used by business entities and nonprofit organizations. It is used in the beginning of the strategic planning exercise (The Sydney Morning Herald, 2015).
SWOT analysis in context of Woolworths applied as follows:
Strength: Woolworths are the leading retail industry in the Australia. Company’s leadership quality increases their employee’s ability in developing their market potential with the use of company’s human, technological resources and the company’s presence in the industry.
Weakness: The impact of external environment condition affects Woolworths position in the retail market of Australia. Australian Government imposes restriction on the Woolworths in increasing prices for its products .This is the major weakness in obtaining higher growth levels for the company (Harvard extension School, 2018).
Opportunities: Australian retail industry shows decent growth potential and factors such as consumer lifestyle changes, increase in supply chain and computerization have all affected the potential of retailers and increases opportunities for them to grow.
Threat: higher competition with the Coles supermarket is the major threat to the Woolworths Company. Government interference is another threat to the Australian retail company
- Profits and the growth of the Woolworths are declining. The Woolworths has to cut the prices of the product in order to survive and compete with its competitors Aldi and Coles.
Woolworths has to sacrifice its income for minimum two years by improving the cost of its food and services (Shopper track, 2016)
- Stakeholders, Human resource department involvement in the Woolworths Change management process will make sure that the issues raised are solved within the organization (Tutorials point, 2018).
- Woolworths is a great retail company that maintains relations with its suppliers, customers, team members. Woolworths focuses continuously in improving its shopping experience, offer to its customers (Strategy&, 2018).
- Managing the rapid change in the retail sector is becoming very difficult for the Woolworths organization. The company wants an efficient operation. Lack of collaboration, consistency and communication across the Woolworths organizations are caused by the lack of visibility and information on the major supply chain of company. The company has to improve its communication and consistency in the organization to achieve the growth and the success (Sourcing journal, 2018).
- As the consumers, want wide variety of high quality and cheaper products to be delivered in the multiple retail outlets of Woolworths. The company should now focus on the demand of its customers and the availability of its product across all the retail outlets (Process.st, 2017).
- Woolworths has to improve its corporate social responsibility activities, as it is important for its product, labor, environment and society. This helps the company in enhancing its image and goodwill in the society (Tinypulse, 2016).
- Woolworths is now focusing on global sourcing and increases its private label products to increase its position in the retail sector market. The company is now adding more features, choices for its customers, which helps in gaining the customer loyalty and increasing the demand of the products (Strategy & Business, 2018).
- Increase in the promotional activities of the Woolworths enhances its brand image and awareness among the customers about its new product launch, new schemes and reward policies among the consumers (Harvard Business review, 2012).
- Woolworths has updated its technology both for the customers and for the employees of the organizations for the better understanding of the company policies and the complete and the precise information about its product ranges (CISCO, 2018).
Conclusion
Woolworths should focus on developing a strategy that discovers the changes in the retail business and the company’s current performance. The Barriers have been identified in the change management process of Woolworths like lack of skilled and authorized leadership in their retail stores and the lack of involvement of the senior management department. Woolworths customers are switching to its competitors. Woolworths has to develop innovative products to attract new customers and retain its old customers. The company has to produce the products at decreased prices in order to remain in the market and retain its customers and the share price of the company. This is also concluded from this report that changes in concepts, strategy, policies are essential for the success and growth of the organizations. Woolworths vision is to provide valuable services to its customers and fulfilling demand of its consumer is the goal of the organizations. Thus, a regular evaluation and constant changes in the processes of the organization is important for sustaining in the business world full of competition. Food supply chain process implemented by the Woolworths maintains its competitive position in the market. Simple and clear instructions, practical training of the organizations employees has also contributed in the success of the organization. Woolworths has also focuses on its promotional activities to create the brand awareness and the visibility of its products among the customers. Woolworths has developed many strategies for recovering the losses, surviving in the market and gaining its goodwill in the market.
References
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