Business Environment Analysis Of Woolworths

Background Information

‘Woolworths Supermarkets’ is one of Australia’s leading supermarket chains that specializes in the sale of multiple daily-use products ranging from groceries to health and beauty products, stationeries and even food and liquor. It has its headquarters at Bella Vista, New South Wales, and has nearly a thousand shops all across the country. This retail chain was established in the year 1924 and has been serving a wide range of customers ever since. Its products are priced at different ranges to suit the needs of a variety of customers. The company has an annual turnover of more than 50 million dollars (woolworthsgroup2018). The company also has business establishments in South Africa and New Zealand. Although the company had won the goodwill over Coles, its chief competitor on Australian soil, due to its adherence to the plastic-ban laws under Australian legal system, recent reports show that that company had incurred a huge loss of 3.5 billion in the 2018 financial year (Dludla, 2018). This loss was chiefly due to an impairment caused by David Jones group which was patronized by Woolworths.

The retail industry is one of Australia’s fastest growing industries, which has a competitive market due to the presence of a significant number of players, both national as well as international. Due to the presence of a globalized market, the players of this industry is coming up with a wide range of products to meet the customer needs, at the same time, enhancing their business prospects. In this competitive scenario, Woolworths’ financial loss acted a s a huge blow to its future business prospects.Woolworths post-tax loss of 3.5 billion was caused by the impairment charge of 6.9 billion dollars against the current carrying value of its David Jones businesses. This loss has acted as a huge barrier in the path of Woolworths’ progress especially after the company had made a profit of 5.4 billion in the previous year (Dludla, 2018). Besides, the loss was furthered by its inability to adequately match up to the demands of the South African people, especially in the clothing department.As a result of this loss the shares of the company went down by 6.8%. In spite of the problem being identified, the company is facing challenges to come up with adequate remedial measures, especially due to the magnitude of the loss.Although significant, this is not the first time that Woolworths incurred losses on such a large scale. In 2016, Woolworths was reported to have suffered an annual loss of 1.235 billion dollars, along with a decline of 40.8% from its income over food and petrol business in Australia (“Woolworths unveils $1.235 billion loss”, 2018). That was the greatest loss ever suffered by the company, until the David Jones issue sprang up in 2018. However, it is ironic how that loss was preceded by another one, that of 973 million dollars, a few months back, which at that time was Woolworths’ greatest. That was triggered by a drastic fall in the sales for over the last few months, and had resulted in the change of CEO of the company (Low, 2018). The growing magnitude of losses suffered by the company for the last few yearsis an alarming issue which the administration and management address and try to resolve as soon as possible.

External Environment

The losses incurred by Woolworths can be further analysed and by studying the environment through which the company works. This would enable the company to identify the various erroneous avenues and take remedial decisions accordingly with both a theoretical as well as practical approach.

Since the business of Woolworth spans across the entire nation of Australia, as well as, traversing the national borders, the political scenario of the countries where the business is operating is of significant concern, as it has a direct bearing on the profitability of the company in the respective market of that nation. The achievement of success by Woolworths’ dynamic and large-scale business model is hugely dependent of the diversification of the systematic risks with respect to the political environment. The policies of Competition and Consumer Commission adopted by the governments of Australia and New Zealand to reduce the level of competition for new market entrants had huge impact on the business of Woolworths (Woolworthsgroup.com.au, 2018). In spite of such threats, the management has been proactive in the use of strategic measures for the company to thrive in an increasingly competitive market.The political regulations and legislative decisions significantly affect the tariff, the control over the quality of groceries and other products. The taxes imposed by the government, for example those by the Fair Works Commission, impact the business model of the company (“Fair Work Commission | Australia’s national workplace relations tribunal”, 2018). Besides, the political stability is hugely important for the business venture of Woolworths, as the reverse would result in frequent protests and political turmoil where there is a risk of property damage. Political stability is also important in the context of Food & Staples Retailing sector. Frequent encroachment by government bureaucrats and regulation of policies, especially those pertaining to industrial safety, trade regulations, pricing and product labelling, would have a direct impact on the business of this company.The level of corruption is another determining factor for the successful business of such a large business. Bribery may destroy the goodwill of the company. The legislative policies regarding the wage, working hours, and employee benefits also impact the net profit of the company.

Although Australia and New Zealand, the two major business settings for Woolworths are economically stable, the economy of South Africa comparatively stands on more volatile grounds thereby risking the business of Woolworths (Potelwa, Nyhodo, & Ntombela, 2016). As mentioned earlier, a significant amount of loss incurred by the company came from inadequate business in South Africa. On the other hand, the interest rates of Australia are low, which allows people with a fairly large amount of disposable cash, which they can invest in shopping from large retailers like Woolworths. Thus the country’s economic index works in proportion with the purchasing power of the consumers, which directly influence the business of companies like Woolworths. However, effect of failure of Woolworths on foreign grounds may lead to reduction in the rate of employment on home soil, thereby affecting the business of the company. There are certain other major economic factors which has a direct impact on the business of Woolworths, like changing rates of inflation, interest, foreign exchange, and the entire economic cycle determines the total demand and supply rate of the company (Battilani, Balnave, & Patmore, 2015). A correct assessment of these factors can help the company to forecast its growth rate in an increasingly competitive environment. The economic policies under Food & Staples Retailing and their changes are also factors that Woolworths should pay adequate attention to (Morioka, Evans, & de Carvalho, 2016). Woolworths must also be concerned about changes in currency rates and changing values of the currency both in the host country, as well as the foreign markets. Woolworths should also be proactively concerned about raising majority of its capital from local markets, where it has a flourishing business. A comparative analysis of the productivity and the labour cost is also required and it acts as a determining factor for the implementation of economic strategies by Woolworths. The respective skill-set of the employees, as well as the infrastructural quality also directly influence the profitability of the company

Political Factors

The society and culture of the locations where Woolworths has business establishments is extremely important. It determines the choices of the customers and in turn, drives the company to manufacture and design its products in a balanced format such that their needs are catered, and at the same time, new offerings are also proposed. The quotient of unanimity in the beliefs and attitudes of the consumers is a huge driving factor for Woolworths in this context. Woolworths should take into consideration the nuances of demographic patterns. The class structure of the population and the existing pattern hierarchical relationships and power politics are essential social markers for development of an efficient business model canvas (Govender, 2017). The cultural issues like social conventions and gender roles, along with level of education act as determining factors. Besides, the attitudes and interests of the people towards health and environmentare also important. Another key factor which can hugely determine the performance of Woolworths is the present of a spirit of entrepreneurship, as an enhanced presence of this attitude would help the company to draw a lot of fresh talents including migrants, which would improve the productivity (Wright, et al., 2016). However, the economic factors related to employment and revenue generation is also important in this situation, as a perfect balance between the two would greatly increase the profitability of the company. Woolworths should also remember that there is growing trend among consumers opting for companies that adheres to various programmes of corporate social responsibility.

Recent technological developments have had a huge impact on the operations and business of organizations all around the world. The use of various innovative IT (information Technology) tools raise the competitive edge has become a common phenomenon. Woolworths has also made adequate use of technology in many of its functions. It has made use of the technology of green refrigeration for the storage of perishable items. The company has also implemented cost-effective machines which has made payment transactions easier for the customers. Besides harnessing these recent technological mediums into its business model, Woolworths must also consider the disruptions that might arise from the use of technology and have adequate resources ready to tackle the same. Technology also has a direct impact on the demands and offerings made by the company. Hence, the structures of cost as well as value chains are hugely dependent on the use of technology.

Australia’s legal framework is friendly enough for retail companies like Woolworths. However, it is the foreign markets which are more poses the maximum amount of threat in this regard, especially that of the company’s intellectual property rights. As such, a near-accurate evaluation is extremely important to compete in a hostile foreign market. Policies pertaining to taxation, employee recruitment and management constitute the basic legal framework which a retail company like Woolworths must take into account. Problems arise when these policies conflict amongst the governments of various nations where the company has an establishment, or change in the government of the home state. The legal framework also takes into account compliance with the necessities of food licensing and its associated regulations, which is extremely important for a retain company like Woolworths whose major part of business constitute groceries and food items. The quality of the available food must comply with these regulations. New establishments or any new undertaking which are directly related to the interest of the consumers also require legal assistance. Woolworths must keep track of the Anti-Trust laws pertaining to the Food & Staples Retailing industry (Kobel, Këllezi, & Kilpatrick, 2015).

Economic Factors

Maintenance of the environmental standards is extremely important for a huge retail company like Woolworths. It can have a direct impact on the profitability of the firm, especially through the establishment of a more psychological bonding with the customers, when they come to know that they are doing business with a company which maintains high eco-friendly standards by adherence to the environmental laws, thereby preventing environmental hazards and leading to a better world. In the retail industry, the environmental factor is largely dependent on the use of eco-friendly business practices and participation in activities that aims to reduce environmental depletion. The major environmental concerns for a company like Woolworths are – changes in the climate, laws pertaining to environmental pollution, recycling and waste management, use of renewable resources and use of eco-friendly products (Sullivan, & Gouldson, 2017). In the recent past, Woolworths have attained the confidence of a huge number of people by conforming to the ban of single-use plastics (Zhou, 2018). The company has also been active in the reduction of the wastage of natural resources and the use of carbon footprints. Moreover, the company also adheres to corporate social responsibility by engaging in sustainable use of the natural resources, recycling and processing them efficiently.

The internal analysis seeks to study the effectiveness of the various strategies and decisions taken by the company. A SWOT analysis would further help to understand the industry specific factors that affect the decision-making process of Woolworths, which had already been discussed somewhat in the company’s reaction to the external factors.

Woolworths’ chief strength is its goodwill and huge brand equity in the local Australian market, which has made it one of the top competitors in this industry besides Coles. The company has a huge market presence with almost a thousand established shops. The wide range of products offered by the company serve a variety of customers, although their main target remains the wealthy class. Efficient use of business analytics tools helps the company to keep track of its customers and strategize promotions accordingly (Wang & Tan, 2015). Value propositions are ensured and entry-level prices are kept minimal with respect to the industry standards, which enables in gaining a strong foothold in the market. Woolworths makes deft use of the online platform for business and e-commerce. Its expertise lies in the establishment of balanced segmentation of its income. This helps in regulation of pricing and promotional policies of the company. The company intakes diversified employees who are highly skilled in their respective fields, and adequately look after the interest of those employees, thereby preventing burnouts.

Social Factors

Woolworths often indulges in collaborative works or patronizes small firms whose detailed activities are not always recorded and kept a track of. This shows the presence of loopholes in the operation of the company’s audit committee. In spite of a flourishing home market, the company fails to understand the needs of sustenance on foreign markets. It is an amalgamation of these two weaknesses that had cost the company the greatest financial loss ever, in 2018. The removal of Woolworths’ Australian CEO John Dixon in the recent past on grounds of redundant salary also indicates unjustified distribution of salary among the higher authorities, which in turn, may point towards a certain level of corruption within the company (“Woolworths parts ways with Australian CEO John Dixon”, 2018). Besides the frequent financial losses in the last few years also indicate poor auditing and calls efficient financial restructuring.

The opportunities of Woolworths are mainly aimed at finding out ways to make up for the huge financial losses that the company has be suffering from time to time, as well as finding out ways to stop those losses from taking place. Aggressive promotional techniques by use of adequate resources and further investments in the field of Corporate Social Responsibility may expand the customer base of the company, and increase their loyalty quotient. The retail business has an emerging market in developing countries of South-East Asia, which are neighbours to Australia. This provides Woolworths with the opportunity of tapping these foreign markets which are open to new changes in their respective markets. Although the company uses social media for business and promotional purposes, there is still room for engaging the more with the brand and establish connection with both national as well as international stakeholders (Grimmer, 2018). Efficient use of IT tools, especially those related to Big Data Analytics can help Woolworths cut down on its losses and strengthen its business prospects. Woolworths is also engaged in sustainable development activities in South Africa (Luiz, 2016).

Competition in the home market, especially with Coles, another leading player in the Australian retail industry, constitutes the major threat to Woolworths’ business. This threat is furthered by the similarity of many products and store locations of both the companies. As such, there is a constant war of pricing similar products between them, without hampering the quality of the products. Lowering of price directly affects profitability. The promotional techniques are also conflicting, for a greater share of the market than the other. Woolworths also faces stiff competition from New Zealand’s leading retail company ‘Foodstuffs’ (Bailey, et al., 2015). Heavy competition in two of its most prominent markets may significantly affect the market share and business of Woolworths. A difference of culture also impacts Woolworths’ business, as happened in South Africa. Besides, government intervention in the regulation of Woolworths’ businesses so as to provide opportunities to new market entrants posed a significant threat to the profitability of Woolworths. An increasing health consciousness affects the methods of shopping. As a result of this growing awareness, the demands of the customers are changing towards more organic products which are free of chemicals, making it imperative for the supermarkets to change their product portfolios (Wu, et al., 2015)

It has been found from sources that the grocery industry has been increasingly developing employment opportunities for several people in Australia. Therefore, several individuals have been hired for managing work in the variety of stores located in diffident parts of Australia. From the above external analysis, it has been seen that the industry of supermarket and grocery has improved the rate of GDP in Australia and has triggered increased economic developments. Apart from these, life trends have also changed based on the changing demands.

According to the current Australian Bureau of statistics, it has been found that it is the retail and supermarket industry that is framing the current Australian economy. In this context, in the year 2015, the retail grocery industry has contributed almost 2.2% increase in the GDP (Mahmoud et al., 2016). In this context, Woolworth is facing high competition from international supermarket outlets such as Aldi, Walmart and Coles in Australia.

In this context, it has been seen that Woolworth has 40% of share in the Australian market, Coles has 30% of the share and rest of the shares are dominated by the independent groups (Van der Voort, 2014. However, viewing the current market situation it has been observed that Aldi and Walmart have aggressively entered the market with an intention to expand their presence in the market by opening more stores each of the years.  Cole’s supermarket as well has gone a radical change in the business decision model with a low price high volume strategy to compete with Woolworth.  In order to understand the decision making the following framework are as followed:

• Supply chain:Wools worth despite using a high-class supply chain and competitive edge that has been developed through growing perioddotime.The company faced a problem in their supply of hardware chain that led to the loss of almost $3 billion revenue into nearly 63 stores across Australia (Dobele et al., 2014). The supply chain began to put extra financial pressure on their new CEO.
• Branding and marketing:It has been seen that Wools worth placed its newly opened stores with a slogan of:“The fresh food” thereby creating a differentiated image of quality and standards to beat their competitors. They reestablishment their marketing campaign for adding values for their stakeholders by boosting the growth for expanding the share of the market, in addition to this they also have new and innovative media with a integration of slogan “ The Voice: in order to accelerate leadership in their food and beverage products.
• Innovation: In case of innovation in their strategies and product, Woolworth has to incorporate several projects consisting of refresh and new idea program in their petrol retailing (Saeidi et al., 2015).
• Integration: The Company has vertically integrated some of its production by manufacturing its own output for increasing the supply power in the market and for responding towards the private trends.

The company has various value-creating activities:

Inbound logistics: In this context, they tend to use their own centre of the distribution. As a result of which they are able to take advantage of procuring bulk quantity thereby limiting the cost price thereby taking advantage of the supply in the form of discount.

Operational processes: Wools worth maintains a farming operation from where they are able to supply fresh products with reduced cost from their root level.

Outbound supply chain: In the case of outbound facilities, the company uses in-store vendor quality management process for ensuring the standards and quality of the product.

Sales and marketing: The Company spend a high investment in addressing marketing along with the increased amount of sales on promotion and branding.

Apart from these, Wools worth has continued to contribute towards economic and employment growth across the region of Australian that is closely associated with the effectiveness of decision making and development of the approved framework. In case of decision making and planning the company aims to grow on a network of high class retailed offering to frame the requirements of the growing population that are highly reliant on the sufficient land made resources (Epstein, 2018). However, Wool’s worth supermarket operation offers an illustration of the changes in the retail market format that are taking place in the current years.

In case of customer-oriented decision making the organisation is highly focusing on healthy eating and growing customer’s concerns towards the organic foods. It has been seen that there is increasing demand for growing customer preferences on the basis of food purchasing and packaging of food and non-food items as well (Young et al., 2015). This type of issues is more evident in the areas where supermarkets are open for an expanded house.  

Based on these changing trends of customer and purchasing oriented decision making, Woolworth has planned to market a network of large home changing outlet for particularly addressing the demands made by the customers that offer the unique range of competitively priced home improvement in terms of product and services (Nyberg & Wright, 2016). In this context, the company has also expanded the size of their stores with the introduction of BIG W stores with an increased number of innovative products.

In order to fulfil the changing demands of the customers, Woolworth had to recognise and develop larger packaging of land for the establishment of the new store and refurbishing the existing stores. In this context, it has been seen that there is a social experience that is also involved in influencing the physical grocery stores (Girard & Girard, 2015). For instance, it has been seen that there is a significant increase in the cost of labour and in the timethat is engaged in offering online shopping. Therefore, to manage these growing issues Woolworth has taken significant steps to enhance their decision making and build strategies to fight within the competitive environment.

According to Smith Ross & Whiley, (2016), the business model of the organisation helps to illustrate the rationale of their decision making process and their business strategy. This is because it is their absence of the ability to deliver effective profitable and sustainable strategy of conducting business they have major losses in their business production. In order deal with the existing challenges, the company has taken a new business model that operates within seven major departments, Woolworth clothing and general merchandise that are inclusive of clothing, accessories and other lifestyle products (Singh-Peterson & Lawrence, 2015).

The company has develops a Woolworth logistics stores named as David Jones that is a department store, country group Roast that has a witchery group and Woolworth financial services including financial services and products (Apriliani, Anggraini & Anwar, 2015). Apart from these segmented divisions within the organisation, the company has also adopted a competitive pricing and business strategy to focus on target customers within the dynamic environment. 

Bargaining power of the buyers

In the Australian retail industry, it has been seen that the consumers have a wider variety of products and services to opt from. Therefore, it is due to the huge availability of supermarkets and retailed outlets that help to provide the necessary products to the customers while providing the buyers with high power to bargain. The existing supermarket industry of Australia consists of the various international market operating locally and internationally with companies such as Coles, Aldi and Walmart (Too & Weaver, 2014).  The company has faced a high loss due to the significant poor performance in their transformation approaches in David Jones, owing to these losses in ta their shares fell down to 6.8% (Bayne, Schepis & Purchase, 2017). As a result, consumers are placing their power over their choice to shift over to other organisation.

Therefore, considering the homogenous nature of the products it is evident that the bargaining power of the company products is extremely high in this industry except for the stores that are confined within a specific market.

Bargaining power of the suppliers

In case of product supply, the bargaining power of the supermarket in Australian retailing industry is seen to be varying deepening on the brand popularity and on the size of the supermarket. However, the retail market is extremely competitive in Australia with a number of significant share of the market where Coles has 30% of the market share in comparison to Woolworth that has 40% of the share market (Alrazi, De Villiers & Van Staden 2015). Almost all the companies in Australian within the Food & Staples retail industry tends to buy their raw material from various suppliers.

Therefore, suppliers have a dominant position that can decline the profit margins of the company and can limit the earning within the market.  In this context, powerful suppliers in supermarket, grocery retailing industry uses their power of negotiating to extort high cost from the organisation in their grocery retail field (Singh-Peterson & Lawrence, 2015). However, the overall influence of the high supply bargaining power is that it may minimise the overall influence of the profit of food and staples retail.

Steps to tackle the bargaining power of the supplier:

• Woolworth can take effective steps to improve their supply chain by building multiple supplier networks.
• The company can experiment with innovative designs for the product with the help of different materials. Therefore, in case if the prices go high for one of the raw resources then the company will have the opportunity to shift to other company.
• Woolworth can also establish dedicated suppliers whose business are reliable on the organisation. In this context, one of the major lessons the company can learn from Walmart and Aldi is the way by which they established third-party producers whose business is fully dependent on them (Fayezi, Zutshi & O’Loughlin, 2015).  Similarly, Woolworth as well can create a scenario where the third party producers have less power of bargaining in comparison to the competitive companies.

The emerging organisations that are entering the grocery retail industry are facing difficulty due to the dominating presence of the international company in Australia. Therefore, the threat of new entry can be considered to be lower for the Woolworth Company. However, the new entrance of Aldi with an exclusive opening of stores has impacted the profit margin of Woolworth.

However, it has been seen from sources that new emergence in food grocery industry brings innovation by building new ways of managing business thereby causing pressure on Woolworth (Ferreira Rebelo, Santos & Silva, 2014). Therefore, through a low pricing strategy, reduction of costs and manufacturing new value proposition for the customers.  Therefore, Woolworth needs to manage all these threats while building effective barriers to protect their competitive advantage.

• Woolworths can innovate new products and services.  Creation of new products will help them to retain increased customers and allow them to give their existing customers an appropriate justification to purchase their products.
• The company can build the high scale of economies for reducing the fixed cost for each of the unit.
• The company can develop capacities and spend high investment on conducting research and development. By doing so, the company can develop a barrier for new entrants in the market and by restricting them to enter within the dynamic industry (Apriliani, Anggraini & Anwar, 2015). This process will help Woolworth limited to reduce the loss faced by the company by the opening window for making extraordinary profits thereby discouraging the new entrants into the industry.

The major competitors of Woolworth are Cole supermarket, Aldi, Walmart and Costco. These companies, usually compete within Australia for gaining high share from the market, and this makes the level of rivalry high in Australian retail industry, these growing competition is increasingly influencing the profit margin of Woolworth (Yamoah et al., 2016). The profitability of the company has slowed down due to the fact that some of the wool worth regular customers of Wool worth are now shifting their choice towards the competitor’s stores. Therefore, it is evident that the existing players within the market are making the rivalry intense while driving down the prices and fall down of the profitability of the grocery industry.

• Wool worth is required to develop a sustainable strategy of differentiation to compete with increasing cost leadership
• The company as well can  develop a scale to improve their competition
• The company can build a partnership with the competitors for expanding the size of the market (Xu, Gao, & Hammond, 2017).

These are products like grocery variety that can serve a substitute purpose with the existing marker. However, in Australia substitute products are easily available.  In order to tackle this substitution of product, wool worth has incorporated diversification in their service and has delivered their customers with an opportunity to select from a variety of products (Soosay et al., 2016). Apart from these, the Company has also adopted a pricing strategy in Australia with differentiating strategy to win over the customers.

• They can develop a service-oriented structure other than product oriented framework’
• The company can increase the cost of switching for their potential customers (Grimmer, 2018).

Conclusion and Summary 

From the above external business environment of the Woolworths company, it has been that the company is operating within a dynamic business environment that has become a challenge for the company. Apart from these, the company has faced major losses in business owing to the poor decision making and designs of the company. In this context, it has been found the company has reported a major loss of $1.235 billion and 40.8% of fall down in their revenue share owing to its Australian food and petrol business.

Apart from these, it has been there is growing competition within the Australian market that is slowing down their level of productivity as well as profit. Focusing on these, declining condition, the company has taken some effective decisions to reduce the impact of FY17 results with a necessary rebuilding framework.

However, the company has significantly managed to improve their sales over the year with comparative growth of sales in their fourth quarter that has been driven by strong comparable and transactional growth. In order to address 40.8% representing the declining sales driven by the primary investment and decline of the items of each of the basket, the company has taken significant strategies to priorities the customers and by integrating effective business decision.   

By doing so, the company is trying to regain back its competitiveness with the improvement of customer metrics and sales exchanges while making the customers aware of their investment in lower price, enhanced service with the provision of fresh fruits and enhance in-store experience and by enhancing team involvement.

From the PESTLE analysis of the company, it has been seen that the company has been running at a high loss due to various legal political, economic and environmental factors influencing their business. In this context, from the study sources, it has been found that the company has face high negative impact due to increasing government launching of a campaign that intended to block the international companies in the market.

Apart from these, the growing changes in food and retail commission policies are increasingly influencing the business activities of Woolworth. In case of technological factors, it has been seen that technological and growing innovation in Australian company is posing competitive threats for the company. However, in order to develop their technological and social trend, the company has also used green refrigeration technology in their operations to overcome their weakness.  

From the SWOT analysis, it has been seen that the company has high strengths and opportunity in expanding their market as they are a most leading company in Australia. Threats challenges such as emerging market, growing competitors, fluctuating rate of the economy are disrupting their concurrent business objectives. However, in order to consider all the challenges and problems faced by the company they are successively taking relevant steps to mitigate the impact of challenges.

Therefore, it is evident from the study that the dynamic growth of the industry has allowed the company to take strategic plans that are strongly inclined towards the short as well as long-term organisational goals. Moreover, it is the unfavourable environmental metrics that has provided a high challenge for the company that influenced the profit of products. Therefore, the international company is struggling hard to anticipate an increase in profits.

However, the fact is that some of its customers have shifted towards cheap competitive products for which they are facing threats of being substituted by other products.  Apart from these, the company is highly committed to confirming that their consumers are offered to the appropriate products and developing a healthy working environment for the employees that are factors that may contribute towards the success of the company.

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