INDIVIDUAL ASSIGNMENTSWOT ANALYSIS OF WOOLWORTHS
The assignment constitutes the analysis of the internal and external conditions and development of a chosen organization. The organization chosen here for the analysis is a retail organization that operates in Australia, namely Woolworths. The aim of this analysis is to identify the organizational development the company has been able to achieve. The organizational analysis will be done through the employment of the analytical tool SWOT. An analysis in the case of the organization will be done in order to identify the capability of the organization in addressing and utilizing the external changes that impact any company. Further, recommendations with justifications as per the outcome of the analysis will be provided within the assignment. The assignment is going to include implications of the principles and the theories in relation to the organizational development in order to recommend the best suit alternative for the company. In the contemporary business settings, the application of the change that is relevant to any organization as well as this company will also be implied within throughout this assignment.
Background of Woolworths
Woolworths is the largest Supermarket chain in Australia that was found in 1924 that with its revolutionary technology of advanced refrigerating and transport in the then time. The revenue of this organization in the financial year 2016 was AU$ 59 billion. Woolworths collectively with another supermarket chain that is ‘Coles’ owned 72 % of the $82 billion grocery store. As of now, the company is diversified in different types of products that include products, services, food, liquor, fuel chemical, insurance and many more subsidies as well. The company owns dominant position within the industry along with issues in the recent years that are internal weaknesses as well as external threats. An analysis will help in the better understanding of the achievements and development of the organization as well its future scope by the proper utilization of the opportunities. As of now, the company operates with 202,000+ team members with 77, 000 young team members. The total sales of Woolworths are 2017, $55.5 billion with the implementation of several Corporate Social Responsibility strategies and commitments to the year 2020.
SWOT analysis of the company:
The SWOT analysis is a tool that is very crucial for any organization to identify the strengths, weaknesses, opportunities, and threats (Bull et al. 2016). In the organizational as well as strategic analysis of any company, this tool is very helpful. The SWOT analysis is thus presented hereafter:
Strong brand value: The brand image and the brand value of the origination is highly established being the pioneer in bringing technology to the retail sector.
Goods rerun on expenditure: the revenue streams that have been built by Woolworths is very well established that has helped the organization in achieving many projects successfully and thus generating high revenues form the different types of ventures it started and pioneered in.
Supply chain and distribution strong: The supply chain and the distribution network of this retail company is the very string that persists worldwide in different locations. The majority of the potential markets have been reached by Woolworths (Gunjal, 2017).
Highly skilled workforce: The trained and highly killed are is one of the very crucial strength that is worth mentioning since, the collaboration and the huge number of teams as well team members as mentioned above plays a very significant role in the execution of the projects. In the training end development of the employees, Woolworths is seen to invest financial resources in order to achieve the most out of the human resources. The organization has been able to include in its workforce 50% of women has implemented Unconscious bias training that includes pilot training programs that are rolled out among groups (Woolworthsgroup.com.au.2018). The gender pay parity is also reduced within the organization to less than 0.5%. The organization aims at developing a workforce that is diverse enough to handle the diverse customers of the company which is why they keep a proportion of the indigenous workforce in every outlet of the company.
Reliable suppliers: the suppliers of the organization are reliable owing to the management of the relationship of the company. Woolworths have been able to build community with the suppliers irrespective of being local and international (Woolworthsgroup.com.au.2018). The relationship with the dealer is also well developed that makes the whole community of external stakeholders of the company very strong.
Utilization and application of resources: The utilization of the all the types of resources within the organization is very strategic that includes waste management techniques, minimization of the carbon footprints and implementing cost-efficient ways of reducing the cost of packaging that is eco-friendly as well (Woolworthsgroup.com.au.2018).
Lack choice in relation to the competitors: Gap ranges in the products offered by the organization than the competitors of Woolworths provide more options in the same market for the customers.
Lack of capability in handling the challenges from the new entrants: The organization has lost small market share owing to the lack as mentioned above. There is no internal feedback system from the sales team in order to address these challenges.
Lacks in the segmentation of the products: The marketing of the products that are not directly related to the retail industry is very low. In terms of sales of the products are successful but the marketing will lead to the competitive advantage of the organization.
A higher rate of missed out opportunities is witnessed since the organization lacks the expertise in the forecasting of the demand for the products in the market. This is affecting inventory management of the organization which is poorer in relation to the competitors of the Woolworths (Woolworthsgroup.com.au.2018).
The day's inventory of this organization is high that is marking the company raises more capital investment in this channel. This is surely affecting the growth of the organization on a long terms basis.
Late entry I the online market f this industry resulting in the lesser experience of tactics and lower prices as well (Woolworthsgroup.com.au.2018).
Promotional and marketing activities are great opportunities which can bring the organization yet another dimension of success provided that is effective and strategic as well.
The government free trade agreement is yet another opportunity that is going to provide the organization entry to the new markets.
The procurement of the products of Woolworths by the green drive of the government that as has opened up opportunities for the organizations.
There have been new trends impacting the behaviour of the consumers that includes the inclination to the use of technology for the purchase of goods. The organization has been pioneering in the use of technology. With further interventions, the company may give customers the convenience of using technology and providing them with trending products and services as well.
The acquisition of new target customers through the online channels. The company is still weak in this but with this is an opportunity which needs to be utilized. This is going to provide the organization with new revenue streams.
The lower shipping price is yet another opportunity that can yield revenues for the organization making the cost of the products lower. This is very crucial for the achievement of gaining the competitive advantage within the market.
Cost of the raw materials: The cost of raw materials both in terms of food and non-food products is increasing that is the threat to the company in yielding the margin profit from the business.
Recession in terms of economy: an Economic recession is already impacting all the markets that are going to be the threat to the business of Woolworths as well since the buying intention of the customers will be lessened no doubt.
Huge competition from the international companies:
No innovative products: Supply of innovative products on a daily basis is lacking that is leading to fluctuation in the sales of the products (Gunjal, 2017).
Changing consumer behaviour: The consumer behaviour is changing these days that is the threat to the structure and system of operation to the organization (Gunjal, 2017).
Lawsuits of various markets: There is a continuous fluctuation in the standard of the products in markets where the laws are different owing to different geographical areas.
New environment regulations: There are regulations form national and global authorities in relation to the eco-friendly business activities that are expected to be carried out by the organizations (Gunjal, 2017). These laws could be the threat to the products of different categories in which environmental issues may be faced by the organization.
Analysis of the issues contextual to the case
The core principles of the organizational development are highly crucial for the organization. The organizational development aims at the improvement of the processes in all ten sections and all levels of the organization within the organization (Bolden, 2016). This includes the following:
Setting goals: The organizational goals are always set at the very beginning of the venture. However, the organization like that of Woolworths has to bring in changes or improvise the organizational goal as per the requirement for the development of the organization. There is no need to change the basic core organizational objectives but the need to improvise them is very important. The basic goals that very organization must possess include the increased productivity, better profitability, better performance, improved employee, and others. Woolworths possess all of them that are working as strength for the company which is evident from the SWOT analysis done above.
Development of the employee: the development of the employees is very necessary in order to increase the productivity and the sales of the organizations (Weindling & Pocklington, 2017). The employees need to be related to the aim of the organization and determine the organizational development as well. This is because they are the ones who are to carry out all the activities in the different sections and level. Therefore, this particular principle is directly related to the organizational development that counts for the training of the employees, technical proficiency of them, problem-solving, creativity and many more. The development of the employees is also taken care of through a number of organizational policies within Woolworths. However, the feedback of the employees or rather the employee involvement is not very prominent within then company leading to the hierarchical structure of the organization.
Restructuring: For continuous organizational development, it is very important to keep on restructuring the organization whenever required though not very frequently. Often, organizational development consultants are called in order to carry out the restructuring plan of the company (Benn, Edwards, & Williams, 2014). This is required for any organization in order to be internally strengthy enough to be able to face any kind of external changes that are threatening to the company (McLeod, 2017). This is carried out by the managers or the leaders but the consultants are often hired to keep away any kind of biases that ventures to the excellence of the organizational development only with no personal benefits. These include the formation of the new work team, changes in the reporting structure of the employee, movement of employees in different areas rather than making them work in the constant department only, reassignment of the activities in various departments is also crucial (Peck & Davidson, 2017). As of these principles of organizational development, the restructuring of the company is not yet done by Woolworths which is going to make the company more dynamic (Waniganayake et al. 2018). This may be because the company wants to operate is on the safe side but then no progress or improvement internally can take place.
Change management: this is one of the most crucial principles of organizational development. The companies that have been able to carry out the essentialities of change management are highly dynamic and worth giving the competitive edge to the competitors as well. The principles of OD (organizational development) that are mentioned above are required to be done as per the changes that threats the company externally (Johnson, 2016). The companies that fail to go for the management of the change either externally or internally, or either of the two needs the Organisational development training. Resistance to changes within the company is an issue where the workforce struggles the most since the processes and the system of the operational activities in the different functional department changes (Lewis, Passmore & Cantore, 2016). This is where the managerial qualities and the leadership approaches of the manager of the different team are required in order to make the employees motivate. The workforce management by the company Woolworths is excellent till date, with new commitments for workforce development and CSR initiatives as well. However there have been no huge changes as to the change in any process which does not testify the ability of this company in the change management (Doppelt, 2017).
The factors that are mentioned as threats above may not be threats provided that the organisation is able to make plans and strategies that are worth channelizing the threats as opportunities. For instance, the threat from the environmental laws may be transformed into the opportunity by improvising the organisational policies in relation to the business system. This will make the company profitable in two ways. The first is execution of the Corporate Social responsibility and the second is going to be the generation of internal monetary resources by carrying out cost effective activities for the business process. The threat in relation to the lawsuits of different market can be tackled by modulating the organisational polices and processes as per the particular market. The changing consumer behaviour must be taken up opportunity rather than challenge and the services must be designed in a way so that the consumers are satisfied. This may require changes within the organisation, but that is going t be very crucial for the OD of Woolworths. The competitive edge is a weakness that can be also transformed into strength provided that the organisation is effective in the execution of the changes and implying the core principles of OD. The changes that are recommended need to manage in order to achieve organisational development of Woolworths so that the factors that are appearing as threats can be lessened with internal capability and skills of the organisation.
It is very important for any organization to comply with all the principles of organization development that are mentioned above in order to maintain the already achieved sustainability, be able to address to the market changes and achieve organizational development as well. Through the SWOT analysis, the internal issues re well surfaced which needs immediate notice and mitigation as well. The threat are external which cannot be mitigated or removed but can be minimized with proper strategies and gaining competitive advantage. Organisational development is always on a dynamic mode and the managers or the leaders of any organisation has to keep on measuring the level of standard in the execution of the processes in types different levels of organisation that is well aligned with the extremely market forces as well. As discussed above, the market as well the consumer behaviour is very dynamic these days which is the reason any organisation gas to be dynamic enough in planning strategiesd in order to keep the organisational development on dynamic mode as well.
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