Woolworths

1 What economic factors impact on the business?

Competition: Increased competition can pressure businesses to innovate. For
Woolworths, competition from other retailers such as Coles, Aldi is a notable factor
because has captured a signification share.
Engaging Customer: Gaining and maintaining consumer trust is critical.
Woolworths needs to show itself as a company that is innovative, respectful and has
good product quality to attract more customers. Attract more customers.
Financial performance: Economic indicators such as revenue growth, gross profit,
and inventory are all important. For example, Woolworths reported rising sales but
falling gross profits in the 2018-19 financial year, highlighting challenges in
managing costs and margins.
Input costs: Fluctuations in input costs due to economic conditions can affect the
financial burden on buyers and companies.
Data Collection: The collection and use of consumer data can impact competition
in the market. Concerns have been raised about the amount of consumer data
collected by supermarkets such as Woolworths, which could potentially be used to
restrict competition.
2 What social factors impact on the company
Inclusivity and Diversity: Woolworths aims to become a truly inclusive workplace.
This approach helps attract and retain more customers, increasing income.
Health and Wellbeing: Woolworths invests in good welfare for its staff. This not
only improves employee satisfaction and productivity but also positively impacts
the company's image.

Community Engagement: Woolworths actively participates in activities to attract

more customers and enhance the company's brand image, such as providing $1
million for school construction projects.
Climate Change Strategy: Woolworths has a Human Rights Program and works
with fruit and vegetable suppliers to benefit each other. This commitment to ethical
sourcing and human rights can influence consumer perceptions and purchasing
decisions.
3
Economic cycles can significantly affect Woolworths. For example, during an
economic downturn, consumers may cut back on spending, which could lead to a
decline in Woolworths' sales. During periods of economic growth, consumers may
have higher incomes and be more willing to spend, potentially leading to increased
revenues.
4
Changing consumer tastes could really impact Woolworths. For example, there has
been a consumer shift due to the COVID-19 lockdowns, leading to overstocking and
past expiration dates.
5
Plant-based meat alternatives: Woolworths has a range of plant-based meat
alternatives. These products are designed to mimic the taste and texture of meat,
making them a great choice for vegetarians and weightlifters.
Cooking and baking substitutes: Woolworths also offers a wide range of cooking and
baking substitutes, especially for ease of use and convenience.
6
Fresh produce: Woolworths offers a wide range of fresh fruit, vegetables, and herbs.
They source this product from local farmers and suppliers to ensure freshness and
quality.
Meat and Dairy: Woolworths offers a wide range of meat and dairy products,
including beef, chicken, pork, fish, milk, cheese, and yogurt.
Bakery: The bakery section at Woolworths includes bread, cakes, pastries and other
baked goods.
Household items: Woolworths also sells a variety of household items, such as
cleaning supplies, toiletries and pet food.
General merchandise: In addition to food and household items, Woolworths also
offers general merchandise, including clothing, electronics, and stationery.
Woolworth wants to provide items that meet customer needs.
7
Woolworth's competitors are many such as Coles, ALDI, Metcash, Walmart, Harries
Farm.... Including 2 big competitors for Woolworths that are Coles and Aldi.
Coles: is a developed company, it holds a significant share of items in the Australian
market.
Aldi: is a supermarket originating from Germany, but it has reached and grown
amazingly. When providing quite quality products such as Aldi Deli Originals, Fresh
Traditional Style Hommus, Aldi Logix Platinum Dishwashing Tablets.
8
Woolworths is a well-known company in Australia, so it is quite easy for it to
penetrate new market items, not only within Australia but also internationally. For
example, penetrating the Chinese market, if the cooperation is good, can penetrate
the markets of other countries.
9
Woolworth is an oligopoly market structure.
10
Product Strategy: Woolworths offers a wide range of products such as vegetables,
meat fruits, packaged products and grocery products, DVDs, even medicines.
Pricing strategy: Woolworths tries to maintain prices that are similar to or slightly
higher than in the market. Sometimes there are some discounted items, but what
attracts customers is that the membership card when buying the item will earn
points for discounts.
Location and distribution strategy: Woolworths currently operates 1000 stores in
Australia. Some stores operate as Safeway stores in Victoria, Melbourne. They also
operate through an online platform and recently developed a mobile app for online
purchases.
Advertising strategy: Woolworths believes in creative marketing and has come up
with a number of plans to create and maintain its brand visibility on YouTube,
Facebook, etc. The company uses newspapers, radio stations, magazines,
newsletters, billboard advertisements, to create its own brand.
11
Constitutions are the rules and principles governing their business. It has been
proposed and approved by shareholders at the Annual General Meeting of
Shareholders (AGM) and has been amended several times
A Risk Management Policy is a Group Risk Management Policy that outlines their
overall approach and principles to be applied in relation to risk management. This
Policy applies to all relevant Business Units, Business Areas, Contractors and Third
Parties working for or with the Woolworths Group
Industry Standards: Woolworths seeks to adhere to all relevant laws, regulations,
legislation and Codes of Conduct as applicable
12
At Woolworths they set their own sourcing and responsible standards. These include
compliance with local laws, business ethics, and various labor and social standards.
These regulators apply to all their partners to uphold human rights and improve
supply chain sustainability. Furthermore, Woolworths' corporate governance
framework commits to sustainable growth and shareholder value.