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L/616/1526 Discuss Key Challenges That Woolworths Australia Faces Project Unit 21 HND in Hospitality Management

1513 Downloads I Published: 19 May ,2020

Main Body:

The Key challenges that Woolworth Australia faces in current business environment:

Woolworth is an Australian supermarket/grocery store chain in the nation which owns wide range of retail business sector. From the current competitive scenario of business, it has been seen that, the business is facing of multiple key challenges in current business environment which is as following:

Discount pressure: The cost pressure comes as supermarkets are slashing prices to attract customers more. Business owner has said that, the current level of discounting in Australia's grocery sector was unsustainable in a market that was also under pressure to pay big increases in fixed costs. Inflation rate of country is increasing year by year, so it generated big issues to the business for offering retail and grocery services at cheaper rate (Lawrence, Richards and Lyons, 2013). So its administration team facing big challenges to furnishing of discounting to its customers in market as per their requirement. Numbers of competitors running in the market and offering products at cheaper rate.

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Competition: Competition is one of the biggest challenges for Woolworth supermarket organisation, the business is facing extreme level of competition in current business environment, because of multiple numbers of foreign companies are entering in Australia's retail industry at higher rate and offering retail services in market at lower price base. Which affecting the sales of Woolworth organisation industry in negative way. So this is one of the most key challenges of the business.

Knowing the inventory: The grocery store manager must understand the inventory inside and out of the stores. There are numbers of grocery and retail products and services are offering by Woolworth organisation in its stores in Australia. So it is creating big challenges to its managers to maintain proper productions inventory in business and serve them in store in respective manner (Kew and Stredwick, 2017). Knowing inventory of all products can assist them to managing them at its specific location in stores.

Customer demand: Customer's demand is also increasing key challenges in the industry. It can be said that, numbers of grocery products are increasing in rapid form in nation and demand of new and innovative products are also raising up, so arrangement of new products and services from different-different countries has become bug challenges for Woolworth organisation. It is also increasing expenses of the firm which makes negative impact on profitability of it.

Operation management challenges: Operation management is one the key challenges of each business. In case of Woolworth business, its current scenario defines that, in case of increasing in its staff and stores in Australia, it is facing difficult task to managing its all operational activities in industry (Gitman, Juchau and Flanagan, 2015). Some key operation management challenges which I, time & attendance system is time consuming and it is required to manual intervention. In addition to it, some proper management of technological equipments and keeping fresh all stores, maintain standard of business and also furnishing retail products and services in respective form. Hence, it can be said that, all these above mentioned key challenges facing by Woolworth organisation in current business environment in Australia.

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  • Lawrence, G., Richards, C. and Lyons, K., 2013. Food security in Australia in an era of neoliberalism, productivism and climate change. Journal of Rural Studies, 29, pp.30-39.
  • Kew, J. and Stredwick, J., 2017. Business environment: managing in a strategic context. Kogan Page Publishers.
  • Gitman, L. J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson Higher Education AU.
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