The Report gives the insight of Global Financial crisis and its effect on Australian Retails Markets and
Supermarkets. Particular the Impact of GFC on the one of the second largest leading independent
supermarket, FOODWORKS during the period of 2007-2009 and examines the impact of the Global
Financial crisis on the performance of the company. The global financial crisis brought with it very
many challenges. Some were controllable while others were uncontrollable. Foodworks being the
second largest Independent supermarket in Australia faced many difficulties during this period.
Financial aid from the government made recover all the industries, in the span of three years these
companies survived and came into profits, and government took appropriate steps to stimulate and
come over the crisis.
BACKGROUND
FoodWorks is one of the most leading retailer market, groups of Australian United Retailers Limited
which was started in November 2004 and later formed as a Food Works Supermarket group Ltd and
the member Australian National Group which is the main competitors for Woolworth, Iga, Coles, and
Aldi. FoodWorks is the second largest leading Independent supermarket in Australia. The Annual
Turnover is excess of $2 billion in retail level. Its Operation more than 650 stores and having franchise
nearly 400.The main Headquarters is in the state of Victoria. The only one supermarket in Australia
which is different from every store to store and have strong
ustralian groceries market was very fragmented during the 19th century and was typically solely operated, region specific and served a very small community. Improvements came about in the 20th century with the development of supermarkets which provided one stop shop for its customers (Deloitte, 2012). The supermarket and grocery sector is a major contributor to the retail turnover of Australia, (Alexander) with revenues in excess of A $ 80 Billion in 2013-2014 contributing to a little over 7% of the economy while the grocery industry alone contributes approximate 20% of that of the supermarket and the grocery sector. The industry also employs well over 280,000 people (Tonkin, 2014).
Anti-supermarket campaigners have a counterclaim that the big four abuse their dominant position in the marketplace and restrict
New South Wales, Victoria and Queensland are the regions contributing over 75% of the 18.9 billion industry revenue. Westfarmers (Target and Kmart) and Woolworths (BigW) are the two largest companies competing on low-cost strategies (Porter, 1980). Myers and David Jones, holding 15.3% and 10.5% market shares respectively (Figure 1), compete on differentiated strategies targeting the upper consumer market (Porter, 1980). Over 10% of the total working population are employed in this industry (Productivity Commission, 2011).
By 30 June 2009, the company currently has 123 stores in Australia and New Zealand and management has
(http://www.thegrocer.co.uk) In recent years Tesco have moved away from being a primarily food retailer and have now started
In North America, the biggest competitor of GFS is Sysco Corporation. Sysco is ranked number 1 in food service supplier with 9600 delivery vehicles
Woolworths is a supermarket chain situated within Australia and New Zealand and is owned by Woolworths Limited. Established in 1924, as a single basement store in Sydney Australia, Woolworths has become the largest food retailer within Australia,
Woolworths is a conventional supermarket owned by Woolworths Limited. It started as a basement store in Pitt Street in 1924, and is now one of the leading competitors in the supermarket business. With over 850 stores in Australia, and 110,000 Woolworths staff, they provide
Woolworths is the major supermarket grocery store chain in Australia, owned by Woolworths Limited. Woolworths is an incorporated public company, listed on the Australian stock exchange. This company has incomplete permissible responsibility through its shareholders and lies in the tertiary industry and retail sectors. Through their authoritative organization strategies and processes Woolworths has been able to make available to its 1.3 million customers a level of service, expenditure and manufacturing available across their franchise stores located across Australia. Woolworths' function as one of the largest public companies is obvious through its nature of management. This report will explain the nature and responsibilities of management in light of Woolworths.
The Australian Supermarket Industry is the very hot topic that’s why very interesting topic now days. The Australian supermarket and grocery stores have a very severe competition in Australia mainly because of organizations competing in this mature industry are going towards cost reduction initiatives with competing advantage rather than product differentiation strategies, In other words business in this industry increase market share by charging lower prices while making reasonably fair profit. The growing popularity of ALDI – German based company of introducing its own label goods (products manufactured and sold under the retailers own brand) with low cost has forced the two giants –Woolworths and Coles to cut price
The UK supermarket industry resembles an oligopolistic industry, with several characteristics. Oligopolistic markets tend to be characterised by high concentration ratios, barriers to entry and…Since the turn of the century, the industry has been scrutinised by both the Office of Fair Trading and has been referred to the Competition Commission on two occasions. (Seely, 2012)
The company had ambitious objectives with their own retail units, having as an objective to open three hundred stores, but the company realized that retail stores were a distraction to management making harder to focus in their core business and damaging the relationship with their main retailers, making clear that the company was struggling on creating profits in products that were not part of their core business, the strategies and objectives needed to be adjusted in order to turnaround the decrease in sales and profits of the
Woolworths supermarket is an Australia’s supermarket and grocery store chain owned by Woolworths Limited which was founded in 1924. They operate
Understanding the Impact of the Global Financial Crisis: An Examination of One Company's Performance Indicators
Due to the consequences of the recent financial crisis, the company has observed a significant decline in the investment activities of its clients all over the world. These consequences brought negative impacts to its financial performance.