woolworths case study

In accordance to the annual report of Woolworths Limited 2016, the current accounting practice that is applied to the business regarding its inventory disclosure includes; a perpetual inventory system which continually updates the information by increasing or decreasing inventory from reports throughout the year to verify accounting records (Bragg 2016). A perpetual inventory system in comparison to a periodic inventory system is more efficient and effective for larger corporations. With entities like Woolworths, many transactions occur between themselves and other stakeholders, so by utilising a perpetual inventory system, it saves time and also money (Woolworths 2016)

Establishing itself as an Australian brand, can be seen as iconic in the local market.

As the leading discount retailer in the United States, WalMart (NYSE:WMT) has consistently shown an exceptional ability to master the complexities of logistics, supply chain management, retailing and pricing management. The WalMart supply chain is among the most advanced and sophisticated in its use of analytics and information systems globally, often computing pricing variation and analysis literally overnight based on satellite uploads of information (WalMart Investor Relations, 2013). WalMart has also successfully taken a capital-intensive business model and transformed it into a retailing business capable of generating high profitability from low margin products based one efficiency alone (Zhu, Singh, Manuszak, 2009). WalMart is also one of the most-researched companies in the world, and continues to provide in-depth financial data on their Investor Relations site (WalMart Investor Relations, 2013). The purpose of this analysis is to evaluate the mission, vision, and overall strategy of WalMart and also define three objectives for improving the organization's financial position, showing how the objectives defined relate to the mission, vision and strategy of the company. In addition for each objective, meaningful performance measures are provided in addition to defined expected level of performance as well. For each of the objectives chosen at least one new

SUPPLY CHAIN MANAGEMENT: Effective supply chain management is one of the most important operational strategies that allow company to enjoy sustainable competitive advantage. More than the manufacturing expenses the distribution costs are high. If a retail firm has a proper supply chain management it can cut down the cost and have a competitive advantage of providing goods at lower cost. The cross docking concept that was introduced by the Wal-Mart was one of effective concept.

If focusing on the retail industry it involved, such as Coles supermarket, the main competition comes from its countpart, Woolworth. Coles and Safeway are the two main retailors in Australia as analysed by Inside Retailing organisation in Australia. Australia’s retail industry has developed to become a leading industry in the national market as well as in the world market. As this article indicates, all entities in the retail industry confront pierce competition. Also cited in the article, a 1966 issue of trade magazine Inside the Food Industry observed that: Woolworths and Coles are now nearing 10% of total Australian retail sales. They are opening more stores than anyone else. Up until now, this figure can be much bigger than 10 percent; and the competition between retailers is increasingly intense.

Cole is an Australian supermarket with large influence and market share in the country. In addition, the company contributes significantly to the nation’s economy. In essence, the company has acquired more than 30% of the market share of the supermarket industry in this nation. Specifically, the company’sproduct line consists of daily products, grocery, meat, deli, fresh produce, bake house, cigarettes, liquor, apparel, general merchandize and over head products. Notably Cole has a culture of low price as its marketing strategy of attracting and retaining customers.

Coles is an Australian Supermarket chain owned by Wesfarmers. It is a retailer of food, liquor and convince in Australia. There are more than 102,000 team members across all brands including Coles express, 1st choice liquor superstore, Coles and Bi-Lo supermarkets, liquor land, vintage cellars and spirit hotels.

Bunnings is the market leader in this industry who gains 64% of total market share, followed by Mitre 10 with 13.0%, and Masters with 8.0% of market share (The Australian, 2016). The company’s revenue continuous increased since they started the business in 2011 to 2014, they gained total revenue around $1527 million in 2014 (Woolworths, 2015) but the company still got the loss from their operation expenses. Moreover, the sales dropped by 16% in 2015 that was the main reason for Lowe’s to delist the joint venture in the beginning of 2016 as it claimed that Masters has poor profit performance (IBIS, 2016). In the meantime, Woolworths publicised its intention either to selling the business or shutting it down (ABC, 2016, para. 15). Thus, there are several causes of these problems that Masters should solve in order to survive in this business and compete with its competitors.

To develop such strategy mix of strategic options will be applied including Integration to deal with competition and Intensive + Diversification strategies for product and market development.

The following report will investigate the Australian retail/grocery supermarket Woolworths and its parent company Woolworths Limited. This report will explore the success Woolworths and its contribution to the Australian economy.

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.

On the other, although the majority of the information shown in the case study presents arguments for the fact that it was inevitable that Woolworths would fail as a business, it is also shown that the company was once a reputable company and generated high levels of consumer demand through the customer being able to buy “pick-n-mix sweets, a DVD, a magnifying headlight and a cheese grater “ in the same store. The revenue generated within the first six months of 2008 was £1107 million, which suggested that the firm was able to sell efficiently to an extent. If the financial department at Woolworth’s had evaluated the balance sheet and income statement from previous years, they would have potentially been able to minimize the risk of the high expenses, reduced profit margins and overall prevent the administration of the company that occurred in 2008. This point therefore indicates that it was not entirely inevitable that Woolworths would fail as a business, as measures could have been carried

“We are on the cusp of exciting change in retail as we enter the new era where the customer is in charge. But far from being daunted by change, I firmly believe it brings opportunity for our business, our employees, our suppliers and of course, our customers. You just have to look for that opportunity. Woolworths is leading this shopping revolution in Australia and there’s a lot more opportunity still to be realised.”

To provide quality product, extensive menu of delicious foods, ensure customer awareness and loyalty and also have good publicity.

The primary purpose of this business research report is to estimate the relevant disclosure form the latest annual report 2016 regards to PPE and whether these disclosures satisfies the CF 's objective and qualitative characteristics. This report examines and assess on how the PPE fulfills the requirements of AASB 116 and the qualitative characteristics. Results shows the PPE are mainly meeting the requirement of AASB 116. However, some detailed disclosure information on PPE need to be more comprehend and I believe it will give you a final termination.