This report is focused on identifying and analyzing the operations process in Woolworth, which is one of the largest supermarket retail chains in Australia. Woolworth was founded in the year 1924 and sells a wide range of products ranging from groceries to sell house hold products, health and beauty products, DVD’s magazines, stationery items pet and baby products at cheaper price in order to attract more customers. However, in recent years, there is a significant decline in the profit earning capacity of the company, the major reason for which is considered to be the ineffectiveness in its operational process. In this regard, explanation has been provided in this report regarding how operations objectives and strategies fit within the organization. Various facets of the operations process of Woolworth such as design, planning/control and improvement have been considered. Shortcomings of the problem areas of Woolworth have also been identified that considers its Supply chain management, Service process design, Forecasting issues, Demand and Capacity management, Human resource issues and Job design. Effective strategies have also been proposed in order to address the shortcomings. Finally, required resources for successful implementation of proposed strategies have been mentioned at the end of report that would allow Woolworth to gain its lost popularity and operate profitably all across Australia.
With increasing globalization, it has become inherently necessary for the business establishments globally to adopt strategies and policies that would strengthen their operations process and thereby sustain profitably among its competitors. Operations management is considered to be the most significant for managing large organizations and operate them successfully (Stevenson, Horatio & Ca, 2007). It is mainly related with the production of products and services within an organization. Various facets of the operations process such as design, planning/control and improvement are usually required to be considered in order to ensure that business operations are running effectively, smoothly and successfully with the consumption of minimum resources and sufficing customer expectations (Program, 2006). It plays a crucial role in enhancing the profit of an organization by producing professional managers who are capable of achieving the strategic goals of the organization within a considerable period of time (Paderewski, Ritz man & Mailshot, 2013).
In this report, Woolworth Supermarkets has been selected as the organization, whose operations management scenario has been discussed in details. Moreover, explanation has also been provided regarding how operations objectives and strategies fit within the organization. In addition to this, managing various facets of operations process such as design, planning/control and improvement have been described in the report, keeping a focus on Woolworth, Australia.
Brief Description about Woolworth Supermarkets
Woolworth Supermarket is one of the largest grocery/supermarket store chain which is owned by Woolworth Limited (Woolworth Group Limited, 2019). The company was founded in the year 1924 under the name of Woolworth Bazaar Ltd, later which was known by Woolworth Limited with its initial store opening in Sydney’s Imperial Arcade. Woolworth stores began to sell a wide range of products at cheaper price in order to attract more customers. The stores were first to install receipt printing cash register machines in the year 1926. However, by 1940, there was at least a store in every state of Australia (Keith, 2012). It started expanding its range of grocery along with stocking fresh fruits, vegetables and other processed food. By the year 2017, the Woolworth store along with Cokes accounted to about 80 percent of the Australian supermarket (Czerny-Thieu, 2011). The company ensures highest quality products and services to the customers that have allowed it to gain a significant position in the Australian market. Even though the stores are specialized for selling groceries, they also sell house hold products, health and beauty products, DVD’s magazines, stationery items pet and baby products. There are presently more than one thousand Woolworth stores operating all across Australia among which 976 are supermarkets and the rest 19 are convenience stores under the same brand name. They also provide online shopping and free home delivery (Keith, 2012). The customers can access Woolworth products and purchase from online which they have named it s “click and collect” service. The slogan of Woolworth is “Fresh food fresh people” that attract majority of the customers to purchase products from their stores with a belief to get fresh products (Woolworth Group Limited, 2019).
The company also offers loyalty and reward schemes in order to attract more customers and thereby maximize its revenue. Woolworth has launched shopping cards that tracks automatically the purchases from supermarkets based on which fuel discounts are calculated. The card also eliminates the retaining of paper coupons that were previously used for the purpose (Ali, Dyke, Burgess, Campus & Sol do, 2013). It also serves the company to understand the demography and provide promotions to the regular customers. There are five levels of private label or generic brands of Woolworth that include Woolworth home brand, Woolworth select,