An Organizations key process is to comprehend the environment in which it operates in order to understand the marketing environment and therefore take management and marketing decisions appropriately. These decisions have to make use of the organizations capacities to the utmost in order to satisfy the customer platform to the fullest.
This report tries to understand the exterior environment of an organization and how the organization has centered its marketing ideas and other initiatives on these factors and causes. Woolworths Limited is one of the major suppliers in Australia and New Zealand. By learning the inner, micro and macro environment where Woolworths operates, we have attemptedto understand the many initiatives it includes used order to cater to these environmental makes.
The various influences to a business are either controllable or non controllable. Micro environment and internal environment are the ones which can be controllable and Woolworths has generated various initiatives and ideas to cater to the forces playing out in this area.
The macro environmental forces like political, environmental, scientific are changing every day and they're not under control of any group. It is truly remarkable to see how Woolworths has generated various policies and activities to cater to these as well.
Table of Contents
Executive Synopsis 1
Table of Items 2
Introduction 3
Woolworths Limited - A snapshot 4
Audit of Internal Environment - Woolworths Limited 4
Micro Environment 5
Macroeconomic Environment - An integral concentration of Woolworths Limited 6
Political - Legal Pushes: Corporate Governance 7
Adapting to Technological Forces 7
Environmental Friendly 8
Economic Factors 8
Cultural Factors - Australia's Fresh Food People 9
Demographic Factors 9
References 10
Introduction
An organization's marketing and management decisions are affected by a lot of factors encompassing the organization. Its decisions rely upon how these factors behave. These factors could be inside the organization's control purview or could fall season beyond the same. A report of the factors is a must in order to recognize the opportunities and hazards which can impact the marketing environment of the company. These factors form the marketing environment of a business. These factors can be grouped into Internal Environment, Microenvironment and Macro environment (Kotler, 2009, p. 132).
Internal Environment consists of the factors that play within the business. Included in these are Employees, Coverage and Laws of the business, Assets, hierarchy/framework and the products and services proposed by the business. Internal Environment can be best realized by Five Ms which are Men, Money, Equipment, Materials and Markets.
Micro environment involves individuals and organizations which have a direct effect on the customers of the organization. They are near the organization and have a say on a regular basis. These would include the company itself, customers, suppliers, intermediaries, competitors and consumer which form the microenvironment impacting the stakeholders (Kotler, 2009, 134).
Macro environment is made up of political, economic, interpersonal, technological, legal and demographic factors which impact the business from exterior. These factors are virtually beyond the control of the organization but impact the way business functions, take decisions.
We can best understand the above factors and their impact on the marketing environment and management decisions of an organization is by learning a business in this context. Woolworths Small is a significant merchant in Australia with pursuits in Supermarkets, liquor, hotels, and petrol stations. It has promoted itself through various brands like Woolworths for Supermarkets and Petrol, Dan Murphy's is a liquor group, BIG W is store of varied brands and Masters home Improvement, a big retail furniture store. There are Hotels by the name of ALH group and also has a financial services firm by the name of Woolworths every day money. (Formal Website of Woolworth's, 2012)
By studying the internal, micro and macro environment in which Woolworths runs, we can understand the marketing and management decisions the company takes.
Woolworths Limited - A snapshot
Woolworth's strategy and aims, though change from each of its brand, but there are a few which are normal to the whole business like making the most of shareholder value, building new growth businesses and ushering in a fresh era of growth.
The kind of business they may be in, they know that it's an ever changing business. Customers are spoilt for choices plus they seek higher value for the money they spend. Customers are traveling the retail business and analysis of their tendencies and other environmental factors have a say in the decisions the business takes.
Woolworths is a company with strong ethics and belief in hard working culture. The business's top most executives started this company when you are in the thick of the business and in the helm of affairs. Woolworths has 450, 000 shareholders and is a very trusted company for investors.
Woolworths is very vigilant about the surroundings which surrounds its marketing management plus they not only focus on their customer platform and ways to bring them to their supermarkets but also are incredibly keenly involved in the environmental factors in order to be able to make themselves for the changing business and strategize accordingly. They have to be acting according to these makes in order to brace themselves against the very increasing competition and upsurge in the customer's idea of value and money. (Official Website of Woolworth's, 2012)
Audit of Internal Environment - Woolworths Limited
Here, we audit the internal environment of Woolworths limited through the 5Ms as stated above - Men, Equipment, Money Materials and Market segments.
Woolworths is a great spot to work and the employees are the people who drive the business enterprise and provide great services to the clients. The staff is at the stores, circulation centres and support offices to cater to the needs of our own customers. Woolworths feels in diversity at the job and provides various job options to its employees. In addition, it provides comprehensive training and apprenticeship in order to perfect the art work of servicing the customers in whatever way. The give attention to employees' benefits and rewards and recognitions leads to a satisfied labor force which in turn brings about our ultimate goal - client satisfaction.
Machinery here would be the great infrastructure they have built in conditions of the stores, large furniture stores etc. These stores are the USP of Woolworths.
Money sensible, Woolworths is growing thanks to our increasing basic of shareholders. Their financial performance has been at par with its competitors, in simple fact better than them.
Materials here make reference to the materials they use to bring forth their products which would include recycleables, fresh farm produce they grow in collaboration with farmers. Markets will be the customer market segments they serve.
Micro Environment
Internal Environment is also considered to be a part of Micro environment only. The other makes which are an integral part of the Microenvironment are the suppliers, intermediaries, customers and other marketplaces where in fact the products and services can be purchased, competitors and general public which are in essence direct or indirect stakeholders of the company like media, authorities etc.
If we speak about Woolworths and their suppliers' relationship, Woolworths is into committed partnerships using its suppliers to be able to build up a permanent and committed romantic relationship with them. These partnerships are advantageous not only to Woolworths but also to the suppliers and thus are mutually beneficial. Acting on this further, they have even created a speak up service where trade partners can report scam, problem, people or product safeness risk, top secret commissions, breach of legislations etc. All of this contributes to a value delivery to the customer in terms of services and products. (Official Website of Woolworth's, 2012)
The romance with other marketing stations like resellers, supply chain and logistics chain in between suppliers and customers is also driven by the aforementioned values of Woolworths. Woolworths has strong cooperation with Australia's leading farmers to be able to provide fresh quality food which their sole mantra.
Woolworths products are straight sourced from these farms which ensure that they continue to be fresh. There are many success reviews which highlight Woolworths commitment to the.
The above two factors - Suppliers and other market intermediaries are very important because they straight impact the way business works. Woolworths motto is to provide fresh produce to its customers, in simple fact they have even come up with a practice which is free if not fresh. This obviously states their notion in these two factors and how they have made the chain so useful by acting after them. They know that is the key to provide good products timely. Close provider relationships will be the key to endure in such a business.
Customers will be the main target of any business since this is one way they run the business enterprise. Woolworths is not any different in this regard but the methods they have got adopted to be able to react to the changing customer needs are truly extraordinary. Woolworths customer bottom is just about 24 million weekly. They serve these many customers across all its brands. To preserve such a huge base requires a lot of effort to earn the devotion of customers. There is a program called every day reward program which really is a very popular loyalty program with customers. The info collected on this commitment program is studied extensively to comprehend how customers shop, what products are needed the most, where to place them etc.
Woolworths responds to customers feedbacks and calls for the reviews very seriously. They provide a lot of time to research in order to learn what you can do in a better way to be able to bring the customer back and meet it. This feedback is taken into account, in reality as the key focus point when coming up with decisions. There is a new effort by Woolworths called as Customer talkback where there are customer focus groups held in the united states. The store team requires the feedback directly and these things go quite a distance in making our stores the best.
These initiatives for customers and their responses given very much importance has made Woolworths a worthwhile exemplory case of taking marketing decisions giving full weight time to the surroundings it works in.
By the way of above strategies, Woolworths has very effectively remaining its competitors behind.
Macroeconomic Environment - An integral focus of Woolworths Limited
Factors which make the macro-economic environment operate externally to the organization. They aren't about a specific business and organizations cannot control them. They need to enhance their marketing and management strategies in order to cope with these factors and the changes which occur in these factors time to time. These factors /makes are politics/legal, natural, scientific, cultural, economical and demographic in dynamics (Mcarthy, 2006, p. 67-69).
If we examine these factors in light of Woolworths strategies, we will have how they have molded up their marketing and management in wake of the factors.
Political - Legal Makes: Corporate Governance
Legal or Politics forces are very strong in virtually any business environment and proper adherence to regulations is crucial. Organizations procedures aspects are managed through legal ways. It is important to own legal framework set up for any business to carry out business hassle free. Politics factors create opportunities for organizations by way of various market rules but also obligate those to a certain level.
Woolworth has a proper constitution in place which outlines the guidelines and regulations of the business. In addition, it has a code of conduct, securities dealing policy, shareholders communication insurance plan etc. These regulations ensure that individuals associated with Woolworths adhere to the law.
Woolworths large business in Australia and New Zealand has been permitted due to the Australia - New Zealand Better Economic Relations Trade Contract (ANZCERTA). The political stability brought about this agreement assists with Woolworths business operations and also its shareholders.
Adapting to Technological Forces
Achieving business success through increased efficiency which is possible though progressive applications launched by modern technology is an integral emphasis of any firm. Technological forces allow instantaneous reactions. This permits fast transfer of information between your various stakeholders at various items of backward and forward in the value chain. This has been observed well by Woolworths and they have launched various special innovative applications within store as well as external to tap this feature. Woolworths introduced self check out machines which allowed customers to do everything independently (Palmer, 2008, p. 218-19). In addition they applied software which watched the business activities closely and reduced the container necks exactly where possible. (Foo, 2008, p. 178) In 2011, they have also introduced Visa's Paywave to shorten the waiting time of their customers (Budmar, 2011, p. 45).
Woolworths understand that the future of shopping is in the palm, literally. Customers favor to shop whenever they want and nonetheless they want. Mobile technology is the key to the way of shopping and this has been taken treatment by Woolworth's swift enlargement into all the settings of shopping, whether it be online, brick mortar or mobile apps.
Environmental Friendly
During the past few ages, environmental concerns have become really dominant. Impact of Production, Levels of presentation and supplier routines have emerged as key factors towards environmental concerns. Timing of products achieving the customers also offers their own environmental issues (Smith, 2001, p. 163-166).
Woolworth has considered the onus of influencing the retail resource chain to become more lasting and reduce its carbon footprints. Their Strategy of "Doing the Right thing" towards environmental concerns is actually remarkable. They have placed goals up to 2015 which range from ethical and ecological sourcing to zero food throw away to reduce the water use etc. Woolworth was the first ever to build renewable stores that happen to be like standard stores but have eco friendly ways of light, refrigeration which assists with reducing the carbon emission in line with their goals. Woolworths has collaborated with various food pain relief organizations like Food Lender and Oz Harvest to donate left products. Woolworths is also an inaugural partner of the Love Food Hate Waste Campaign.
Woolworth has also a great level of control over product packaging and works in collaboration using its suppliers to deliver eco friendly products in an friendly to the environment manner.
Economic Factors
Australia's financial factors play a great role in Retail sector and so for Woolworth's business. Woolworth operates in a acoustics overall economy of Australia and thus is free from any problems. It does take its capital budgeting decisions on the basis of interest rates, exchange rates and other economical factors which are of key importance in Australia. Economical factors also play a great role since they determine the customer's purchasing vitality and thus the complete premise of business is situated with them. Australian economy is doing good as of this moment, though a few jitters do emerged during global financial meltdown. It has not been able to affect a lot of the retail business of Woolworths and Woolworth has been quick to provide just as much value as possible to its customers.
Cultural Factors - Australia's Fresh Food People
Socio- Cultural factors constantly change, thus causing the change in beliefs and actions of any company. By associating itself to various technologies and environmental initiatives, Woolworths has responded well to such changes (Sheth, Gardner and Garrett, 2007, p. 95).
Woolworth is proudly associated with getting fresh produce to its customers by way of various fresh food initiatives such as accelerating the delivery of fresh food from farm to store, growing into new areas such as waiting for you kitchens to focus on increasing diverse preferences. This is tackled by the syndication centre at Perth which achieves Quality and Freshness by facing various logistical obstacles.
Woolworths has generated itself as a safe spot to shop and work by its aspiration of Vacation spot Zero, this means zero harm to the individuals shopping and working there.
Demographic Factors
Demographic factors such as size, thickness, location, age, love-making, race job etc related to population play a key role in marketing decisions because all these factors are related to people and folks are why businesses are run. Woolworths initiatives in any way levels are targeted towards people. They try to innovate in fresh farming, in local produce to become able to tap this demographic change which is occurring phenomenally across the world. Generational Marketing is a means forward which basically involves various ways of marketing to be able to tap the various generations resulting due to demographic shift (Kotler, 2009, p. 136).
The above talk brings us to the final outcome that Woolworths success as the major merchant of Australia can be attributed to its understanding to the marketing environment around it and basing it various strategies, decisions and initiatives on the same. Woolworths active contribution in community services and corporate responsibility shows the seriousness of the organization towards the culture. Woolworths organized environmental scanning has taken about so many changes in the manner it functions over time. Studying the various forces impacting and impacting the business, Woolworths has strived to supply the best value discount for shoppers. Woolworths philosophy of getting its customers trust by performing responsibly outside and inside is comparable to the inner and exterior environmental factors.
