Retail business across the world is often cyclical and has to undergo extensive exercise of adjusting with the market situations and changing customer demands. Woolworths in Australia is facing a tough condition of declining sales and profits in the market and is trying to figure out the next strategic move. The business climate is rather more conservative and is recovering from the after effects of the financial crisis, and has embarked new drive of understanding the market and the consumer to match up to their expectations (Lee, 2013).
Woolworths, an Australian consumer goods retailer, will be discussed in this report. Woolworths is facing declining sales, mounting losses, and losing customer confidence, all these perpetuating into escalating profit erosion and hardening of the way by which profit and sales can be regained. The company has multiple stores across the country, and intellectual partnerships with other multinationals’ in different countries through which it gains royalty fees.
The context of this research comes from the current condition of Woolworths, which demands an immediate rectified action pushing it out of the downward fall. The impact is legendary on the company, increasing number of demotivating employees, perpetual sales decline, no creative power to offer a strong solution and inability in many ways of arresting the overall decline. These impacts demand an action that will fix the problem and re-establish its earlier position of market dominance.
Business Problem and Research Objective
The research problem is the ambiguous nature of the identification of the real or prime reason for Woolworths declining sales, where the most assuredly assumed reason is about weak customer satisfaction.
Woolworths, in this position is strong enough to admit it that the prime reason for the current issue are poor execution of strategies designed for correcting their current condition and poor systems designed for executing the strategies(Mitchell, 2016). The prime research area consist of the factors that makes the company lose existing customers, experience declining sales, and the consistency in perpetuating losses without any impact of arresting the declines. The company though admitting poor execution of its internal strategy and poorly designed systems for strategy execution, there remains other areas to be understood which plays a major role in the company’s overall decline.