Strategic management



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McKinsey 7S Plus model in strategy implementation 

Structure: To achieve its mission of empowering all Australians to 'Live Big For Less,' the operational team at Woolworths Group diligently pursues effective means to turn around the company (Woolworths Group, 2021).

Strategy: Woolworths Group has a cost-leadership culture because it is dedicated to selling high-quality goods at affordable prices (Riesenberg, 2019).

Systems: Woolworths Group is committed to this goal by establishing a customer- and store-centric culture and providing them with high-quality tea. Moreover, the firm has focused on becoming a lean retailer via the implementation of the end-to-end process and systems excellence, developing its Beverages business to provide greater value to customers, enabling its portfolio companies to pursue strategic initiatives to effectively produce shareholder value, and so on.

Skills: Woolworths must maintain and expand its strategic partnership amongst its fundamental businesses. In addition, it is advised that Woolworths couple the agreement with a rewards scheme to boost income and client acquisition.

Style: As part of its strategic initiative, Woolworths Group has been advised that it must commit to a culture of continuous innovation. Due to its cost-leadership culture and expertise, Woolworths may look into other cost-leadership initiatives to further reduce overhead expenses. The 'just-in-time' approach can help the business in this regard.

Staff: The core ideas behind changing organizations centre on the coordination of the management team's efforts with those of the company's employees and other personnel (Riesenberg, 2019). The recommendations might also imply that Woolworths should prioritize bolstering its assistance from highly-skilled personnel over providing them with more training and development mechanisms relating to the company's clientele.

Shared values: Woolworths needs to revise its low-price strategy if it wants to survive in the sector's cutthroat competition. Woolworths may boost its prices since customers are willing to pay more for excellent items, which would help it achieve its goal of becoming customers' first choice (Woolworths group, 2021). Woolworths could also adopt a fair price strategy to meet customer demand for reduced prices and demonstrate cost leadership.

Two strategy implementation issues

  1. Losing customer loyalty

Woolworths has an issue with customer churn, which hurts the company's annual sales income and bottom line. Due to the rising cost of living, consumers have reduced their spending on non-essentials in favour of necessities like food. Some shoppers, for instance, are switching from beef to cheaper sources of protein and from fresh veggies to cheaper frozen and canned options (Edmans, 2021). The management of Woolworths uses a rewards approach that places a premium on customer loyalty programmes. 

  1.  pressure has increased

Woolworths Group should look forwards to securing effective profitability for the firm by not sacrificing quality but rather concentrating on novel approaches to meeting the needs of customers in light of the growing pressure on profit margins and related strategic direction. Woolworths Group is a strong parent house corporation that aims to serve consumers fairly by preserving openness with the customer section (Edmans, 2021). The company is also a valued business partner to thousands of local farmers and manufacturers.


Edmans, A. (2021). Grow the pie: How great companies deliver both purpose and profit–updated and revised. Cambridge University Press. /books?hl=en&lr=&id=DGlHEAAAQBAJ&oi=fnd&pg=PR17&dq=Edmans,+A.+(2021).+Grow+the+pie:+How+great+companies+deliver+both+purpose+and+profit%E2%80%93updated+and+revised.+Cambridge+University+Press.&ots=wf7NWXmaMI&sig=q6JoBnW1HwZN82QPbS-kCae6Ywk&redir_esc=y#v=onepage&q=Edmans%2C%20A.%20(2021).%20Grow%20the%20pie%3A%20How%20great%20companies%20deliver%20both%20purpose%20and%20profit%E2%80%93updated%20and%20revised.%20Cambridge%20University%20Press.&f=false

Riesenberg, D., Backholer, K., Zorbas, C., Sacks, G., Paix, A., Marshall, J., ... & Cameron, A. J. (2019). Price promotions by food category and product healthiness in an Australian supermarket chain, 2017–2018. American journal of public health109(10), 1434-1439. /doi/full/10.2105/AJPH.2019.305229

Woolworths group. (2021). Our purpose and key priorities. Woolworths Group Limited.