...product range, is Woolworths diluting its vales proposition? Value proposition is a promise to be delivered by the company to the customer, a statement that summarises why a customer should buy their products. The CEO of Woolworths has stated clearly that their products will add more value on the basis of “quality, innovation, freshness and unique placements”. This value proposition is in line with the company’s strategic plan of providing good quality products, superior packaging and excellent customer relations. Woolworths has adopted a differentiation strategy, whereby it is out-competing its competitors based on these qualities. Thus in order for this company to continue having a sustainable competitive advantage over its rivals and continue to serve its niche high income and the newly discovered middle-income (Black diamonds) target markets, this strategy needs to also be maintained. For a company and its strategy to successfully compete, the company must continually scan the environment it operates in, ensure that its strategy is aligned with that environment, and ensure that the company has the capabilities to execute the strategy. Woolworths scanned the environment and acknowledged that the global economic recession was severely affecting its target market spending power and were as a result, loosing business to competitors like Pick ‘n Pay and achieving lower profit margins. Thus by lowering its product prices and adding more product lines, Woolworths ensured that their...
Words: 572 - Pages: 3
...Marketing Management (AMN442) Assignment Introduction Masters Home Improvement is the trading name of an Australian Home Improvement chain, operated by a joint venture between Australian Retailer Woolworths Limited and Mooresville, North Carolina (United States) based hardware chain, Lowe's.[2] Masters was created as a way for Woolworths Limited to crack into the hardware retail space, which has been historically dominated by Bunnings Warehouse, which is owned by arch rival Wesfarmers. The two companies already compete with each other with groceries and general merchandise. The brand name was announced on 2 May 2011,[3] coinciding with the launch of a website at masters.com.au.[4] Hans Hulsbosch, who has designed brand identities for Woolworths & Qantas designed the Masters brand and logo.[5] The first outlet, located in Braybrook, Victoria, opened to tradesmen on 31 August 2011, and the general public on 1 September 2011.[6] In the Sydney Morning Herald, CEO Don Stallings is attributed as saying that staff will be trained for at least 100 hours, and the stores will offer over 35,000 products.[7] Ways in which Masters will differentiate from its competitors include stores which are more brightly lit, more colourful with polished concrete, large colour signage and store displays, it aims to place more emphases on attracting female shoppers, buzzers scattered around the store which when pressed, will send a nearby staff member to that location to help out a customer,...
Words: 2133 - Pages: 9
...COMPANY PROFILE Woolworths Limited REFERENCE CODE: 2FF5536D-6BA6-4CE5-81DF-4EABB0A5A391 PUBLICATION DATE: 8 Jul 2014 www.marketline.com COPYRIGHT MARKETLINE. THIS CONTENT IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED OR DISTRIBUTED. Woolworths Limited TABLE OF CONTENTS TABLE OF CONTENTS Company Overview..............................................................................................3 Key Facts...............................................................................................................3 SWOT Analysis.....................................................................................................4 Woolworths Limited © MarketLine Page 2 Woolworths Limited Company Overview COMPANY OVERVIEW Woolworths Limited (Woolworths or 'the company') owns and operates retail stores that sell food, liquor, fuel, general merchandise and home improvement products in Australia and New Zealand. It is headquartered in Bella Vista, Australia, and employs more than 197,000 people. The company recorded revenues (excluding financial income) of A$58,921.7 million (approximately $60,506.7 million) during financial year ended June 2013 (FY2013), an increase of 6.9% over FY2012. The operating profit of the company was A$3,594.6 million (approximately $3,691.3 million) during FY2013, an increase of 7.4% over FY2012. The net profit was A$2,259.4 million (approximately $2,320.2 million) in FY2013, an increase of 24.4% over FY2012. KEY FACTS ...
Words: 2473 - Pages: 10
...Resources 10-11 8. Budget 11-15 9. Risk Management 15-16 10. References 16-17 1. Introduction Woolworths is one of the largest retailing companies in Australia. It deals with food and staples. Mr Grant O’Brien is the Managing Director of this company. It holds 190,000 employees across Australia and New Zealand. As it is one of the largest companies in Australia although it’s not a manufacturing industry, it’s indirectly impacting on the environment by producing CO2 through its operation by consumption of electricity and wastage product produced through its day to day operation. By taking this in mind, we decided to work under Woolworths and help it to reduce its carbon emission that is affecting the environment and community as a whole. Therefore, our project will be focused on reducing the impact of carbon emission that is emitted from the day to day operation of Woolworths. 2. Project definition Project “Hello Green” will be fully committed towards the green. Therefore this project will be taking substantial steps to address to today’s emission by reducing the energy uses, focusing on recycling and reducing its carbon footprint as per the standard set by the Australian Government that will be helpful in reducing its overall cost of operations. * To assist Woolworths in maintaining sustainable business. * By assist in reducing energy consumption. * By assist in reducing garbage and waste product. ...
Words: 3456 - Pages: 14
...Executive summary This individual project is designed for a comparison study of two well know Australia companies that is Billabong international Limited (BBG) and Woolworths Limited (WOW). The report is briefly introduced those two companies’ core business and the name of their subsidiaries. Subsequently, the report provides statistics for instance like market capitalization and PE ratio based on the share price at 10th January 2013 for both companies through the Australian securities exchange website. More importantly, this report will figure out the working capital of each company in several years in order to common on trends of working capital within the company operation. Plot will be also used to illustrate the changes of those ratios in each company. Finally a general comment of each company’s operation will be made depend on the ratio information of those companies. Part 1: About Billabong international limited (BBG) was established in 1973 on Australia’s Gold Cost by surfer and surfboard shaper Gordon Merchant and his then partner, Rena. BBG Limited’s core business is the wholesaling and retailing of apparel, eyewear, accessories, swimwear and other product distributed through board sports. The company is distributed through 100 countries which Australia, North America, Europe, Japan, New Zealand, South Africa and Brazil are those countries which the company generate the most revenue from. The principle subsidiaries are “Von Zipper”, which specialized...
Words: 2023 - Pages: 9
...1. By dropping prices and increasing product range, is Woolworths diluting its value proposition? Woolworths is not diluting its value proposition by dropping prices as they still intend to deliver good quality products, superior packaging and excellent customer relations. They still intend to deliver on that promise and ensure that the consumer prefers its products and services above their competitors in the long run, thus maintaining the key to a sustainable competitive advantage (Hough, 2011). In the case study the divisional director for foods, Mr Julian Novack, mentions that because they carry a large portion of own-brand products, they are able to exert greater control over the prices by optimising the production process and reduce the input costs. Woolworths consulted with its suppliers to find ways to reduce pricing on their products and reviewed its entire supply chain, reducing unnecessary packaging, improving their logistics and also keeping an eye on price of commodities such as wheat. By making effective changes in their value chain Woolworths is able to increase the value delivered to their...
Words: 757 - Pages: 4
...5.1.2 Analysis of Results The calculations seen in Tables 3,4,5 show the answer for local retailers in the lower north shore for products that Coles and Woolworths carry. It can be noted that the answer of local retailers illustrates that there is some price-taking ability exists, but will not be able to follow the price maker due to the low prices that Coles and Woolworths sets for their products. They cannot be price makers due to the inability to be able to earn enough profit as a result of the costly payments made to suppliers due to the lack of influence over their suppliers. They buy smaller quantities of their products and thereby pay a higher price per unit and cannot earn from economies of scale due to their small size. This forces...
Words: 723 - Pages: 3
...variety of groceries line. Countdown has over 160 supermarkets across New Zealand supported by over 18,000 team members. The company delivers customers a choice of more than 20,000 different products in each of stores. The first Countdown supermarket opened in Northlands, Christchurch at 31 December 1981. This business was established by Rattrays Wholesale and gained momentum through the 1980s. The Rattrays Wholesale Group included the Rattrays Cash and Carry warehouses, tobacco vans, now known as the Red Arrow Distributors fleet, and the SuperValue group of franchised supermarkets, now operating as SuperValue/Fresh Choice. Countdown is part of Progressive Enterprises, a subsidiary of the publicly-listed Australian company, Woolworths Limited. In addition to Countdown, Progressive Enterprises is also the franchise co-ordinator for the Fresh Choice and SuperValue banner groups. Countdown works with over 800 food producers and suppliers throughout New Zealand. In-store teams are supported by four dry grocery distribution centres, three fresh produce distribution centres, two meat processing plants, one seafood processing plant and a central support office. Q2---a – internal environmental factors Strength 1. Strong Marketing and advertising teams. Countdown has excellent marketing plans that promote their products in various forms. For example discounts, TV promotions, door to door leafleting, in-store promotional activities (e.g. spending X dollars in exchange...
Words: 1478 - Pages: 6
...Growth Plans Woolworths' current business growth plan is built on four key strategic priorities. 1. Extend leadership in food and liquor 2. Act on our portfolio to maximise shareholder value 3. Maintain our track record of building new growth businesses 4. Put in place the enablers for a new era of growth A Changing Business Retailing never stands still - that’s what makes it so exciting and dynamic. Right now we’re in a period of substantial change as customers seek greater value and have more choices at their fingertips than ever before. Customers are now firmly in the driving seat of our business and their decisions and shopping behaviour are changing the way we operate. Woolworths is responding to this new era by laying the foundations for a new phase of growth and opportunity. We put the customer at the heart of our business, listening to what they want and creating new and innovative ways for them to shop with us. The future of shopping Customers now have the ability to shop when, how and where they want and that ability is literally in the palm of their hand. Mobile technology is rapidly changing how we view our world and giving us access to products and prices from around the world. We’ve recognised we need to keep up and understand that customers want to move seamlessly and effortlessly between physical and virtual stores to shop in a way that suits them. Every Woolworths business is becoming multi-option by using websites, mobile apps, virtual stores...
Words: 1368 - Pages: 6
...Company Overview: The organization we choose for the research and our group report writing is Australia’s most popular retail industry Woolworths. We choose Woolworths supermarket on of the brand of the Woolworths Limited Australia. Woolworths limited is well known retail giant over Australia and New Zealand. Woolworths started its first business in city of Sydney by opening its first store in the basement of Imperial arcade in 1924.Current stage Woolworths operates many of the retail brands like Big W, Woolworths, Dan murphy, Cell master, BWS and many more. And it serves 2.4 million customers a week (Woolworthslimited.com.au, 2014). We choose Woolworth’s supermarket located at North Ryde in Macquarie centre, which is known as the store of destination of Woolworths. Store is located inside the Macquarie centre. Store is very popular store because of its largest fresh department with onsite production of the mood. This retail store can be taken as the largest organization where this store operates 24hr work including while trading and while closed. Store has 287 staff including casuals and part time and 14 salaried managers. Store weekly sales are 1.7 million dollar average and daily operating hour is 8 am in the morning till 10pm. One of our group members does works in the Woolworths supermarket store Macquarie centre. According to his experience and analysis during the working hours in that organization he was concerned and focused in the Larger number of employee has been...
Words: 294 - Pages: 2
...Woolworths Limited Business Model [pic] 7241MGT Business Process Models Major Assignment Semester I, 2005 Abstract The firm selected for this project is Woolworths Limited which is an Australian leading retail company made up of a number of businesses all providing the customers with quality, range, value and everyday low prices. Woolworths is built on a passion for retail, attention to detail, working hard, ensuring the safety of their valuable customers and people, and having fun. Woolworth’s mission is to deliver to customers a better shopping experience - each and every time. The project initially carries out preliminary business analysis where it recognizes the market structure and describes the value chain in that industry segment that earns the companies income. Further analysis has been done about the changes that have been done in this segment in past two decades. Also the challenges Woolworths faces from its competitors are described. It identifies Porter’s five forces model influencing the company viz. Substitutes, Rival groups, Buyers, Sellers and Potential New Entrants. The project has done the strategic analysis of the industry’s current position and identified the likely challenges Woolworths may face in the near future. It also studies the various risks which has impact on the company such as “Cyclical risk”, “Policy...
Words: 2909 - Pages: 12
...Woolworths Limited overview Woolworths Limited (WOW) is a diversified retailer, which operates supermarkets, general merchandise stores, liquor, specialty and discount department stores. WOW operated under retail banners that include Woolworths, Safeway, Woolworths Liquor, BWS, Dan Murphy's, Big W, Foodtown, Langtons, Cellarmasters, Countdown, FreshChoice, Croma and Supervalue. In June 2012, WOW operates 1,033 supermarkets under the brands Woolworths and Safeway in Australia, and Countdown in New Zealand; 11 supermarkets under Thomas Dux brand in Sydney & Melbourne; 599 petrol outlets of which 132 are co-branded Woolworths/Caltex; 329 liquor stores under several banners including Dan Murphy's, BWS, Cellarmasters and Langtons; 172 general merchandise stores under the brand Big W; 15 and 21 home improvement stores under the Master and Danks brand; and operates 294 hotels under the ALH brand. WOW also provides financial services to its customers such as credit cards, prepaid credit cards and epump under the Woolworths Everyday Money brand. In 2012, WOW recorded an increase of 4.8% in revenues to AUD52,129.8 million and gross profit increased by 5.7% to AUD14,476.3 million. Net profit fell by 15.1% to AUD1816.7 million this was due to losses associated with the divestment of its wholesale and retail consumer electronics businesses. WOW is rated A3 by Moody’s and A- by Standard & Poor’s. Key Executive Staff Ralph Waters Chairman Ralph Waters was appointed...
Words: 678 - Pages: 3
...ABSTRACT In this valuation report, we will analyze the performance of Metcash and Woolworths (Australia) in the past six years from 2007 to 2012 and make some forecasts in order to aid investors in making decisions about investments between these two companies. Two methods of DCF valuation and relative valuation are used during the analysis. Firstly, we estimate FCFF with calculated WACC to determine the two companies’ stock price, comparing their actual current stock price. Secondly, we analyze P/E Ratio, P/S Ratio and EV/EITDA Ratio to make a comparison between the two companies and average industry. Our estimation will show that both Metcash and Woolworth are undervalued and suitable for investment 1. Overview : Metcash Limited(MTS) and Woolworths Limited(WOW) 3 1.1 Metcash Limited 3 1.2 Woolworths Limited 3 2. Metcash DCF valuation within FCFF approach 4 2.1 Weighted average cost of capital 4 2.1.1 Cost of equity 4 2.1.2 Cost of debt 4 2.1.3 Capital structure analysis 5 2.1.4 Effective tax rate analysis 5 2.2Estimation of FCFF 6 2.2.1 Growth rate expectation 6 2.2.2 FCFF and present value 6 3. Woolworths Limited DCF valuation within FCFF approach 7 3.1 Weighted average cost of capital 7 3.1.1 Cost of equity 7 3.1.2 Cost of debt 8 3.1.3 Capital structure analysis 8 3.1.4 Effective tax rate analysis 9 3.2 Estimation of FCFF 10 3.2.1 Growth rate...
Words: 2467 - Pages: 10
...With these developments, it is obvious that conflicts between parties of different nationalities occur and liability to tax on income of foreigners especially among those engaging in trading venture. Whilst the laws affecting domicile and residence may be sufficiently settled, it is paramount for courts to pursue a detailed analysis to ascertain specific preliminary issues so as to avoid controversial rulings. Courts often handle numerous financial cases that involve what can be best described as foreign or international elements. In such cases, court must decide whether it has the jurisdiction under the Family Law Act 1975 to make a decision on such cases. In the event that it is determined that the court is invested with the jurisdiction to determine the case, the court has to consider whether there is a system of law in foreign country that also has the jurisdiction to handle the case. As it was addressed in the case Attorney General of New Zealand v Ortiz [1984] AC 1, these benefits and costs to either party if the case resolution is made in foreign country as compared with the apparent country should also be a subject of concern. [1] Legal systems in most countries around the world adopt community property regime, which takes effect at the inception of marriage or at the time of divorce. For instance, California and Massachusetts in the United States have adopted community property regimes that support equal division of assets upon divorce. However, this provision...
Words: 659 - Pages: 3
...Adapted from Bernhardt & Kinnear (1988). Cases in marketing management, pp. 6-16. Plano, TX: Business Publications, Inc. Pay careful attention to the following points. They are often used by instructors to evaluate either a written or oral analysis. 1. Be complete. Each area of the situation analysis must be discussed, problems and opportunities identified, alternative presented and evaluated using the situation analysis and relevant financial analysis, and a decision must be made. An analysis that omits part of the situation analysis or only recognizes one alternative is not a good analysis. Second, each area must be covered in-depth and within insight. 2. Avoid rehashing case facts. Every case has a lot of factual information. A good analysis uses facts that are relevant to the situation at hand to make summary points of analysis. A poor analysis just restates or rehashes theses facts without making relevant summary comments. 3. Make reasonable assumptions. Every case is incomplete in terms of some piece of information that you would like to have. A good case analysis must make realistic assumptions to fill in the gaps of information in the case. For example, the case may not describe the purchase decision process for the product of interest. A poor analysis would either omit mentioning this or just state that no information is available. A good analysis would attempt to present this purchase decision process by classifying the product and drawing upon real life...
Words: 487 - Pages: 2
