RESEARCH ON WOOLWORTHS

Research on Woolworths

Research on Woolworths

Problem Statement

The current distribution centre of Woolworths at Mulgrave is insufficient to cater to the demands of the increasing number of stores in Australia and New Zealand.

Overview of the Problem

Woolworths have two warehouses in Victoria to store and supply the goods to its supermarkets. They are located in Mulgrave and Wodonga. The larger of the two is in Mulgrave which is also the primary distribution centre for Woolworths. At present, there are 168 supermarkets in Melbourne, under the ownership of the company. The company is in the stage of expansion and with the increasing number of stores, the warehouse in Mulgrave is proving to be insufficient for the distribution system. The distribution centre located at Mulgrave has become small to handle all the orders coming from the 168 superstores. At the moment, Woolworths is facing logistics issues that are causing many orders to be postponed. At such stage with excessive competition in the market, it is imperative that Woolworths should design a strategic plan to deal with this issue.

Cause and Effect Analysis

Fish bone diagram presents a comprehensive a cause an effect lay out of the problem under discussion.

Process Flowchart

SWOT Analysis

Strengths

Diversified Products Offerings

Woolworths offer a broad range of products and services. The company is involved in a consumer electronics business through its joint retail venture with the Tata Group in India. The company has nearly 200 supermarkets and liquor shops and nearly 500 petrol stations. The company's supermarkets division has 756 stores in Australia and 198 in New Zealand. Woolworths also offers financial services through an alliance with Commonwealth Bank of Australia. The acquisition of the Australian Leisure and Hospitality Group broadened the offerings of Woolworths further to include over 200 hotels across Australia. A diversified products offerings allow the company to ...