Environment is business is as similar to the environment in which we live in. It can be defined as an environment where a business can be developed and the change in that environment will influence the course of the business can be referred as business environment. Based on this understanding, this report is going to analyse the business environment of Woolworths Supermarket which is primarily an Australian grocery store established in 1924 (About Us, 2018). In course of the discussion the report is focusing on the macroeconomic factors that are responsible to influence the environment of the Woolworths in Australia.
Environment scanning in the context of business is highly important and significant in the process of business. It can be argued that the business environment scan can help a corporate organisation to understand the external factors that have positive and negative impacts on the business process. Therefore, some importances of business are identified as:
- Scanning the operation of a business organisation helps to take decisions that are beneficial for the company.
- Success and failures are part and parcel of a business process. Therefore, it is important for the business houses to understand the strengths and figure out the failures to resolve (Du Toit, 2016).
- Moreover, the scanning fosters a great deal of perception about the existed government policies and regulation in relation to the specific organisation.
Factors in business environment
It can be argued that the Woolworths Company is putting emphasis on the business in retain sector in Australia. In this context, the first policy that the Woolworths Company demanded for was the proper trading hours across Australia. Besides this, there are issues of labour flexibility that was also addressed by the Woolworths Company (Law changes for business in 2018, 2018). Moreover, the intense interference of the government regulation in local and state level was also identified as an issue in business operation of the company (Fernie, Fernie & Moore, 2015).
Changes in government
The change in the government also puts a great impact on the business activities of Woolworths Company across Australia. It can be stated that the government policies regarding trade and business in Australia has been changed in a rapid pace. With the change in the government policy recently the Australian government increases the minimum wage by 3.5 %. This have a great impact on the Woolworths Company because with this increase in minimum wages the company employees were started demanding for increasing their wages as well. As a matter of fact, the government also imposes new labelling strategies for the for the retail stores in Australia.
The macroeconomic indicators have potential capability to influence the business occupation of Woolworths Company. In this regard, the political environment of the country is stable and thus helps to develop opportunities for the company to maximise its operations. After that the economic factors are stipulates with the financial performances of Woolworths Company. Therefore, it can be advocated that the stability and continuous booming trend of the economy in Australia becomes an advantage for the Woolworths Company to develop its market occupation. As far as the Social factors are concerned Australia is popular for tourist destination and the amicable behaviour of the people make it easier for the Woolworths Company to proceed further (McCrann, 2011). Besides this, the technologically Australia is identified as one of the developed countries and as a result of that this facilitates a great deal of advantage to the Woolworths Company in order to use modern and advanced technology in their production and organisational framework.
Therefore, it can be argued that the external environments are considered to be an important aspect that Woolworths Company has to be kept in mind before taking any decision. Moreover, the company must have detailed knowledge about their internal and external business scenarios so that in case of crisis they can reduce loss.
About Us - Woolworths Group. (2018). Retrieved from https://www.woolworthsgroup.com.au/page/about-us
Du Toit, A. S. (2016). Using environmental scanning to collect strategic information: A South African survey. International Journal of Information Management, 36(1), 16-24.
Fernie, J., Fernie, S., & Moore, C. (2015). Principles of retailing. Routledge.
Law changes for business in 2018. (2018). Retrieved from https://www.business.gov.au/news/law-changes-for-business-in-2018
McCrann, T. (2011). Woolworths targets government on policies to help ailing retail industry. The Courier Mail. Retrieved from https://www.couriermail.com.au/business/retailer-attacks-perceived-threats/news-story/086b6a40d3393b8b7b32fb1308f6d698?sv=8fd02ed489d4e894465c7e77610002e3