Discuss about the Media Reflection for Woolworth and Coles.
“Strain in the relationship between Woolworth and Coles”
Woolworth and Coles have been partners for a long time in business. This joint venture has resulted in the introduction of lucrative facilities for the customers. As a matter of specification, both the organizations, Coles is one such name among the retail businesses after Woolworths. Speculating the earlier phases, deals, trades and transactions between Woolworth and Coles have benefitted the customers (Price, Bailey and Pyman 2014). Typical examples in this direction are the family shopping packages. However, consecutive declines in the “billion dollar investment” plans have compelled the managers of Woolworths to cease their partnership with Coles. Even after spending more than $1 billion, the managerial personnel have still not emerged successful in restoring the offer of “king like family shopping”. The major drive behind this is the exposure of negligence in terms of rectifying the potential errors in the marketing services. This negligence nullifies the confidence regarding the capability of Woolworths personnel to generate more revenue than Coles (Smh.com.au 2017).
Viewing it from other perspective, the declaration to shun the partnership is illegal in the eyes of the law. Countering this, self decision of the managers to end the partnership terms is a kind of violation of the Partnership Act, which makes it obligatory for the organizations to under the terms and conditions carefully and then indulge into the contract. Generally, two business organizations indulge into partnership for earning more profit. Delving deep into the recent performance of Woolworths and Coles, Woolworths can be placed on a higher pedestral as compared to Coles. In view of this, the declaration to end the partnership terms seems appropriate (Bailey et al. 2015). Rather, it reflects the attempts of the managerial staffs in terms of bringing modifications in the business procedures.
The immediate result of the situation was customer turnovers, which enhanced the authoritative powers of brands such as Aldi. However, chief executive of the brand is hopeful in terms of restoring the families through the means of offers, discounts and schemes on family shopping in the near future. Execution of promotional activities at an expense of $275 million seems inappropriate as compared to the reduction in the prices of the products. This motive projects an absence of oriental approach of the managers of Woolworths regarding the infrastructural development (Dixon, Hattersley and Isaacs 2014). The critiques are hopeful regarding the restoration of equilibrium between the supply and demand in the upcoming days.
Indulging in meetings with the members of Trade Union seems a wise approach in terms of setting the prices of the goods and services. Within this, focus is being placed on the promotion of innovative goods. However, the article projects a long way that Woolworths needs to cover for improving the relationship with the customers.
For this, the steps taken by the managers are just commendable. As a matter of specification, prices of the products have been reduced on an average of 2.4%. This possesses flexibility to restore at least some audience (Smh.com.au 2017). Along with this, number of staffs on Sundays has been increased for improving the losses achieved in the stock markets. Moreover, relations have been improved with the suppliers. Typical evidence of this is the supply of quality raw materials to the suppliers for its delivery to the customers. Dedication and commitment of the employees and managers was a turning point for Woolworths. Adoption of social media marketing enabled Woolworths to add maximum value to the profit margin (Smh.com.au 2017). Herein, lays the achievement of success on own terms, which is far more prestigious than sharing a collaborative loss.
Bailey, J., Price, R., Pyman, A. and Parker, J., 2015. Union power in retail: contrasting cases in Australia and New Zealand. New Zealand Journal of Employment Relations (Online), 40(1), p.1.
Dixon, J., Hattersley, L. and Isaacs, B., 2014. Transgressing retail: supermarkets, liminoid power and the metabolic rift. In Food Transgressions: Making Sense of Contemporary Food Politics. Ashgate Publishing Ltd.
Price, R., Bailey, J. and Pyman, A., 2014. Varieties of collaboration: the case of an Australian retail union. The International Journal of Human Resource Management, 25(6), pp.748-761.
Smh.com.au (2017). Woolworth goes after the family spend. Availiable at: https://www.smh.com.au/business/retail/woolworths-goes-after-the-family-spend-20170222-guiqzn.html [Aessed on 21st May 2017]