BUSINESS ADMINISTRATION 4

TIME: 3 HOURS FULL-TIME & PART - TIME 85 MARKS

Read Annexure A and answer the questions that follow in question 1 and question 2.

QUESTION 1 (59 MARKS)

1.1 Various disruptions over the course of the last two years have impacted
businesses economically.

Discuss three ways VUCA has impacted Woolworths, and the response of
Woolworths to address these impacts identified. (12)

1.2 Analyse Woolworths Visions Statement (VS) and discuss whether it has
achieved the purpose of a VS. (5)

1.3 One of the principles of good corporate governance is transparency and

ethical practices. Is Woolworths acting responsibly towards society and the
environment in keeping with the triple bottom line approach as part of good
corporate governance? Discuss three ways in which they are aligning to
Corporate Governance. (12)

1.4 Do a macro-environmental (PESTE) analysis for Woolworths. Provide one

issue for each component as it pertains to Woolworths and be specific and
advise whether each issue is a threat or opportunity. Explain why it is a
threat or opportunity. (10)

1.5 Compile an External Factor Evaluation (EFE) Matrix for Woolworths and fully
discuss the factors, the environment in which they find themselves and how
they can improve upon the strengths and weaknesses in the organization. (20)

QUESTION 2 (26 MARKS)

2.1 Using the Value Chain Analysis, identify and fully explain how value has been
added to a product OR service at Woolworths by integrating the primary and
support activities to the product or service identified. (20)

2.2 Various complaints have been lodged against Woolworths on the “Hello Peter”
website and various other platforms.

Discuss the three complaints mentioned, and advise as to how Woolworths

should address each complaint to as to retain customers or expand their
customer base. (6)
 ANNEXURE A
Woolworths Holdings Limited
Woolworths Holdings Limited is one of the top companies listed on the JSE Limited
Securities Exchange (JSE) with operations across the southern hemisphere. The head
office is based in South Africa and grew from modest beginnings when the first
Woolworths store was opened on Adderley Street in Cape Town. In the more than 80
years since, it has grown into a leading retail group with a strong presence in South
Africa and Australia as well as in another 10 countries in sub -Saharan Africa and in
New Zealand.

Vision
Our vision is to be one of the world’s most responsible retailers.

THE GROUP HAS THREE MAJOR OPERATING DIVISIONS

• Woolworths South Africa (Woolworths or WSA) based in South Africa and

operating across another 10 countries in sub-Saharan Africa
• David Jones (David Jones or DJ) based and trading in Australia and New
Zealand
• Country Road Group (Country Road Group or CRG) based in Australia and
trading in Australia, New Zealand and South Africa

Woolworths Financial Services (WFS) is a joint venture between Woolworths and

Absa Group Limited, with Absa Group Limited owning 50% + 1 share. The WFS
board is constituted with directors from both WHL and Absa Group Limited, with
direction on credit policy, risk, and funding aspects received from Absa and direction
on customer integration from Woolworths.

In 2021, we refreshed our WHL Strategic Framework to ensure its relevance to our
Group in the context of the rapidly evolving consumer landscape as we pursue our
aspiration of being a leading, purpose driven, and truly connected retailer. This
framework centres around three STRATEGIC THEMES. The first is to protect and
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grow our core businesses to ensure we safeguard the foundation of what truly
differentiates us from our competitors. The second strategic theme is to expand for
more and leverage our platform further by pursuing both underdeveloped and new
growth opportunities. The third is leading in customer experience. We became a
great business by putting our customers at the centre of everything we do, and this
must remain the case as we both protect and grow our core businesses and expand
for more.

These three strategic themes are supported by a range of ENABLING

INITIATIVES across operational excellence, our people, and our Good Business
Journey.

Within each of our strategic themes and enablers are a series of initiatives that
support our growth and value creation ambitions. These include:

• Unlock and create value in Australia and New Zealand

• Fashion turnaround and growth in Beauty and Home
• Leading and iconic Food business
• Data-driven decision-making
• Elevated omni experience
• Cost and operational excellence
• Leadership and people

With our vision to be one of the world’s most responsible retailers, sustainability is
core to our business – it impacts everything that we do. It has been entrenched into
the culture of our organisation, and is put into action through our Good Business
Journey programme.

Our Good Business Journey enables a consistent approach to managing

sustainability issues across the Group. The programme focuses on improving eight
key areas of the business: energy and climate change, water, packaging and waste,
sustainable farming, ethical sourcing, people, social development, and health and
wellness, with more than 200 targets supporting these areas.

We believe that setting ambitious sustainability goals challenges our own business to
do more, and inspires others to collaborate on and contribute to this vital endeavour.
Meaningful, enduring impact and progress require deliberate collaboration among all
our stakeholders.

In 2021, we launched our new Good Business Journey strategy and related Group -
wide goals, Vision 2025 + . It is intended to facilitate the Group’s vision of being one of
the world’s most responsible retailers, by aiming to address the complex and
interconnected sustainability challenges and opportunities we face now and into the
future. It is also intended to ensure that our Good Business Journey continues to
keep us at the forefront of sustainability leadership, pushing us to innovate and
collaborate with others.

VISION 2025 + PILLARS AND UNDERLYING GOALS

THRIVING & RESILIENT

We care for the environment and are committed to working towards net zero impact
and a just transition to a low carbon future.

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ETHICAL & FAIR
We care for how our products are made and are committed to a fully transparent,
traceable, and ethical supply chain.
INCLUSIVE JUSTICE
We care for our people and are committed to being a diverse and inclusive business,
enhancing the wellbeing of our employees, customers and communities.

A vital component of this is understanding how we influence and impact our

stakeholders, and also how we can learn from and leverage our stakeholder base. In
turn, we aim to create shared value from our activities through identifying societal
and business benefits simultaneously for all our stakeholders.

• Our customers – throughout over 1 453 store locations, we make every effort
to satisfy our customer requirements around our product quality, value, and
sustainability.
• Our employees – we employ almost 45 000 people across our global
operations, and recognise our role as a leading employer to enable wellbeing
through investment in skills, learning opportunities, and conducive worki ng
environments.
• Our suppliers – we source goods and use the services of thousands of direct
and indirect suppliers. We strive to provide favourable terms and support their
development in a long-term and sustainable way.
• Our communities – we operate in South Africa and 10 other sub-Saharan
African countries as well as in Australia and New Zealand. We appreciate the
need to be meaningfully involved in community upliftment initiatives in the
areas within which we operate.
• Our shareholders – as a JSE-listed and publicly traded company, we have
numerous shareholders in South Africa and abroad, ranging from major
institutions to individuals.
• Our debt funders – are a major source of capital and we ensure that the
Group is adequately funded to meet its financial obligations and business
objectives while managing the related risks.

We also engage and partner with a range of government departments, non -

governmental organisations, media, academic and industry bodies, and recognise
the importance of this support and feedback as part of our long-term business
sustainability.

BOARD COMMITTEES

The Board believes that effective governance is achieved through leadership and
collaboration. To this end the WHL Board, together with its Board Committees, has
established a working framework that complements and supports the work of the
executive and encourages greater engagement between the Board and members of
executive management, with more regular and robust debate on strategic objectives.

With these principles in mind, our governance structure provides management with
more agility to execute on the strategic initiatives and facilitates delegation of
decision-making to the respective teams, while ensuring that the WHL Board retains
full oversight of all material matters.

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In line with this approach, the Boards of Woolworths South Africa, David Jones and
Country Road Group operate as management boards and report to the WHL Board
and Board Committees.
The WHL Board has approved formal delegations of authority to the various Board
Committees, the Group Chief Executive Officer, and the subsidiary management
Boards.

Despite Woolworths launching Woolies Dash trial – same-day delivery, with a

difference, there have been various complaints on a website called “Hello Peter”, citing
unreliable online shopping experiences, products being of poor quality or expired dates
being delivered, and bad customer service.

Source: This case study was compiled and edited using:

Woolworths Holding Woolworths Holdings Limited [10 March 2022]
https://www.hellopeter.com/woolworths?page=2 [18 March 2022]
Woolworths launches Woolies Dash trial – same-day delivery, with a difference – Woolworths Holdings Limited [18 March
2022]

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