Entrepreneurship of Woolworths Ltd

Question: Discuss about theEntrepreneurship of Woolworths Ltd. Answer: Introduction: This assignment consists of analyzing the different principles and concepts related to Entrepreneurship. The researcher has chosen Woolworths Limited to conduct this report. The assessment includes acquiring the business of Woolworths Ltd and providing adequate leadership qualities to sustain it. The concepts of entrepreneurship and the role of entrepreneur in setting up an organization are concluded in this report respectively (Drucker 2014). Entrepreneurship is the art of setting up an organization individually rather than working for someone else. A successful entrepreneur is an individual who is able to bear the risk of starting a new venture. An Entrepreneur takes all the decisions of the organization; he/she is responsible for all the risk associated with the business (Drucker 2014). An entrepreneur is typically a Sole Proprietor, an active Partner and the person who generally holds most number of shares in a business venture. To become a successful entrepreneur a person needs to have these qualities such as ample amount of confidence, open minded in nature, competitive personality, creativity in work, strong determination, and ability to handle pressure, strong work ethic and passion for business (Grimes et al. 2013). To start a new business these qualities are necessary to be performed simultaneously to provide efficiency and increasing the growth of the business. In this assessment, the researcher has acquired Woo lworths Ltd business and provided adequate solutions to develop it by using strong entrepreneurship skills and concepts (Grimes et al. 2013). Industry Description: Woolworths Ltd is a major retail company of Australia; the company consists of huge revenue and profit growth. In this report, the researcher has selected the retail industry of Australia because the retail industry has great diversification such as the size of business is large, healthy amount of competition in the market and huge opportunities prevailing in the market towards growth an expansion (Drucker 2014). Retailers do not only sell goods to their customer but also assists them in buying and suggesting new product offerings. The diversification of retail industry is huge such as large departmental stores. Woolworths is one of the strong brands of supermarkets in Australia and by acquiring it, the researcher will be able to gain most of the market share in Australia. The primary market will consist of the domestic market of Australia and it surroundings states. The retail industry consists of selling consumer goods and services to various customer through numerous logistical ch annels (Frese and Gielnik 2014). Necessities in Becoming an Entrepreneur: There are very few people in the world that may really become a successful Entrepreneur but if a person has the passion of becoming one, he/she can achieve it effectively (Carland and Carland 2015). There are various reasons why a person should become an entrepreneur and they are as follows: Huge Opportunity: When a person works in an office, he/she has to work for 8-9 long hours and the person has to follow the same routine everyday and have to work under a boss. However, in the case of entrepreneurship there is a large opportunity of doing work on own freedom and taking all the decisions by himself. In this case, of entrepreneurs time is not the factor it is all about the motivation towards setting up an organization (Carland and Carland 2015). Autonomy: There is huge scope of independence in Entrepreneurship that generally lacks in official jobs. The corporate culture is very dissatisfying and it is very difficult to sustain it in the end. Whereas by acquiring Woolworths retail chain, it will be beneficial in creating a huge growth in the market and being an entrepreneur there are high scope of developing the business as it is facing severe competition (Gupta, Chiles and McMullen 2016). Responsibility towards Society: One of the major qualities of an entrepreneur is the measure he/she takes towards developing and sustaining the society. Not only the macro level but also initiating efficiency in the micro level of the business environment (Gupta, Chiles and McMullen 2016). However, the reason behind acquisition of Woolworths Ltd is to develop the industry and provide maximum customer satisfaction with increasing level of services to them. Huge Profit Possibilities: The main objective of being a successful entrepreneur is to increase the earning potential of an individual. In a corporate job, the earning potential is restricted; a person may receive promotions and hike in the salary but in the case of entrepreneurship the possibility to earn huge profits are available by venturing in the right business and efficiency in the business operations (Frese and Gielnik 2014). Control: The main objective behind becoming an entrepreneur is the essence of security, which is resulting from being able to control the work. By acquiring Woolworths Ltd, the entrepreneur will be able to control the outcome of the business, take appropriate decision regarding the structure of the organization and provide adequate measure to tackle all the business risks (Frese and Gielnik 2014). Innovation: Entrepreneurs are known as innovators as they often produce new products and services in the society. Innovation is an art, which is performed by successful entrepreneur in creating outstanding product differentiation and provides competitive advantage in the market. Woolworths Ltd is a good brand of supermarket retail organization but there are few drawbacks as there is a lack of effective services in the organization. Therefore, by purchasing it and with proper entrepreneurship qualities and innovation of products and service Woolworths market worth will be increased (Weaver et al. 2012). Corporate Culture: By becoming an Entrepreneur, an individual is able to create its own corporate culture according to his/her beliefs and character. The development of good working environment is solely depended in the hands of the Entrepreneur. With the acquisition of Woolworths Ltd, the entrepreneur will create a new corporate culture and new policies and procedures to regulate the organization more effectively and provide employee satisfaction (Weaver et al. 2012). Legacy: The entrepreneur is always responsible for making a brand famous and with proper brand image and goodwill of the brand creates an appealing legacy for the innovator. The use of effective technology and internet there is a big possibility of growing the market of Woolworths Ltd in Australia, and with proper leadership qualities of the entrepreneur the business will have a great impact on the coming generation and sound legacy of the firm (Carland et al. 2015). Urging of Passion: Entrepreneurship is all about fulfilling individual passion. For example, a corporate worker he/she does the type of work that the company offers them to do but in the case of entrepreneurship, an individual can choose the field of their choice and pursue their goals simultaneously. Entrepreneurship leads towards promotion of creative thinking and provide an individual to accomplish his/her goals effectively (Bailey et al. 2015). Analysis Based Consideration of the Positioning of Products Services in the market: Positioning of products and services consideration solely rely on the potential of the product and the services in the market (Arli et al. 2013). Woolworths has emerged out as one of the biggest retailers in the Australian market, which is occupying a dominant position in the market with retail stores comprising of grocery items, liquor, petrol, general goods, consumer electronics etc. Since its incorporation in 1924, Woolworths is continually growing as a giant brand (Bailey et al. 2015). The Company has 3,000 stores approximately with 965 supermarkets in Australia and New Zealand. The kind of dominance, which the Woolworths have in the Australian market, it has the potential to bring cheers on those faces who wish to acquire the Company to achieve the entrepreneurship (Keith 2012). The Company conducts its business through five business divisions. Retail liquor outlets and petrol outlets, the supermarket division, general merchandise division, which operates through BIG W discount stores, hotels division, which encompasses on liquor sales (Mialon et al. 2016). It operates as the parent company of The Warehouse Group Limited, which is one of the largest department stores in Australia (Wang 2015). In recent time, there is a slight fall in the market share of the Company whereas Aldis market share is on a rise (Mialon et al. 2016). As per a new research conducted by Roy Morgan, the market share of Woolworths has fallen to 37.3%, while the market share of Aldis is on a rise and has risen to 12.1%. However, Woolworths continuously enjoying their lion share in the market, customers thronging to Aldis have increased (Keith 2012). The story clearly tells that Woolworths is struggling to maintain the same dominance in Australia in course of achieving a high market profit, it lost on the budgetary part of products. Moreover, this is where it has given an uncalculated space to its rivals such as Aldi, Coles and Costco. Woolworths is struggling to compete against Coles, as the purchase rate is being challenged (Mialon et al. 2016). The analysis of the market picture makes it clear that to successfully resourcing of the business, it demands a proper market study (Mialon et al. 2016). The dominance is challenged but is alive and that gives the learner, a sufficient space to prosper, riding on the success of the Company. The products and the business need no introduction, only the proper coping with the customers requirement is sufficient (Smallbusiness.chron.com, 2016). Business Resourcing Options: Business resourcing is a method by which an enterprise or business is undertaken to achieve a preferred outcome. There could be various options to resource a business by acquiring a giant leader such as Woolworths. These resources help in further flourishing of the existing relationships with all the stakeholders expectations (Bailey et al. 2015). Moreover, a business resourcing options include the followings that help in successfully relaunching of the business in the market with the acquired brand (Smallbusiness.chron.com, 2016). Financial Resources: The most important of all to start a business is the availability of the sufficient funding. The acquiring of such a giant business leader Woolworths and then implementing the entrepreneurship principles is a long process and needs a proper care with the funding (Bailey et al. 2015). To overcome the current loophole in Woolworths, Which are responsible for a continuous share fall, require proper analyzing of the market then doing correct market promotion. Market promotional events incur a huge amount, it goes on piling once the requirement, and the expectations of customers are identified (Bailey et al. 2015). Human Resources: The success of a business depends highly on its quality employees, which can use their expertise to their potential to resurrect some of the lost plot of Woolworths with different identification brought by some other company acquiring the Woolworths business (Bailey et al. 2015). These human resources have the responsibility to identify the sheer class employee and then select those once the eligibility criteria meet. A bunch of experienced employees those have innovative thoughts and love experimenting with their ideas needs their employment in the company (Motley Fool Australia, 2016). There can be various ways to hire new employees and this includes direct walk-in or a referral process, which include the participation of the existing employees (Bailey et al. 2015). Moreover, those existing employees whose judgments are respected need to participate in the referral process. Physical Resources: Physical resources are all tangible resources of the company that includes manufacturing equipment and official machineries. It also includes land, labour and people. Physical resources are also very important for an entrepreneur to launch the business after acquiring a giant leader such as Woolworths. The expansion of the business after acquiring a business requires huge marketing stuffs such as marketing materials for the market promotion (Bailey et al. 2015). Educational Resources: Educational resources consist of gathering proper knowledge about the market and competitors before entering into the market. Education is probably the best, which can help an entrepreneur to launch its business after acquiring the business of a giant leader such as Woolworths (Bailey et al. 2015). An entrepreneur needs to have a proper analysis of the market and the requirement of customers, what other has missed on this (Budisantoso, Wickramasinghe and Teoh 2014). Woolworths is still a giant leader but a continuous drop in the market share has attracted the learner to acquire its business and promote this with new added features. Emotional Resources: Starting up an acquired business requires a bunch of such people who can stand by the management and fill them with inspirations in a situation when they are demoralized (Bailey et al. 2015). A time comes when things do not turn up to the expectations, people tend to lose hope and get nervous. However, a good entrepreneur has all the capabilities to overcome the situation but still, it is a human instinct, which require someone to console and motivate for the challenge (Bailey et al. 2015). Launching some newly, added concepts with the existing concepts of the Company require serious patience from the entrepreneur to stay undetected in any sort of situation. Recommendation: The first point of recommendation revolves around the proper study of the market. It consists of customers requirement and the current market shares of the competitors. Proper analysis of the market competition and the point of attraction in its competitors for the customers need a broader study. The second point of attraction is about proper handling of the employees to give it a dimensional move. Moreover, successful entrepreneurs do possess this quality and utilizes this to the fullest of benefit. The third point of attraction speaks about the flexibility as it holds a significant importance with this. Woolworths for an example continually focused on their profit margin and did not compromise with the customers requirement. It is because of the fact that the Woolworths faced strong challenge from the comparatively cheap product manufacturer company Costco. Conclusion: Entrepreneurship is all about starting something new and achieving success in them. In this assignment, the researcher has acquired the business of Woolworths Ltd and provided adequate entrepreneurship concept to improve its operations. Launching a new concept by acquiring an existing business of the likes of Woolworths who have already dominated the Australian market require an extensive study of the market. Woolworths are still the dominant company in the Australian market with maximum market share but a continuous drop has put them in a significant defiance from the customers. Loyal ship is no longer a universal concept when it asks customers to make selection on their brand choices to which they have strong faith. Moreover, brands that meet with the customers requirement eventually come out as the dominant character in the market. Increasing customer base of Costco and Aldi in recent time, significantly prove the role of customers requirement in deciding the fate of a brand in th e market. An entrepreneur has all the basic instincts inbuilt in it to take over a brand and then relaunch this in the market with some added features to catch the present trend of the market. Flexibility is the most important key of an entrepreneur, which constructs its story of success in the market. With the help of proper entrepreneur qualities, an individual can provide success towards it business venture and lead to customer satisfaction. References: Arli, V., Dylke, S., Burgess, R., Campus, R. and Soldo, E., 2013. Woolworths Australia and Walmart US: Best practices in supply chain collaboration. Journal of Economics, Business, and Accountancy| Ventura, 16(1), pp.27-46. 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. Bridge, S. and O'Neill, K., 2012.Understanding enterprise: entrepreneurship and small business. Palgrave Macmillan. 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