Woolworths Case Study Analysis

Contents

Introduction        

Part A        

Reasons for revenue losses.        

Changes to Chairman and Senior executives of Woolworth in the past six months        

1)        Why there is a change in Chairman and Senior executives position?        

2)        The new Chairman and Senior executives of Woolworth        

Challenges of the company faced in appointing new CEO        

Strategic challenges faced by the new CEO and the strategic choices to be made to turn around Woolworths ’performance        

Part B        

Current research findings on executive remuneration and recommendation.        

Analysis of the remuneration package on offer for the new CEO of Woolworth and discussion of the performance measures to be introduced to align CEO behaviour to meet the strategic challenges of Woolworth discussed in part A.        

Conclusion        

APPENDIX        

REFERENCE LIST        

Introduction

Founded in 1924 with its headquarter located in Bella Vista in NSW, Woolworth Company is one of the largest supermarket store chain in Australia and it together with Coles, takes about 80% of the market share in Australia. Currently, the supermarket giant has 961 stores countrywide with more than one hundred thousand employees and revenue of $42.13 billion in the latest financial year. However, with the entrance of low-cost supermarket such as ALDI, Woolworth is facing fiercer competition.

However, the company is experiencing dilemma recently due to huge loss in the past few months after the new CEO came into power. In addition, it is disclosed that the new CEO, Brad Banducci is offered a high remuneration, which has caused many questions from the public, especially shareholders. Stakeholders believe that he has to justify his high remuneration by leading the company to get rid of the current dilemma. In this report, we are going to discuss the feasibility of the performance improvement of Woolworth. At start, we are going to illustrate the reason for the huge loss of Woolworth recently, discuss the challenges faced in appointing Banducci as the new CEO and the challenges faced by him in Part A. In the second part, we will focus on the remuneration package of him to analyze whether the package is designed to encourage him to meet the strategic challenge.