Strategic Business Woolworths Holdings Limited

Question: Discuss about the Strategic Business for Woolworths Holdings Limited. Answer: Introduction: Here in the given report the mission vision and remuneration report of Woolworths Limited has been analysed. For the analysis of remuneration, only the executive members are considered and other directors of the board have not been taken into account. The objective of the report is to evaluate the corporate goals of the organization and the performance of the top managerial personnel. To analyse the above things, annual report of Woolworths Limited available through their corporate website, for the period closed on 2016 has been analysed. Mission and Vision: The mission of the company is to gain the highest position in the mind of the people and to be the most loved trader for family leisure, home and kids. Their main focus is to progress the system of stock returns and maximize the efficiency of network to assure that the clients get the best service from the company (Woolworthsgroup.com.au. 2017). To attain the objectives they have the following precedence: To build a team involving the customers and stores which will lead to team and culture Constructing a momentum for sales which will assist in attaining the sustainability Improving the business related to portfolio business to enable the approaches to benefit the shareholders To become a dependable retailer through manipulating excellence of systems and end-to-end procedures All the above factors can be achieved through constructing a huge tem for retail that will always be available to assist the customers, listen to their queries, listen to the suppliers and team members. At present, their support team receives daily response from the customers. With the proposed system, their team can focus on everyday report from the customers and can progress the shopping experience and offer proposals for the customers. In last several years, various tools of mobile has altered each aspect of life, specifically in the field of retail business. The customers are not only able to shop through the retail shop, but also they are able to access from any corner of the world through internet. Therefore, they are planning to introduce the online service to facilitate the customers in shopping. Their recent changes include: Introduced larger size bags for self-serve departure Availability of half sized trolleys Availability of updated store directories at each walkway Availability and improvement in information for seasonal fresh foods Better packing facility of bags Remuneration report: The executive directors of the company including the CEO, are paid as follows: The CEO of the company Woolworths Group, Mr. Banducci was engaged on his position from 26th February 2016. He also hold the position of MD WFG, for the full year 2016. Mr. Smith appointed as the Executive KMP in the year 2016 with regard to the requirement of the business and he held his position during the full year. Mr. OBrien as the Group CEO from 26th February 2016 and continued his service till 1st August 2016. He was paid only the contractual superannuation and leave payment for long service (Keith 2012). Annual financial results of Woolworths limited: Particulars 2014 2015 2016 Revenue $60,772.80 $60,679.10 $58,085.70 EBITS $3,775.20 $3,322.50 $1,605.20 Dividend per share 137 cents 139 cents 77 cents Table 3: Financial results (Source: Woolworthsgroup.com.au. 2017) Remuneration strategy: The remuneration strategy of the company is planned to develop, attract and hold committed, talented and passionate executives who are required to efficiently apply the overall strategy of the company and build the maximum wealth for the stockholders. The strategy for remuneration for the key managerial personnel is based on the withholding of critical and major skills and to perform inconsistent with the interest of stockholders through paying the long-term and short-term compensations (Dos Santos, Svensson and Padin 2013). The principles of remuneration strategy are as follows: Replicate the values and culture of Woolworths Fulfil the interests of shareholders and employees Offer competitive advantages for retaining, motivating and attracting talent Assist in achieving diverse workforce Performance against STI targets: Executive KMP Group EBIT EBIT Sales ROFE Customer Total achieved STI (in % of stretch STI) Brad Banducci X X XX X XX 0% Richard Dammery X X XX X XX 0% David Marr X X XX X XX 0% Martin Smith X XX XX X XXX 0% Table 4: Performance against STI targets (Source: Woolworthsgroup.com.au. 2017) X = Below threshold hurdle, XX = Between hurdle and stretch, XXX = Above stretch Conclusions: From the above discussions, it is concluded that, the first priority of the company is to gain customers satisfaction through providing a satisfactory shopping experience to the customers. During the year they have improved in various segments like building a team for customer assistance, introducing different sizes of bags for supply of products and introducing the beverages business to provide the customers with more convenience and value. On the other hand, the remuneration paid to the chief executives and other key personnel are based on their performance in the company. This will assist them in achieving better performance with the companys context. The executives are eligible for conditional share awards only after completing three years performance period in the company. The retention strategy of the company for the key personnel is also based on long-term strategy. It will assist them in holding them for long-term period. References and Bibliography: Davidson, H., 2013. Coles v Woolworths: palm oil scorecard reveals markedly different rankings.The Guardian,13, pp.1-4. Dos Santos, M.A., Svensson, G. and Padin, C., 2013. Indicators of sustainable business practices: Woolworths in South Africa.Supply Chain Management: An International Journal,18(1), pp.104-108. Woolworthsgroup.com.au. (2017). Annual Reports - Woolworths Group. [online] Available at:https://www.woolworthsgroup.com.au/page/investors/our performance/reports/Reports/ Annual_Reports [Accessed 18 Jan. 2017]. Keith, S., 2012. Coles, Woolworths and the local.Locale: The Australasian-Pacific Journal of Regional Food Studies,2, pp.47-81. Kuhn, R.U., 2014.Woolworths Holdings Limited's (WHL) Strategic Business Positioning in the South African Clothing and Food Industry(Doctoral dissertation, Nelson Mandela Metropolitan University). Whyte, S., 2013. Woolworths to phase out all battery hen eggs.The Sydney Morning Herald,4, pp.1-2.