2500 words. The assignment must be in MS Word format, no spacing, 12-pt Arial font and 2 cm margins on all four sides of your page with appropriate section headings and page numbers. · Reference...

ECONOMICS
RETAIL AND CONSUMER GOODS BUSINESS
Table of Contents
Executive Summary    3
Introduction    4
Introduction to Woolworths    4
Background of Retail Industry in Australia    4
Market Structure of Australia’s Retail Industry    4
Factors Influencing Demand for Woolworths’ Product:    5
Factor’s Affecting Supply of Woolworths’ product    6
Elasticity    6
Impact of Covid-19 on Industry and Company    7
Conclusion    7
References    9
Executive Summary
The project aims at understanding the key factors affecting the demand and supply of the situated in Australia and the decisions that the management should take to cope up with the fluctuation ins in the sentiments of its consumers and other stakeholders of the company. For analyzing these factors, an Australian based company Woolworths Group has been chosen as the target company. In this project, we shall be analyzing the factors affecting demand and supply of the product, impact of COVID – 19 and the manner, in which the company should tackle the problems in these unpredictable scenarios.
Introduction
Australia is among the developed economies with a higher per capital income and higher disposable income. Among all the sectors, the retail sector is an important contributor to the GDP and employs a significant number of people. Over the years, development of the industry has led to use of sophisticated technology at both manufacturing and servicing points. Woolworths Group Company has been selected for the study, as it is one of the largest player in the industry.
Introduction to Woolworths
Woolworths Group Company is an Australian based company having large-scale operations in the retail sector. As noted by Parkinson (2018), Woolworths Group Company is the second largest Australian Company taking into consideration its proceeds, return and profits. Woolworths Supermarkets is the subsidiary company of Woolworths Group holding more than 50% of the shares in the supermarket. The company was set up and established on 22 September 1924. Bradford Bianucci is the Managing Director, Executive Director as well as the Chief Executive Officer (CEO) at Woolworths Group Ltd. Five Australian businessperson and business tycoon, named Percy Christmas, Stanley Chatterton, George Creed, Ernest Williams and Cecil Scott Waine, launched the Company (Woolworths, 2020).
Although it is the second largest company in Australia but it is the eighteen largest company in the world in the field of retail business (Grimmer, 2019). The company has multiple business segments, majority of which are selling of groceries and other consumables, selling liquors and operation of gaming and poker machines in the state of Australia and New Zealand under the
and name Australian Leisure and Hospitality group. Although, the Woolworths is a common
and name, yet, the company has no link with the Woolworths America, Woolworths UK and Woolworths Africa. The company is majorly active in the state of Australia and New Zealand only (Woolworths, 2020).
Background of Retail Industry in Australia
Retail companies in Australia are multifarious, assorted, variegated and heterogeneous merchant and retailer having operations mainly in Australia and New Zealand. The companies engaged in this sector are indulged in the manufacturing, assembling, storing, trading and retailing of food products and other groceries. These companies manufactures and produces a
oad variety and of raw materials and processed items. The objective is the enhancement and increase in the long-term shareholders value. The diversification of domain, site and location of Australia provides many more fringe benefits and perquisite for the food industry.
Living in the Southern geographical region, the foods are likely to be produced throughout the year and through all the different seasons. Consequently, food can further be transported to other countries during off-season also. Australia has prospered and inaugurated innovations, automations and machinery to enhance and boost the ingenious packaging system as well as the effective transportation approach. This new technologies helps in improving the systematic processing networks, farm management, agriculture and cultivation.
Woolworths Group Ltd. comprises of a range of intoxicated and wine stores, supermarkets, grocery stores and gasoline stations. As noted by Feigin (2016), the retail industry of Australia is blessed with high-u
anized population, high per capita GDP, high disposable income. The same provides great opportunities for the companies operating in the country. Besides that, the industry is growing at an average rate 3.7% on yearly basis in 2018.
Market Structure of Australia’s Retail Industry
Australia’s retail industry comprises of over 140,000 retail shops comprising mainly of small shops to departmental stores to super markets, which accounts for mainly 5% of the country’s GDP. With the advent of e-commerce, online sale is gaining huge popularity in the state. Retail industry comprises of mainly groceries, clothes, consumables and other items. These operate in a fast changing environment where the taste and demand of the customer keeps on changing. Hence, the products are also required to be change to meet the expectation of the customers.
Since, the number of retail stores is huge in Australia; there is cutthroat competition. They vary in terms of size, structure, level of operations, range of products being sold and other parameters. In order to meet the expectations of the fast changing demands of the customer and the e-commerce giants, the retail stores have started the home delivery of goods on real time basis (Martino et al. 2017). Besides that, due to stiff competition in the market the retailers are bound to give huge discounts and other offers to the consumers.
The mortar...