Levels of Operation and Mechanisation
Level of operations refers to the scale of food production and the amount of sophistication of the technology used. The various levels of operation and mechanisation include household, small business, large company and multinational. Woolworths is a large company. A large company is characterised by a range of stores across Australia, large scale food production and selling, stores including industrial equipment, high turnover and a large number of employees.
In Australia, there are 872 Woolworths supermarkets and in 2012, 38 new stores opened nationally.
Overall, full year sales through supermarkets, liquor stores and petrol stations increased by 4.9% from AU$45 312 billion in 2011 to AU$55 130 billion in 2012. Sales in the Supermarket division totalled to AU$48 564 billion in 2012 which is an increase of 4.9% from AU$46 312 billion in 2011. Petrol sales for the full year were AU$6 714 billion in 2012 which is an increase of 11.4% compared to AU$6 025 billion 2011. Woolworths opened 18 new petrol stations during 2012, bringing the total to 599 sites. Sales of liquor increased by 3.8% from AU$36 176 billion 2011 to AU$37 549 billion in 2012. Woolworths have extensive employee numbers, employing 190 000 people nationally in stores, distribution centres and support offices.
Woolworths has a wide variety of machinery, equipment and technology used in supermarket stores, distribution centres and support offices. Machinery and equipment includes forklifts, commercial kitchens, ovens, heaters, fridges, food slicers, ladders, storage shelves and transportation trucks. Technology used by Woolworths includes cash registers, barcode scanners, computers, automatic doors, handheld transceiver (walkie talkie), Woolworths’ iPhone app and website.
Woolworths has also released an extensive range of emerging technology in 2012. In February, Woolworths introduced virtual supermarkets in Sydney and Melbourne. Virtual stores are billboards which display images of real supermarket shelves containing grocery items. Customers can purchase food products by scanning the barcodes on the billboards with their smartphones. These barcodes take users to the Woolworths app where it can purchased and delivered within hours for a delivery fee. In August, the first “click and collect drive thru” was established at Woolworths Warringah Mall in Sydney. Customers can access the service when they shop online via the smartphone app, tablet or computer. Once customers have completed their order, they select the drive-thru option and choose a collection time. Customers collect their purchases by presenting identification at the drive-thru bay where an attendant will pack the groceries into the car.
Woolworths size and large number of employees results in greater volumes produced, sold and more mechanisation. Mechanisation reduces the need for human labour and can ensure processes are consistent. This concept would apply to the bakery section at Woolworths as the high sophistication of machinery used (ovens and mix masters) reduce the number of employees to produce baked food. This also is seen in the storage area of inventory (stock) due to commercial fridges and pantries. However, these machineries require personnel for supervision.
The advantages of Woolworths’ large business include large scale production and selling, many employment opportunities, large profits, operating continually (24/7) and reduced intensive labour due to machinery and technology. However, the disadvantages include high risk of technical problems due to large scale production methods used, high costs of machinery and maintenance, high electricity/gas/water bills, more prone to industrial and union actions and standardised products (no products are customised to suit customer’s needs and wants).
Level of operations refers to the scale of food production and the amount of sophistication of the technology used. The various levels of operation and mechanisation include household, small business, large company and multinational. Woolworths is a large company. A large company is characterised by a range of stores across Australia, large scale food production and selling, stores including industrial equipment, high turnover and a large number of employees.
In Australia, there are 872 Woolworths supermarkets and in 2012, 38 new stores opened nationally.
Overall, full year sales through supermarkets, liquor stores and petrol stations increased by 4.9% from AU$45 312 billion in 2011 to AU$55 130 billion in 2012. Sales in the Supermarket division totalled to AU$48 564 billion in 2012 which is an increase of 4.9% from AU$46 312 billion in 2011. Petrol sales for the full year were AU$6 714 billion in 2012 which is an increase of 11.4% compared to AU$6 025 billion 2011. Woolworths opened 18 new petrol stations during 2012, bringing the total to 599 sites. Sales of liquor increased by 3.8% from AU$36 176 billion 2011 to AU$37 549 billion in 2012. Woolworths have extensive employee numbers, employing 190 000 people nationally in stores, distribution centres and support offices.
Woolworths has a wide variety of machinery, equipment and technology used in supermarket stores, distribution centres and support offices. Machinery and equipment includes forklifts, commercial kitchens, ovens, heaters, fridges, food slicers, ladders, storage shelves and transportation trucks. Technology used by Woolworths includes cash registers, barcode scanners, computers, automatic doors, handheld transceiver (walkie talkie), Woolworths’ iPhone app and website.
Woolworths has also released an extensive range of emerging technology in 2012. In February, Woolworths introduced virtual supermarkets in Sydney and Melbourne. Virtual stores are billboards which display images of real supermarket shelves containing grocery items. Customers can purchase food products by scanning the barcodes on the billboards with their smartphones. These barcodes take users to the Woolworths app where it can purchased and delivered within hours for a delivery fee. In August, the first “click and collect drive thru” was established at Woolworths Warringah Mall in Sydney. Customers can access the service when they shop online via the smartphone app, tablet or computer. Once customers have completed their order, they select the drive-thru option and choose a collection time. Customers collect their purchases by presenting identification at the drive-thru bay where an attendant will pack the groceries into the car.
Woolworths size and large number of employees results in greater volumes produced, sold and more mechanisation. Mechanisation reduces the need for human labour and can ensure processes are consistent. This concept would apply to the bakery section at Woolworths as the high sophistication of machinery used (ovens and mix masters) reduce the number of employees to produce baked food. This also is seen in the storage area of inventory (stock) due to commercial fridges and pantries. However, these machineries require personnel for supervision.
The advantages of Woolworths’ large business include large scale production and selling, many employment opportunities, large profits, operating continually (24/7) and reduced intensive labour due to machinery and technology. However, the disadvantages include high risk of technical problems due to large scale production methods used, high costs of machinery and maintenance, high electricity/gas/water bills, more prone to industrial and union actions and standardised products (no products are customised to suit customer’s needs and wants).