Woolworth's Climate & Topology Analysis Woolworth Limited

Woolworth's Climate & Topology Analysis Woolworth Limited - Australia (home country) - Host Country: Norway 1) Does climate affect factor conditions natural resource availability Climate & topology analysis for Woolworths Limited: Australia (home country); Norway (host country) As a supermarket, Woolworths Limited is continually facing the challenges posed by the availability of natural resources. A cool season can prevent a crop from properly flourishing; the price of petrol can cause transportation costs to escalate.

High fuel costs, because they have such a spiraling impact upon all aspects of the transportation of consumer goods, such as imported produce, can be particularly damaging, given the extent to which this can increase the costs of goods and services. This does not only hurt the average Australian consumer, but also can negatively impact Australia's food exports, causing them to rise in price due to transportation costs. In Australia, climate may have more of an impact upon the economy than other nations.

"Australia's 50 largest food and beverage corporations produce almost three-quarters of the domestic industry's revenue. Supermarkets and grocery outlets continue to capture the majority of food sales in Australia, with around 60 per cent of the value of total food and liquor retailing in 2006 -- 07" (Food, 2011, About Australia). Food exports have been a mainstay of the Australian economy until recently, and if droughts continue, this could impact the economy and the availability of capital.

"Food exports reached a peak of $30.8 billion (2006 -- 07 dollars) in 2001 -- 02 and have been declining since, largely due to drought and changes in import demand from overseas markets" (Food, 2011, About Australia). Australia is noted for its fine seafood, and also the influence of the Pacific Rim upon its food tastes.

While the warmth of Australia has fostered an 'outdoorsy' culture, in the proposed host nation of Denmark, the nation's relatively temperate climate has likewise created a culture where awareness of the environmental impact of raising food is important to consumers (Weather in Denmark, 2011, Go Scandinavia). Question 2 Australia's topography has had a significant impact upon its development as a nation. "Australia has 10 per cent of the world's biodiversity and a great number of its native plants, animals and birds exist nowhere else in the world" (Snapshot, 2011, About Australia).

Much of Australia's major commercial centers are located near the coastline, however, and there is a strong divide between the cultures and incomes of rural and urban Australians. Its proximity to the Pacific Rim nations has proved to be a lucrative source of income and trade. "The value of Australia's exports in goods and services reached $215.8 billion in 2006 -- 07, and Japan is its largest export market" (Snapshot, 2011, About Australia).

Australia has long been a diverse society that is highly educated and technologically literate and its ICT market is the eleventh biggest in the world (Snapshot, 2011, About Australia). Topology has enabled it to develop a unique connection with Asia that many other English-speaking nations lack, and made it an attractive place for immigrants. In contrast, Denmark has a far more homogeneous, albeit highly educated population, as the result of its relatively small size and protected position in the midst of Europe.

Question 3 Woolworths Limited must constantly struggle with Australia's climate, including the nation's frequent droughts and also natural disasters. Many rural areas are often ill-served by conventional supermarkets. Due to concerns about global warming, Australian consumers express a strong interest in environmentally-friendly products and are some of the world's most enthusiastic consumers of organic foods.

Despite Australia's strong food production, competition between Woolworth's and its rival Coles has driven down the price of milk, potentially hurting the dairy industry: "While giant retailers Coles and Woolworths are in the middle of a bout to lure more customers, their pricing tiff forced the slashing of milk price.