current business context代寫

發布時間:2020-05-29 01:04
Since 1924, Percy Christmas, Stanley Edward Chatterton, Cecil Scott Waine, George William Percival Creed and Ernest Robert Williams invested 25,000 pounds to open the first shop in Sydney’s Pitt Street it has become the biggest food retail seller in Australia. Now, it has 1114 stores in Australia and has 125000 workers which boost the employment in Australia. In fact, every 100 people in Australia work in Woolworths. In addition, the mission of the Woolworths is to bring the consumers daily finest quality fresh food and best shopping experience. Chiefly, it values the quality of the foods that 25 years ago, it has advocated the idea of the ‘Fresh Food People’. It grantees that 100% of the meat and 96% of the fruit sold in the shop are fresh and all the vegetable are cultivated in Australia (Woolworths, 2013). Then, in order to provide fresh food for consumers, it should conduct a risk management on food standard. In this report, it will investigate on this.
Literacy review
As risk could be a threat, an opportunity or a cause of uncertainty in the company, more and more business drivers and stakeholders concern for the risk management. Organizations could estimate the potential influence of all types of risks on the process of the operation and manufacture through the enterprise-wide approach (Hutter and Power, 2005). To establish a good risk management in the organization, AS/NZS 4360 is a generic guide. It was released in 1995 and demonstrated the basis risk management process. To begin with, the company should establish a context through a completely understood of the external and internal aspects of the organization. The context covers the boundaries and objectives around the process of the risk management, external and internal stakeholders, Then, the company should identify all the risks in the company by focusing on the questions of what, where, when and how risks will occur. After that, it should analyze these risks to identify the likelihood and consequence of occurrence based on the prior experience and assumptions. Furthermore, the company ought to evaluate the risks to decide the priority based on the effect, likelihood and the costs and benefits. Subsequently, it needs to consider the treatments to transfer the risks and reduce the likelihood and slash the influence. After accomplish the risk assessment, the company should also arrange the monitor and review and communication and consult frequently to ensure all the risk management plan is reasonable, relevant, up-to-date and can be clear understood by all the stakeholders. The above graph shows the processes (AS/NZS 4360, 2004).

Figure1: AS/NZS 4360 framework
In addition, the ISO 31000 standard can also provide guides for the producers to manage the risks. It was released in 2009. Briefly, the ISO 31000 is one of the results of the global financial crisis in 2008. At that time, this crisis recalls people’s attention on the risk managements. Then, ISO31000, the new risk management standard was published to offer a systemic approach to implement the enterprise risk management (ERM). Compared with the AS/NZS 4360, it defined the risks in terms of the influence of uncertainties on objectives and it is more comprehensive which are fit for all types of organization and clearly identifies the responsibility in each position. Chiefly, key principles remain the same including the risk context establishment, risk identification, analysis, evaluation, treatment and monitoring and reviewing but there is a little change in the risk management framework. It greatly focuses on implementing the risk management. The following diagram shows the new framework.

Figure2: ISO 31000 standard framework
First, the company should have risk consciousness and the senior managers need to commit risk management. Second, it should design the framework by fully understand the organization, resources and the environment, make risk management policies and integrate them into the company’s operation and set up the internal and external communication and reporting mechanisms. Third, it ought to implement the risk management while conduct a continual improvement of the framework. Finally, the company should monitor and review the framework (AS/NZS ISO 31000, 2009). In a word, both the AS/NZS 4360 and ISO31000 are the significant tools to improve the company’s risk management in a cost efficient way.
Risk identify in the food supply in Woolworths
In the introduction, it briefly demonstrate the context of Woolworth, it following paragraphs will investigation the risks in food supply. Vendors are significant to the Woolworths. As a retailer, Woolworth purchase bakery style products, cheese, deli style products, raw meat, cooked meat, nuts, seafood, fruit, vegetables, eggs, live animals from the wholesalers. Thus, the quality of products supplied by the wholesaler will directly affect the food quality in Woolworths. It may have the following risks.
1.         Food fraud
It is certain that vendors use inferior materials to produce products but label as a good product. The horse meat scandal in IKEA is a good example. One of its suppliers, Servocar uses horse meat to instead of the beef and pork in making the meatball. When IKEA sold these meatballs and labeled as the mature of the beef and pork, it have a big troubles. Now it has withdrawn the meatballs from more than 20 countries. This accident affects IKEA’s brand reputation, sales revenues and increases the expenditure on food recall and reselects the vendors. Among them, the direct economic losses of food withdraw are 1675 pounds which involve 760 kilograms of the meatballs (Ritter, 2013). In addition, the fish fraud now is common in America. According to (Hartman, 2011), 48% of the fish sold in American resultants, grocery stores and seafood markets has involve in the fish cheating. These sellers put expensive fishes label on the common ones. Even some of the fishes sold in the market are poisonous for the human beings.
2.         Unclear specification
Sometimes, vendors will use unclear specification especially when they use some ingredients or additives. For example, some producers always write C3H5O2Na in the food specification. It is the chemical formula for the preservative. Then, for the consumers who are not good at chemistry may confuse about this. These unclear specifications may cause misunderstanding as well. Subsequently, an unclear specification will cause a great harm to the consumers if they have an allergy to a certain ingredients in the products. If it is very serious, it will cause the legal dispute. According to the (Daily Mail Reporter, 2008) the poison milk has killed three children and 6000 child in China is made sick due to the use of the melamine additive in producing the milk powder. This is not only a disaster for the Chinese children but also destroy the Chinese milk industry. Now, more and more Chinese consumers import milk from the Hong Kong, Thailand, New Zealand or other foreign countries. They do not trust the local manufacturer any more. It will take a long time to rebuild the confidence for the local producers. In addition, some manufacturers did not write any caution or warning statements. It is very dangerous. For example, some products like jelly will harm the children under three. They will easily swallow the jelly and causes suffocate in just a few minutes. This is because the body self-protection mechanism of the child is not well-developed. When they eat the jelly, the jelly will prone into the trachea easily and consequently results in the asphyxiation.
3.         Potential food risk related with the packaging
During the packaging, vendors may have the printing errors, use wrong printing plates and use a harmful or unsterilized packaging materials. The printing error and wrong printing plate during the packaging will cause the above damage as well and the usage of a harmful or unsterilized package in will make people sick. For example, for some products made in glass bottles need to have a full sterilization. Some bacteria may remain in the glass bottles when they are not completely being sterilized. Then, the virus will go to the genital tract through the month. Furthermore, the excess packaging will increase the fake. Sometimes, false makers will purchase the excess packaging and use them to make the fake.
Woolworth’s Treatments
After analyze and evaluate the above risks, it creates the WQA standard. WQA stands for the Woolworths quality assurance. This standard protects the food quality, security and legality and helps the company to build trusts among the consumers. Chiefly, to become a vendor in Woolworths, they must meet WQA standard. It covers all the aspects of bulk, proprietary and ingredients sold in the Woolworths expect for the seafood, live animals and eggs and identifies all the safety and quality requirements on food for the suppliers. First, all the vendors must provide the following information to Woolworths (Woolworths, 2013).
l  Organization structure- give an organization chart to specify all the job positions in the company and especially demonstrate the persons who in charge of the product quality, security and legality.
l  Document register- provide a list of documents to describe the work instruction, food security policies and each vendor must develop a food quality management system
l  Harvesting information- a timetable of the plant development includes the mature period and the agricultural chemical utility.
l  Producing information- report the raw material selection, manufacture details, packing process, inspection certificates and storage, warehousing and transportation details.
Based on the above information, Woolworths could conduct a supply chain management on all the direct, indirect, local and international suppliers.
Second, Woolworths conducts the process control. All the vendors should develop a HACCP Plan to assure the integrity of the food supply. According to Paster (2007), HACCP (Hazard Analysis and Critical Control Points) system is a scientific information system for process control. It reduces the contaminants at critical areas all covered the food manufactory, transportation and preparations so the food safety is increased. To develop a HACCP Plan, it has seven principles.
l  Conduct a hazard analysis to define any biological, chemical and physical aspects which may result in food insecurity.
l  Identify critical control points at which control can be applied to prevent, reduce or even eliminate the hazards.
l  Establish the Critical Limits which identify the maximum and minimum value for preventive measures related with each identified critical control points.
l  Set up the monitoring procedures. They are the requirements for the critical control points and these procedures can be used to modify the processes and improve the controls.
l  Set up the corrective actions to be taken when deviation occurs in the procedures. Deviations are the problems which will cause the failure to meet with the critical limit.
l  Initiate a verification procedures to determine the time and process to verify and update the Hazard Analysis and Critical Control Points system.
l  Initiate the detailed verification procedures to create proper Hazard Analysis and Critical Control Points records for compliance the written documentation with the Hazard Analysis and Critical Control Points plan, help the retailer to trace the ingredients history and final product and narrow the deviation.
Third, it regulates all the specifications and packaging. Specifications in each product should demonstrate all the product attributes and all the ingredients and additives used in production. This regulation ensures all the specifications in the products are accurate, complete and true. It implies that all products must fully compliant to the specification so the accidents like horse meat scandal and fish fraud cannot happen. According to the specification regulation in Woolworths, all specifications contain the details of the product preparation, batch number, date, traceability, good formulation, nutrition, processing aids, source of raw materials, a legal ingredient statement, good claims, allergen cross contact, package, storage and transportation requirements and instructions for the consumers and Woolworths, preserve methods, shelf life, safety and quality parameters. Furthermore, all the labels should in accordance with the relative law and regulation and clearly announce the GMO, country of origin, country of manufacture, warning statements and MRLs. Additionally, the packaging should in accordance with the laws and regulations in the country of production. It has a strict management on the surplus packaging and products that the manufacturer could not give any excess finished product to their staffs or resold.
Monitor and review and continual improvement of the framework
Woolworth continual improves the framework. Now it has updated its WQA (Woolworths Quality Assurance) standard 8 times. It now uses the WQA standards version 08 to conduct risk management on food supply (Woolworths, 2012). In addition, it review and modify the WQA certification frequently. Once every 6 month, the Woolworths Quality Assurance team will review the risk management processes. Subsequently, in order to ensure all the vendor exactly know the WQA standard and operate based on the standard. It organizes the frequent, special, unannounced and ethical audit. Similar with the WQA review, the Woolworths Quality Assurance team audits the vendors once every 6 months. Besides, if vendors are found not comply with the WQA requirements during the frequency audit, a special audits will be conducted after the vendors have adjusted the operation. The special audit will not be announced in advance. Subsequently, Woolworths will also conduct an indefinite ethical audit to make sure the vendors maintain the highest ethical standard in their business operations.
Basically, the risk management on food supply in Woolworths is in accordance with the AS/NZS 4360 and ISO31000 standard. Its own WQA (Woolworths Quality Assurance) standard defines the context of the company, identify the risks during the food supply, analyze and evaluate these risks and finally make the treatment. In addition, it also conducts regular monitor and review to make sure its own WQA standard is reasonable, relevant and up-to-date and can be clear understood by all the stakeholders but Woolworth does not identify clearly who is responsible for the risk management. It just said that the Woolworths Quality Assurance team are in charge of the risk management review and monitor and audit the vendors but who are responsible for the risk management processes are not clearly defined. It should have special department and staffs to negotiate will the vendors, make sure they understand the WQA standard not just audit them. It is the process of the communication and consultant during the ERM framework. Subsequently, it should also have the special department and staffs to in charge of the different areas in WQA standard. For example, it is not reasonable that a department should responsible for the product packaging and specification, conduct the process control on the HACCP Plan and record all the information of the vendors to conduct a supply chain management at the same time. As a result, Woolworths should develop a clear assignment of responsibility to make sure the division of labor is clear-cut.
To sum up, Woolworths Limited is an excellent food retail seller in Australia. To conduct a significant risk management on food supply, it creates a world class shopping experience for the consumers that all the food they sold are safe, fresh, green & healthy and have outstanding quality. Chiefly, its WQA (Woolworths Quality Assurance) is the core of the risk management. It is in accordance with the AS/NZS 4360 and ISO31000 standard. It makes excellent treatment for the company through a thorough understands of the current business context, potential risk, effect and likelihood. If it could have a more clear division of labor, the risk management will be excellent.

AS/NZS 4360, 2004, Risk management, Standards Australia/Standards New Zealand, Sydney.
AS/NZS ISO 31000, 2009, Risk Management Principles and Guidelines, Standards Australia/Standards New Zealand, Sydney.
Daily Mail Reporter, 2008, China’s poison milk kills three children and leaves 6,000 sick, Daily Mail Reporter, viewed 21 April 2013,
Hartman, B 2011, Investigation Uncovers Rampant Fish Fraud, BBC News, viewed 21 April 2013,
Power, M & Hutter, B 2005, Organizational Encounters With Risk, 1st, Cambridge University Press, Cambridge, USA
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