Evaluation of Coles Group Ltd Corporate Level Strategies

This report evaluates and examines Coles Group Ltd. which is an Australian based company and grocery retailer dealing in chain of supermarkets. The evaluation of Coles corporate level strategies and its implementation will help in gaining an insight about how the company acts conjointly while attaining organisational objectives and goals. The report will also analyse relationships between functions, structure and procedures along with individual performance role to understand how they are responsible for firm’s failure or success.

[Date]
MGT 510
STRATEGIC MANAGEMENT
STUDENT NAME
INSTITUTIONAL AFFILIATION(S)

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Executive Summary
This report will evaluate and examine Coles Group Ltd. which is an Australian based
company and grocery retailer dealing in chain of supermarkets. The evaluation of Coles
corporate level strategies and its implementation will help in gaining an insight about how the
company acts conjointly while attaining organisational objectives and goals. The report will
also analyse relationships between functions, structure and procedures along with individual
performance role to understand how they are responsible for firm’s failure or success. After
presenting critical evaluation, this report will recommend the management of the company
two alternative strategies that can ensure success of Coles in current competitive business
environment.

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Table of Contents
Executive Summary...................................................................................................................1
Introduction................................................................................................................................3
Strategic plans and objectives of Coles......................................................................................3
Corporate level strategies...........................................................................................................4
Strategy implementation............................................................................................................5
Critical evaluation of strategies implemented............................................................................6
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
Coles Group Ltd has an ironic history of no less than 90 years. Founded by George James
Coles in the year 1914, Coles had established itself as one of the leading supermarkets in
Australia. Due to disruptive strategies, the company underwent many strategic changes in
past few decades. In 2007 August, Wesfarmers purchased Coles for AU$22 billions and
appointed UK based retailer Ian McLeod as company’s Managing Director. Coles, under the
leadership of new leader and strategic implementation of policies has been able to regain its
lost position. Presently, Coles owns more than 140,000 stores in Australian region
contributing 4.1% in country’s GDP and employing around 100,000 employees while making
more than 11 lakh transactions per week (Coles, 2018).
Strategic plans and objectives of Coles
Presently, Coles business growth plan and vison statement are grounded on following four
components:
 Regain its leading position in food retailing business, Woolworths being in top
position.
 Extend its business operations in diversified marketplace like hotels, Petro stations
and liquor.
 Maintaining quality of products along with reducing prices as maximum as possible.
 Maximising shareholders value by adding more products in its portfolio (Advameg,
Inc., 2018).

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Corporate level strategies
Coles espouses integrated strategy in which the company utilises combination of both
differential elements for competing with rival companies and cost leadership tactics. With
efficient supply chain management, Coles has been able to minimise cost structures along
with adding brand image to differentiate itself in terms of quality as well as enabling
regularity in supply. Strategic factors like considering future threats and building flexible
work environment to implement necessary changes can also be associated with Coles
survival. Corporate level strategies formulated by Coles focuses on making Wesfarmers
portfolio management concentrate on diversification and expansion of its business across
other industries (Wesfarmers Limited, 2017). Market penetration strategies adopted by the
company grabs market shares through expansion of Coles business operations in existing as
well as new marketplace. The company has been able to strengthen its operations by
identifying sustainable growth opportunities through strategic marketing and implementation
of effective corporate level strategies. Coles faces many issues while operating in Australian
retail business environment as deficiency in environmental projects effects external relations
with the customers. However, Coles strategies to maintain corporate social responsibilities
and other practices like managing waste reduction helps it to sustain in Australian business
environment effectively (Coles Group, 2008).
The corporate level strategies undertaken by Coles also involves integration of cost
leadership along with differentiation strategies. These strategies further help company in
offering its customers value added products and that to in minimum prices as compared to its
competitors. Through economies of scale and cost minimisation factors, Coles develops
customer relationships also by offering satisfactory products. Product differentiation strategy
of the company helps them to offer those products that are not available in other companies

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which in turn attracts new customers in effective way. Product expansion strategy of Coles
allows it to offer new products, but the company restricts itself in offering new products in
fresh markets to play securely in market expansion process. All the strategies formulated by
Coles fits internal as well an external environment while ensuring that the company remains
as one of the pioneers in Australian retail market (Coles Group, 2008).
Strategy implementation
Strategic Management principles followed by Coles is maintained due to superior leadership,
utilisation of effective mechanism and performance measurement. The employees in the
origination act as an integrated team and thus implementation of strategies is managed and
processed in critical and effective manner. Since Coles is strategically driven firm, the
strategic implementation enables implementing suitable policies that fulfils demand of
present business environment (Dunford, Palmer, & Benveniste, n.d.). The management of
Coles believes that every individual is important during strategy implementation process in
both industrial as well as organisational level. Therefore, the leaders along with top level
management of the company act as mentors to enhance associations with employees along
with establishing procedures that fulfils Coles core business objectives (Sandeep, 2012).
The process of transformational strategy assists Coles in engaging employees in
company’s management level, depending upon the situation, which brings a sense of
ownership among them. According to Osborne & Hammound (2017), if employees are
treated well, chances that they will provide extra efforts get increased. The strategies made in
Coles corporate level is divided among various departments of the organisation that are
further managed and governed by individuals. The communication and effective flow of data

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is achieved through transformation of plans into actions after internal and external factors
related to the company are evaluated. Coles ensures that individual performances are manged
critically for which the company makes a regular follow up of different departments with the
help of advanced technology and strategic human resource management (Nenycz-Thiel,
2011). The implementation of business strategies as well as performance management are
made to comprehend strategic objectives of the company and thus, Coles leads retail business
in Australian food and beverage related industry.
Critical evaluation of strategies implemented
The corporate level strategies divided and managed in different levels of the company shows
that Coles has an integrated competitive business approach that utilises both differential as
well as cost leadership elements to minimise costs, enhance brand image and provide with
effective supply chain systems (Advameg, Inc., 2018). Three most significant capabilities
evaluated after studying Coles corporate level strategies are:
 Effective supply chain management: With efficient distribution network and
acknowledging tangible and intangible company assets, Coles possess strategic and
specialised management due to which it also receives favourable public image.
 Maintaining effective brand image: Coles is a well reputed company dealing in food
and grocery related items. The company always follows promotional strategies like
campaigns and slogans to attract more customers. This strategy even enhances Coles
brand image along with its visibility in market.

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 Effective Top Management: In spite Coles underwent many recessionary pressures,
the company had been able to grow in terms of revenues. This attributes to Coles
efficient management and leaders who had steered Coles in this competitive
marketplace by achieving continuous growth (Coles Group, 2008).
Recommendations
After evaluating Coles company strategies, few recommendations can be made that can assist
Coles management in making further strategies for the company. Contemporary organisations
are focussing on the capabilities of social media and online shopping where products are been
sold to national as well as foreign countries. Since Coles has not shown much growth in its
international strategies and development, implementation of internationalisation through
social media and internet can provide Coles long term benefits (Saha, 2015). Marketing and
product differentiation strategy of Coles shows that the company does not allow offering new
products in fresh market. Alternatively, Coles must change this strategy and try introducing
new and specialised products that suits extended market demands along with other products
of the company (Dunford, Palmer, & Benveniste, n.d.).
Conclusion
The above report has been prepared after evaluating corporate level strategies of Coles
Company based in Australia. The examination of Coles business and operations processes
reveals that the company had gone severe change management process that had resulted
positive for it. Due to superior management and efficient leader, the company has been able

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to place itself above other competitors present business environment. The internal
environment of the company understands the results of policy implementation and how they
can affect external environment for which Coles ensures maximum utilisation of available
resources. With effective supply chain and strategic decisions along with considering future
growth opportunities, Coles befitted itself strategically in current business environment
irrespective of facing internal as well as external changes.
References

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Advameg, Inc. (2018). Coles Myer Ltd. - Company Profile, Information, Business
Description, History, Background Information on Coles Myer Ltd. Retrieved from
https://www.referenceforbusiness.com/history2/9/Coles-Myer-Ltd.html
Coles. (2018). Coles: Our History. Retrieved from
https://www.coles.com.au/about-coles/centenary
Coles Group. (2008). Coles Group Limited Annual Report 2007. Retrieved from
http://media.corporate-ir.net/media_files/irol/14/144042/2008_pro_rata_entitlement/
asx_releases/coles_acquisition/coles_shares/2007.pdf
Dunford, R., Palmer, I., & Benveniste, J. (n.d.). Strategy for Sucessful Entry into a
Concentrated and Highly Competetive Market. Retrieved from
https://www.anzam.org/wp-content/uploads/pdf-manager/2374_DUNFORD_RICHA
RD_BSP-01.PDF
Nenycz-Thiel, M. (2011). Private labels in Australia: A case where retailer concentration
does not predicate private labels share. Brand Management, 18(08), 624-633.
Osborne, S., & Hammoud, M. S. (2017). Effective Employee Engagement in the Workplace.
International Journal of Applied Management and Technology, 16(01), 50-67.
Retrieved from https://scholarworks.waldenu.edu/cgi/viewcontent.cgi?
article=1239&context=ijamt
Saha, A. (2015). A Study on “The impact of online shopping upon retail trade business”.
IOSR Journal of Business and Management (IOSR-JBM), 74-78.
Sandeep, K. (2012). Analysis of the grocery industry Coles Supermarkets. Retrieved from
http://www.academia.edu/4615254/Analysis_of_the_grocery_industry_Coles_Superm

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arkets
Wesfarmers Limited. (2017). Wesfarmers 2017 Annual Report. Retrieved from
https://www.wesfarmers.com.au/docs/default-source/default-document-library/2017-
annual-report.pdf?sfvrsn=0