Coles Strategic Analysis

Coles strategic analysis
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Executive summary
This paper considers the consultant viewpoint of strategy development. It identifies strategy
through the creation of the organization goals and objectives on the long run and the courses of
actions that should be adopted to carry out these goals. The strategy is subject to change
according to the cyclical demand, competition intense and shifts in organizational power.
Strategy changes have increased with the transformation directed to open strategy‐making that
involves flexibility, transparency and responsiveness. This report analyzes Coles corporate
strategy; It used environmental scanning through implementing PESTLE analysis. Also, it
analyzed Coles' strategic management position by analyzing the process in which the
organization develops plans and implements them in order to achieve its goals. This paper
reviews the relevance of the topic and discusses the goal setting of organizations and particularly
Coles, strategy formulation that required conducting SWOT analysis to describe the internal
organization strengths and weaknesses and the external analysis to be able to define its
opportunities and threats. The three stages of strategy formulation, implementation and
evaluation were also investigated theoretically and applied to Coles new strategy after demerging
from Wesfarmers. The life cycle strategy of Coles was also analyzed to ensure continuous
demand for their products and services through investigating factors affecting business position
rate the market growth and growth potential, breadth of the product lines, level of competition,
market share, customer loyalty, technology and entry barriers. Finally, an application of
customer lifetime value management was conducted on Coles; through the analysis of the CRM
dimension and their effectiveness within Coles.

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Table of Contents
Introduction....................................................................................................................................3
Part A- Application of the strategic management cycle framework on Coles.........................3
Summary of recommendations.....................................................................................................6
How these recommendations are to be implemented.................................................................7
Part B- Application of customer lifetime value management on Coles....................................7
Conclusions.....................................................................................................................................9
References.....................................................................................................................................10

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Introduction
The contemporary business organizations recognize the importance of strategic management.
Every strategic process has three stages of strategy formulation, implementation and evaluation.
Business strategy changes according to the changing environment. Managers should formulate a
marketing strategy to be able to generate a competitive advantage and effectively position the
organization outputs (Soltani 2012).
Good business strategy is about thinking clearly through balancing insights, rational analysis and
problem-solving. In general, strategies are practiced in a complex environment (Tovstiga
2013).
In Australia, the grocery industry represents one of the most important industries that
significantly contribute to the economy. Food prices affect the consumers' daily life, the industry
employs a significant percentage of the workforce and it is networked with other industries in the
economy. The past five years have witnessed some changes in the supermarket's sector due to the
entrance of new players, like Costco and business expansion, like ALDI. The supermarkets have
developed new marketing and pricing strategies. Coles was founded in Australia in 1914. In
2007, Wesfarmers acquired Coles Group Ltd. Currently, Coles supermarkets is the second
biggest supermarket operating in Australia. It operates across all of the Australian states and
territories and it is characterized to be a bundling service, where all suppliers meet and customers
purchase their products from. Coles depends on the suppliers to be able to meet the customer
needs and adjust supply and prices according to their changing demand. It acquires 31% of the
grocery market, coming by this in the second place after Woolworths and the remainder of the
market is acquired by IGA and other grocers (Deliotte 2012; Hatch et al. 2019).
The following section analyses the strategic management cycle framework with an application
on Coles new demerge strategy. It provides recommendations and ways to achieve these
recommendations. Then the customer lifetime value management is the issue investigated with
an application on Coles.
Part A- Application of the strategic management cycle framework on Coles
1.1 Defining strategy
Strategy refers to the creation of the organization goals and objectives on the long run and the
courses of actions that should be adopted to carry out these goals. Every organization seeks to