Environmental Scan for Coles Supermarkets Australia Pty Ltd

Business Environment 1
Environmental Scan for Cole Supermarkets Australia Pty Ltd

Business Environment 2
Contents
Introduction.................................................................................................................................................3
Main Discussion..........................................................................................................................................4
Task 1 Impact of the External Environment on Coles Supermarkets.......................................................4
Task 2 Application of Appropriate Frameworks to resolve the Challenges Faced by the firm................6
Task 3 Industry Factors in the Context of the firm’s Decision-Making Process....................................10
Conclusion.................................................................................................................................................12
References.................................................................................................................................................13

Business Environment 3
Introduction
Coles Supermarkets Australia Pty Ltd. is the second largest supermarkets in Australia after
Woolworths. Coles is a subsidiary of Wesfarmers and operates its retailing business operations
and customer services through Full Service Coles Supermarkets (more than 800 supermarkets in
Australia), Express stores, and Coles online supermarkets (coles.com.au). Coles Supermarkets
aims at developing good customer trust by delivering the quality products, great value,
outstanding customer service, and efficient service delivery. It also greatly focuses on forming
the lasting relationships with the Aussies farmers and the satisfaction of the stakeholders’
interests and satisfaction (Coles Pty. Ltd. 2017).
This report evaluates the external environmental impact on business operations, market share, the
brand positioning, and sales revenues for Coles Supermarket. It also applies the appropriate
frameworks to resolve the complex issues and challenges faced by the firm and specific industry
factors in the context of the firms’ decisions. The final task analyzes the specific industry factors
for influencing organizational decision-making.

Business Environment 4
Main Discussion
Task 1 Impact of the External Environment on Coles Supermarkets
Coles Supermarkets is the second biggest Australian supermarketthat operates its business in the
regulatory environment and the competitive marketplace of Australia. There are several external
factors for influencing the business operations, growth aspects, and market positioning of Coles
in the Australian industry. These factors include the competitor strategy, government regulatory
system and economic policy, consumer behavior and public opinion that are following discussed
in detail:-
Government Regulatory and Economic Policy- this contextual factor comprises the political
environment (stability status), economic conditions, regulation mechanism, trade legislation and
tariffs, and taxation that can affect the retailing operations of Coles. Currently, Coles operates in
a stable political environment where the national government keeps low regulation barriers and
low trade tariffs for supporting the retailing operations of the supermarkets. For example, the
federal government supports the retailing businesses through the competition policy that
eliminates the competition between Woolworths and Coles. The trade legislation, like consumer
protection laws, employment legislation, and fair competition policy in Australia enable Coles
Supermarkets to operate the smooth business by following the essential trade legislation and
policies (Wesfarmer, 2017).
Moreover, the fluctuating economic conditions in the international markets as well as in
Australia affect the currency value and national economy (GDP) that in turn affect the economic
status and financial performance of the Coles Supermarkets. Currently, Australia is 14th largest
economy (GDP 1.69 trillion) and the second wealthiest nation after Switzerland where the
disposable income per person is enough to afford the investment on the essential retailing