Organizational Development: A Case Study of Coles Australia

This report analyzes the principles and theories of organizational development in contemporary business settings using Coles Australia as a case study. It includes problems and challenges that are confronted by organization are faced by company. Further, the report includes SWOT analysis which is used by the company for organizational development. Considering the issues, the recommendations are proposed to be supported with the justification.

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Contents
Introduction................................................................................................................................2
Overview of company............................................................................................................2
Organization development.........................................................................................................3
SWOT analysis...........................................................................................................................5
Recommendations......................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Organization development is an objectives based approach to the change in system within an
organization. The development allows the company to form and sustain with the new desired
state for the entire company. The report throws light on areas related to organization
development in the competitive market. The case that has been selected for analyzing the
principles and theories of the organizational development in contemporary business settings
is Coles Australia. The report includes problems and challenges that are confronted by
organization are faced by company. Further, the report includes SWOT analysis which is
used by the company for organizational development. Considering the issues, the
recommendations are proposed to be supported with the justification.
Overview of company
Cole’s supermarket Australia is retail and consumer service chains with the headquarters in
Melbourne as section of the Coles group. In the year 1914, the company came into the
existence because of George Coles that operates 807 supermarkets throughout Australia. The
company offers wide range of products because it is a retail giant due to which it meets the
needs of the customers present in market (Coles, 2019).

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Organization development
In the dynamic environment, every company considers organizational development as this
strategy contributes the company in enhancing the viability and effectiveness of the company
because there are different programs of organizational development. OD become quite
successful with different professional consultant as they provide the high services with the
different programs to the different organizations (Namada, 2018). Coles Company considers
the organizational development as it helps the organizational to accomplish the high
performance and effective quality of work-life. The organization development involves the
change management which is majorly designed with the motive to focus on the process of
Coles change management which is a retail giant in Australia. In order to meet the goals and
objectives, it is essential for the company to make the changes as well as development
(Anderson, 2016). The below given are some of the issues as well as challenges that are faced
Coles company in the market of Australia.
Technological changes: - The rapid growth in market in terms of new technology makes
Coles company which is required to be implemented. The company brings new products
within the market because they want to meet the demand of their customer for which they use
new technology. The operations of company involves effective utilization of technology as
this is only way through which they can make their operations smooth for meeting the
growing needs of the customers (Henderson and Boje, 2015). The company finds the issue
with change in technology as this leads to change in operations of Coles. In the market, there
are different retailers present in the market of Australia that adopt the new technology and
bring the development in their organization which is possible with the effective strategies. To
compete in market, it becomes essential for Coles to adopt the new technology so that
development can take place within the organization (Basadur, Basadur and Licina 2012).

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Lack of professional expertise: - The major issue which is faced by the Coles Company is
related to the professional expertise. The professional expert is required to company with the
motive to bring the development that leads to efficiency in operations performed by
company. In the current era, it becomes difficult for the Coles majorly to understand the ways
through which they can bring innovative strategies within organization that can improve work
(Henderson and Boje, 2015). The professional will put efforts and ability to their best so that
they can leads to the benefit for company by applying the different techniques as well as
strategies.
Ethical issues: - The ethical issues are considered as the major challenges which are faced by
Coles in the market. This issue requires attention of company because this helps the company
in improving their effectiveness within the operations. The organization can be formed with
the organized as well as appropriate culture. Further, every organization has the set of values,
principles and beliefs which provide the support to company in a manner to check what their
employees are performing in the market. The major ethical issues related to the Coles
involves when it was claimed by ACCC in 2014 that Coles Company behave badly to their
suppliers (Knight, 2014). It has been found that Cole’s behavior was tough towards the
suppliers which took place as Coles has been accused of high fining to the suppliers majorly
for the short as well as late deliveries. This behavior of the Coles Company with suppliers
affects the operations and they won’t be able to continue with the suppliers. Along with this,
they are required to form the tie-up with the new suppliers. Thus, this issue is required to be
considered by the Coles that they are supposed to form the strong bond with the suppliers in
order to meet their expectations (Jones, 2013).
This shows the wide range of the issues or challenges which is faced by Coles Company in
the market of Australia. These issues reflect that there is need of the organizational
development strategies and theories as this will bring the improvement in efficiency.

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SWOT analysis
It is essential to conduct the internal as well as external analysis which is possible with the
help of SWOT analysis. The analysis involves strengths, weaknesses, opportunities and
threats that are faced by the company (David and David, 2013). The elements of the analysis
are majorly linked with the organizational development. The analysis is given below: -
Strengths
 The pricing strategy of the company is strength as it offers the product and services to
the customers at the low price which is one of the way through which they can win
mind and heart of customers (Coles, 2019).
 The retail giant is able to provide the benefits to the customers by offering them
online services options which is essential for comprising the orders as well as delivery
of those orders.
 The strong image is maintained by the company which is possible with the effective
changes in the strategies of organization that are linked with the development (Calder,
2013).
Weaknesses
 The major weakness of the company is that it is not able to attain the high profits
because they always keep low cost of products which affects their profit. In addition,
this low profit of the company affects them because they won’t be able to invest
amount in strategies or techniques that leads to innovation. This will definitely create
the impact on the organizational development as well as influence the efficiency
(Coles, 2019).
 Another weakness that has been witnessed related to the company is that Coles get
involves in the ethical issues. The ethical issues which are faced by the company leads

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to the public sentiment for the audience for the company which not only influence
their sales but trust of customers. For instance; Coles case with suppliers affects them
in market considering the terms of reputation in market. This case has led to the
impact on the organizational development of the company but has also influence the
customer’s mindset as well as trust.
Opportunities
 Coles has opportunity to bring organizational development by implementing the
strategies through which they can reduce the issues majorly faced by the company.
Organizational development will improve efficiency of company in the market (Hitt,
Ireland and Hoskisson, 2012).
 Coles has seizes control of the supply chain as well as filtered the production with
revenue at diverse points.
 Coles has the wide scope for expanding their business operations across the different
markets to make their brand globally accessible as well as recognized.
Threats
 The major threat that has been witnessed by the company involves rise in the
supermarket as well as retailing companies that leads to the low price margins.
 The change in the regulations that involves the political as well as legal elements
leads to the threat which is essential to be considered because this can influence the
organizational development of company (Pettigrew, 2014).
It has been witnessed that the company can use their strengths effectively to bring the
development in organization. Along with this, Coles has opportunity in market to bring

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improvement within operations. However, the company faces threat while bringing the
development within organization.
Recommendations
The recommendations have been provided to the Coles to bring the improvement in such a
way that they can bring the organizational development.
Appointment of professional expert: - It is suggested to company to appoint the
professional that is equipped with expertise knowledge for bringing development within
organization. This appointment will bring the vast improvement as the innovative strategies
and techniques will be adopted by the company which enhances the effectiveness.
Lewin’s change management model: - It is recommended to the company to apply the
Lewin's Change Management model which will help to bring the changes. In this model of
the change the company will unfreeze the actual situation of the company and then make the
changes which are essential for the development of the organization (Cummings, Bridgman,
and Brown, 2016). After this, the company refreezes the entire changes which are made by
them. This model can be applied by company for bringing essential changes. Coles Company
can make the changes in the technology by unfreezing their existing system and then making
the changes and refreezing all the changes. Thus, this will bring improvement in the
operations of the company and lead to excellence.
Long-term relationship: - It is suggested to company to form the long-term relationship
with suppliers as it has been found that there are issues that have been witnessed among
Coles and their suppliers. The long-term relationship will help the Coles Company to perform
smooth operations and maintain flow of raw material and other products.

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Conclusion
In the end of report, this can be concluded that organizational development is essential for
every company as tis leads the improvement in the efficiency as well as performance. Coles
Company finds that organization development is essential for them as this leads to the
success. The issues or problems which are majorly faced by Coles Company are discussed
which shows that many factors influence the working of the company. Further, the SWOT
analysis is done which shows the strength of company that is considered for the improvement
in the operations. In the end of report, some of the recommendations are provided to the
Coles Company as this will lead to improvement in performance as well as efficiency of
company.

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References
Anderson, D.L. (2016) Organization development: The process of leading organizational
change. Sage Publications.
Basadur, M., Basadur, T. and Licina, G. (2012) Organizational development. In Handbook of
organizational creativity (pp. 667-703). Academic Press.
Calder, A.M. (2013) Organizational change: Models for successfully implementing change.
Coles (2019) Our History [Online] Available from:
https://www.coles.com.au/about-coles/centenary [Accessed on 22nd August 2019]
Cummings, S., Bridgman, T. and Brown, K.G. (2016) Unfreezing change as three steps:
Rethinking Kurt Lewin’s legacy for change management. Human relations, 69(1), pp.33-60.
David, F.R. and David, F.R. (2013) Strategic management: Concepts and cases: A
competitive advantage approach. Pearson.
Henderson, T. and Boje, D.M. (2015) Organizational development and change theory:
Managing fractal organizing processes. Routledge.
Henderson, T. and Boje, D.M. (2015) Organizational development and change theory:
Managing fractal organizing processes. Routledge.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E. (2012) Strategic management cases:
competitiveness and globalization. Cengage Learning.
Jones, G.R. (2013) Organizational theory, design, and change. Upper Saddle River, NJ:
Pearson,.

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Knight, E. (2014) ACCC claims Coles behaved badly to suppliers [Online] Available from:
https://www.smh.com.au/business/accc-claims-coles-behaved-badly-to-suppliers-20141016-
1174l9.html [Accessed on 22nd August 2019]
Namada, J.M. (2018) Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-
104). IGI Global.
Pettigrew, A.M. (2014) The politics of organizational decision-making. Routledge.