Strategic Information System for Coles Supermarket

RUNNING HEAD: Strategic Information System
Strategic Information System

Strategic Information System 1
Contents
Introduction......................................................................................................................................2
External Analysis.............................................................................................................................2
Background of the Business.........................................................................................................2
Industry........................................................................................................................................2
General Environment Analysis....................................................................................................3
The Industry Environment...........................................................................................................4
Competitive Environment............................................................................................................5
Opportunities and Threats............................................................................................................5
Internal Analysis and Proposal........................................................................................................6
Tangible and Intangible Resources of Coles Supermarket..........................................................6
Identification of Capabilities........................................................................................................6
Core Competency Analysis..........................................................................................................7
Proposal of Suitable Information System Solution......................................................................7
Evaluation of Proposed System Solution.....................................................................................8
Conclusion.......................................................................................................................................8
References........................................................................................................................................9
Bibliography..................................................................................................................................11

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Introduction
Strategic information systems are the information systems which assists an organization in an
effective management of information and strategic decision making. These systems play an
important role in changing or supporting the enterprise’s strategy. It is easily aligned with the
structure and strategy of the business (Arvidsson, Holmstrom and Lyytinen, 2014).
This report focuses on the strategic analysis of Coles supermarket. It covers the business
background, industry, general environmental analysis, industry environment, competitive
environment along with the opportunities and threats of Coles. Furthermore, this report provides
resources, capabilities and core competency analysis. On the basis of this analysis, a suitable
information solution has been recommended for Coles.
External Analysis
Background of the Business
Coles Supermarkets Australia Pty Ltd is the retail, customer service and the supermarket chain of
Australia having its headquarters situated in Melbourne. The company trades under the name
Coles. However, the company is owned by the parent company Wesfarmers.
The company was founded in the year 1914 in Collingwood, Melbourne by George Coles. There
are approximately 807 supermarkets of Coles throughout Australia. Some of its stores are also
re- branded as BI- LO Supermarkets. Furthermore, the company has employed more than
100,000 employees for the effective performance of its operations. The market share of Coles
along with its competitor Woolworth amounts to approximately 80 % of the total market share of
Australia. Coles also has its online store where it provides different offers to its customers
including click and collect and home delivery options (Coles, 2018).
Industry
Coles belongs to retail, consumer services and supermarket industry. This industry offers a wide
variety of products to the customers but has a small range of merchandise as compared to that of
a big- box market and hypermarket. The industry is based on the strategic level decisions
undertaken by the retailers which play an important part in the market positioning. In the digital

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age, broader markets are being reached by the increasing number of retailers in the industry by
making sales through multiple channels such as online retailing and bricks and mortar.
General Environment Analysis
Political/ Legal- the performance of Coles supermarket is greatly affected by the political
condition of Australia. The competition policy of Australia prevents the elimination of
competition by the major market players i.e. Coles and Woolworths. The market dominance of
these players have increased the struggles of small retailers in the industry (Webster, Bargon and
Carter, 2015).
Economic- the economic market conditions of Australia have significantly affected the
performance of Coles. This is due to the fact that the markets of Australia have suffered a decline
in the economic activity. The retail operations of Coles is also adversely affected by the
weakening of Australian dollar and currency exchange rates fluctuations (Vinkeles Melchers,
Gomez and Colagiuri, 2009).
Social- high societal and community development across Australia have affected the Australian
retail industry. Customers increasingly demand a socially responsible organization. Various
social initiatives undertaken by Coles have resulted in creating a significant impact over the
customers.
Technological- Retail industry is significantly affected by the technological developments across
Australia. Green refrigeration technology has also been adopted by Coles for storing the
perishable products for a longer period of time. It is also taking steps for enhancing the online
shopping experience of the customers (Webster, 2015).
Physical- The business practices and consumer behavior have changed over a period of time
which affects the retail industry of Australia and Coles supermarket. Coles has taken various
initiatives for the society and its upliftment and ensures that its business operations do not leave a
negative impact on the environment.
Global- Millions of Australians have already been served by Coles in Australia for over 100
years. However, it is further planning to expand its operations in different parts of the world in
the near future.