Strategic Management of Coles Supermarkets Australia Pty Ltd

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
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1STRATEGIC MANAGEMENT
Table of Contents
Post 1..............................................................................................................................2
Introduction....................................................................................................................2
PESTEL analysis of external environment....................................................................2
Key factors and their implications on opportunities and threats....................................2
Overall impact of industry growth in future..................................................................3
Conclusions related to macro-environmental analysis...................................................3
Post 2..............................................................................................................................3
Industry analysis.........................................................................................................3
Porter’s five forces analysis of Coles.........................................................................4
Conclusions related to the analysis............................................................................5
Post 3..............................................................................................................................5
Internal analysis.............................................................................................................5
Key resources, core competencies and capabilities of Coles.........................................5
Strengths and weaknesses of Coles................................................................................6
Conclusions based on the analysis.................................................................................6
Post 4..............................................................................................................................7
Business level strategies.................................................................................................7
Evaluation of the business level strategies implemented by Coles................................7
Value chain analysis of Coles........................................................................................7
Conclusion......................................................................................................................9
References....................................................................................................................10

2STRATEGIC MANAGEMENT
Post 1
Introduction
Coles Supermarkets Australia Pty Ltd. operates as Coles is the supermarket industry
of Australia. Coles was established in the year 1914 and operates more than 800
supermarkets all over Australia. The employee base of Coles is around 100,000 and has
acquired more than 80% of total retail sector along with another major organization in the
retail industry named Woolworths (Supermarkets", 2018).
PESTEL analysis of external environment
Political factors
 Regulations of the government can
affect the duopolistic nature of the
retail sector of Australia.
Economic factors
 The lack of spending of Australian
customers affects the retail sector.
 The negotiating capability of the raw
material providers in the retail
industry have reduced.
Social factors
 Coles has thereby received an award
of the Fairtrade Retail Chain of the
Year.
 The company has thereby taken
many steps based on social needs of
community.
Technological factors
 The levels of internet usage have
affected the customers of Coles.
 The company has implemented self-
checkout facilities.
Legal factors
 The legal actions that have been
faced by Coles had an adverse effect
on the reputation of the company.
 Implementation of strict codes are
important (Aghazadeh, 2015).
Environmental factors
 Eco-friendly supermarkets.
 Usage of the sustainable products
(Barros, Hernangómez, & Martin-
Cruz, 2016).
Key factors and their implications on opportunities and threats
The major factors that are able to affect the methods by which retail organizations
operate are built on the approaches which have been implemented by the company in
different processes. The private label based strategy is a major opportunity that can be

3STRATEGIC MANAGEMENT
effectively used by the organization in order to operate in the industry. The legal actions
which have been faced by Coles in the industry have proved to be a major threat to its
successful operations. The social changes which have taken place in the Australian retail
industry have posed a threat to the operating processes (Daspit J. , et al., 2017).
Overall impact of industry growth in future
The PESTLE analysis of Australian retail industry is based has depicted that the
organizations which operate in this industry need to develop new strategies in order to
compete in the market. The organizations are hereby able to function in a cost-effective way
with the help of their effective strategies (Demir, Wennberg, & McKelvie, 2017). The
external environmental factors thereby need to be analysed in an effective manner by the
strategic managers.
Conclusions related to macro-environmental analysis
The macro-environmental analysis of Coles has helped in providing an overview of
the industry in an effective manner. The regulations of the Australian government and
spending based capacity of the customers play an important part in the revenues of Coles.
The demands of customers and the technological advancements in the industry can affect the
retail industry and profitability of Coles.
Post 2
Industry analysis
Industry analysis can be termed as a tool which can help the organization to
understand its position with respect to the other companies which are operating in the
industry. The organizations thereby need to understand the forces that are present in their
respective industries so that they are able to operate in a profitable manner. The managers
need to analyse the industry in order the understand the rivals (E. Dobbs). The industry will