Strategic Management of Coles Supermarket Australia

This report analyzes the key strategic influences that affect the chosen organization Coles supermarket Australia. It discusses the practices and policies of the strategy of the company and identifies the strategic implications of the organization. It identifies the strategic course of actions that can be adapted by the company in order to address the ever changing needs and demands of the customers.

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Executive summary
The purpose of this report is to analyze the key strategic influences that affect the
chosen organization Coles supermarket Australia. It discusses the practices and policies of
the strategy of the company and identifies the strategic implications of the organization. It
identifies the strategic course of actions that can be adapted by the company in order to
address the ever changing needs and demands of the customers. Further the report analyzes
and provides strategic goals and objectives that should be set by the company; it also
analyzes the implications of this organization. Lastly, it recommends steps to be taken by the
company to implement the goals and objectives of the company. It concludes bathe
discussion and by summarizing and demonstrating that the aim of the report has been
achieved.

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Table of Contents
Introduction................................................................................................................................3
Aim.............................................................................................................................................3
Findings......................................................................................................................................3
Key strategic influences affecting Coles Supermarket..........................................................3
 Impact of digitally engaged consumers.......................................................................4
 Increase in health conscious customers.......................................................................4
 Increased focus on sustainability.................................................................................4
Strategic implication of Coles supermarket...............................................................................5
Strategic course of action to be adapted by Coles..................................................................6
Strategic goals to be set and the implications........................................................................7
Recommendations......................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
The strategic influences in the market and economic conditions during the past years
have enabled the business organizations to consider certain strategic changes in order to make
the business profitable in the long run. The chosen organization is Cole’s supermarket
Australia, the company intends to take advantage of the arising opportunity in the market
trends and minimise the occurring threats which is associated with the ever changing and
evolving market trends and conditions. These changes in the business environment has
enabled to company to initiated strategic changes in the business organization to cope with
the market trends and increase its sustainability (Ashley & Tuten, 2015). The changes
includes emergence of digitally engaged food shoppers on the floor of retail supermarkets,
there is increasing awareness about the food safety with an increase in health consciousness
among the customers, further, the customers are increasingly concerned and are highly
focused on the sustainability efforts taken by the business organization.
Aim
The aim of this report is to identify the strategic influences that affect the functioning
of the selected organization that is Coles Supermarket Australia. The purpose is to identify
the course of action taken by the organization to address the circumstances for the long term
benefit of the organization.
Findings
Key strategic influences affecting Coles Supermarket
The industry of supermarket and food retail industry are changing constantly, there
are changes in terms of customer’s choice and preferences, the modifications in regulations

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and up gradation of technology that pressures the industry and enables it to makes strategic
changes.
 Impact of digitally engaged consumers
The customers are engaged in seeking fresh food items having quick access to them and
seek for new convenient experiences. In other words, the consumers today are continually
seeking for supermarkets with advanced technology which would enable them to have a
quick access to the items they are looking for (Bayne Schepis & Purchase, 2017). Therefore,
it is important for the business organization to implement changes in technology and enable
new ideas to serve the customer in order to attract the customers.
 Increase in health conscious customers
There is an evolving change in the consumer tastes and preferences, they are seeking
for variety of fresh food items and options of fat free from the grocers and other food
retail industry, therefore Coles need to adapt these changes to meet the customer demand.
There is an increase in need for transparency in food safety for the customer who is
highly health conscious (Burch, Dixon, & Lawrence, 2013). Therefore the company
needs to maintain its food safety. Further, there are regulations as well such as the Food
Safety Modernization Act (FSMA) for the food sector industry to ensure safe transport of
food and prevent the customers from food borne illness. Therefore, these changes and
new regulations in the business environment must be adapted by the organization.
 Increased focus on sustainability
Consumers are increasingly concerned about the initiatives taken by the supermarkets
towards sustainability and their efforts towards it. The consumers are interested to gain
information about the environmental impact caused by the business. Coles supermarket needs
to achieve sustainable and optimized operations and activities to address the need for energy

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efficiency and ensure the safety of food and food products offered to the customers by the
company (Godey, et al., 2016).
Strategic implication of Coles supermarket
Coles supermarket implements strategies to double down the evolving digital and
technological opportunities and fresh food. To address the changes in the market and the
consumer tastes and preferences the company has adapted and developed a differentiated
strategy which will enable the company to provide convenient experiences and east access to
the customers (Gu, & Ye, 2014). The company has enabled strategies to provide fresh
department and invest driving innovation in the private label products. Further the company
has increase 20% of its capital expenditure to initiate change in its strategies and give it new
direction in order to address to the changing needs and demands of the customers. The
company has increasingly spend on bringing evolution which would direct the activities if the
business to focus on the increasing demand for health and convince by the consumer. Further,
the company has renewed its primary focus on initiating range of innovation in their fresh
foods departments (Hardy, & Howe, 2015). It particularly focuses in respect to food products
provided by the company on the go and the convenience products. Coles super Australia is
tailoring stores to local demographics and incorporate activities to collect the services
provides to the customers. moreover, the company has shifting its focus on investing range of
various formats in order to address the growing need for flexible and convenient grocery
shopping of the customers. It has improved its services like home delivery, options like click
and collects concierges. Coles implement strategies to catch up with the rivals and maintain
its competitiveness; it has taken actions to invest in its online offers for its customers (Lewis,
& Huber, 2015). The company implemented strategies which enables to company to
continuously focus on its private level investments and it targets to improve the quality and

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breadth of the offer. The company, further plans to coincide its strategy with its concerted
effort to reduce the costs of the products in order to retain customers and ensure long term
profitability of the organization.
Strategic course of action to be adapted by Coles
The industry of food sector and the supermarket industry are constantly faces
changes, there are frequent changes in the laws and regulations and new technologies in the
business environment (Phillipov, 2016). Therefore it needs to adopt strategies and address the
issues in the industry. As there are digitally engaged customers in the market who seeks fresh
products with a quick service, the company needs to focus on the changes in the store format
in order to keep up with the demands and expectations of the customers. It needs to take
action and implement new shopping experience for its customers to maintain its
competitiveness in the market. It needs to expand its flexibility and enable new features along
with the existing facilities to continue integrating the advanced information technologies to
enhance the business activities and provide better service to the customer in order to meet the
changing needs and demands of the customers (Trevena, et al., 2015). It is important for the
business to provide entertainment in the stores for the customers and provide customized
shopping experiences. As per the food safety and the increase in health conscious customers,
the food retail company needs to adapt technologies and adapt facilities to meet the customer
demands and expectations. It needs to converge the concepts to keep up with the trends. In
order to enabled long term sustainability and profitability of the business it needs to
consistently deliver and maintain food safety as well as control shrinkage. It needs to
implement stop equipments which enable the company to maintain the standard of the food
products and maintain its freshness (Ashley & Tuten, 2015). To maintain its competitiveness

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and its reputation in the market, it needs to access the business activates and its impact on the
environment, which is an important factor to maintain sustainability. The company needs to
achieve sustainable and optimized operations which will help the company to address
efficiency and ensure food safety (Hardy, & Howe, 2015). Further, the company can
minimize power interruption, and protect the environment by reducing its power usage. It
needs to meet the new laws and regulatory requirements in order to avoid fines and losses.
This will help the company to maintain its competitiveness and sustainability.
Strategic goals to be set and the implications
The strategic goals of the organization includes growing the shareholder value, the top
goal of the organization must best et to increase the value of the organization by addressing to
the changing needs and demands of the stakeholder, shareholders and the owners of the
company (Lewis, & Huber, 2015). It can grow its earnings per share; the organization needs
to try to increase the earnings and profits of the company which can be measured by the
company quarterly and annually. The company can further increase its revenue and thereby
represent growth in the organization. Therefore, the strategic goal of the company must be set
to as it signals the health and profitability of the company (Trevena, et al., 2015). It can set
strategic value to provide best value to its customers. Apart from operating high quality
products, it needs to implement strategies to provide the best deal to its customers. It implies
that the customer’s needs to be provided with broad product offerings. The strategic goal
must be set which enables the company to offer to its customers the best products irrespective
of the price. It needs to provide reliable products and services; this goal would reflect that the
company targets customers who value reliability. It needs to, set strategic goals to implement
the most innovative products and services at a constant level and enable cutting edge
innovation for its customers (Gu, & Ye, 2014). Implementing this strategic will enable the

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company to remain competitive and maintain its market position. Moreover, the company cab
implement strategies to differentiate its products from its competitors. It need it implement
certain amount in innovations (Griskevicius, & Kenrick, 2013). It can use the strategic goals
and objectives to drive its investment in the research and development department in order to
initiate other innovative activities. The goal of the organization can be implemented to signal
its shift in investments in the innovation category. By improving its focus on the research and
development, the company will be able to increase multiple product lines. It can further focus
on the innovation of one product over the other. The strategic goals can enable the company
to get a specific direction to achieve the desired objective and address the changes in the
business environment.
Recommendations
It is recommended that the company must reduce the cost of the products and service; this
can be achieved by implementing the advanced technology and machinery in the
organization. It can reduce the waste generated in the organization which will enable the
company to achieve sustainability in the long run. This would enable the company to reduce
the cost and provide products at a lower than its competitors (Burch, Dixon, & Lawrence,
2013). It is recommended that the company must take initiatives to detect the leak in
refrigeration. It can implement effective leak detection programs to avoided wastage of time
and additional costs. It can make use of facility data in order to become more valuable as the
new and advanced technology is assimilated into enterprise. It is recommended that the
company achieves sustainability by optimizing the operations of the business by providing
solution to address efficient utilization of resources and reach the food safety standards
(Charlton, et al., 2015). This in turn will enable the company to attract the health conscious
customers and the meet the growing needs and demands of the customers. It needs to focus

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on monitoring and data (Phillipov, 2016). Tracking the performance of the organization will
enable the company to take necessary actions to enhance the service provided.
Conclusion
Therefore from the above analysis it can be concluded that Coles Company has been
able to maintain its position in the market by analyzing the change in the business
environment and taking necessary measures to address the changes. However, it has been
recommended ways to further improve its services and product offerings to address the
growing needs and demands of the customers. The report has analyzed the key strategic
influences affecting the Coles Supermarket Australia. There are significant changes in the
consumer behaviour, their tastes and preferences. The company needs to further address the
issues concerning the digitally engaged consumer seeking quick access and faster service.
There are increase number of health conscious customers why focuses on sustainability. The
strategic implication of the company has been identified to address the evolving and ever
changing needs and demands of the customers. The report has analyzed the strategic course
of action that can be adopted by the company and the strategic goals to be set by the company
and its implications. Lastly, it recommends reducing the cost and services of the products and
implementing advanced technologies to provide enhanced customer service and provide
quick service to its customers. Therefore, it achieves the aim of the report.

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