Strategic Management Analysis of Coles Group Ltd

Strategic
Management

STRATEGIC MANAGEMENT 1
Executive Summary
The main aim of this paper is to learn the concept of strategic management. In this paper, the
whole analysis has been done on Coles Group Ltd. According to the analysis of the market and
the industry in which it operates the business, it has been found that the company is growing
continuously with the percentage of 27.6%. There are many resources, capabilities and
competencies that help to attain the competitive advantage in the market. As per the competitive
analysis, Aldi and Wesfarmers are the main competitors of the organization in terms of strategies
and growth. It is recommending that the company has to implement the porter’s generic strategy
and Ansoff matrix to grow in the market.

STRATEGIC MANAGEMENT 2

STRATEGIC MANAGEMENT 3
Contents
Introduction.................................................................................................................... 3
Market Size Trends.......................................................................................................... 3
Financial and Corporate Performance.................................................................................... 4
PESTLE Analysis............................................................................................................ 4
Porter’s Five Forces Framework.......................................................................................... 5
Competitive Analysis........................................................................................................ 7
Competitive advantage Analysis.......................................................................................... 8
VIRO Analysis................................................................................................................ 9
SWOT Analysis............................................................................................................ 11
Strategic options............................................................................................................ 12
Strategic recommendations............................................................................................... 17
Conclusion................................................................................................................... 19
References................................................................................................................... 20

STRATEGIC MANAGEMENT 4
Introduction
Strategic management is the procedure of evaluating, analyzing, and summarizing the
environment of business. According to the concept of strategic management, it is required to
examine the environment of business to develop strategies for smoothly running the operation
activities. There are numerous strategic tools that are used to determine the external and internal
environment of the firm such as PESTLE Analysis, SWOT Analysis, Porters generic strategies,
Value Chain Analysis and the others (Ansoff, Kipley, Lewis, Helm-Stevens, and Ansoff, 2019).
In this report, the discussion is made on the topic “strategic management analysis”. In this report,
Coles Group has been taken into consideration to study the business environment. In this report,
the analysis will be done on the external and internal environment by using the PESTLE, and
SWOT Analysis.
Market Size Trends
Coles Group Ltd. is an Australian public company that drives the numerous retail chains. The
company was Australia’s second-largest retailer behind Woolworths Limited. The company
operates under the supermarket industry (Coles Group, 2018).
According to the statista, it has been evaluated that the annual turnover of the supermarket and
grocery retail industry of Australia in the year 2007 is 105.23 billion of Australian dollars
(Staista, 2018).The market share of the industry is around 36.8 percent. The market share of
Coles is 27.6% of the total grocery market which depicts that the company has strong position in
the market (Royan Morgan, 2019).

STRATEGIC MANAGEMENT 5
Financial and Corporate Performance
Coles Group Ltd. is a national full-service supermarket that operates more than the 800
supermarkets (Coles Group, 2018). It is one of the leading fuel and convenience retailers with
the 700 sites across Australia which is more than 5000 team members. The current share price of
the company is $14.78. The revenue of the company is $39.388 billion and operating income
1.500 billion in the year 2018 (Coles Group, 2018).
PESTLE Analysis
Political/Legal:
It has been seen that the government of Australia implement the policies which is related to the
export or import of the goods. The main operation of the company is exporting or importing of
goods from one place to another. Introducing the new policies related to export and imports
affects the business.
Economic
The wage rate of Australia is high as compare to the other nations. It has been evaluated that the
increasing wage rate affects the profitability of the company as the cost of production is
increasing (Focus-economics, 2019).
Demographic
Demographic defines the area of operating. While expanding the business, the company has to
follow all the rules and regulation which is designed by the government to protect the consumers
or for smooth operation.