Business Skills for E-commerce: Coles and Aldi Report

This report examines the e-commerce systems of Coles Supermarket and Aldi, analyzing their business functions, stakeholder relationships, and financial implications. The report includes a PEST analysis to assess the impact of external factors, evaluates the current e-commerce systems of both retailers, and discusses the global impact of e-commerce. It also covers the design of e-commerce solutions, financial planning, and the evaluation of suitability. The research methodology employed is secondary research. The report provides recommendations based on the analysis and aims to offer a strategic perspective on leveraging e-commerce to enhance business performance. The report also includes an executive summary, table of contents, introduction, conclusion, references and appendices.

BUSINESS SKILLS FOR E-COMMERCE
STUDENT NAME
STUDENT ID
PROFESSOR NAME
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Executive summary
In this report, the learner has given detail information about E-commerce system for business
organisations. Coles Supermarket and Aldi both these retail sectors have been taken to make this
report more authentic. All the core functions of business organisations have been stated in brief.
Business aim and the relationship among stakeholders have been mentioned in this report. PEST
analysis has been included for analysing the impact on business. The various impact of E-
commerce has been stated in this report including risk factors. This report focused on the global
impact of E-commerce. Secondary research methodology has been chosen in this report. Current
E-commerce system in Aldi is mentioned in detail. Various financial implication plan for E-
commerce solution have been stated in this report. E-commerce system both in Coles
Supermarket and in Aldi have been discussed in this report. Designing of E-commerce solutions
have been given properly and evaluations of suitability E-commerce have been also mentioned
with recommendations as well.
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Table of Contents
Introduction......................................................................................................................................4
TASK 1............................................................................................................................................4
LO1..................................................................................................................................................4
P1.1 Explaining various functions of Coles Supermarket...............................................................4
P1.2 Evaluating the aim of Coles Supermarket and their relation with the stakeholders................8
TASK 2............................................................................................................................................9
LO2..................................................................................................................................................9
P2.1 Various impact of E-commerce...............................................................................................9
P2.2 Discussions the Global impact of E-commerce.....................................................................10
TASK 3..........................................................................................................................................12
LO3................................................................................................................................................12
P3.1 Research methodologies........................................................................................................12
P3.2 Evaluation of the present E-commerce system in Aldi.........................................................13
P3.3 Discussing the financial implication of the E-commerce......................................................14
P3.4 Designing an E-commerce solution to enhance the business functions of Coles Supermarket
.......................................................................................................................................................15
P3.5 Evaluation of the suitability of E-commerce solutions.........................................................15
Recommendation...........................................................................................................................16
Conclusion.....................................................................................................................................16
Reference list.................................................................................................................................17
Appendices....................................................................................................................................19
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Introduction
In the 21st century, E -commerce has become an important factor for all business organisation as
it helps them to enlarge business market successfully. The strategic implementation of e-
commerce also helps the firms to enhance the satisfaction level of the consumers. In this report,
the importance of e-commerce has been briefly described. This report aims to to analyse the
target market, online strategy. Apart from this, the financial implementation of e-commerce has
also been discussed in order to provide a strategic way to the business organisation. In order to
meet the purpose of this report, two retail organisations Coles Supermarket, Aldi have been
chosen. It has also been observed that how these two organisations use e-commerce strategy in
order to enhance the satisfaction level of the customers.
TASK 1
LO1
P1.1 Explaining various functions of Coles Supermarket
Coles Supermarket is considered as the well-known retail market of Australia and this firm is a
type of subsidiary company. This retail company is a subsidiary company of Wesfarmers. Coles
Supermarket established in 1914 by George Coles and this company is popular for its good
service quality. It has been identified that the selected enterprises offers online service facilities
to both their consumers and stakeholders. Apart from this, from the background of this company
it has been identified that this business firm follows different types of market strategies in order
to maximize their yearly turnover (coles.com.au, 2017).
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Figure 1: Logo of Coles Supermarkets
(Source: coles.com.au,2017)
According to Da (2016, p.19) the business functions, operations are influenced by various
environmental factors as macro environmental factors. Therefore, With this macro environmental
analysis, it is possible for the organisations to find out their problems regarding their services.In
this context, it can be stated that Coles Supermarket also needs to do this analysis as it helps
them to understand the effect of macro environmental factors on their business activities. PEST
analysis includes political factors, social factors, economy and technology (refer to appendix 2).
Political factors
 Includes governmental rules,
regulations and legislation
 Refer to the major changes in
rules, regulations and
legislation.
 Impact on the business
operations of organizations
 Data protection Act 1998 can
help to secure the personal data
of buyers
Economic factors
 The selected organisation have increased
their market share by 40% and grab the large
portion of the business market.
 This company decreases their pricing by
10% in order to maximise the satisfaction
level of the customers.
 The percentage of yearly turnover is
increased by $ 500 million
Social factors Technological factors
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 Indicates towards social norms,
ethics and towards the code of
conduct
 Sudden changes in social factor
mean changes in social norms,
ethics.
 The rapid changes in technology may also
affect the reputation, brand image of the
organization.
 Modern technology in order to promote their
e-business functions successfully.
Table 1: PESTLE analysis
(Source: Bones and Hammersley 2015, p.11)
As per the opinion of Barnes and Hunt (2013, p.27), this factors includes governmental rules,
regulations and legislation. Political factor has the big impact on the business operations of
organisations. The drastic changes in the political scenario indicate towards the major changes in
rules, regulations and legislation. With the changes in political scenario, the business rule,
legislation regarding business service have also been changed. Therefore, business firms need to
change their business plan, functions based on the new changes in business legislations.
Likewise, the business planning of, Coles Supermarket needs to be modified, operations based
on the new changes in the politics. If business firms fail to follow the new changes, the
organisations may have to face political barriers for promoting their business successfully in the
market. This firm also needs to apply the data protection act for ensuring their business deals.
Economic factors also effect on the business profit, yearly turnover of the firms. Economic
factors include various factors like pricing, market share, stock exchange rate, financial budget
and rate of interest. The major changes in economy refer to the changes in world economy and
the vast changes in the economy may effect on the business economy. Therefore, the business
organisations also need to set their pricing, investment amount as per the changes economic rate.
On the other hand, it may also hamper on the financial budget of the organisation.Similarly, the
financial department of the respected organisation also needs to prepare their financial budget
based on the new changes in the economy as it helps them to manage their business revenue, the
rate of cash flow.
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As per the opinion of Bones and Hammersley (2015, p.11), social factor has a big impact on the
business functions of the enterprises. It has been observed that the social factor indicates
towards social norms, ethics and towards the code of conduct. The sudden changes in social
factor mean changes in social norms, ethics. Therefore, it is the responsibility of the firms to
follow the changes in social norms, ethics.Likewise, the selected organisation also need to follow
all the new changes in social factors in order to ensure their good ethical practices in the
organisations. This kind of practices also helps them to reach the satisfaction level of the buyers.
At present situation, technology plays a vital role in the business functions. In accordance with
the opinion of Rainer et al. (2014, p.37), the rapid changes in technology may also affect the
reputation, brand image of the organization. Therefore, the firms need to use the modern
technology in order to promote their e-business functions successfully. Therefore, Coles
Supermarket, the selected organisation needs to follow the modern technology in order to offer
their customers the best online services.
Apart from this, it has been observed that the selected business firm also need to use various
types of marketing strategies such as marketing mix strategy, e-commerce strategy and so on.
These kinds of strategies also help them to enhance their service level and it also helps them to
extend their business market globally. Therefore, the business firms need to operate their
business functions very strategically and the management of this companies also need to look at
the fact that they are improving their functional areas such as sales, management information
system, operations systems and administration properly. Apart from this, the selected
organisation also needs to develop their management information system that they can keep their
confidential data, record safely (Ho, 2014, p.6491).
On the other hand, the management of Coles Supermarket also needs to operate their
administrative function properly in order to enhance their service level. Apart from this, the
respected company also needs to improve their accounting systems it helps them to maintain
their investment, pricing and revenue properly. This kind of initiative approach also helps them
to achieve huge profit from their business and help them to have a good position in the field of e-
business.
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P1.2 Evaluating the aim of Coles Supermarket and their relation with the
stakeholders
Coles Supermarket has set their aims to meet their business purpose successfully. The main of
this company is to achieve huge profit from their business. On the other hand, the management
also aims to establish their business as the best retail organisations in the market. Apart from
this, the aim of the selected enterprise is to extend their market share.In addition to, the other aim
of these organisations is to increase their return amount of their capital employed. This firm
aims to focus on their business and to influence the purchase decision of the consumers
effectively. The main objectives of this organisation are:
 To offer their customers the best online services
 To achieve big amount of profit from business
 To provide their workers sustainable, peaceful environment to work
This company has both the internal and external stakeholders. The stakeholders help the firms to
meet their business objectives.
Internal stakeholders
Employees and staffs
The good performance of the employees, workers and the deep involvement of the employees
help the organisation to increase the level of demand among the customers for their products.
The flaws in the performance level of the staffs may lead the organization towards business loss.
Human resource department
This department also helps the organisation to fulfil their objectives by providing their
employees proper training. By making staffs understand about organisational activities, their
roles, responsibilities they also leads the forms towards their objectives.
Finance department
The functions of finance department also help the enterprises to meet the business by managing a
financial budget, business investment properly (Kolios and Read, 2013, p.5041).
External stakeholders
Customers
Customers plays an important role in the companies. The high demand level; of the customers
for the products of the selected company also helps them to fulfil their objectives.
Government
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The contribution of government also helps the management of this company to conduct their
business in a sustainable way. The various policies, schemes, contractual laws also help them to
a achieve their objectives
Suppliers
The contributions of the suppliers are also very effective for the firm as the high service level of
the suppliers helps them in achieving objectives.
TASK 2
LO2
P2.1 Various impact of E-commerce
According to Taniguchi and Thompson (2014, p.25), e-commerce has its positive and negative
impact on both buyers and on business industries. In business organisations, E-commerce plays
the most crucial role. In recent time usages of E-commerce is very high and all the business
industries are using this in their business to become more effective. Business organisations used
E-commerce for making maximum profit. Coles Supermarket is using E-commerce to get more
profit and to expand their business in the competitive market.
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Figure 1: Various impact of E-commerce
(Source: Azeem et al. 2015, p.260)
Coles Supermarket is the leading business industries in Australia and with the help of E-
commerce this industry providing various facilities to the customers. E-commerce helped to the
companies in their growth (Azeem et al. 2015, p.260). Through E-commerce different retail
sectors provide different discounts and offers for customers. All the discounts and offers for the
customers are mentioned in their official websites of the business organisations. With the help of
E-commerce, business industries can make their sell effectively and it helps to get more profit
from the market. In the case of any such customers who would like to buy products from Coles
Supermarket, then they can directly access from their official websites. HR department of Coles
Supermarket tries their best to put the effective price of their product to attract more customers.
Customers may not visit Coles Supermarket to choose their relevant product.
Apart from these, buyers can buy their product by online marketing and in this case, buyers do
not need to visit any shop physically. This facility can help the buyers in purchasing any such
products from Coles Supermarket. In the case of those customers who would like to check the
price of their products, they can check it by visiting the websites of other retail sectors. On the
other hand for selecting better product buyers can visit the official websites of different retail
sectors. With the help of E-commerce, buyers can easily make communication of the employees
of Coles Supermarket. Coles Supermarket can use E-commerce for making their product
advertisement more attractive and they can easily react to their customers. E-commerce can help
to reach to target customers. Management can use a different kind of models and theories for
making product advertisement lucrative (Wiengarten et al. 2013, p.25).
There are various risks in E-commerce like business risk, the risk of information and risk of
technology as well.
Business risk- During payment option there are many risks like personal data of buyers can be
disclosed a lack of communication can make a negative impact on customers as well as on
business industries. Apart from this complication in return policies can make a negative impact
on buyers.
The risk of information- The various information about the product cannot match in real or the
information about products may not match every time. For the organisations, unknown access
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websites can make a harmful effect. Apart from these pin number or credit card information of
buyers could be in danger.
The risk of technology- Insecure websites of retail sectors can make the wrong impact on buyers.
In the case of cirrus, affected websites of organisations can make difficulties during product
selling. Insufficient hardware system could also affect in business.
P2.2 Discussions the Global impact of E-commerce
Global impact of E-commerce is extremely high in the world of business. The positive and
negative impact of E-commerce is stated below-
Positive impactNegative impact
● E-commerce can help to sell the
product of organisation to the buyers
who belong to different countries. It
can help to expand globally.
● Customers market is developing day-
by-day. Buyers are happy to make an
online deal for purchasing their
products.
● Employees of business industries can
make direct communication with
buyers to sell the products who are
from other countries.
● Coles Supermarket can get global
recognise with the help of E-
commerce.
● Those who are unable to access online
products and it can make negative
impact on business
● Personal information about buyers are
revealing and it affects the business.
● Lack of inspection of product in online
● After investment, it becomes difficult
to calculate ROI return on investment.
● The poor security system can make a
negative impact on business as well as
on buyers.
Table 2: Discussions the Global affect of E-commerce
(Source: Wiengarten et al. 2013, p.25)
After the above discussion, it can be said that there are many positive and negative impact of E-
commerce on business. According to Wiengarten et al. (2016, p.197), positive impact of E-
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commerce is more effective in business. Buyers can get various facilities from online shopping.
On the other hand, global recognition is another important factor for companies.
According to Awiagah et al. (2016, p.815), negative impact can make the business down.
Customers have faced many problems during online shopping like poor delivery system of the
companies.
In the case of Coles Supermarket E-commerce has made a positive and negative impact. The
positive impact like selling of the product is effective. The advertisement of Coles Supermarket
is reaching to buyers through online. HR department can make new offers and facilities for new
and target customers. On the other hand, negative impacts are such as the old employees of
organisation are unable to handle new technologies. It can make negative impact on business.
The security system of Coles supermarket is not effective enough to keep safe all personal data
of the buyers. It has made wrong impression on the mind of buyers. However positive impacts
are more effective than negative to run business successfully.
TASK 3
LO3
P3.1 Research methodologies
To make this report learner has chosen secondary research methods.
Market segmentation-
Three processes of market segmentations are such as- segmentation, targeting and positioning.
Segmentation- In this step, it is necessary to identify the proper market for business organisations
and it also needs to know E-commerce applicability in market. After identifying the base used
for segmentation then it needs to develop the business profile.
Targeting- In this process Coles Supermarket can evaluate lucrative of segment process. In next
process, it is necessary to target the segment.
Positioning- In this step it is an important factor to identify the various position of a segment.
After developing the various marketing programme for each segment which can be efficient for
the management of Coles Supermarket.
Market segmentation is all about a kind of process where a large number of customers and
market both are divided for the betterment of business (). This division is made on the basis of
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