Business Environment Analysis of Cole's Supermarket - MGT501 Report

This report provides a detailed business environment analysis of Cole's Supermarket. It begins with an executive summary, highlighting the supermarket's operations, competitive landscape, and stakeholder engagement. The report identifies the functional areas within Coles, including sales, marketing, and operations, and then delves into the identification of internal and external stakeholders, outlining their respective roles. A key aspect of the analysis involves assessing the nature, degree, and implications of stakeholder interests, along with their levels of influence. The report constructs a stakeholder matrix to visualize these relationships and includes a comparative analysis with a rival firm to highlight dissimilarities in stakeholder interests and influences. The analysis covers the company's history, ownership, and market position, examining the impact of various stakeholders like consumers, employees, suppliers, shareholders, and government bodies. The report concludes with a summary of findings and insights into the supermarket's strategic approach to stakeholder management and market dynamics. The report also covers the level of influence of stakeholders such as NGOs, media, and the government, and the impacts of conflicting interests among them. The report also includes figures to illustrate the market share and fastest-selling products of the company.

Running Head: BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
Business environment analysis of Cole’s supermarket
Name of the Student
Name of the University
Author’s Note

1BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
Executive Summary
It is a supermarket that operates on food and beverage. They are one of the famous supermarket
among the economy because of the nutritional value that the consumer derives with the
consumption of the commodity. They responds to the consumer query by means of telecalling, e-
mail or even by means of physical visit. They aim at customer satisfaction rather than profit
generation. It has a presence of about 1,00,000 employees. Moreover, the concerning firm rival
market are Woolworth supermarket, Wesfarmers. Beside the firm also have a presence within the
e-commerce platform. Between the era of 1986 and 2006, Cole’s supermarket was a brand of
Coles Myer Limited, later Coles Group Limited, prior to Wesfarmers purchasing Coles Group in
2007. It became a subsidiary of Coles Group again after Wesfamers spun-off the business in
November 2018.
Within this specific report the various stakeholders and the difference in comparison to that of
the chosen rival firm will be discussed. Besides, their efforts in making the consumer satisfied.
The manner of organisational structure that is being followed will be discussed in detail.

2BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
Table of Contents
1. Introduction..................................................................................................................................2
2. Discussion....................................................................................................................................2
2.1. Identify functional areas?.....................................................................................................2
2.2. Identify internal and external stakeholders and their roles?.................................................3
2.3. Identify the nature and degree of main stakeholders’ interests, and implications of
conflicting interests?....................................................................................................................4
2.4. Identify the level of main stakeholders influence?...............................................................6
2.5. Create a stakeholder matrix?................................................................................................8
2.6. In the discussion forum, choose an example from your peers and compare the industry
your business operates in with their industry, identify the main points of stakeholder
dissimilarities and analyse the differences in stakeholder interests and influences?.................11
3. Conclusion.................................................................................................................................13
References......................................................................................................................................15

3BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
1. Introduction
The chosen firm for the discussion of the report is the “Coles supermarket”. According to
the official website of the supermarket (Coles.com.au, 2019), it is located within the region of
Australia. The giant supermarket is famous for its retail and consumer services chain. It services
range from that of the food and beverages. They make sure that they supply a qualitative product
that is passed through a series of the testing phase to make sure the quality of the product. Its
trading activity is addressed as Coles; it’s headquarter is located within the region of Melbourne.
It was inaugurated within the era of 1914. Its owner is George-Coles. The supermarket chain
maintains about several stores such that they have a presence of about 807 supermarkets within
the region of Australia itself.
Figure: Cole’s circle of success
Source: (Insidefmcg.com.au, 2019)
It was in the era of 2008 that the supermarket Wesfarmers appointed Lan-McLeod (UK
retailer) as the official managing director of the Coles supermarket. Besides, he was also given

4BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
right over the liquor, fuel and business firms too. It was in the early era of 2011 that the
concerning supermarket Coles possessed the National Australian Bank’s 50% of the interest
within one of the Australia’s largest loyalty programs which is addressed as the Flybuys (Wu et
al., 2015).
However, the managing director of the company is addressed as John-Durkan. He was
appointed as managing director in the early era of 2014. In the later period of 2018, Wesfarmers
supermarket officially announced that effort is being undertaken for demerging the Coles
business.
2. Discussion
2.1. Identify functional areas?
The primary functional areas or departments of the concerning firm are as follows:
The sales team- they make use of the various physical stores that relocated within the multiple
regions. It is having a wide chain of sub store. Besides, they also have an online presence that is
the e-commerce business.
The marketing team- This team is concerned with that of the branding and promotional
activity. They understand the different perspective of the consumers and accordingly create a
tailor-made advertisement for different segments of the consumers.
The operational team- This team is one of the primary team of the firm they keep assure
that the quality of the obtained products from that of the firm is qualitative and enriched in health
benefits as this factor is the sole reason of competitive advantage over the other rival business
firms (Trevena et al., 2015).

5BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
Figure: Market share of the firms
Source: (Insidefmcg.com.au, 2019)
2.2. Identify internal and external stakeholders and their roles?
Internal stakeholders and their roles:
 The manager- This body mainly co-ordinates the activities of the business undertaking and
make sure that the interest of the stakeholders is being secured and given immense priority.
 The employees- they employ a number of employees. This set of employees are
present for the sole purpose of global operations. The individual employees also make a
number of efforts for making the concerning firm stand in the top position among the rival
markets (Grimmer et al., 2018).
External stakeholders and their roles:

6BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
 The consumers of the market- They have a presence of over 800 stores within the region
and that too they make numerous efforts towards the achievement of consumer satisfaction.
They ensure the satisfaction of the consumer by making use of the health and quality
assurance team for which they hire professionals who is very qualitative.
 The communities- Their community partners comprise of the local and that of the national
basis partners. They also have a separate health partner. Their charity partners are Sydney
Children's Hospital NSW / AC, Hummingbird House QLD, Ovarian Cancer QLD, Clontarf
Foundation SA / NT, Girls Academy SA / NT, Stars Foundation SA / NT, Share the Dignity
VIC, Robert Connor Dawes VIC, Very Special Kids VIC, Telethon WA.
 The suppliers- The make use of the e-commerce platform that is entirely designed according
to the ease of the suppliers any suppliers that are willing to provide service for undertaking
trade activity can arrive at the official website of the Coles suppliers page and register
themselves or contact at the provided details. Besides, they make use of the qualitative local
suppliers from the firm that are localities, their one of the major proportion of the supplier is
composed of the local farmers.
 The shareholders- It is a publicly traded company. It is being listed as the JSE. Besides they
have a numerous number of shareholders that are located within the region of the South-
Africa and many other regions. This official range from that of the individual persons to that
of the institutions.
 The debt funders- This body is one of the major sources of finance for the concerning
supermarket Coles. Coles manage the risk to make sure that the expectations are being
fulfilled.

7BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
 The media- they work jointly with that of the international, national, and local media
channels. Besides, their managing director and finance director on a continuous basis
responds to the media questions. Besides, they conduct two media conference each year
(London et al., 2014).
2.3. Identify the nature and degree of main stakeholders’ interests, and implications of
conflicting interests?
There are a number of stakeholder’s interest they are as follows:
It makes a number of efforts for yielding more of the ideas within the table- This is the
primary body that outlays the innovative business ideas and changes within the business models.
On the other hand, they make changes within the work process as of their belief that it will result
in a positive effect.
In spite of the presence of the opposition it makes your position much stronger- Having the
availability of each of the stakeholders round within the table makes the concerning firm
stronger.
Fair to each and everyone- Cole’s supermarket enables the employees to raise their voice in
respect of any changes that they seek to introduce. The top authorities invite each of the
individual employees to contribute their vision, and idea in terms of the business process
(Mulyadi et al., 2015).
Linking the social capital for that of the community- For the supermarket Coles, the source of
the social capital is like a source of acquaintances, family, friendship, obligations, favour and
that of the various social capital that is important for sustaining the existing relationship or for
making it even better. Besides, it helps in forming a connection with that of the diverse groups
who might have failed to interact with others concerning key partners or employees.

8BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
The stakeholders increase the chances for the success of efforts- Cole’s supermarket
identifies the potential stakeholders and takes their concern as of their concern. This way it helps
the concerning firm in the achievement of their faith and that of their interest.
It comprises of diversified opinions, ideas, and visions- This set of idea and visionaries ranges
from that of the different sectors and that of the diversified firms. This helps in gaining the firm a
clear picture of their stakeholder individual perspective and that of their potential that stays
within their hands.
The effort of each of the stakeholders contribute towards the buy-in and support- The
stakeholder is capable of identifying the business prospects for which they make them as a part
of the internal organisation and invites them within the planning, implementation, development,
and evaluation process. This was the extent of efforts keeps on increasing.
Figure: Fastest selling products
Source: (Insidefmcg.com.au, 2019)
2.4. Identify the level of main stakeholders influence?
The level of main stakeholders influence are as follows:

9BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
 The NGO (Non-Governmental organisations)- They work jointly with that of the NGO
firms. They work on a wide range of projects. The area of concern in which they deal is as
human rights, labour rights, and public policy. The firm even makes a number of efforts by
maintaining a positive relationship with that of the professional and reputable organisation such
as that of the Oxfam Australia, Greening Australia and WWF Australia.
The supermarket even work with that of the number of industry associations such as that
of the Australian Packaging Covenant, the Business Council of Australia, the Carbon Market
Institute, the Plastics and Chemicals Industries Association, the National Retail Association, the
Green Building Council of Australia, Retailer Supplier Roundtable and the Roundtable on
Sustainable Palm Oil (Chu et al., 2016).
However, taking into concern this very year the NGO has engaged with regard to that of
the ethical sourcing and that of the human rights, also in regard to that of the modern slavery act
within the region of the Australian economy.
 The media- One of the primary body of the concerning firm is the media channels. They
make use of the media channels to form a communication with that of the stakeholders and that
of the general consumers of the economy. By this, they maintain the transparency and reputation
of the Coles supermarket. It is through the channel of media by means of which they make sure
the positive corporate governance, financial and operational performance.
Their engagement with the media comprises of the media conferences that are generally
conducted with the intention to coincide with that of the financial outcomes on each quarter.
Speaking in regard to their corporate affairs it comprises of what is takes for the best of the
company. Apart from that of the financial obligations, the primary interest within the media

10BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
channels as of this year was in regard to the leadership transition. They elaborated their new
leadership hierarchy that will be followed.
 The Government- During this specific year, it liaised with that of the federal and that of
the State governments with regard to that of the variety of issues that affects the normal
functioning of the business firm. However, the time and the resources that are mandatory in
order to contribute to all State and Federal Government inquiries we are asked to participate in
would be significant, and it is difficult to respond to all.
 The shareholders- The value for their shareholders for which they listen to them. The
supermarket Coles, engage with that of the shareholders by means of conducting an annual
general meeting and by responding towards the ad-hoc correspondence. The entire company’s
share is being managed and maintained by that of the Computershare Investor Services Pty
Limited (Computershare). They hear their voices during the announcement of the financial
results, strategy planning phase, a post-result phase during the road shows, and the other ad hoc
meetings (Del Guercio et al., 2016).
Besides, on a yearly basis, they conduct briefings, this briefing is open to various
shareholders for the purpose of listening and for the sole purpose of raising questions by the
investor analysts. However, the major concern that was raised within this specific year was the
competitiveness among the rival brands and that of the decision to merge with that of the
Wesfarmers business unit.
 The customers- Speaking in regard to their customers they arrive at the Coles
questioning position by making use of the e-mails, newsletters, official websites, telephonic
calls, and by means of an official person in house visit. A consumer who is interested and has
concern towards any specific business-related activity have the opportunity to directly consult

11BUSINESS ENVIRONMENT ANALYSIS OF COLE’S SUPERMARKET
with the firm at any point in time. Each of the consumer feedback is being monitored on a
continuous basis in order to arrive at a justified position as soon as possible (Del Guercio et al.,
2016).
2.5. Create a stakeholder matrix?
Community
 Their community partners comprise of the
local and that of the national basis
partners.
 They also have a separate health partner.
 Their charity partners are Sydney
Children's Hospital NSW / AC,
Hummingbird House QLD, Ovarian
Cancer QLD, Clontarf Foundation SA /
NT, Girls Academy SA / NT, Stars
Foundation SA / NT, Share the Dignity
VIC, Robert Connor Dawes VIC, Very
Special Kids VIC, Telethon WA.
Media
 One of the primary body of the
concerning firm is the media channels.
 They make use of the media channels to
form a communication with that of the
stakeholders and that of the general
consumers of the economy.
 By this, they maintain the transparency