Professional Communication Skills Assessment 2: Coles Company Report

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Added on  2022/08/22

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This report provides an analysis of Coles Supermarket, one of Australia's leading supermarket chains. Established in 1914, the company has grown significantly, contributing substantially to the Australian economy and employing a large workforce. The report examines Coles' business operations, including its pricing strategies, productivity improvements, and economic contributions. It also addresses the company's approach to plastic pollution, including its initiatives and the public's response. The report covers various aspects of Coles' business, from its financial commitments to its impact on the retail sector, and offers recommendations for future improvements. The report also delves into how the company addresses management problems, such as employee retention and salary issues, and the impact of the company's decisions on the environment.
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Coles
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Date:
Course: Professional Communication Skills
Assessment 2: Company Report
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Executive Summary
Coles supermarket is the most established supermarket in Australia and it was established in the
year 1914. The supermarket was established in the Second World War. Initially the company
started off as a small business store but at present the company has grown into an enormous
supermarket chain in Australia. The company not only makes a lot of revenue each year but also
donates a lot of money to various charities and helps the people who are in need. A lot of products
are provided by Coles which results in gathering more customers and the good quality of the
products ensures that customers are retained in a proper way. The management of the company
has improved a lot with the application of computerized systems. Coles faces a lot of management
problems like postponement of the salaries of the employees and also loses many staffs which
means the company needs to maintain its management in a proper way.
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Table of Contents
1
Introduction:……………………………………………………………….………………..1
2 Coles................................................................................................................................................1
2.1 Price and productivity..................................................................................................2
2.2 Economic contribution................................................................................................3
2.3 Plastic pollution..........................................................................................................4
3 Conclusion & Recommendation............................................................................................4
References..............................................................................................................................5
Table of Figures
Figure 1: Value added, Coles and selected industries……………………………………………………4
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1. Introduction:
The self-service shop which delivers the customers with an extensive variety of food and household
products is usually known as supermarket. A supermarket is very large as compared to other self-service
shops. The common products which are available in a supermarket are meat, baked goods, fresh
produce and dairy. The supermarket are generally described as chain stores in which the products in the
supermarket are supplied by various distribution centers which are associated with the parent
corporations. This increases the opportunities of increasing the scale of the economy. In combination to
smaller stores, the supermarkets holds a lot of varieties of products at a much lower price. The financing
costs of the goods is also reduced and some of the stores offers credit in terms of 60-90 days from the
selected merchants (Forbes 2008).
Grocery industry holds a formidable position in the Australian economy. The price of daily foods and
staples affect the lifestyle of the Americans. The grocery industry employs a lot of workers for working in
the different supermarket chains and is also connected to a lot of sections such as transport, agriculture
and manufacturing. Grocery industry is a major interest of various policy makers as well as the
government. In the country the supermarkets are the major elements in the grocery industry who
generate 70 percent of the total retail marketplace. Coles was founded in 1914 by George Coles in
Collingwood and at present it is an Australian Supermarket and also serves the customers with a lot of
variety of products. The headquarter of Coles is situated in Melbourne. A total of 807 supermarkets are
maintained by the company in the country in which several newly branded BI-LO supermarkets are also
present. 80 percent of the Australian supermarket is owned by Coles as compared to its rivals
Woolworths and has over 100,000 employees. The company also has an online site which is named as
Coles Online which offers delivery service to the consumers. Coles was under the brand of Coles Mayer
Limited between the years of 1986 and 2006. Wes farmers purchased Coles group in 2007 and it again
became a secondary of Coles group in 2018 (Wesfarmers 2018).
2. Coles:
Coles is one of the two chief supermarket chains in Australia. A lot of retailers along with the
supermarkets form the grocery industry of Australia. Coles is at present owned by Wesfarmers.
The group comprise of:
Full service retailer of the country which operates a total of 749 stores (Wesfarmers 2012).
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Liquor retailing by the help of three brands in all the 792 outlets and also 92 hotels in the
country (Wesfarmers 2012).
Operates National fuel by the help of 627 sites (Wesfarmers 2012). In 2011-2012 there has been
a total of 18 million transactions by the customers in all the different parts of the Coles group. In
between the year 2011-2012 the company has earned a total of $23.6 billion in its revenues
(Wesfarmers 2012).
2.1 Price and productivity:
The selling prices of the various goods of Coles has been analyzed when tit has been seen that there are
significant reduction in price. These has been achieved by the help of looking at the: reduction in the
prices of goods, COGS, reduction in the prices of the farm gates, reduction of cost in the business, CODB
or reduction sin margin.
Taking a look in the income statement of the group from top-down the rise in the profit of the Coles
group is mainly due to the combination of the various increase in the revenue and lowering the per unit
costs of the articles. The lower costs are mainly due to lower CODB (Wesfarmers 2012).
Reduction of the wastage of goods as well as arrangements for the tendering of competition, self-scan
checkout and easy shelf replenishment and logistic saving and various distributions the gain in the
efficiency has been achieved by the company. In all the various products range the price of all the goods
of Coles has decreased by 4.2 percent in average in the last 18 months. Exclusion of cigarettes will
increase it by 7.9 percent.
Since 2011, the retailed process have been reduced by 8 percent which is available from the 1200 ‘Down
Down’ goods data. For these kind of goods the COGS value per unit has fallen by 17 percent as a whole
but on the weighted basis it has decreased by 2 percent. This shows that the feet of lower retail prices
can be seen in the reduced margins of retailing in the company (Wesfarmers 2012).
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What is ‘Down Down’?
It is the valuing and the marketing approach which has been espoused by Coles in 2010 for improving its
performance. The strategies states that some of the good’s prices reduces permanently rather than for a
shorter term (K. Sandeep, academia.edu).
Consumer benefits of ‘Down Down’
In a span of 18 months the values of the goods has decreased in the retail stores. On an average
weighted basis the prices has come down by 4.1 percent. The main difference can be seen in cigarette
due to the various changes in the excise arrangements. For obtaining the idea of the savings by the
company to the consumers’ then price movement has been aggregated for the period and the savings
figure has been calculated. This calculations is based on the old and new volumes. In the year 2011-12
the one year savings of the company have come down during the implementation of the ‘Down Down’
campaign and was between $1.05 billion and $1.19 billion. The midpoint of the span was $1.12 billion
(Poonam Chawla, academia.edu).
2.2 Economic contribution:
The financial pledge of the Coles supermarket has been estimated to be $4.5 billion in 2011-2012. The
commitment was including backhand which was numerous times as big as compared to $20.8 billion.
The total number of labors is about 100,000 at present. In accordance to Full Time Proportionate (FTE)
55,467 individuals have been used by Coles in 2011-2012. The company has bolstered 9,468 occupants
in the time span. The company also encouraged exchange upheld in a total of 118,995 FTE in its
inventory network and the economy. It has been found that 28 percent of the financial commitment of
the country is mainly in the territorial Australia.
As seen in the Chart 1, the immediate financial commitment as well as the aberrant financial
commitment of the company is huge as compared to other organizations alike Lion or other ventures
like Television and Film. The value of the company also includes hopeful conversation as it is as big as
the airport terminals of Australia. These facts show that Coles is a major influencer of the economy of
Australia. Chart i: Value-added, Coles and selected industries (BBC, 2013).
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Figure 1(Google)
2.3 Plastic pollution:
The most current shopping progression which has brought about by Coles has been pummeled by the
environmentalists of the country owing to the sale of the single packed plastics which has been
forbidden in the country. In the new policy of Coles the company is offering the customers who spent
$30 with a variety of family use items which are Tim Tams, Chobani yoghurt, Weet-bix and Napisan.
These items were made of plastic and the disposal of them was causing harm to the environment. After
facing harsh criticism over this fact the company produced another idea which provided plastic
collectibles which were also targeted to attract the youngsters. In this new scheme the consumers are
given the opportunity to gather 24 kinds of vegetable toys known as Stikeez which were mainly used to
urge the children to eat healthy products. In this case for every $30 spent by the consumers will be
giving them the opportunity to gather one of the charming products among Marie Mango, Sunny
strawberry and Kelly Kiwi. During the first hour of its distribution the company received a lot of
complains which stated that the company needs to stop this initiative like it received during the ‘Little
Shop’ advancements. The mail which was sent to the CEO by 7,850 individuals it was stated that the
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little plastic things will be making their system into the springs and will be affecting the maritime life of
the country (ELEXN 2013).
Conclusion & Recommendation:
The main assumption which can be brought about by the report is that the various policies which has
been implemented in the supermarkets will be having bad impact on the consumers. However the
company needs to recycle their various policies and also lower the various barriers to the entries and
increases their competitiveness in the retail sectors which will be making the consumers happy. The
productivity commission needs to inspect the various impacts of the secluded levels on the Food
manufacturing industry of Australia.
The steady reviews against the company are fine at present. The productivity barriers needs to look at
the various review barriers which has brought about in the entry as well as the supply chain will put a
emphasis on the customers and review the influence of the isolated levels.
References
Alex Dixx, 2019. Coles relaunches Little Shop promotion despite criticism over plastic waste.
Delloitle, 2012. Analysis of thegrocery industry. Coles SupermarketsAustralia, October, 1(1), p. 40.
MAANI TRUU, 2019. A disgrace': Backlash after Coles releases new plastic collectables.
MATTHEW ELMAS , 2019. Coles attracts both love and wrath as Alan Jones calls for boycott.
NATASHA CHRISTIAN, 2018. Coles under fire for a new plastic toy promotion after bag ban.
Productivity Commission, 2013. Processed Fruit Safeguards Inquiry. Coles, july, 1(1), p. 58.
Riched Fili, 2019. A legacy of plastic waste': Coles launches new collectables series.
Sarah Keith, 2012. COLES, WOOLWORTHS, AND THE. p. 35.
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