MGT703: Analyzing Coles Group's Corporate Strategy & Governance

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Added on 2024/06/28

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This report provides a comprehensive analysis of Coles Group, a leading Australian retailer, focusing on its corporate strategy, governance, social responsibility, ethics, and organizational culture. It examines Coles Group's governance charter, security dealing policy, diversity policy, and market disclosure policy, highlighting the company's commitment to ethical practices and compliance with regulations. The report also delves into Coles Group's corporate social responsibility initiatives, including its support for Australian farmers and commitment to sustainable practices. Furthermore, it discusses the company's ethical sourcing policy, which is based on the Ethical Trade Initiative (ETI) and the International Labour Organization conventions, ensuring fair labor practices throughout its supply chain. The analysis extends to Coles Group's culture, emphasizing its commitment to diversity, inclusion, and accessibility. Finally, the report touches upon the company's performance and measurement, including its share prices and teamwork initiatives. The information is sourced from credible references to provide a holistic view of Coles Group's corporate practices.

MGT703 TASK 3
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Executive summary
Coles Group is the retail company which is situated in Australia, it is the second largest
company in retail services. In the month of April 2014, the Coles group has celebrated their 100
th birthday, the founder of Cole’s group is GJ Coles this man has created the store. The main
objective of the Coles Group is to lower the costs for the families who are living in Australia.
Here the customers decide that what is good and then Coles stock that things in their stores. The
story of Cole's group has started in the year 1914. It mainly deals with fresh foods, groceries,
and other general commodities that are operating in a total of 809 supermarkets. This company
groups also operate coles.com.au (website) this is an online supermarket with the various
delivery channels and this group also provides insurance, credit cards and other personal loans
for the families of Australia.
The Cole’s groups also deal in the liquor and they have 899 liquor land, vintage cellar stores,
and First choice liquor and also it includes the online business of retailing of liquor. There is an
operation for the 88 hotels in Western Australia, southern and also in south Wales. The Coles
group also handles 711 fuel and the convenience store. The total of business that Coles Group to
have in the present time is Coles Supermarket, Liquor land, and vintage cellars, First choice
Liquor and Coles Express. The organisation has Australia's largest employers which are non-
government and they have the total number of employees as 112,000 team members. The main
head office is situated in Melbourne, Victoria (Pulker, et. al., 2018). This organisation is mainly
known for its leadership, honesty and also open responsive communication because they set
their standards for the best practices which are responsible for the betterment of the company.
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Contents
Executive summary............................................................................................................................. 2
Introduction......................................................................................................................................... 4
Governance.......................................................................................................................................... 5
Social Responsibility............................................................................................................................ 7
Ethics.................................................................................................................................................... 7
Cole’s Group Culture.......................................................................................................................... 8
Performance and Measurement......................................................................................................... 9
Conclusion.......................................................................................................................................... 11
References.......................................................................................................................................... 12
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Introduction
This is the business corporate strategy report of the Coles Group which is the second largest
retailer in Australia. The head office of this group is situated in Melbourne, Victoria. Cole's
group have deals in several markets such as Coles Supermarket, Liquor land, and vintage
cellars. The main objective of this report is the corporate strategy analysis with the help of some
relevant theoretical frameworks of the real world organisation Coles Group. This report shows
social responsibility such as sustainable approach and business decisions and the diversity in
subject with the business their respect and how they manage these things. This all will be
discussed in this report with recommendations and conclusion.
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Governance
The business governance charter and different policies are discussed in this report such as the
rules that are applied as the consumable rules for the companies that come under some act and
the regulations. Under these regulations, the company has formed.
Exercising power
The Coles group in the Act permits such as exercise any of the power, to take any actions or
engage in any conduct and the procedure. The constitution may provide that any person might
ensure some specific thing or Act this is to be done at the personal decision. The constitution
may also discuss the power for making the selection to a point or office. A selection of the
individual to perform in the office until the individual is properly chosen to the office or the
position. For removing the individual or suspend which are appointed with no bias for any
rights in any contract among the people and the company (Rauws, 2016).
Alteration of the capital of shares
The board may effort to ensure everything that is compulsory for giving the result for any
determination that is changing the shares capital of the organisation, this also includes creating
the cash payments, defining the segments and to alter the rights of the members, appoint some
trustworthy person to deal with in behalf of the member’s decisions, passing of the each
fractional to the nearest total share.
Interest payable by the member
If the board of the constitution has secure the rate or in any other cases the rate per annum is
around 2% that is upper than the decision for the unpaid judgment in the court where there the
Coles Group is registered (King, 2015).
Security dealing policy
This is to check with the agreement that is with the insider laws for trading, this comes under the
act of 2001 for the protecting the reputation of the Coles Group Organisation the company’s
directors and their employees or team members have to maintain confidence in the trading of
the organisation's securities and ignore some of the deal that is come from some of the officers
in the company and also in their branches which are not much familiar with the market outlooks
and it also gives rise to the reputational risk. The directors and the team members of the Coles
group must severely obey the policy and the trading laws. If there is any breach occurs from the
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member which are in the office than the trading laws has taken serious actions with the
individual and also with the company.
Diversity policy
The company like Coles group has committed to providing the work environment that holds
and rejoices insertion and diversity. The Coles group said that their team members are the most
important asset and it also promises to promote and also to maintain insertion and diversity. The
main aim of the Coles group is subject to the diversity is to create the safe and diverse work
environment and also maintain them this may reflect the community and the customers for that
Coles work for (Costa, et. al., 2015). The diversity in the Coles Group mainly focuses on areas
such as:
Gender balance: encouraging all the team members to access and also enjoy similar
opportunities for building their career in Coles Group and don’t pressurise any gender.
Accessibility: this is for improving the convenience of the stores, workplaces and the websites
for the team members and also for the customers with some incapacity.
Flexible working: this shows to support and encourage their team members to maintain the
work and the commitments of life with flexible working culture.
Indigenous: this is for building the opportunities and raising for some awareness, story sharing
make a strong relationship with the team member and the communities.
Pride: the Coles group have to create a safe and supportive workplace for the team members by
keeping aware and educate about some important topics.
Market Disclosure policy
The Coles Group has some important obligations that are in the listing rules of the Australia
Securities Exchange and also with the Corporations Act 2001, this is to keep the market learned
about the material that may have an effect on the price and the company's values for securities (
Salas, et. al., 2017).
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Social Responsibility
Corporate Social Responsibility is like self-regulation that is expressed in the various business
model that helps to improve the working in the company. Social responsibility is the key to the
economic development of the business and for the welfare of society. In the present scenario,
most of the company in Australia has implemented the corporate social responsibility policies
that help in the welfare of society. Now it is compulsory for all the organisation which is in
Australia to implement the corporate social responsibilities strategy for seeking growth in the
market. The government of Australia has launched the Australian center for corporate social
responsibility (ACCSR) that helps in checking the processes of the organisation in the market
and then ACCSR ranks them their business social responsibility on the basis of the organisation
performance (Fidalgo, et. al., 2015).
Coles Group is one of the largest retailers in the sector of food in Australia and their objective is
to deliver the best values for its customers. This organisation is working and controlling in
Australia from more than a hundred years and it continues to serve the quality product that may
help the organisation to maintain a great position in the market in Australia. Cole's group also
focuses on corporate social responsibility by developing the relationship with the Australian
farmers and especially their families through support their family's needs. This organisation
making the efforts for the development of the industry of food and this all done by
implementing the education programs for its employees and also for the customers. This
organisation also implement many responsibility policies that help in seeking a reputation in the
market.
Ethics
The ethical sourcing policy of the Coles group is based on the Ethical Trade Initiative (ETI) and
also based on the international labor organisation conventions and following are the points on
which the company focus on:
 Forced on the bonded labor
 Legal requirements
 Illegal labor
 Child labor
 Cruel treatment
 Business integrity
 Working hours
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 Supply chain
 Safe working environment
 Regular employment
 Discrimination
The ethical sourcing policy is mainly applied for all the products and brands of the Coles, meat
and fresh produce. The suppliers of the Coles group has ready to meet the policy and also the
principles as part of their agreement term and the conditions (Susanto, et. al., 2019). If any
supplier is refuse to follow their terms and policy or ethical sourcing policy then the
organisation has the rights to terminate the trading agreement of the suppliers. The Coles group
is the first organisation or the supermarket chain that to adopt the supplier Ethical data
Exchange, this is the global ethical supply chain management phase. SEDEX is the platform
which is recognised internationally for accessing the risk in the chain supply. The suppliers for
different product such as for meat, fresh produce and many more have to complete the risk
assessment based questionnaire and on the basis of that result they are rated as low, medium and
high risk, in which the medium and high risks are required to check with the help of free outside
provider that is hired by the Coles group.
Cole’s Group Culture
The terms and circumstances for the employment are more than 89.9 percent of Cole's group
team members and they are fixed through shared agreements. This organisation has the right of
the team members to convey as separately or as together and also with the involvement of the
third party or without the involvement of the third parties (Von, et. al., 2016). From many years
Coles has implemented the many available innovations that also includes the team establishing
committed to the digital availability, modifying the car parking in new stores that allow the
better access for the people with incapacity. In the year 2018, Cole's group has launched the
second accessibility Action plan that is for the period for 2018 to 2020 and it gives the details of
the improvement in stores, workplaces, and also with the digital assets. This plan highlights
their commitments of the experience of shopping for the people of Australia and for the other
working situations for the team members which are with some disability. This mainly focuses
on three things such as:
 Great place for the work
 Engagement and the community
 Services and the products.
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Performance and Measurement
In this the share prices of the Coles group has been jumped at the highest level, the shares of the
Coles group has gathered 2.2% at the price of $12.60 in the trade of the morning. The
supermarket business is to be seen as the poorer brother to the Woolworths when before its
separation from the Wesfarmers.
The latest news of the supermarket and the supplier and their survey showed that the Coles
group have on the peaked (Prochazka, et. al., 2017).
Teamwork in a place where all work
Everybody will know that the organisation wants to trust the good team members. If there is a
team of effective team members at the workplace then it helps the organisation to reach success.
There are some qualities of the good team and their performance in the team.
Genuine Commitment: the players which are in the team are committed with their cause. They
also know if there is an urgency then they definitely in the office for doing the work, they
always struggle for excellence.
Be Flexible: the team members are always flexible in doing their jobs and they are also flexible
to the situations of any kind and stand to tackle challenges without showing the signs of
pressure.
Always ready for the help: if there is any member of the team have in trouble then the other
member has to help and guide the member to achieve their objectives (Zulvia, 2018).
Keep the team informed: always share an individual's opinion to others in the team and not
come with the plan to take the credit. Always keep the members of the team be informed.
Coles Group Share Price
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colesgroup.com, 2019. Coles group, our performance. colesgroup.com. available at
https://www.colesgroup.com.au/home/?page=home [accessed on 05-06-2019]
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Conclusion
Cole’s group is the second largest retail company in Australia, in this report, it is concluded that
the share price and effective team working strategy of this organisation make them stand as the
success in the Australian families. The main objective of the Coles group is to lower the costs of
the families who are living in Australia. The company's share rises up in this year and it comes
on the peak after Woolsworth which is the top retail company in Australia. The Organisation
has put more efforts for social responsibility and try to make a different business model that
helps the company to improve their work ethics. Teamwork plays an important role in Cole's
groups because the better understanding in the team and coordination can make the
organisation to achieve success.
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References
 Costa, P.L., Passos, A.M. and Bakker, A.B., 2015. Direct and contextual influence
of team conflict on team resources, team work engagement, and team
performance. Negotiation and Conflict Management Research, 8(4), pp.211-227.
 Fidalgo-Blanco, Á., Sein-Echaluce, M.L., García-Peñalvo, F.J. and Conde, M.Á.,
2015. Using Learning Analytics to improve teamwork assessment. Computers in
Human Behavior, 47, pp.149-156.
 King, S., 2015. Political capabilities for democratisation in Uganda: good
governance or popular organisation building?. Third World Quarterly, 36(4),
pp.741-757.
 Prochazka, P., Miklas, J., Pazdera, I., Patocka, M., Knobloch, J. and Cipin, R., 2017,
September. Measurement of Power Transistors Dynamic Parameters.
In International Conference Mechatronics (pp. 571-577). Springer, Cham.
 Pulker, C., Trapp, G., Scott, J. and Pollard, C., 2018. Alignment of Supermarket
Own Brand Foods’ Front-of-Pack Nutrition Labelling with Measures of Nutritional
Quality: An Australian Perspective. Nutrients, 10(10), p.1465.
 Rauws, W., 2016. Civic initiatives in urban development: self-governance versus
self-organisation in planning practice. Town Planning Review, 87(3), pp.339-361.
 Salas, E., Prince, C., Baker, D.P. and Shrestha, L., 2017. Situation awareness in
team performance: Implications for measurement and training. In Situational
Awareness (pp. 63-76). Routledge.
 Susanto, A. and Widyaswati, R., 2019. The Effect of Earnings Management on
Company’s Performance with Audit Quality and Company’s Size as Moderating
Variables. Telaah Bisnis, 18(2), p.2017.
 Von Drasek, W.A., Banks, R.H. and Furman, G.S., Nalco Company LLC,
2016. Method and apparatus for monitoring and controlling the application of
performance enhancing materials to creping cylindersto improve process. U.S.
Patent 9,388,530.
 Zulvia, Y., 2018. DISCLOSURE OF CORPORATE SOCIAL RESPONSIBILITY
(CSR) AND ITS EFFECT TO THE FINANCIAL PERFORMANCE OF SHARIA
BANKS IN INDONESIA.
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