Coles Supermarket: Management Accounting Issue Analysis Report

This report analyzes the management accounting issues at Coles Supermarket, based on an article in 'The Sydney Morning Herald'. It identifies three main issues: lack of a clear strategic market position, difficulty in addressing the demands of consumers, and inefficiencies in business operations. The report details how these issues affect Coles' performance, including the loss of 9% despite increased gross margins. To address these challenges, the report suggests using technology to improve efficiency, reviewing and revising the current management system, and implementing continuous improvement approaches. The report emphasizes the importance of strategic planning and efficient operations for Coles to maintain its market position and profitability. The report also includes a bibliography of relevant sources.

Running head: MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
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1MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
Memorandum
To: The Board of Director
Coles Supermarket Australia Pty Ltd
Australia
From: Consulting Firm
Date: September 13, 2019
Subject: Management accounting issue
This is to draw your kind attention towards the management issues present in your
organisation, highlighted by Dominic Powell in “The Sydney Morning Herald” as on 24th of
Aug, 2019 with the title, ‘Messy’ Coles result keeps investors keen on Woolies and
Wesfarmers. This is to analyse the management issues heighted by Dominic Powell in The
Sydney Morning Herald. As the Coles operates the retail super market chain across the
Australia. The firm operate high number of supermarket that is 807 supermarkets across
Australia along with the more than 100,000 employees, firm cover the almost 80 % share of
the retail market across Australia.
Dominic Powell said, “Despite continued growth and a landmark profit for its online
business, Coles Group's first stand - alone result has left market watchers uninspired”. The
result of the firm reported a number one – off costs and less earnings before the demerger
with the Wesfarmers, unexpected the profit of the firm back in the black while the firm still
reported the growth in the gross margin even the firm suffered loss of 9 %. Furthermore,
though, the firm announces the unexpected special dividend, the shares of the firm rallied two
percent as retailer was heading facing the toughest periods.

2MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
Further, Dominic Powell highlights the main management issue with the firm as “lack in the
clear strategic position in the market” in the basis of the JP Morgan’s Shaun Cousins’
comment “The food business lacks a clear strategic position in the market unlike Aldi and
Woolworths, and it struggles to address the profit impact of the more demanding consumer”.
Further, Powell consider the statement of Anton Du Preez that highlights the strength of the
firm by stating “the retailer was leading Coles and expected it to produce a strong result”. In
this Powell highlight the strength of the firm that Coles is more efficient and profitable in the
retail business. Only the management issue in the business system of Coles allows the
Woolworths, a strong competitor of Coles, to give strong competition to Coles.
Hence, Dominic Powell mainly highlighted the following issue in the management system of
the Coles those are Lack of clear strategy regarding the market position, struggling to address
impact of the more demanding consumers and Efficiency in running the business.
As per the article published in The Sydney Morning Herald, the above mentioned three
management issues are mainly faced by the firm in their current management practices that
also affect the performance of the firm in the recent times. The first issue is that the
management of the firm does not have a clear strategy regarding the market segmentation of
the firm as well as the business of the firm also deals with the every market segment and
retail every possible product. This such type of the strategy firm may lose its originality and
not be able to make it separate name which can affect the customers of the firm. The second
issue is that the management of the firm is not capable to address the impact of the more
demanding consumers. Lastly, the third issue in the management system of the Coles that it is
not operating the business efficiently as the firm reported the loss of 9 % while the gross
margin of the firm is increased.

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This issue can badly affect the performance of Cole in long run. Hence, this appropriate
solution for the above mentioned issues should be adopted by the management to avoid the
any losses of the firm as soon as possible. The management need to analyse each aspect of
the current management of the firm to fix the highlighted management issues in the business
system of the firm as well as to increase the efficiency and boost the sale of the firm. The
management can avoid the identified management issues by following the below mentioned
management techniques and tools: -
The first tool is to use technology in the operations of the business. The use of technology
always help the firm to increase the efficiency in the management of the business. As the firm
operate in the e – commerce platform and very well familiar with the technology hence firm
should adopt as much technology as much possible also in its offline stores.
Next, the firm can use second tool of management, in which firm need to review the each and
every aspect of its current management system to find the lack in the system and accordingly
revised the system. This tool helps the firm to increase the efficiency of the management
system as well as this also inform the management of the firm about the current management
system.
Another tool, which can help the management to increase the efficiency of the management
system is to implement a continuous improvement approach. It is an ongoing activity of
improving productivity and efficiency this help the firm to develop its management system in
a continuous way.
Hence, Cole have several issue in its management system which is affect its performance.
Lack of clear strategy regarding the market position, struggling to address impact of the more
demanding consumers and Efficiency in running the business are the few important
management issue present in the management system of the Coles. The firm need to adopt the

4MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
management tool and techniques to avoid this issues. The suggest tool and techniques for the
Coles to improve its efficiency are using technology in their operation and management, to
review the existing system and to implement a continuous improvement approach.

5MANAGEMENT ACCOUNTING ISSUE IN BUPA HEALTH & CARE
Bibliography
Afonina, A., 2015. Strategic management tools and techniques and organizational
performance: Findings from the Czech Republic. Journal of Competitiveness, 7(3).
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Cameron, E. and Green, M., 2015. Making sense of change management: A complete guide
to the models, tools and techniques of organizational change. Kogan Page Publishers.
Chenhall, R.H. and Moers, F., 2015. The role of innovation in the evolution of management
accounting and its integration into management control. Accounting, organizations and
society, 47, pp.1-13.
Coles 2019. About Coles. [online] Coles.com.au. Available at:
https://www.coles.com.au/about-coles [Accessed 13 Sep. 2019].
Kalyanaraman, P., Anouncia, S.M. and Balasubramanian, V., 2018. An Investigation on E-
Learning Tools and Techniques Towards Effective Knowledge Management. In Knowledge
Computing and its Applications (pp. 335-346). Springer, Singapore.
Kaplan, R.S. and Atkinson, A.A., 2015. Advanced management accounting. PHI Learning.
Powell, D. 2019. 'Messy' Coles result keeps investors keen on Woolies and Wesfarmers.
[online] The Sydney Morning Herald. Available at:
https://www.smh.com.au/business/companies/messy-coles-result-keeps-investors-keen-on-
woolies-and-wesfarmers-20190823-p52k0c.html [Accessed 13 Sep. 2019].