Business Strategy Report: Performance of Coles Supermarkets

This report provides a comprehensive analysis of the business strategy of Coles Supermarkets, an Australian supermarket chain. It begins with an introduction to business strategy and its importance for achieving organizational goals. The main body of the report delves into competitive strategies, including cost leadership and differentiation, which Coles can employ to gain a competitive edge. It then discusses performance measurement, outlining steps for setting standards, measuring performance, comparing results, and identifying deviations. The balanced scorecard is presented as a strategic performance metric, with recommendations for its application within Coles Supermarkets across various departments and for employee performance evaluation. The report concludes with several recommendations for Coles, focusing on improving efficiency, implementing employee training sessions, adopting effective strategies, and prioritizing marketing efforts to enhance customer awareness and achieve long-term strategic advantage. The report is supported by relevant references to academic journals and books.

Business
Strategy

Contents
INTRODUCTION...........................................................................................................................................3
MAIN BODY.................................................................................................................................................3
Competitive Strategy...............................................................................................................................3
Performance measurement.....................................................................................................................3
Balanced scorecard..................................................................................................................................4
Recommendations...................................................................................................................................4
CONCLUSION...............................................................................................................................................5
REFERENCES................................................................................................................................................6

INTRODUCTION
Business strategy refers to the plans which a firm can use in order to achieve its various
goals and objectives and obtaining strategic advantage over its competitive firms (Akter and
et.al., 2016). This project is based on Coles Supermarkets which is an Australian supermarket
headquartered in Melbourne, Australia. It will discuss the strategies which can adopt in order to
increase its performance.
MAIN BODY
Competitive Strategy
Competitive strategy is a long-term action plan which a company needs to develop in
order to get ahead of its competitors effectively. The competitive strategies which can be used by
Coles Supermarkets are as follows-
Cost leadership- In this strategy, costs are reduced so that profits can be maximized
effectively (Anwar and Hasnu, 2016). Coles Supermarkets can use this strategy so that it can
raise its profit share effectively. This will allow it to gain more space in the market through
enhanced market share.
Differentiation- In it, products are differentiated from that of the competitors so that
customers can easily recognize the difference. It can be used by Coles Supermarkets in order to
make its products appear different from the other companies operating in the market.
Cost focus- In it, specific focus is made on the certain market segments where the costs
can be reduced so that profits can be increased. It can be used by Coles Supermarkets in order to
target specific markets with lower prices.
Differentiation focus- In it, those segments can be focused on where differentiation in
products can be done effectively by the company. Coles Supermarkets can use it for gaining
sustainable advantage.
With regards to supermarkets operating in Australia Coles Supermarkets can use cost
leadership strategy so that profits can be increased.
Performance measurement
Performance measurement is a system through which information is collected about the
various processes in an organization and performance is measured. This is done in order to find
out deviations and variances if any so that they can be removed effectively. Coles Supermarkets
should use the following steps for measuring performance-

 Setting of standards- The standards are required to be set so that performance can be
measured. Coles Supermarkets can set standards on the basis of previous year data, sales
etc.
 Measurement of performance- Once the standards have been set, the performance
needs to be measured (Chen, Eshleman and Soileau, 2017). This can be done through the
use of various methods and techniques. Coles Supermarkets needs to measure
performance so that it can facilitate comparison.
 Comparison of performance- After the performance has been measured a comparison
needs to be done so that shortcomings in performance can be easily identified. Coles
Supermarkets needs to compare its performance with the set standards so that deviations
and variations can be easily identified.
 Identification of deviations and variances- Once the comparison has been done,
deviations and variances need to be identified so that a necessary rectifying action can be
taken effectively. Coles Supermarkets needs to identify its deviations and variances so
that they can be corrected to optimize the performance.
Balanced scorecard
Balanced scorecard refers to a strategic performance metric which can be used in order to
identify business functions and the outcomes associated with them (Balanced Scorecard, 2020).
It measures the performance of employees working in different departments in an organization
like finance, production, HR, sales etc. so that they can be given specific instructions if their
performance is not found up to the mark. The ways in which Coles Supermarkets can apply this
model are as follows-
 Departmental application- This technique can be easily applied in the context of the
company’s various departments. This will optimize the performance as well as also result
in increase in efficiency and effectiveness. Thus Coles Supermarkets needs to apply this
in its different departments like finance, production, HR, sales etc. so that departmental
performance can be improved.
 Measurement of performance of employees- This technique can be used in order to
measure the performance of the employees (Leonidou and et.al., 2017). This will result in
optimization of performance of employees of Coles Supermarkets so that they can
perform at their full potential.
 Taking action- This technique can be used to take the required action so that
performance can be effectively improved. In the context of Coles Supermarkets, this
becomes necessary so that action can be taken for implementing the improvements. This
will help a lot in raising the overall performance in the organization.
Recommendations
The recommendations for Coles Supermarkets are as follows-

 Improving efficiency- Coles Supermarkets must improve the overall efficiency. This is
required so that work can be done effectively without any problems. Improvement in
efficiency will automatically lead to higher productivity in work which is a good sign for
the company.
 Training sessions for employees- By using training sessions, employees can get
motivated and can remove the shortcomings in their work (Soltanizadeh and et.al., 2016).
The use of these sessions will lead towards improvement in the performance of workers
which will thus reflect in the performance of the company itself. Thus Coles
Supermarkets must use training sessions.
 Using the right strategies- Right strategies are required in order to gain strategic
advantage. In the context of Coles Supermarkets, it is important that its managers observe
the strategies which are adopted by its competitors so that right approach can be adopted
by the firm to get ahead of them in the long-run and achieve sustainable success in the
future.
 Focus on marketing- Marketing must be a key focus area for a firm. In the context of
Coles Supermarkets, it is necessary because with the right use of marketing techniques it
can ensure that its products reach the customers. Raising the awareness level of its
customers should be the focus of company. If it needs to increase its expenditure on
marketing it must do so in order to gain long-term strategic advantage over its rivals in
the market which will lead to maximization of profits.
CONCLUSION
From the above report, it can be concluded that business strategy needs to be prepared so
that sustainable growth can be achieved. A competitive strategy is prepared in order to analyze
the competitors of the business and performance measurement needs to be done in order to
identify shortcomings in performance and removing them. Also, balanced scorecard is prepared
to monitor the department-wise and overall performance and improving it.

REFERENCES
Books and Journals:
Akter, S. and et.al., 2016. How to improve firm performance using big data analytics capability
and business strategy alignment?. International Journal of Production Economics. 182. pp.113-
131.
Anwar, J. and Hasnu, S. A. F., 2016. Business strategy and firm performance: a multi-industry
analysis. Journal of Strategy and Management.
Chen, Y., Eshleman, J. D. and Soileau, J. S., 2017. Business strategy and auditor
reporting. Auditing: A Journal of Practice & Theory. 36(2). pp.63-86.
Leonidou, L. C. and et.al., 2017. Internal drivers and performance consequences of small firm
green business strategy: The moderating role of external forces. Journal of business
ethics. 140(3). pp.585-606.
Soltanizadeh, S. and et.al., 2016. Business strategy, enterprise risk management and
organizational performance. Management Research Review.
Online
Balanced Scorecard. 2020. [Online]. Available through:
<https://www.investopedia.com/terms/b/balancedscorecard.asp>