Coles Supermarket: Strategic Management, Challenges, and Strategies

This report provides an in-depth analysis of Coles, an Australian supermarket chain, focusing on its strategic management and acquisition strategies. It begins with an introduction to strategic management and the chosen organization, Coles, followed by a detailed background of the company and its evolution since its inception in 1914. The report identifies and discusses the major challenges Coles has faced in the last five years, including supply chain issues and the impact of globalization and technology. It then examines Coles' current information system strategy, comparing it with that of its main competitor, Woolworths. The importance of a strategic management plan in achieving a competitive advantage is discussed, followed by two proposed information system strategies: content management systems for website management and customer relationship management (CRM) for marketing. The report concludes with a discussion of the best time to introduce the new strategies and their overall impact.

IS STRATEGY
MANAGEMENT
AND ACQUISITION

Table of Contents
INTRODUCTION......................................................................................................................3
MAIN BODY.............................................................................................................................3
Background of organisation...................................................................................................3
identifying and discussing the major challenges faced by the company in last 5 years........3
Current information system strategy......................................................................................3
Comparison of information strategy with main competitor...................................................3
Discuss the importance of a strategic management plan in helping Coles achieving
competitive advantage............................................................................................................3
Proposed to information system strategies which will provide solution to the current
company needs and problem..................................................................................................3
Selection of appropriate strategy............................................................................................4
Best suitable time to introduce new strategy..........................................................................5
CONCLUSIONS........................................................................................................................5

INTRODUCTION
Strategic Management can be defined as using the resources of a business
strategically in order to achieve its goals and objectives. It involves planning and
implementation of the various initiatives by the top management of a firm. It is an important
component for any organization as it provides an overall direction to it by developing plans
as well as policies (Mahanti, 2019). The process can also include allocating the different
resources of the company in order to effectively implement the plans. Organization chosen
for this report is Coles, which is an Australian supermarket and retail chain that was founded
in the year 1914. The report provides a background of the organization and its strategies since
it was first introduced. It also includes a discussion about the major challenges that the
company has faced over the last five years. Two new strategies have also been proposed that
can be helpful in providing solution to the current needs and problems of the company.
MAIN BODY
Background of organisation
Coles is a leading Australian supermarket and retail chain that is headquartered in
Victoria, Australia. The company was founded in the year 1914 by George Coles and has a
vast presence over the country with nearly 2500 stores. Coles provides quality and valuable
services to the customers due to which it has a large base of loyal customers. The company
visions to become the most trusted retailer in the country and aims to feed all Australians and
help them in living a healthy and happy life. Since the company was established, its strategy
has been innovating for the future. The company’s strategy is also about delivering high
quality products to the customers at low prices. The major strategies of the respective
company include smarter selling, inspiring customers and winning together. Coles has
introduced latest technological systems in its different stores in order to provide the
customers with a seamless shopping experience.
Being one of the leading retailers in Australia, one of the major objectives of Coles is
to deliver great value to the customers (Luthans and Doh, 2018). The company has hit many
milestones since its inception in the year 1914. In the year 1948, the company launched its
first ever cosmetics range in the market. Apart from this, the company converted its stores
into self-service stores that set the standard for supermarkets in the 21st century. After 50
years of its growth, Coles hot another milestone in the 1970s with a network of retail stores
that were spread across the nation. The year 1971 saw the launch of a discounting program,

wherein the prices on 7000 items were reduced permanently (Our history, 2020). Due to a
rapid increase in technological advancements in the 1990s, the company adopted new
technology that helped it in modernizing its inventory tracking system. Over the years, since
its inception, the company has significantly invested in implementing significant changes in
order to improve the overall experience of its customers. Today, Coles is regarding as one of
the leading retail and supermarket chains in Australia.
Identifying and discussing the major challenges faced by the company in last 5 years
There are number of issues and problems that is faced by Coles company in last five
year as well as current situation. Coles Company is providing different types of products and
services in order to meet with the needs of customers. Respective company is a super-giant
that is facing number of issues and problems due to Corona virus. It is essential for this
organisation to clearly identify and determine the issues for successfully overcoming the
problems and enhancing business activities. In present time the major issues of Coles
Company is less supply chain (Miettinen and Stenbacka, 2018). Due to increase in Corona
virus respective company is not able to provide its products and services to different part of
the world and it influence sales or profitability of business. In last five year, Coles company
have faced issues of globalization and not able to enhancing business activities in different
part of the world. This issues impact on growth rate and market share of respective company.
Technology can be considered as the challenge for this company and it has impact on overall
business functions and activities of organisation. There is different technology in market area
which assists in effective and efficient functioning of business. In last five years, Coles
Company is not able to bring new and advance technology in business that lead to enhancing
overall practices of respective company.
Current information system strategy
Information system strategy is very important part of business and it helps company
to increase business activities and task in more effective and efficient manner. This strategy
helps company to allocate, store, process as well as transfer data or information. It assists in
better decision making process and effective conduct business activities. Coles Company is
current using acquisition system. This is most significant for reduction in the data entry
reduction as well as help in improving the security of data. It is important for respective
company to collect and store required information in correct and accurate manner in order to
enhance functioning of business (Rendon and Snider, 2019). Through current information
system strategy and ERP Coles company is able to gather required set of information and
data in order to take effective and most accurate business decisions. ERP information system
is useful for streamlining business process as well as enhancing productivity of business. This
information system strategy is significant implemented as well as suitable for business. But
due to changes in technology and issues in business environment respective company needs
to modify the information system. Improvement on information system will lead to increase
business practices as well as smoothly conduct different task of business. In present scenario
corona virus is the main challenge for various companies and it is very difficult for
organisation to enhance practices in this type of situation.

Comparison of information strategy with main competitor
Current information system strategy in Coles
Coles to performing at function in the supermarket of Australia where it provide the
goods and services to the customers that it can satisfy the needs and requirements of
customers by establishing a long run business. Managing the information system within the
organisation help the schools in performing its functions as well as provide several kind of
advantage to the firm. In relation to the current situation the most significant advantage to the
system acquisition method include reduction of data rendering reduction of errors increasing
the consistency as well as use integrity of the data. This is helping Coles in reducing burden
from its employees by reducing entries of the data (Molinari, 2016). This also helps in
improve the security within the organisation. There is a need of improved by using the
information system within the organisation because currently companies operating with
information system in accounting of the organisation. Relation to the current market situation,
due to mass spread of coronavirus, supply chain of schools is continuously decreasing which
also impacting on the marketing function of the organisation. In Current, organisation is only
operating information system in its accounting management. The system healthy organisation
in managing the accounts and services of the organisation so that it can easily identify the
data at the required time and can use this data to formulate a separate balance sheet profit and
loss and various other accounting systems by the help of accounting software and information
systems. Companies also using information system in one more area which is main cash
counter of the organisation. Organisation is using the barcode technology which helps in
managing the stock as well as billing of various items (Scalera, Mukherjee and Piscitello,
2020).
Current information system strategy of Woolworth
In relation to Woolworth, it is performing for better than Coles in development and
use of information system. This is because organisation is using a proper information system
in every aspect and department of the organisation which help the firm in developing separate
image within the market which can be used by the organisation to attract the customers. Even
after option of information system within the organisation, is lacking behind the market
where it is facing a number of it troubles in recent months. This can be seen where the world
was having a number of company’s wide system upgrades which introduce a learner
operating model. negatively on the organisation which decreases the worthiness of the form
within the market as well as decrease the performance and productivity of employees cause
of improper implementation of new IT system (Gomez-Mejia, Patel and Zellweger, 2018).
Discuss the importance of a strategic management plan in helping Coles achieving
competitive advantage.
Information system is in need for the current business this is because it is increasing
dramatically where the most of business is going to use information system as a competitive
edge from its competitors. This is because information system is effective to the organisation
in bringing various kinds of benefits which can be used by the firm in managing the business

in an appropriate manner by handling its internal and external processes for meeting the daily
needs and requirements. In relation to Coles, information system is also useful to the
organisation which helped the firm in managing different functions and achieving a
competitive edge within the market. Importance of information system in relation to the
organisation is discussed below:
New product and services: The major importance of using information system by the
organisation is that it will help the organisation and improving and securing a better future by
establishing a border perspective within the firm. This is because it will help the farm in
coordinating and designing a proper system which will facilitate easier functioning and
analysing the independent processes like information to product value, organising work
activities and many more. This will provide a competitive advantage to the organisation in
creating producing and selling its products in an appropriate manner and focusing on the
main goals (Li, Li and Wang, 2016).
Information storage: Using a proper information system and it system will help the
organisation in storing different activities. This is because information system helps the
organisation in storing the operational data communication all records documents and
revision history which will help the organisation in reducing that time especially at the time
of searching data for customer base.
Proposed to information system strategies which will provide solution to the current company
needs and problem
In relation to Coles, organisation suffering from bad marketing structure which also
impacting on the performance of the firm within the market as well as reducing the chances
of success. This is because there is no proper information system which can be used by the
management staff of marketing team and it is directly impacting on the performance of the
marketing team as well as strategies in the market. For solving this problem there are two
kinds of strategies which can be adopted by the organisation to develop the information
system in marketing. These strategies are discussed below:
Content management system to better management of website: in relation to the
organisation, it is a best strategy which can be adopted by the firm to increase its market
share as well as from both the marketing function in an appropriate manner. Under this
information system technology organisation has to use the social media publishing research
and other platforms for managing its customer database in online manner. Under this
marketing strategy, Coles can use separate processes which help the firm in increasing ads
performance by selling the products online as well as managing important content on its
websites. This does not require separate machinery in infrastructure and other aspects which
can easily be covered by the IT committee of the organisation. It involves senior management
team members of marketing and content writers which can help the organisation in
maintaining effective content on its websites and social media platforms. Organisation can
also use information system database which will help the firm and using the data of customer
and identify potential customers (DePamphilis, 2019).

Digital marketing: organisation can also develop information system which will
support the digital marketing. The strategy is directly associated with the failure of first
strategy. Under the strategy organisation can only use the social media platform where it has
developed a separate information system which help in identifying the habits of customers.
After identification of regular customer organisation can target a separate customer base on
social media platforms where it can use its information system as a database.
Selection of appropriate strategy
In relation to Coles, it is working within the supermarket business where organisation
has a separate brand image within the market of Australia. This helps the organisation in
maintaining a separate customer base which can be used by the firm in achieving its goals
and objectives. In relation to information system, it is important for the organisation to use a
proper system within the firm so that it can achieve a separate market image as well as
maintain its different functions. Information system is required within Coles because of
marketing function. Organisation is lacking in its marketing function because of improper
information system and low management (Trichterborn, Zu Knyphausen‐Aufseß and
Schweizer, 2016). Therefore, to improve the information system within the marketing
organisation can use digital marketing as a main strategy which will help in achieving its
goals and objectives by combining the existing strategies with a newly formed information
system. Under digital marketing system organisation can market its product digitally by the
help of social media platforms and websites. Here it can use information system for providing
the identification of customers. Information system will provide various kind of database
related to the customer, which include the habits of customer types of customer taste
preference and needs of customer which can be targeted by the organisation on its digital
platforms. This strategy is best for the organisation for implementing the information system
within the firm because it will improve the marketing function as well as help the
organisation in achieving a separate brand image (Goedhart, Koller and Wessels, 2017). This
will also help the organisation in using the information system in an appropriate way where it
can target the customers by achieving goals and objectives.
Best suitable time to introduce new strategy
For implementation of a strategy on the organisation and achieving the successful
goals and objectives of a particular strategy adopted by the firm, it is mandatory by the
strategy implementers to use a proper functioning and system which is consist of appropriate
timing and different kind of actors with an impact on the strategy. There are different kinds of
factors and timings which can be considered by management team prior to implementing the
strategy. Different aspects related to implementation of strategies are discussed below:
Align with the priority is of key decision: For implementing the strategy of the
organisation it is necessary for the management staff to identify the priorities of key
stakeholders within implementation of new strategy. This is because there are various kinds
of keys decision makers in a strategy which help in implementation as well as orientation of
the strategy to the organisation. In relation to the currents organisational situation, key
decision maker within implementation of this strategy related to development of marketing

function and bringing information system for marketing and supply chain management
include employees, top level management, suppliers and marketing staff (Nelson, 2018).
Being flexible: In relation to current business, flexibility is a most important part in
introducing a new idea and changing the old concept by bringing new development. Enabling
the flexibility within the organisation it is important for the first to manage the functioning
and achieve a proper implementation of the concept related to information system.
Availability of resources: Identification of best suitable time to implement the
strategy on the organisation it is important to the management staff to identify. This is
because resources are the most important part for implementing a strategy on the
organisation. Using the appropriate resources is the liability of a manager for implementing a
new information system strategy. In relation to the current information system strategy,
organisation required different kind of resources which include human resources, technical
resources, technology, infrastructure related to implementation of information system and
many more (Field and Mkrtchyan, 2017).
CONCLUSIONS
It can be concluded from the above mentioned report that it is necessary for the
organisation to use proper information system for survivors in the competitive environment.
There are different factors which have to be considered by the organisation before
identification of a proper information system plan. In relation to development of information
system it is important to identify the current market position by comparing the current
information system in information technology of the organisation with its main competitors.
It can be identified that by using a proper strategic plan and identification of requirement
related to development of information system organisation can achieve competitive edge with
the market. It can also be concluded that selection of appropriate strategy and choosing the
best suitable time to implement the strategy can help the organisation in achievement of its
goals and objectives.

REFERENCES
Luthans, F. and Doh, J. P., 2018. International management: Culture, strategy, and behavior.
McGraw-Hill Education.
Mahanti, R., 2019. Data Quality: Dimensions, Measurement, Strategy, Management, and
Governance. Quality Press.
Miettinen, T. and Stenbacka, R., 2018. Strategic short-termism: Implications for the
management and acquisition of customer relationships. Journal of Economic
Behavior & Organization, 153, pp.200-222.
Rendon, R.G. and Snider, K.F., 2019. Management of defense acquisition projects. American
Institute of Aeronautics and Astronautics, Inc..
Molinari, S., 2016. Systemic acquired resistance activation in solanaceous crops as a
management strategy against root‐knot nematodes. Pest Management Science, 72(5),
pp.888-896.
Gomez-Mejia, L.R., Patel, P.C. and Zellweger, T.M., 2018. In the horns of the dilemma:
Socioemotional wealth, financial wealth, and acquisitions in family firms. Journal of
Management, 44(4), pp.1369-1397.
Li, J., Li, P. and Wang, B., 2016. Do cross-border acquisitions create value? Evidence from
overseas acquisitions by Chinese firms. International Business Review, 25(2),
pp.471-483.
DePamphilis, D., 2019. Mergers, acquisitions, and other restructuring activities: An
integrated approach to process, tools, cases, and solutions. Academic Press.
Trichterborn, A., Zu Knyphausen‐Aufseß, D. and Schweizer, L., 2016. How to improve
acquisition performance: The role of a dedicated M&A function, M&A learning
process, and M&A capability. Strategic Management Journal, 37(4), pp.763-773.
Nelson, T., 2018. Mergers and Acquisitions from A to Z. Amacom.
Field, L.C. and Mkrtchyan, A., 2017. The effect of director experience on acquisition
performance. Journal of Financial Economics, 123(3), pp.488-511.
Goedhart, M., Koller, T. and Wessels, D., 2017. The six types of successful acquisitions.
McKinsey Global Institute.
Scalera, V.G., Mukherjee, D. and Piscitello, L., 2020. Ownership strategies in knowledge-
intensive cross-border acquisitions: Comparing Chinese and Indian MNEs. Asia
Pacific Journal of Management, 37(1), pp.155-185.
Online
Our history. 2020. [Online]. Available through:< https://www.coles.com.au/about-coles/our-
history>.