Situational Analysis and Strategic Recommendations Report for Coles

This report provides a comprehensive situational analysis of Coles Supermarket, an Australian retail giant. It begins with an introduction outlining the importance of situational analysis in modern business environments. The main body of the report presents a detailed SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis, evaluating Coles' internal strengths such as its market position and cost-saving offerings, and weaknesses like negative publicity and lower profitability. It also examines external opportunities like low inflation and geographic expansion, and threats such as intense market competition and changing customer demands. Furthermore, the report includes a strategic options and recommendations template, exploring actions the firm could take to meet opportunities and address threats, along with an analysis of the risks and benefits of each strategic option. The report concludes by emphasizing the need for Coles to adapt and develop its resources, competencies, and capabilities to maintain its competitive advantage in the dynamic supermarket industry.

Situational Analysis and
Strategic Recommendations
Report

Table of Contents
INTRODUCTION...........................................................................................................................1
Main Body ......................................................................................................................................1
SWOT Analysis of Coles: ...............................................................................................................1
Strategic Options and Strategic Recommendations Template.........................................................4
Strategic options..........................................................................................................................4
Strategic Recommendations........................................................................................................5
REFERENCES................................................................................................................................8

INTRODUCTION
In the modern business environment the key motive of business is to attaining higher
growth and success within the commercial centre. For the sack of developing organizational
performance, businesses are concern over implementing situational analysis as to collection of
tools which are applied by managers for analysing the internal and external environment
(Kakuma and et. al., 2011). The present report is based on Coles Supermarket, it is an Australian
supermarket, retail and consumer service chain. The headquarter of the firm is in Melbourne as
an essential part of Coles Group. This report is based on determining the performance of Coles
and the evaluation will be taken place with the support of SWOT analysis as it is effective in
providing detailed analysis over the internal and external factors of the firm.
Main Body
SWOT Analysis of Coles:
SWOT is an effective tool which is based on 4 different aspects like strength, weakness,
Opportunities and threats. SWOT is mainly applied by businesses for the purpose of determining
the strategies which are applied by the businesses to exploit external opportunities, counter
threats or build on & protect the strength and eradicates its weaknesses (Morse, 2015). Coles is a
supermarkets Australian Pty Ltd company and the key concern of the business is to attaining
higher competitive advantage by analysing its internal and external factors. The SWOT analysis
of the firm is associated as below:
Strengths This refers as the internal strategic factor which has direct influence over
the performance of Coles at wider level. As a large and most leading
company in the segment of retail supermarket chain, Coles has various
strengths which are effective in enabling the business to be sustain within
global market (Blundell, 2013).
The key strength of Coles is that; it is the most leading 2nd largest
performer in Australian grocery sector. The company is offering cost
saving products and services which are effective in grabbing the attention
of customers towards the firm, thus the consumable goods are indigenous
in nature. The company is producing highly attractive and beneficial
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products that are effective in satisfying the needs and wants of customers.
The company is also maintaining an effective track record of emerging
complimentary businesses by the strategic support of mergers and
acquisition. Therefore, Coles has concern over integrating companies
which are based on technological aspects for the reason of execution of
suitable business operations and building up reliable supply chain.
The another major strength of Coles is that, the firm is having expertising
in expansion of business within a new market, as the company is having
highly effective brand portfolio which helps the firm in easy expansion
within new market. The expansion; helps the business to create new
revenue stream and diversify their economic cycle risk in which they are
operating (Coles and Mitchell, 2011).
The strengths of the firm has not only protecting the existing market
share but also promote the business in penetrating new markers.
Weakness Weakness are refers as the aspects which develops issue in the
progression of the firm. Weaknesses are requires to be improve for the
the sack of the development of Coles in effective manner.
The key weaknesses of Coles Supermarket is that due to negative
publicity of company regarding unfair negotiation with supplier in
Australia and this affects the goodwill of the firm in front of society.
The lower profitability ratio is another weaknesses of Coles, thus the net
contribution of Coles are less that the industry average ratio. Due to high
competition within market Coles supermarket has requires to invest in
technologies for the purpose of attaining higher growth (Manzaneque
Corona, 2014).
The company is also facing issues in tacking the challenges which are
arises due to entering into new segments as the competition withib
market is so high.
Opportunities This is the key external factor which also affects the performance of
Coles at wider level. The opportunity attained by business is the higher
customers base, as the company is having good brand image and attract
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the customers by its offerings in which cost saving services and products
and involved. Therefore, this is effective for the firm in building
opportunities to increase their market share.
Coles has applying online internet sources for the purpose of creating
awareness among the people at global level and the implementation of
tools and technologies are effectual for the business in building
relationship with customers at global level via the presence of internet
sources (Kizil and et. al., 2013).
As per the economic estimation, the rate of infliation is low and it is also
expected to remain low in the future perspective. However, this refers as
an opportunity for Coles, thus the cost of input will remain low in the
future.
Geographic expansion can help Coles to reach out at newer regions
globally.
The new technology gives an opportunity to Coles to exercise
distinguished pricing strategy in the new market and it will beneficial for
the business to maintain the loyalty of their customers.
The suitable adoption of new technologies with the support of
government agreement Coles will gain opportunity to enter into a new
emerging market.
Threats The major threat for Coles is the intense rivalry within the space of
supermarket which has led to food prices are droping to dangerously low
edge due to the effective amassed market. The key threat of the Coles is
the available competition within market. Thus, in the supermarket
industry competition is so high and this may have direct impact over the
market share of Coles.
The emergence of new of high tech technology and the increasing
adoption of the technologies by rivals could be determined as the major
threat for the firm (Timsina, Bastakoti and Shivakoti, 2016).
Changing customer demand is also a major threat of Coles, as a
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supermarket chain the major issue is faced by the firm is changes arises
in the market demand as the needs and wants of people are changed as
per the change arises in the trend.
Strategic Options and Strategic Recommendations Template
Strategic options
What actions could the
firm take to meet address
the opportunities and
threats that the firm is
facing?
In the competitive business environment, the key motive of each
small as well as large business enterprises is to attain significant
position within market to attain growth and success. As a large
supermarket firm, Coles Supermarket Pty Ltd. requires to adopt
new and advance technologies for the purpose of developing the
performance and this could be beneficial for the firm in meeting
the opportunities. Market competition and the adoption of new
technologies by the rivals are recognised to be the major threat for
Coles and these threats are addressed via the adoption of new and
advance technologies as technologies are effective in developing
the operations of the firm and providing competition to its rivals.
Should they change their
business level strategy, or
should they keep their
current strategy.
Coles Supermarket is currently using cost effective strategy which
is beneficial for the firm in providing cost saving products and
facilities and attracts the customers at wider basis, so there is no
need for Coles Supermarket to change their strategy. For instance,
the company incurred less cost in their operations and the
available cost will be supportive in conducting effective
promotional campaign.
Does the firm currently
have the resources
competencies and
capabilities to address the
opportunities and threats?
As the most leading supermarket chain, Coles Supermarket has an
effective brand image at global level and this may consider as the
availability of competencies which are effective in addressing the
opportunities and threats. For instance, The company is having
appropriate availability of human resource which could be
effective for the firm in promoting their operations and on the
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other hand, employees are also concern over reducing the chances
of wastage by applying suitable technologies and this turns as the
capability of Coles. The available resources, capabilities and
competencies are effective in addressing the opportunities and
threats of Coles Supermarket.
Do they need to gain or
develop them?
Yes Coles Supermarket needs to gain or develop their resources,
competencies and capability, because in the industry of
supermarket, competition is so high and the rivals are concern
over adopting new and advance technologies within their
operations for the purpose of attaining higher growth and success.
However, for the purpose of maintaining position within market
Coles Supermarket requires to make development in their
resources so that capabilities can be utilised to attain
competencies.
What areas actions in the
value chain would they
need to take if they were to
follow a new business level
strategy?
There are certain areas where organisation can make efforts to
make improvement in the value chain. For instance: Company is
Re defining the manner in which employees are recruited, thus the
company is using cost effective manner to hire employees as
Coles Supermarket is hiring employees through social media sites
as it is the most easy and cost saving manner to recruit best talent
for improvement of the business operations.
The company is also using digital platform to build strong
relationship with customers at global ground.
Strategic Recommendations
Strategy Option Risk Benefits Decision rank. And
why (1 to 5)
Focus on the
principles of fairness
Threats to achieve
objectives
Using facts and
principles of utmost to
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for future negotiation
to persuade suppliers
make fair negotiations
with suppliers help in
finding new ways to
defend tactful
decisions of them.
Hereby, rather than
refusing what
suppliers are
demanding, it will
prove better for Coles
to conduct deep
analysis first. This
would help in
analysing the reason
behind unfair demand
so that engagement of
them can be taken to
make better decisions
for purchasing the
desired commodities.
The chance of taking
decisions for
implementation of this
strategy is near about
3.5, because making
discussion with
suppliers for unfair
demand or completing
the same, may increase
cost of raw materials.
But creating fairness in
negotiation can
develop better
relationship with
suppliers also, that
may help management
of Coles in persuading
them in favour of
company's
profitability.
Making investment
in latest technology
Increase cost of
production
As major challenge
that Coles currently
face in supermarket, is
intense competition.
Therefore, making
investment in
introducing new
technology in stores
for enhancing
customer experience,
may help in earning
Chance of taking
decision for
purchasing new
technology is 4,
because it will develop
new competency for
Coles, that may help in
getting high retention
of customers as well,
by enhancing their
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better competency
level for Coles over its
competitors.
satisfaction level.
Reduce direct cost,
overheads and
inventories
Time inefficiencies Stock control is
considered as the best
way for streamlining
the business and
improving the cash
flow. Similarly,
reducing overall direct
cost by negotiating
with suppliers for
better prices and
discounts, will also
lead Coles to improve
its profitability ratio.
In addition to this,
regular reviewing the
overhead expenses
will improve and
increase net profit
also, where
benchmarking
technique will
highlight the other
areas also, that needs
to be improved.
Management of Coles
can give 4 ratings out
of 5, for implementing
the decisions of
reducing expenses and
control the stocks,
because this would
help in taking
advantage over
seasonal clearance of
stock.
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REFERENCES
Books and Journals
Kakuma, R. and et. al., 2011. Human resources for mental health care: current situation and
strategies for action. The Lancet. 378(9803). pp.1654-1663.
Morse, J. M., 2015. Critical analysis of strategies for determining rigor in qualitative inquiry.
Qualitative health research. 25(9). pp.1212-1222.
Blundell, L., 2013. Resurrection of a retail giant. Property Australia. 27(9). p.22.
Coles, C. and Mitchell, J., 2011. Gender and agricultural value chains: A review of current
knowledge and practice and their policy implications.
Manzaneque Corona, E., 2014. Comparison of marketing policies applied by the same company
in different countries and analysis of the reasons for the differences.
Kizil, C. and et. al., 2013. Hershey's Entry to the Australian Market with a New Brand: An
Accounting and Marketing Perspective. Emerging Markets Jou rnal (EMAJ), University
of Pittsburgh Press (USA). 3(2). pp.97-126.
Timsina, K. P., Bastakoti, R. C. and Shivakoti, G. P., 2016. Achieving strategic fit in onion seed
supply chain. Journal of Agribusiness in developing and emerging economies. 6(2).
pp.127-149.
Curtis, V., 2016. Getting started in small business for dummies. John Wiley & Sons.
Walsh, B., 2015. Marketing Agricultural Products and Services: AgGuide Business Series. NSW
Agriculture.
Online
Coles SWOT Analysis / Matrix. [Online]. Available Through:
<http://fernfortuniversity.com/term-papers/swot/1433/1248-coles.php>.
Coles SWOT Analysis. [Online]. Available Through:
<https://www.essay48.com/term-paper/13855-Coles-Swot-Analysis>.
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