MBA503 Operations Management: In-depth Analysis of Coles Supermarkets

This report provides a comprehensive analysis of Coles Supermarkets, examining its organizational structure, purpose, and market position. It delves into Coles' operational strategies, including its approach to cost reduction, collaboration with Australian farmers, and product offerings, which encompass a wide variety of food and household items. The report also explores Coles' decision-making processes, its embrace of innovation, and its corporate social responsibility initiatives. Furthermore, it investigates the company's research and development efforts, process design, value chain (supply chain) management, and strategies for supply chain improvement, including the use of data and loyalty programs. The report also analyzes planning and control mechanisms, the link between decision-making and planning, feedback and control systems, and quality management practices, offering a detailed overview of Coles' business operations and strategic approaches.

Coles
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Organization Description
Coles Supermarkets Australia Pty Ltd
was established in 1914 as “Coles Variety
Store”.
Wesfarmers is the organization’s
parent company and its headquarters are
located in Melbourne.
 George Coles is the founder of the
supermarket chain.

The organization’s purpose
Coles’ purpose is to ensure that its clients are able to have access to
exceptional value albeit at lower services.
 Moreover, the organization aims to improve quality by offering produce
which is fresh.
The company has made it a primary mandate to foster necessary upgrades
with respect to the experience that buyers have while shopping (Wu et al. 2015).

Company size
The company has grown over the years in size due to its expansion
efforts.
Currently, 807 supermarkets operate in Australia.
 In addition, more than 100000 individuals are employed by the
organization.
The company controls over 80% of the market available in
Australia.

Operations strategy
 The strategy generally applied by
Coles aims at reducing the expenses
that Australians might be forced to
incur while on their shopping
expeditions (Trevena et al. 2015).
 The result is that the supermarkets
collaborate with Australian based
farmers to ensure the sustainability of
the operation’s future.
 Hence, the space in which Cole’s
operates is characterized by increased
efficiency levels.

The products or services offered by Cole
Coles offers its clients different
products and accompanying
services.
The supermarket offers various
food commodities that buyers
can purchase.
They include baked products,
fish as well as seafood, frozen
foods and items that cater for
the dietary concerns which might
be prevalent among the
company’s customers (Phillipov
2016).
Household, beauty and
stationery products are offered
for purchase.

Coles’ operation strategy
The company does not clearly stipulate the strategy it relies on
for its operations.
Hence, difficulties present themselves where the strategies opted
for are to be evaluated for transparency.
Moreover, Coles has opted for some improvements in the
direction that it was to take with respect to its strategy leading to
some organizational evolution.
The enterprise can improve the strategies it uses for handling its
clients particularly after they have made their purchase. The
implication is that Coles can continue to guarantee its clients of
the commitment made towards the provision of services which
are exemplary.

Decision-making processes and innovation
The decisions which are made with regards to the company’s
strategy or its operations require a resolution.
Meetings are convened for resolutions to be communicated to
shareholders.
Coles regards innovation as a tool necessary for its operations to
stay ahead of competitors such as Woolworths. For example, the
company has invested into innovations that would ease checkout
procedures for its clients.
Innovation is used to develop connections between available
infrastructure and available offers.
 In addition, innovation increases the sustainability of the
company’s operations.

Cole’s CRS
The decisions made by Coles facilitate the operation’s
contribution to the well-being of its surrounding community.
For example, most Australian growers are forced to deal
with expenses which increase constantly (Phillipov 2016).
The outcome is that their capacity to make investments
geared towards business development is greatly limited.
Hence, the masses have to contend with an increment of the
prices at which fresh produce is offered.
However, Coles’ decisions are meant to enhance the
competitiveness of the growers involved.

Product and service design
Coles offers products including top quality vegetables, meat,
fresh fruits and seafood.
In addition, items suitable for babies are available, baked and
dairy products, liquor, gift cards as well as deli services.
Coles’ operations are characterized by low morale among its
workers while shelf availability and company promotions
continue to drastically deteriorate (Phillipov 2016).
Moreover, its operations are forced to focus on sustainability
and the acquisition of the required produce locally for the
hurdles noted to be overcome.

An analysis of the research and development
function’s resources
The company is constantly immersed in efforts to
ascertain that the environment is effectively protected.
 Hence, research features partnership with other
organizations for the identification of strategies that can
be utilized to ascertain that impacts on the surroundings
are effectively mitigated.
For example in 2017, $15 million is the amount that
Coles directed towards projects that would promote the
efficient utilization of energy (Wu et al. 2015). The
undertaking culminated in over 1000 installations.

Process Design
The processes that Coles continuously measures are
quite extensive.
Evaluation measures ensure that the objectives set by
Coles are appropriate.
The implication is that necessary modifications can be
made for the achievement of general company targets.
The projects undertaken by the enterprise are analyzed
to determine their profitability and whether the capacity
of the individuals employed is capitalized on effectively
(Grimmer 2018).