Kogan.com: Strategic Analysis of Operations, Management and Culture

This report provides a detailed analysis of Kogan.com, an Australian-based e-commerce company. It explores Kogan.com's international strategies, primarily focusing on its successful implementation of a multi-domestic strategy in the Australian market, alongside differentiation and joint venture strategies to gain a competitive advantage. The report examines the management functions of planning, organizing, leading, and controlling within Kogan.com, highlighting their impact on decision-making processes and organizational structure, including its functional organizational structure. The analysis also delves into the company's organizational culture, emphasizing its team-oriented approach and core values. Furthermore, the report assesses Kogan.com's human resource management practices, corporate social responsibility initiatives, and ethical considerations. The conclusion summarizes the key factors contributing to Kogan.com's success, including its diverse product offerings, strategic responsiveness, effective organizational structure, and commitment to CSR and ethics.

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Introduction
Kogan.com is a domestic-owned company public company which derives revenues
through sales of good and products. The company operates in New Zealand and Australia
markets with its headquarter based In South Melbourne, Australia. Currently, Kogan.com
employees over 150 people and the company are listed under KGN and ASX security exchange
(Kogan Corporate, 2019 p. 3). Kogan.com Limited sells various products through an online
platform. Some of the products offered by the company include TVs and home theatres,
computers and tablets, phones, cameras and drones, audio devices, appliances, Home products,
Garden products, office supplies, apparel products, video games, health and beauty products as
well as groceries. In 2019, Kogan.com had an estimation of 1.9 million active customers in
Australia and around the world which is marked a growth of 15.9% as compared with 1,388,000
as in 2018 (Kogan Corporate, 2019 p. 10).
International Strategy
Kong.com has been successful in the Australian and New Zealand markets as a result of
effective international strategies which the company has adopted over the past decades.
According to Lo, Mahoney and Tan (2011 p.281), an international strategy is a technique that
focuses on an organization importing resources and goods from other countries or conversely
exporting products and services to foreign markets. Kogan Company has used a combination of
various strategies in diverse countries around the world to gain a competitive advantage as well
as gaining market share. In Australia, Kogan has employed a Multi-domestic strategy which has
enabled the company to meet traditions, cultures, needs and preferences of customers. According
to Tulung (2017 p.160), the multi-domestic strategy is a technique in which an organization
tailors products to each specific markets with a close focus to local characteristics, religion,

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customers preference and other social-cultural factors. The multi-domestic strategy has a low
integration but high responsiveness in the local market. Kogan.com uses a domestic product in
Australia to meet the requirements and needs of local markets through customization of product
and services. For example, the company offers a wide range of products in the market increasing
customer segmentation. According to Kogan Corporation (2019), in 2019, Kogan Company
continued with its strategies of diversifying and expanding the products with the company
launching various new products and services to meet needs of diverse customers within
Australian market such as Kogan Marketplace, Kogan Money Home Loans and Kogan Cars.
Furthermore, with a multi-domestic strategy, Kogan.com has a unique approach to sales and
marketing in the diverse regions in Australia. The company offers different products into
different markets. Exclusive brands, investment in marketing and inventory as well as the
company’s marketplace has also been an instrumental component towards the Kogan Company
success. Besides, the Konga.com also offers differentiation strategy alongside multi-national to
capture the attention of new markets, improve brand awareness and boost its sales. According to
Tripes, Komarkova, Pirozek and Dvorak (2014 p.330), differentiation strategy involves an
organization launching and selling new products that have unique features from competitors.
A joint venture is also an entry mode strategy that Kogan Company uses to break macro-
environment risks that exist in diverse markets within Australia. A joint venture involves two or
more organizations pooling their resources together to increase profitability as well as the
sharing of profits (Ozorhon, Arditi, Dikmen and Birgonul (2011 p.209). Kogan.com has managed
to joint venture with various companies such as mercer and vertical which have also been doing
well in the market (Kogan Corporate, 2019 p. 10).
Management functions of Kogan. Com

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According to Bateman and Snell (2015 p.1), management functions in an organization
includes planning, organizing, leading and controlling organizations. Effective management
functions are one of the key aspects for a Kogan.com to be successful in a competitive Australian
market. In terms of planning, Kogan.com has effective strategic plans which enable the company
to identify new emerging markets across Australia and globally and be able to venture using
appropriate entry modes. Besides, the company also has effective planning of its key core
resources forming a backbone of its success in Australian retail markets. In terms of organizing,
Kogan.com has an effective organization indicating the company has high capabilities of pooling
together human resources, financial and physical resources to come up with productive
relationship for it to achieve its goals and objectives. Through the effective organizing, Kogan
Company has had a capability of identifying activities, classifying roles and responsibly of
employees, assign duties effectively and be able to coordinate authority and responsibility
relationships. In terms of leading, Kogan.com has had a strong leadership which has cultivated a
culture of performance in the past decades. When it comes to control, the company has an
effective set of policies and procedures which internal and external stakeholders of the company
follow.
Decision Making
In an organizational context, decision making is defined as a course of action which is
chosen purposely from alternatives for an organization to achieve its managerial and
organizational goals (Parnell, Driscoll and Henderson 2011 p.1). Kogan.com has strong
leadership and governance which enables the company to make effective decision in relations to
operations and strategies for the present and future sustainability. Whenever the company sees an
investment opportunity for growth in local and international markets, it makes sustainable
decisions in both existing businesses and the portfolio of expansions. For example, in 2019,

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Kogan Company made an effective decision of launching other products such as Kogan Money
credit cards, Kogan Energy as well as Kogan Super after gathering data about Australian market
needs and demands to strengthen its existing business and generate more revenues in the market
(Kogan Corporate, 2019 p. 3). In the context of the internal operations, Kogan.com encourages
collaborative decisions by the retailer emphasizing on transformational leadership as a style of
leading and managing its workforce. Transformational leadership enables the company to
involve employees in the decision making process. The input of employee opinions and
decisions enables the company to implement change effectively and further make decisions
which motivate employees to perform extraordinarily.
Organizational structure
Organization structure is defined by Lunenburg (2012 p.1) as a reporting relationship
which exists in an organization. Kogan Company uses a functional organizational structure to
carry on its operations to direct various activities such as responsibility, roles and rules for the
company to achieve its goals. According to Zaki, Hussien and El-Khoriby (2015 p.403),
functional organizational structure involves grouping of employees on their knowledge and
specific skills. Kogan Company has various departments which are divided into their areas of
specializations. The key functional area of the company includes Human Resource, Finance and
accounting, Information Technology as well as sales and marketing. With the evolvement of
disruptive and sustainable technologies and changing patterns of consumers, Kogan Company
has formed another key functional department known as “Digital marketing and sales”. The
department engages customers through social media platforms such as Facebook, Twitter and
chats hence accelerating sales. Furthermore, Kogan.com has different managers in diverse
departments which ensures that the team members are managed by experienced managers who
can motivate employees to produce high productivity and maximize performances through the

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encouragement of peer coordination. The specialization of the expertise has enabled Kogan
Company to perform their roles and responsibilities in the organization more efficiently hence
increasing profitability.
Organizational culture
Culture in a business context is defined as a set of shared practices, goals and attitudes
which symbolizes an organization (Satterfield, Gregory, Klain, Robertson & Chan, 2013p.103).
A research conducted by Habib, Aslam, Hussain, Yasmeen and Ibrahim (2014 p.215) shows that
companies that have fostered strong cultures which supports collaborations and assures and their
values align with objectives enjoys success in terms of motivation, productivity as well as
retention of skilled and experienced employees. Kogan.com Company incorporates its core
values into the objectives, vision and mission for the company to achieve long-term and short-
term results. The five core values of Kogan.com includes respect, trust, diversity and inclusion,
quality as well as integrity. To reinforce its corporate culture into the operations, Kogan.com
uses stories. The managers and leaders tell their employees the success type of stories which
reinforces values, rules as well as culture. Currently, Kogan.com exercises a team-oriented
culture. According to Habib, Aslam, Hussain, Yasmeen and Ibrahim (2014 p.218), team
orientation culture involves a culture of employees working together as a team to achieve
common goals and objectives of an organization. Through the team orientation culture, the
organizational culture of Kogan.com is flexible providing employees with a conducive
environment in which they can contribute significantly. The employees have a strong
understanding of the organizational culture hence being satisfied with their jobs a move that has
seen Kongan increase its rates of employee retention.

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Human Resource Management
Kogan Company has strong human resource department that deals with administration,
communication, staff motivation, professional development, training as well as hiring. The
human resource competency of the company is one of the greatest competitive advantages than
Kogan.com has in the Australian markets. Kogan.com has a committed employee who is
motivated to bring the business strategy of the company to life. Staff motivation is one of the
strategies that Kogan.com uses to increase the degree of employee engagement as well as
performance. The human resource department of Kogan Company motivates its staff through
various techniques such as acknowledging individual performances, offering an attractive reward
and compensation packages, enhancing positive communication as well as supporting employees
in their career development. According to Herzberg motivations theory, achievements, advanced
career growth, responsibility as well as recognition are the essential elements that lead to job
satisfaction and motivation of employees (Dartey-Baah and Amoako, 2011 p.1). The human
resource department of Kogan.com supports the professional development of the staff by
offering various educational programs and initiatives that will boost the credibility of their
employees. The company also conducts training of employees upon identification of training
needs in order to boost their career development as well as enhancement of productivity.
Corporate social responsibility and Ethics
Kogan Company practices Corporate Social Responsibility as a way of establishing its
brand in the Australian market and also giving back to the community. Rahman (2011 p.166)
defined corporate social responsibility as a management function that involves an organization
integrating environmental and social concerns in their operations with external and internal
stakeholders. Kogan has been involved in various community development programs and
initiatives as a part of Corporate Social Responsibility a move that has seen the company

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improve its awareness and develop loyalty with the surrounding communities. Currently,
Kogan.com Company scores 54% in CSR according to Csrhub (2020 p. 1). The CSR goals of
Kogan Company includes improving living standards of communities by increasing employment
opportunities, enhancing the community’s welfare as well as reduction of environmental
footprint. Furthermore, in terms of supporting employees as a part of Corporate Social
Responsibility, Kogan Company scores 51%, community 51% as well as the environment with
63% (Crshub, 2020 p.1).
In terms of ethics, Kogan Company also considers ethics in its processes which has
enhanced the company to develop a conducive working environment as well as improving its
reputation in the market. Ethics also knew as code of conduct are moral values and guidelines
that guide the way an organization conducts itself (Tsalikis and Fritzsche, 2013 p.337). The ethic
practices of Kogan.com have earned the company a good reputation in the Australian market
hence facilitating to high public confidence.
Conclusion
The ability of Kogan Company to offer a wide range of products in the diverse markets
has been a key reason why the company is very successful in the Australian market. The use of
multi-domestic and standardization international strategies has created high responsiveness of the
Kogan products in both local and international markets. Functional organizational structure has
made it possible for the company to delegate duties and control operations. Team-oriented
culture has led to the collaborative workforce in Kogan.com. Effective core competencies in
human and financial resources have developed a motivated workforce. The corporate social
responsibility as well as ethics adherence has marketed the brand, improved its awareness and
created customer loyalty as well as public confidence.

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