Strategic Management Analysis: Coles' Business Level Strategy Report

This report provides an analysis of the business level strategy of Coles, focusing on its strategic direction and competitive positioning within the grocery industry. The report begins with an introduction to strategic management, emphasizing the importance of core competencies in satisfying customer needs and achieving high returns. It then delves into Coles' key business level strategy, highlighting the company's shift towards digital opportunities and fresh food, including investments in online stores, home delivery, and hybrid store formats. The report references the company's plans to increase capital investment, expand its online presence, and cater to the demand for health and convenience. The analysis includes insights from outgoing managing director John Durkan and the new CEO, as well as the company's response to competition from rivals like Woolworths. The conclusion suggests that Coles is working to catch up with its competitors in the competitive grocery industry. Finally, the report provides a list of references including academic papers and Coles' official website.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Student’s Name
University Name
Author’s Note

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Table of Contents
1. Introduction............................................................................................................................3
2. Key business level strategy of Coles......................................................................................3
3. Conclusion..............................................................................................................................4
Reference List............................................................................................................................5

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1. Introduction
The core competencies of the organisation must be aimed at satisfying the needs or
preferences of the customers for achieving higher than average returns. This is achieved
through business level strategies. Such strategies detail the actions taken for providing values
to the customers and thereby gain competitive advantage by exploitation of the core
competencies in specific, service or individual product market. Business level strategies are
concerned with the position of the firm in the industry, relative to the competitors as well as
the 5 forces of competition.
The customers are the foundation of the business level strategies of the organisation.
The people who will be served, what requirements have to be met and the ways in which
those needs would be satisfied would be determined by the senior management.
2. Key business level strategy of Coles
The Coles Company is all set to embark on one new strategic direction as the
company prepares to spin off from the parent company Wesfarmers to one separate ASX
listed entity which would see it double down on the emerging digital opportunities as well as
fresh food. As opined by the outgoing managing director of Coles, John Durkan, the
company has developed one new and differentiated strategy that will make the life easier for
the customers (Ning, 2015).
Under the new business plan, Coles would double down on the growth of fresh
department as well as invest in driving innovations in the products with private labels.
The new CEO have also confirmed with the forum of shareholders as well as analysts
that supermarkets will spend 20% more in the capital investment next year compared to what
it spent in the last 2 years (Baracskai, 2017).

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With one bulk of that spending slated for the renewals, the CEO opined that the next
evolution for the Coles .company would be looking up at cornering the demand for health as
well as convenience. Coles has also planned in order to invest in an array of various
supermarket formats in the forthcoming years for addressing growth demand for the flexible
grocery shopping. The company is also planning to open online stores for facilitating the
fulfilment along with one raft of hybrid stores that combines one mini-DC in combination to
an existing supermarket would be tolled out also (Coles.com.au, 2018).
Home delivery, service desks, click and collect concierges would round out ominchannel
focus.
The popular “anytime, anywhere shopping” will see Coles increase its available
delivery slots, begin offering one-hour home delivery and increase the food to go fresh offer
in the upcoming 12 months. This comes up as the rival company Woolworths, steps
up their investment in their online offer, having rolled out the in-store pick up to all the stores
already (Adamu & ShaNantu, 2016).
3. Conclusion
The company is working towards catching up their rival who have taken an active
step in the competitive grocery industry of the country which is worth $108 in the latest 18
months. The analysts have expressed with concern that Coles have taken their feet off
accelerator in the recent times in the lead off to its spin-off and they have prioritised their
meeting the profit hurdles over the act of drifting the top line.

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Reference List
Adamu, A. D., & ShaNantu, W. M. (2016). Strategic Maintenance Management of Built
Facilities in an Organisation. World Academy of Science, Engineering and
Technology, International Journal of Social, Behavioral, Educational, Economic,
Business and Industrial Engineering, 10(4), 1104-1107.
Baracskai, Z. (2017). Shouts from the Sidelines: Can Coaching Be Taught?. Transylvanian
Journal of Psychology, (1).
Coles.com.au, (2018). About the Company. Received on 22nd December 2018. Received from
https://www.coles.com.au/
Ning, J. (2015). Research on Public Service Outsourcing Strategy under the Supply Chain
Management. Review of Industrial Economics, 1, 006.