Generally, the paper 'Recommended Strategies for Coles" is a good example of a management case study. Implementation of effective strategies is an important undertaking for every company and that significantly affects the successful running of the company and the attainment of set goals and objectives. This paper sets out the necessary strategies that Coles should put in place to ensure that it is able to acquire and maintain success in terms of productivity, profitability and competitive advantage. The paper is addressed to the CEO at Coles to make a plea for him to allow for the implementation of the recommended strategies and to give the reasons for the recommendations made.
Contained within the report is a cover letter to the CEO which gives a summary of the entire report. The paper also contains a SWOT analysis and a Competitive 5-Forces report on the basis of which correct strategies for the company will be developed. Other than developing the strategies this paper further supports the need for these strategies and the benefits they will have for the company. From the report developed, the CEO will be able to acquire all the necessary information regarding the company, identify the company’ s weaknesses, strongholds and gaps and be able to make an excellent decision on the way forward in terms of strategic management. Current Situation at Coles The initial mission for The Coles group was to become the best and greatest retailer in all markets within which it operates and to ensure that they give the best services to its customers a mission statement which they failed to attain and as a result, West farmers took over Coles.
West farmers have however not declared any known mission statement. Research has found the company as being second in terms of market share after Woolworths supermarket. Its 742 stores in different regions serve nearly 2 million customers daily. Its success in the market is best illustrated by the continued increase in revenue. The rate of growth in sales has however reduced over the past few years (Downes, 2008). The continued growth of the company requires the identification of its threats, weaknesses, strengths and opportunities and that through this it is able to make the right strategic choices and gain growth. Effective Strategic Choices As a way of ensuring that their company gains a competitive advantage over their competitors, the top management at Coles need to develop strategic choices through which they will intend to accomplish the set goals and objectives, vision as well as mission pertaining to productivity as well as being above their competitors.
One such strategic choice may entail having an entirely new image and the enhancement of inside growth as well as opening up more stores in different regions.
A new image will be attained by improving their products and service quality within their already existing stores as well as improving corporate -revenues. Opening up new stores will help in increasing their customer base and expanding their markets to different economies. One strategic choice made by the company is to adopt the use of technology(the internet) which helps in increasing productivity and reduction of costs and in turn, increases profits (Thomas and Pederson, 2009). there is however needed for them to adopt other forms of technology useful for increasing profits and minimizing operational costs.
The implementation of a management information system, for example, will be effective in ensuring that decision-making processes will be effective and efficient, databases will be effectively maintained and customer satisfaction will be enhanced and overall, the company’ s level of productivity will increase (Wright et al. 1990).
Downes, S. (2008) Company Information: Coles Supermarkets. Melbourne: Herald sun
Porter, E. (1998) Competitive Strategy: Techniques for Analyzing Industries and Competitors. New York: Prentice Hall.
Porter, M. (1980) “How Competitive Forces Shape Strategy”. The McKinsey Quarterly , 6 (1):34-50.
Wright, P., Kroll, M., Kedia, B. and Pringle, C. (1990) Strategic Profiles, Market Share, and Business Performance. AJB, 3(4): 16-24.
Yuthas, K. (2009). ‘Inputting the Environment: Reconsidering the Environmental Information Matrix’, Journal of Information Systems, 19(2): 105-109