Strategic Management Practical Strategy Development

Question: Describe about the Practical strategy development for Strategic Management. Answer: Introduction Topic and Company background Formerly known as Coles Myer Limited, it witnessed its establishment almost a century ago Coles Supermarket Australia Pty Ltd is one of the leading and most consistent retail industries in Australia. The founding father of the Coles chain of supermarkets was George Coles and is considered to be among chief figures in the growth and development of Australian retail industries. Retailing being the family business of Georges and George decided to visit the United States in the 20th century to observe the retail practices of the retail industries based in the United States. Subsequent to the return from the United States, George started its very own retail store in Collingwood on Smith Street at Melbourne (Alexander, 2008). In the year 1985 Coles supermarkets and Myers Emporium merged together and came to be Coles Myer Limited. The Coles Myer Limited was bought out by Wesfarmers in the year 2007 after Myers emerged itself two years prior. At present the company is operating its tradition al business of retailing food products all over the Australian continent. The retail company is the second largest retailing company in Australia after Woolworths Limited. The company makes use of a self-service approach in its retail centres and further caters office and home delivery services. The company operates at 738 retail stores across Australia and grosses over eleven million transactions every week. Coles Australia Supermarkets Pty Ltd has a workforce of 113000 employees who operate at over 2200 retail outlets strewn across Australia (Allio, 2006). Company Mission and vision statement For over a century the company has continued its operation as one of the leading retail brands with its outstanding services to the customer, excellent product quality and promoting high work values among its employees. The company envisages George Coles vision and the efforts he had invested in the development of Australian retail industry, and focuses on taking its operations towards a sustainable future. The prime mission of the company is to: Support the Australian farmers by all means as they are the chief source from whom the company obtains the majority of its products. Form lasting relationships with its clients and business associates, which would result in the overall growth and development of the business (Dholakia, 2015). To bring to its valued customers its best products and services. The vision of the company is to develop their business into a premier retail brand. The company wants to achieve this without affecting its customer goodwill. They are focused on bringing quality products to their customers at affordable prices as they are doing at present. In addition, they are keen on developing the business in a manner so that they are able to support their employees, clients, associates, and other business interests. The company is conscious in regards to the conservationism and focuses sustainable development. Their vision is to create a sense of commitment among their employees and associates which would result in operation that supports sustainability of resources in each and every aspect of their business (Gondra, 2016). Organizational Strategic objectives The organizational objectives set by the company are as under: The company strives to establish itself as the only one of its kind retail brands bringing quality products to its customers at affordable prices. The company focuses on improving their customer responsiveness i.e. the way the customer feels about their products and services. The company wants to establish an efficient communication system across all of its stores and outlets. The company focuses on serving their valued clients with the best services and products. The company is focused on reinstating their customer support services to reach out to the customers in regards to their troubles (Grubb, Lippoldt and Tergeist, 2001). To manage the waste disposal system more efficiently and make its contribution towards preserving the environment. The company focuses on promoting business operations which are eco-friendly and will lead to the transformation of the company into a sustainable retail chain. External Analysis: Consumer and Markets Considerable changes have taken place in regards to the legal and political atmosphere in the last decade, which has taken its toll on the company. The Australian federal government has instated an Australian Competition and Consumer Commission, which has been responsible for the introduction of number changes in the competition policies of the industries. Among these there were legislative changes in regards to tax, production and distribution that have affected the retail industry in considering and formulating its business strategies. Demographic factors At the end of 2012 the population survey analysis in the country marked a 1.8% increase in its urban population. A vast majority of the population is concentrated in the countrys urban centres comprising both the indigenous people and Australian white peoples communities. The analysis further denoted that the majority of the Australian population consisted of youth (Hiriyappa, 2009). This means that the company has to focus on opening up retail centres at these urban centres for the distribution of their products. Furthermore, they should also focus on developing and promoting products that would attract people between the age group of 15-67 years. This is as bulk amount of the population consisting of people between this age group. Technological environment The last decade was a witness to the rapid spur in the technological advancement. More and more people are now relying on technology for their day to day needs. The company should focus on developing their technologies in a manner that their customers are able to reach out to them by means of employing modern technologies like mobile application systems and ecommerce. In addition, the company should also focus, providing support system for their customers and clients, where they would be able to remotely assist the customers and clients remotely and at a short notice regarding their products or delivery services (Jackson, 2006). Socio-cultural factors One of the leading trends in the current socio-cultural environment is that the consumers are more aware of the products they are consuming. Moreover, with the global trend regarding organic food products which are free of preservatives and other chemicals, people have become more and more conscious in regards to the food that are being sold to them. Therefore, in order to meet with the current socio-cultural demands of the people the company has to cater to them food products which are organic and free of preservatives (Richter, 2002). Apart from this, people have become more time conscious and give priority to those services which are able to cater to their needs within the shortest period of time. As the company has home and office delivery facility for its customers they should focus on analysing the demands of their customers and provide them accordingly. Global environment Globalization has bought great strides in the development of businesses. This revolution has not only assisted the businesses in promoting their products and services in the international markets but also has given businesses the opportunity to establish business centres in international markets as well. This means that the company can invest in an international market. For instance, Malaysian market is well reputed for the import and business for Australian fresh and preserved fruits (Sitkin, Cardinal and Bijlsma-Frankema, 2010). Therefore, the company after performing a thorough analysis on the said market may consider promoting their business. PESTEL analysis Political: Till now the business policies of Coles has not met any sort political boundaries, apart from the logistical limitations imposed by the regulations set by the concerned governing body of the particular sector. Economic: Coles has encountered economic obtrusion as a result of the consecutive droughts and the climatic change it brought. Consumers change of preference has also been a factor in this regard. Social: Coles has been responsible for educating their consumers in regards to sustainable sea-food alternatives, and has also been a partner in the 2011 WWF Australias establishment of a sustainable sea-food chain in the country (Ward and Peppard, 2002). Technological: Incorporating self service and self checkouts in their retail outlets has increased customer satisfaction and sped up the shopping process. The four Ps of the company: Product: packaged food and fresh food. Price: affordable prices. Promotions: television and radio short and long term advertisement campaigns along with multimedia promotional activities through social networking sites (Valukonis, 2014). Place: the products are supplied from the major growing regions of the country. The company 24 centres throughout the country for the distribution of fresh and chilled foods. The company further deals out its fresh food products through more 700 supermarkets across the nation. Environmental: With the rapid increase of pressure over the companies in regards to environmental issues and adopting new ways of detailed operations that can benefit the society, Coles is quite dedicated towards reducing its carbon footprint. Coles supermarket has also taken initiative to minimize the waste produced in the stores. Legal: Laws and ethics are also to be maintained by this specific section of work field. How the employee of the organization behave with the customers, if the organization is providing wrong product to the people, or the organization is putting the proper amount of tax to the table of government or anything which violates rules and regulations of the government are maintained by this wing of field. The five Cs of the company: Company: employing over 113000 employees and carrying out operations at over 2200 retail outlets. Customers: common people. Climate: doing well in regards to customer retention, and satisfaction; innovation in regards to marketing and, product strategies, financial capability and ethical work culture. Collaborators: local farmers, shepherds, ranchers, fisheries and bakers are its major collaborators focused on sustainable development. Competitors: Aldi, Woolworths, IGA and several other small and medium retailers. Conclusion The above analysis obviously clarifies the manner on how an organization like Coles supermarkets Australia will be able to maintain their business and also their aim towards developing a sustainable business culture. How the objectives, visions will put an impact on the people of the society, what should be the quality of relation among the management, authority, customers and the employees. Lastly, the strategic plans should be for an organization like Coles supermarkets Australia for their rival organizations, and how the objectives can be fulfilled by them, everything has been classified. References Alexander, C. (2008).Market risk analysis. Chichester, England: Wiley. Allio, M. (2006). Practical strategy development: a wise investment for middle market businesses.Journal of Business Strategy, 27(2), pp.31-42. Dholakia, N. (2015). Marketing as mystification.Marketing Theory. Gondra, A. (2016). Head external analysis, head raising analysis or matching analysis? Let's ask experimental syntax.Lingua. Grubb, D., Lippoldt, D. and Tergeist, P. (2001).Innovations in labour market policies. Paris: Organisation for Economic Co-operation and Development. Hiriyappa, B. (2009).Organizational behavior. New Delhi: New Age International. Jackson, S. (2006). Coping with the PESTEL Factors in Safety and Security.INSIGHT, 8(3), pp.29-31. Jackson, S. (2007). 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