COMM1180 Assessment 2 Z5477234

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University of New South Wales *

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1180

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Communications

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Apr 29, 2024

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docx

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COMM1180 Assessment 2 Company: Coles Group LTD [Coles LTD Value Creation] Description and Personal Appeal  The Coles Group LTD is an Australian own public company that operates as one of the market leaders in Australia’s supermarket and retail industry (Coles, 2023.). The business functions in several sectors including the Coles supermarket, Coles online, Coles liquors, Coles financial reviews and Flybuys (Coles, 2023.) that aims at creating different values for different targeted market stakeholders. The significance of Coles lies in its relevance amongst the Australian’s life which includes mine. Its product and services are influencing almost all Australian Households, contributing to the values that Coles as a company provides to consumers and all its other stakeholders. Such phenomena aroused my interest in understanding its value creation process and more specifically delineate how Coles initiated and sustained this high level of creation and its market power through the processes. Mission Statement and Business Purpose As stated on Coles official website, as a company, their purpose is “Helping Australians eat and live better every day”, which is elaborated further as providing “food, drink and home solutions that are delicious, sustainable and healthy” and “consistent experience for customers every day, both in-store and online” (Coles, 2023.). Undoubtedly the mission statement has outstandingly outlined Coles core business operation as a supermarket retailer - reflecting the main value that it aims to create. However, it is also notable that this can be applied for any other Australian supermarket such as Woolworths hence it as a less targeted statement specific to Coles. That being said, despite other companies being able to use this same language, Coles has played actions into making its worded purpose a reality. As of 2022, Coles has accumulated an extensive range of products which includes fresh food, groceries and general merchandise retailing (Coles, 2023.) to help satisfy
the distinct needs of its large customers base, involving different lifestyles. Moreover, Coles has also focused on ensuring a high level of accessibility for its customers for both in-store and online. These include having Quiet Hour, Click&Collect, Carry to car service, supported browsers and screen reader compatibility and other digital functions (Coles, 2023.). This allows Coles to provide ease in delivering the products and services that improve a wide range of Australians’ daily life including those who are in need and face accessibility issues in their daily living.  In general, Coles expressed a strong dedication in achieving its mission statements with the authenticity of its actions toward its value creation being reflected in a survey that recognised the thousands of positive reviews made by Australian households. More significantly, Coles was awarded a five-star rating across five categories in the most recent Canstar Most Satisfied Customer Awards (Retail World, 2022.) Key stakeholders and trade-offs  Despite having various key stakeholders which Coles stated within its annual reports such as its shareholders, employees and suppliers, its mission statement has a core focus on its customers which are the Australian Households who seek affordable daily living supplies ( StudyCorgi . 2022. ). This can be noted with use of ‘everyday’ and ‘lives’ reflecting a target towards household living. As Coles core stakeholder, the relationship between the company and Australian Household has experienced some changes over the years with both ups and downs. For instance, as the Coles observe the lack of customers shopping delis at evening time, reflecting it as a low profitability action that may impact the benefits the shareholders, Coles has decided to reduce its delis counter’s trading hours to now close at 8pm ( Theocharous, M, 2023). This has caused inconvenience for a part of its consumers who do actually use the later hours (Sinclair, A, 2023.). Hence, it may have shifted some consumers' choice of supermarkets from Coles to its competitors. Primarily, while putting full course meals onto all Australian household’s tables is still considered as key value creation, Coles has began to be more aware of the external environment of its business and is therefore building up focus on the significance of its other stakeholders rather than just having a blunt concentration on the traditional
customer-retailers relationship. While values of consumers may be impacted in various ways, it does enable Coles to establish greater variation in the values it creates for different stakeholders on the whole.  For instance, continuing from the delis counter decision, while households who shops late are impacted, shareholders are benefits from having a less profitable decision while they can focus their money on other projects that could bring them more benefits. As for stakeholders like the front house employees of the delis counter, though closing early may mean less pay with less available working hours, it perhaps could also mean lower chances of working long hours, overtime or night shifts. Therefore improve their work-life balance, bringing higher quality to their daily living.  Analysis of corporate action  As a supermarket, whose impact spreads nationally, Coles' focus on helping Australians to ‘live better everyday’ occurs in more than just their core operations of selling goods. A major action that Coles has contributed in improving daily lives is its effort in achieving sustainability. Recently, Coles collaborated with Origin to co-invest in installing solar panels for more than 100 Coles on-sites stores in Australia ( Origin Energy, 2023. ). The aim of the project is to reduce the electricity usage by roughly 20% for each store and thus contribute to Coles long term commitment of net zero emission target by 2050 ( Origin Energy, 2023. ).  Such alliances under the 6 Corporate Social Responsibility (CSR) and Grow The Pie (GTP) framework are being supported. From CSR perspective, the action is genuine, observing from the massive progress already occurring with 87 stores already having solar panels installed as of August 3rd, 2023 ( Origin Energy, 2023. ). It is also an intrinsic, not related to business, and proactive project with the main goal focused on Coles long term emission target, hence sustainability in future, a sector that on the surface level is unrelated to supermarkets. Most significantly, despite being a top- down decision as evidenced with it being a collaboration with another company, the project is creating additional values to benefit various stakeholders including consumers and shareholders. This is because, while a high initial cost is carried, the use of renewable energy can bring down operational cost in the long term ( Origin
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