Business Case Report: Business Strategy Of Coles Supermarket

Question

Task: This section describes the assessment tasks. There are two components, a group business case report and a group presentation. To successfully complete these two assessment components, you are required to join a group. As part of a group you will develop a business case document and a presentation. Your group will present your business case using PowerPoint.

Business case report
To successfully complete the business case report, you and your group are required to undertake the following activities:

Activity 1:
In the first few weeks of term, you are required to self-select into and form groups of 3 to 4 students, maximum of 5 students. On-campus students confirm groups with the assigned lecturer. Distance students confirm groups via email with the unit coordinator. This activity is to be completed by week 5. You will have the opportunity to work on the business case with your group in class from week 6.

Activity 2:
To successfully complete the assessment, your group is required to identify a business and the business stakeholder you will be writing the business case for. You might be pitching to an investor or the management of a business. Identify the business and the stakeholder. It can be:

a. A business that one of the group members is or has been employed at and therefore knows well. It is a very good option if other members of the group are familiar with a similar business too. It is important that no confidential business information is included in the business case report.

b. A business that in the public eye, meaning there is a lot of publicly available information about this business.
c. If you suggest an organisation other than the ones above, you will need approval from the assigned lecturer.

On-campus groups confirm the selected business with the assigned lecturer. Distance groups confirm the selected business via email with the unit coordinator. This activity is to be completed by week 7.

Activity 3:
Identify an innovation that your group believes could be reasonably discussed as the subject of the business case. The innovation you choose should have the potential to be developed sustainably over a commercially viable period of time. The suggested innovation must not be implemented by the firm yet. It can be an innovation your team come up with yourselves or something you learned about through any media.

Activity 4:
Consider and evaluate the possible business models that could be used to realise the opportunities inherent in the innovation.

Activity 5:
Develop the business case report with appropriate sections. Your report must include:
• Logical and persuasive articulation of: the problem to be solved; problem insight; portfolio of generated solution ideas; solution selection analysis; targeted customers; value proposition benefits; business model description; value proposition development and delivery; financial value capture and strategic fit.
• Logical and persuasive argumentation in regards to how uncertainty related to customer desirability; technical feasibility; and financial viability is addressed.
• A convincing executive summary; clear and succinct purpose described in the introduction; and a clear and succinct conclusion. Each group is required to demonstrate both scholarly independence and academic integrity in undertaking all steps of the business case development process. Students are required to base their analyses on data that is reasonably and ethically sourced, and to use assumptions that can be justified in a commercial setting.

Responsibility for structuring, coordinating, and managing processes to finalise the business case lies with each group. Groups are encouraged to work with content beyond Tidd & Bessant (2018) and Osterwalder & Pigneur (2013). Groups must take charge and deliver a business case capable of convincing key or principal stakeholders that a return is assured. As part of your group work, you are required to provide evidence of your team formation and ongoing team work with your business case. The team working evidence should be provided in the appendix, by including team charter and meeting agendas and minutes.

Answer

Executive summary
Innovation can be defined as creative ideas or fresh thoughts that give a new dimension of objects and the services thereby enhancing the quality of the products and services offered to the customers. It has been observed that innovation serves to be very fruitful for the organisations as it aids to meet the requirements and needs of the customers thereby aiding the organisations to have more sales thus increasing its profitability. It is necessary that every organisation in every industry to focus on innovation such that it attract the attention of the customers and make more profit.

In this coles business strategy report, the organisation Cole’s supermarket has been considered and the innovation strategy it must adopt in order to improve its position in the Australian retail industry has been discussed. The topic of innovation has been discussed in this report with respect to Cole’s supermarket along with the insight of the issue of innovation, the solutions that can aid the organisation to innovate and benefits of value proposition. A business model has been described in the report with respect to the innovation issue of Cole’s super market and a strategic fit has been described in the report with respect to the innovation.

1. Part 1 Problem
Innovation is of prime importance for an organization to achieve its goals and objectives related to its sales and profitability (Evanschitzky et al., 2015). It is necessary that the supermarkets or the organizations in the retail industry focus on innovation such that they can offer new variety of products and services to the customers. Innovation is necessary as it aids to offer something new to the customers thus increasing its sales and profitability. It has been observed that the retail industry in Australia is facing slow growth as the industry is struggling in the country.

1.1 Background
It has been observed by this coles business strategy assignment that in Canberra people are looking for unique and innovative products at affordable price (Abc.net.au, 2019). It is of utmost importance for Australian market to grow and develop, as its growth has been stagnant in the country. The people in Canberra are even ready to pay extra for goods that are beneficial for them as well as the environment. Therefore, it is of utmost importance that the organization Cole’s supermarket emphasizes on innovation and creativity such that it can capture the attention of the people of Australia.

1.2 Definition of the problem
It has been observed in this business strategy of coles supermarket that the condition of the retail industry in Australia is not good therefore it is of utmost importance that Cole’s Supermarket adopt new procedure along with new innovative strategies or products such that it can make its position strong in the market. This will aid the organization to make profit by increasing its sales. It is of utmost importance that Cole’s Supermarket devises new strategies of innovation in order to gain competitive advantage over other organizations in the market.

1.3 Evidence of the problem
It can be stated that in case the organizations in the retail industry of Australia need to innovate the products they offer such that they can capture the attention of the customers. If the organizations in the retail industry of Australia do not take apt steps then the state of the industry in the Australian market will become worse. As per reports, the revenue generated by the retail industry in the period 2012 to 2017 was 1.1% of the total GDP of the country while in the period of 2017 to 2022 the revenue is 1.4% of the total GDP of Australia (Ibisworld.com.au, 2019).

1.4 Timing considerations
It has been observed in this business strategy of coles supermarket that the condition of the retail industry in Australia is not good as the retail industry has failed to meet specific government commitments or legislative requirements with respect to sales. In case the matter is delayed then the performance of retail industry will drop further.

1.5 Consideration of the broader context
It is required that every organisation in the retail industry of Australia works together in order to improve the state of retail market in the country such that it can generate more revenue and create more opportunities of employment.

2. Part 2 Benefits
It is necessary that Cole’s Supermarket invest on thorough market research such that the needs and requirements of the customers in terms of the commodities and services they desire. This will enable the organization to meet the demands and needs of the consumers effectively.

2.1 Benefits to be delivered
It is required that Cole’s Supermarket adopts the latest developments in technology in order to enhance the satisfaction derived by its customers and increase its sales as well as profitability. It is required that every organisation in the retail industry of Australia works together in order to improve the state of retail market in the country such that it can generate more revenue and create more opportunities of employment. It is necessary that Cole’s supermarket emphasizes on organic products that are eco-friendly and does not harm the environment. The concern of people is growing with respect to environmental degradation thus, it is necessary that the organization Cole’s Supermarket offer environment friendly products and services to its customers.

2.2 Importance of the benefits to Government
Value proposition can be defined as the vow that an organization makes with respect to the value and quality of products and services that it offers to the customers. Value proposition can also be termed as belief from the side of the customers regarding the ways of delivery of value, experienced as well as acquired. It is applicable for an organization as a whole or its parts or accounts of customers or goods and services. In case of the organization Cole’s Supermarket value proposition can be applied that will stimulate the organization to provide quality and valuable products and services to its customers. Innovation will aid the organization to apply value proposition, as it will aid Cole’s Supermarket to improve customer engagement as well as understanding (Get2growth.com, 2019). It will aid the organization to focus and get a proper direction such that it can satisfy the demands of the customers. It also aids to enhance the marketing strategies thus increasing its confidence. It will aid the government of Australia to earn revenue by means of taxes that it charges from the retail organizations moreover the GDP of the organization will improve, more employment opportunities will be created and the country will develop economically.

2.3 Evidence of benefit delivery
In order to create value it is recommended in this business strategy of coles supermarket that necessary that the organization Cole’s Supermarket makes sure that it adopts a particular strategy such that it can offer valuable products and services to its customers. In order to develop as well as deliver value proposition it is necessary that Cole’s Supermarket adopt the following procedures:

• Involving the main stakeholders of the organization in order to develop and implement the innovations. Take feedbacks from the customers regarding the satisfaction they derive from the products and services.

• The activities that are required to develop value proposition must be made a part of the process of planning (Cmo.com, 2019). Monitor the revenue that the organization generates after the implementation of innovative strategies (KPI).

Benefits Management Map

2.4 Interdependencies
In case of the organization, Cole’s Supermarket it is necessary that it has apt financial resources, contacts or networks, technology, culture as well as apt human resources such that it emerges successful in implementing the innovative strategies one by one. Only if the organization Cole’s Supermarket is successful in arranging adequate resources in order to support its innovative strategies only then it will emerge successful in order to achieve its goals and objectives.

3. Part 3 Strategic response
The actions that are performed by an organisation in order to line up itself with the environment are termed as strategic responses.

3.1 Method and criteria
The method of strategic response involves the improvement of the process of decision-making. It involves planning along with making estimates annually such that changes in external environment of Cole’s Supermarket can be addressed.

3.2 Strategic options analysis
This process discussed in this business strategy of coles supermarket will aid Cole’s Supermarket to realise r explore the worth of the organisation such that it can increase its margin of profit by devising apt strategies for meeting the demands of the customers by introducing new services and commodities.

3.2.1 Strategic interventions
Strategic Interventions

3.2.2 Strategic options

3.2.3 Ranking of strategic options

3.3 Recommended strategic option
Porter’s five Generic strategies will be the best option for Cole’s supermarket as it will aid it to devise apt strategies in order to implement the innovations in the Australian market.

4. Part 4 Project options analysis
It aids to identify each option of project and find its pros and cons.
4.1 Project options considered
In case of short-term plans and analysis it is suggested that Cole’s Supermarket adopts to choose organic products first such that it can get a hold of the Australian retail market initially, once it emerges successful in holding the market then it must implement the next solution. The next solution of generating zero waste will aid the organization to win the trust of its customers and increase the satisfaction they derive. The implementation of first two solutions will be feasible for the organization in terms of finances and the desires of the customers. Once the above mentioned emerges successful and the organization Cole’s Supermarket is able to hold the market then it must move ahead with the solution of digitization related to the location of the products through mobile applications. The implementation of this solution will be expensive yet it will aid the organization to enhance the satisfaction derived by the customers and increase its profitability, as the solution is innovative.

4.2 Stakeholder identification and consultation
Board of Directors: The organisation will earn profit thus, they can focus on other areas or issues.
Employees: The employees will earn more salary.
Customers: Customers will be satisfied.
Government: More employment opportunities will be generated and GDP will increase.

4.3 Social impacts
Digitisation: Customer experience will be improved.
Organic products: Customer needs will be satisfied.
Waste generation: Customer needs will be satisfied as environmental degradation will be mitigated.

4.4 Environmental impacts
Digitisation: Customer experience will be improved.
Organic products: Environmental degradation will be mitigated.
Waste generation: Less waste will be generated thus environmental degradation will be mitigated.

4.5 Economic impacts
It will aid the government of Australia to earn revenue by means of taxes that it charges from the retail organizations moreover the GDP of the organization will improve, more employment opportunities will be created and the country will develop economically.

4.6 Overall evaluation of socio-economic and environmental impacts
Customer experience will be improved and Customer needs will be satisfied. Less waste will be generated thus environmental degradation will be mitigated.

4.6.1 Cost benefit analysis (economic evaluation)
Cole’s Supermarket can focus on making most value of it financially or earning profit. Cole’s Supermarket will directly interact with the customers thereby aiding the organisation to promote the innovation that it has adopted and changing the perception of the customers. This will aid the organisation Cole’s Supermarket market the innovative products and services that it is offering thereby catching the attention of the customers.

4.7 Financial analysis
Organic products: Investment will be least.
Waste generation: Investment will be less.
Digitisation: investment will be the most.

4.8 Risk comparisonM
• The field of technology is continuously evolving thus in case further development in technology takes place then the innovative strategy of digitisation will be affected as its competitiveness will decrease.
• In case better quality of organic products is manufactured then the products offered by Cole’s Supermarket will decrease.

4.9 Integrated analysis and options ranking
In order to enhance the performance of the organization Cole’s Supermarket it is recommended in this business strategy of coles supermarket it is necessary that it make apt plans with respect to the solutions that it must implement at priority (Pantano et al., 2017). It is necessary that the organization analyses the options and executes it based on the reports of its analysis.

1. In case of short-term plans and analysis it is suggested that Cole’s Supermarket adopts to choose organic products first such that it can get a hold of the Australian retail market initially, once it emerges successful in holding the market then it must implement the next solution.

2. The next solution of generating zero waste will aid the organization to win the trust of its customers and increase the satisfaction they derive. The implementation of first two solutions will be feasible for the organization in terms of finances and the desires of the customers.

3. Once the above mentioned emerges successful and the organization Cole’s Supermarket is able to hold the market then it must move ahead with the solution of digitization related to the location of the products through mobile applications. The implementation of this solution will be expensive yet it will aid the organization to enhance the satisfaction derived by the customers and increase its profitability, as the solution is innovative.

4.9.1 Testing the robustness of the options analysis
• Technology: The field of technology is continuously evolving thus in case further development in technology takes place then the innovative strategy of digitisation will be affected as its competitiveness will decrease. This will affect the profitability of the organisation.
• Organic products and waste generation: In case better quality of organic products is manufactured then the products offered by Cole’s Supermarket will decrease. This will affect the profit margin of the organisation.

5. Part 5: Deliverability of recommended solution
It is necessary to discuss deliverability of recommended solutions such that each solution suggested can be evaluated.

5.1 Details of recommended solution
It is necessary that Cole’s supermarket emphasizes on organic products that are eco-friendly and does not harm the environment. The concern of people is growing with respect to environmental degradation thus, it is necessary that the organization Cole’s Supermarket offer environment friendly products and services to its customers. Digitization is taking over the market that in turn has aided the customers to locate the products of their choice and checks its availability thorough mobile applications thus in case the organization Cole’s Supermarket adopt this development in technology then the organization can enhance the quality of services offered to the customers (Foodnavigator.com, 2018). The other option that the organization Cole’s Supermarket can adopt is related to the generation of waste. It has been observed that the supermarkets generate huge amounts or volumes of waste that has to be controlled effectively (Causeartist.com, 2016). It is necessary that the organization Cole’s Supermarket adopt innovative strategies in order to reduce the generation of waste. This will also aid the organization to reduce the usage of plastic. This innovative technique has been used by a retail organization in Germany where the customers can take the amount of food products they want from the dispensers.

5.2 Commercial and financial
5.2.1 Procurement
1. In case of short-term plans and analysis it is suggested that Cole’s Supermarket adopts to choose organic products first such that it can get a hold of the Australian retail market initially, once it emerges successful in holding the market then it must implement the next solution.
2. The next solution of generating zero waste will aid the organization to win the trust of its customers and increase the satisfaction they derive. The implementation of first two solutions will be feasible for the organization in terms of finances and the desires of the customers.
3. Once the above mentioned emerges successful and the organization Cole’s Supermarket is able to hold the market then it must move ahead with the solution of digitization related to the location of the products through mobile applications. The implementation of this solution will be expensive yet it will aid the organization to enhance the satisfaction derived by the customers and increase its profitability, as the solution is innovative.

5.2.2 Risk assessment and management

Table 1: Headline project cost element summary

Table 2: Base cost estimate

Table 3: Project risks

5.2.4 Funding sources
• Loans
• Sales of assets
• Profit earned

5.3 Management
5.3.1 Governance
• Involving the main stakeholders of the organization in order to develop and implement the innovations.
• It is required that priorities are set in order to gain competitive advantage over the competitors.
• Every functional area of the organization must be detailed regarding the activities that have to be delivered so that constant delivery can be guaranteed.
• It is very important that the progress that is made be monitored by creating milestones and comparing against it.
• It is necessary that meetings be scheduled at regular intervals of time such that the progress that is made can be discussed.

5.3.2 Stakeholder engagement and communications plan
• Employees: E-mails, memos
• Board of Directors: E-mails, memos
• Customers: Media, website, social media platforms, pamphlets, hoardings

5.3.3 Project management strategy
• Clearly define the goals and objectives of the projects
• Use proper means of communication
• Build a strong team
• Monitor the progress that is made
• Have flexibility with respect to the methods adopted
• Celebrate the achievements

5.4 Delivery
5.4.1 Change management
• Make new networks
• Train the employees
• Hire new employees
• Adopt the technologies that are required for its implementation

5.4.2 Performance measures

5.4.3 Readiness and next steps
It is necessary to take the following steps:
• The number of staffs to be hired
• Get approval from top levels of management
• Decide the kind of training sessions that will be organised

5.4.4 Signoff
Innovation is of prime importance for an organization to achieve its goals and objectives related to its sales and profitability. It is necessary that the supermarkets or the organizations in the retail industry focus on innovation such that they can offer new variety of products and services to the customers. It can be stated that in case the organizations in the retail industry of Australia need to innovate the products they offer such that they can capture the attention of the customers. If the organizations in the retail industry of Australia do not take apt steps then the state of the industry in the Australian market will become worse.

5.4.5 Exit strategy
• Merging or acquiring other organisations.
• Sell the products to other organisation of the same industry
• Liquidate the project

Appendix A: Benefit Management Plan
[‘Paste Special’ as an ‘Enhanced Metafile’ for optimum picture quality.]
Include a benefit management or evaluation plan if available or complete the following table for each KPI. ]

Appendix B: Financial data presentation
The following tables discussed in this business strategy of coles supermarket are intended as a guide to data inclusion and should be used or supplemented as appropriate. Operating costs should be addressed over a reasonable period to allow a whole of life perspective – in an appropriate table. Modify tables as required, for example by adjusting period to capture output costs from commencement of the operation of new facility.

B.1 Funding history
In the table below provide in this business strategy of coles supermarket provide details of the funding history for this or similar/related initiatives. This table should include funding for an earlier stage in a multi-stage project, funding for business case development or scoping study, funding for a lapsing program, or funding for a related program that has broadly the same policy objective as this initiative.

B.2 Existing funding base
In the table below provide details of the existing funding base that has been provided for this or similar/related programs. This should include funding that is in the department’s base as well as funding for any related lapsing programs.

B.4 Revenue
Revenue increase/decrease

Appendix C: Sign-off checklist

This model checklist is designed for the project proponent’s endorsement.

Prepared by: ……………………………………………..…… Date: …………………
Approved by: ……………………………………………..…… Date: …………………
……………………………………………... …………………………………………………….
(name of approving officer or delegate) (title)
Secretary: ……………………………………………..…… Date: …………………

Appendix D: Business Model Canvas

Appendix E: Value Proposition Canvas

6. References
Pantano, E., Priporas, C. V., Sorace, S., & Iazzolino, G. (2017). Does innovation-orientation lead to retail industry growth Empirical evidence from patent analysis. Journal of Retailing and Consumer Services, 34, 88-94.
Evanschitzky, H., Iyer, G. R., Pillai, K. G., Kenning, P., & Schütte, R. (2015). Consumer trial, continuous use, and economic benefits of a retail service innovation: The case of the personal shopping assistant. Journal of Product Innovation Management, 32(3), 459-475.
Strategy-business.com (2001). The Three Phases of Value Capture: Finding Competitive Advantage in the Information Age. strategy+business. Retrieved 29 May 2019, from https://www.strategy-business.com/article/10884gko=917ca
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics, 171, 241-249.
Tamayo-Torres, I., Gutiérrez-Gutiérrez, L. J., Llorens-Montes, F. J., & Martínez-López, F. J. (2016). Organizational learning and innovation as sources of strategic fit. Industrial Management & Data Systems, 116(8), 1445-1467.
Foodnavigator.com (2018). foodnavigator.com. Retrieved 28 May 2019, from https://www.foodnavigator.com/Article/2018/12/21/2019-and-beyond-Six-trends-shaping-the-supermarket-of-the-future
Abc.net.au (2019). ABC News. Retrieved 28 May 2019, from https://www.abc.net.au/news/2019-01-30/retail-market-strong-in-canberra-while-in-trouble-elsewhere/10758742

Ibisworld.com.au (2019). Ibisworld.com.au. Retrieved 28 May 2019, from https://www.ibisworld.com.au/industry-trends/market-research-reports/retail-trade
Causeartist.com (2016). Causeartist. Retrieved 28 May 2019, from
https://www.causeartist.com/5-revolutionary-supermarkets-changing-shopping-experience/ Cmo.com. (2019). Cmo.com. Retrieved 29 May 2019, from https://www.cmo.com/opinion/articles/2015/1/23/how_to_deliver_the_v.html#gs.ffavb7
Fourweekmba.com (2018). FourWeekMBA. Retrieved 29 May 2019, from https://fourweekmba.com/what-is-a-business-model/#Direct-to-consumers_business_model
Get2growth.com. (2019). Get2Growth. Retrieved 29 May 2019, from https://get2growth.com/value_proposition_benefits/