Strategic, Operational, and Tactical Planning - Case Study Example

Contemporary Management Name: Number: Course: Tutor: Date: Introduction This report seeks to establish a wide understanding of the concepts of management covered in a case study of Coles Retailers. This was achieved by a thorough reading of the case study and comparing the contemporary management concepts discussed in the piece of writing with those covered during the first and teaching modules. Having already established what concepts the piece of writing did cover, the report then analyzes the concepts not covered. I went on to provide a preview of what I found out as additional study. The report finally concludes on shading some light on the vitality of adequate understanding of organizations management. Concepts covered Management functions The case study is very conceptual in nature, and it ensures to make the charts of the progress that the company has made so far since the time that Wesfarmers took over, and the installation of Ian McLeod as Managing Director. The whole report will cover up some of the key aspects that distinctively relate to the contemporary workplace. It is clear from the case study that Coles does maintain a high priority on strategic human resource management and motivation, and that the key resource is known to be people[Mik07]. One of the main key tasks of Ian McLeod appointment was to be able to change the structure of the organization all the way from its toxic state to the one of engagement, loyalty knowledge and consistency. Planning tools, techniques and processes are also evident as Coles seems to give a clear picture with an intention of comparing to the Open Systems theory practice in relation to the impact of the energy systems and the negative impact. Benchmarking techniques are mentioned in Cole case study with an intention of highlighting that the wastage and markdown are presently meeting the industry averages. Strategic Management The conflict between Coles and Woolworths is highlighted in this case Cole counterparts his competitors per square meter sales returns before 2015. For a significant growth on home brand sales a forecasting attention is critical for the auxiliary product force[Gar08]. On the other hand the report also makes reference to the bargaining influence between the customers and the suppliers with optimizing the chances of the customers and suppliers engaging themselves in consistent debates. It also deliberates the Coles practices for creating supplier demands. Information Systems are of central concern especially in the business revitalization, with adoption of a new automated ordering system minimizing both levels of inventory and items that are out of stock. Organizational ethos person centered in this case study Coles has engaged measures that make sure that its employees enjoy the job security confidence by preserving casual employees so that they are greatly reduced. By so doing, it will guarantee that hiring permanent employees within the stores will reduce the degree of consistency during their tasks, there will be a extensive Knowledge base, there will be more employee confidence and lastly the breach generated between the employer and employees will be abridged. Almost more than half of the working crew in the organization has been made permanent and there is now guarantee that casual labors will be having to the least twenty four hours working in a month. With this execution, the degree of absenteeism has significantly abridged instigating a downfall in the degree of employee revenue. Coles has adopted steps regarding how the employees can be made to focus their interest on the clients they attend to. This has been active over the staff growth where there is staff training twice every year. This has earned welfares since the sales have risen over the years. To make sure that there is inspiration; Coles devised a scorecard that assesses the participation and engagement within their staff. Who are graded and this increases their working morale as long as it is constrained within the ethnic objectives. Open system theory Within the open system, the staffs are being encouraged to freely interrelate with the customers. By so doing, clients and customers can reveal to them the flavor, inclination and any other recommendation that may advance on the services provided. Coles came up with this initiative to make sure that improved yet quality products were provided and this would enhance better customer proficiencies[Dia07]. This was boosted by bettering the systems that were applied to attend to the customers. Via Contemporary Management the adoption of computerized systems made sure that time consumed in purchasing reduced thus many customers in the sales points. The participation of suppliers during the process of branding products improved the competence in the process of procurement since this saved on expenses experienced since it was being mutual. Concepts not covered Intellectual Capital Coles has been able to place an increased value on Intellectual Capital within the company. Part of the regeneration strategy focused on the recognition of the Human Capital of the workforce, and increasing its worth through training and development programs. Structural Capital has also seen improvements in areas such as warehousing processes and IT system development. Levels and types of Managers Several layers of management are used by Coles in order to lead and control their company at large. The following are several layers of management including Department, Senior, Store and Regional managers. From Regional management, the chain of command then steps into Company levels. We also have issues to do with globalization and the changing nature of managerial work which have not been covered. Organization Design Theory and Practice It is also important to note that a lot of organization design theory and practice issues have also been showcased namely planning, controlling which has elements such as work specialization, chain of command where under levels of management, Coles has a formal chain of command throughout its management levels. This includes hierarchy of management within stores, as well as into senior management. We also have Span of control, Decentralization and centralization and lastly formalization. Decision Making and Planning Decision making process The decision that Coles’ has to take so as to sell items in a more inexpensive way is a clear example of one of the decisions that Coles has made[Gar11]. For example, recently Coles decided to discount 1 litre of milk down to only $1 as a means to attract new customers. This discount of an essential staple has resulted in a 4.6% increase in Food and Liquor sales. Strategy and Design Scenario Planning Coles is planning for upcoming revolution in the technological world. Coles comprehends that to be able to succeed in the coming future, a lessening in operating cost expenses must be accomplished. One of the most important way Coles can achieve this is by introducing a new form of ‘checkouts’. Radio tags will be placed on grocery items and customers will be able to walk through scanners and have the bill charged to their credit card. This system when implemented will work in tandem with conventional checkouts. Strategic, Operational and Tactical planning Strategic planning for Coles can be found from many sources. For example, Coles is using a strategic plan to free up capital by finding joint venture partners for its Hotel and Pub portfolios[Law101]. The resulting capital will then contribute to the operational plans of the business. Coles also has a strategic plan to catch up with its main rival supermarket, Woolworths. This strategic plan includes elements such as transforming supply chains to reduce overheads, new branding and more house brands[Els96]. A recent operational plan that Coles has marketed heavily is the introduction of my5. This plan is designed to increase turnover by offering incentives to customers. This operational plan is consistent with the long term strategic plan to catch up to Woolworths. Contingency Planning A great example of Coles’ contingency planning can be seen with relation to the recent strike warehouse employee strike in Victoria. Coles had contingency plans in place to deal with the likelihood that one day there may be a disturbance in supply lines between warehouse and retail stores[DBr79]. Coles was able to continue trading effectively even with the loss of supply from one warehouse. Coles even stated that the non-effect of the strike on supply was entirely due to their contingency plan, even though it was said to cost them a six figure sum daily. Further studies and reflection Research made into Coles’ Ethical Behavior and EEO or Discrimination policy: Internet searches was used to demeanor the two areas. For instance both Coles and its parent company Wesfarmers were researched through their respective corporate websites to see what they publish in their public forum[Mar94]. Wesfarmers has what is called a 'Reconciliation Action Plan'. Wesfarmers are dedicated to make ensure that all business units are places where Aboriginal and Torres Strait Islander (ATSI) people feel welcomed as employees, customers and citizens. Coles has a ancillary plan, called the Aboriginal and Torres Strait Islander Plan. Its significant aspire includes building a relationship that is meaningful with ATSI people, and the stipulation of an opportunities that is meaningful. Coles was able to publish a community report in 2011, in which they exhibit their multiplicity principles/statistics. They recognized that in a survey of 70,000 employees, they have 173 countries of origin represented, 313 different languages and 424 members identifying themselves as being of indigenous origin. At the time of the report, more than 100 members had taken part in cross-cultural awareness training, to better understand indigenous Australian culture[Rob11]. On the other hand Coles has a partnership with Disability Works Australia, and has employed 2400 people with disabilities since 2004. This suggests that Coles has a stated corporate goal of positive relationship building with both the community and its employees. The public forums make no mention of ethics, and it is difficult to find unbiased news with regards to Coles on the internet. In conducting the research, it became apparent just how big a corporate entity Coles (and Wesfarmers) is. There is the potential to manipulate the media into presenting a Coles-positive slant on news stories. A Google search requires a trawl through several pages to get to pages that are not owned by Coles itself. One of the articles found suggested that Coles does not necessarily adhere to its stated corporate goals, and nor is it always ethical. The article referred to Coles’ treatment of pregnant employees resulting in an intervention by the Fair Work Ombudsman. They had transferred pregnant employees into lower paying positions, and whilst they rectified the problem when confronted with it, it still had to be a conscious decision to conduct the transfer in the first place. The advertising campaign for lower prices only mentions the benefits for the consumer. When challenged on the diminishing returns for primary producers, the corporate response seems to be that the producer isn’t obliged to sell their product through the Supermarket duopoly of Coles and Woolworths. They neglect to mention to the consumer that producers have few other choices, and that there are real risks of industry degradation, resulting in higher prices to the consumer (as has been the case in England). The overarching reflection from this research is that the organization has created excellent policy documents, and has gone some way to create ‘multi-cultural champions’. Coles is also large enough to exert a degree of control over the media, and can certainly relegate internet media to secondary importance in search engines. The proliferation of open source information sources means that is possible to develop an oversimplified view of an organization whilst remaining unaware of the breadth of extra information that would enable the development of a balanced opinion. A further reflection relates to the corporate relationship with customer attitudes. The mega-corporates, such as Coles, suggest that they respond to customer desires, whereas the contrary view is that they drive consumer attitudes[Bry12]. The Coles/Woolworths duopoly is developing a hold of Australia that will give them unprecedented levels of power over consumer habits and abilities to make lifestyle decisions. References Mik07: , (Millmore, 2007), Gar08: , (George, 2008), Dia07: , (Waddell, 2007), Gar11: , (George, Essentials of contemporary management, 2011), Law101: , (Beer, 2010), Els96: , (Morgan, 1996), DBr79: , (Broadbent, 1979), Mar94: , (Rodwell, 1994), Rob11: , (Grant, 2011), Bry12: , (Pearson, 2012), Read More