Lending Decision for Coles Group Limited - Case Study Example

There is nothing wrong with the figures. The figures are the only representative of the facts. The past performance of Coles is not going to help its future prospects unless the causes of the dismal figures are rectified. The company's accounts department is doing its job well. The problem is somewhere in the communications system and customer relations policies. Not enough seems to be happening to attract a better customer base. Painting rosy pictures year after year cannot be a solution.The company must look lean and handsome in the sight of its patrons.

Good advertisements, sponsorship of popular events, forays into new areas of business, or expansion of good, existing ones must be seen to be happening every now and then to build customers' and investors' confidence. Make a list of large potential customers like hotels, restaurants, and other eating joints. Marketing strategies must go hand in hand with understanding and catering to the needs of individuals as well as corporate clients. Concentrate on products that yield better profit margin location-wise.

Product A may rake in a higher profit margin in one location, whereas Product B may show a similar margin in another location. The range of products in one location must reflect its local market demands. A uniform range for every location is not the best way to attract customers and profits.