VIT Business School

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Title: Analysis of Coles Financial Report

Executive Summary:
We have compiled the thorough analysis and suggestions from the briefing paper "Analysis of
Coles Financial Report" into one executive summary. The purpose of the summary is to give
CEO a brief synopsis and to function as a guide for understanding the key findings and practical
suggestions.
 Table of Contents
Executive Summary:........................................................................................................................2
Introduction..........................................................................................................................................1
Contextual Business and Economic Factors.......................................................................1
Stakeholders........................................................................................................................................1
Sources of Information...................................................................................................................1
Conclusion.............................................................................................................................................2
References............................................................................................................................................2
Appendix A: Coles- Financial Statements.............................................................................2
Appendix D: Media Coverage on Coles...................................................................................3
Introduction
The purpose of this briefing paper is to provide an overview of a current business finance
issue focusing on Coles, an Australian-based retail company. This financial report will
highlight Coles key contextual business and economic factors, stakeholders, and various
sources of information essential for preparing a policy brief to the CEO.

Contextual Business and Economic Factors

Coles is one of the largest supermarket chains in Australia. It is operating in a highly
competitive retail market dominated by a few major players like Walmart, Costco and Home
Depot etc. As a retail giant, Cole’s financial performance is also vulnerable to a range of
economic and market factors. These factors include:

1. Consumer Spending: Coles revenue is directly affected by changes in consumer

expenditure patterns.
2. Competition: Intense competition from other supermarket chains such as
Woolworths, Tesco and Aldi drives Coles to constantly innovate and optimizes its
operations.
3. Regulatory Environment: Coles works in a highly regulated industry where rules
control things like labor practices, product quality, and price.
4. Supply Chain Management: Coles overall financial success is impacted by its
capacity to effectively manage its supply chain. Transportation costs, supplier
relationships, and inventory management should be taken in considerations.

Stakeholders
Stakeholders involved in Coles financial performance include:

1. Shareholders: The financial stability and profitability of Coles are important

concerns to the company's investors.
2. Employees: Coles' heavily relies on its workforce. Employee’s well-being, job
security, and compensation are significant concerns for the company.
3. Customers: Customer happiness and satisfaction greatly influence Cole’s revenue
and profitability.
4. Regulators: A number of government organizations oversee Coles' business
activities, product safety, and pricing.

Sources of Information
To prepare a policy brief, it is important to consider both formal and informal sources of
information of Coles. These include:

 Financial Reports: Coles annual financial reports provide detailed information on its
financial performance, revenue, expenses, profitability, and cash flow.
  Market Reports: Research firms publish reports analyzing market trends, consumer
behavior, and competitive dynamics. These reports might offer useful data of Coles
operating environment.
 Regulatory Filings: Coles' filings with regulatory authorities, like the Australian
Securities Exchange (ASX), contain important information on regulatory compliance.
It also carries corporate governance and risk factors.
 Industry Publications: Publications that focus on the retail sector frequently publish
articles, interviews that are relevant to Coles.
 Internal Data and Reports: Coles internal data, sales figures, customer feedback,
and operational metrics can provide valuable information on identifying areas for
improvement.

Conclusion
In conclusion, an understanding of contextual business and economic factors, stockholders
identifying key stakeholders, and utilizing various sources of information are essential steps
in preparing a comprehensive policy brief for Coles CEO. By having an overall idea about
these factors, CEO or stockholders can drive Cole’s success to the sky.

References
Australian Bureau of Statistics. (2023). Retail trade, Australia (Cat. No. 8501.0).
https://www.abs.gov.au/statistics/industry/retail-and-wholesale-trade/retail-trade-australia/
latest-release

Coles Group Limited. (2023). Annual report 2022.

https://www.colesgroup.com.au/InvestorCentre/ReportsPresentations/AnnualReport

Hatch, P., & Hansen, R. (2022). Coles' big bet on data analytics. Australian Financial
Review. https://www.afr.com/companies/retail/coles-big-bet-on-data-analytics-20220401-
p5adn5

Appendix A: Coles- Financial Statements

Coles income statement, balance sheet, and cash flow statement offers comprehensive details
on the business's financial performance. You can have an idea about Coles' revenue,
expenses, assets, liabilities, and cash flows over a specific period by analyzing these sheets.
 Figure: Summary of Coles financial statement

Figure: Chart analysis of Coles financial state

Appendix D: Media Coverage on Coles

There are news articles, press releases, and interviews from reputable media outlets which
cover’s Coles' financial performance, strategic initiatives, and market developments. Media
coverage provides additional perspectives on Coles' operations and its rank in the industry.
 Figure: Income Statement
Source: https://au.finance.yahoo.com/quote/COL.AX