MGT603: System

Thinking
Part A : Proposal Individual

Anusha Poudel
STUDENT ID: 00283994T
Table of Contents
ABSTRACT ..........................................................................................................................
COLES .................................................................................................................................
Major problem...........................................................................................................................
Unintended consequences .........................................................................................................
System thinking approach ..................................................................................................
CONSEQUENCES .................................................................................................................
RICH PICTURE OF COLES ......................................................................................................
Recommendation ...............................................................................................................
Bibliography .......................................................................................................................
ABSTRACT

Coles is a leading supermarket in Australia with more than 10 years in business. With
increasing competition, changing market demand and coming century complexity, the
market demand to view the business holistically through system thinking to solve the
current issue like unmanaged inventory.
The paper reviews the system thinking approach to Coles supermarket to develop a holistic
approach for solving inventory problem to sustain in market through collaboration with
other suppliers for inventory management.
It is hoped this study will inform about different system thinking approach to practitioners
to develop a holistic view to solve the problem of inventory.
COLES
Coles is among second large grocery store in Australia that dominate the market.
Major problem associated with the store: High rate of operational issue in inventory
management, High priced products.
Threat: New competitors
Unintended consequences: dissatisfied customer due to stock out. (Hakimjee, 2014)
As an operational manager, I should come up with new System thinking approach for Coles
 to contribute to the plan of the business holistically
 meet new demand of the customers
 manage inventory. (Iitutor.com, 2016)

System thinking approach

 Expertise with local experts and act responsibly to handle interdependency and
complexity of coming century (Ross D. Arnold, 2015)
 Focus further on strengthening Coles collaboration with its partner by sharing its data
with supplier to improve inventory.
 Conceptualize the improvement process through the concept of
Trade off.
» Degree of importance of trade off that will have overall impact on
operational competitiveness of Coles .
» Degree of sensitivity of trade off when changes made to one element of
Coles affect another element. (Paul M. Swamidass, 2001)
Leverage point
» fundamentally improve the system performance through improving stock
out and minimize the unintended consequences of collaboration with more
partners.
» identify strong leverage point within the Coles system that can be tweaked,
key boundaries for evaluation to provides with strategic direction to act in
dynamic environment with changing demand and more competition.
(Swanston, 2014)
 Involve Operation manager in strategic planning as they have access to different
knowledge than planning specialist where any issues with manufacturing can be
integrated with business strategy. (Steve Brown, 2007)
CONSEQUENCES
 With the help of system thinking, Coles can hope to understand the complex behavior
of its functioning , and predict the change in behavior aroused from interactive
dynamic complexity so that any major issues like stock out can be rectified.
 Introducing system thinking to Coles will develop a holistic approach to solve the
complex behavior in high leverage which can fundamentally improve the system
performance through improving stock out and minimize the unintended consequences
of collaboration with more partners.
To conclude, the mindset to system thinking is finding out leverage with less mistakes and
becoming more effective by focusing on inventory management of Coles as well as zooming
out other aspect from outside of Coles such as:
 Policies and norms
 Structure
 Patterns of buyers and sellers of supermarket
 Other Intervention (The Value of System Thinking, 2017)
 RICH PICTURE OF COLES

System thinking

Job security
Higher pay OVERALL
Promotion Holistic approach :
Training and Minimize the risk of
Competition development unintended impact
from more partner
collaboration
Employeers Improve stock out
problem
Other
Supermarket
Government
Share
percent
COLES

Suppliers Tax

Customers
Community
HOW?
Improve
theory
TEST THEORY
Convenience Feedback from
New Offer Offers customer
Market update Better quality Pattern of goods
Waste management; product consumption
plastic bags
System
thinking

System
thinking
Recommendation
1. System thinking should be used to identify the strong leverage point that helps Coles
to understand its supplier chain: who to collaborate with to make the necessary
change demanded by changing environment and opportunity in the market for new
partnerships
2. Instead of focusing on single program for example just improving inventory system,
Coles better maximize the effectiveness of organization outside the boundary to
sustain in long term.
3. Involvement of Operational manager in strategic planning should be focused to
manage inventory system
.
Bibliography
Hakimjee, A. (2014, February 11). Supply Chain Management: Coles' Appalling Stock Control.
Retrieved July 2019, from https://cmuscm.blogspot.com/2014/02/coles-appalling-
stock-control.html
Iitutor.com. (2016, Jan 19). Strategic role of Operations Management. Retrieved July 2019,
from Youtube: https://www.youtube.com/watch?v=AbDUEpFrIy4&feature=youtu.be
Paul M. Swamidass, T. B. (2001). The role of manufacturing and marketing managers in
strategy development: Lessons from three companies. Retrieved July 2019, from
International. Journal of Operations & Production Management. Vol 21, 7:
bc973d7b7dfc567ca06a8af4214f54d2d6a768ff59e52cf44fd93ec73f5556dc
Pilcher, J. (2015, January 22). Why Do People Switch Banks? Retrieved July 2019, from The
Financial Brand: https://thefinancialbrand.com/49658/why-people-switch-banks/
Ross D. Arnold, &. J. (2015, November 25). A Definition of Systems Thinking: A Systems
Approach.
Steve Brown, B. S. (2007). The contribution of manufacturing strategy involvement and
alignment to world-class manufacturing performance. Retrieved 2019, from
International Journal of Operations & Production Management, Vol 27, 3, pp. 282-
302.
Swanston, J. (2014, October 31). Systems Thinking! Retrieved July 2019, from YouTube:
https://www.youtube.com/watch?v=GPW0j2Bo_eY
The Value of Systems Thinking. (2017, October 27). Retrieved July 2019, from Youtube:
https://www.youtube.com/watch?v=Fo3ndxVOZEo