Corporate Structure

Corporate Structure

Introduction

Corporate structure is the way in which the parts of a corporation are put together. Corporations usually have several strategic business units (SBUs). These SBUs are also called strategy centers, strategic planning units, or independent business units (Jain, 1990, p.17). Kotler (1997, p.71) states that an SBU is a single business or collection of related businesses that can be planned separately from the rest of the company. An SBU can be a company division, a product line within a division, or sometimes a single product or brand (Kotler et al., 1998, p.35).

A corporation and its SBUs have structures that must be understood before a marketing plan can be created. These are very important because a marketing plan is a significant key to achieve the organisational goals. A good description of the corporation and its SBUs will provide an adequate understanding about them. This essay will describe the structures of a corporation and one of its SBUs, namely Coles Myer Limited and Coles.

Corporate Structure

Coles Myer Limited is an Australia company which provides services for its customers.

History

Coles Myer Ltd. is an Australia's retailer. It is a merge of two large retailers, namely G.J. Coles & Coy. Ltd. and The Myer Emporium Ltd. G.J. Coles & Coy. Ltd. started its first store in Collingwood, Melbourne on 9 April 1914; while The Myer Emporium was established in 1900 in Bendigo, Victoria, by Sidney Myer. G.J. Coles operated variety stores; Myer operated department stores, as well as discount and specialty stores. The two companies united in 1985 and became Coles Myer Ltd. with a new company logo.

Shareholders

Coles Myer Ltd. has over 300,000 shareholders. It has about 33,000 employee shareholders. These employees are part-owners of Coles Myer Ltd. through the Employee Share Plan. There are also some shareholders who invest indirectly in the company through managed investments such as superannuation and trust funds. The substantial shareholders are shown in the table below.

Substantial Shareholders as at 30 September 1998

Number of Shares

1 S.L. Nominees Pty Ltd and its associates 141,352,959

2 The Capital Group of Companies, Inc. and its associates 86,090,011

3 Barclay Investments Pty Ltd and its associates 72,485,198

4 Macquarie Bank Ltd and its associates ...

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...her EBIT. It means that Coles is more efficient and effective in allocating its expenses.

Conclusion

Coles Myer Ltd. is a big corporation that provides services for its customers. Its goal is to be the best retailer in the markets. To achieve the goal, it has twelve SBUs in some categories. One of its SBUs is Coles Supermarket. It sells personal, domestic, or household products. By understanding the structure of the corporation, what the corporation needs can be seen and the marketing plan can be created.

Bibliography

Boyd, H.W. & Walker, O.C. (1990), Marketing Management: A Strategic Approach, Richard D. Irwin, Inc., Boston.

Coles Myer Ltd., Coles Myer Limited, <http://www.colesmyer.com.au>, (Accessed <23 August 1999>).

Coles Supermarket, Coles Supermarket, <http://www.coles.com.au>, (Accessed <23 August 1999>).

Diamond J. & Pintel, G. (1991), Principles of Marketing, (4th edn), Prentice Hall International, Inc., New Jersey.

Kotler P. & Armstrong G. (1999), Principles of Marketing, (8th edn), Prentice Hall International, Inc., New Jersey.

Kotler P., et al. (1998), Marketing, (4th edn), Prentice Hall Australia Pty Ltd., Sydney.