Corporate Structure - Colesmyer

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 85,660,000
5 Permanent Trustee Co. Ltd and its associates 70,021,605
Source: www.colesmyer.com.au/invest_info/98_annual_review/35.html

Mission
Coles Myer Ltd. has a mission to be the best retailer in every market in which it operates. It wants to produce benefits to its stakeholders. It also wants to be known for honesty and leadership. For this purpose, it considers communication as a very important aspect. It needs to have an open and responsive communication with every aspect of the environment to achieve its goals.
Strategic Business Units
As it is explained before, an SBU could be a company division, a product line within a division, or a single product or brand. In Coles Myer Ltd., the SBUs are the company divisions. Coles Myer Ltd. operates twelve SBUs in order to achieve its organisational goals. The SBUs are:
· Coles
Coles is a full service supermarket. It provides food and liquor. There are about 407 stores across Australia. It employs more than 52,000 people.
· Bi-Lo
Bi-Lo is also a supermarket that provides food and liquor. It is known for its tradition of discount grocery retailing. There are about 149 Bi-Lo stores across Australia.
· Myer Grace Bros
Myer Grace Bros (MGB) provides shopping places which change overtime in order to fulfill the expectations of the customers. It has about 69 stores in Australia.
· Myer Direct
Myer Direct is an Australia\'s leading mail order business. It was established in 1989 and has been growing rapidly since then.
· Kmart
Kmart offers general merchandise with very competitive prices. It provides the convenience of self-service and front-end register. It has about 163 stores across Australia and New Zealand.


· Target
Target is a discount department retailer. It offers a merchandise range of softgoods, dress fabrics, manchester and furniture. There are about 126 Target stores now in Australia.
· Fosseys
Fosseys integrated with Target in 1996. It provides a family apparel and homewares merchandise. It usually focuses on rural areas. It has about 144 stores in Australia.
· Liquorland
Liquorland is a liquor retailer. It operates four brands, namely Liquorland, Vintage Cellars, Quaffers, and Liquorland Direct. Currently it operates about 410 stores Australia-wide.
· Red Rooster
Red Rooster is an Australian-owned fast-food restaurant. It has about 272 stores throughout Australia.
· Katies
Katies is a ladieswear specialty store. It operates about 228 stores throughout