Assignment 2: LASA 2—Evaluating a Supply Chain
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CallahanH_M3_A2.docxRunning Head: BUSINESS SUCCESS 1
BUSINESS SUCCESS 9
Business Success
Hakim Callahan
Argosy University
Business Success
Introduction
Organizational structure, business culture, and strategies are among the critical elements contributing to the success of an organization. This research seeks to analyze the elements as mentioned above at Wesfarmers Limited and how they contribute to effective operations. Notably, the study assesses the Wesfarmers' enterprise approaches and how they enable the company to achieve its global aspirations. In the research, there is the SWOT analysis of Wesfarmers Limited. The external environment of the enterprise is evaluated and the business process outlined. Lastly, as the research comes to an end, the ethical challenges facing Wesfarmers Limited are highlighted and recommendations provided on how to improve conservative business practices to enhance adherence to the code of ethics in commerce
Wesfarmers Limited Overview
In 1914, Wesfarmers Limited was formed. Over the years, the company has grown as a multinational and presently Perth is the headquarters of the company. Among its primary business functions, the company operates in the manufacturing of safety equipment, fertilizers, chemicals, and coal. The extensive business operations have led to the company employing two hundred thousand employees spread out across various departments and branches of the company. The success enjoyed by the company has been attributed to the effective techniques and models governing business operations, organizational structure and the enterprise strategy.
Business strategy
A business strategy seeks to outline the steps and procedures to be followed to achieve set objectives in the business. At Wesfarmers Limited, the business strategy involves the formulation of well-defined objectives which provide a sense of direction in the organization. Moreover, through clear objectives, the company can mitigate inadequacies such as delays resulting from unclear objectives or instructions. The primary principle of the business strategy used at Wesfarmers Limited is the use of a results-oriented approach. The approach ensures that all operations and products produced by the company are intended for serving the needs of customers in the market. A results-oriented approach ensures Wesfarmers Limited has the ability to enhance customer satisfaction and customer loyalty. The two elements are critical in ensuring that a business enterprise is viable and profitable in a highly competitive business environment. Product differentiation is an aspect of the results-oriented approach to enhance customer loyalty and profitability. Product differentiation encompasses the practice of using distinctive aspects to differentiate it from competitors. At Wesfarmers Limited, product differentiation is achieved through the packaging of the products. The packaging of the products produced by Wesfarmers Limited is unique to enable the products to be easily identified by customers. Also, quality differentiation is an aspect explored by Wesfarmers Limited. The company has been able to build their reputation as a company which provides quality products. The positive reputation has contributed to growth and profitability of the business in the industry.
Another governing principle of the enterprise strategy used in Wesfarmers Limited is the use of technology in production. The realization that technology benefits an organization through high production, economies of scale, efficiency and enhanced quality, has led to Wesfarmers Limited automating their production process which has enabled the company to increase its profits and reduce operational cost.
The effectiveness of operations in an organization enhances the profitability of an organization. As an attempt to enhance the operations at Wesfarmers Limited, the company has focused on employing competent staff members. The revision of the recruitment and selection process at Wesfarmers Limited has led to scrutiny to ensure highly competent individuals are selected to work in the company. The utilization of a Human Resource Information System (HRIS) has enhanced the recruitment process in the company. A Human Resource Information System is a software equipped with algorithms to enhance human resource operations. In the selection of the staff at Wesfarmers Limited, the HRIS enables the automated evaluation of applicants to ensure that skilled applicants are selected to enhance operations in the organization.
At Wesfarmers Limited, growth and expansion is a continuous process which needs to be pursued to ensure the development of the organization. The evaluation of global expansion strategies outlines how the company seeks to expand into international trade. Currently, the company is working on the formation of a partnership in new areas such as Asia where the company can extend its market share. Furthermore, the company aims to enhance the international awareness of the products offered by the company by participating in exhibitions and shows. Cumulatively, the business strategy employed at Wesfarmers encourages the growth and development of the company locally and internationally.
SWOT analysis
SWOT analysis is a business evaluating technique which outlines the current position of an organization (Arabzadan, 2012). SWOT analysis is critical in the management of the organization as it outlines the strengths, weaknesses, opportunities, and threats concerning a business enterprise. The following is the SWOT analysis undertaken for Wesfarmers Limited.
Among the strengths of the company is the brand recognition enhanced by its long existence in the industry. Also, the company enjoys a positive reception in the society through its corporate social responsibility programs. Another strength of the company is that the company addresses the needs of customers by providing convenience in the purchase of products. High quality is a strength of the company which acts as a product differentiation technique to the business. The integration of technology has enabled the company to increase the company's profitability by the integration of online sales. Lastly, the range of options available to customers enables the company to accommodate for all the needs of customers.
Among the weaknesses challenging the development of Wesfarmers Limited is the constant scrutiny of the company. Moreover, since the company primarily operates in Australia, the low population inhibits the growth of the company regarding sales and profitability.
Opportunities present chances which may be exploited by Wesfarmers Limited to enhance its growth trajectory. One of the opportunities which can be pursued by the company is the expansion into new territories such as Asia. Despite, the company offering high quality products, there is room for improvement. Notably, the company should ensure competence in all branches. As mentioned above, customer loyalty is a critical element towards achieving growth of a company. Wesfarmers Limited should incorporate loyalty programs for its customers which will enhance customer loyalty. Consequently, this will enable the company to survive the dynamic business environment characterized by low seasons.
Threats describe the risks facing an organization. Among the potential threats to Wesfarmers Limited is competition. The infiltration of global brands such as Woolworths contributes to a deteriorating market share previously enjoyed by Wesfarmers Limited. Moreover, the customization offers made by competitors may lead to loyal customers abandoning Wesfarmers Limited with preference to products offered by improved business enterprises.
External environment
A business usually operates in an environment where the company does not have a direct influence on the external environment. For instance, in the expansion of Wesfarmers Limited to international markets, it is essential to consider aspects such as political, legal, economic and social factors (Tidström, 2012). Under political aspects, the political stability of a country affects the growth of the company in a specific country. Political stability is a critical aspect as it safeguards the investment in a foreign country. Social factors encompass the local reception of a new business idea. In the expansion of Wesfarmers Limited to international markets, it is important that the business strategy of the company upholds the social and cultural aspects of specific areas. The economy of an area determines the purchasing power of individuals in the area. In the expansion of Wesfarmers Limited, the company should select economically viable zones to enhance sales and profitability of the business enterprise. The legal environment describes the set rules and regulations governing economic activities. In the selection of a potential expansion area, Wesfarmers Limited should select areas with favorable economic restrictions which will provide an ideal environment for the growth of Wesfarmers Limited.
Organizational structure
The organizational structure describes the departments and positions occupied in a business enterprise. The organizational structure outlines the duties of employees in the organization. Also, the organizational structure enables the coordination of operations in the organization to prevent inefficiency. Lastly, the organizational structure allows the management to monitor the performance of each employee in the organization. The following is the organizational structure of Wesfarmers Limited:
Managing Director
Production Manager
Finance Manager
Marketing Manager
Research Manager
Production Staff
Finance staff
Marketing force
Analysts
The organizational structure follows a hierarchy with the managing director at the epitome. The managing director is responsible for overseeing all the operations in the various departments at Wesfarmers Limited. The managing director has the power to make decisions influencing other sectors in the organization. Each sector has a product manager responsible for overseeing operations. Each production manager has a manufacturing team assigned to them.
The finance manager is responsible for any financial allocation in the organization. This encompasses disbursement of funds and processing of invoices. The financial manager coordinates the finance team. Marketing is another department at Wesfarmers Limited. The marketing manager is responsible for the formulation of marketing strategies to enhance the sale of products produced by the company. Moreover, the marketing manager enhances the awareness of the company locally and internationally. The research department is headed by the research manager. The research manager performs research in various avenues to provide insight on how the company can improve elements such as efficiency and awareness of Wesfarmers Limited. The research manager coordinates analysts who evaluate data in the organization.
Business process
The business process seeks to outline the operations done in an enterprise to achieve its goals or objectives. The business process allows the contemplation of operations in an organization. Moreover, the business process provides insight into various business departments which are underperforming and can be improved. As mentioned above, Wesfarmers Limited deals in an array of products such as chemicals and retail. The business process starts from the managing director of the company. The managing director provides objectives and goals which should be achieved by each production manager allocated to each sector. Under the retail sector, the production manager is responsible for the coordination of operations in supermarkets. Particularly, the production manager is responsible for the scheduling of activities. This involves coordinating the supply of products to the supermarkets. Also, the production manager is responsible for implementing the marketing strategy intended for the supermarkets to ensure increased sales.
In the mining sector, the mining manager is in charge. The mining manager ensures that planned mining practices are timely done to mitigate delay. Also, the mining manager coordinates the exploration of new mining sites in search of minerals. Among the minerals mined by Wesfarmers Limited include coal.
In the production of chemicals and fertilizers by Wesfarmers Limited, the plant manager ensures that the production is up-to schedule. Also, the plant manager is responsible for availing raw materials necessary for the production of fertilizers and chemicals.
Reports and findings are transmitted to the managing director to determine the performance of each sector. From the evaluation, the managing director communicates to the other managers to enhance performance and reward output.
Ethical issues
The success of Wesfarmers Limited can be attributed to the leadership style used in the organization. Over the years, the company has used a result oriented leadership design. The leadership style has been effective in enhancing sales, research and promoting awareness of the company. However, as the modern business world evolves, ethics has become a primary concern in business. Ethics can influence the social perception of a company. Moreover, in violation of ethics, a company may be penalized in a court of law. This significant influence of ethics mandates the evaluation of techniques in the company to ensure they are compliant with ethics. Among the unethical practices witnessed at Wesfarmers Limited is gender inequality. At the company, there is no emphasis on gender equality which has led to a high number of male workers compared to female workers. Also, another potential unethical practice in the organization is the inability to have a diverse workforce. At Wesfarmers Limited, most of the employees in the company are Australians. This occurrence outlines the diversity imbalance in the organization. Moreover, the occurrence may be interpreted as a discriminatory action which may lead to loss of reputation or legal action against the company.
As discussed above, Wesfarmers Limited is a company utilizing the result oriented leadership style. The use of the approach may lead to the company failing to consider the welfare of employees or clients during the performance of duties. This may lead to a legal action against the company suggesting arrogance. This would adversely affect the reputation of the company.
Recommendation
Despite the existence of potential ethical issues at Wesfarmers Limited, there are specific strategies which can be implemented to avert the unethical practices. Among the strategies which can be implemented is the formulation of a code of ethics. The code of ethics will act as a guideline at Wesfarmers Limited consequently averting unethical practices (Cavanagh, 2004). Also, the company should revise its leadership style to integrate a consumer-oriented or employee approach. This strategy will ensure that the welfare of employees and customers is safeguarded during operations at the organization. Wesfarmers Limited should embrace diversity in the recruitment and selection of employees. Diversity averts the company from dealing with any discriminatory allegations. Similarly, diversity ensures the wealth of knowledge in the company which can be used to formulate better strategies which can enhance the growth and development of Wesfarmers Limited.
Conclusion
References
Arabzadan, S. M. (2012). Improving Project Management Process in Municipality Based on SWOT Analysis. International Journal of Engineering and Technology, 4(5), 607-612. Cavanagh, G. F. (2004). Global Business Ethics: Regulation, Code, or Self-Restraint. Business Ethics Quarterly, 14(4), 625-642. Tidström, A. (2012). Conflicts in business relationships in light of the external environment. International Journal of Business Environment, 5(2), 122.
