Case analysis

Wesfarmers Company is a conglomerate that is located in Australia that has interests in other cities. Based on Perth, it serves Australia as well as New Zealand markets by supplying fertilizers, chemical products, industrials products, and also coal tools in the long run. The company registered revenues amounting to $1,945 million last year. In terms of the venture, Wesfarmers limited comes the top of the lists in companies in Australia. It has overtaken other giant retailers like BHP as well as Wools worth . Due to its large-scale operations, Wesfarmers Limited employs around 225,000 employees, making it the largest private employer in Australia.

Wesfarmers Company began as a cooperative society that was born in 1914. By then, it was named Westralian Farmers’ Cooperative Limited that was started by both the farmers as well as the Settlers who had formed the Association on the Western side of Australia. The man's agenda behind the birth of the cooperative society was derive from providing goods and services to the members in West Australia and also to manage the assets of the company that were located by these farmers. However, the medium affirm was later handed over to the Australian Broadcasting Commission five years later, after which it was expanded to the ABC radio it is today.

The conglomerate has been running multiple businesses that have been located in numerous industries over time. There are various approaches that need to be followed to manage the different business practices that are necessary in the long run. In 2016, the company announced that it was making changes to the departments so that they can be centrally managed but operate independently . One of the departments is Kmart that works both in Australia as well as New Zealand. It is a major distributor of automotive services over time, as well as repairs in Australia. It also offers Auto Services over time that are essentials in the extended run provision of goods and services. With over 230 retail outlets, the business serves a broad market and a significant source of business revenue. Another firm under the conglomerate is Target, a considerable discount supply chain that operates in Australia .It has over 20,000 employees and over 300 outlets in the country.

Other departmental stores that are run by the conglomerate include the West farmers' Chemicals, Energy, and Fertilizers that not only manufacturers but also distribut6es agricultural and industrial chemicals that are distributed all over the state. Some of the plants that operate infer this department include ammonium nitrate plants and sodium cyanide plants. Its employees over a thousand staff creating employment for many people over time .Another branch of the company is the Wesfarmers Industrial as well as safety that gives safety components as well as services both in Australia and in New Zealand. It has acquired other retail giants like Pacific Brands Limited and also involves other enterprises like Stubbies and Core gas.

Wesfarmers aims at delivering satisfactory returns to the investors. Following this principle, the firm has developed a very highly focused, disciplined, and unique enterprise culture that operates on the core values of the company. These core values include accountability, transparency, integrity, and finally, boldness.

The vision of the company is to provide substantial returns on capital invested by efficiently doing business operations with respect to the core values, which include transparency, accountability, boldness, and integrity.

Each company has an organizational structure that is necessary for giving it the required tasks in the business. The duties, as well as responsibilities, need to be delegated to different people at different levels so that the goal of the company can be attained in the long run. There are factors that need to be considered overtime, especially in multinational conglomerates like Wesfarmers . The company has a hierarchical organizational structure where the director heads the organization and oversees the overall performances of the firm. From the director, the manager comes in who handles all the managerial duties if the firm at distinct levels of the firm. From the crib comes the regional managers who are responsible for the overall tasks that take place at a local level of the business over time. At the local level, the team is answerable to the regional manager on the global activities that the chain outlets are doing. The employees are at the lowest level in the hierarchy, and they are directly responsible to the team. This is the framework for supervision that the company has to incorporate over time. There is also the position of the general manager who is directly answerable to the director. He handles the supervisory docket that is responsible for overseeing all the sales, marketing, and production as well as financial services that are done at the firm.

However, the structure of the company has some drawbacks. At first, the employees may be over managed by the different leaders since there are no boundaries as to where the authority needs to reach. This may demotivate the employees in the long run. With the extensive managerial framework, communication is thus another aspect that may be neglected over time. Without proper notification, the improvement scope will decline and confusion that arises the other challenges of this structure are the associated costs and also the problem of a future delegation of roles. As a conglomerate that deals with many industries, it has a system of operation that ensures that all the activities run smoothly over time. Enterprise Resource Planning is a simple software that is used within the company. With the multiple acquisitions that the company has made, this is the only clear way that the management of these various forms us necessary. The advantage of this management software is that it offers Wesfarmers the opportunity to ruins its operations in line with the accounting system as well as the popular demand for the firm. In addition to efficiency, the software also provides unique analytics as well as managerial compliance in the firm.

The sales of Wesfarmers Company involve a series of four levels that include advertising, qualifying, making proposals, and finally delivering the ordered items .However, the sales process must be conducted in relation to opportunities, contracts, goals, and also customer satisfaction. The marketing strategy of Wesfarmers follows as a series of seven steps that include: location, items, promotion, and physical evidence, the price of things, the people, and finally, the process. This is the marketing mix that is used in the firm. Since the company is a multinational conglomerate that has operations in multiple enterprises, the marketing strategy is this very flexible to accommodate any changes that may come along the way . The procedure is comprised of the company, consumers, competitors, business partners, and, finally, the marketing context.

Due to its extensive operational framework, Wesfarmers has multiple strengths that are important for the firm to remain in business over time. The first strength is the substantial returns on investors’ capital. This can be attributed to the continued execution of new investment opportunities. It also has a reliable pool of suppliers in the long run. The availability of factors of production is a factor that has facilitated the success of the firm ahead of any oversupply chain. The firm also has a very steady brand portfolio that can be attributed to the numerous acquisitions made over the years . This adds to the experience curve hence making it easy for the firm to expand into new brand categories over time.

The other strength of Wesfarmers Limited is successful mergers as well as acquisition records. The company has continuously merged with very many firms over the years. The records of growth and development, as well as profits, are resounding over time. It has also operated in diverse industries making it a top conglomerate to buy and invest. It also has a strong community of consumers who are not only a good source of information, but they are also kind and loyal customers in the long run .It is through increased invention as well as innovation that the community gets the desired goods over time. The other strength of the company is the availability of cash flow. Liquidity of a business determines its flexibility in terms of distribution hoods and services as well as investment decisions over time. Finally, it has a reliable and reasonable consumer satisfaction.

In addition to the strengths, weaknesses are the internal factors that affect the operations of the firm. Wesfarmers incorporation weaknesses are the challenges that the firm faces In the midst of competitors and strategic performance. The first weakness is that the firm is channelling in investments in research slower than the competitors with the emergence of technology as the new field of competition, there are firms that are expanding at a faster rate than Wesfarmers. The daily inventory of Wesfarmers is also high as compared to the competitors over time. It thus uses more capital in the process .With increased expenditure, there are little to no inputs in terms of investments as well as expansion or the business. This can be quickly done by the competitors and hence a significant threat. The company also lacks an excellent method of forecasting the demands of predicts, thus losing potential opportunities to competitors.

Predicting the future is the single most important competitive advantage of enterprises. For the company to succeed, it has to set its eyes ion the future. This explains why daily inventory is also high in the firm. Another weakness that Wesfarmers Company faces is the failure of the enterprise to integrate companies that have distinct work cultures over a period of time to succeed in any business venture, there is a need for the company to integrate various companies that operate in the same field. Since the firms are continually upgrading their strategies, Wesfarmers Limited thus poses a weakness. They might lose some of the markets to the competitors. Furthermore, it has minimal success records outside their investment portfolio.The main area of concern is the industries as well as the investments that the company holds. There is little information about the sectors that the firm holds over time.

These are the external factors that influence the operations of the business. The possibilities of the industry include the rise in consumer spending as well as economic progress in many markets. This happens after many years of economic recession, and with the revival of the economy, there exists a new pool of untapped customers. The other opportunity is the constant market development that is needed to increase the competitive advantage of the firm .The growth of the market will dilute existing competitors. Another opportunity is the existent of a stable flow of income that provided the capital that can be used in future investments. Investment opportunities can be new product lines or new technology-oriented ventures .

The other possibility of Wesfarmers Limited is the gradually decreasing distribution costs due to the emergence of third-party logistics firms. This lowers down the cost of transit and also the operational expenses that the company would incur like salaries and maintaining the trucks over time. This is thus very beneficial to Wesfarmers since the funds can be channelled to other ventures over time .Another opportunity for the firm is the availability of new customers from online sources. The shift of business operations from the traditional brick and mortar to the new online business has created a new pool of customers. It has also opened new markets that have been untapped for decades, thus an excellent investment opportunity. Finally, the lower rate of inflation ensures market stability over time with stable exchange rates, the potential of the profits is very crucial.

This is the other external factor that needs to be looked into in the long run. The first threat of Wesfarmers includes the rising cost of inputs that increases the operational expenses of the company. The other threat to the company is the trend towards America isolationism that has like implications for firms over time .The other threat that the firm faces are bottleneck competition from various online retailers that function in the same industries with multiple techniques. One of the giant online retailers is Alibaba that sells various goods at a deficient process. With the cut-throat competition criteria, it poses a threat to Wesfarmers Limited over time. The other risk that the business face is counterfeiting the products offered at Wesfarmers and selling then at low prices. Most of the goods that are provided by these firms are close substitutes with similar functions. Selling them at a low process makes the entire operational process competitive over time, and the threat of losing customers is also high. There are also new governmental regulations, like the Paris treaty, that affects business operations. With increased rules and regulations governing the international markets, it is clear that the chances of foreign entry in the global market are not guaranteed. There is also the threat of increasing wages compensation, increasing employment expenses.

Wesfarmers limited is a multinational conglomerate that has operated for over a century now. Even though it has taken root in many industries, the trends in the current global market place require that the company to continually revise their strategies is that it can effectively compete in the market. I would recommend that even though the structure is the firm is outstanding, the business has to shift to include new methods of research, marketing, and operations. Information and communication technology have resulted in new trends that require the services of multiple people in the long run. I would also recommend that the firm expands into new markets through understanding the prevailing regulations. Otherwise, retailers like Alibaba will take over the market eventually.

Wesfarmers Company is a conglomerate that is located in Australia that has interests in other cities. Based on Perth, it serves Australia as well as New Zealand markets by supplying fertilizers, chemical products, industrials products, and also coal tools in the long run. The company registered revenues amounting to $1,945 million last year. In terms of the venture, Wesfarmers limited comes the top of the lists in companies in Australia. Even though the company started as an agricultural cooperative society, it has expanded to include other services as well as activities over time. The business has grown in many continents all obvert e world with the aim of providing more and more to people for less and less.

Some of the countries where the company operates included Hong Kong, China, the United Kingdom, and Singapore, among others. The first strength is the substantial returns on investors' capital. This can be attributed to the continued execution of new investment opportunities. It also has a reliable pool of suppliers in the long run. Weaknesses that Wesfarmers Company faces is the failure of the enterprise to integrate companies that have distinct work culture over a period of time. Furthermore, it has minimal success records outside their investment portfolio. Opportunities include the gradually decreasing distribution costs due to the emergence of third-party logistics firms. Threats that the firm faces include bottleneck competition from various online retailers that function in the same industries with multiple techniques.

WESFARMERS

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