Business Analysis | Assessment | 1

STRATEGIC ANALYSIS OF
BUSINESS
Running Head: STRATEGIC ANALYSIS OF BUSINESS
0

ANALYSIS OF BUSINESS 1
Table of Contents
Executive summary....................................................................................................................2
PESTLE analysis........................................................................................................................3
Political...................................................................................................................................3
Economic................................................................................................................................3
Social......................................................................................................................................3
Technological.........................................................................................................................4
Legal.......................................................................................................................................4
Environment...........................................................................................................................4
Three influences for future industry change..............................................................................4
Five forces analysis of Wesfarmers industry environment........................................................5
New Entrances........................................................................................................................5
Power of suppliers..................................................................................................................5
Power of buying.....................................................................................................................6
Competitive rivalry.................................................................................................................6
Substitute threat......................................................................................................................6
Three key forces.........................................................................................................................6
Strategy canvas of Wesfarmers and its rivals Woolworths and Myer.......................................7
Five critical success factors........................................................................................................8
Inbound logistics....................................................................................................................8
Operations...............................................................................................................................8
Outbound logistics..................................................................................................................8
Marketing and sales................................................................................................................8
Services...................................................................................................................................9
Blue Ocean Strategy...................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................12

ANALYSIS OF BUSINESS 2

ANALYSIS OF BUSINESS 3
Executive summary
The strategic analysis of Wesfarmers will present the business practices with effective macro
(PESTLE) and micro (five forces) environment with a strategy canvas and Blue Ocean. The
following report will also highlight the capabilities and components of Wesfarmers. An
information system will also provide the current strategies of business operations. This report
will also include a brief analysis and statement.
This organization was recognized by a complete group of a farmer by their demand for less
working hours and better pay in 1914. This organization led by Walter Haper as supports to a
rural community. He gave opinion that farmers should support and co-operate in trading its
production without the interference of politics. This organization was registered on 27 June
2014. This organization started its trading in a location known as 13 Howard Street, Perth.
This was initiated by product marketing by many cooperative agencies that are known as a
farmer company (Verba, 2015).
This organization has diversification from many sectors like convenience stores, hotels, and
home improvement including retail stores and supermarkets. This organization has turn into
one of the leading private-sector industry that hired 220000 employees and has a good
number of stakeholders around 530000. The share of this organization is addressed and
incorporated in Australia. Wesfarmers is listed in Australian security exchange with codes
‘WES’. The three main trades of Wesfarmers are fertilizers, chemical energy, and the
industrial resources, and safety. This organization has generated new industrial division and
has control center in Western Australia (Verba, 2015).
This organization has a strategy to increase profits by increasing the number of customers
each year through the satisfaction of employees. This organization treated employees as an
Asset. This organization has proud to represent employees as representatives. This
organization has a strategy to strengthen its diversified business portfolio by committing and
determining sustainable business practices to generate long term values and deliver adequate
returns to shareholders (Reutrers, 2016).
This organization is affected by external and internal factors that are necessary to assess and
identify the strategic position. This supports an organization to understand and evaluate
opportunities for growth in the market. Wesfarmers effective strategies enhance the
competitiveness of the organization. The micro and macro environment factors have a large
impact on the Wesfarmers with many operations because of its versatility and exposure.