Importance of Corporate Communication in Wesfarmers

Running head: CORPORATE COMMUNICATIONS
Wesfarmers
Corporate Communications
12/11/2018

CORPORATE COMMUNICATIONS 1
Executive Summary
External and internal policies of corporate communication support a business to uphold its
professional image while exploiting and clarifying on the ways co-workers and business
associates interrelate with each other. Business with poor strategies of communication
possess a better likelihood of confusion, misjudged delivery of service and internal disorder
that can consequence in inferior performance and productivity. The aim of this report is to
highlight the importance of corporate communication within an organization i.e. Wesfarmers.
Diverse strategies and behavior followed in the Wesfarmers are discussed in order to
understand the effectiveness of the communication. From the analysis, it has been identified
that Wesfarmers possess a strong corporate reputation in the market as compared to its
competitors. Moreover, the political and economic situations majorly affect the operations of
the company.

CORPORATE COMMUNICATIONS 2
Table of Contents
Executive Summary.................................................................................................................1
Introduction..............................................................................................................................3
Company Background..........................................................................................................3
Mission of Wesfarmers.....................................................................................................3
Vision of Wesfarmers.......................................................................................................4
PEST Analysis......................................................................................................................4
Political.............................................................................................................................4
Economic..........................................................................................................................4
Social................................................................................................................................4
Technology.......................................................................................................................5
Organization Structure.........................................................................................................5
Ownership Structure.........................................................................................................6
Stakeholder Theory..............................................................................................................6
Importance of Stakeholder’s theory to understand corporate reputation.........................6
Stakeholder of Wesfarmers..................................................................................................7
Shareholders....................................................................................................................7
Customers........................................................................................................................7
Employees........................................................................................................................8
Suppliers..........................................................................................................................8
Corporate Reputation Theory...............................................................................................8
Wesfarmers behavior and activities.....................................................................................9
Building blocks of Wesfarmers Reputation......................................................................9
Interpretation of the corporate reputation...........................................................................10
Implications and Conclusion..................................................................................................10
Reference...............................................................................................................................12

CORPORATE COMMUNICATIONS 3
Introduction
The intent of this report is to discuss the importance of corporate communication in
Wesfarmers and the strategies it uses in order to maintain smooth communication among its
stakeholders. It will be comprised of a detailed analysis of the ownership structure of the
company that is used to communicate effectively within the organization. The stakeholder's
theory will be used in order to understand the level of importance is provided to the
stakeholders of Wesfarmers while taking an important decision. Besides this, it will provide a
complete overview of the organizational behavior and activities into the business.
Company Background
Wesfarmers Limited is a conglomerate of Australia; with headquarter in Western Australia,
with key operations in New Zealand and Australia retail, fertilizers, safety products,
chemicals, and coal mining. With around AU$65.98 billion in 2016, Wesfarmers became the
largest company in Australia in terms of revenue, overtaking BHP and Woolworths
(Wesfarmers, 2018). The company is the biggest Australian private employer, with around
220,000 employees. In 1914, Wesfarmers was established as a co-operative in order to offer
merchandise and services to the farmers of Western Australia. The company was listed on
the Securities Exchange of Australia in 1984 (Wesfarmers, 2018).
Mission of Wesfarmers
The mission of Wesfarmers is to offer satisfactory results to the shareholders and to attain
this goals company has created a highly focused, disciplined, and unique culture within the
business (Wesfarmers, 2018).
Vision of Wesfarmers
The vision of Wesfarmers is to create long-term value for the customers. The company is
focused towards engaging with its domestic communities and reducing its environmental
influence (Wesfarmers, 2018).
PEST Analysis
Political
The political forces generally have a major influence on the retail industry of Australia. The
increasing dominance and growing business of the independent retailers like Wesfarmers