Analyzing the Overview of Wesfarmers Company

Running head: MANAGEMENT
Management
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1MANAGEMENT
Executive Summary
The report has thrown light on analysing the overview of Wesfarmers Company which has
expanded their operations in different countries such as the UK and India. The current
operating position of the company has been analysed which provided brief overview of the
cost and revenue structure of the company. Additionally, the competitive strategy of
Wesfarmers has been identified wherein the organizational design and structure have been
considered, and this helped in analysing the overall effectiveness of Wesfarmers in the
different markets across borders. The various entry strategies have been discussed which
assisted in explaining the most appropriate entry mode for expansion. The value chain
analysis has been described with the application of human resource practices across borders.
Lastly, the opportunities have been considered which were examined along with provided
recommendations to the management.

2MANAGEMENT
Table of Contents
Overview of the company and operating position.....................................................................3
Review of international competitive strategy of company........................................................4
Existing organizational design structure and control issues......................................................6
Entry Strategies used to enter other regions and countries........................................................7
Operational control, production and distribution or supply chain management........................8
Management of human resource across borders........................................................................9
Equal Opportunity to Employees at Wesfarmers...................................................................9
Employee Retention Strategies............................................................................................10
Identification of critical issues or opportunities.......................................................................10
Recommendations....................................................................................................................11
References................................................................................................................................12

3MANAGEMENT
Overview of the company and an operating position
Wesfarmers is one of the Australian conglomerates which is headquartered in Perth,
Western Australia wherein the central departments include retail, chemicals, coal mining,
fertilizers and industrial along with safety products. The company was founded in the year
1914, and the company is listed in the Australian Stock Exchange which grew into one of the
biggest retail conglomerates in the competitive business environment. The areas served by
Wesfarmers are Australia, India, Ireland, United Kingdom and New Zealand wherein revenue
earned by the company is A$68.44 billion, and the number of employees working in the
organization is 223000 (Wesfarmers.com.au 2019).
As per the operating model, Wesfarmers has applied the Lean Retail Model to Fund
investment as customers play a significant role in generating the success of the company in
the market effectively. Wesfarmers have adopted the operating model which helps in
reflecting the expectations of the customers in the market. In the viewpoint of the operating
position, Wesfarmers has mainly focused on the three primary outcomes:
 Cost- Improving overall efficiency along with cost position in the low inflation
environment (Brewster et al. 2016)
 Customers- Offering the customers with different kinds of products and services
which will improve the overall efficiency of the firm appropriately
 Growth- The growing of market share and the customers play a vital role in managing
the operations (Wesfarmers.com.au 2019)
In attaining the operating position in the market which is competitive, the Wesfarmers
Conglomerate needs to apply strong leadership and accountability which helps in managing
operations successfully. Wesfarmers is trying to build a set of world class cross business