Business Environment and Stakeholder

Stakeholder analysis is a significant technique to identify the key stakeholder for the company and also it is a process to analyze their power and interest in the company. Wesfarmers is Australia’s leading retail brand. The aim of this report is to identify and analyse the functional area of the Wesfarmers and it will analyze its internal and external stakeholders.

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Business Environment
Wesfarmers

BUSINESS ENVIORNMENT AND STAKEHOLDER 1
Executive summary
Stakeholder analysis is a significant technique to identify the key stakeholder for the company
and also it is a process to analyze their power and interest in the company. A stakeholder is key
aspects of any company which has to impact the company and also impacted by the company’s
decisions.
Wes farmer is Australia’s leading retail brand. The company expanded its business in New
Zealand, the UK, Australia, and many more countries. Wesfarmers operates around 809 Coles
supermarket, 809 liquor stores, 88 hotels, and 711 convenience outlets. The company also offers
insurance products and services. The aim of this report is to identify and analyse the functional
area of the Wesfarmers and it will analyze its internal and external stakeholders. This report will
also make a stakeholder matrix compare retail industry to the mining industry and analyse the
dissimilarities of stakeholder’s power of interest and influence.

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Contents
Introduction.................................................................................................................................................3
The functional area of Wesfarmers..........................................................................................................3
Internal stakeholder.............................................................................................................................6
External stakeholders...........................................................................................................................7
Stakeholder Matrix..................................................................................................................................9
Comparison between Mining and Retail industries’ Stakeholder..........................................................11
Conclusion.................................................................................................................................................13
Bibliography..............................................................................................................................................13

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Introduction
Stakeholder analysis is an important technique for stakeholder’s identification and analyzing
their requirements. This procedure utilized to identify all internal and external key stakeholders
and those who have involvement in the company (García-Sánchez, 2018). Stakeholders are
usually those individuals and organizations who are actively involved in the organizations or
whose interest impacts by organizational activities (Bischoff, 2018).
Wesfarmers is an Australian based company organized in the year 1914. The company has
become one of the largest companies across the world. The company’s business operation
includes hotel, supermarkets, coal mining, gas processing, safety products distribution,
Chemicals, and fertilizers manufacturing and other investments operations (Wesfarmers, 2018).
The company regularly engaged with their stakeholders to understand the expectations of its
stakeholders, also ask for feedback on its sustainability performance or reporting. Wesfarmers
find the interest of stakeholders in various ways and determine the potential impacts of company
business performance on stakeholder’s interest (Wesfarmers, 2018).
This report will identify and analyze the business functional areas of Wesfarmers and also
identify its internal and external stakeholders. This report will compare two industries with each
other.
The functional area of Wesfarmers
Many organizations have a number of employees working towards achieving the same goals and
objectives. One input of any functional area can be the output of another functional area. Many
companies depend on their internal functional area for its overall business outcome (dictionary,

BUSINESS ENVIORNMENT AND STAKEHOLDER 4
2018)Functional areas are mostly defined according to the field in which the company operates.
However, there is some main functional area which each and every organization utilized to
manage their daily operations such as organization such as Human resource financial activities,
productions, sales and marketing, consumer services.
Human resource: HRM is the most important functional area of any organizations, yet some
organizations underestimate this key aspect of organizational functions. The human resource
process includes various activities such as recruiting, hiring, and coordinating and ensures the
employee development plans and strategies (Brewster, 2018). With the Wesfarmers, the chief
HR officer jenny Bryant handles the HR operations of the company. Company’s Human resource
team is committed to employee related outcomes which help its business to achieve growth. The
HR team of Wesfarmers commercially focused team members and high leadership and
interpersonal skills and passion for delivering outcomes which leads to engaged, and committed
talented workforce (Wesfarmers, 2018).
Financial area: financial operations analyze the various financial aspects of employee and
organizations also keep records of their financial activities such as company’s payables
receivables and several accounting activities. The Financial advisor of the company handles and
take all the financial decision suggest a financial plan for the future of the company. The
department of finance of any company is responsible to maintain the financial records of the
company show these records while calculating the tax return. Finance Team of Wesfarmers
manages the accounts of the company to ensure better customer service. Company’s finance
department delivers accurate data, report and budget to reconcile finance and accounts and make
business developed proposals (Wesfarmers, 2018).

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Marketing and sales: With this market competition a business cannot achieve growth and
develop market without marketing the products (De Mooij, 2018). Every organization invests a
big amount of money to promote their products through many channels for instance radio
televisions, newspapers and other media sources. The marketing team in Wesfarmers creates
innovative marketing programmers and adds which are mostly designed to communicate
effectively to its clients, which helps to grow its business in turn. The marketing team of
Wesfarmers is creative and has qualified in business marketing or related field. When it comes to
the sales team, they are responsible for suggesting marketing strategy growing new sales across
the different customer base in many industries involving government, retail, mining, and
constructions (Sharma, 2018). The company provides all the required tools to the sales team at
WIS to be on the lead. The company also provides job sales training. Wes farmer upgrades its
technology system timely and its recently upgraded system and technology support to grow sales
opportunities (Wesfarmers, 2018).
Customer service: he is one of the most significant areas of any business this involves many
functions like solve queries of the clients about products and services. It also includes activities
like observing customer’s requirement providing information to the company. It provides after
sales services which involve repair and replace (Goodman, 2019). Wesfarmers customer service
operations include inbound calls and subsequent conversion to sales. This team has exceptional
communications skills which help the company to engage its customers.
IT: IT becomes a key functional area for any company in digitalization world. Company’s IT
team maintain optimize the utilization of the technology in the business. The company launched

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many programs such as CSBP’s drone inspection program which enables examinations of its
ammonia plant many other like Robotic Rovers (wesfarmers, 2015).
Internal and External stakeholder of the company
Stakeholder of the company includes those individuals who are involved in the company some
ways (Pati, 2018). Wesfarmers become successful as a result of the contribution of its
stakeholders. The company’s stakeholders categorized in two parts internal and external
stakeholder. Internal stakeholder includes employee, shareholders, customer suppliers, and
external stakeholder includes government, media, and community and non-government
organizations.
Internal stakeholder
Shareholders: Wesfarmers shareholders are the owners of the company. Shareholders invest
their money to get profit in return. The company provides access to its shareholders for up to
date information and authority to involve in any decision of the company. Communications
amongst the management, board members, shareholders, investors, and the other investment
community stimulated subject to compliance with continues disclosure obligations delimited in
the Australian Securities Exchange’s listing rules also the corporations Act 2001 (Wesfarmers,
2018)
Employee: The employee is an individual who is a worker in the company. Employees are
straightly linked to the daily operations of the company and affect the output of the company.
The company employed around 217000 people across the world (Wesfarmers, 2018). The

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company provided authority to its employee to share any issue and problems they face through a
number of channels, employees survey, whistleblower process and website (Wesfarmers, 2018).
External stakeholders
Customers: The Company has a communication mechanism for listening to its clients. The
company gives priority to the customer’s feedback. All the customers of Wesfarmers are able to
contact through letters, emails website, telephone calls. Feedback from the customers via email
monitored on a daily basis and solves their query as soon as possible.
Suppliers: Suppliers can be an individual or an organization who delivers the resource to the
company for productions requirements. If resources are not timely delivered, that will conflict
the further process. Wesfarmers is resolved to long haul results that advantage the two investors
and our providers while perceiving that vigorous dealings are a piece of typical and satisfactory
business practice and add to advancement, productivity, and the long haul supportability and
aggressiveness all things considered.
Government: Being an external stakeholder, government plays a major role in determining the
external environment in which the company operates. The company connected with the state and
federal government of Australia through one on one meetings other direct and indirect
correspondences and cooperation informal conference forms in connection to a scope of issues
that influence its organizations and society, including the accompanying: Coopetition regulation
reform, retail trading hours, liquor licensing, carbon regulation, GST on imported goods, food
and grocery code of conduct and tax reform (Wesfarmers, 2018).

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Non-government organizations: The Company builds a relationship with NGO such as Oxfam
Australia, WWF, and contributes to establishing a better environment. The company also makes
a contribution with many companies such as Australian packaging association, national retail
association, and several others (Wesfarmers, 2018).
Community: Wesfarmers has dependably trusted that a solid business condition is supported by
a strong and comprehensive network condition. As needs are, Wesfarmers has had a long haul
promise to putting resources into network activities connected to long haul social and monetary
results (Wesfarmers, 2018).
Media: The company works with international, national and local media organizations as the
company believes that it contributes to straightforwardness and the notoriety of the Group and
gives a significant road to correspondence with its partners. This incorporates holding media
gatherings to concur with significant occasions and reacting to media solicitations and criticism
through our corporate undertakings office.
The company organizes a monthly meeting to engaging with their stakeholders and conduct
stakeholder engagement survey to resolve the issue what their stakeholders face and also
encourage them to share their own view, meet their expectations in order to achieve success
(Wesfarmers, 2018). The company also creates many policies to meet their stakeholder’s
expectations. All the board directors, shareholders, and employee are responsible to raise voice
and manage the issue and act also they are encouraged to follow these principles:
They are responsible to act with honesty, fairness, and integrity and also encouraged to raise
voice against these issues.

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• They have to act in compliance with the regulations and policies such as anti-bribery
and consumer laws.
• Seek to contribute to positive and sustainable social economic environment
contributed to the sector in which the company operates.
• Maintain and respect the privacy of confidential information of employees and
business records.
• Identify and raise voice against any incident of conflict of interests.
• They have to treat everyone equal and with respect, value diversity and establish a
safe work environment (Wesfarmers, 2018).
Implementation of the code of conducts the company establishes a safe work environment and
provides authority to raise voice against any illegal behavior and meet the expectations of
stakeholders.
Stakeholder Matrix
Stakeholder matrix management tool is a technique, which utilized to analyse stakeholders,
interest and power and aligns their goals and objectives with the company.
Power Interest Matrix: In this stakeholders analysis matrix there are two aspects which affect
the company more than any other aspects, Power and interest.

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(Slaba, 2018)
Power: It is the ability to influence and change the business and operations and decisions. For
example, customers are the major influencer of the company’s decisions. Any decision of the
company contains the purpose to meet the customer requirements.
Interest: It adds to straightforwardness and the notoriety of the Group and gives a significant
road to correspondence with our partners. This incorporates holding media gatherings to agree
with significant occasions and reacting to media solicitations and criticism through our corporate
undertakings division.

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• Power Stakeholder is the major stakeholders as they have great interest and high
power of influence. They only decide by giving their vote to decide who will be a
board of director of the company. They should be effectively managed.
• With low interest and high power should be kept satisfied and they are a customer
who has less interest and high power of influence in the company.
• With low power of influence and high-interest stakeholders are usually employees of
the company, however, they also can create high influence by raising issues in any
area if the things are getting done the way they want.
• With low interest and low power of influence has to be monitored if they become
more powerful and Impacts the business in the future (Slaba, 2018)
Comparison between Mining and Retail industries’ Stakeholder
In the retail industry, the major stakeholders are the customer and employee who directly impact
the business and have the power of influence. But when it comes to mining industry their major
stakeholder can be environmental elements such as land water and air as these elements are the
only effects the business operations and get affected by mining operations. Air water and land
are essential shared resources. All the mining operations of the mining industry have a range of
effects on land use. They are the key parts of the natural capital of the mining industry. Mining
industry highly depends on these natural resources and sites have impacts on the broad area of
land and these later required restoration. And this industry is responsible to protect water, land,
and air, as these are the only element which largely affects the business operations (Tuokuu,
2019).
While Retail and other industry’s stakeholders are their employee, customer, shareholders, and
partners because they only affect the business of the company. Customers provide revenue due to

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sales operations, which the company requires operating and earning the profit. The retail industry
just needs to understand and recognize the requirement of the customer to increase their sales
and meet their expectations on an ongoing basis. An employee of the company who has a high
interest in the company provides a consistent service that helps the business to retain the
customer. Employees have a greater influence on the effects of the business by raising voice
against any illegal behavior. That is why the retail industry has to fulfill the expectations of its
stakeholders. And in mining industry companies expected to adhere to rehabilitation and
environment codes and needs to assure that the mined area is protected after the process. The
environment elements affected by contaminants from mining area might take a long time before
they completely recover. If these elements utilized before their recovery they will not provide
better profit to the mining industry.

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Conclusion
The conclusion of this report is that the Stakeholder’s contributions are significant in any
industry. The key stakeholders are usually those whoever have interest and powers in the
company, some are internal and some external. The stakeholders are customer, employees and
shareholders and partners of the company, some if they have greater power of influence and
some have greater inters in the company. However, both of them influence the company’s
business in some way. It is important for a company to meet the exaltations of their stakeholders.
Stakeholder effects on one another in different ways. A good example is an administration and
the associations and how they sway on nature of production, employee rights and
institutionalization to meet the client rights. The partners interlink in that, a solitary gathering or
individual might be in one class of partners, and similarly, fit in another group. While setting up
a business domain, it is fundamental to comprehend the business environment. Following the
business partners and their commitment to the business gives a sustainable environment.
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