Strategic Analysis: Wesfarmers Limited

Running head: Strategic Analysis: Wesfarmers Limited
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Strategic Analysis: Wesfarmers Limited
Report
STUDENTS NAME:
1/12/2019

Strategic Analysis: Wesfarmers Limited 1
Contents
PART 1.......................................................................................................................................3
1. Business background..........................................................................................................3
2. What industry is it?.............................................................................................................3
3. General environment analysis............................................................................................3
Economic............................................................................................................................3
Physical...............................................................................................................................4
Sociocultural.......................................................................................................................4
Technological......................................................................................................................4
Legal...................................................................................................................................5
Political...............................................................................................................................5
Global..................................................................................................................................5
Demographic.......................................................................................................................5
Supplier power....................................................................................................................6
Buyer power........................................................................................................................6
Potential entrants.................................................................................................................6
Substitute products..............................................................................................................6
Rivalry among competitors.................................................................................................7
5. Competitive environment...................................................................................................7
6. Opportunities and threats....................................................................................................8
PART 2.......................................................................................................................................9
1. The firm’s resources, tangible and intangible....................................................................9
Resources............................................................................................................................9
1. Tangible Assets...............................................................................................................9
2. Intangible Assets.............................................................................................................9
2. Capabilities identification...................................................................................................9

Strategic Analysis: Wesfarmers Limited 2
3. Core competency analysis................................................................................................10
Strengths...........................................................................................................................10
Opportunities....................................................................................................................10
4. Proposed Information system solution and its Evaluation...............................................11
5. Recommendations............................................................................................................11
References................................................................................................................................12

Strategic Analysis: Wesfarmers Limited 3
PART 1
(External analysis)
1. Business background
Wesfarmers Limited is a conglomerate in Australian. Its headquartered is in Perth. It focuses
mainly on Australian and New Zealand Retail Company and manufactures coal mining,
fertilisers, chemicals and safety products and industrial products. Wesfarmers is one of the
largest Australian companies as far as revenue is concerned and earned about AU$65.98
billion in 2016. It is the largest private employer in Australia and has almost 220,000
employees working for the company (Wesfarmers 2019).
It was founded in 1914 with an aim to provide Western Australian farmers with services and
merchandise. It later became a major retail conglomerate.
2. What industry is it?
Wesfarmers Limited is a Public Company. The company earns the most from
the Supermarkets and Grocery Stores.
Mr Rob Scott is the Chief Executive of Wesfarmers Limited. Mr Michael Chaney is
the Chairman of Wesfarmers Limited (Bloomberg 2019).
Wesfarmers Limited operates a diverse range of businesses that are hardware, supermarket,
department stores, chemicals and fertiliser, gas processing, energy distribution, coal mining
and industrial and safety product industries.
3. General environment analysis
Economic
The economic factors associated to any organization are exchange rates, interest rates,
inflation rate these can immensely be responsible for the development of any organization.
Service sectors are very significant in the Australian marketplace. The service sector itself
produces 71.1 % of the Australian GDP. In Australia service and Finance are amongst the