Strategic Information System for Business Enterprises

Running Head: STRATEGIC INFORMATION SYSTEM 1
STRATEGIC INFORMATION SYSTEM FOR BUSINESS ENTERPRISES
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STRATEGIC INFORMATION SYSTEM 2
Part 1
Introduction
The strategic analysis report critically analyzes the basis for the achievement of a higher
growth and performance level by Wesfarmers in the company’s multiple operations. The
organization uses a Strategic Information System and offers special attention on its external and
internal environmental factors while primarily focusing on employee positivity and customer
satisfaction, with an aim of increasing customer loyalty and improving shareholder satisfaction.
Systems can provide cheap services and products which are varied and focused on specific
segments of the market or pioneering. Strategies for business are implemented by strategic
information systems since the systems contain resources which can be applied to strategic
business opportunities and information services in order to enhance the performance of an
organization’s computer system (Ciborra, 2009).
Generally, strategic information systems evolve in response to the corporate initiative,
with the idea coming from businessmen and Operational Information Services which were
responsible for the supply of the technological potential for the realization of profitable results
(Galliers & Leidner, 2014). Most systems support business activities by mechanizing operations
for greater control and efficiency, although they may not increase business profitability. The
systems are easy to use and offer valuable information to the management for the smooth
running of the business, and can also be used to find new directions in the analysis plan.
Strategic Information Systems are a vital and integral part for any business, and affect the profits
and market share directly, including Market Square aspects so as to increase profitability. The
systems can also bring forth new ways of doing business and can introduce new markets and new

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products. Additionally, Strategic Information Systems directly affect the competitive position of
the organization which can present a competitive advantage (Willcocks, 2013).
Background of the Company
Started in 1914 as Western Australian Farmers’ Cooperative, Wesfarmers is a leading
102-year-old retail company in Australia which has currently grown multilateral through the
domination of the New Zealand and Australian retail markets (Broadley & Martin, (2017). The
organization has operations in energy and fertilizers, coal, industrial and safety products,
departmental store, convenience store, office supplies, liquor, hotels, supermarket business, etc.
According to Broadley & Martin (2017) the organization has 500,000 shareholders and over 220,
000 employees across New Zealand and Australia, and focuses primarily in the development of a
committed, loyal and trustworthy relationship with its shareholders, and provides high value to
them. Functioning with complete integrity and honesty and with an emphasis on environmental
protection, the company largely contributes to the overall prosperity and growth in the countries
it operates and has a high potential for growth in future. Wesfarmers completely devotes itself
towards its employees by providing them with the best working environment, and through the
provision of a positive reward system and opportunities for advancement.
General Environmental Analysis
Political
In the Australian retail industry, the political factors usually have a large impact.
According to Akbar & Ahsan (2014) increase in the domination and growth of business in large
Australian retail markets have stiffened the competition for other minor retailers. In an attempt to
control the market, the government has formulated policies and laws restricting monopoly and
protecting the rights of the shareholders. Additionally, the federal government has implemented

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similar decisions including the coal industry’s lucrative perspective, and the removal of interest
rate barriers on electricity, which has favored the company.
Economic
An organization’s economic factors which include inflation rate, exchange rates, and
interest rates can greatly affect an organization’s growth. Importantly, the service sector plays a
vital role in the Australian market, with a contribution of 71.1 percent to the country’s GDP
(Eichengreen & Gupta, 2011). The Australian market’s economic condition has greatly affected
the performance of the organization with respect to the demands of consumers and their behavior
of buying goods and services. The 2009’s global crises affected the behavior of the market
consumption which led to a reduced disposable income of consumers (Rudd, 2009).
Wesfarmers’s insurance market can enjoy a position which is more profitable in the Australian
market since service and finance are Australia’s important service organizations.
Social
Wesfarmers is a major employer and has a high number of employees and shareholders.
The company’s acquisition of Coles Group has enabled the company to target a larger
population. According to McGraw & Dabski (2010) Wesfarmers takes many initiatives in
Corporate Social Responsibility (CSR) and has strategies for engagement and employment with
the people of Aboriginal and Torres Strait Islander.
Technological
Across Australia, technology has been playing a vital role for business success. in order
to survive in the high competition, companies usually invest in smart store through ‘one shop’