Analysis of Wesfarmers: Overview, Performance and Recommendations

This report covers a study about the Wesfarmers that is an Australian organisation. The business analysis is done regarding all the activities considering the market involvement by the organisation. The second section covers the analysis of performance on behalf of various factors. The last part covers the recommendation that helps in overcoming from the failures.

Introduction of management

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Table of Contents
Introduction................................................................................................................................1
Overview of the company..........................................................................................................1
Performance...............................................................................................................................1
Recommendations......................................................................................................................3
Conclusion..................................................................................................................................4
References..................................................................................................................................5

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Introduction
Wesfarmers is a retail organisation that has production in every sector from coal
mining’s to safety products distribution. The company has approximately 800 Cole’s
supermarkets, 890 liquor stores and many outlets all over the world. The company was
founded in 1914 ad is based in Perth, Australia. The purpose of this report is to carry the
analysis about Wesfarmers. This report covers the overview of the company along its services
and products it delivers to costumers. The second sections cover the performance analysis
from different perceptive. Some of the recommendations have been provided that could be
used by the company so that it gains benefits.
Overview of the company
The company selected from this assignment is Wesfarmers. It is one of the largest
retail industries in Australia. The company has also expanded in other sectors like in
chemicals, fertilisers and many others (Connell, 2016). They focus on delivering diverse
services with the motive of offering satisfactory return to the stakeholders linked with them.
Apart from Australia, Wes farmers deliver its services in New Zealand, Ireland, UK and
many other countries. The diversified business operations cover the range from various
convenience stores, department stores and home stores(Sedera, Gronau and Sumner, 2015) .
The industrial sector is also divided in chemicals, energy and fertilisers, industrial and safety
products and coal. It is one of the largest private sectors that have base shareholders of
around 530,000.
Performance
When analysing the performance it was found that Wesfarmers enjoy high growth rate
in the market. There are around 400,000 shareholders that are linked with the company. They
have gained global expansion due to diversified services(Connell, 2016) . The performance
has been enhanced and it has maintained its brand image. The reputations of Wesfarmers
have been maintained due to its Cole industry(Sedera, Gronau and Sumner, 2015) .
From the research it was found that, Wesfarmers have made their operating revenue
of 1.12 billion by earning huge profit. It was recorded that despite of increase in competitors
in the market and pressure in the market, Wes farmers have still made it place. It can be said

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that Wes farmers is one of the largest private organisation in Australia. With growing of time,
the number of shareholders is also increased of the company. It has made a good market
place after Woolworths in the supermarket retail stores(Waterlander, Luiten, Eyles and
Steenhuis, 2016) . Apart from that Wesfarmers have also beaten Woolworth in terms of
discount departmental store.
From the study, it was found that Wesfarmers also struggled in terms of efficient
workers and effective management department. The company faced issue because of
inefficient utilization of resources that brought financial shortcomings(Wu, Straub and
Liang, 2015) . But Wesfarmers have expanded in all the sectors from common departmental
sores to industrial products. It has proved to be beneficial in terms of rural communities. The
reason of success of Wesfarmers is that company has undertaken a culture that empowers the
employees and encourages them to gain better innovation. The market value is also
maintained by offering fair wages to the employees by offering dividend to its
shareholders(Moore, Guiver,Woollacott, de Klerk and Gidding, 2016) . From the research,
the financial statements of the company were found and it was analysed that financial
strength of the company declined in 2015. The overall objective of the company is to operate
in a safe and a sustainable way.
It is successful because of its new strategies and innovations that have helped in
gaining profit in the company(Grimmer, 2017) . Thus, to maintain the performance
innovative steps need to be taken regularly so that negative impact on the organization could
be reduced. They have managed al the operations in an effective way. The staffs make sure
that all the operations of Wes farmers are managed(Pulker, Trapp, Scott and Pollard, 2018) .
The performance is also affected by the domestic economic conditions as it is Australia’s
largest corporation that has diversified operations in retail, resources and industrial products
too. The primary segment for the company is retail sector that covers various segments like
Coles, Bunnings, Officeworks, Target and Kmart(Fathima, Blyth, Lehmann, Lim, Abdalla,
de Klerk and Moore,2017) . Coles contributes maximum in the performance of the company
and it can is said as main determinant of value of WES’s. Its half of the profit is gained from
Coles that has raised profitability in the market.

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Recommendations
It is found that Wesfarmers have extensive range of services in diversified fields. But
it was seen that business is not making profit in all the sectors. Thus, Wesfarmers should
make sure that profit can be achieved in all the sectors but not just focusing on a single
sector. From all the above analysis, it was found that Wesfarmers have faced many
shortcoming and difficulties in financial terms. Thus, it is recommended that organisation
should focus more operating cost so that overall expenses could be reduced so that sale of the
company is increased. Apart from that, all the resources and assets of the organisation should
be used effectively. To gain success organisation should focus more on the productivity that
will be gained by improving customer’s satisfaction. It is suggested that returns should
balance the profit margins.

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Conclusion
This report covers a study about the Wesfarmers that is an Australian organisation.
The business analysis is done regarding all the activities considering the market involvement
by the organisation. The second section covers the analysis of performance on behalf of
various factors. The last part covers the recommendation that helps in overcoming from the
failures. Wesfarmers has diversified its services in many sectors and is one of the largest
industries in Australia. It was found that Wesfarmers have still made it place in the market
despite of increase in competitors and pressure.

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References
Connell, M.F., 2016. An exploratory study to understand how corporations align financial
and moral-based goals to achieve effectiveness: Introducing the common good theory of
organizational effectiveness (Doctoral dissertation, Queensland University of Technology).
Fathima, P., Blyth, C.C., Lehmann, D., Lim, F.J., Abdalla, T., de Klerk, N. and Moore, H.C.,
2017. The Impact of Pneumococcal Vaccination on Bacterial and Viral Pneumonia in
Western Australian Children: Record Linkage Cohort Study of 469589 Births, 1996–
2012. Clinical Infectious Diseases, 66(7), pp.1075-1085.
Grimmer, L., 2017. Is it so hard to say sorry? Revisiting image restoration theory in the
context of Australian supermarkets. Asia Pacific Public Relations Journal, 18, pp.17-32.
Moore, H.C., Guiver, T., Woollacott, A., de Klerk, N. and Gidding, H.F., 2016. Establishing
a process for conducting cross‐jurisdictional record linkage in Australia. Australian and New
Zealand journal of public health, 40(2), pp.159-164.
Pulker, C.E., Trapp, G.S.A., Scott, J.A. and Pollard, C.M., 2018. What are the position and
power of supermarkets in the Australian food system, and the implications for public health?
A systematic scoping review. Obesity Reviews, 19(2), pp.198-218.
Sedera, D., Gronau, N. and Sumner, M. eds., 2015. Enterprise Systems. Strategic,
Organizational, and Technological Dimensions: International Workshops, Pre-ICIS 2010, St.
Louis, MO, USA, December 12, 2010, Pre-ICIS 2011, Shanghai, China, December 4, 2011,
and Pre-ICIS 2012, Orlando, FL, USA, December 16, 2012, Revised Selected Papers (Vol.
198). Springer.systems. Journal of Computer Information Systems, 57(2), pp.169-178.
Waterlander, W.E., Luiten, C.M., Eyles, H. and Steenhuis, I.H., 2016. Response to two
Letters to the Editor: we maintain that ultra-processed supermarket foods are less healthy
than their minimally processed counterparts. Public health nutrition, 19(3), pp.571-573
Wu, S.P.J., Straub, D.W. and Liang, T.P., 2015. How information technology governance
mechanisms and strategic alignment influence organizational performance: Insights from a
matched survey of business and IT managers. Mis Quarterly, 39(2), pp.497-518.