Internal and external analysis of Wesfarmers Company

Running head: Strategic Information System 1
Strategic Information System
Internal and external analysis of Wesfarmers Company

Strategic information system 2
Contents
Overview..........................................................................................................................................3
Part 1 (external analysis).................................................................................................................3
Business background.......................................................................................................................3
Industry evaluation..........................................................................................................................3
Environmental analysis....................................................................................................................3
Porter’s five forces...........................................................................................................................4
Competitive environment................................................................................................................5
Opportunities and threats.................................................................................................................5
Part 2 (Internal Analysis).................................................................................................................6
Firm’s resources...............................................................................................................................6
Core competencies of the company.................................................................................................6
Capability analysis...........................................................................................................................6
Suitable information system............................................................................................................6
Evaluation of the system and recommendation...............................................................................7
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

Strategic information system 3
Introduction
The competition has increased in every field due to amendments in the technology and increased
demand of the customer towards providing the services as per the latest trend. The main aim of
this report is to provide the depth information about the internal and external analysis of the
company. The report will entail various frameworks in order to elaborate on the internal and
external factors.
Part 1 (external analysis)
Business background
Wesfarmers is the conglomerate company whose headquarter is situated in Perth. The
organization was introduced in 1914 with merchandise of agriculture. It has been found that the
company was providing diversifying of the product lines in starting. The products such as forest
products, hardware,and home improvement products were offered by the company in beginning.
The retail business was started in 2007 in which the company divided the retail business into two
segments (Wesfarmer, 2018). One segment is related to the retail business and the other one is
related to remaining operations.
Industry
It has been found in the context of the retail industry that the scope of the retail industry is wide
in the market of Australia as this industry is faced an affirmative growth. The role of the
economic recovery was huge in the contribution to the retail industry. As consequences of these
criteria, the bonding of the retail companies and the consumers has become stronger. It has been

Strategic information system 4
analyzed that the customers of Australia like to our chase the local products, but there isa number
of overseas companies that offering various products online. This has become the major reason
of amplifying the intense competition for the domestic retailers of the country (Sutton-Brady,
Kamvounias and Taylor, 2015).
Environmental analysis
Political/ legal factor
The impact of political factors over the retail industry of Australia is huge as increasing business
such as retail supermarkets like Wesfarmers have made competition for smaller retailers and that
is why confine the government to bring with required policies. In the context of the legal factor,
it has been found that the implication of legal in the level of the carbon emission limit has
become the reason of restriction of some industries involving Wesfarmers across Australia.
Economical
The performance of the Wesfarmers gets affected due to amendments in the economic condition
of Australia regarding buying behaviour and customer demand. The market consumption
behaviour is affected due to the global crisis in 2009.
Social
Wesfarmers has a number of employees along with shareholders within the company as it is the
acquisition of Coles Group that has been capable to target a huge population of around 22
million. The company has taken various steps in order to society upliftment and made employee
engagement strategies with Aboriginal and Torres Strait Islander people