Wesfarmers: Overview, Strategic Goals, Financial Management, and Budgeting

Running Head: WESFARMERS 0
Wesfarmers

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Table of Contents
Answer 1: Introduction..............................................................................................................2
Answer to question 2..................................................................................................................4
Question 3................................................................................................................................17
Question 5................................................................................................................................17
Part A...................................................................................................................................17
Part B....................................................................................................................................17
Part C....................................................................................................................................17
Part D...................................................................................................................................17
Question 6................................................................................................................................20
PART A................................................................................................................................20
PART 4 & 5.............................................................................................................................22
PART B................................................................................................................................22
Manager:..........................................................................................................................22
Topic:...............................................................................................................................22
References................................................................................................................................24

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Answer 1: Introduction
Name of the organization: Wesfarmers
The industry in which the Wesfarmers operates is the chemical and the fertilizers industry
(Wesfarmers, 2018).
Address and the contact details: Perth, Australia
Brief overview: Wesfarmers is basically the Australia’s largest listed company operating in
the diverse areas with the dynamic operations. It covers a wide variety of the services such as
office supplies, renovation of home, departmental stores, industrial divisions and business
and the energy and the chemicals along with the safety of the products. Wesfarmers is one of
the Australia’s largest employment base companies with 100000 employees and has a
shareholder base of approximately 495000 (Wesfarmers, 2018)..
Organization’s Vision, Mission and Values: The primary vision of the Wesfarmers is to
give the shareholders their momentum in the form of the return with the assistance of the
diversified portfolio and exceptional financial discipline.
The mission of the Wesfarmers is to promote the highly focused culture adherence to the four
most critical issues prevailing in the business such as integrity, openness, accountability and
boldness. Further, the mission statement of the Wesfarmers also includes the building of the
customer base and creating the long term value for the future of the Wesfarmers. The
communities are involved in minimising the impact on the environment by reducing the
emission intensity and the improving the resilience to climate change (Wesfarmers, 2018)..
The core values of the Wesfarmers include the inspiring working employees, trust and
challenge and the quality support to its customers, renewing the portfolio through the value
adding transactions (Wesfarmers, 2018)..

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Organisation’s strategic goals:
The main strategic goals of the Wesfarmers are outlined below
 Measuring the Performance
 Capital Efficiency ratios
 Delivering satisfactory returns to the investors and the stakeholders
Organizational chart showing key departments and positions
(Source: Wesfarmers, 2018).
Departmental chart showing key positions and team details

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Answer to question 2
1. The financial system refers to the system, which permits the funds exchange between
moneylenders, depositors, and mortgagors. The Financial systems work at national
level and international level. The financial system contains the difficult, closely
related service, marketplace, and organisations projected to provide the proper and
consistent connection between financiers and depositors (Dymski, Epstein and Pollin,
2016).
Internal factors and external factors have great influence on the financial system.
Owners of business cannot control external factors, but they should be capable to
expect and regulate to these elements to continue the companies on way. Though, the
owner of business and leader do have essential impact over internal elements, which
influence the business.
2. Cost of capital- cost of capital is useful for the company to decide whether the project
is worth the expenditures of means. It involves the cost of equity and cost of debt. It is
called opportunity cost of investing in businesses.
Capital structure- the capital structure is unpaid debt and equity of the company. The
capital structure permits the entity to know which type of funds of the entity uses to
finance whole actions and development.
PURCHASE LOGISTICS TECHNICAL ACCOUNTS
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Working capital- Working capital refers to an evaluation of the functional
effectiveness and the short-term economic health of the company. The working
capital shows that entity is capable to pay short-term obligations instantaneously.
3. Financial plan refers to the yearly forecast of incomes and expenditures for the entity,
branch, or section. The financial planning is important as it may also be the projection
of money requires and the decisions on how to advance cash like by issuing or
borrowing extra stakes in the entity (Hayden, 2016). Following steps are
recommended by Commonwealth Bank-
 Calculation of set-up cost
 Projection of profit and loss
 Projection of cash flow
 Projection of balance sheet
 Find Break even point
 Seeking expertise advise
4. There are various methods, which may be used for forecasting the financial data.
These methods are covered into two categories such as qualitative method and
quantitative method. These are as follows-
 Qualitative approach- it relies on the data, which may not really be evaluated.
This method is essential at the early level of products or the entity. The
examples of qualitative approach are time series method and casual method.
 Quantitative approach- historical data may be used as basis for analysis. The
examples are market research, Delphi method, and views of well-informed
person.
5. Role of Australian Competition and Consumer Commission (ACCC)- the main
liability of Australian Competition and Consumer Commission is to make sure that