Wesfarmers Plc: Business and International Management Analysis

Wesfarmer Plc
Business Management analysis
International Business analysis
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Executive Summary
In this report, Wesfarmers plc has been taken into consideration. It is analyzed that if
company could use its strategic analysis and effective business functioning then it could
easily expand its business on international level. The Wesfarmers Company could easily
increase its overall turnover by expanding its market share and expanding its business by
setting up the outlets in Singapore to sell cloths such as T- shirt, Jeans and other stuffs. The
Wesfarmers plc is indulged in retail business industry which is already showing good amount
of return on investment to company. However, clothing business industry is also showing the
positive amount of business growth if Wesfarmers plc diversifies its business.

Table of Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Description of Company....................................................................................................................3
Target country selected......................................................................................................................3
Target Market....................................................................................................................................3
Primary and entry strategy.................................................................................................................3
Sources used......................................................................................................................................4
Situational analysis................................................................................................................................4
Market analysis..................................................................................................................................5
Business Environmental analysis.......................................................................................................5
Political/Legal/Institutional Environments....................................................................................5
Regulatory Environment................................................................................................................5
Economic Environment.................................................................................................................5
Social and Cultural Environment...................................................................................................6
Demographic Environment............................................................................................................6
Technological factors.....................................................................................................................6
Natural Environment.....................................................................................................................6
Physical Environment....................................................................................................................6
Nature of demand..............................................................................................................................7
Estimate of the Size and Extent of Demand...................................................................................7
Product Category Stage of Product Life Cycle..............................................................................7
Cost structure of Industry..............................................................................................................7
Competitive structure....................................................................................................................8
SWOT analysis......................................................................................................................................9
Internal Company Strengths and Weaknesses...................................................................................9
External Market Opportunities and Threats.....................................................................................10
Implications of SWOT Analysis......................................................................................................10
Objectives............................................................................................................................................10
International objective.....................................................................................................................10
Market objective..............................................................................................................................11

RECOMMENDED MARKETING STRATEGY................................................................................11
Target Market identification and segmentation strategies................................................................11
Segmentation Strategy.....................................................................................................................11
Market positioning...........................................................................................................................11
Market Entry strategy......................................................................................................................11
MARKETING MIX STRATEGIES AND TACTICS.........................................................................12
PLANNING BUDGET........................................................................................................................13
Planning Assumptions.....................................................................................................................13
Forecast Sales..................................................................................................................................13
Forecast Profitability (or Break Even Analysis)..............................................................................14
IMPLEMENTATION AND CONTROL............................................................................................18
Formal Project Plan for Implementation of Recommendations.......................................................18
Formal Contingency Plans...................................................................................................................19

Introduction
Expanding business is very much required for the sustainable growth and effective
business strategies of the organization. It is analyzed that Wesfarmers could use the high
return of the clothing industry by setting up new outlets in Malaysia for selling cloths and
Jeans.
Description of Company
It is retail business organization which has been running its business on international level. It
is Australian conglomerate headquarter in Perth with interests predominantly in Australian
and New Zealand retail, chemicals, fertilisers, coal mining and industrial and safety products.
The total revenue of company is 6,844 billion AUD (2017) and share price of company is
currently traded at WES (ASX) A$ 49.45 -0.21 (-0.41%).
Target country selected
. It is analyzed that with the purchasing power of the people in Singapore, Wesfarmers could
easily offer high quality clothes to its clients irrespective of prices and costing of clothes in
market.
Target Market
With the changes in economic condition of the Singapore, people in Singapore are more
inclined towards the high quality fabrics and cloths in their wearing. The target market would
be clothing business industry which will assist organization to grab the potential clients and
increase its overall sales.
Primary and entry strategy
The primary and entry strategy of Wesfarmers could be to enter into Joint venture strategic
alliance with other organization which will assist company to comply with the all the
applicable rules and regulations in new Singapore market (Bocken,. de Pauw, Bakker, . and
van der Grinten, 2016).

Sources used
Wesfarmers could use the primary and secondary sources to manage its business. The
primary data such as questionnaire, meeting and observation could be used by Wesfarmers to
identify the potential demand and rival’s offering in market. However, journal articles,
documents and official gazettes could be used by company to analysis the market share and
technologies used by other companies in selling cloths such as t-shirt, jeans and other outfits.
Source: https://www.google.co.in/url?
sa=i&source=images&cd=&cad=rja&uact=8&ved=2ahUKEwjDqZqstaXcAhUPfH0KHX1lB
wwQjRx6BAgBEAU&url=https%3A%2F%2Fwww.theaustralian.com.au%2Fbusiness
%2Fcompanies%2Fwesfarmers-savaged-as-coal-target-weigh-on-profits%2Fnews-story
%2F7b9f4246d695bc1d451c489ccef4d764&psig=AOvVaw3SsOqedhbuYcXm-
PaM01ZO&ust=1531892202546541
Situational analysis
This analysis is used to analysis the market factors and undertaken strategic program
accompanied with the strength of company.