Wesfarmers Strategic Analysis - Assignment
9 Pages3566 Words30 Views
Added on 2021-06-16
Wesfarmers Strategic Analysis - Assignment
Added on 2021-06-16
ShareRelated Documents
UNIT PROJECT: WESFARMERS IT, IS AND MANAGEMENT STRATEGYNameDate
WesfarmersIntroduction and Description of BusinessIT (information technology) and IS (information systems) as well as management structures have become important interlinked assets for organizations to drive their operations and achieve their business objectives and goals. It has also become an important tool for ensuring competitiveness of the organizations. The kind and type of IT and IS systems used by an organization are crucial for its success and ability to effectively compete in an increasingly competitive business environment. Further, it is an important tool for innovation and decision making. In this paper, the IT and IS systems used by Wesfarmers is described in detail. The paper starts by describing the nature of business Wesfarmers engages in, followed by a description of its IT and IS governance structures, policies and processes. The corporate and governance structures are also described. An analysis is done on whether the governance structures and policies reflect the regulatory requirements and howthe organization handles and mitigates risks. Possible improvements as well as impacts of external and internal changes are suggested within a two to three year horizon. WesfarmersThe company operates as Wesfarmers limited; it is an Australian Conglomeration with its headquarters in Perth. The company has its rots in 1914 when it was formed as a farmers’ cooperative and has since grown into one of the largest firms in Australia in the Western region, with diverse business interests mainly in Australia and new Zealand. The company has interests in diverse areas that include retail, fertilizers, chemicals, coal mining, industrial products, as well as safety products. As of 2016, Wesfarmers became the largest company in Australia having revenues of some $ 66 billion; it is also the biggest private employer in the whole of Australia and is listed with the ASX (Australian Securities Exchange). The company took over Coles in 2007 to enter into the retail business with its chain of stores specializing in fuel, hotels, liquor, supermarkets and convenience stores. Wesfarmers is also in the office supplies and home improvement business through its fully owned firm, Bunnings warehouse based in Australia and Office Works, based in New Zealand. It also runs department stores business in Australia that include Kmart and Target. Its industrials business include energy, chemicals and fertilizers. The firm operates coal plants in Australia where it mines and produces metallurgical coal that is exported to other countries. The firm also produces steamingcoal that is used in the generation of power in Australia as well as some for export. It is also involved in industrial and safety business in both Australia and new Zealand. Other business activities that the company is involved in include investments where it owns 505 of Gresham Partners, an investment firm as well as in Wespine which deals in timber. As such, Wesfarmers is a
company involved in many business sectors and with a large footprint in the Western hemisphere which has made it the largest company as well as the largest private employer. Governance Structures and Policies in PlaceBeing a conglomerate with several business interests, the company has a complex governance structure characterized by cross directorships, especially in forms that it has acquired. The companyhas a board of governors, below which there is the company senior management. The board has various committees that include a risk committee , an audit committee, a remuneration committee, and a nominations committee. The role of the board is the approval of strategic policies and directions for the group, and monitor and guide how Wesfarmers and its businesses are managed with the goal of achieving its strategic plans and ensure practice of good governance. The key responsibility of the company’s board is to enhance and protect the interests of its shareholders while also taking into consideration interests of other stakeholders that include customers, employees, the wider community, and suppliers. The Wesfarmers board is committed to the highest standards of governance practices and is also committed to enforcing a culture of compliance. The company has senior managers for each of the divisions/ units; their responsibility is to ensure that the companies objectives are met through the use of the company’s assets and resources to deliver returns. They are in charge of the day to day running of the company. Below the senior managers are other managers and then heads of departments, followed by supervisors and employees at the base of the organization ('Wesfarmers', 2017). The board is headed by a chairman, currently Michael Chaney who has been chair since 2015. The overall corporate management is under the Chief Executive Officer who is presently Rob Scott who is the managing director. Prior to being appointed the MD, he was appointed the Deputy Chief Executive Officer in early 2017. he had served as the MD of Wesfarmers Industrials since 2015. Rob, being the MD is the company’s chief executive officer and is responsible for the company's business and financial performance as dictated by the board. The MD reports to the board of directors and the chairman of the board. The MD formulates company policy and ensures they are successfully implemented to achieve business and company objectives. Other roles include directing strategy to achieve profitable business growth and company operation,developing strategic plans of operation that reflect the company’s long term objectives and prioritiesas set by the board, maintaining constant dialogues with the board chair, and implementing adequate financial control and operational planning systems. The MD/ CEO also ensures that operating standards and objectives of the company are understood and owned by other employees and management of the company ('Wesfarmers', 2017). The MD also monitors the financial and operating results of the company and benchmarks these against the budget as well as taking remedial steps where there is need to realign performance with
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
Accounting for Corporationslg...
|11
|3263
|54
Wesfarmers : A Retail Giant of Australialg...
|14
|2376
|373
Company Analysis: Wesfarmerslg...
|11
|2867
|458
Social Performance of WesFarmers - Assignmentlg...
|8
|2158
|154
Strategic Marketing Australia Research Paper 2022lg...
|12
|2673
|18
Principle of Financial Managementlg...
|5
|700
|239