Strategic Information System for Wesfarmers: Internal and External Analysis

Wesfarmers
strategic information system for business and enterprise

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Table of Contents
Introduction................................................................................................................................2
Part1- External Analysis............................................................................................................2
Business Background.............................................................................................................2
Type of industry.....................................................................................................................3
Environment Analysis of Wesfarmers in General..................................................................3
Industry environment..............................................................................................................4
Competitive environment.......................................................................................................5
Opportunities and Threats......................................................................................................5
Part 2- Internal analysis and proposal........................................................................................6
Identifying the capabilities.....................................................................................................6
Core Competency Analysis for Wesfarmers..........................................................................6
Information system solution proposal for Wesfarmers..........................................................7
Evaluation...............................................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

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Introduction
Strategic information system for business and enterprise are developed so that quick
response is taken. It is a feature that helps in managing all the process and then recognizing
the opportunities so that improvement could be done. It can be seen as an analytical tool for
an organisation that allows them to improve all the operational efficiency. Strategic
information system helps in implementing all the business strategies so that maximum
profitability can be made. It is an integrated part of an organisation that helps in making
corporate decision. In this report, the internal analysis as well as external analysis is carried
out that helps in understanding all the business operations in detail. It is true, that every
business performs set of rules to perform certain activities so that objective could be
achieved. To execute all the business operations, every organisation requires some strategic
information system (Willis, et. al, 2018). It supports organisation to gain competitive
advantage by using strategic information system as it moulds all the operations and
functionalities so that good brand image is achieved in the target market. In this report, the
entire focus is on the functionalities of Wesfarmers in relation with usage of strategic
information system. The internal and external analysis that is followed helps in achieving the
objective. Wesfarmers is one of the leading organisations in Australia. It has expanded its
services in all the sectors Along with this, strategic information system helps in capturing the
target market so that production cost could be lowered down, this will help in enhancing the
productivity as well as demand and sales in the marketplace.
Part1- External Analysis
Business Background
The organisation that is selected in this report is Wesfarmers; it is one of the largest
Australian companies. Wesfarmers have diversified their services in every field from retail
stores to selling their products in a wholesale market. They sell chemical products, coal
mining products, daily products to safety and industrial products. It has around 220,000 staffs
with more than 550,000 shareholders. The company was initially offered services to
Australian farmers in 1941 (Willis, et. al, 2018). Later, the services got expanded in every
sector and now it is listed as one of the Australian stock exchange. Wesfarmesr was started o
the demand of rural workers to support the community of farmers. In 1914 it got registered in

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Westralian farmers limited and started trading with the intention to grow and take co-
operative actions for farmers. Later, in year 2017 it was found as one of the target company
in Australia than proved to generate majority of income from the grocery and supermarket
store. In 2017 the company generated total revenue of $68,732,000,000 including sales and
other revenue (Pulker, Trapp, Scott and Pollard, 2018). In 2017 Wesfarmers Limited had
approximately 223000 employees that cover employees from all subsidiaries under the
company's control. It owns a diversified portfolio in the supermarket including the hardware,
processing and energy distribution, coal mining, chemicals and fertilisers. The retail division
is divided into the Coles, Kmart and other target companies. It holds its resources in various
country which produces steaming coal for domestic and export market.
Type of industry
Wesfarmers operates in many sectors and the industry can be said as a retail sector.
Wesfarmers is one of the largest retail industries in Australia as it covers both trading and
non-trading service. This industry has high profit as it contributes in economic growth of an
organisation. It is a retail industry that has higher demand as compared to other industries.
Thus the reason behind the expansion of Wesfarmers is the industry. It helps in linking
strategic system with business strategies so that business can gain new capabilities so that it
can gain competitive advantage (Pulker, Trapp, Scott and Pollard, 2018).
Environment Analysis of Wesfarmers in General
The environmental analysis is carried out by considering economic, physical, sociocultural,
global, technological, political/legal and demographic factors of the company. Discussing all
the factors and its effects:
 Economic- The service and offers offered by Wesfarmers affects the sale of other
companies like Kmart, Coles and target. The economic condition of the country was
improved due to the sale and demand of Wesfarmers (Lim, Blyth, Fathima, de Klerk
and Moore, 2017). The profit margins gained by the company affects the overall
success.
 Physical- The physical factors covers the variation in business practices and
consumer behaviour (Ogiela, 2015). Wesfarmers have worked on such barriers so that
better service can be offered to the customers.
 Socio-cultural- With changing time the standard of living and demands of Australian
people have changed (Lim, Blyth, Fathima, de Klerk and Moore, 2017). Thus, with