Building and Sustainability Report: Risk, Innovation, and Management

This report provides an in-depth analysis of Wesfarmers Limited, focusing on its approach to risk management, innovation, and sustainability within its business operations. The report explores Wesfarmers' preparedness to take risks for achieving its goals, the necessity of risk for change and innovation, and the company's strategies for handling failures and mistakes. It examines how the organization fosters employee contributions, the role of frontline managers in supporting innovation, and the work conditions that promote creativity. Furthermore, the report addresses barriers to innovation, leadership by example, employee training, and the importance of assessing management approaches. It also covers the organization's physical environment's impact on innovation and outlines relevant legislative frameworks. The analysis highlights Wesfarmers' commitment to sustainability, emission reduction, and managing climate change-related risks. The report also examines how innovation can be implemented and managed in the workplace and how managers can lead by example. Overall, the report offers valuable insights into Wesfarmers' strategies for adapting to change and maintaining a competitive edge.

Running head: BUILDING AND SUSTAINABILITY
Building and Sustainability
Name of the Student:
Name of the University:
Author Note:

2BUILDING AND SUSTAINABILITY
Table of Contents
Introduction......................................................................................................................................4
Is Wesfarmers Limited ready to take risks in order to be successful?.............................................4
Why is the idea of risk necessary to change, innovation and the marketplace achievement of
organizations?..................................................................................................................................4
What is the organization’s approach toward failure, mistakes or lack of success at the
organizational level and the individual or entity level?...................................................................5
How does this make employees feel with view to making suggestions, proposing new ideas or
attempting to expand new products, services or markets?..............................................................6
How far mistakes can be viewed if organization is to proactively maintain innovation and
change?............................................................................................................................................6
How can frontline managers encourage and support employees so that they contribute new and
innovative ideas?.............................................................................................................................7
What kinds of work conditions and procedures are in place or should be in place to support
innovation?......................................................................................................................................7
What barriers to innovation exist within the organization?.............................................................8
How can managers lead by example when it comes to innovation?...............................................8
What training or learning opportunities might be provided so that employees can develop
appropriate innovation skills?..........................................................................................................9

3BUILDING AND SUSTAINABILITY
Why should managers should frequently assess their own approaches for constancy with the
wider organizational or project circumstance?................................................................................9
How does the organization’s physical environment support innovation? How might it need to be
changed?........................................................................................................................................10
Outlining any legislative framework that impacts on operations in the relevant workplace context
.......................................................................................................................................................10
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12

4BUILDING AND SUSTAINABILITY
Introduction
The main purpose of the assignment is to conduct a study on a company named as
Wesfarmers Limited that is based in Australia and listed in Australian Stock Exchange
(Wesfarmers.com.au. 2017). The present segment elucidates on understanding whether
Wesfarmers Limited are prepared to take risks and prone to innovation and change management
in their business operations. The current segment properly explains about the concept of risk and
how it should be managed in an effective way in the business operations in the recent
competitive world. The Management of Wesfarmers Limited has reported lines of authorizes and
responsibilities that takes into account guidelines as well as limits for getting approval for all the
expenditures that include capital expenditures, contractual commitments and investments at the
same time (Westland 2016).
Is Wesfarmers Limited ready to take risks in order to be successful?
Wesfarmers Limited is prepared to take risks for attainment of future goals and
objectives. The company is committed towards identifying, monitoring as well as managing
material business risk that links with the business activities. Wesfarmers Limited has adopted
management framework as well as reporting systems that has wide range of risk management
controls (Sullivan and Gouldson 2017).

5BUILDING AND SUSTAINABILITY
Why is the idea of risk necessary to change, innovation and the marketplace achievement
of organizations?
Risk cannot be avoided completely but strategies can be taken by the management to
minimize the risk as far as possible. Managing Director of Wesfarmers Limited is of the opinion
that innovation is the cornerstone in their business operations. The company encourages as well
as support innovation as it is critical to the business and they have received innovation awards
for recognizing people and teams for practical realization of implementing new ideas, methods or
devices as it improves final business outcomes (Rowe et al. 2014). Changes adopted by
Wesfarmers Limited will help in streamlining the reporting as well as decision-making structure.
What is the organization’s approach toward failure, mistakes or lack of success at the
organizational level and the individual or entity level?
The management of Wesfarmers Limited believes in positivity while dealing with
business operations (Nobes and Stadler 2015). The constant growth as well as expansion of the
business works into diverse sectors of company supply chains that have marked Wesfarmers
Limited as a model for enterprises in and across the world. It was quoted by industry analysts
that Wesfarmers Limited has proven to be so successful in their operations and it is the secret
behind the company’s financial success (West and Bogers 2014). The company had
demonstrated its innovative supply expertise as they have introduced Blackwood’s sector for
standing as a single source supplier for all inventory related activities. The management team of
Wesfarmers Limited is continuously developing excellence in its ability for staying one-step
ahead of the evolution in the retail industry. The company embraces business to business as well

6BUILDING AND SUSTAINABILITY
as internal ordering solutions for meeting the needs of long-term demands of both clients and
partners (Murray 2014).
How does this make employees feel with view to making suggestions, proposing new ideas
or attempting to expand new products, services or markets?
The new products and services developed by Wesfarmers Limited are properly advertized
so that people are aware of the new offerings. Transparent communication should be used within
the business where employees are free to express their views and opinions to the immediate
senior management. Grievance addresal is other way to listen to the problem of the employees
and making ways to solve it as far as possible (Murray 2013).
How far mistakes can be viewed if organization is to proactively maintain innovation and
change?
Any change and innovation activity is risky but organization should plan for minimizing
the risk as far as possible (Klettner, Clarke and Boersma 2014). Change is not predictable and
can be either good or bad for the company but efforts need to be made to plan for innovation. It
is proven that Wesfarmers Limited deliver improved business performance as well as lead
change through building great teams within the business operations. The company had been
grounded by rich culture as well as focus mainly on sustainable shareholder returns. The
Managing Director of Wesfarmers Limited was proud in announcing that the company is looking
forward for building on the attainment of his predecessors. The main approach of the company is
to provide teams to innovate as well as develop world class business. It is all about building high

7BUILDING AND SUSTAINABILITY
performing teams as well as maintaining regimented approach for capital allocation in the
upcoming financial year (Kilroy and Schneider 2017).
How can frontline managers encourage and support employees so that they contribute new
and innovative ideas?
It is known that creativity as well as innovation helps in fueling new products as well as
services and even the strategies (Klettner, Clarke and Boersma 2014). The frontline managers
encourage employees who are working for the company in order to contribute for any new
innovative ideas. The frontline manager needs to give employees a reason to care to undertake
decisions as well as taking actions. From the viewpoint of employees, it encourages them to
contribution for innovation practices. It is important to identify most of the significant
differences between Chief Executives as well as employees. The frontline managers need to
agree on clear targets, encouraging and support innovation as well as giving appropriate
autonomy and recognizing contributions. It is important for the frontline managers to undertake
risks and taking no-blame approach in the most appropriate way (Hubbard, Rice and Galvin
2014).
What kinds of work conditions and procedures are in place or should be in place to
support innovation?
Creativity and innovation are two components that are mostly adopted by organization at
rapid pace (Holden, Linnerud and Banister 2017). Companies are making an effort to constantly
look for talent. This can be done by hiring talented people as it is one of the steps for cultivating
an innovative as well as creative environment. It is important to understand the fact that building

8BUILDING AND SUSTAINABILITY
a workforce where there is constant exchange of idea that takes into account finding the right
formula for the given company and their culture. Creativity cannot be forced by any chance but
the right to putting the team in the right frame of time help in finding imaginative solutions in the
most appropriate way (Klettner, Clarke and Boersma 2014).
What barriers to innovation exist within the organization?
There is no barrier to innovation takes place at Wesfarmers Limited as the company is
always ready to develop longer as well as deeper relationships with the suppliers. By this action,
suppliers are encouraged to invest in the business and his result in giving proper opportunity for
collaboration or emphasis upon quality as well as efficiencies and product innovation (Griggs et
al.2013).
How can managers lead by example when it comes to innovation?
The leader is the person who is followed by the team members for the good deeds (Goffin
and Mitchell 2016). As a leader in the business, it is essential to convey the right message to the
employees, customers as well as business partners so that there is no confusion at all. It is
expected from the staff members and the people that the leaders will lead the team in an effective
way at workplace. A leader should know to share the credit as it is known that they cannot
succeed by working alone forever. It is because of collaboration as it the key to success. The
leader should distribute the credit as well as praise employees for their hard work. It is important
for a leader to listen to people and become a better listener. They should be patient and listen to
each of the fact pointed out by the employees (Klettner, Clarke and Boersma 2014).

9BUILDING AND SUSTAINABILITY
What training or learning opportunities might be provided so that employees can develop
appropriate innovation skills?
Training should be provided to the employees to develop sense of creativity as well as
innovation and leadership capabilities (Gitman, Juchau and Flanagan 2015). Innovation is the
main key where the future success can be judged for the company as well as global race for the
innovation is getting intense at the same time. Innovation workshop conducted for the employees
need to be inspiring as well as engaging because it will guide the employees to learn various
skills to discover the possible power of minds and show how to lead the product innovation for
attainment of future goals and objectives, Nowadays, company struggle very hard to bring
together creativity as well as business insights. There are various well thought out as well as field
tested ways where it help in thinking more about the aspect in a creative and visual ways. These
actions will guide companies where it is imagined that the business points out that customers
demand to be met in new ways (Klettner, Clarke and Boersma 2014).
Why should managers should frequently assess their own approaches for constancy with
the wider organizational or project circumstance?
It is essential for the managers to evaluate their own approaches for consistency with the
wider organizational or project context (Damanpour et al. 2014). The adopted approach by the
managers need to be consistent by nature as it help in maintaining strategy as well as evaluation
in the most appropriate way. The objectives of the innovation need to be specific that links from
the perspective of wider organizational context. Regular evaluation of approaches can be done by
the managers by talking to all the shareholders and figuring out what should be the outcome of
each of the experts for given span of time. It is important for the manager to identify how the

10BUILDING AND SUSTAINABILITY
outcomes need to be aligned with the organization business strategy in an effective way
(Klettner, Clarke and Boersma 2014).
How does the organization’s physical environment support innovation? How might it need
to be changed?
Wesfarmers strive best to reduce the emissions intensity in the business by bringing
improvement in their resilience to climatic change (Biddle 2016). By using this, historical
environmental performance can be managed and align with the innovation activities and support
innovation at the same time. Wesfarmers Limited is proactive towards managing risks that is
associated to align with the climate change. This is because of the reason why delivering
significant benefits is necessary be it economic, social and environmental and economic. The
company even acknowledges change management and affects it had on the customers, economy
as well as operations and the community it operates in (Akbar and Ahsan 2014).
Outlining any legislative framework that impacts on operations in the relevant workplace
context
The Risk Management Framework of Wesfarmers Limited had been reviewed by the
Board on annual basis as well as was approved in the year 2017. In this given framework, details
had been provided that has overarching risk management controls that take into account risk
management process as well as procedures and reporting systems. In this legislative framework,
it properly explain about the code of conduct, a formal corporate planning process, group
policies and procedures for managing the financial risk and treasury operations like exposure to
foreign currencies as well as interest rate movements (Beech and MacIntosh 2017).

11BUILDING AND SUSTAINABILITY
Conclusion
From the above analysis, it is noted that Wesfarmers Limited is prepared to take risks and
changes in positive ways where efforts are taken by the management for constant improvement
in ideas and innovative activities in the business operations. Innovation is prevalent at
Wesfarmers Limited and even constant evaluation had been done on annual basis by the Board in
case any changes are needed for a given period of time. The management of Wesfarmers Limited
had planned out a formal corporate process that need every division for assessing the trends that
are likely to affect as well as shape the industry for performing scenario planning and preparation
of SWOT analysis that brings out the strengths, weakness, opportunities and threats. The group
policies of the company brings out the financial risk and treasury operations that takes into
account exposures to foreign currencies as well as interest rate movement.

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Reference List
Akbar, S. and Ahsan, K., 2014. Analysis of corporate social disclosure practices of Australian
retail firms. International Journal of Managerial and Financial Accounting, 6(4), pp.375-396.
Beech, N. and MacIntosh, R., 2017. Managing change: enquiry and action. Cambridge
University Press.
Biddle, I., 2016. The Wesfarmers/Woolworths duopoly war: The Bunnings vs. Masters
battle. Busidate, 24(3), p.3.
Campbell, J., 2017. Insights from the company monitor: Wesfarmers. Equity, 31(8), p.16.
Damanpour, F., Walker, R.M., Chen, J. and Aravind, D., 2014, January. A Quantitative Review
of Research on Performance Effects of Management Innovation. In Academy of Management
Proceedings (Vol. 2014, No. 1, p. 11670). Academy of Management.
Gitman, L.J., Juchau, R. and Flanagan, J., 2015. Principles of managerial finance. Pearson
Higher Education AU.
Goffin, K. and Mitchell, R., 2016. Innovation Management: Effective Strategy and
Implementation. Palgrave Macmillan.
Griggs, D., Stafford-Smith, M., Gaffney, O., Rockström, J., Öhman, M.C., Shyamsundar, P.,
Steffen, W., Glaser, G., Kanie, N. and Noble, I., 2013. Policy: Sustainable development goals for
people and planet. Nature, 495(7441), pp.305-307.