Assessing the Impact of Globalization on Wesfarmers' Operations

This report examines the impact of globalization on Wesfarmers, an Australian supermarket chain. It explores how globalization influences the company's business strategies, including market expansion, consumer demand, and ethical considerations. The report identifies both challenges and opportunities arising from globalization, such as increased competition, the need for technological advancements, and the importance of effective communication. It also discusses the importance of adapting to changing consumer preferences and maintaining ethical standards in a globalized market. The report provides recommendations for Wesfarmers to navigate the complexities of globalization and maintain a competitive edge. The study emphasizes the need for innovation, improved communication strategies, and maintaining product variety to ensure sustained business success in a globalized environment.

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IMPACT OF GLOBALIZATON ON WESFARMERS
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1IMPACT OF GLOBALIZATON ON WESFARMERS
Executive Summary
For managing the business and the stakeholders it is required to do internal and external
communication. Internal communication includes managing of the employees in the
organization. On the other hand external communication includes managing of the consumers
and reaching to the consumers through different ways. The happening of the globalization has
changed the business situation. This also changes the demand of the consumers. The main
objective of this paper is to evaluate the changing situation of the business in the era of
globalization and the company chosen company in this context is Wesfarmers. Wesfarmers is an
Australian supermarket which plays an important role in the business situation of Australia.

2IMPACT OF GLOBALIZATON ON WESFARMERS
Table of Contents
1.0 Introduction...........................................................................................................................3
2.0 Discussion.............................................................................................................................4
3.0 Conclusion............................................................................................................................7
4.0 References.............................................................................................................................9

3IMPACT OF GLOBALIZATON ON WESFARMERS
1.0 Introduction
1.1 Background
Wesfarmers is a supermarket in Australia. Currently the organization has 220,000
employees in the organization. In the current year the company is running in the
profit. The company has been established in 1914 and is making a noticeable
presence in the food and beverage market in Australia.
1.2 Problem
The main problem the organization is facing is regarding the changing of the
business situation of the organization. Due to the globalization the demand of the
consumers are changing. In this context the company is facing problem regarding the
demand of the consumer (Austin &Pinkleton, 2015). The organization is uncertain
regarding the requirement of the consumers. This is making the constraint regarding
the development of the business of the Wesfarmers.
1.3 Purpose of the report
The main objective of this paper is to evaluate the different aspects of the
globalization and its impact on Wesfarmers. The paper will evaluate different
challenges and opportunities for the expansion of the business(Wirtz, Pistoia, Ullrich
&Göttel,2016). This evaluation will help to identify the opportunities for the
organization. Apart from that the identification of the problems in the organization
will help to mitigate those issues. All these factors will be helpful for the proper
expansion of the business for Wesfarmers.

4IMPACT OF GLOBALIZATON ON WESFARMERS
2.0 Discussion
1.4 Impact of the globalization on Wesfarmers;
The globalization has both positive and negative impact on the growth of the
business. Due to the globalization the company can expand the business outside of
Australia. In this case the organization can collaborate with other companies for the
expansion of the business. There can be some issues regarding the expansion of the
business in this context. Different countries has different rules and regulations
regarding doing of the business (Johannsen,2018). These rules many not cooperate
with the existing business policies of the company. I this context the organization is
needed to improvise the business conditions so that it can cooperate with the rules and
regulations of the other countries.
The consumers are one of the important stakeholders of the company. Wesfarmers
is aware about this fact (Giddens,2018). The organization has notices the change in
the demand of the consumers. In this case the company is trying to reach to the
consumers through different social and media platforms (Campbell, 2017). This is
helping Wesfarmers to get more expose to different types of customers which leads to
the increasing of the customer base. Apart from that the organization is making the
use of the different technology for reaching and providing better service to the
existing consumers.
1.5 Globalization and moral values:
Expansion of the business in other countries is a positive part of globalization. In
this context, in order to perform well in the competitive market of other countries, the
business situation of that region is needed to be understood. In this context

5IMPACT OF GLOBALIZATON ON WESFARMERS
Wesfarmers has seen that economic and political situation of the respective countries
also affect the business condition (Wesfarmers,2018). Some of the countries do not
have the proper economic condition. In this context, people of that respective region
will not have the proper economic conditions to buy luxury goods from the super
markets. Moreover maintaining ethics and moral value while doing business in the
different countries and managing the business are important factor (Flew &
Waisbord, 2015). Wesfarmers is needed to be concerned about these factors while
expanding the business in other countries.
1.6 Maintaining the communication in the era of globalization:
Maintaining the communication for between different stakeholders is important
for proper management of the business. In this context, it can be said that the
communication for doing business has been changed due to the globalization
(Eriksen, 2015). Different countries has different cultures. In this context, the
communication with the consumers becomes difficult. Some of the countries have put
restrictions on different communication channels. In this context the organization
cannot use those channels for reaching to the consumers. The organization needs to
be innovative in order to reach to the consumers in this situation. Apart from that
different surveys are needed to be done through online platforms to understand the
purchasing power and the requirements of the consumers. This can be considered as
one of the challenge in the external communication.
1.7 Challenges and the opportunities due to the globalization and its impact on
Wesfarmers:

6IMPACT OF GLOBALIZATON ON WESFARMERS
There are several challenges and the opportunities for the Wesfarmers those are
raised due to the globalization. In this context the organization is needed to take some
steps for the mitigation of the challenges raised due to the globalization and can
exploits the opportunities for the improvement of the business (Cardon,2014). Some
of the challenges for the Wesfarmers in this context is the presence of the new
companies in the market. Earlier Wesfarmers has the unique nature of doing business
which helps to draw the attention of the consumers (Gillespie & Riddle, 2015).
However, in recent years, many organizations are investing money for the
development of the supermarkets like Wesfarmers. In some cases they are also
providing better customer service compared to the Wesfarmers. Wesfarmers is losing
the base of the customer due to this reason. Another important factor regarding the
development of the business in the globalization is the price of the products (Men,
2014). The globalization is reducing the monopoly condition of the market. in this
context, the consumers are getting more options for buying in reasonable price. It can
be assumed from the situation that the consumer will prefer those products with lower
price. Moreover the quality of the product is also important. In this context the main
challenge for Wesfarmers is to provide the quality products with maintaining the
reasonable selling price. Moreover, the organization can deploy advanced
technologies in order to enhance the productivity along with the quality (Scheve &
Slaughter,2018). All these factors will help the organization to improve the business
condition of the organization. Apart from that Wesfarmers can also improve the
communication with the existing customer base and create new base of the
consumers.

7IMPACT OF GLOBALIZATON ON WESFARMERS
3.0 Conclusion
Different aspects of the globalization and its impact has been discussed in this paper.
Evaluation of the impacts of the globalization on the Wesfarmers has been done in this
discussion. Some of the important factors have been identified which would be beneficial for
the improvement of the business situation of the Wesfarmers in future in the era of
globalization. These includes both positive and negative factors. The positive factors of the
globalization includes the expansion of the business of Wesfarmers in different countries. On
the other hand there are some issues those can be faced by Wesfarmers due to the increased
impact of the globalization. The increased competition in the market may become a
challenging situation for the Wesfarmers. Apart from that during the expansion of the
business in other countries the organization can face some of the critical problems regarding
the rules and the regulations. Apart from that the organization can face communication
problem during the expansion of the business. In this context, the organization can face
ethical problems during the expansion of the business. However, it can be concluded from
the above discussion that the implementation of the different parameters and considering the
positive aspects of the globalization the , the change in the market would be positive for the
organization. In case of the Wesfarmers can improve the communication with the consumers
in effective way in order to adopt the changes in the globalization.
2.0 Recommendation
Certain recommendations can be made on the basis of the discussion that has been made
in this paper. It has been seen that the organization has the lack of innovation and
communication plan. This can be negative aspect for Wesfarmers. This organization can
make certain communication plan for the improvement of the flow of the communication

8IMPACT OF GLOBALIZATON ON WESFARMERS
between different stakeholders during the establishment of the business. Apart from that the
communication is important for reaching to the consumers and making the new base of the
consumers. In this context the application of the advanced technology and the use of the
social media can be deployed. It can be said that application of the advanced technology and
the improved communication plan along with maintaining the variety in the products will
help the Wesfarmers to perform well in the competitive market.

9IMPACT OF GLOBALIZATON ON WESFARMERS
4.0 References
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managing effective communication campaigns. Routledge.
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X&isbn=9781317625308&format=googlePreviewPdf
Campbell, J. (2017). Insights from the company monitor: Wesfarmers. Equity, 31(8), 16.
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Cardon, P. W. (2014). Business Communication: Developing Leaders for a Networked World
(3e). McGraw-Hill.
URL:http://sb.cofc.edu/academics/academicdepartments/management-and-marketing/syllabi/
fall-2018/MGMT332-01_Carrico_F-18.pdf
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Gillespie, K., & Riddle, L. (2015).Global marketing.Routledge.

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Johannsen, F. A. (2018). Process-related value propositions of enterprise social media use for the
external communication with end consumers. Business Process Management Journal,
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Wesfarmers.(2018). Our Businesses. Retrieved from: https://www.wesfarmers.com.au/our-
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DOI: https://doi.org/10.1016/j.lrp.2015.04.001Get rights and content