MGT501 Business Environment: Wesfarmers Stakeholder Report

This report provides a detailed stakeholder analysis of Wesfarmers, an Australian business conglomerate. It identifies and examines both internal stakeholders (senior management, employees, board members) and external stakeholders (customers, suppliers, government agencies, investors). The report explores functional areas like marketing, human resource management, and supply chain operations. It compares stakeholders across different industries and highlights the roles and expectations of various stakeholder groups. The analysis further delves into potential conflicting interests among stakeholders and assesses their level of influence. A stakeholder matrix is created to visually represent these relationships. The report concludes with a summary of findings and implications for stakeholder communication and engagement strategies, essential for the company's success. The report also provides context and insights into the business environment and the impact of stakeholders on decision-making.

STAKEHOLDER ANALYSIS

Executive Summary
This report brings out a discussion on analysis of stakeholder of Wesfarmers. This analysis is
a defined as planned identification, examination, and prioritisation of the people who effect
the interest and influential concern leading to change in decision-making. This report analysis
the projects, business, and programs that will help in the development of efficient stakeholder
communication and its related engagement strategy (Wesfarmers, 2015). Stakeholder matrix
is one of the main fundamental element in regards to stakeholder`s management plan. This
report considers the relatedness, which either directly or indirectly affects the operations.
Internal and external stakeholders include senior management, employees, board members,
and directors. External stakeholders affect the organisational decisions. For example-
creditors, local community, suppliers, government agencies, investors, society, and customers
(Nelson, Smith, Ly, Gustavsson, Sudlow, & Bexelius, 2018).

Contents
Executive Summary...............................................................................................................................1
Introduction...........................................................................................................................................4
Identify functional areas........................................................................................................................4
Comparison of stakeholders according to different industry..................................................................5
Identify internal and external stakeholders and their roles.....................................................................5
Conflicting interests...............................................................................................................................8
Identify the level of main stakeholders’ influence.................................................................................9
Create a stakeholder matrix...................................................................................................................9
Conclusion...........................................................................................................................................11
References...........................................................................................................................................13

Introduction
Wesfarmers is an Australian business conglomerate, which is headquartered in Perth,
Australia. The company operates several subsidies such as Bunnings, Coles, officeworks,
Kmart Australia, and Target. The company was established in 1914, as it is one of the largest
listed organisation in Australia and New Zealand (Wesfarmers, 2015). In order to analyse the
impact of stakeholders on the decision making of the organisation. It will be crucial to the
success of business projects. Creation of stakeholder`s matrix has led to development of
understanding of main people that can affect the success (Koehler, & Raithel, 2018). This
map provides a foundation of the communication and the engagement strategies. The diverse
business includes home improvements, outdoor living, general merchandise, and apparels,
industrial divisions that are associated with the different business in energy, chemicals, and
industrial and other safety products. It is useful to find the potential risks that come from
negative stakeholders (Ramus, & Vaccaro, 2017). The main purpose of using the stakeholder
mapping is review of organisation on regular basis. It helps to assess the changing
environment of business while emerging new business initiatives. The company maintains the
largest shareholders base and employers of nearly 490000 (Wesfarmers, 2015).
Identify functional areas
Marketing
Human resource management
Supply chain and operations
Transportation (Mosey, Kirkham, and Noke, 2017).
Supervision of its convenient stores
Cash handling and prevention of loss (Ahlan, Kartiwi, & Sukmana, 2015).

Comparison of stakeholders according to different industry
As compared to supermarket store, stakeholders differ from industry to industry. In this
report, it is seen that construction industry has different stakeholders. The discussion is
related to the main stakeholders for the retail departmental store by considering the analysis
of Wesfarmers. The company have a diversified range of business portfolio (Ramus, &
Vaccaro, 2017). This industry includes customers, suppliers, retailers, convenient store
manager, investors, shareholders, board of directors, and distributors (Wesfarmers, 2015). On
the other hand, it is seen that construction industry have different stakeholders such as it
includes contractors, suppliers of stones and cement, technological advancement, chemical
dealers, labour unions, debentures, sub-contractors, long term loans and other interest groups.
As the industry is different, the obligation towards to each one towards the law compliance
and their interest is different. For example- Construction industry will turn to health safety
acts and compliances. The potential and fast earning will turn to higher risk so as the
compliance to CSR activities, which affect the choices of customers and shareholders. Body
shop is the best example that greatly serves huge services in order to treat the social cause
with higher quality (Nelson, Smith, Ly, Gustavsson, Sudlow, & Bexelius, 2018).
Identify internal and external stakeholders and their roles
Wesfarmers operates with the assistance of several stakeholders that consist of shareholders,
employees, consumers, government, suppliers, non-government agencies, and media.
Stakeholders are the assets of Wesfarmers and it is important to identify their roles and
expectations (Ramus, & Vaccaro, 2017).
Customers- This stakeholder group plays an important role in affecting the organisation
operations. As it is the prior duty of organisation to serve the customers as per their wants and
needs. Further, ineffective customer involvement will be highly detrimental to the
enhancement of the company. In order to satisfy this stakeholder group, the company

conducts a sufficient analysis of the market that can help to fulfil the hope of the consumers
in a competitive market. In lieu to optimise the retail sales of the company by the introduction
of online services and its related channels.
Employees- this stakeholder group plays an important in the organisational success.
Employees strive for on-the-job training so that they can get the opportunity of their
personality growth by employee’s enhancement and by enhancing their professional skills.
The organisation has to give chance to the diverse workforce that helps to hire ethnic group
such as Torres islanders and Aboriginals (Nelson, Smith, Ly, Gustavsson, Sudlow, &
Bexelius, 2018).
Shareholders: Wesfarmers tends to engage the entire retail shareholders in its annual general
meeting. It is because they are responsible for the positive image of the company. Besides
this, they are also registered with the company that take part in the strategy, result
announcements as well the hoc meeting. Besides this, they also want to know the Wesfarmers
approach to sustainability including the relationship with suppliers, ethical sourcing,
corporate governance, and climate change resilience. The numbers of investors are related
with the results of Wesfarmers (Brem, & Viardot, 2015). Therefore, it keeps the result open
for them in order to listen to the customer’s live through the investment analyst and public
webcasts (Kilroy & Schneider, 2017).
Customers: In every organisation, customers are the essential part as it helps the organisation
in achieving growth as well as success. Wesfarmers tend to contact the customers through
letter, emails, telephone calls, and websites and in person throughout the year (Wesfarmers,
2015). Customers who are pleased and concern regarding the particular activity in business
decision communicate the view. It is because customers exert pressure to take in account
their views (Hackshall, Kassis & Sutherland, 2014). The feedback of customers receive

directly through email is monitored each day. In order to satisfy the customers, it usually
contacts them immediately regarding any query. It is true that customers are the essential
aspect of every organisation. Therefore, Wesfarmers has also undertaken the essential
measures for the wellbeing of customers. In order to cope up with the changing demand of
customers, it has underlined the necessary schemes such as discount; home delivery services
(Dobbs, 2014).
Suppliers: Wesfarmers is effectively committed to the long range of outcomes that tend to
benefit both supplier as well as shareholder. It is because the threat of suppliers forces the
company to work in their interest (Dobbs, 2014). It adopts such business practice as well as
contributes to the efficiency, innovation and long term competitiveness and sustainability of
the parties (Walker, Lee, James, & Ho, 2018). Besides this, all the divisions also work closely
with its supplier. In recent time, suppliers also require the ethical auditing on the behalf of the
company (Ramus, & Vaccaro, 2017). Therefore, Wesfarmers also uses the ethical review
system and auditing for the higher risk supplier. The business of Wesfarmers is the member
of supplier bodies. For the supplier, it also provides and recognises the supplier through
awards. In addition to this, it also ensure meeting with the suppliers regularly. It is also
committed to the string relationship with its supplier (Islam, Jain & Haque, 2016).
Government: Government is the major stakeholder in every business. The objective of every
business organisation is to work in accordance with the five areas of governance, people,
community, environment, and sourcing. It is because they have major stake in the
organisation. In order to fulfil this, Wesfarmers engage with government every year (Walker,
Lee, James, & Ho, 2018). The changing rules and regulations are also taken into account by
the Wesfarmers that leads to smooth functioning of the organisation. As per the government,
safety is the essential measure for the workers. Therefore, it has taken the safety initiative.
Every division of Wesfarmers have undertaken this initiative that target the particular safety

risk (Klettner, Clarke & Boersma, 2014). For example- it has introduced the nurse on call
service for its team members. As per the changing policies of the government, it tend to make
the guidelines for bringing out the necessary changes (Mustafa et al., 2017). In this regard,
Wesfarmers tends to create the positive work environment. The environment of Wesfarmers
includes all the people irrespective of the age, gender, race, sexual orientation, disability,
religion, cultural background, and other areas of the difference (Wesfarmers, 2015).
Conflicting interests
Here is an order of priority that indicates the level of conflicts between the interests of the
stakeholders-
Whether the organisation should think of inexpensive staff so that it can think of maximising
the profits, even it leads to poor services. On the other hand, concerning regarding the
customer services at the prior. The company should hire best suitable people so that it could
deliver best services to the customers (Wesfarmers, 2015). Although, this will lead to higher
cost and less profits in short run but at the end, it will serve as a good reputation of the
organisation. According to the insurance company, it is seen that there is a need to regulate
same rules in the organisation such as regulatory requirement, generation of revenue, high
customer satisfaction, enhancement of the performance, and the employee satisfaction
(Ramus, & Vaccaro, 2017).
Wesfarmers should arrange several things, which can minimise the tax expenses so that they
can incur higher profitability. Whereas, the shareholders might outrank necessary national
government as their priority (Dobbs, 2014). It is observed from the researches that
interpersonal incompatibilities emotions such as depression, tension, and unfriendly among
the group members. Mainly, there are two main conflicts such as task-related conflicts and
process related conflicts. Task associated conflicts signifies negative cooperation among the

employees. It is a type of frustration and a source of misunderstanding that creates lower
productivity that will affect the shareholder`s profits (Wesfarmers, 2015).
On the other hand, it is seen that process conflict is another way through which stakeholder`s
conflicts can be identified (Dobbs, 2014). Ream often brainstorm for their roles where there
is a completion of the tasks so that stakeholders often interrupt due to uncertainty of the
business environment (Talja, Lappalainen, & Niemelä, 2017).
Whether the company undertakes to see all the staff level to act as a team. In order to stay
them motivated and rewarded, it is necessary to take care of their motivation with the help of
monetary incentives but at the same time, it will cost huge to the organisation. If they are
overpaid, it will increase the cost of the organisation and decrease the profitability
distribution to the shareholders. This increase the risky price competitiveness regarding the
profitability at the marketplace (Nelson, Smith, Ly, Gustavsson, Sudlow, & Bexelius, 2018).
Identify the level of main stakeholders’ influence
It is significant to examine the stakeholders of the company. Wesfarmers have huge number
of stakeholders ranging from business purposes to their effect on decision-making. The level
of exerting pressure would lead to impact on decisions of the organisation. This will be
clearly interpreted by the stakeholder`s matrix (Dobbs, 2014).
Create a stakeholder matrix
Stakeholder analysis is a technique that indicates stakeholder mapping. In order to analyse the
influence and associated power of the stakeholders, stakeholder mapping has been used. This
matrix focuses on two variables such as level interest and influence (Dobbs, 2014). This map
will identify main players that have greater impact on initiative towards success.
Identification of stakeholder`s nature and degree to what extend they affect the stakeholders’
interests, and their implications on decision making (Ramus, & Vaccaro, 2017).

(Source: Groupmap, 2019)
From the above analysis, it is seen that stakeholders are divided in each of different quadrant
as per their level of interest and power to influence. It is divided into four important
categories that determines the way in which different stakeholder exerts power (Brem, &
Viardot, 2015).
Satisfy- The first category brings out the influence of stakeholders and their interest on the
decision making of the Wesfarmers. Satisfy category exerts high pressure and influence on
Wesfarmers (Ramus, & Vaccaro, 2017). These stakeholders include administrators,
shareholders, and customers. They have lot of interest and impact in the name of high quality,
greater profitability, and compliance of all the laws and legislations. This category exerts
greater influence but have less interest in the operations of the company that impact and high
interest on the stakeholders (Wesfarmers, 2015).

Manage- from the above chart, it can be seen that this category of stakeholders have high
interest and high influence in the organisation (Brem, & Viardot, 2015). The main key
stakeholders includes trade unions, investors, senior management, and project sponsors. It is
important to consider many influential activities with a strong interest in the decision of the
organisation because it will have greater interest in the profitability and company`s operations
(Brem, & Viardot, 2015).
Monitor- this group of stakeholders have lower interest and low interest in the organisational
decision making (Talja, Lappalainen, & Niemelä, 2017). For instance- support activities
handlers such as retail distributors and suppliers will have less interest in the decision-making
as they are more concerned regarding the liquidity of the company as they are dependent on
the deals and the agreements. These stakeholders act as a support and complementary
activities. They do not exert great pressure not they have much interest in the operations.
Their relativity depends on changes that are made as per the information, communicate to
them accordingly, and promote their interest (Talja, Lappalainen, & Niemelä, 2017).
Inform- These stakeholders have low interest and high influence. This group is the end user
of the program who have higher influence on the decisions of the organisation but they do not
have much interest such as governmental and non-governmental agencies (Starik, Sharma,
Egri, & Bunch, 2017). Government and local communities want the organisation to comply
with the necessary laws and legislative regulations. Wesfarmers has to comply with the food
safety rules, procedures and EPA (environment protection act) (Talja, Lappalainen, &
Niemelä, 2017).
Conclusion
As far as the stakeholder`s level of power and interest is concerned, it is seen that to some of
the stakeholders exert huge power on the decision making of the company. Although,

Wesfarmers has imposed and remained successful exercising on the positive impact for the
stakeholders. Wesfarmers communication necessary information to the important
stakeholders who engage more power on the level of interest as well as competitiveness.
Wesfarmers has to update ever part of the data in regards to the relevant procedures to related
stakeholders. Wesfarmers strongly believes in achieving most effective communication
strategies so that it can communicate to each of the strategy to the appropriate stakeholders.
Stakeholders of the company can be either affected or affect the organisation itself with its
actions, policies, and objectives of the company. While analysing the competitive potential
and their threat to strategy. Stakeholders has led to consider higher power of the stakeholders.
The crucial strategies related to stakeholders will comply with the regulations and rules, and
also change the laws and finally implementing the policies and procedure as per the services.

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