MGT501: Business Environment Assessment - Stakeholder Analysis

This report provides an analysis of the external stakeholders of Wesfarmers, a major Australian conglomerate. It identifies and discusses key stakeholders such as customers, suppliers, government entities, the community, and the media, highlighting their significance in the company's operations and success. The report emphasizes the impact of customer feedback, the importance of supplier relationships, the influence of government regulations, the role of community engagement, and the impact of media relations on Wesfarmers' brand image and revenue. The analysis is supported by references to Wesfarmers' sustainability reports and sourcing information, illustrating the company's commitment to stakeholder engagement and responsible business practices. The report provides an understanding of how Wesfarmers manages and interacts with its external stakeholders to maintain a positive business environment.

Business environment

BUSINESS ENVIRONMENT 1
External Stakeholders
External stakeholders are group outside the business or people who don’t work inside the
business but they affect the business in terms of decision and actions (Henisz, 2017). Wesfarmers
Limited is an Australian conglomerate that operates in chemicals, fertilizers, coal mining, and
industrial products. Wesfarmers is a reputed company in the market of Australia that is why
external stakeholders play the essential role in success of the organization. The external
stakeholders of the organization are discussed below:
Customers
Customers are the main drivers of any business. Wesfarmers main external stakeholder is
customers as their feedback helps the organization to achieve high growth. Customers play an
important role in the organization as they helps to earns high revenue by purchasing the
company’s product. The feedback of customers directly affects the reputation of the organization
in both aspects such as positive and negative.
Suppliers
Wesfarmers have a strong relationship with the 18000 suppliers across the groups that are very
essential for them (Wesfarmers, 2019b). Suppliers are important for the organization as they
helps to ensure the efficiency in consumers supply chains. The services provided by suppliers
directly affect the sales of the product of the company as the quality of the product is relies on
their services.
Government

BUSINESS ENVIRONMENT 2
Federal and state governments are also the external stakeholders of Wesfarmers. The decision
taken by the government towards the businesses impacts the operation activities of the
organization such as competition regulation reform, retail trading hours and the others.
Community
Community is one of the external stakeholders of the Wesfarmers. Wesfarmers contribute $50
million in the community of the organization that equates to 1.5 percent of profit. Cohesive and
inclusive community environment increases the brand image in the market that is why; it directly
affects the business environment or revenue of the organization (Wesfarmers, 2019a).
Media
Media is the source from which the organization can build its goodwill. It also destroys the brand
image of the organization for a single mistake that is why; media also plays a crucial role in
building the high brand image in the market. Wesfarmers works cooperatively with the
international, national and local media with the motive to maintain the brand image in the market
(Wesfarmers, 2019a).

BUSINESS ENVIRONMENT 3
References
Wesfarmers. (2019a) Stakeholder engagement. [online] Available from:
http://2015.sustainability.wesfarmers.com.au/our-approach/stakeholder-engagement [Accessed
14/07/19].
Wesfarmers. (2019b) Sourcing. [online] Available from:
https://sustainability.wesfarmers.com.au/our-principles/sourcing/suppliers/ [Accessed 14/07/19].
Henisz, W.J. (2017) Corporate diplomacy: Building reputations and relationships with external
stakeholders. Routledge.