This report analyzes the operating environment of Wesfarmers, an Australian retail giant. It examines both internal and external factors influencing the company, including competitors like Woolworths, suppliers, and clients as internal factors, and economic, social, political, technological, and environmental changes as external factors. The report highlights the high bargaining power of buyers and suppliers, intense competition, and Wesfarmers' collaborative efforts with rivals. It details the company's climate change policy, technological innovations, and dedicated relationships with stakeholders. The report identifies threats such as competition from Woolworths, regulatory challenges, and changing customer preferences. The analysis is supported by references to relevant sources like The Motley Fool and Wesfarmers' sustainability reports.