Report on International Growth Strategy of Wesfarmers Limited

This report provides an overview of Wesfarmers Limited, an Australian conglomerate, and its international growth strategy. It examines the company's current operating position, competitive strategies, organizational structure, and control issues. The report also discusses entry strategies, operational control, supply chain management, and human resource management across borders. Key issues and opportunities for management are identified, along with recommendations for improvement, such as increasing overall profits, enhancing business performance, and developing a robust international strategy. The analysis includes a review of Wesfarmers' ethical sourcing programs and talent development initiatives, concluding with the company's ongoing efforts to strengthen its position in the international market. Desklib offers this and other solved assignments for students.

Wesfarmers
Limited
INTERNATIONAL
GROWTH STRATEGY

 Wesfarmers Limited is an Australian Company.
 The company’s headquarter is located in Perth.
 The organisation pays attentions mostly on New
Zealand and Australian Retail Companies. These
companies include manufacturers of fertilisers, coal
mining, safety products, chemicals and industrial
products.
 It is a Public Company.
INTRODUCTION

 Wesfarmers Limited is a conglomerate in
Australian. The company headquartered is located
in Perth. The organisation pays attentions mostly on
New Zealand and Australian Retail Companies.
 Wesfarmers was founded in the year 1914 with a
target to provide Western Australian farmer’s services
as well as merchandise (Wesfarmers 2019).
OVERVIEW OF THE COMPANY

The organisation is one of the largest in Australia in
context to its revenue and has earned around AU$65.98
billion by the year 2016. The organisation is the biggest
employer in the private sector in Australia and has
almost 220,000 workers.
Mr Rob Scott is the Chief Executive of Wesfarmers
Limited. Mr Michael Chaney is
the Chairman of Wesfarmers Limited (Bloomberg
2019).
CURRENT OPERATING POSITION

To achieve more success and profi t and be above the
competitors some strategies adopted by the company
are:
Online business mode to make products and services
accessible all over the world.
Selling more products at fi rst price rather than at
discounted price.
Stocking global trends to know about customer
demands and likability.
Additional store services to attract more customers.
REVIEW OF COMPANY’S
INTERNATIONAL COMPETITIVE
STRATEGY

 The structure of Wesfarmers is the hierarchical
structure in which the organisation is leaded by the
directors and they instruct the managers followed by
the team leaders and fi nally the employees working
under the ground level supervisors.
 The mentioned order is distributed separately into
diff erent departments like fi nance, production,
marketing and R&D (Sorensen and Stanton 2013).
EXISTING ORGANISATIONAL DESIGN
STRUCTURE

 Manager or the supervisors dominate the employees
or the executives in a wrong way (Hill, Jones and
Schilling, 2014).
 lack of communication within the members
 Cost
 Delegation of job roles
CONTROL ISSUES

 Wesfarmers invests in its new businesses in Hong Kong.
 The investors must not be made aware about the
organisations expansion overseas for security and
confi dentiality purposes.
 Wesfarmers existing operations that are presently
heavily dominated domestically and around retail
through companies under it such as Bunning’s, Coles,
Target, Offi ceworks, and Kmart.
 The organisation also drives store network, operational
productivity and continue to expand its online off ers all
across its retail brands.
 A day is spent that is entirely dedicated to making and
implementing the strategy7 of the organisation that is
called “The Wesfarmers strategy day”.
ENTRY STRATEGIES USED TO ENTER
OTHER REGIONS/COUNTRIES

 The organisation uses Sedex (Supplier Ethical Data
Exchange) to make more effi cient ethical observance
and monitoring and provide suppliers with effi ciency.
 Target and Kmart both have an ethical sourcing
program roadmap of 3 years (Sedex, 2019).
 Kmart targets to have transitioned all the eligible
factories that manufacture apparels in Bangladesh,
Indonesia and Cambodia.
 The company Offi ceworks under this organisation has
developed a three-fold approach in order to make
sure that suppliers are complying along with its ES
Policy.
OPERATIONAL CONTROL,
PRODUCTION AND
DISTRIBUTION/SUPPLY CHAIN
MANAGEMENT

 Training and job programs are available for both full
time as well as part time employees.
 In the organisation there is a team called the talent
team that focuses on the potential and capability of
the organisation’s leadership teams.
 The organisation focuses on establishment of
particular standards for talent that will enable the
company to avail a team comprising cross-divisional
talent development processes.
MANAGEMENT OF HUMAN
RESOURCES ACROSS BORDERS

Opportunity Threat
Expansion at a universal level will
lead to increased growth of the
organizations revenue.
The prices of required raw
materials are increasing in
Australia.
The organization can enhance its
quality as well as services.
The prices of required raw
materials are increasing in
Australia.
The level of income of the
consumers is constantly
increasing.
IDENTIFY KEY ISSUES OR
OPPORTUNITIES FOR MANAGEMENT

 To increase the overall profi ts of the organization and they
must allow increase in the demand of products and services
that the business provides.
 The organization must improve its overall business related
performance in order to increase the value of the products
and services that it provides in order to increase company
reputation, demand and overall profi tability.
 The organization must work towards making its
management and marketing activities outstanding.
 International strategy must be made in order to attain
wider achieve spread as well as reach.
 Kmart must be merged with Target.
 For environmental protection purposes the organization
must make alternative environmental recourses instead of
mines, such as Solar or wind power.
RECOMMENDATIONS TO
MANAGEMENT FOR IMPROVEMENT

 The organisation is continuously working towards
strengthening its grip in the international market.
CONCLUSION

 Biddle, I. (2016). The Wesfarmers/Woolworths duopoly war: The
Bunnings vs. Masters battle. Busidate , 24 (3), 3.
 Bloomberg 2019, Company Overview of Wesfarmers Limited ,
viewed 24 January 2019, <
https://www.bloomberg.com/research/stocks/private/snapshot.as
p?privcapId=875660
>.
 Hill, C. W., Jones, G. R., and Schilling, M. A. 2014. Strategic
management: theory: an integrated approach . Cengage Learning.
 Sedex. (2019). Sedex - Empowering Ethical Supply Chains.
Retrieved from https://www.sedexglobal.com/
 Sorensen, L.J. and Stanton, N.A., 2013. Y is best: How Distributed
Situational Awareness is mediated by organisational structure
and correlated with task success. Safety science, 56, pp.72-79.
 Wesfarmers 2019, Wesfarmers, viewed 24 January 2019, <
https://www.wesfarmers.com.au/>.
REFERENCES