This report provides a comprehensive analysis of Wesfarmers' organizational structure and its impact on the company's performance. It begins with an overview of Wesfarmers, its background, and its various business divisions, including retail, chemicals, and resources. The report then delves into the company's organizational structure, highlighting its decentralized, functional approach with separate management for different divisions. It explores how this structure supports the company's strategies, such as developing a strong supply chain and expanding its retail presence through acquisitions like Kmart and Target. The report examines the impact of the organizational structure on management innovation, emphasizing how the decentralized model fosters an environment for innovative practices and strategic decision-making. Furthermore, the report analyzes the effects of the organizational structure on business performance, demonstrating how the company has achieved significant revenue and profit growth. Finally, the report offers recommendations for further optimizing Wesfarmers' organizational structure, including ethical sourcing, innovation, and systems thinking to meet future needs and maintain its competitive advantage. The report uses relevant theories of organizational structure and management to support its findings.