Strategic Information Systems: A Case Study of Wesfarmers Ltd.

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Strategic Information System
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Contents
Introduction:...................................................................................................................................3
Part 1...............................................................................................................................................4
(External Analysis).........................................................................................................................4
1. Business Background..........................................................................................................4
2. What industry is it?................................................................................................................5
2. General environment analysis:...........................................................................................6
3. The industry environment...................................................................................................8
5. Competitive environment......................................................................................................9
6. Opportunities and threats....................................................................................................10
Threats:.....................................................................................................................................10
Part B.............................................................................................................................................11
(Internal analysis and Proposal)..................................................................................................11
1. The firm’s resources, tangible and intangible.................................................................11
2. Capabilities identification................................................................................................12
3. Core competency analysis:...............................................................................................13
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4. Propose a suitable information system solution that meets the chosen company needs
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5. Evaluate the proposed system and provide your recommendations:............................15
Conclusion:...................................................................................................................................16
References:...................................................................................................................................17
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Introduction:
The report helps the learner to gain knowledge regarding external and internal environment
of Wesfarmers Company. The report explains the background of the business and the kind
of industry it belongs to. It provides a detailed analysis of the general and social
environment of the company. The report also discusses the competitive environment of the
business to gain a competitive advantage in the market. It also provides the idea about the
opportunities and threats that are present in the business in the first half of the report.
The second part of the report discusses the various tangible and intangible resources of the
company. It also provides the capabilities of the company to grow in future and also help to
analyse the core competency of the company. The report also provides the appropriate
information system for the Wesfarmers Company and finally, the report ends with the
proposed system and suitable recommendations for the company to grow.
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Part 1
(External Analysis)
1. Business Background
The Wesfarmers Company is one of the leading conglomerate company of Australia which
deals with the supply of chemical, fertilisers and the products related to coal mining and
goods related to industry and safety. It is one of the largest employer company in Australia.
The company supplies material for industrial goods which are first founded in the year 1914
as the co-operative firm which became successful for providing the merchandise service to
the Australian farmers (Žylius, et. al., 2015). Today, the company has become successful to
maintain the position of one of the major retail conglomerate company in Australia which
got listed in Australian Securities Exchange. Various merchandise companies act as the
agent company for the Wesfarmers Australian Company. In the year 2016, the company was
able to generate around AU$65.98 billion.
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2. What industry is it?
The Wesfarmers Company is a Public Ltd firm of Australia. The industry is dealing with is
the Conglomerate industry which was founded in the year 1914. It is one of the most
prominent and promising retailing firm of Australia with a promise to provide the best
quality product at the most affordable price possible. It’s a western farmer cooperative firm
(D'Cruz, et. al., 2016). It generally supplies its products to various officials, departments
and the stores. It also provides services to various industries such as chemical companies
and companies that deal with industrial and safety goods. The company aims to provide the
best possible return to its shareholders.
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2. General environment analysis:
The analysis of the general environment of the Westfarmer Company can be explained
through the PESTLE analysis as described below:
 Political Factor:
The political parties can affect the environment of the business as it may play a
significant role while laying down the policies for the company. It helps the
company to get political support which in return provides stability in the market.
Thus it affects the background of the company. This would also help the company
to gain economic support from the government.
 Socio-cultural Factor:
The socio-culture factor helps the company to influence the behaviour of the
employees (Eklund, 2017). It helps the company to influence the customers to
buy certain product or service of the company in the market.
 Environmental Factor:
To gain the competitive advantage in the market, the company requires to become
environment which not only help the company to save the environment for future
use but it also shows the awareness of the company towards its responsibility
towards the environment and sustainable practices.
 Technical factor:
The technical factor would help the company to become cost-effective would also
help the company to save time. It would help the company to provide the best
quality services in the market through its product range which not help the
customers but also the supplies which are the farmers of Australia.
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 Legal factor:
The regulating bodies of Australian government would help to regulate the
various actives of the company to maintain the balance the competition in the
market. It also helps the company to save it from any illegal activity which may
affect the functions of the company.
 Economic factor:
The economic factor affects the background of the company directly which help
to increase its employment capability. The Wesfarmers Company is the largest
employer company in Australia through its effective and productive economic
success in the market of Australia.
The above factors would help to analyse the general environment of the company which
help to provide the basic analysis of a various external aspect of the company to carry out
important and relevant information regarding the Westfarmer Company
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3. The industry environment
The environment of the industry of Westfarmer Company can be impacted by the
following element as discussed below:
The Level of Competition in the market:
There are various other retailer companies in the market which poses competition to the
Westfarmer Company. It helps the company to study the position of the company in the
market (Shelton, et. al., 2016). The quality services of the product of the Westfarmer
Company make it unique and stand out among all the existing competitors of the
company. It also helps the company to design its marketing and other business related
strategies effectively.
The Power of the suppliers:
The supplier of the company can influence the policies of the company as they act as the
foundation for the services and products provided by the Westfarmer Company.
The Power of the Customers:
The customers act as the heart of the company as they are the one whose behaviour
towards the company is responsible for the profit and productivity of the company. It
helps the company to achieve its targets and goals related to sales and purchase and the
final profit earned by the company.
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5. Competitive environment.
The competitive environment would help the Westfarmer Company to achieve excellence in
the services provided by the company. Healthy competition would help the company to
achieve its targets and goals more easily and effectively as it challenges the company to
excel in improving its current position in the current. It helps the company to remain
constant in its position (Eklund, 2017). It helps to attract the customers in the market
through an effective marketing strategy. By buying the product in bulk through the supplier
would help the company to provide the services and product in the market at the lowest
price possible which would help the company to achieve competitive advantage in the
market.
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6. Opportunities and threats
Opportunities:
 It has helped company to be able to expand the business by establishing the
branches of the company in various part of the country.
 The company can provide employment to the young generation of the country
and would help to raise their standard of living (Klettner, et. al., 2014).
 The company is able to be able to provide the products and services at the lowest
price possible against any other retailer in the market.
Threats:
 The competition of the company present in the market is the biggest threat of the
company.
 The high demand of price from the supplier’s point also poses a big threat to the
productivity of the company and minimises the profit of the company.
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Part B
(Internal analysis and Proposal)
1. The firm’s resources, tangible and intangible.
As the name of the company suggests, It highly speaks for the rights of the farmers
and also helps to gather to customers and market most cost-effectively. The lowest
prices provided by the company help the company to gain the attention of the
customers (Park and Hwan, 2015). The tangible resources of the company are its
financial assets from the government bodies and loans from the banks which help the
company to manage and balance the resources. It helps the company to buy the
goods from the suppliers at a low price to earn a profit in the market. It helps the
company to company to generate adequate funds to meet with the demands of the
market.
The intangible resources are the stocks of the company in the share market which
keep on fluctuating. The other intangible resources of the company are the logo,
slogans, trademark and copyright of the company which help the company to secure
its right in the market against the illegal activities. It helps the company to get the
patent over the product under the name of the Westfarmer Company.
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