Procurement Report Computing - Engineering and Mathematics

Question: Discuss about the Environmental Analysis of Wesfarmers Companys. Answer: Introduction Wesfarmers was founded in June of 1914 as famers co-operative with the leading function for stipulation of services as well as agricultural products to the countryside local community of the western Australians. The wesfarmers began the path to the diversification back in 1950s with the pioneered plan of disseminating the liquefied petroleum fuel (Da Silva, 2012). It and then extended to glide into the fertilizer manufacturing as well as syndication in 1994 , coal exploration in 1989 , unveiled the insurance business venture in 1991 , hardware as well as forest merchandise in 1994 , industrialized as well as the safety merchandise in 2001 also got in retail conglomerate in 2008 . In this period to permeate many versatile areas, there was clearly transformation in relation to the size and shape of the operation of the enterprise by way of the strategic acquisitions as well as divestments (Kenny, 2013). The organization has currently turn out to be the major public corporation in sever al business activities which include retail store , insurance coverage , commercial as well as energy with as many as 33 brands that are there in Australia . At present the organization employs over 200, 000 people across Australia and New Zealand and display four hundred thousand shareholders (Da Silva, 2012). The organization is now recognized for their focus in the supply valuable to the shareholders as well as progression of relationship of confidence, loyalty as well as the commitment. The organization business is extremely diversified that vary from liquor to supermarket to coal. In the recent past, the wesfarmers organization acquired Coles as a retail division. Coles is a sizable organization, which has over one hundred and sixty thousand individuals who take part in it. This plan struck in 2007, which is a landmark deal as it offers scope for the exceptional control over the marketplace by the wesfarmers (Featherstone, 2009). The plan was properly displayed with all of the financial as well as shareholding control under dialogue. The describing over the package is beneficial in the direction of determing the nature of the relationship, which the organization as well as the clients are savoring. The external environment contains the outside influences on the business. They can be political, economic, sociable as well as ethnic naturally. To keep the Wesfarmers at the primary Focus, the competitive environment, and the remote environment to the external peripheries, a research report into the external environment of the Wesfarmers have been tested out (Featherstone, 2009). Nevertheless , the study has covered on the competitive environment which is mainly steered by Competitors , customers , vendors , workers , supervisors , affiliates of the board , monetary , community , ecological environment as well as the society generally . The study also will address the SWOT assessment. It is essential to note that not all these aspects should be segregated and they often positioned to be overlapping naturally. SwotAnalysis On the SWOT, analysis of the Wesfarmers provides a strategic analysis of the company business and the operations. The summary is done on a table, which represents the strengths, weaknesses, opportunities and threats. Strength 1. The company emphasis on the community development initiative 2. It delivers on the convenience and customer service (Kenny, 2013). 3. The company keeps on the importance to quality and the performance. 4. It offers special discounts in order to attract the customers. 5. The company has large number of stores, in-store staff and a workforce that is strong over two hundred thousand. Weaknesses 1. The company being the market leader it is always under scrutiny for any decision they take. 2. The experiences is limited to Australia thus this means there is a low geographic presence. Opportunities 1. The company expand to outside of Australia. 2. The company enhances on quality, services and experience benchmark that is across the stores. 3. There is employees and the customers loyalty across the businesses. Threat 1. The company faces threats from the competitors. 2. When there is economic downturn it leads to plummeted consumer confidence levels, and a lower demand (Kenny, 2013). 3. The competitors to the company they also offer specialized products and the services at the same equitable prices. Internal Analysis On the internal analysis on the Wesfarmers Company, it will focus on the internal aspect that affect the market. Some of the concepts the report will focus on are; management talent, the resources and capabilities. Management Talent In the wesfarmers company, retaining talent has been the biggest challenge they are experiencing (Walsh, 2002). According to Managing Director of the company Richard Goyder, he elaborated that the company faces aspect of attracting, recognizing and retaining talent for the company. He further explained that these aspects is affecting the western Australia and the only way is to provide equality and diversity in the workplace which in turn will offer competitive advantage in order to attract talent over the other companies (Butera, 2011). Moreover, there is need to have quality of individuals that are employed in the organization. On the aspect of retaining and developing on the internal talent, the managers need to recognize the potential in employees better. They need to be better especially in selecting talent and having conversation with the people (Tilt, 2001). The company also need to have more women in senior management roles to help develop better the business. There is need t o diversify so that there is greater representation of gender in the business and more women are incorporated. Resources and Capabilities The resources of the company are grouped into various components. These resources are human example the skilled and creative employees. Wesfarmers Company has employed over two hundred thousand employees who have the experience to undertake various roles and functions. There are also various organizational capabilities that are embedded in the business in the routines, processes, and culture (Butera, 2011). Wesfarmers Company has ventured its business in various segment in Australian market like energy, insurance, chemical and fertilizers. The company has various advantages over the resource acquisition like reputation the company it enjoys, brand recognition that is well known by many household in Australia and New Zealand, and attractive locations. Furthermore, on the resource and capabilities, the company has identified a value chain of research and development whereby they have the ability to produce products that are innovative, they have the capability of basic research and the y have speed of development of new products. An example of this is in the mining of coal where the company has the best technology all over Australia and the world as compared to the competitors. External Analysis On the external analysis, it looks about the macro and the micro analysis of the company. The macro environment analysis is essentially the first step of the strategic analysis in which kicks of the traditional, and the strategic planning cycle. This analysis is referred to as the pest or the pestle analysis (Morgan, 2006). The purpose of the macro analysis is to identifying the possible opportunities and the threats, which will influence on the industry as a whole for the Wesfarmers Company and those aspects they can control in the industry. On the Pestel analysis is based on six macro environment factors these are economic, social, technological, environmental and the legal factors. Political Factors The Australia government formulated a legislative framework of the mining environmental, and the states governments can make different laws in their concrete situations. The exploitation is thus controlled by the state governments agreements. Moreover, the carbon tax law has been published as well. Therefore, the energy division and the resource business unit of the Wesfarmers Company has been influenced. The company also faced various political decisions such as a right for the buyers that may restrict monopolies in the markets. An example, of this is in the past where there had been several changes in the energy sector like the removal of the barriers to the interstate trade of electricity, which gave Wesfarmers Company opportunities to be able to expand to other states. Economic Factors The economy of Australia trend has a direct effect on to the consumption of the market since it depends on the buying power, which may directly affects on the GDP of the country. When there was a global financial crisis in 2009, the consumption behavior of the market was greatly influenced thus affecting on the disposable income of the households (Kenny, 2009). Since the acquisition of the group of Coles back in 2007, the GFC had hindered on its short-term growth. Moreover, the companys sales of their chemical and fertilizer division was greatly affected by the natural disasters and the climatic changes propositions. Sociological Factors In the culture of Australia, it is reasonable for a family to spend a lot on money on the household goods in the supermarket. Therefore, it is an opportunity for the Wesfarmers Company to make a lot of money from spending of different households on shopping ( Kroenert, 2010). Target and Kmart shopping Centre sell both clothes and electronic at a low price, thus, the consumers can have a one-stop shopping and this can increase on the revenue return of Wesfarmers Company. Technological Factors In Australia, it is usually among the best exploration nations on the globe. The state mines natural resources not to mention mining sector equally are greater than any country globally. Wesfarmers distinct business functions covers the exploration of the coal, energy, chemical substances and fertilizers that is an excellent technical basis as well as a significant assurance for the growth and development of this organization. Legal Factors Australian legal unit is sound, which includes labor law, the natural resources law, alongside a variety of business law. As a large enterprise, these regulations offer Wesfarmers organization management significant criteria. Environmental Factors The Australian government usually focus on the environmental protection. Environment is important for the Australia and related laws and department usually control air pollution (Kenny, 2009). Furthermore, the natural resources are also maintained in Australia. Micro Environmental Analysis The microenvironment factors are the immediate elements in the organization that affect the performance and decision making freedom. The factors that affect Wesfarmers Company are competitors, customers, and the suppliers. Suppliers The supply market mainly ascertains on the degree to which there exists efficient competition can be achieved by an organization. The bargaining capability of the supplier could be seen as an upheaval for the earnings of the organization, and the Wesfarmers Organization has been conscious of this information. The organization is thus attempting to have good contract with the merchants (Tilt, 2001). The management makes certain they take advantage of the agreement whilst the suppliers enjoys the contract together with them. Consequently, within this type of business there is certainly a restricted competition in the supply market. Competitors Wesfarmers company like any other company in business, it is facing many competitors of whom are offering the same specialized products and services that are equitable to the price levels. Some of these competitors are Myer, Woolworths, Safeway and Foodworks companies (Biddle, 2016). These companies are segmented in different sectors in the industry since Wesfarmers Company is a large business organization that competes in these segments. Customers Wesfarmers company customers are loyal to the company because the products they are offered are enhanced in quality, services are excellent and the company offers special discount to the customers in order to attract more of them (Da Silva Rosa, Meemeduma and Watson, 2006). The company across its variety stores in Australia offers variety of product thus offering the customer one stop to shop to the products they need in their households. Conclusion Wesfarmers Company is the largest retail conglomerate in Australia in that they have ventured in different market segments. They are ventures in mining, insurance, electronics, clothes, chemicals and fertilizers. The company has gained a wide market share, trough offering special discount on the products and services to attract more clients. Further, the company offers high quality products at a fair price than the competitors do. On this report, it has analyzed on the environmental analysis of the company. The focus has been the internal analysis and external analysis of the company. There was also a need to look at the SWOT analysis of the company to identify on the threats and opportunities to help the company tackle the threat and to take advantage of the opportunity. References Da Silva, M., 2012. A broad business challenge-Sustainable Company of the Year. Ethical Investor, (98), p.14. Da Silva Rosa, R., Meemeduma, N. and Watson, I., 2006. Wesfarmers: The challenges of pursuing shareholder value in a conglomerate. Working Paper UWA Business School. Biddle, I., 2016. The Wesfarmers/Woolworths duopoly war: The Bunnings vs. Masters battle. Busidate, 24(3), p.3. Butera, G., 2011. Research Guides: Harvard Citation Style: Company Information. Featherstone, T., 2009. Finding the light [Company boards are learning to deal with the global financial crisis.]. Company Director, 25(8), p.16. Kenny, G., 2009. Diversification strategy: How to grow a business by diversifying successfully. Kogan Page Publishers. Kenny, G., 2013. The stakeholder or the firm? Balancing the strategic framework. Journal of Business Strategy, 34(3), pp.33-40. Kroenert, T., 2010. Off-course Offsets. Inside Film: If, (137), p.28. Morgan, S., 2006. Blueprint for success [Profile of Richard Goyder, Managing Director and CEO of Wesfarmers.]. Management Today, (Oct 2006), p.6. Tilt, C.A., 2001. Environmental disclosure by Australian companies: what is happening outside the annual report. University of Adelaide. Walsh, R., 2002. Executive Material: Nine of Australia's Top CEOs in Conversation with Richard Walsh. Allen Unwin.