Strategic Management

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  • Topic: Coles Group, Coles Supermarkets, Wesfarmers
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Three strategy analysis of Wesfarmers (Final report)  
2010-05-27 11:03:40|  分类: 我的学习成果 |字号 订阅 WESFARMERS
 3rd Semester, 2009-2010
Class 8
 
 
 
Introduction
 
Wesfarmers is a corporation of high popularity, which has become one of the largest and oldest successful national companies in Australia. It has a large size, in terms of its employees, there are almost 200,000 people working for it. This company involves diversified fields, such as supermarkets, department stores, home improvement and some other aspects, which are closely related to people’s production and life (Wesfarmers official website).  

Wesfarmers was established in June 1914. During 100-yeaar period, great changes had taken places, not only in its operations and structures, also in the scale. At the beginning, it is just a small supplier with produces to the rural of Western of Australia. However, from 1984 onwards, Wesfarmers become listed company, and in the meanwhile, it began to merge with other companies, which have right stuff to make it stronger. For example, Wesfarmers was entitled to expand a nearby deposit in 2003, and set up the company, which has retailing and agricultures in 1994. In November 2007, Wesfarmers used $18.6 billion to purchase the supermarket operator in Australia –Coles Group Limited, and this transaction launched the largest flight in Australia history. As of December 31, 2008, the profits of Wesfarmers are increasing by 46%, which is getting $0.88 billion (Wesfarmers official website). For Wesfarmers goals, it aims to provide good services to meet the requirements of customers. This report’s purpose is to use three analysis tools, they are SWOT, PESTLE, and SMART respectively to analyze the impacts of internal and external factors on the enterprise.  

Wesfarmers SWOT analysis
 
In this analysis method, it contains Strengths and Weaknesses, and contains Opportunities and Threats Strengths
? Wesfarmers is a diversified corporation. Its diverse businesses mainly comprise Coles, Target, energy, Resources and other activities. Wesfarmers’s strategy is engaged to invest new fields, so it can experience a persistent growth without the impact of an industry downturn. Wesfarmers has become an enormous scale of diversified company.  

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? Wesfarmers is a competitive organization. (Wesfarmers official website) The core goal is to bring more benefits to shareholders. Wesfarmers deems that the development of company based on the support of shareholders, thus, it attracts more than 400,000 shareholders to purchase its issued shares. On the other hand, Wesfarmers focuses on its employees.  

Weaknesses
? Wesfarmers Limited’s product and service cover energy, resources and many other spheres, so Wesfarmers has less competition than other companies which specialize in one area. ? Wesfarmers has a strong presence in Australia and most business is served for the domestic market, so as a large scale industry, it faces strong business risk. ? Wesfarmers Limited’s profitable ability is not very strong. From 2006 to 2007, the revenue of Wesfarmers increased 10.1%, stood at about $7,666 million. However, the operating profit of Wesfarmers decreased from $1016 million to $929 million and the net profit was also dropped from $772.5 million to $618.1 million during the period between 2006 and 2007. (Mike King, 2008)  

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Opportunities
? Wesfarmers does well in taking advantage of opportunities. For example, in November 2007 Wesfarmers spent a$22 billion to purchase the Coles Group retail business and then become the leader in Australian retailers. As for the development of the network, Wesfarmers is active in promoting its online shopping services such as Coles online. ? Wesfarmers has the opportunity to develop its global business. The need of natural materials is becoming larger and larger to developing countries such as India and some South American countries. ? Wesfarmers Energy playing a strong focuses on protection of...
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