Strategic Management of Wesfarmers Organisation-Free-Samples

Question: You have recently been appointed as the CEO of your chosen organisation, apply your critical thinking skills to develop strategic recommendations for the development of the business over the next 12 months. Answer: Introduction Any business organisation operates under several circumstances and factors which result in the success or failure of the business. Achieving the objectives leads to the success of the business. Depending on the values and the principles of the company the objectives are set. The process of strategic management is important in an organisation as it ensures proper organisation of the function, business and corporate operations of the business (Wheelen et al., 2017) Strategic management can be defined as the growth and incorporate of the plan for performing the functions of the business on a daily basis. The most basis strategic management decision that has to be taken is to lay down the foundation of the company with the help of a mission and a vision statement which will be followed by aims and objectives. Depending on all of these factors the management of a business organisation formulates policies and devices rules which will help the company reach its goal (Hill et al., 2014). Back ground of the company: Wesfarmers Established as Western Australian farmers' cooperative, in 1914, the organisation has emerged as one of the largest conglomeratesin Australia. The company has a diversified product line - there are a plethora of services that operate under the organisation for example: coaland energy, several retail store formats home improvement; stationery items; department stores; ther is also an industrials division with businesses in chemicals, fertilisers and industrial safety items. Retail is one of the major sections of the brands. Apart from being one of the largest organisation sit is also one of the largest employers of Australia with around 220,000 employees the company also has shareholder base of approximately 530,000(Wesfarmers.com.au, 2018). The goal of the company is to offer an agreeable return to the shareholders. Aims and objective: To cater to the needs and requirements of the customers by providing them with products and services which is of industry standard To ensure that the employees enjoy a work environment and culture which is rewarding and fulfilling so that they can enjoy job satisfaction To contribute towards the growth and expansion of the company and in turn the economy of the country To provide a sustainable future for the society in which the company is operating in To determine the responsibility the company has towards the environment To adhere to the principles and the values with which the organisation was situated and to follow the global ethical norms within as well as outside the operations of the business (Wesfarmers.com.au, 2018) Internal and external business environment Internal business environment of Wesfarmers can be analysed with the help of mckinsey 7s framework, The hard aspect Strategy: diversification of the products and services are one of the major strategies that are followed by the company. There are a number of brands that are operating within the company which are from various industries. The company focuses on the shareholders and the customers as the most important stakeholder. Structure: Because the company operates in various industries the structure of the subsidiary organisation is also separated by the industry or the brand in which the company operates. For example Coles supermarket has its own corporatestructure and culture, buton the other hand Woolworths has its own structure. Systems: Similarly, the company will have the system of operation based on the organisation and the industry of operation(Wesfarmers.com.au, 2018). The soft aspect Skills: The skills of the people are based on the organisationand the industry of operation, the employees of Kmart will have different skillsthan people working in the energy sector. The company ensures that the employees of the organisation are in a healthy and safe environment and they are also offered career development opportunities within the company. Staff: The conglomerate has large workforces who are responsible for driving the day to day business of the organisation (Alshaher, 2013). Style: The organisation is led by Rob Scott who is designated as the managing director.He does not follow the traditional view of a leader guiding the people and knowing the answer to the entire question; rather he is a learner and he is aware of the dynamics of the business and invites new ideas and views. Shared Values: The company focuses their effort on the customers and the shareholders; hence formulates all the decisions based on this principle(Alshaher, 2013). With the help of PEST Analysis the external environment of the company can be analyzed: Political:The political environment of the home country Australia is stable and it encourages business in the country and hence the rules and regulations are formulated in such a way that such a conglomerate can operate with ease. The inflation rate, currency exchange rate and the regulation regarding the license of Coal mining, liquor etc. are properly regulated by the government policies of Australia. The regulations of the country help investors in the process of business. On the downside, thestrategy of free trade may not facilitate the economic growth of Wesfarmers as it ensures a large number of competition in the market as all these factors are also true to other companies who are willing to operate in the same industry (Antonini 2016). Economic:Rate of inflation, interest, exchangeetc. are some of the economic factors that can significantly affect the development ofthe organization. Australia is a developed economy and encourages trade and business in the country. Wesfarmers operates in various industries therefore it contributes to several markets in the economy. Social:The operations of the business which are offered by the company is based on the social needs of the company. Therefore factors such as demographic, cultural trends, societal perspectives etc. impact the business. Australian society is liberal and has a tone of acceptance hence the diversified business line is accepted by the people easily (Chan et al. 2013). Technological: Technological advances help an organisation to change and adapt to the dynamics of the industries in which the subsidiaries are working. Wesfarmers is a conglomerate which is required to fall back upon advanced technology in order to drive towards achieving the objectives and the goals adhering to the ethics and principles(Wesfarmers.com.au, 2018). Business strategy The strategy that the company can invest in order to improve the business operations is to provide the organisationwith values that should be implemented in the business strategies of all the subsidiaries.As a parent organization, it is important for the company to ensure that the perspective of the business is in a streamline. Functional strategy The company has a central administrative body which looks after the operation of the business from an administrative perspective. The company can implement technology to make the process more streamlined. The process of can be developed and then the people can be trained to use the technology. Corporate strategy The company can engage in mergers and acquisitions of consultancies as that is one of the sectors that is not explored by the company much, but has potential in the Australian market. A consultancy will not only expand the business but also will help in more employment (Gupta, 2013). Competitive Advantage Diversifications of products are the process by which the organisation incorporates the process of gaining competitive advantage over the other organisation. Also based on the specific organisation, the strategies keep changing. The focus of the company is providing the people with a plethora of products and services with the help of subsidiary companies in reasonable price but of high quality and facilities. Sustainability The company has adapted to the concept of corporate social responsibility (CSR) and ensures that they fulfil their responsibility towards the society and the environment along with the business. The company works under four principles: People: development; diversity and safety Sourcing: suppliers and HR practices Community: contribution towards the community and safety of the product Environment: Climate change resilience as well as Waste and water use and lastly governance. Leadership in the company As discussed above, the leadership of Rob Scott is more of transformational where the company is open to learning and changing according to the dynamics of the industry environment. He believes in learning and gathering knowledge while guiding the people of the organisation towards the achieving the goals of the organisation. Organsiation structure The organisation follows a hierarchy structure of management which can be described as the matrix structure as there are several subsidiaries of the company. The structure is complicated and has its own structure with in the operatio Conclusion Wesfarmers has a complicated form of management where the subsidiaries form the base of the foundation of the company. It is one of the largest conglomerates in Australia and also has its operation in a plethora of industries. Wesfarmers play an important role in the economy of the country as well as have contribution towards the society and the environment. The company follows the triple bottom concept of business model and ensures that all the subsidiaries follow the same. Reference list: Alshaher, A. A. F. (2013). The McKinsey 7S model framework for e-learning system readiness assessment.International Journal of Advances in Engineering Technology,6(5), 1948. Antonini, C. (2016). An empirical analysis of environmental externalities incidence on financial performance. Chan, E., Yau, O. H., Chan, R. (1990). Consumer sentiment in Australia: A replication and cross-national comparison.European Journal of Marketing,24(10), 44-58. Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment.Merit Research Journal of Art, Social Science and Humanities,1(2), 13-17. Hill, C. W., Jones, G. R., Schilling, M. A. (2014).Strategic management: theory: an integrated approach. Cengage Learning. Wesfarmers.com.au. (2018).Annual report 2017.wesfarmers.com.au. Retrieved 19 March 2018, from https://www.wesfarmers.com.au/docs/default-source/default-document-library/2017-annual-report.pdf?sfvrsn=0 Wheelen, T. L., Hunger, J. D., Hoffman, A. N., Bamford, C. E. (2017).Strategic management and business policy. pearson.