Wesfarmers: Largest Australian Conglomerate

Introduction to Wesfarmers

Wesfarmers is the largest Australian conglomerate. Headquarter in Western Australia and Perth. It was originated in 1914 by the agriculturalists and colonizers Association of Western Australia. Mr. Michael Chaney is the chairman and Mr. Rob Scott is the CEO of the company.  It deals in chemicals, fertilizers, coal mining and manufacture, gas dispensation and supply, manufacturing and welfare goods. Wesfarmers Company has higher revenue then Woolworths and BHP Billiton. Secluded sector employees with across 220,000 workforces and has an investor base of around 530,000. The main goal of Wesfarmers is to offer an acceptable profit to its investors (Azizul Islam and Jain, 2013).

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Wesfarmers major objectives are:-

  • Fulfilling the requirements of consumers by the delivery of properties and facilities on a modest and specialized base.
  • Giving a harmless and satisfying occupied environment for workers, pleasing decent presentation and giving chances for development.  
  • Donating to the development and success of the countries in which it functions by directing present procedures in a well-organized way and by looking out chances for growth.  
  • Replying to the approaches and prospects of the groups in which the company functions.
  • Putting a strong stress on the security of the environment.
  • Performing with honesty and trustworthiness in transactions both inside and outside the company(Ji and Deegan, 2011).  

Wesfarmers take benefits of numerous policies over the business building, control management, association regulator, wealth distribution and asset regulator. This example includes business policy, attainment approach, corporate strategy, and execution strategy. Wesfarmers’ long-term aim is to deliver an acceptable return for its investors. And there are 4 key business policies according to the case. Company policy adopts the way of a business and controls the environment of business actions. It is important to describe what the business approach is. Business approach contracts with matters linked to the collection mix of trades detained by a multi-business organization/corporation. Business problems contain the portfolio of industries within the company, the foundation behind the enterprise of the portfolio, resource distribution, essential company current performance and revenues. In this case, Wesfarmers has 4 key business policies regarding this case (Chapple and Humphrey, 2014).

  1. Safeguarding development chances through risk-taking enterprise.
  2. Reintroducing the portfolio through value-adding contacts.
  3. Establishment of the current industry through effective excellence and sustaining client requirements.
  4. Confirming sustainability through the responsible long-term organization(Rae, Sands and Gadenne, 2015).


· Recognized since 1914 shows the brand image.

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· Focus on public growth initiatives.

· Distributing suitability and customer service.

· Key significance to class and performance.  

· A huge number of outlets and a strong labor force of over 200,000.

· To invite customers special deals and rebates.

· Online sales by different social media sites.

· Diversity in enhancing every price points.

· Wesfarmers is the prime player in the private sector in Australia and New Zealand.

· High leading body (D’Amato, 2010).  


· Being a market leader, always under inspection for any serious decision taken.

· Practices imperfect to Australia means low physical presence.

· All the business welfares are not equally money making.  

· Local provider of power (McCauley, et al., 2013).


· Growth outside Australia.

· Across all the outlets improve superiority, facilities, and knowledge standards.

· Worker and client loyalty enterprises across businesses.

· Development in the online sector.

· Lookout to variety into new segments.

· The decrease in the consumption of energy to decrease costs and carbon footmark (Samson, Daft and Donnet, 2017).    


· Businesses facing risk from opponents.

· Financial recession leading to fallen customer confidence levels, and lower demand.

· Opponent offering particular goods and facilities at reasonable price levels.

· In the retail sector, Wesfarmers has wide competitors.

· The company has the varied range for non- players (Daft and Samson, 2014).

Wesfarmers is one of the eldest and biggest companies in Australia. The most important aim is to bring more welfare to investors. Wesfarmers believes that the growth of the company is based on the provision of investors; therefore fascinate more than 400,000 investors to buy its distributed shares. On the other hand, the company gives more emphasis to its workers (Beech and MacIntosh, 2017).

Wesfarmers has less competition than other organizations because of inadequate product and services, resources. Wesfarmers faces strong corporate threat because it has a strong occurrence in Australia and most of the trade is served for the local market.  The company revenue capability is not very strong.

Cole’s attainment is a good opportunity for Wesfarmers. Wesfarmers has an opportunity to develop its global policy. Particularly for resource and energy separation, sell of coal and energy to emerging and established countries because of the requirement of reserve developed additional in the sphere. The company also has the opportunity to expand its business through solar panels and wind power. Solar power is introduced by the Australian government. And this innovative skill will construct the upcoming for Wesfarmers.    

Wesfarmers Major Objectives

Wesfarmers restricted business depends on the trade market and indigenous manufacture. Hence, Wesfarmers avoids the effect of low- cost areas in the sphere and it will also decrease the cost of production. Wesfarmers will accept strong price competition in the impulsive future. For the company, Cole’s turnaround is a great challenge. Coles require a high quantity of security and requires to be accomplished. Coles require modifying ancient policies and social philosophy to fit in Wesfarmers (Turnbull, 2010).

Wesfarmers use modification strategy. It has 9 partitions and corporate units containing household development and workplace provisions, coal and energy, manufacturing and protection, Coles, Kmart, and Objective. And each separation was ruled by a panel of decision-making associates, generally containing managers from its business organization, the partition, and industry in the partition. Each separation was self-directed in its processes and accountable for emerging policies for its partition and industry. BCG matrix (Diagram 2) specifies the nine separations with evolution rate (West, 2014).


Their attainment policy contains 2 categories. There are an extra trade to its current partition and added partition. Howard Smith was developed as an extra trade and it was additional to Wesfarmers’ current trade. Coles was attained as extra division as it is a supplementary partition to the cluster.

Trade- level policy is deferent in Wesfarmers. As Wesfarmers have 9 partitions and each partition or each industry element might have a diverse trade policy. And each division also had numerous trade facility subdivisions at the district level. Therefore, all divisions require achieving the objective which is calculated by return on parity and return on wealth. And all partitions must have separate balance sheet as Eastwood introduced CEO in 1984. Wesfarmers also agreed the lowest rate of profit as one important presentation pointer for directors at its local and trade component level.

BCG Boston Consulting Group Matrix is in (Figure 1) displays detachment market position of Wesfarmers. The upright alliance displays the yearly market progress rate. This delivers an amount of the attraction to the market. Market progress rate is calculated from 0 percent to 30 percent. The alliance is subjectively separated into ‘High’ and ‘Low’ development at the average of 15 percent. The parallel alliance displays the comparative market share. It helps as an amount of the modest power of each division. Market share of 0.1, for example, signifies that the detachment market share is 10 percent of that of Australia market (Lowitt, 2011).

Wesfarmers Business Policies

From BCG Boston Consulting Group Matrix, it can show that Coles and household development detachment will see the business aim straightforwardly and will arrival more income to investors than other divisions. The modification has its rewards. A well-organized wealth distribution is discussed firstly. The asset could be successfully distributed to each division. It raises the effectiveness of the firm. It is easy to achieve a big firm secondly. All the separations can function repeatedly with commercial office and funding office. It declines the threat of savings thirdly. Do not place all eggs in a carrier. It feasts danger. It can deliver dissimilar policy decisions as each division has its approach and manufacturing environment fourthly. However, modification policies still have drawbacks. It is easier to hide immoral presentation. It is tough to count diverse manufacturing with a similar quantity.


Star: – Coles and Burnings.

Cash cow: – Kmart and target.

Dog: – Chemicals, Insurance, and Industrial & Safety.

Question mark: – Energy and resources (Kenny, 2013).

Wesfarmers when converted into a registered corporation, it has been specified that the aim to deliver an acceptable profit to investors and will last to persist, the vital attention of the hard work. Wesfarmers also has a status as a business which functions according to the uppermost moral values and one which donates powerfully to the societies in which they work. The main advantage that runs from the company to about 200,000 people is jointly beneficial for relations with many traders. They harvest value in our groups in a continued and liable way. The strong sustainability program, broadly described on since 1998, emphases on upholding and improving the physical environment, providing safe offices, giving all the investors with admiration and self-respect, and devoting in groups through businesses, packages, and backings. There are main followers of the arts in Australia, health and medical investigation, native events such as the Clontarf Football Academy, and teaching platforms from school to university. The previous year they have introduced the Settlement Action Plan and they are dedicated to providing occupation opportunities for Indigenous people wherever they can. They definitely consider that to have a well business they must have strong and lively societies in which to live and work and they are willingly gathering the tasks such an objective presents. Placing a dollar measurement on the advantage of the provision for societies is an inaccurate science (Jekimovics, Wickham and Danzinger, 2013).

Strengths and Weaknesses of Wesfarmers

Honesty, directness, responsibility, and confidence – stay the same. Wesfarmers economic discipline must continue with dominant significance. If they are not economically strong and popular, with an attention on their revenues to investors, they cannot endure, flourish. To fascinate the greatest aptitude by being a manager of choice, they must also reproduce the groups in which they work, and to set and aware to the values they consider are required in the societies. Wesfarmers need to see females agreed upon each opportunity to achieve their latent in service at all levels, they must do all that which can be provided to give opportunities and to inspire their latent (Moriarty, et al., 2014). In a society where Wesfarmers consider Indigenous individuals who require improved demonstration in employment, they want to deliver these opportunities and support addresses the problems and worries which may be constraining their development. Wesfarmers provide significance to the reflective accountability that will deliver a harmless operational environment for all the workers – in fact, a harmless environment for all the investors. All of these issues are essential to their probabilities of outstanding strong in the current economy. The company is pleased to say that they are gradually giving more job opportunities for females; they now hire numerous Indigenous Australians in just a few years ago, and they offer many harmless workplaces for their workers. There is still much to be done. The company straightforward opinion is that they need to create the societies that are part of tougher, improved and well places to live and increase relations. Vision is that lesser collection of agriculturalists had when they established the company way back in 1914. There will constantly be tasks for challenges. Effective companies must have the true visualization maintained by excessive policies and applied by the correct people. Under the unresolved management of Richard Goyder and his organization squad, Wesfarmers is well-organized to meet the unavoidable challenges that will benefit them in the years ahead. They have a strong squad of brilliant administrators and the administrative variations made are a suggestion of the continuous determination for improved performance and willingness for development opportunities (Mann, 2018).



Wesfarmers is the largest Australian Company. Satisfy the requirement of customer in a modest and particular base by the distribution of responsibility. SWOT analysis of Wesfarmers signifies allocating aptness and client facility. And the opportunity to expand the company through the online sector.  BCG Growth-Share Matrix shows partition market position of Wesfarmers. Wesfarmers has a position as an industry which roles according to the highest ethical values and one which contributes strongly to the societies in which they work. Wesfarmers give importance to the thoughtful responses that will provide a harmless functioning environment for all the workers – in fact, a harmless environment for all the stakeholders.


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