Business Strategy Assignment Help

Business Strategy Assignment Help

Business Strategy Assignment Help

Introduction

This business strategy assignment help report is generated in concentration with business strategies which will provide a set direction to Wesfarmers to move on the path of success and sustainability. It is an Australian conglomerate company. Headquarter of Wesfarmers is in Perth, Western Australia. In 2015 Wesfarmers generated the revenue of $62.45 Billion which is a huge amount. Wesfarmers wants to increase its revenue and wants to grow in the competitive market. So, to grow in the marketing strategy it is necessary that organisation should do its environmental analysis with the effect of which information regarding internal environment and external environment of the company will be gathered. To gather the information related with internal environment of the company SWOT analysis will be done and for external environment PESTEL analysis of the company will be done so that effective set of information could be gathered and proper strategies related with the internal as well as external environment could be generated. These strategies will help the company to sustain in the market and will help it to attain competitive advantage in the market.

Internal Analysis

Internal analysis of a company helps in gaining proper set of information related with various internal aspects of the workplace which will help Wesfarmers to prepare proper set of plans so as to sustain in the market and to manage the work process accordingly. For internal analysis of Wesfarmers, SWOT analysis will be done which will provide strengths, weaknesses, opportunities and threats of the company.

Wesfarmers SWOT Analysis

Strengths

Weaknesses

  • Monetary assistance is provided to Wesfarmers which makes a strong financial status of the company.
  • There are various business units if Wesfarmers which helps in building positive image of the company in the market (Njoku, 2015).
  • Have an effective control over the domestic market which helps in attracting effective number of customers towards the products and services of the organisation.
  • Wesfarmers is doing business in a highly competitive market and there are various big names and brands in the market that have a huge share in the market.
  • Wesfarmers is dealing in small business units which are a weakness of a company.
  • Wesfarmers have a very vague cost structure which requires an improvement so that cost of the company could be saved.

Opportunities

Threats

  • There are various opportunities available in the new market which could help Wesfarmers to grow.
  • Acquisition is also a great opportunity for the company which will help it to grow.
  • Market in which Wesfarmers is dealing have a growing economy which will help the company to bring new products and services and will help in attracting more people towards the company.
  • Wesfarmers is dealing in a growing competition which results in lowering the profitability which could affect the financial aspects of the company.
  • Rise in the cost of raw material can affect the market of Wesfarmers as with the rise in the cost of raw material will result in raising the cost of the products which will affect the sale of a company.
  • Government regulations are also threat to the company. Rules and regulations of the government could affect the internal process of the company (Raman, 2011).
  • Wesfarmers also have a threat of new entrants in the market as any new entry in the market could affect the sale and customers of the company.

SMART Analysis of Wesfarmers

SMART analysis will provide specific, measurable, attainable, and relevant and time bound objectives of the company. With the help of SMART analysis information related with the company revenue and various strategies will be gathered with the effect of which company would be able to generate more revenue and will be able attain competitive advantage in the market.

Specific
Main purpose of Wesfarmers is to provide satisfactory return to the stakeholders. Stakeholders of the company play a very vital role hence it becomes necessary that Wesfarmers should provide effective return to them so that they could satisfy help the company to grow. Wesfarmers acquired Coles, Target, and K-mart and is looking to expand its business in near future. Acquisition is the strategy chosen by Wesfarmers so as to expand its business in the market

Measurable
It is expected that in 2017 earnings of the company will reduce to less than 12 months and the price of export will also decrease. Stock market of Wesfarmers is stable and it has high credits in the market.

Attainable
Wesfarmers is trying to develop optimistically as report shown the profit growth of 14.8% for the year. Company is trying to list at $2.6 billion before Christmas which is an attainable objective.

Realistic
At 135 basis points Euro of Wesfarmers are prices at 500 million and five year bonds over mid swaps offers made by Wesfarmers are realistic (Raman, 2011).

Timely
Wesfarmers provide products and services so as to meet the needs of the customers. Wesfarmers is aiming to offer the vertical quote which is to be completed till June 2017. These were certain SMART objectives of Wesfarmers which are provided so that company could manage its revenue as well as its profit margins. Company is aiming to provide effective services to the target customers and trying to fulfil the needs and wants of the stakeholders present in the market. Objectives of Wesfarmers are specific, measurable, attainable, and realistic and time bound.

Business Strategy

Wesfarmers should develop effective set of strategies, as these strategies will help the organisation to manage the internal as well as external factors which could affect the business. Developing a business plan is necessary for every organisation as these strategies enhance the stability of the organisation which ensures that organisation could deal with competition in an effective manner (Jay, 2014). Hence, to sustain in the market Wesfarmers could use Ansoff Matrix as this matrix will help the organisation to make appropriate decision related with what steps it should take to deal with the competition of market and to attract more customers towards the products and services company is offering.

An off Matrix
According to An off Matrix there are 4 options available with the organisation which helps it to sustain in the market. These Four options are market penetration, product development, market development, and diversification.

Hence, with the analysis of market situation and position of Wesfarmers in the market the most suitable way available with the organisation is product development and market development. Introducing new product in the market will attract the people. Reason behind it is that people present in the market get attracted towards the new product and prefer to purchase the same. On the other hand bringing the products and services to the new market will lead to add value to the brand. Wesfarmers could introduce its products to the new market and could increase its customers which will help in increasing the revenue of the company (Srdjevic, et. al., 2012).

Conclusion

At the end it could be concluded that internal and external environment of Wesfarmers is pretty good and organisation is doing well in the market. With the analysis it was developed that Wesfarmers have clear aims and objectives which will help in organisational sustainability. There are certain things that Wesfarmers should keep in mind like it should develop the strategies for internal policies and should try to bring the strategies which should be related with the government rules and regulations. Doing so will help the organisation to follow all government rules and regulations which will help in the smooth functioning of the organisation. Wesfarmers should develop new product and should move in the new market so that it could attract more customers and could generate more revenue from the market.

Future Recommendation

  • Wesfarmers should use innovative promotion and marketing strategies so that its products and services could be promoted in the market and people could get attracted towards them
  • Online stores will help in increasing the sales of Wesfarmers as in present scenario people prefer to buy the products online rather than going to the stores and purchasing the products.

  • Above is the data showing online spending of the people across the world. Hence it could be seen that online selling will help Wesfarmers to increase its customers and will help in generating more revenue in near future.

References

  • Chandra, P. (2014). Projects: Planning, Analysis, Selection, Implementation, and Review. McGraw Hill Education (India) Private Limited; Eighth edition.
  • David, F. R. (2013). Strategic Management Concepts and Cases: A Competitive Advantage Approach. PHI Learning.
  • Jay, B. B. (2014). Strategic Management and Competitive Advantage: Concepts. Pearson Prentice Hall.
  • Njoku, V. (2015). Success Plan and Positioning Strategy. Cengae Learning.
  • Raman. (2011). The Decision Book Fifty Models For Strategic Thinking. Profile Books.
  • Srdjevic, Z., Bajcetic, R. & Srdjevic, B. 2012, "Identifying the Criteria Set for Multicriteria Decision Making Based on SWOT/PESTLE Analysis: A Case Study of Reconstructing A Water Intake Structure", Water Resources Management,vol. 26, no. 12, pp. 3379-3393.
  • Yin, N. 2016, "Application of AHP-Ansoff Matrix Analysis in Business Diversification: The case of Evergrande Group",MATEC Web of Conferences, vol. 44, pp. 01006.