Since its inception in 1914 in the western part of Australia, Wesfarmers is now at the service of all citizens across Australia. Its presence is felt in nearly all sectors. For instance, the company deals in office supplies, improvement of homes, chemicals, fertiliser and energy, safety and industrial products and supermarkets. The company is literally involved in all the major sectors of an economy and across all regions of Australia.
Besides the Australian taxation laws and corporation act of 2001, Wesfarmers operates under a myriad of other regulations. For instance, the competition and consumers act of 2010. The section 2 of the completion act outlines the guidelines for fair competition. The law ensures that the competition between the big companies does not affect the interests of the consumers. Moreover, the law stipulates the requirements and the conditions under which rival companies have to run their activities. It essentially provides the incentives and a framework that enables vigorous but healthy competition for the betterment of the economy as well as services to the end users (Richards, 250). Wesfarmers is also governed by the occupational health and safety standards act of 2000. Under the act, the company is required by the law to provide good working conditions for its workers. For instance, those working in the hazardous environment should be provided with protective clothing to safeguard them against bodily harm. This act also sets out the standards of a working environment. This includes the provision of safety tools like the fire extinguishers and the general layout of the working premises. It also stipulates the handling and disposal of hazardous materials by the workers.
Apart from the safety standards act, Wesfarmers operations are also controlled by the fair work act 2009. The act was created solely for safeguarding the interests of the employees in a workplace. Being a corporation within the jurisdiction of the law Wesfarmers is required to award its workers fairly for the work they have done within a certain period. Moreover, when it comes to promotions and remunerations the workers have to be given a clear recognition of efforts. In such instances, the corporations should clearly outline why it has chosen one worker over the other for the purposes of clarity in the workplace.
The other law which safeguards the rights of the workers and in which the Wesfarmers abides by is the antidiscrimination act of 1975. Under the act, various conditions, mainly physical, which are likely to result in one individual’s recognition over the other, are ironed out. For instance the racism and gender aspects. At no time should the organization discriminate an individual because they are from a race regarded as being inferior. On the other hand, the gender of an individual should not form the basis as to why they should not be allocated certain duties within the organization.
Due to its retail activities, the company is regulated by the local government’s act of 1993. The act stipulates how business provide their goods and services. As outlined above Wesfarmers organization majors in the provision of different services and goods all of which fall under the regulations of the local governments.
There are a number of companies, which have invested in the retail industry hence competing against the interests of Wesfarmers. Woolworths presents the greatest completion as attributed to the investments it had made in the industry. The company, for instance, has invested over $500 in a bid to remove Aldi and Coles (both of which are Wesfarmers affiliates) from the business. The other large competitors for the company is the Myer, a company that owns chains of supermarkets and retail shops. The company’s capabilities are attributed to its customer friendly priced goods and large variety. Besides the two large competitors, the company faces a hard time strategizing on how to handle small competitors like the Best and Less and David Jones limited (Keith, 47).
The fact that the company was established many years ago in 1914 highlight the legacy that the business has developed over the years. Most of its competitors were established much later after Wesfarmers. This highlights the experience and the developments which the company has incorporated into its service over the years. The company’s policy to emphasise community-oriented initiatives is also another strength. This factor endears the company to the society; in return, the company acquires customer loyalty, which is strategic for its profitability and survival. A large workforce comprising of over 200,000 employees gives it an edge over its competitors. The ability to come up with inventions apart from creative works is attributed to a strong and varied workforce. Moreover, the company has developed a wide range of products, which suits the various needs tastes, and purchasing capabilities of the consumers (D’Amato, 3).
As much as the company is well established, it faces a number of weaknesses in its operations. For instance, the fact that it is a market leader makes it susceptible to scrutiny and criticisms for the decisions it makes in the industry. Besides that, its limitation to the Australian market has ended up being a barrier to its global expansion. The company employees and the organization, in general, is only experienced in handling the Australian market.
However, the company has many opportunities heralding a brighter future. The customer, as well as employee loyalty, portends a future with continuous profitability for the company. As it is a company’s health status is determined by its ability to bring the two segments (customers and employees) on board and satisfy their demands. The globalization wave has also presented the company with an opportunity to expand to the international arena. A good indicator as far as profitability and continuity of a business are concerned. The plans to improve service quality and the customer experience is also another opportunity for growth and profitability from the company. This assertion is attributed to the fact that customers will always be after quality service provisions. With these aspects at hand, the company can easily deal with the competitors.
On the other hand, Wesfarmers future is at stake due to a number of threats. The competitors, for instance, have been on the rise. Their major goal being to decimate the profits of Wesfarmers. This aspect is prominent in the retail industry. Apart from the competitors, the economic conditions have not been favourable to the company in the other sectors that it has invested in. this has resulted in the change of strategies on the part of the company. The other threat has emerged from the fact that the competitors have been offering same products as the Wesfarmers but rather at a competitive price. This fact has resulted in reduced earnings (Kenny, 20).
Generally, the Wesfarmers has weathered a myriad of challenges on its way to the top position it is today. This can be attributed to the good management decision and the favourable economic conditions. However, in order to continue enjoying the limelight it has to address the emerging issues. It is imperative upon the management that the competitors are dealt with wit the seriousness it deserves.
Richards, Carol, et al. «A toothless chihuahua? The Australian Competition and Consumer Commission, neoliberalism and supermarket power in Australia.» Rural Society 21.3 (2012): 250-263.
Keith, Sarah. «Coles, Woolworths and the local.» Locale: The Australasian-Pacific Journal of Regional Food Studies 2 (2012): 47-81.
D’Amato, Elio. «Fundamental Analysis: A Fundamentally Better Way to Analyse Companies.» Equity 24.5 (2010): 3.
Kenny, Graham. «Diversification: best practices of the leading companies.» Journal of Business Strategy 33.1 (2011): 12-20.