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HI6008 Business Enterprise Capstone Project Assignments
In case of gaining the knowledge regarding the business organization, the presentation of a portfolio is required. The study has shed light on the company named Wesfarmers and has highlighted various activities of the company in the case of gaining the competitive advantage. Defining different concepts related to the marketing, the study has tried to discuss the value creation process, by following which the company has developed its strong brand image in the market. On the other hand, it has been identified that depending on the current business practices the future growth of the company has been analyzed. In this study, it has been analyzed that leadership and communication are the major elements for driving the growth rate of the company. At the end of this study, necessary aspects of managing the business operational management have been mentioned. After the entire activity process, self-reflection has been given depending on the learning outcomes. After the self-assessment, the study also shed light on the capabilities and learning experience while working as a team member.
Part A Activities
Wesfarmrs is being considered as one of the popular retail chains in Australia. In the year 1914, the company was founded for providing coal mining, chemicals, fertilizers, safety and industrial products in lower ranges (Wesfarmers.com.au, 2018). Within few years the company has established its business in Bangladesh, New Zealand, Ireland, Australia and United Kingdom. Analyzing the gradual growth of the company it has been identified that in the year 20147, the business revenue of the company was A$ 68.44 billion. Analyzing the net income of the company in the same year, it has been identified that that it was A$ 2.87 billion (Wesfarmers.com.au, 2018). It cannot be denied that in Australian GDP, Wesfarmers has higher level of contribution. On the other hand, with near about 220000 employees, Wesfarmers serving the world. In case of analyzing the product range of the company, it has been identified that it mainly targets the middle class and upper middle class people. The headquarter of the company is in Perth, Western Australia. In the year 1984, Wesfarmers became the largest retail conglomerate in Australia (Wesfarmers.com.au, 2018). In the year 2007, Wesfarmers brought Coles group with $22 billion, which was the largest take over in Australian retail history.
Concepts of marketing through 4ps of marketing framework
Marketing Mix is being considered as the crucial tool that helps to understand the service and products, which can help to satisfy the needs of the clients (Armstrong et al. 2015). The marketing mix can be executed with the 4ps such as product, price, place and promotion.
Wesfarmers has established its popularity in the market by introducing the diversified products in the market. Due to its diversified portfolio, gas processing, coal mining, fertilizers, safety and industrial products have been introduced by the company (Ke and Li 2015). In case of Chemical products, it produces ammonium nitrate and ammonia in Western part of Australia. It has been identified hat near about 50% of the ammonium nitrate by Wesfarmers is being produced in Queensland. In case of gas product, it can be said that Wesfarmers has involved itself in LNG and LPG production. In case of the industrial and safety product category, the company produces NZ Safety, Greencap, Coregas, Bullivants, Blackwoods Protector, GotStock, Packaging House, Hard Yakka and many more (Wesfarmers.com.au, 2018). Not only in the production purpose but also the company has involved itself in insurance business. In the year 2014, the company started its insurance business such as premium funding operations, insurance broking and OAMPS Insurance brokering practices. It has been identified that the company has also developed its strong brand image in the monument premium financing business. In the year 2014, the company Wesfarmers established the insurance underwriting operations including the WFI and Lumeley brands in the Insurance group of Australia (Wesfarmers.com.au, 2018).
Analyzing the pricing structure of the company it can be said that Wesfarmers has established its business in case of providing good quality of products in reasonable ranges to the people so that large number of people will get the chance to abele the products (Shivany, Thirunavukkarasu and Kajendra 2015). It is true that from the last five years the decent growth rate has been shown in the company. In the latest research on Wesfarmers, it has been identified that, the total sales growth has reached $49.30. In case of Kmart stores, the 10.25 % of the growth regarding customer transaction has been shown. However, in case of target, the declining sales of 2.0% has brought the disappointment for the company. On the other hand, in case of Bunning New Zealand and Australia, the growth rate reached 8.9%.
It is true that within few years the company has expand its business in Australia, Bangladesh, Ireland, United Kingdom and New Zealand. In case of expanding its business the company has adopted the market and acquisition strategy. As Wesfarmers is the leading brand in Australia, therefore, it can be said that depending on the location of the target market, the company has established its business.
Promotion is being considered as one of the important elements in the marketing practices (Ghapanchi, Wohlin and Aurum 2014). In case of driving the decision making process of the customers the effective promotional activities are required. In case of Wesfarmers, it has been identified that in order to gran the large number of customers attention, the promotion has been done through the social media like Face, book Twitter and Instagram. On the other hand, the company has done celebrity endorsement, TV advertising and campaigns.
Market research through SWOT analysis
Research and development practices are very important in case of understanding the strength, weakness, opportunities and threats of the company. Depending on the SWOT analysis framework, both the external and internal situation of the company can be analyzed.
Biggest strength of the company is it has established its strong brand image in the market (Johnston et al. 2017)
Due to its market popularity it has developed strong customer base in different countries in the world.
Due to availability of technological equipment, with the increasing productivity, sale revenue has been increased.
Internal conflict is the main weakness of the company
Due to lack of monitoring the operational activities are being hampered.
Recently due to controversies regarding the employee turnover and overtime working practices, the brand image of the company can be influenced.
With increasing support from the government and improving GDP, the company will get opportunity to expand its business
After technological advancement, the rate of productivity has been influenced, which indirectly impact of the sakes revenue f the company.
With increasing business opportunities in the market, the availability of the competitors is also increasing (Singh-Peterson and Lawrence 2015).
In case of foreign countries, due to the various exchange rate, the company can face threat.
On the other hand, in this sector, the financial risk is the biggest threat.
(Source: created by author)
Competitive advantage through Porter’s five forces framework
Depending on the market research, the growth trend as well as the competitive advantage can be analyzed. The term competitive advantage indicates the process of gaining the superiority in the market that can help to deal with the business practices. In case of analyzing the competitive advantages of Wesfarmers, Porter’s five forces framework has been discussed.
Threats of new entrants
It cannot be denied that with the increasing support from Australian government and increasing opportunities in the market, new organizations are started developing (Mathooko, and Ogutu 2015). However, in case of Wesfarmers, it can be said that the threats from the new entrants is low as the company has already established its strong brand image in the market, therefore, new entrants will not be able to c6reate challenges for the company.
Threats of substitute products
It can be said that the threat of substitute products can be high for Wesfarmers. Depending on the customers’ needs, the competitors are producing the sale types of products in lower ranges for giving the tough competition to Wesfarmers.
Bargaining power of suppliers
Bargaining power of the suppliers plays an important role in case of driving the rate of profitability of the company (Van Alstyne, Parker and Choudary 2016). Suppliers are also very influencing for setting the price structure of the company. In case of Wesfarmers, it can be said that it has its own production unit. Therefore, the threat from supplier for the company is low.
Bargaining power of buyers
It is true that the bargaining power of the buyer is high in case of Wesfermers. It has been identified that with increasing availability of the companies in the market, customers get various options become purchasing any product or service.
Threats of competitive rivalry
It cannot be denied that Myer, Woolsworths, Best & Less and Hs home are the major competitors of Wesfermers in the market. These competitors have also developed strong brand image in the market, which can impact on the customer base of the company.
(Source: created by author)
Innovation indicates the changing process that helps to create the effective products and ideas that cam help to gain the customer attraction (Ronningen and Lien 2014). On the other hand, it cannot be denied that depending on the creativity and innovation, the competitive advantage as well as rate of profitability and productivity can be improved. In case of Wesfermers, it can be said that main USP of the company is creativity and innovation. With the initiative of innovation and creativity, the living standard of the people can be changed. In case of Wesfermers, it has been identified that company has tried to bring the innovation through leadership and communication.
Figure: Innovation model for creating the competitive adv antage through the HR
(Source: Rothaermel 2015)
In the above diagram, it has been discussed that depending on the innovative business model, it becomes easier for the organization to maintain the sustainable position in the market. Following the above model, Wesfermers has established strong organizational culture in the workplace.
Management competencies through Knowing, doing being model
Figure: Knowing doing being model
(Source: Boudreau and Fuks 2015)
Knowing, doing and being are the three important components in case of analyzing the management competencies. It is true that in case of implementing the managerial operations as well as business models, Wesfermers follows the Knowing doing being model. It is mentioned in this study that depending on the experimental learning practices, the issues are being solved by the company. It is influential in case of identifying the distance between the implementation process and challenges. It has been identified that depending on the practices of interdependence between management competencies, the critical thinking process of the people associated with the organization can be developed.
Importance of strategic change
In the words of (), not only for the big influences, but also change can be implemented for the small implementations in an organizations. In case of Wesfermers it has been identified that by following the Kotter change model, the creative changes have been introduced in the company.
Figure: Kotter chance model
(Source: Chappell et al. 2016)
By following the 8 steps of the change model, Wesfermers has examined the opportunities which have been analyzed from the research and development practices. Identification of true leader in case of developing the change model has been discussed. By following this Wesfermers has introduced its effective leader with the transformational leadership qualities. It has been identified that depending on the changes the value are being created, which is important for developing the mission and vision of the company.
In the activities different business models and marketing tools have been discussed. It has been mentioned that depending on the business models, the financial as well as the marketing structure of the organizations can be improved. Analyzing the pillars of the business model of Wesfermers, below diagram has been shown.
Figure: Pillars of e-business model
(Source: Foss and Saebi 2017)
In the above model, is mentioned that product innovation, infrastructure management and customer relationship are important components for developing a successful business organization. Identifying the growth variables of Wesfermers, Two-by Two matrix and Structural equation model have been discussed. In the workshop, analyzing the mathematical distribution of the customer base of Wesfermers, the bell curve has been shown.
Figure: Bell curve
Source: Ma, C. and Schapira 2017)
After the introduction of globalization, with the increasing availability of technological equipment in the industry, the rate off productivity has been improved. On the other hand, using the search engine, different marketing related tools have become easier to understand. With technological advancement, social media has become one of the important medium for marketing in case of Wesfermers (Small et al. 2016). It has been identified that depending on the digital skills, the rate of employment has been improved. It is true that after the introduction of digital skills, recruitment and selection process in an organization have been changed. Using the digital skills, large number of communities have been involved in the development process. It has been identified that depending on the technological advancement, the sale rate as well as the sales revenue of the company has got improved.
Business intelligence is being considered as the technology driven process, in which the information and data are being presented. The business intelligence also very important in case of incorporating the effective business practices for maintaining the standard business performances. It has been identified that depending on the effective business intelligence, the data analysis can be done n right manner. On the other hand, it has been identified that using the business intelligence Wesfermers has introduced the effective data analysis process in the workplace.
Communication and leadership
Leadership plays an important role in case of developing the organizational culture. It has been identified that depending on the leadership practices the organizational culture as well as the performance of the employees can be improved (Singh-Peterson and Lawrence 2015). In case of Wesfermers, it can be said that transformational leadership is being followed by the company. In case of dealing with the external and internal challenges, the transformational leadership strategy is very effective. It can be said that it is responsibility of the leader is to develop the creative skills of the team members. By involving the employees in decision making process, innovative ideas are being introduced in the workplace.
Strategic mindset and knowledge development
Strategic mindset skill is very important in case of dealing with the business challenges. It has been identified that in case of improving the organizational operations and foster innovation in the workplace the effective strategic knowledge development process is needed. Using the effective strategies, the competitive advantage can be gained by the company. In case of business expansion, the strategic knowledge development process is required. The company namely Wesfermers follows the marge and acquisition strategy for gaining the strategic advantage in the market.
After the implementation of business strategies, in order to analyze the growth, performance matrix is important. In the workshop Aglie measurement model has been discussed which was followed by Wesfermers. It is true that in case of increasing the productivity of Wesfermers, the model was beneficial
Figure: Aglie measurement model
(Source: Gren, Torkar and Feldt 2015)
Figure: Performance improvement analysis model
(Source: Rothwell, Hohne and King 2018)
In the performance improvement model, rate of productivity, customer loyalty rate and marketing are being analyzed. The model ensures and identify the requirement for gaining the attention of clients. By following this model, the range of productivity of Wesfermers have been improved.
Reflection of the activities
I being strategic approach is very important in case of analyzing the activities. In case of discussing the activities I have developed a systematic plan where every activities have been mention. In the initial step, marketing concept has been clarified. In case of discussing the concept of marketing the 4ps framework has been discussed. In the framework, the company namely Wesfermers and its price range and diversified products have been discussed. Analyzing the target market of the company the lower product ranges of the company has been mentioned. In this process I have learned that price, product. Place and promotion are equally important for knowing the marketing concept. In the second part, I have learnt about the importance of research and development. By collecting both the primary and secondary data, the internal and external environment analysis have been done through the SWOT analysis framework. As per my understanding, competitive advantage is very important for gaining the unique position in the market. In the workshop I have learnt about the uniqueness of Wesfermers that made it popular. Using Porter’s five forces analysis framework, the competitive advantage and its importance have been highlighted. As per my understanding, the role of digital skill, business intelligence and change management are important for bringing the innovation in workplace. By following the strategy the company named Wesfermers has gained the popularity in the market. On the other hand, in case of developing the organizational culture, leadership practice has been highlighted. I have learned that transformational leadership is very effective for dealing with the business challenges. It has been identified by me that change model is very important in case of bringing the innovation in the workplace. On the other hand, I have learned that analyzing the performance of the organization, I need to focus on performance matrix. Wesfermers has used the Performance improvement analysis model and Aglie measurement model so that it will be able to understand after implementing the improvement strategies the organizations is developing or not. During the learning process, I have analyzed that it I will be able to introduce the change management practice I my organization, it will be beneficial in case of managing the growth in my organization. On the other hand, with increasing technological demands, it can be said that if the involvement of social media in brand image development process can be included, it will be beneficial for bringing the improvement in sales revenue of the company. I have also learned from the workshop that if I will be able to implement the effective leadership practices on my organization, it will to deal with the challenges in better manner.
Self-reflection regarding working in a team
I strongly feel that team work can pay an important role for reducing the knowledge gap. I also believe that knowledge can be easily transferred by the team members in the team. Communication as well as creative skills can be developed in a team. In case of managing the activities, I have learned about different theories such as Tuckman’s theory of team development. I believe, it was beneficial for me to understand the leadership techniques. As a leader I have earned that How to deal with my team so that I will be able to discuss the strength and weakness of my plan with them. During the interaction with the team members, I have analyzed their skills, which can be used by me in future. After understanding my responsibilities I have conducted the plan by following which the team development plan will be introduced.
By using the strategies I have decided to discuss with my team members. In case of analyzing the organizational issues, I have decided to discuss the workshop activities with the team. I have also mentioned that in case of dealing with the organizational challenges, the effective team management is needed. On the other hand, it is true that depending on the discussion, I have analyzed that I was able to clarify the doubts of the team members. I have used the self-organizational skills to motivate the team members towards achieving their goals. I appreciated each of the employees so that they will be able to learn the activities in right manner. After conducting m own evaluation as a leader, I focused on the personality test, where I will be able to discuss the responsibilities with my team member and will also be analyze if they will be able to fulfill them or not. I have used the trait theory and transformational leadership theory, for providing better training the team.
In the assessment I has been identified by me that the in case of portfolio, proper knowledge and skills are required. On the other hand, it has been identified that using the activities helped in the workshop the marketing concept has been clarified to the audience. By highlighting the company namely Wesfermers, business operational strategies hand knowledge transferring process have been discussed. Depending on the activities self-reflection has been done. At the end of the study, the effective qualities and different leadership practices have been mentioned, which are required in case of maintaining the business strategies in the workplace. It is also mentioned that through clarifying the activities to the team members, both the personal and professional skills of the team members have got improved, which are the part of leadership practices.
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