Discuss about the Business Entrepreneur for Success of Business.
This study has developed based on the concept of business entrepreneur. In this purpose, this study has been considered the Richard Goyder, the entrepreneur of Wesfarmers conglomerate company of Australia. In order to understand the concept of the study, the history, development and the growth of the entrepreneur has been discussed. In addition, this study is helpful to identify the role and the socio cultural background for the development of the entrepreneur. The competitive advantage of the definite mentioned company compared to the other entrepreneurs within the car manufacturing industry has also been discussed (Ayala and Manzano 2014). On the other hand, this essay is assumed to be beneficial as this study has tried to recommend the Wesfarmers manufacturing company to start different type of business in the future. In this purpose, the opportunity of the entreprenuer has also mentioned.
According to Boyett (2013), Richard Goyder, who is the entrepreneur of Wesfarmers always aimed to the business growth. As per Richard’s words, the work of the Australian Business Council has completed the implemented business policies within the industry. As a result, this reflects its business. Wesfarmers is a multinational company and specialised in the manufacturing of the chemicals and the fertilisers. In addition, Wesfarmers is also famous for the coal mining. The head quarter of this organisation is in Perth, Western Australia. It was founded in the year of 1914 as a cooperative organisation. After that, the company aimed to the service provision as well as the merchandise western Australian rural group. In the words of Casson and Casson (2013), after getting the achievement of becoming of the public sector organisation, Wesfarmers focused to the start their new business in the different sectors. In this context, the company has started the business of coal mining.
In order to discuss the growth and development of the company, it is necessary to evaluate the revenue, sales value, net profitability statement of the company. From the financial statement of the company, it can be observed that the amount of total asset has been increasing over time (Jayawarna, Rouse and Kitching 2013). Therefore, from this outcome, it can be stated that the economic valuation of the company has also been rising. As a result, the company has obtained higher rate of total assets and the value is 23.75% in the year of 2016, whereas this value of total asset was 22.51% in 2015. On the other hand, total revenue of the company has also been increased from the year of 2015 to the year of 2016. The revenue was AS$ 62,102 in 2015 whereas the value is AS$ 65,512 in 2016 (Financials.morningstar.com. 2016). The operating expenses have also increased from the year of 2015 to 2016. Therefore, it can be stated that Wesfarmers is at a good financial position and the company is developing with the increase of time. Koester (2016) mentioned that the profitability statement of this company has also increased in 2016 from the previous year and the amount was increased by AS$ 1030. Moreover, from the review of the annual report, it can be also observed that Goyder performed the responsibility for the retail business by 83 percent fall in profitability statement. Moreover, from the group of the business of Coles, Kmart and Target, Goyder has earned AS$ 407 million profitability. Therefore, Goyder added that with the reduction of the profitability statement of the business, the salary of the shareholders also reflected. As a result, it is necessary to earn higher profitability from the business in order to make the shareholders happy.
In order to discuss the role of family in case of the development of the Richard Goyder’s entrepreneurial passion, he mentioned that his great grandfather and his great uncle influenced him. Moreover, these family members helped Richard Goyder to think that his farm is a type of investment. From the view of his family members, Richard Goyder predicted that this investment would make a decent return against the capital growth over time.
According to McGowan et al. (2012), in order to discuss the socio cultural environment of the entrepreneur, it is necessary to discuss the company’s background. Wesfarmers has the faith on sustainable advantage. In this regard, Wesfarmers always tried to focus to the performance improvement of the workers. Therefore, the socio cultural background of the company is developed upon the four core valuations such as integrity, openness, accountability and the boldness. As per the law of principles, Wesfarmers deals ethically with their clients and with the suppliers.
The principle of openness is based upon the organisation’s honesty. The management of the company always tried to aim to the feedback and the ideas (Wesfarmers.com.au. (2016). The further feedback is helpful to rectify the difficulties and the shortcomings of the business. After the identification, Wesfarmers recognises the mistakes of the workers and helps them to rectify their faults in order to flourish their skills in further. This is helpful to develop the business.
As it can be observed previously that, the financial performance of this company is quite appreciable. St-Jean and Audet (2012) opined that the accountability valuation is helpful in case of decision-making procedure. In addition, the performance of the authority of Wesfarmers is seemed to be delegated. On the other hand, the management of the organisation can protect the as well as can enhance the reputation.
Furthermore, the boldness valuation is beneficial in case of making of strong as well as the bold decisions. In addition, Wesfarmers can challenge the status for the sake of growth and development of the company. Moreover, Sajjad, Shafi and Dad (2012) opined that Wesfarmers support and also encourage the working environment in order to make the socio cultural business atmosphere free of fear.
As per the statement of Parker and Van Praag (2012), Wesfarmers can identify and then develop the talent in terms of investment. As a result, the management also expects a probable return for the company as well as for the employees. On the other hand, in order to discuss the role of the family, the organisation is concerned for the improvement of skills and efficiencies of the workers. This communication and the relationship skill is needed to influence the workers to deliver optimum quality of outcomes (Sajjad, Shafi and Dad 2012).
In order to analyse the competitive advantage of Richard Goyder, it is necessary to identify and understand the competitive advantage of the company. This will positively describe the entrepreneur’s advantage. Mitchelmore and Rowley (2013) mentioned that Wesfarmers purchased the Coles group retail business to make a greater success in the Australian corporation history. Coles business includes the Coles online, Vintage cellars, Coles supermarkets etc. The Bunning of warehouse, which is retailer for the improvement of home, servicing of the home, office products etc are the products (Parker and Van Praag 2012).
On the other hand, in order to discuss the competitive advantage of Wesfarmers, it can be mentioned that this organisation has the source of the sustainability, which is absent in case of the business of the competitors. More specifically, it can be stated that Wesfarmers recruits the quality of the workers in the organisation. Ayala and Manzano (2014) cited that sustainable competitive advantage is necessary for a company to flourish the business in the global market. In a synopsis, it can be stated that sustainable competitive advantage is seemed to the assets of the organisation or the capabilities, which are difficult and provide an optimum long-term position compared to the competitors (Wesfarmers.com.au. 2016).
For the further development, Richard Goyder can start another business such as manufacturing of healthy products. In order to the discussion of future recommendation, it can be suggested that with the increase of time, the citizens of Australia are seeking for the healthy products. On the other hand, as Wesfarmers is a renowned organisation and manufacture quality of products, therefore, it can be predicted that the production of the healthy products by this company will also maintain the quality (St-Jean and Audet 2012).
As a result, Richard Goyder requires to develop the business objectives. Without the ideal business objective, the business will not be successful. After that, the management can recruit highly skilful and efficient employees, who are eligible for the production. During the making of objective of the business, it is necessary to remember that consumers are willing to purchase the quality of products in turn of affordable prices as mentioned by Parker and Van Praag (2012). Moreover, in this case, as the production of the healthy products is considered for the manufacturing, therefore, the company needs to focus on hygiene. Moreover, it can be observed that as most of the citizens are concerned about their health, they do not want to take additional calorie.
In order to discuss the background of healthy food manufacturing industry in Australia, it can be observed that the industry has been developing with the increasing of time. In this connection, it can be observed that if Richard has planned to start his business also in the production of healthy food, then it can be predicted that he can earn higher profit and also can make the business successful (Wesfarmers.com.au. 2016).
Conclusion
This overall study is helpful to understand the behaviour of the entrepreneur, Richrard Goyder in his business. In this regard, to understand his development strategy, the background of the mentioned company has been discussed. In addition, the financial position of the company has also been mentioned along with his development strategy within the industry, which is helpful to estimate the financial performance of Richard. After the evaluation, it can be observed that the company has been developing with the increasing of time. In addition, the socio cultural business environment of Wesfarmers has been discussed to understand the influential factors of his development. It depends upon the four major core valuations and the footsteps of his great grandfather and great uncle, which have been mentioned in this study. Lastly, this study has tried to demonstrate and recommend the different types of business for the mentioned organisation, from which Wesfarmers can also be successful.
References
Ayala, J.C. and Manzano, G., 2014. The resilience of the entrepreneur. Influence on the success of the business. A longitudinal analysis. Journal of Economic Psychology, 42, pp.126-135.
Boyett, I., 2013. The public sector entrepreneurâ€Âa definition. International Journal of Entrepreneurial Behavior & Research.
Casson, M. and Casson, C., 2013. The entrepreneur in history: From medieval merchant to modern business leader. Springer.
Financials.morningstar.com. (2016). Income Statement for Wesfarmers Ltd ADR (WFAFY) from Morningstar.com. Available at: https://financials.morningstar.com/income-statement/is.html?t=WFAFY®ion=usa&culture=en-US [Accessed on 6 Sep. 2016].
Jayawarna, D., Rouse, J. and Kitching, J., 2013. Entrepreneur motivations and life course. International Small Business Journal, 31(1), pp.34-56.
Koester, E., 2016. Green entrepreneur handbook: the guide to building and growing a green and clean business. CRC Press.
McGowan, P., Redeker, C.L., Cooper, S.Y. and Greenan, K., 2012. Female entrepreneurship and the management of business and domestic roles: Motivations, expectations and realities. Entrepreneurship & Regional Development, 24(1-2), pp.53-72.
Mitchelmore, S. and Rowley, J., 2013. Entrepreneurial competencies of women entrepreneurs pursuing business growth. Journal of Small Business and Enterprise Development, 20(1), pp.125-142.
Parker, S.C. and Van Praag, C.M., 2012. The entrepreneur’s mode of entry: Business takeover or new venture start?. Journal of Business Venturing,27(1), pp.31-46.
Sajjad, S.I., Shafi, H. and Dad, A.M., 2012. Impact of culture on entrepreneur intention. Information Management and Business Review, 4(1), p.30.
St-Jean, E. and Audet, J., 2012. The role of mentoring in the learning development of the novice entrepreneur. International Entrepreneurship and Management Journal, 8(1), pp.119-140.
Wesfarmers.com.au. (2016). Our impact. Available at: https://www.wesfarmers.com.au/our-impact/our-impact [Accessed on 6 Sep. 2016].
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