Strategic information system is an important part of an organisation that is used to take various decisions. It offers competitive benefits to the organisation. It helps the organisation to portray their requirements to the target audience at minimum cost. In this report the study is undertaken on Wesfarmers supermarket (Mitchell, 2015). The internal and external analyses of the organisation are performed which could help Wesfarmers to improve and simplify its operations. In this report, a proposal is also prepared for Wesfarmers that will help them to design strategies to overcome from al the barriers and challenges.
Background
Wesfarmers is an Australian company that is located in Perth. The company deals in chemical industry and has retail stores, sells safety and industrial product, fertilizers and many coal mining products (Mitchell, 2015). It is one of the largest private sector in Australia with around 2, 20,000 staffs and more than 5,30,000 shareholders. The company was established in 1941 and offers services to Australian farmers. (Kilroy and Schneider, 2017) The company has expanded its services and have listed now in Australian stock exchange.
Industry
Wesfarmers is an organisation that operates in many sectors. In this report the analyses is carried out by considering the retail sector of an organisation. Retail industry is considered as one of the largest sector in Australia (Kilroy and Schneider, 2017). This industry is based on trading of all non-specialized products like groceries and cleaning products. From the research, it was found that retail markets are more profitable as compared to small businesses (Sun, Strang and Firmin, 2017). These retail markets contribute in higher economic growth of the organisation.
General Environment Analysis of Wesfarmers
The Environment of Industry
In any retail industry the bargaining power is one such factor that affects the profit margin of the company. The barging power of buyers and suppliers are listed below.
The competitive threats
The biggest competitors of Wesfarmers are aldo and woolworths. Still wesfarmers bet these companies through its Cole super markets. The earning of Cole supermarket is affected by the new innovative strategy by other supermarkets. Aldo make use of agile logics so that operatiosn are completed in an effective way (Connell, 2016). The competitors are working to capture the customers by offering better services and lower price. Woolsworth offer better discounts such as buy 1 get 1. Coles supermarket have still maintained the position in the Austrillain supermarket. The motivation behind giving stock and administrations toward the Western Australian was the progression of time (Pearlson, Saunders and Galletta, 2016) . The organization developed into a noteworthy retail combination and furthermore got recorded in the Australian Stock Exchange.
Opportunities and Threats
Opportunities- Wesfamers have been engaged in diversified business platform and have also expanded the business in international market. They have enhanced their services in different country due to the possibility of technological innovation. They have also initiated various customer loyalty programs that have enabled customers to sustain in an organisation for longer time (Pearlson, Saunders and Galletta, 2016) . There have been various innovative advancements with the assistance of which it can without much of a stretch improve its administrations, quality and experience benchmarks crosswise over stores (Ogiela, 2015). It can likewise take client and worker unwaveringness activities through which it will have the capacity to guarantee its prosperity for a more drawn out timeframe
Threats- The biggest threat for the company is its competitors. The competitors of wesfarmers have also tried to capture market by coming up with new strategies so that they can increase their market share. The competitors have affected the sale of wesfarmers and have lowered the loyalty by the customers (Ogiela, 2015). More specialized products and services are being presented by the competitors at the equitable prices which lead to a great threat for Wesfarmers.
After undertaking the internal analysis it was found that success of an organization is dependent upon the tangible and Intangible Resources. Considering the case of wesfarmers, the tangible resources cover a good human staff of the organization (Willis, et. al, 2018). Wesfarmers have approx. 220,000 employees that work towards he same objective. The intangible resources are the ways through which brand image could be sustained. According to the research, it was found that wesfarmers have very strong tangible and intangible resources.
Discovering the capabilities
The main capability of the organization is to maintaining brand image, effective workforce and its supply chain. They focus mainly on building a strong workforce so that cultural conflicts are not faced by the organization. Wesfarmers staff supports the organization to meet their overall objective (DeLone and McLean, 2016). The workforce tries to maintain the internal operations of the organization along with the external operations.
The reputation of Wesfarmers has been maintained due to its Cole industry. Coles supermarket have diversified the products in general merchandise, groceries, fresh food, fuel, liquor and financial services through its online channels and national store network to more than 20 million customers every week (DeLone and McLean, 2016). Apart from that, Wesfarmers identified various challenges faced by an organisation that may impact the activities of environment (da Silva, 2012). The supply chain strategy is the greatest capability of Wesfarmers as it helped them to increase overall profit. The reason behind this effectiveness is adoption of advanced technological capabilities.
The supply chain strategy has played an important role in gaining the competitive advantage and capturing the customers (Peltier, 2016) . It helped Wesfarmers to manage their savings and design strategies so that overall profit could be improved.
After analysing the operations of Wesfarmers it was recommended that updated software’s should be used that can make all the operations automated. Thus, Wesfarmers use software’s that stores all the information about the customers like their name, addresses, contact number etc. in a single go. Thus, Wesfarmers can use this information to send special offers so that they can build trust among customers. Apart from that, all the information is secure and it makes sure that confidentiality and integrity of information is maintained (Biddle, 2016). Wesfarmers use various strategies so that threats of security breach could be resolved. Various prevention and detection methods are available so that security can be maintained and data could be secured by intrusions and vulnerabilities.
Apart from that, Wesfarmers can also use an information system that can manage internal working (Biddle, 2016). Wesfarmers have integrated various solutions in the working process so that operations are completed effectively. Making all the operations integrated will enhance the productivity.
The assessment of the proposed data framework arrangement gives that the prerequisites the business necessities of Wesfarmers can be enough and fittingly met after the selection of such framework arrangement. It is additionally prescribed to keep up the security benchmarks by giving prime significance to the security of client information. This is conceivable with the assistance of receiving productive data framework arrangement. This will additionally prompt improvement of the brand notoriety in the market. Additionally, the combination of the framework with that of various divisions will help in providing food the necessities of the business in a successful way.
Conclusion
From this report, it can be concluded that to offer competitive advantage to the business strategic information system plays an important role. In this report, the study is carried on the Australian organisation that is Wesfarmers. The internal as well as external analysis of the organisation is carried out so that working process could be improved. The general environmental analysis is carried out to so that better strategies could be designed to improve the overall internal operations. The major competitors of Wesfarmers are Aldi and Woolworth. These competitors are major threat for the organisation as they come up with new innovative strategies. The internal analysis of Wesfarmers delivers tangible and intangible resources that have helped in contributing towards its strong position in the market. The detail study about the company helped in understanding certain factors that could help in betterment. Some of the factors are supply chain; brand reputation and effective workforce comprise the capabilities of Wesfarmers. At the end of this report, an information system solution is projected for Wesfarmers that will support the organization to maintain its security and improve all the internal operations.
References
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Mitchell, S. 2015. Wesfarmers strategy gets tick as profit growth slows, [Online]. Available at: https://www.smh.com.au/business/companies/wesfarmers-strategy-gets-tick-as-profit-growth-slows-20150521-gh6ob8.html [Accessed on: 20 August 2018].
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