The Cooperative Institution Of Western Australia Commerce Essay

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Wesfarmers was established on June 18, 1914 which is composed of six business divisions. Basically, the organization was first known as a cooperative institution for the farmers in Western Australia. Wesfamers, as cooperative, focused on the provision of quality products and services to help the rural community in the region. In addition, the said six divisions performs different function such as manufacturing and marketing of industrial equipments and gases, retailing of garden and improvement products and other building materials, production and coal mining, distribution of safety products and industrial, marketing and manufacturing of chemicals for industry and wide acre of horticultural fertilises, insurance and services, investing of rail transport and others. With these wide contexts of their services and products, Wesfarmers become known in the market place of Australia.

With respect to the given information, the following presentation will show the SWOT analysis of Wesfarmers. Actually, SWOT analysis can provide a framework for identifying and analyzing strengths, weaknesses, opportunities, and threat. This can also provide an impetus to analyze a situation and develop suitable strategies and tactics, a basis for assessing core capabilities and competences. Moreover, this can provide the evidence for, and cultural key to change and a stimulus to participation in a group experience.


Ø Wide experience in Australian market - as they have been in the business for almost 18 decades now, their directors can consider their experience in operating venture as a strength.

Ø Reasonable price offerings of products and services- since they able to keep their overheads low, this allows them to have better control of their prices. This is considered a strength because naturally, people would look for a reasonably-priced place to stay in that equally do not sacrifice service and product quality.

Ø Already has developed a good reputation for value for money - since they have been operating for great number of years, they already have built a name for themselves, attracting a number of loyal customers along the way.

Ø Good industry skills - the directors of different divisions of Wesfarmers are natural for the business that they ventured into, both being outgoing and friendly, the most important public relation skills that motel guests look for.


Although, the company has seen much strength, Wesfarmers also encompasses some weaknesses.

Ø One of its weaknesses is the less confidence of some of its shareholders. Even though the group was successful, some of the shareholders are not confident which was evidently justified by the report of Malcolm Maiden at Maiden argued that Wesfarmers' own share price undermined the value of its share-heavy takeover proposal which is actually reflecting that group's own shareholders are less confident.[2]

Ø Another weakness of Wesfarmers is their in ability to have a system that will enhance their billing processes.[3] The advancement of technology nowadays is one of the weaknesses of Wesfarmers. Thus, it is suggested for the group to have focus in their research and development department.

Ø Actually, the group was expressively dominating in the market of Australia but with regards to the current global financial crisis, Wesfarmers are dragged by the current condition of the country. Thus, another form of their weakness is their mutual bond to the economy of Australia.[4] However, if economic growth grows at a rate greater than inflation, then the total of business earnings should be dragged along as well.


Ø To increase profitability in the face of increased demand for their business offerings - this opportunity came from the social areas in the rise in the number of population and changes to consumer preferences.[5]

Ø To better improve business performance - due to the presence of more competitors, they have the opportunity to develop the business' core competencies so that they can still get ahead of the game.

Ø To expand business coverage - through excellent management and marketing activities, the Wesfarmers could enlarge the business, not only increase the size of the physical facilities and improve offered amenities, but also to expand market scope, possibly to other countries.


Ø Continued increase in the number of competitors.[6] Increase in competition would mean tougher business development.

Ø Inability to cope up with modern developments[7] - this serves as a serious threat, as the competitors have shown that they have the capacity to include modern technology in their services and products offerings.

Ø Aggressive competitors - as seen in the current environment of Australia, there are numerous businesses that offer services and products similar to Wesfarmers.[8] This is, off the bat, the most aggressive competitor that the business has to face for the time being, aggressive with respect to the quality of product and services offerings.


Ryan Peter. “Coles board recommends $22b takeover offer”, ABC News online. (2007).

Wesfarmers. “About”. Available at: <> Retrieved: October 2008.

Malcolm Maiden. "Coles has a lot of lost ground to make up." Available at:<>. Retrieved: October 2008.

Salmat Businessforce. Wesfarmers. Available at:<>. Retrieved: October 2008.

Scott Francis. "What price Wesfarmers?" Available at:<>. Retrieved: October 2008.

[1] All information are from

[2] From

[3] From

[4] From

[5] From

[6] Wesfarmers. “About”.

[7] Ibid.

[8] Ibid.