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Organizational Structure Achieve Marketing Objectives

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The relationship between the management department in an organization is defined by the management approaches and systems that are developed by the organizational management. The term “management” is defined as the process coordinating, controlling, planning and organizing the organization activities to ensure that the organization is moving towards achieving it set goals and objectives. The decisional making process in an organization is explained to be relevant when the top management of an entity critically coordinate, plan, control and organize the organizational primary activities. Therefore, the organizational management has a critical role to play while ensuring that they meet all stakeholders interest before reaching out to them based on decisions and judgment they make. The study will analyze the management context of Wesfarmers with regard to the business activities and operations.

Wesfarmers Limited is an international company with its main headquarters in Perth, Australia, this company is mainly operating in Australia and New Zealand markets. The company deals with the production of chemicals, coal mining, safety products and fertilizers. In 2016, Wesfarmers Limited is noted be ranked at the first position as per the revenue earning, during the year the company was in the top with a revenue of AU$65.98 billion followed by Woolworths and BHB Billiton companies consecutively (Datamonitor (Firm), 2000).

Wesfarmers Limited is categorized as the largest employer in the Australia, in 2016 the company total employees were over 205, 000. The mission of the company is “To provide satisfactory returns to the shareholders through financial discipline and exceptional management of a diversified portfolio of businesses”. The organization missions and visions are achieved by the strong management capability to be accountable in promoting strategic development and strategic execution. Wesfarmers Limited aims to meet the market demands by providing goods and services which are based on professionals as well as the competitive foundation (Biddle, 2016).


Wesfarmers is trying to maintain a sustainable business relationship with its stakeholders, they also intend to provide and ensure that employees are working in a good workplace where they can operate with limited limiting factors (Bryman & Bell, 2015). The organization management is also focusing on implementing on the motivational strategic approach, the company intends to award employees for their good and outstanding performance, employees are also encouraged to take advantage of the organization program of introducing them to the business opportunities, this is also one way of motivating them. By motivating employees, their performance will improve and they will aid in the increment in the overall performance of the organization where productivity will also increase (Champoux, 2016).

The corporate governance of Wesfarmers Limited is containing the system rules, practices as well as the process which are used to direct and controlled the organization. According to Wesfarmers Limited 2016 annual report, the company is proud of the systemic approach to governance, which has contributed to coherent relationship between stakeholders and shareholder of the company (Wagner III & Hollenbeck, 2014). The company top management is the primary advocates of corporate governance, they are committed to providing satisfactory returns to the company shareholder as they perform to promote the corporate governance of the company to the level of interest of shareholders (Fan, Wong, & Zhang, 2013). Wesfarmers Limited have complied with the rules and regulation policies instigated by ASX Corporate Governance Council's Corporate Governance Principles and Recommendations. Wesfarmers Limited is dedicated to certifying that the competition between the board of directors is constituted as part of company strategic approach to accomplishment of goals and objectives. This implies that the company is encouraging that individual who have enough knowledge, skills, expertise, experience and diversity while making the decision relating to the company business activities (Goetsch & Davis, 2014).

However, the company is committed to ensuring that all business activities carried out in every section are complying with the laws and regulations of any country it operates. They also focus in ensure that promote ethical business activities by acting as an example in the market, they operate under the impact of their corporate values of governance that comprise honesty, integrity, fairness, and respec (Ferrell & Fraedrich, 2015).


Knowledge management and E-commerce

Knowledge management and e-commerce are the critical management approach which is important to any business organization. The purpose of focusing on knowledge management and e-commerce implementation is to ensure that the business enterprise is at the top level of competitive markets. Knowledge management is the defined as the systemic management of an enterprise knowledge assets with the aim of creating values as well as meeting the tactical and strategic management approach (Jeston & Nelis, 2014). It comprises the essentials of initiatives, process, systems and the strategies that are used to ascertain the storage, sharing, enhancement and creation of relevant knowledge to the organization. E-commerce on the other hand in defined as the process of buying and selling of goods and services, transmitting the fund and data electronic network. E-commerce implies that the business transactions can occur as either business to customer, consumer to business or business-to-business (Cameron, Sayers, Sacks, & Thornt, 2015).

According to Caitlin and Fitzsimmons Wesfarmers Limited advocated its stakeholders, especially its operating units to implement the digital organization operations. This proposal was done by the top organization management was also proposed in the year 2003 but it lacks implementation process due to lack of enough digital and e-commerce knowledge. The research indicates that Wesfarmers Limited could increase its profits and revenues by $ 1 billion during 2014 financial report. Currently, the company has focus to meet the demand of the competitive market by ensuring that they implement involve their retail activities with the e-commerce services (Fitzsimmons, 2013).

With the systemic knowledge management, the company says that most of it business activities and units are already having digital platforms, for instance, Coles is now trailing on the Mobile Wallet which is a digital payment system, this system allow customers to pay for their groceries using their mobile phones rather than using their cards or cash (Pfaff, 2016). One of the advantages of digital and e-commerce strategies is that they enhance better data analysis, this acts as the critical element while making decisions relating to the company operations. It also reduces the cost of operation in different section of Wesfarmers Limited (Small, Bailey, Lydon, & Davern, 2013).

Wesfarmers Limited is operating in a diverse market, according to Lin 2013; the environmental factors could directly affect the activities of a business organization. PESTEL analysis tool I used to elaborate on the different macro environment that the company operates. The PESTEL analysis tool analyzes six critical factors that affect the operations of a company, these factors includes political, economic, social, technological environmental and legal factors (Rothaermel, 2015).

The Australian Federal government has established the essential frameworks that regulate the mining process.  The exploitation of natural resources are controlled by the laws that are instigated by the federal government of Australia, this limits the company from extensive exploitation of the coals minerals (Limited, Wesfarmers Premier Coal, 2015).


The economic factor comprises aspect that affects the organization financial overview, for instance, the global economic recession. Due to the global economic recession the Wesfarmers supermarket and mining activities were affected, where unemployment was a big deal to the company management. Employees turn over lead to decrease of company revenues (Lee, , Kozlenkova, & Palmatier, 2015).

It is a normal culture for a family in Australia to spend a lot of money in the supermarkets. Coles supermarkets are positively reaping from the families who spend more money in the supermarkets. Wesfarmers Limited sales product and services that are socially acceptable to the consumers. They sell their products and services by considering the social factor of consumers in the market (Champoux, 2016).

Australia is one of the world best mining countries, the country is the best in mining resources using new technological innovations. The mining companies in the country use the most advanced technology, products, equipment and services to promote creativity and ensure that they minimize the waste of minerals and protects the environment. Wesfarmers Limited have diversified activities of mining coal, energy, chemical and fertilizers and industrial to use new and advance technology.

The environmental factors are considered to be changed in weather and climate. The research indicates that major climatic changes happen due to the effects of the global warming.

According to the environment protection act of 1974, any organization should ensure that they make decision that complies with the environmental rules and regulations. Stakeholders such as government relevant department are also encouraged to work with the Wesfarmers Limited while protecting the environment. The research indicates that the environment protection act of 1974 is necessarily advocated to regulate the business coal mining, it is also enacted to promote the uniform safety of the employees in an organization (Chang, Yeh, & Liu, 2015).

The Australia legal system and process are considered to be sound and relevant to regulate the operation of business organizations. The legal frameworks include labor law, environmental law, natural resources law and various business laws. These laws and legal system provide Wesfarmers Limited criteria to operate in the market (Chang, Yeh, & Liu, 2015).



Wesfarmers Limited is a company that operates many business activities that ranges from industrial, fertilizer, chemical, retail services and supermarket. The company management context is elaborated by analyzing the critical management aspects which are relevant to the organization. Knowledge management and E-commerce are the issues that reflects the extend and degree which the top management have installed while managing the organization. On the other hand, PESTEL strategic management tool is presented to display the environment at which the company operates.



Biddle, I. (2016). The Wesfarmers/Woolworths duopoly war: The Bunnings vs. Masters battle. Busidate,.

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Cameron, A. J., Sayers, S. J., Sacks, G., & Thornt. (2015). Do the foods advertised in Australian supermarket catalogues reflect national dietary guidelines?. Health promotion international, dav089.

Champoux, J. E. (2016). Organizational behavior: Integrating individuals, groups, and organizations. . Routledge.

Chang, D. S., Yeh, L. T., & Liu, W. (2015). Incorporating the carbon footprint to measure industry context and energy consumption effect on environmental performance of business operations. Clean Technologies and Environmental Policy, (Vol. 17).

Datamonitor (Firm). (2000). Wesfarmers Limited. New York, NY:: Datamonitor.

Fan, J. P., Wong, T. J., & Zhang, T. (2013). Institutions and organizational structure: The case of state-owned corporate pyramids. Journal of Law, Economics, and Organization, 29(6), 1217-1252.

Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson Education.

Fitzsimmons, C. (2013, April 26). FIANANCIAL OVERVIEW. Retrieved from Wesfarmers gets serious about digital targets:

Goetsch, D. L., & Davis, S. B. (2014). Quality management for organizational excellence. Upper Saddle River: NJ: pearson.

Jeston, J., & Nelis, J. (2014). Business process management. . Routledge.

Lee, , J. Y., Kozlenkova, L. V., & Palmatier, R. W. (2015). Structural marketing: using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science,, 43(1), 73-99.

Limited, Wesfarmers Premier Coal. (2003). 50 years of powering Western Australia: From Western Colleries to Wesfarmers Coal. Collie, W.A: Wesfarmers Premier Coal.

Pfaff, B. (2016). Financial risk modelling and portfolio optimization with R. John Wiley & Sons.

Rothaermel, F. T. (2015). Strategic management. New York, NY: McGraw-Hill.

Small, M. N., Bailey, T. P., Lydon, M. Y., & Davern, T. (2013). Best practice fleet management and priority actions. ACRS.


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