The paper "Corporate Level Strategy & Competitive Environment Analysis for Wesfarmers Sbus" is a great example of a business case study. The focus of this paper is on examining the competitive environment and corporate level strategies adopted by Wesfarmers in conducting its business through its current strategic business units. In doing so, the report bases its arguments upon the strategies adopted by each of these strategic business units. Since its inception in 1914, as notable Western Australian framer’ s cooperative, Wesfarmers has succeeded in growing into one of the country’ s largest publicly listed companies in terms of revenues and employment-base.
Having its headquarters in Western Australia, the firm has continued to engage in diversified business operations that extend to such sub-entities as supermarkets, liquor stores, hotels and convenience stores; office supplies and, industrial divisions. It is important to note that Wesfarmers is Australia’ s largest private-sector employer with more than 220,000 employees and, also enjoys the shareholder base of more than 530,000 people. Diagram of Wesfarmers to its SBU’ s Subsidiaries 2.0 Sustainable Competitive Advantage 2.1 Literature Review The term sustainable advantage is not necessarily used to refer to a specific set of the period nor does it indicate that advantages would occur indefinitely rather; it is focused on ascertaining the extent for which there would be competitive duplication (Kumar et al, 2011).
In assuming an effective sustainable competitive advantage, the internal level of resources of a company should not be made easily available to a rival that possesses the imminent potential to formulate superior competitive advantage as opposed to environmental factors that are far-much available to all other potential rivals. In addition to such aspects as well-integrated knowledge, organisational culture and history; it is further argued that competitive advantage also involves a specific set of formal rules and structures that are used in governing the manner for which people would normally relate and the company’ s immediate culture and history as a crucial point of success (McWilliams & Siegel, 2011).
In essence, the notion of sustainable competitive advantage is deemed to be aligned towards the frameworks relating to durability; mobility as well as replicability. For this case, durability is considered to be a measure of the underlying capacity and resilience for which a company possess in order to push away potential imitation from rivals.
Mobility relates to the extent for which the underlying level of resources can be effectively transferred amongst the different set of rivals while replicability ascertains the ease with which these resources can be imitated by competitors (King, 2007). Following this line of reasoning, Kazlauskaite and Buciuniene (2008) note that sustainable competitive advantage; is indeed prolonged sustenance of a distinct value-creating and providing a strategy that cannot be imitated or even implemented concurrently by a given current competing firm. It is important to note that an efficient sustainable competitive advantage emanates from a dynamic interplay that exists between an organisation and its immediate external environment (Pacheco-de-Almeida & Zemsky, 2007).
Thus, sustainable is considered to be more accessible in industries that enjoy more than a single dominant strategy since rivals might not be in a position to replicate similar options as the incumbent organisation. There has been a successful perspective allowed to define the concept of sustainable competitive advantage that include; a structural approach that is based on industrial organisation economics; resource-based view(RBV) of a given organisation; the conventional IO economics and game theory.
Consequently, there has been further added to these theories that include the dynamic capability view and the Blue Ocean strategy (Markley & Davis, 2007). It is crucial to note that in defining and specifying the fundamental approaches used on ascertaining competitive advantage, most of the aforementioned views will focus on restricting a company into comprehending the overall nature of full dynamism related to the given strategy (Markley & Davis, 2007). A resource-based view is solely focused on the formulation of competitiveness for the futures while still the other's perspective is directed towards the current deployment of resources that were previously developed.
Ageron, B., Gunasekaran, A. & Spalanzani, A., 2012. Sustainable supply management: An empirical study. International Journal of Production Economics, 140(1), pp.168-182
Appel-Meulenbroek, R. & Haynes, B., 2014. An overview of steps and tools for the corporate real estate strategy alignment process. Corporate Real Estate Journal, 4(1), pp.44-61.
Basu, P.K., Hicks, J., Krivokapic-Skoko, B. & Sherley, C., 2015. Mining operations and corporate social responsibility: A case study of a large gold mine in regional Australia. The Extractive Industries and Society, 2(3), pp.531-539.
Culpan, R., 2008. The role of strategic alliances in gaining sustainable competitive advantage for firms. Management Review, pp.94-105.
Culley, B., Graham, J., Kay, G., Norberry, J. &Wilson, S., 2017. Digital Marketing Plan: Naked Wines Australia. Newcastle Business School Student Journal, 1(1), pp.68-89.
Carter, C.R. & Rogers, D.S., 2008. A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5), pp.360-387
Carter, C.R. & Liane Easton, P., 2011. Sustainable supply chain management: evolution and future directions. International Journal of Physical Distribution & Logistics Management, 41(1), pp.46-62.
Caldwell, C., Hayes, L.A., Bernal, P. & Karri, R., 2008. Ethical stewardship–implications for leadership and trust. Journal of Business Ethics, 78(1), pp.153-164
Chermack, T.J. & Kasshanna, B.K., 2007. The use and misuse of SWOT analysis and implications for HRD professionals. Human Resource Development International, 10(4), pp.383-399
Ferreira, M.A., Massa, M. & Matos, P., 2009. Shareholders at the gate? Institutional investors and cross-border mergers and acquisitions. Review of Financial Studies, p.hhp070.
Gold, S., Seuring, S. & Beske, P., 2010. Sustainable supply chain management and inter‐organizational resources: a literature review. Corporate Social Responsibility And Environmental Management, 17(4), pp.230-245
Ghazinoory, S., Esmail Zadeh, A. & Memariani, A., 2007. Fuzzy SWOT analysis. Journal of Intelligent & Fuzzy Systems, 18(1), pp.99-108
Halik, J., 2012. The application of PEST analysis based on EBRD and IBRD methodology. Central European Business Review, (3), pp.14-21
Haleblian, J., Devers, C.E., McNamara, G., Carpenter, M.A. and Davison, R.B., 2009. Taking stock of what we know about mergers and acquisitions: A review and research agenda. Journal of Management, 35(3), pp.469-502.
Helms, M.M. & Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
Hitt, M.A., Beamish, P.W., Jackson, S.E. & Mathieu, J.E., 2007. Building theoretical and empirical bridges across levels: Multilevel research in management. Academy of Management Journal, 50(6), pp.1385-1399.
Harford, J., Klasa, S. & Walcott, N., 2009. Do firms have leverage targets? Evidence from acquisitions. Journal of Financial Economics, 93(1), pp.1-14.
Hitt, M.A., Ireland, R.D. & Hoskisson, R.E., 2012. Strategic management cases: competitiveness and globalization. Cengage Learning.
Heywood, C. & Kenley, R., 2008. The sustainable competitive advantage model for corporate real estate. Journal of Corporate Real Estate, 10(2), pp.85-109.
Issa, T., Chang, V. & Issa, T., 2010. Sustainable business strategies and PESTEL framework. GSTF International Journal on Computing, 1(1), pp.73-80.
Jurevicius, O., 2013. PEST & PESTEL Analysis. Strategic Management Insight, 13, p.2013
Kumar, V., Jones, E., Venkatesan, R. & Leone, R.P., 2011. Is market orientation a source of sustainable competitive advantage or simply the cost of competing? Journal of marketing, 75(1), pp.16-30
Kang, J., 2013. The relationship between corporate diversification and corporate social performance. Strategic Management Journal, 34(1), pp.94-109.
King, A.W., 2007. Disentangling interfirm and interfirm causal ambiguity: A conceptual model of causal ambiguity and sustainable competitive advantage. Academy of management review, 32(1), pp.156-178.
Kazlauskaite, R. & Buciuniene, I., 2008. The role of human resources and their management in the establishment of sustainable competitive advantage. Inzinerine Ekonomika-Engineering Economics, 5(60), pp.78-84.
Kremer, P.D. & Symmons, M.A., 2015. Mass timber construction as an alternative to concrete and steel in the Australia building industry: a PESTEL evaluation of the potential. International Wood Products Journal, 6(3), pp.138-147
Ross, P., McGowan, C.G. and Styger, L.E., 2012. A comparison of theory and practice in market intelligence gathering for Australian micro-businesses and SMEs
McWilliams, A. & Siegel, D.S., 2011. Creating and capturing value: Strategic corporate social responsibility, resource-based theory, and sustainable competitive advantage. Journal of Management, 37(5), pp.1480-1495.
Martynova, M. & Renneboog, L., 2008. A century of corporate takeovers: What have we learned and where do we stand? Journal of Banking & Finance, 32(10), pp.2148-2177.
Markley, M.J. & Davis, L., 2007. Exploring future competitive advantage through sustainable supply chains. International Journal of Physical Distribution & Logistics Management, 37(9), pp.763-774.
Menguc, B., Auh, S. & Shih, E., 2007. Transformational leadership and market orientation: Implications for the implementation of competitive strategies and business unit performance. Journal of Business Research, 60(4), pp.314-321.
Murray, J.Y., Gao, G.Y. & Kotabe, M., 2011. Market orientation and performance of export ventures: the process through marketing capabilities and competitive advantages. Journal of the Academy of Marketing Science, 39(2), pp.252-269.
Nyaga, G.N. & Whipple, J.M., 2011. Relationship quality and performance outcomes: Achieving a sustainable competitive advantage. Journal of Business Logistics, 32(4), pp.345-360
Pahl, N. & Richter, A., 2007. SWOT analysis: Idea, methodology and a practical approach (pp. 3-4). Grin Verlag.
Purce, J., 2014. The impact of corporate strategy on human resource management. New Perspectives on Human Resource Management (Routledge Revivals), 67.
Peng, M.W., 2013. Global strategy. Cengage learning.
Pacheco-de-Almeida, G. & Zemsky, P., 2007. The timing of resource development and sustainable competitive advantage. Management science, 53(4), pp.651-666
Ren, L., Xie, G. & Krabbendam, K., 2009. Sustainable competitive advantage and marketing innovation within firms: A pragmatic approach for Chinese firms. Management Research Review, 33(1), pp.79-89
Reuter, C., Foerstl, K.A.I., Hartmann, E.V.I. & Blome, C., 2010. Sustainable global supplier management: the role of dynamic capabilities in achieving competitive advantage. Journal of Supply Chain Management, 46(2), pp.45-63.
Smith, A.D., 2007. Making the case for the competitive advantage of corporate social responsibility. Business Strategy Series, 8(3), pp.186-195.
Stahl, G.K. and Voigt, A., 2008. Do cultural differences matter in mergers and acquisitions? A tentative model and examination. Organization science, 19(1), pp.160-176.
Tan, Y., Shen, L. & Yao, H., 2011. Sustainable construction practice and contractors’ competitiveness: A preliminary study. Habitat international, 35(2), pp.225-230
van Wijngaarden, J.D., Scholten, G.R. & van Wijk, K.P., 2012. Strategic analysis for health care organizations: the suitability of the SWOT‐analysis. The International journal of health planning and management, 27(1), pp.34-49.
Wesfarmers. 2016. 2016 Annual Report. Retrieved from https://www.wesfarmers.com.au/docs/default-source/reports/2016-annual-report.pdf?sfvrsn=4
Wesfarmers. 2016b. 2016 Strategy Briefing day. Accessed from https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2016-strategy-briefing-day-presentation.pdf?sfvrsn=0
Wiersema, M.F. & Bowen, H.P., 2008. Corporate diversification: The impact of foreign competition, industry globalization, and product diversification. Strategic Management Journal, 29(2), pp.115-132.
Yüksel, I., 2012. Developing a multi-criteria decision making model for PESTEL analysis. International Journal of Business and Management, 7(24), pp.52-66
Zhou, K.Z., Brown, J.R. & Dev, C.S., 2009. Market orientation, competitive advantage, and performance: A demand-based perspective. Journal of business research, 62(11), pp.1063-1070.