Current strategy of a division of major Australian corporation (Wesfarmers)
Wesfarmers is one of Australia’s oldest and most successful diversified companies. It founded in June 1914 as a small farmers' co-operative whose primary purpose was to provide services and rural commodities to Western Australia's agricultural population, Wesfamers commenced her trip to diversification since 1950s with a pioneered program that involved distributing liquefied petroleum gas. Wesfarmers then continued to advance into fertilizer production and distribution in 1984, coal mining, and then on launching insurance …show more content…
Another way to protect an enterprise against changing exchange rates is a 'Forward Contract'. This is a tool that helps manage the currency requirements. A Forward Contract allows one to agree an exchange rate at a current rate, and transact in the future. A Forward Contract offers various advantages in the exchange currency markets. Transactions, Payments or receivables in the future can be priced in one’s currency with certainty, and so one can accurately budget predicts. A Forward Contract is especially attractive if a current exchange rate is in favor as one gets the added benefit of this. Many customers indeed buy forward when the rate is favorable. On agreeing a Forward Contract, however, a requirement of 5% deposit holds or 10% if the forwarding exceeds 6 months. The currency exchange Business can also offer 'Time option Forward Contracts' which are flexible. This means that the contract can be set between two dates and the currency can be 'drawn' in any amounts between these dates.
This report assesses strategies of Wesfarmers and factors might impact on Wesfarmers and considers the prospects for Wesfarmers. There are 5 parts, which constitute 5 questions, for Wesfarmers. First is identifying current strategy of Wesfarmers. The second question asks for factors likely to impact Wesfarmers. The third question assesses Wesfarmers core competence and how it did evolve. The last part discusses if Wesfarmers’ strategy is sustained and give recommendations. Corporate