Performance Benchmarking of Business Regulation

Question: Discuss about the Performance Benchmarking of Business Regulation. Answer: Introduction: Wesfarmers was founded in June 1914 as a cooperative for farmers. Currently, it is the key provider of jobs in Australia and listed on the countrys stock exchange. Western Australia hosts the headquarter of the company. It has four hundred and fifty thousand shareholders with a minimum of two hundred thousand employees. the operation in numerous differing organizations including retailing, protection, mechanical, vitality and around thirty-three popular brands crosswise over Australia and New Zealand that the greatest test confronting Wesfarmers and in this manner I think you could state most organizations, especially in Western Australia, is pulling in, creating and holding ability (Wesfarmers 100: 100 Years - Thousands of Stories, 2014). A workplace with diversity and equality can give an upper hand to pulling in ability over different organizations. Wesfarmers PESTEL analysis This type of analysis seeks to explore the following factors; Political factors, environmental factors, social, technological, economical and legislative factors. The industry which Wesfarmers deals with brings up the attention of government, NGOs and also lobby groups. Some of the political factors include; Harmonization of foreign products to ensure competition Subsidies provision by government to local producers. The economic factors affecting Wesfarmers include; Change of rates of currency Takeovers and acquisitions Competition from other players Market fluctuation based on seasons The social factors: The living standards of population in Australia keep changing due to the fact that the customer preferences and tastes keep changing. They no longer need junk food rather they prefer fresh farm products as a requirement for a good health life. Therefore Wesfarmers ensures that they meet this customer requirement. Technological factors. The utilization of internet has enabled Wesfarmers to cheaply advertise its products and maintain its customer base .They have also witnessed the increase in sales over the years. Environmental factors: Wesfarmers are obliged to ensure that they ensure the sustainability of the environment they operate in.Therefore every year they set targets to minimize the emission of greenhouse gases. Legal factors: Wesfarmers may be faced by legal factors. These include; Change of laws governing the industry Change in Tax laws Introduction of a lot of restrictive business laws The existence of uncertainty currently has been accelerated by dynamic financial markets over a few months ago. As Wesfarmers depending on customers for many years, the dynamic change will affect what their customers spend, frequency of going for shopping and the products that they buy. Therefore, there are critical business issues that are related to the operation of Wesfarmers Company. They include; Employee relationship in Workplace. The industrial relations structure ought to be checked on. The job providers and employees must have balanced relations so that work place is a user-friendly environment. The current issue that Wesfarmers is on the look out to defend, is the approval of their latest store team agreement after their team member highly boosted its support. The importance of this agreement is that it fosters simplicity and flexibility in their businesses by combining a total of six agreements into just one. It also entails salary increase of 0.3, whereby it is higher than the average salary rise of 0.2 to 0.225 that currently exist in the market. The agreement also provides for the increase of wages to young members so that it closely break even with older employee rate. Added benefits that do not exist in the current retail industry along with support to families and those involved in domestic violence have also been included in the agreement. The negotiation of this agreement lasted for about seven mo nths with forty individuals and representatives from various unions. It was later approved by the fair work commission in twenty fifteen (Samson, Daft, Ananthram, 2011). Most members who work at Wesfarmers have a right to state their complaints on work place conditions. However, there is the right time to raise these grievances so that they can be addressed before implementation of the agreement. The regulatory environment Over the past years, there have been many regulatory advances that impact how Wesfarmers runs its business and such regulations frustrate productivity.Wesfarmers has a task of dealing with almost a hundred bodies both federal a state in trying to negotiate these regulations which are a management issue of its own. For instance, there are some state rules that limit carrying of foodstuffs between specific zone e.g. honey made in Western Australia is only consumed in that region alone.Moreso, the rice produced in the district of Riverina is only sold in that district only. To add on that, the hours of business across different territories and states also vary. As we can see that most Wesfarmers stores in Queensland remain closed on Sundays. The state of South Australia has eleven days yearly of closure and this is a critical issue for the operation of Wesfarmers. The issue of competition Policy. The review of the federal government on new policies on competition, brings an amount of uncertainty to the decision making done by businesses like Wesfarmers in the country. This is against the existing business norms practiced in the world that it is healthy for businesses to compete (Performance benchmarking of Australian business regulation, 2016). Therefore, consulting everyday on new laws may constrain the operation of the business. The reason behind policy review is because the existing one, cannot surpass cases about anti-competitive conduct. It also seeks to screen quick and legitimate competitive behavior of businesses .This will not be sensible as it will be like prohibiting a growing business with excellent products going at lower prices and claiming that this is not right (Samson, Daft, Ananthram, 2011).Therefore they should come up with a regulation that is healthy for the competition for all the businesses. Wesfarmers eight years ago, the cost of goods were changing depending on the state and territory .The reason for this change of prices was because the transport cost of food to regional areas was high. Despite of this, the company decided to put the customers at the forefront i.e. serving all customers equally despite their locations in various states in Western Australia. The company therefore introduced a uniform state pricing to ensure consistency of prices in store outlets. As per this decision, some competitors might defend themselves that because they cannot give similar prices to their customers is maybe unfair. But in the real sense it is not fair to hike prices for customers in rural regions. It is therefore reasonable to focus on the critical issue of building confidence and allowing more startups in the country so that employment and economic growth can be fostered. The legal fraternity should also play their role in provide better consulting to entrepreneurs so that they can understand the impact of new policies to Wesfarmers and its competitors. This will ensure the decision done by the companies is beneficial to the company rather than becoming a loss a result of misguided advice on current policies implemented by the federal states. Therefore, the cheap idea of setting a business brings about a new level of competition. It is possible to find a reputable business going after each new product one offers and concentrate towards becoming an authority on a specific thing. It is important since it will be more profitable since the clients will be given a quality product or service Ecological Impact Reusing is quickly turning into a typical practice in many Australian organizations as business pioneers understand the effect their conduct has on worldwide ecological issues. You might be tested to fuse effective reusing programs since they might be cost-restrictive or recently badly designed. Vitality sparing gadgets, for example, minimized bright lights make an imprint in world vitality utilization, however they may not be feasible for your office. Challenges proliferate for engineers hoping to construct new processing plants or office space. Sustenance, vitality and transportation organizations all face ecological weights to utilize less common assets and offer items made with recyclable materials. In order to take part in conservation of environment, Wesfarmers have come up with programs of recycling waste their waste and putting them into other products that are important to their customers Innovation and Communication One of the greatest difficulties that Wesfarmers faced back in the days was confronting all inclusive collection of information within the companys branches due to incompatibility of technologies used in various countries it operates. But after sometime they had to invest in newest technology after a given period of time (Hunt, 2015). Hence it is very favorable and profitable for a company to eliminate divergent frameworks that can't speak with each other, as the accounting gets impeded, and the daily operations might also slow down or even stop. Being able to Access to main data could be traded off technological systems are centralized. This will also make the owners to make use of outside staff information instead of utilizing one central data server if you are making use of incompatible technology maintain your business international sales will have to be affected in terms of efficiency. Conclusion Interest in human, physical and scholarly capital permits us to do things speedier, better and all the more efficiently. This is what truly matters to efficiency. On the off chance that we truly concentrate on profitability development we will be better put to accomplish the national financial yield that guarantees we are the envy of our rival countries. Also, as a private company, you work as per a given level within worldwide economy, including future financial can impact the way one works in a group. As the world faces ecological problems ones background gets impacted. External competition makes changes to nearby competition and becomes the entrepreneurs headache. (Heath, Palenchar, 2009). 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