Developing Issues Arising from Wesfarmers Limited

It is useful to find the solutions and justification for the issues arising from the analysis. The problems arising from the organization include the business risk for operating on a domestic market, weak profitability, lack of strategies for internal policies, and lack of international strategy. However, a suppressing issue is a retail challenge. Therefore, in this report, I will support do further analysis of these issues and come up with justification for the recommendation outlined in part A. Discussion Basically, running businesses is not an easy task since they are encountered with risks and uncertainty factors. In relation to Coles supermarket business, the organization is facing price deflation making the net profit of the company to reduce to 83. 3% in 2015 which affects the profitability of the company (Campbell 2017: 16).

Thus, the retail services should be looked to withstand any price fluctuations in the market. The organization could have been more superior to expand its business operation to other countries in order to have an excellent overall net profit and operating profit. The corporate strategy of the company is in a position of supplying the products to other countries since the value of the Australian dollar is strong as compared to the American dollar. Further, it should monitor the factors arising either from either internal or external environment to avoid any risk of the market (Gilchrist 2017: 10). For it to explore both domestic and international market, then it should consider cultures, competition, fashion, trends in the countries. Support of recommendations and actions to resolve issues The internal, external, domestic, and international factors usually affect the profitability and performance of the organization.