Westfarmers and its levels of strategy
1. Drawing upon the case, identify the levels of strategy at Westfarmers.
Since Westfarmers run multiple businesses in completely different areas this question can be answered simply. It has to run a “corporate-level strategy”.
2. Using Miles and Snow’s terminology, how would you classify Westfarmers?
We would classify Westfarmers among the defenders. There is tight control comes from one point, so it is very centralized.
How would you classify the main operating divisions?
The main operating divisions however, can be seen as analysers. They are moderately centralized, and as said in the text, are “urged to expand within their own area”. These things both indicate that these divisions can be seen as analysers
Is it possible for the operation as a whole, and for the different operating divisions to be different strategic types?
Yes, we think this is possible. As long as the strategic type of the operating divisions stays within the boundaries of the whole operation. The links of the main operating divisions with the headquarters are minimal, so they are able to operate as an independent company within the boundaries of the whole operation.
3. Bartlett and Ghoshal proposed four strategic types of multinational. Westfarmers operates mainly in Australia with a small operation in New Zealand. Does its structure prevent it from adopting one of the multinational forms propesed by Bartlett and Ghoshal?
Bartlett and Ghoshal’s approach can be consulted without problems if relying on their exact thermology is not a necessity. However, it cannot be applied to Westfarmers as a whole. It must be used particularly for each business it is involved in. The tex ...