ASX reveals the details of Woolworths and Wesfarmers in the competitive market. It is a financial market exchange that offers services such as listings clearing, settlement, and trading across a wide range of asset classes. Woolworths is a retail chain store that deals with food merchandise. On the other hand, Wesfarmers is a company that deals with retail operations covering food merchandise, supermarkets, specialty department stores, liquor and fuel outlets, office and home supplies etc (Mankiw, 2003).
A set of factors largely influence how companies, for instance Woolworths and Wesfarmers, will operate. These factors determine whether or not a particular company will meet its mission as well as realise its vision. The Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) is a pact that combines Australia and New Zealand. Woolworths strives to meet the needs of its large market of customers in both countries. This is made simpler due to the fact that political stability is experienced in both countries. Political stability is a crucial factor in development. Economic factors are quite advantageous to Woolworths considering that Australia and New Zealand show economic stability. Based on gross domestic product, Australia and New Zealand are ranked 10th and 30th respectively the by International Monetary Fund (Mankiw, 2003).
Customers are loyal to companies that meet their individual desires. These desires include preference for organic products over inorganic ones. These socio-cultural factors influence the companies’ strategies as they also desire to fully tap into the market. The purchasing power of the customers is good due to the economic stability that fuels the high standard of living. In addition, legal and regulatory factors such as policies favour the retail industry in Australia. It is these factors that make Woolworths a huge beneficiary.