Business Description:
Wesfarmers Limited (WES) is a diversified covering supermarkets, department stores, home improvement and office supplies; coal mining; insurance; chemicals, energy and fertilisers; and industrial and safety products.

Strategy Analysis:
There are four key strategies management follow to achieve the objective of delivering satisfactory shareholder returns over the long-term. 1. The strengthening of existing businesses through operating excellence and satisfaction of customer needs; 2. Securing growth opportunities through entrepreneurial initiative; 3. The renewal of the operating portfolio through value-adding transactions; 4.Ensuring sustainability through responsible long-term management. The strategy is to expand both organically and by acquisition keeping within the current areas of expertise. Focus is on cash flow generation and the maintenance of an efficient balance sheet. Capital management initiatives will be entertained when surplus cash is generated that is not required for expansion. Management is focused on the generation of cash flow and the creation of shareholder wealth over the long term. Well managed diversification has been a key factor in the success of the group. Wesfarmers reported NPAT up 23% to $1.92bn for the year ended 30 June 2011. The result is demonstrated by the benefits of the Group's diversified model and long-term investment strategy, with strong profit growth achieved. Revenues from ordinary activities were $54.88bn, up 6% from last year. Diluted EPS was 166.3 cents compared to 135.5 cents last year. Net operating cash flow was $2.92bn compared to $3.33bn last year. The final dividend declared was 85 cents, taking the full year dividend to 150 cents compared with 125 cents last year. The Group remains positive in its outlook, subject to any adverse shocks from a fragile global economy, given the solid operating fundamentals in place across the divisions and an expected recovery from one-off impacts associated with natural disasters experienced during the prior period.