Introduction

The following report discusses various criterion to be kept in mind while creating a graph. Each type of graph is suited to a particular type of data and situation. Hence, the same must be kept in mind while creating a graph. Further, once the right type of graph has been selected, there are many things that must be kept in mind so as to arrive at a good graph that communicates the correct point to the reader in a visually appealing manner (Yeung, 2003).

Once the criterion has been determined, annual report of Wesfarmers will be evaluated with respect to various graphs used through the report and how they meet the criterion discussed in previous section.

Task A

Criteria

Common Criterion

1. Clear Title: Each and every graph must have a clear and self-explanatory title so as to avoid any ambiguity (Ryan et al., 2011). A title must provide the appropriate information, period or may be measurement unit.
2. Unit of Measurement to be stated: The graph must compulsorily state the unit of measurement for both the axes. It must be clear because otherwise, the graph will be meaningless and may even convey incorrect information.
3. Axes Labelling: All axes should be labelled carefully and clearly. Without the axes being labelled, it is very difficult for the reader to guess the values and relationships that the chart is trying to indicate.
4. Data Source: Ideally, each graph must mention the source of the data below the graph so that it is clear to the reader. This not only lends authenticity and reliability to the assessment and evaluation being done through graphs, but also is a good way of referencing the figures.
5. The trend or difference between the data must be clear: The type of graph must be picked in accordance with the type of data at hand so that the trend or the difference (or the similarities) that are being aimed to be shown through the graph are visually clear to the reader. For example, a line graph is the best to indicate a time series pattern or trend overtime. 
6. Colour use must be consistent: It looks professional and is also easy on the reader’s eyes of same colour palette is used through the report. Additionally, for example, if red depicts male and blue depicts female, then same colour coding must be used through all the graphs so as to avoid any confusion in the reader’s mind.
7. Minimising use of 3D effects: In order for the graphs to be clear and legible, the use of 3D effects must be minimised.
   Bar Graph Criterion
8. Arrangement of Axes: Attention must be paid to check whether the horizontal axis presents the independent variable at equally spaced intervals and vertical axis presents the dependent variable at regular intervals, typically, frequency or count value or percentage.
9. Gap Width: Attention must be paid to gap width between two bars so that it is not very large or very less. The graph must be visually appealing and convey all the information and labels clearly. Also, the width of the bar itself must also be reasonable (not very thin or very wide).
10. Bar direction: Bars can be either vertical or horizontal. Usually, the vertical bars are used for chronological variables or negative variables but when there are a lot of categories to be presented or there is nominal data to be presented, horizontal bars may be used.  
11. Stacked bar chart: A stacked bar chart must be used when multiple categories need to be presented but each category also needs to be broken into parts. These subparts can become part of one bar with the size of sub parts indicating the value. Various bars in the graph will indicate different categories. 

    Line Graph Criterion

12. Usage: A line graph is typically used to compare the values of data category over a period of time. 
13. Multiple data group comparison: A line graph must be used when multiple data groups are to be compared over a period of time. This is because it provides a very good visual comparison for the multiple data groups as lines connected over a period of time provide trends and patterns.
14. Arrangement of Axes: Usually, the horizontal axis presents the independent variable or time at equally spaced intervals and vertical axis presents the dependent variable at regular intervals

    Pie Chart Criterion

15. Type of Data: Typically, pie charts are used to present percentages and proportions of a category. This is the best type of data to be presented through a pie chart.
16. Number of Slices: A pie chart must be used only when slices are not going to be more than five or six. If there are many more slices, then it becomes difficult to analyse the pie chart visually. Lot of small slices almost indicate nothing in a pie chart.
17. Order of slices: Ideally, the slices of the pie must be arranged in descending or ascending order with the largest slice on the top and then moving clockwise
18. Data Labelling: Labelling must be done carefully, especially for smaller slices. The area outside the pie can be used for the purpose.
19. One glaring proportion or percentage: The pie chart must be used when one percentage or proportion is glaringly high (or low) so as to make it easier to spot for the reader. If the values are very close to each other, pie chart may not be appropriate choice.
20. The pie chart may not be appropriate when a comparison between two or more similar categories is to be done.

Task B

Evaluation

Clustered Bar Graph

The above graph is a clustered bar graph with vertical bars. The x-axis presents the categories which are operational segments of the company, Wesfarmers (Wesfarmers, 2020). The y-axis presents the sales performance in $millions. The clustered bars present the sales data for each segment for the year ending 30^th June, 2019 and 2020. Additionally, the bubbles above each graph also indicate the percentage increase in sales for each segment on year-on-year basis.

It can be seen that the maximum percentage increase on year-on-year basis is 20.4% for Officeworks segment. However, Bunnings is the highest revenue grosser for the Company at $13,162 million in 2019 and $14,996 million for 2020. 

The criteria being met is:

1. Clear Title: Title provides subject (sales performance), unit ($m) and also period (year ending June)
2. Unit of Measurement to be stated: It is stated clearly in the title ($m)
3. Axes Labelling: All axes have been labelled carefully and clearly. The x-axis indicates the segment name and y-axis indicates the sales revenue. The legend gives the year for each bar of the cluster.
4. The trend or difference between the data must be clear: The trend in sales for each segment is clear by seeing grey and green bar of each cluster. Additionally, bubble also provides percentage increase or decrease on y-y- basis.
5. Colour use must be consistent: It is looking professional with palette being grey and green. For each cluster, grey presents previous year 2019 and green presents current year 2020.
6. Minimising use of 3D effects: The graphs are 2D and very clear.
7. Arrangement of Axes: The bars clusters for each segment are at equally spaced intervals. Each cluster has zero gap width.
8. Gap Width: Appropriate gap width has been used with each segment cluster being together and segments being divided by consistent gap.

The criteria not being met is:

1. Data Source: The data source has not been mentioned under the graph. However, since the data is for the company and presented by the company as part of the annual report, this is acceptable.
   The above graph is a bar graph with vertical bars with x-axis presenting components of net financial debt. Vertical bar has been used appropriately as there are some negative values also. The criteria being met is:
2. Clear Title: Title provides subject (movement in net financial debt), unit ($b)
3. Unit of Measurement to be stated: It is stated clearly in the title ($b)
4. Axes Labelling: All axes have been labelled carefully and clearly. The x-axis indicates the net financial debt component and y-axis indicates the extent of movement.  
5. Minimising use of 3D effects: The graphs are 2D and very clear.
6. Arrangement of Axes: The bars for each component are equally spaced.
7. Gap Width: Appropriate gap width has been used with each bar.

The criteria not being met is:

1. Data Source: The data source has not been mentioned under the graph. However, since the data is for the company and presented by the company as part of the annual report, this is acceptable (Wesfarmers, 2020).
   The above graph is a stacked bar graph with vertical bars. The x-axis presents the categories which are various financial years from 2016 till 2020 for the company, Wesfarmers. The y-axis presents the weighted average lease term in years through various colours of stacks as given in legend and the percentage share of each stack through data labels. Hence, for example, during financial year 2020, the proportion of all leases that have a weighted average lease term of less than 5 years is 63.1% while proportion of all leases that have a weighted average lease term of more than 15 years is only 0.3%.
   The criteria being met is:
   1. Clear Title: Title provides subject (weighted average lease term) and unit (%)
   2. Unit of Measurement to be stated: It is stated clearly in the title (%)
   3. Axes Labelling: All axes have been labelled carefully and clearly. The x-axis indicates the financial year and y-axis indicates the proportion of each type of lease. The legend gives the types of leases based on their term.
   4. The trend or difference between the data must be clear: Through each coloured stack, the pattern or trend of each type of lease can be seen. For example, in each financial year, the proportion of leases with term of less than 5 years is maximum. Also, the proportion of leases with weighted average term of less than 5 years is consistently increasing over the year (52.6%, 53.2%, 53.9%, 59.7% and finally 63.1% in 2020)
   5. Colour use must be consistent: It is looking professional with palette being grey and green. 
   6. Minimising use of 3D effects: The graphs are 2D and very clear.
   7. Arrangement of Axes: The stacked bars for each year are at equally spaced intervals. 
   8. Gap Width: Appropriate gap width has been used with each segment cluster being together and segments being divided by consistent gap.
   9. Stacked bar chart: A stacked bar chart has been used to present multiple types of leases based on their term. These subparts can become part of one bar with the size of sub parts indicating the percentage value. Various bars in the graph indicate different financial years.

The criteria not being met is:

1. Data Source: The data source has not been mentioned under the graph. However, since the data is for the company and presented by the company as part of the annual report, this is acceptable.

The other bar graphs that meet the discussed criterion are:

Pie or Donut Chart

The above graph is a donut or pie chart with only two slices that indicate percentage of fixed financial obligations, namely operating leases and bank facilities/bonds of the company, Wesfarmers. 

It can be seen that the maximum percentage is for operating leases that account for as much as 79% of the fixed financial obligations.

The criteria being met is:

1. Clear Title: Title provides subject (fixed financial obligations) and unit (%).
2. Unit of Measurement to be stated: It is stated clearly in the title (%)
3. The trend or difference between the data must be clear: The trend of operating leases accounting for almost 79% is clear from the graph.
4. Colour use must be consistent: It is looking professional with palette being grey and green, as continued from other graphs in the report also. The green colour indicates that data is for current year 2020. 
5. Minimising use of 3D effects: The graphs are 2D and very clear.
6. Type of Data: The chart presents percentage of fixed obligations of the company.  
7. Number of Slices: The chart presents only two slices and hence, is very clear visually.
8. Order of slices: The slices are automatically arranged as there are only two slices.
9. Data Labelling: Labelling has been done properly and area outside the pie has been used well to provide category name as well as value of percentage.
10. One glaring proportion or percentage: The pie chart has been used to present one very high value of 79% for operating leases.

The criteria not being met is:

1. Data Source: The data source has not been mentioned under the graph. However, since the data is for the company and presented by the company as part of the annual report, this is acceptable.

Conclusion

From the above discussion, it can be seen that the graphs of Wesfarmers Annual report meet maximum criterion for good graphs. Additionally, the use of bar graphs is maximum as it the most frequently and widely used and understood type of graph. The length of graph is visually understandable by the readers.