Business Management and Stategic Management Assignment 2022

Running head: BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
Student's Name
University Name
Author note

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BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
Introduction
The company Atlassian is an Australian team collaboration software company which was
launched in the 2002 (Benavides and Galindo 2014). Atlassian Australia offer wide range of
software development products. The software offered by the company assists the teams in
discussing, organizing and completing the shared work. The company has over 51000
organizations having almost 5 million active monthly users. The clients of the company include
eBay, Coca-Cola, BMW, NASA, Facebook and Netflix. The company has the following
business divisions namely: Plan, track and support which includes products such as Jira Core,
Jira service Desk and Jira software (Carlson 2017). The division collaborates and chat includes
products like Confluence, Trello, Sride and Hipchat. The other division Code, Build and ship
includes product offerings like Bit bucket, Bamboo, Crucible and others. The company is
currently seeking opportunities for expansion in the near future; however, it has been facing
challenges including innovation at scale. There are various small flexible stratus, there are more
established companies having changing roles such as Farquhar and Cannon Brookes. The
purpose of this report is to conduct macro environment analysis, industry analysis, company
analysis and competitor analysis of the software company Atlassian. It also identifies the
strategies and provides suggestions to improve the strategies. Lastly, it concludes the report.
Analysis
1. Macro environment analysis

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BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
PESTLE Analysis
The changes in the business environment are changing rapidly with the changes in
consumer behavior and advancements of technology. The changes in the external business
environment have direct impact on the Atlassian Company and directly impact the information
technology services. It can impact the company’s competitive advantage and reduce the
profitability. Pestle analysis offers valuable insights into the challenges and opportunities that
can be faced by Atlassian Company (Carlson 2017).
Political factors – As per analysis, there are instances of bureaucracy and interference by the
government in the technology sector. There are complex laws and legal framework for property
protection, trade regulations, pricing regulations, taxation and intellectual property protection.
Economic factors – The Australian economy is undergoing structural changes. There are
corporate tax cuts, free trade agreements, reforms in the labor market, an effective system of the
government and skilled workforce that is readily available in the economy. Hence it is an
opportunity for the company (Ho 2014). These factors can favor expansion for the company.
Social factors – There is high level of skilled workfare in the economy. The society has a broad
nature and entrepreneurial spirit. The education level of the general people is high. Therefore
skilled workers are available in the market (Ho 2014).
Technological factors: Australian economy is known for its technological innovations. There
are technological developments and improvements in the economy (Ho 2014). However, there is
government interference in the research and development industries.
Legal factors- There are strict laws and regulations for informational technology services
throughout the country. It ensures fair trading laws, consumer laws and competition laws.

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BUSINESS MANAGEMENT AND STATEGIC MANAGEMENT
Environmental factors- the current weather conditions might impact the ability of the company
to deliver the final product (Ho 2014). Thus climate change can be a challenge to the company.
The sudden changes in the climate can be a challenge for the company to expand its business
activities.
2. Industry analysis
Porters five force analysis
Threats of new entrants- The threat to new entrants are high, they bring in ways and
innovative ways for doing things forcing Atlassian to reduce their pricing strategy and offer new
value proposition to the customers ( Dobbs 2014). Hence Atlassian needs to manage the threats
by building effective barriers to maintain its competitiveness in the business scenario.
Bargaining power of consumers- The consumers are mostly very demanding and they have a
high bargaining power. This pressurizes the Atlassian Company to offer the software and their
specialized services at a lowest price. Atlassian Company has a huge customer base; hence they
have a higher bargaining power. The consumers have the ability to seek for more offers and
discounts ( Dobbs 2014).
Bargaining power of suppliers: The IT Company purchases its raw materials from various
suppliers. The suppliers have high bargaining power being in the dominant position in the
market. This decreases the profit margin of the company.
Threats of substitute products and services: The threat for substitute products and services are
high, they have the ability to meet the needs and demands of the consumers in new and