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Company Analysis of BORAL Limited

   

Added on  2022-11-13

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Running head: COMPANY ANALYSIS
COMPANY ANALYSIS
Name of the Student:
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Author Note:
Company Analysis of BORAL Limited_1
COMPANY ANALYSIS1
Introduction:
The aim of the report is to discuss the business of BORAL limited. It is a
multinational company that manufactures and supply all types of building and construction
material. This particular business organization was founded in Australia and has been
operating in the world business from 1946. This paper will analyse the business of the
multinational enterprise named BORAL limited. This paper will be analysing the foreign
entry strategy, competitive dynamics, organisational structure, and knowledge management
and innovation process of the company. BORAL Limited has been operating in the markets
of Asia, Australia and North America in a great deal.
Company details:
BORAL company has extensive operations on different parts of the world and
expanded in some of the most profitable business markets like Asia and North America. The
company has more than 16000 employees working currently in the different operating sites
the number of operating sites are more than 700 with the head quarter situated in the city of
Sydney, Australia. The revenue of BORAL Limited by 2017 is 4.39 billion AUD.
The company has three operating divisions which are BORAL Australia, USG
BORAL and BORAL North America. The Australian has concrete, quarry, asphalt, cement,
roofing, masonry, and hardwood and softwood timber operation. This particular division
supplies all the products as well as materials to the commercial and residential constructions,
roads and the engineering markets. The Asian subsidy of this particular company
manufactures and well as supplies the plasterboard based walls. Along with it, the celling
lining systems and the accessories to the countries in Asia, the Middle East and Australasia.
This division came into existence in 2014 through the process of joint venture. On the other
hand the North American subsidy of BORAL Limited came into force through the process of
Company Analysis of BORAL Limited_2
COMPANY ANALYSIS2
acquisition. This organization supplies a wide range of construction materials as well as
building products. This divisions has national processing and distribution business of fly ash.
It also manufactures stone veneer, clay and cement roof tiles, light building windows and
products, concrete block for the commercial and residential markets. Along with these, the
company has started to operate with the energy assets under the name of Origin Energy. It
has also entered the oil refinery business in Australia under the name of Bitumen and Oil
Refineries Australia Limited.
Foreign entry strategy:
Market entry strategy of this multinational entity has been utilised in different ways in
different market. This is a planned distribution as well as delivery method in the new target
market. In this important and export of the services, this refers in the creation, establishments
and the management of the contracts in foreign countries. The factors which affects the
viability of the companies in the new foreign market are the brand awareness, increased sales
and business stability if the company enters the new market. For developing the market entry
strategy, analysis of the market through the analysis of the potential competitors are essentials
and so also the preferences of the customers in that market. The relevant factors BORAL
Limited had analysed while entering the market of Asia or North America led to the analysis
of the potential competitors, trade barriers, price location, localised knowledge, competition
and the export subsidies.
In the case of BORAL limited as mentioned before, the business took different pat for
entering two new markets. In this regard. The large MNE not only entered on country but the
entire continent. The investment ratio was so huge that the company had captures the market
of entire Asia, Australasia and the Middle East through the process of joint venture. Now
joint venture is a business entity that is created by two or more parties characterised by the
Company Analysis of BORAL Limited_3
COMPANY ANALYSIS3
shared ownership, risks and returns. In this case, BORAL Gypsum and USG Corporation had
formed a 50/50 joint venture to gain leverage of fame of iconic brand, technological expertise
and complementary geographic foot prints. In this regard, BORAL limited had contributed its
gypsum division to the joint venture that includes the later board operations in the markers of
Australasia. USG on the other hand is the largest manufacturer of plasterboard in the North
American region contributed to the Asian as well as Middle Easter business and executive
access to the world leading cement board, lightweight plasterboard, fibre board and the joint
compound building technologies in their joint venture territory. Though this particular joint
venture, the companies have brought together their game changing technological aids and
expertise of the companies like USG with Boral’s leading manufacturing and distribution
network in regions. His joint venture had provided the companies scope for improving the
products and services to the unparalleled match.
In the region of North America, BORAL had contracture materials business in Denver
and entered into a joint venture with Fonterra Brick. This joint venture has been termed as
Meridian Brick. This joint venture between BORAL Bricks and Forterra Bricks aimed to
serve both the Canadian as well as the US market. This joint venture serving in the countries
in the North American region has built the companies through wider range of high quality
products, solutions and services thus serving the larger network. This has expanded the
residential and commercial brick offerings through the formation of the greater and more
responsible plant networks. As the result of the improved utilisation of the distribution and
frights channels, this is expected that this Meridian Brick will serve better positioned for
meeting the needs of evolving market.
This strong competition in the construction industry of the countries in Asia, Australia
and North America has affected the customer base of BORAL Limited in a great deal. In the
respect, the company has gained the scope for discovering the competition to affect the
Company Analysis of BORAL Limited_4

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