Case Study on Business Risk Analysis
21 Pages4634 Words176 Views
Added on 2019-11-26
Case Study on Business Risk Analysis
Added on 2019-11-26
ShareRelated Documents
Auditing1Auditing
Auditing2Executive summaryIn the competitive business environment, it is essential for an organization to analyze thegenerating issues in the industry. An organization can use a systematic procedure to evaluatethese risk assessments in a systematic way. On the basis of different case studies, it is analyzedthat these are different internal and external factor that may impact on an entity therefore it isessential for the organization to evaluate the related industry to get the organizational objectivesin effective manner. In this concern, an organization can use PEST analysis, SWOT analysis,Porter’s five forces and other economic factors to analyze the industry and get intended businessresults.
Auditing3Table of ContentsExecutive summary.........................................................................................................................2Introduction......................................................................................................................................4Part 1: Nature of the entity...............................................................................................................4Part 2: Understanding the Industry..................................................................................................5Part 3: Understanding the legal environment..................................................................................6Part 4: Understanding external environmental factors....................................................................6a) PEST analysis..........................................................................................................................6b) SWOT analysis........................................................................................................................8c) Porter’s five forces analysis.....................................................................................................9d) Other external factor..............................................................................................................10Part 5: Understand objectives, strategies and Assessing Business Risks......................................11Part 6: Performing Analytical Procedures to understand Entity’s Performance...........................12Part 7: Understand management and Governance.........................................................................13Conclusion.....................................................................................................................................17References......................................................................................................................................18
Auditing4IntroductionThis report is analyzing business risk assessments for GPT Group Stapled organization that is aleading real estate company of Australia. In this regard, the report is describing several criteria’ssuch as understanding business nature, industry, legal environment, external environmentalfactors, business risks, management and governance that may impact on an organization’sprofitability and performance. Part 1: Nature of the entityGPT Group Stapled is a leading real estate company of Australia, which is registered as name ofGPT Companyin Australian Stock Exchange (ASX). The business operations of this companyare related to investment in commercial, retail, industrial, hotel and office park propertiesthrough different segments such as office, retail, logistics, corporate and fund management. GPTGroup Stapled Company is standing with $20 billion market capitalization and has substantialinvestor base more than 35000 investors (GPT, 2017). The financial management platform of the company is focused on Australia’s office and retailsector to enhance the growth profile and returns of the groups with leveraging the experience andskills of the team members. Company’s financial management platform provides an importantsource of income through property management, fund management and developmentmanagement charges. The financial management platform of the company comprises “GPTWholesale Office Fund (GWOF) with $6.6 billion and GPT Wholesale Shopping Centre Fund(GWSCF) with $3.8 billion” to provide the high quality office assets in Australian real estatemarket (The GPT Group, 2017).
Auditing5Part 2: Understanding the IndustryThe Australian real estate industry is growing with 4.2% annual growth rate with presenting 18%of the GDP. In Australia, the growth of the real estate market is supported by better supply chainin the industry (KPMG, 2017). Supply chain system in Australia is accountable for the real estatecompanies and procurement to make the effective portfolio strategy, analyzing the purchasinginitiatives, monitoring and delivery of the strategic management procurement events on time. Inthis industry, the competent stakeholder management is demonstrated on the basis of effectivecustomer and supplier engagement, communication, consultation, negotiation and reporting(Delacy, 2015). As well as the legal obligations and administrating policies also pursuant supplychain system to improve the procurement results.Furthermore, it is found that the major real estate players in Australia are Elders Real Estate, LJHooker, Harcourts Group, Barry Plant and Richardson & Wrench. These players are devoted toprovide luxurious services in real estate market of Australia, which are supported by differentfactors such as population growth, job creation, demographics, infrastructure, lifestyle andamenity (Macro, 2017). In the recent years, the population of Australia has been increased due toattractive business and educational environment. Due to these reasons the demand of houses inAustralia has been increased and provided opportunities for the real estate companies in thecountry. As the Australian real estate market has greater opportunities for the investors, thereforeit also attracts new real estate companies for investment. In this concern, there is threat of newcompetitors in the industry, which may impact on the established real estate companies.
Auditing6Part 3: Understanding the legal environmentThe legal environment is a legal framework provided by the local or state authority of Australiain which a firm operates its operational activities. The Australian government encompassesdifferent legislations such as statutory low, common law, company Act, Corporation Act andconsumer law that are essential to operate the business activities in Australia (Trade Portal,2017). Furthermore, the disability discrimination legislation, age discrimination legislation, risein minimum remuneration and increased requirements for the organizations to recycle have beenaffected to the organization’s operational activities. Furthermore, it is analyzed that the politicalenvironment of Australia is stable that is beneficial for the companies because in a stablepolitical environment the organizations can flow the rights through to bottom line. Hence, thelegal and political environment of the country has greater opportunities for the businesses.Part 4: Understanding external environmental factorsThere are different types of external environmental factors that may impact on an organization’soperational and functional activities. In this regard, different external environmental factors arediscussed as below:a) PEST analysisPEST analysis is an important external factor, which may influence to an organization’soperational activities. It is a process of classifying political, economic, social and technologicalfactors of a specific territory that may impact on an organization. PEST analysis is used togenerate better understanding about the external environment in which an industry want tooperate its business activities (Kenis et al., 2012). In this concern, the PEST analysis of Australiais analyzed as below:
End of preview
Want to access all the pages? Upload your documents or become a member.
Related Documents
HA3032 Auditing Assignmentlg...
|17
|4107
|342
Corporate Accounting: Sources of Fund, Liabilities, and AASB 137lg...
|13
|3843
|56
Ethics and Governance in Propertylink Group Limitedlg...
|14
|4042
|98
HA3032 - Assignment on Auditinglg...
|23
|4257
|29
HA3032 Business Risk Analysis: Reportlg...
|23
|3835
|39
Dexus Properties Group Assignment | Portfolio Analysislg...
|8
|1249
|84