Economics and Sustainability: Report

Economics and
Sustainability 1
Economics for a Sustainable
World

Economics and
Sustainability 2
Table of Contents
Introduction................................................................................................................................4
Overview of Aurizon Holdings Limited....................................................................................4
Name and Location of Business.............................................................................................4
Type of Business....................................................................................................................4
Products of Aurizon...............................................................................................................4
Main Customers of Aurizon...................................................................................................7
Location of Customers...........................................................................................................7
Main Competitors to Aurizon................................................................................................7
Location of Main Competitors...............................................................................................8
Approximate Market Share of Aurizon and its Competitors.................................................8
Analysis of the Competitive Environment of Aurizon..........................................................9
Close Substitutes for Aurizon’s Products..............................................................................9
Elasticity of the Demand Curve of Aurizon...........................................................................9
Ability of Aurizon in generating a Mark-Up.......................................................................10
Production Costs and Scale......................................................................................................10
Factors of Production...........................................................................................................10
Manpower........................................................................................................................10
Locomotives and Trains...................................................................................................10
Fuel and Energy Resources..............................................................................................10
Other Factors....................................................................................................................11
Grouping of Factors of Production......................................................................................11
Overall Cost Structure of Aurizon’s Business.....................................................................11
Macro Business Environment of Aurizon................................................................................11
Political Situation.................................................................................................................11
Economic Situation..............................................................................................................12

Economics and
Sustainability 3
Rate of Inflation...............................................................................................................12
Unemployment Rate.........................................................................................................12
Average Interest Rate.......................................................................................................12
Boom or Recession..........................................................................................................13
Exchange Rates and Changes of Export Country............................................................13
Quality of the Main Products...........................................................................................13
Nature of Demand during Recessions..............................................................................13
Impact of the Economic Climate on Sales.......................................................................13
Problems in getting access to Key Factors of Production................................................14
Impact of Change in Exchange Rates on Imports and Exports........................................14
Sustainability Practices of Business.........................................................................................14
Impact of the Production Process of Aurizon......................................................................14
Impact of Consumption of Product Generated by Aurizon.................................................16
Impact of Sustainability Practices on Long-Term Viability of Firm...................................16
Conclusions..............................................................................................................................16
References................................................................................................................................17

Economics and
Sustainability 4