Economics for a Sustainable World | CSL Limited

ECONOMICS FOR A
SUSTAINABLE WORLD

Contents
Introduction............................................................................................................... 2
Introduction to the business and general business environment................................................2
Production costs and scale............................................................................................. 5
Macro business environment.......................................................................................... 6
Sustainability practice of the business.............................................................................12
Positive externality with the biotechnology...................................................................13
References.............................................................................................................. 15

Introduction
CSL limited is a biotechnological organisation, which develops, researches, and markets the
therapies with an aim to treat serious diseases. The company has 97th rank in the world`s
sustainability report. The nature of the business has remained monopolistic until 2006 due to
special availability of product and now with the passage of time, it has converted into
oligopoly (CSL limited, 2018). The report brings out as discussion on business environment
of CSL limited, which elaborates what the company offers, in which market structure it
operates, scale of production, and its sustainability practises. The impact of CSL`s operations
is quite positive when comparing it to the other companies. The company serves people in an
efficient way. Furthermore, the company`s products are demand inelastic as these items are
necessity of people needing blood plasma, and vaccination. The report also indicates how
effectively the organisation operates in political and economic environment of Australia.
Introduction to the business and general business environment
CSL limited is a Bio therapeutics leader, which deliver and develop medicines such as
vaccination to prevent health issues and assisting people in saving their lives from threatening
conditions. This group aims to create a sustainable impact on the stakeholders. The
organisation was established in 1916 with an aim to provide various services to needy people.
Currently, the organisation is well known for biotechnology, which develops researchers to
make medicines to prevent serious medicines. The organisational products include cell
culture, blood plasma, vaccines, manufacturing appliances, and other genetic researches (CSL
limited, 2018).

(Source: CSL limited, 2018)
The current profitability score is related to evaluation of stock attractiveness as the
profitability of CSL limited is profitable and the score is eight. The top competitors in the
CSL limited include Shire, B. Braun, Grifols, Johnson & Johnson, and Medtronic. Together,
they have an employee base of 849.5k people. The patients are quite focused and they are
passionate regarding the meeting the wants of customer that start with listening to them and
healthcare providers (CSL limited, 2018). The top most competitor is Baxter international,
which is listed in New Zealand stock exchange. The company does not operate in perfect
competition market. The organisation operates in imperfect competition where it is closest to
oligopoly. This market structure is the market, which is dominated by few large
organisations. These organisations prefer not to compete through price wars. This market
structure result in several forms of collusion with reduced competition leading to higher
prices for consumers. It has several barriers such as high investment needs, economies of
scale, and stronger consumer loyalty for the existing brands. CSL limited exists in perfect
competitive model, which is not much important to the customers. Oligopolies fluctuate from
the price participants and they examine for best price output arrangement (Brown, 2017).