Gap Analysis of CSL

Running head: GAP ANALYSIS OF CSL
GAP ANALYSIS OF CSL
Name of the Student:
Name of the University:
Author Note:

GAP ANALYSIS OF CSL
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Executive summary:
It is evident from the report that CSL should restructure its strategies. The analysis shows
that the Australian market is conductive to development and expansion of business organisations.
CSL should align its operations more the emerging markets to gain more competitive advantage.

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Table of Contents
Executive summary:........................................................................................................................1
1. Introduction:................................................................................................................................2
1.1. Aim:..........................................................................................................................................2
1.2. Scope:.......................................................................................................................................2
1.3. Background of the company-CSL Limited:.............................................................................2
1.3.1. Company operations and leadership information:.............................................................2
1.3.2. Product line and competitors:............................................................................................3
2. Environment analysis:.................................................................................................................3
2.1. Remote environment:................................................................................................................4
2.1.1. Political environment:........................................................................................................4
2.1.2. Technological environment:..............................................................................................5
2.1.3. Legal environment:............................................................................................................7
2.1.4. Socio-cultural environment:..............................................................................................9
2.1.5. Demographic environment:.............................................................................................10

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...................................................................................................................................................10
2.1.6. Geographical conditions:.................................................................................................10
2.2. Industry analysis:....................................................................................................................11
2.2.1. Threats of new entrants (very high):................................................................................11
2.2.2. Threats of substitutes (moderate):...................................................................................11
2.2.3. Bargaining power of buyers (moderate to high):.............................................................12
2.2.4. Bargaining power of sellers (high-moderate):.................................................................12
2.2.5. Industry Rivalry (high):...................................................................................................12
3. Strategy:.....................................................................................................................................13
3.1. Overview:...............................................................................................................................13
3.2. Organisational structure:.........................................................................................................13
3.3. Operational strategy:...............................................................................................................13
3.4. Stakeholders:...........................................................................................................................13
3.4.1. Internal stakeholders:.......................................................................................................14

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3.4.2. External stakeholders:......................................................................................................14
3.5. Financial performance:...........................................................................................................14
3.5.1. Capital generation:.......................................................................................................14
3.5.2. Revenue generation:....................................................................................................17
4. Capabilities:...............................................................................................................................18
4.1. Purpose and size:....................................................................................................................18
4.2. Price and performance:...........................................................................................................19
5. E-S-C Gap analysis:...................................................................................................................19
5.1. Environment Gaps:.................................................................................................................19
5.2. Strategy Gaps:.........................................................................................................................19
5.3. Capability Gap:.......................................................................................................................20
6. Strategic Recommendations:.....................................................................................................20
6.1. Environment friendly modes of operations:...........................................................................20
6.2. Business expansion:................................................................................................................20
6.4. Inducing younger senior managers:........................................................................................21
References:....................................................................................................................................22

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1. Introduction:
1.1. Aim:
The aim of report is to delve into the ESC (environmental, strategic and capability) gap
which multinational companies face during operating in the global market. The organisation
which would be considered for the analysis would be Commonwealth Serum Laboratories
Limited or CSL Limited based in Melbourne, Australia.
1.2. Scope:
The scope of the study would be to analysis the business environment of CSL Limited
which would point out that the factors within the environment which are responsible for the gaps.
Then the study would ultimately lead to recommending strategies which the company can
implement to counteract the gaps or at least reduce them. The scope of the assignment would
involve use of Porters five forces model, graphs and balance score to provide strong base to the
analysis. These tools would also enable the researcher to draw pertinent recommendations which
would lend the study its ultimate objective which would be recommending strategies which CSL
would use to counteract the gaps.
1.3. Background of the company-CSL Limited:
1.3.1. Company operations and leadership information:
Commonwealth Serum Laboratories Limited or CSL is based in Melbourne, Australia
manufactures critical lifesaving drugs like treatment of influenza and envenomation. The values
of CSL are to provide drugs and biotherapies critical to saving lives of people especially
suffering from life threatening conditions. The values of the company stands on five pillars
namely, patient focus, innovation, integrity, collaboration and superior performance. CSL