Management in Practice

Running Head: MANAGEMENT IN PRACTICE
MANAGEMENT IN PRACTICE
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1MANAGEMENT IN PRACTICE
Executive summary
CSG limited is one of the renowned IT solution companies in Australia. Currently, the company
is facing severe problems regarding not only its market capitalisation but also communication
gap between the new CEO and the existing management. In this regard, this report tries to
implement different analytical tools in order to understand the external, internal and the
industrial environment of the organisation. The external environmental analysis states that the
pressure of the government and liberal economic approach makes it difficult for the organisation
to refurbish its business strongly. The industrial approach argues that high competitiveness in the
market ushers new organisational goals and objectives for the organisation to penetrate into the
market with new approaches. On the other hand, the internal analysis highlights the lack of
innovative ideas and product diversification obscure the path of further development for CSG
Limited.

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Table of Contents
1.0 Introduction................................................................................................................................4
2.0 Background................................................................................................................................4
3.0 Define the problem(s)................................................................................................................5
3.1 SWOT Analysis.....................................................................................................................5
3.2 VRIO Model..........................................................................................................................6
4.0 External Analysis.......................................................................................................................7
4.1 PESTEL Analysis..................................................................................................................7
4.1.1 Political...........................................................................................................................7
4.1.2 Economic........................................................................................................................8
4.1.3 Social..............................................................................................................................8
4.1.4 Technological.................................................................................................................9
4.1.5 Legal...............................................................................................................................9
4.1.6 Environmental...............................................................................................................10
5.0 Industry Analysis.....................................................................................................................10
5.1 Porter’s 5 Forces..................................................................................................................10
5.1.1 Threat of entry..............................................................................................................10
5.1.2 Threat of substitutes......................................................................................................11
5.1.3 Bargaining power of customers....................................................................................11

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5.1.4 Bargaining power of suppliers......................................................................................11
5.1.5 Industry rivalry.............................................................................................................12
6.0 Internal Analysis......................................................................................................................12
6.1 Blue Ocean...........................................................................................................................12
6.2 McKinsey's 7s Framework..................................................................................................13
6.3 McKinsey's Three Horizons................................................................................................13
7.0 Conclusion...............................................................................................................................14
8.0 Reference.................................................................................................................................15
9.0 Appendices..............................................................................................................................18
Appendix 1.................................................................................................................................18
Appendix 2.................................................................................................................................19
Appendix 3.................................................................................................................................20
Appendix 4.................................................................................................................................21
Appendix 5.................................................................................................................................22
Appendix 6.................................................................................................................................23
Appendix 7.................................................................................................................................23
Appendix 8.................................................................................................................................24
Appendix 9.................................................................................................................................25

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1.0 Introduction
High competitive market in the Information and communication sector of Australia is
considered to be one of the major challenge for a number of companies. The digital industry of
Australia generates more than AU$23 billion approximately per year. It is associated with a
number of activities in the Information and communication technology industry with product
development facilities (R&D), technical assistance sectors and the global sourcing. From the
research of Anton (2018) it can be stated that the growing use of technology by the not only the
personal use but also for business development and professional activities it becomes an
important factor to put great impetus on the IT industry in Australia. The lucrativeness and the
great opportunity to build up an effective measure in course of delivering profitable measures
create a gateway for different IT companies to develop their business effectively.
In this regard, the purpose of this research is to deliver an understanding related to the
understanding that CSG Limited is facing in Australia. Therefore, putting emphasis on different
external and internal analysis tools like the PESTLE, SWOT, VRIO and Porter’s Five Forces
help to project the organisational issues from different point of views. Moreover, tools like
McKinsey's 7s Framework and McKinsey's Three Horizons is also going to be discussed in order
to formulate a deep insight into the challenges that CSG Limited is facing in Australian market.
2.0 Background
CSG Limited is a public listed company in renowned for providing business technology
to different business organisations. Build in 1988, the company has a number of technology
products and services in terms of the One Partner, One Money bill and One Cloud (csg.com.au
2019). Primarily focusing on the managed print business and print solutions that organisation

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strictly followed a great deal of other services in the field of fully managed IT services, cloud
communications, contact centred solutions and other professional services. According to Jackson
(2014) CSG Limited is known for largest dealer of Canon devices in Australia. As a matter of
fact, the company intends to deal with a large number of partner companies Melbourne Football
Club and Sydney Swans. As per the annual report of the company, the total sales revenue in
2017 was amounted $210,428. Moreover, the profit amount in the year 2017 was $43,715 (Alam
and Imran 2015). It proves the steady growth of the organisation and its role to cope with the
high competitive market in Australia extensively. Currently, the company operates in both
Australia and New Zealand with its headquarters located in Brisbane, Australia. Furthermore,
there are 600 employees presently working in this organisation and performing high quality of
working and skilled practices.
3.0 Define the problem(s)
Despite of the fact that CSG Limited is creating effective entry into the Australian
market, there are some challenges that the organisation is facing in order to consolidate its
foothold more effectively. It was further intensified with the change in the CEO as Julie-Ann
Kerin became the CEO and Managing Director of the organisation in 2012. A different
managerial approach and type of leadership quality posed some communication issues between
the top management and the CEO. In this context, this report is going to take the SWOT analysis
and the VRIO model in order to identify the challenges that the organisation will face in an
overall spectrum.
3.1 SWOT Analysis
Strength Opportunity