Environmental and Organizational Analysis of Northern Star Resources Limited

Running head: STRATEGIC MANAGEMENT CAPSTONE
Strategic Management Capstone
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1STRATEGIC MANAGEMENT CAPSTONE
Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................2
Environmental analysis................................................................................................................2
PESTLE Analysis....................................................................................................................2
Recommendation...........................................................................................................................10
Conclusion.....................................................................................................................................10
Reference List................................................................................................................................12

2STRATEGIC MANAGEMENT CAPSTONE
Introduction:
The northern star resources limited is referred to an Australian gold producing
organization that possesses world-class projects situated in highly perspective as well as low
sovereign risk regions of the Northern Territory and Western Australia. The company has a
portfolio of high grade yet low-cost gold mines and the chief focus of the company includes
maximizing the shareholder returns. The company is a well-known global gold producing
company. However, due to enhanced completion in the gold producing industry, the Northern
star is suffering from decrement in the competitive advantage. In this report, both environmental,
as well as organizational analysis of the company, will be performed in order to detect the
loophole of the company which is hindering its further enhancement of revenue. Apart from that,
the recommendation to eradicate the detected loopholes will also be provided in this report.
Discussion:
Environmental analysis
The environmental analysis is considered to be a strategic tool that helps an organization to
access its external as well as internal environment. Both external, as well as the internal
environment, has the potential to affect the performance of an organization. Therefore, in the
following paragraph, environmental analysis of the northern star resources has been conducted in
order to assess the level of threat as well as opportunities that can be availed by the mentioned
company.

3STRATEGIC MANAGEMENT CAPSTONE
PESTLE Analysis
PESTLE analysis is a strategic tool that will help the management of the mentioned
company to analyze its macro environment. The term PESTLE stands for Political, Economic,
Socio-cultural, Technological, Legal and Environmental factors that impose an impact on the
business of the Northern Star Resources.
Political
The political condition of Australia is stable and this has imposed a positive impact on
the long-term profitability of Northern Star. The Australian government provides immense
support to the gold mining industry through an effective legal framework and the bureaucracy as
well as interference of the government in the gold industry is much less compared to other
developed countries (Ferguson, Feigin & Kean, 2013). Moreover, the risk of military invasion is
also low in Australia. However, the taxation of Australia over the Australian gold industry is
high. The government peruses policies of hoarding gold for encouraging miners to mine new
gold.
Economic
In spite of being a developed country, the recent recession has shaken the financial stability
of the Australians. However, this fact has affected the gold industry of Australia positively.
Considering the fact that the price of gold is inversely proportional to the economic stability of a
country, the temporary instability of Australia has enhanced the demand for gold in the country.
Due to stock market fail, investors had invested heavily in gold that has resulted in the rise of
revenue of Northern Star Resources. Hence, the recession in Australia has positively affected the
company.