Detailed Business Analysis Report: Adani Australia, MGMT20144

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This report provides a comprehensive analysis of Adani Australia, examining its business and governance structures, and the environmental factors influencing its performance and decision-making. It delves into the company's risk management strategies, including financial, operational, and strategic risks, and how these are addressed. The report also explores Adani's business practices, emphasizing its commitment to sustainability and corporate social responsibility, including green mining policies and social impact management strategies. Furthermore, the analysis covers the functional departments within Adani Australia, detailing their roles and contributions to the company's overall objectives. The conclusion summarizes the key findings, highlighting Adani's adoption of effective strategies for growth and development in the Australian market.
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Adani, Australia
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Introduction
This report includes the information about Adani, Australia. The analyze of the
business structure and governance structure will be conducted for the analytical decision
making. The performance and decision making of the company depends on the various
factors which influence in making effective strategies. The performance or decision making
of the company is influenced by the various environmental factors. The various risks are
considered by the company as it helps the management in making effective decision for
improving the performance. Company has different departments and management set the
goals for each department for achieving the objectives.
About Adani, Australia
Adani group is in Australia since 2010 and invested almost 3.3 billion dollar till date.
Adani group has its business in renewable energy, port near Bowen, Carmichael mine and rail
projects in region of Queensland. It provides the energy solutions to the world. Their vision is
to create a world class leader in businesses for enriching lives and contributing to nations for
building infrastructure by sustainable value creation. Their values are courage, trust and
commitment for the performance of the company. It is an energy and infrastructure company
who are dedicated to deliver the services in the world. They are committed to provide a safe,
reliable, responsible and sustainable energy mix in the world.
Business Structure and governance structure
Business structure of an organization is a legal recognized given to the company for
jurisdiction and characterization by giving the legal category. It can be sole proprietorship,
partnership, subsidiaries, or limited liabilities companies. In organization, governance
structure is decided by the board of directors and they are responsible for the policies, values,
procedures, and long term planning of business for achieving the goals and objectives of the
organization. In governance structure, collective board, policy governance board, policy
board are included. Adani group adopted the policies and practices at the different level for
the growth and development of business (Amran, et al., 2014). For the effective governance
structure, Adani Australia has adopted the accountability, fairness, disclosure, and
transparency. Business structure in Adani, Australia includes the 8 board of directors in
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which 5 are non executive directors. In board of directors group, the committee which are
included are audit committee, remuneration committee, and shareholders committee who
meet and take the various managerial decisions for improving the performance. The business
structure of Adani, Australia is integrated and it includes the six public traded companies.
Governance structure of the company includes the strategic vision which helps the employees
and stakeholders in performing the activities. Adani group perform the activities for operation
and activities by reviewing and auditing process which is done by internal and external
committee (David, 2013)
.
Environmental factors
An environmental factor influences the performance and decision making of the
company. The various internal and external environmental factors impacts on the success,
scale and vision and helps in making development strategy. Internal environmental factors
are those analyzed and controlled within the company. The internal factors like policies and
plans, financial forecast, organizational structure, labour management are the factors which
influence the performance and decision making (Chang, 2016). External environmental
factors cannot be controlled or managed by the board as these are linked outside of the
organization. Micro and macro factors are included in the external factors as the micro
includes the customers, suppliers, stakeholders and competitors who are linked with the
business in any way and macro factors are those which includes the political, legal,
technological, economic and natural factors which are not in control of management. It is
essential to adopt and manage the plans and policies which are regulated for running the
business successfully. In Adani, the major issue is to make the availability of resources of
time. External factors are not in control of the company (Provan and Kenis, 2008).
Environmental factors which influence the performance of Adani are the planning and
policies which are adopted by the management for a different level of organizations.
Availability of resources is necessary for the Adani in the mining industry
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Risks
Every organization faces the risks for improving the performance It is necessary to the
company to consider the risk for the growth and development of the company. Adani is
exposed to business risk as it can be internal or external. The company has enabled the risk
management system for recognize and analyse the risks in advance for taking the appropriate
action in future. The financial risks which include the market risk, credit risk and Liquidity
risk. Interest rate fluctuation is the risk which Adani faces and also influences the
performance of the company. It is necessary for the company to maintain the account and
reports for maintaining the financial risks. In order to establish and monitor the strategic,
financial and operational risks, it is necessary for the management to adopt the strategic
practices (Torabi, et al., 2016). In Australia, Adani group faced the risk business risk and the
causes for business risk are competition, change in government, mismanagement, human
causes and natural factors. Operational risk is faced by the company and it effects in the
performance of the company. Operational risk is when the loss is resulted from some
inadequate or failed procedure and policies. It can happen because of employee error, system
failures or any fraud event. The risks which are associated with the adani group is the credit
risk in which the risk is of trade receivables which is done on daily basis by the management.
Different departments of the company manage the tasks and activities for achieving the
objectives of the company. Performance of the employees are measured by the managers and
motivate th employees to perform effectively (Australia, 2017).
Business practices
Adani has adopted the sustainability practices for implementing the effective culture
as it helps in promoting the entrepreneurship, integration, passion, results, dedication. They
took the initiative to enhance their value in society by corporate social responsibilities. They
had made the curage to adopt the new strategies and embrace new ideas in a innovative way
to provide the better services to people in Australia. They believe and trust their all
stakeholders. Its commitment is to stand by our promises and adhere to the high standard of
work in all CSR activities (Kerzner, 2017). Company has adopted green mining policies for
good mining practices. Adani has adopted the sustainability practices in the company for
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influencing the performance of the business. They had made the commitment to provide a
safe, responsible, reliable and sustainable energy mix to the world. With the help of social
impact management strategy, the company ensures to provide a positive contribution to the
various communities in which they operate and recognize proactive relation for the mutual
benefits. Adani group is linked with the health and safety group for providing and
maintaining the health of employees and workers. They maintain the safety standards and
environment for the betterment of the company (Wiztz, wt al., 2016). They consider the
SIMS as the management strategies for the development and monitoring and reporting for the
benefits of government, stakeholders, and community.
Functional departments
In Adani, Australia the various departments are important which helps in running and
managing the business. The departments which are included for managing the various
business are Carmichael rail, Carmichael Mines, Abbot point port and renewable in Australia.
The functional departments are environmental and safety department, Human resource
department, legal, purchase and sales department, material department and also engineering
department (Grayson and Hodges, 2017). Every department perform their task for achieving
the goals and objectives of business. Legal department of the company implement the
strategies and helps in adopting the laws and policies for securing the management and
solving the issues which arises during the process of the operations and activities. Operations
department plays a crucial role in Adani group (Meredith, et al.,2017). Employees and
workers perform the task in operations department and their performance is reviewed by the
manager of the department. Purchase and sales department is responsible for the purchasing
and selling of goods and services. It is necessary to provide the raw material for the
production of goods and services. They are responsible to provide adequate raw material on
time to continue the production and not hampering the work as it may affect the productivity.
Every functional department has to perform its task to achieve the common goal of the
company. Management department is responsible for supervising the employee’s
performance. It includes the planning, organizing, controlling and leading. Every functional
department has to perform its task to achieve the common goal of the company (Burns,
2016).
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Conclusion
It is concluded that Adani, Australia is a biggest coal supplier and they had adopted
the various effective strategies for the growth and development of the company. An internal
and external environmental factor helps in analyzing the market condition of the business.
Company has faced the various risks like financial, operational and strategic risk which
influence the performance and helps the management in taking effective decisions for future.
Company also adopted the sustainable practice for the future growth and development.
Company has implemented the strategies for the benefits of the company. It is analyzed that
the company has adopted effective strategies for the growth and development of the business.
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Reference
Amran, A., Lee, S. P., & Devi, S. S. (2014). The influence of governance structure and
strategic corporate social responsibility toward sustainability reporting
quality. Business Strategy and the Environment, 23(4), 217-235.
Australia, E. J. (2017). The Adani Brief: What governments and financiers need to know
about the Adani Group’s record overseas.
Burns, P. (2016). Entrepreneurship and small business. Palgrave Macmillan Limited.
Chang, J. F. (2016). Business process management systems: strategy and implementation.
Auerbach Publications.
David, F. R., & David, F. R. (2013). Strategic management: Concepts and cases: A
competitive advantage approach. Pearson.
Grayson, D., & Hodges, A. (2017). Corporate social opportunity!: Seven steps to make
corporate social responsibility work for your business. Routledge.
Kerzner, H. (2017). Project management: a systems approach to planning, scheduling, and
controlling. John Wiley & Sons.
Meredith, J. R., Mantel Jr, S. J., & Shafer, S. M. (2017). Project management: a managerial
approach. John Wiley & Sons.
Provan, K. G., & Kenis, P. (2008). Modes of network governance: Structure, management,
and effectiveness. Journal of public administration research and theory, 18(2), 229-
252.
Torabi, S. A., Giahi, R., & Sahebjamnia, N. (2016). An enhanced risk assessment framework
for business continuity management systems. Safety Science, 89, 201-218.
Wirtz, B. W., Pistoia, A., Ullrich, S., & Göttel, V. (2016). Business models: Origin,
development and future research perspectives. Long range planning, 49(1), 36-54.
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