MGMT20144 Business Case Analysis: Adani Australia's Operations

This report provides a comprehensive business case analysis of Adani Australia, examining its structure, governance, and decision-making processes. It delves into the company's functional organizational structure and decentralized decision-making model. The report identifies key environmental factors, including legal and environmental regulations, that influence Adani's operations and analyzes the risks the company faces, such as environmental concerns, technological failures, and economic fluctuations. Furthermore, the report explores Adani's business practices, including its open innovation model and stakeholder involvement, and assesses the performance of the functional departments. The analysis highlights the interconnectedness of business operations, environmental considerations, and strategic management in the context of Adani Australia's activities.

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1.Introduction
The strategic management initiatives of organizations are reflected through the structure
and the culture that is being followed by the ventures. On the other hand, the decision making
criteria and the manner in which the organizations address the risks. In this relation, the research
will examine the case of Adani Australia and evaluate the structure and governance along with
the decision making capacities. The research will also enumerate the different risks that are
encountered by the venture while studying the influence of the same on the performance of the
organization. The research will also enumerate the business practices that are initiated byy the
venture and the functional departments of the same.
2.Case company synopsis
Adani Australia is a multi-dimensional energy and infrastructure company which is
focused on developing energy solutions for the other organizations. The organization operates
under the supportive industry which provides thermal and renewable energy solutions to
Australia and the Asia Pacific region (Adani Australia., 2019). The organization operates
through Abbot Point Terminal that has been exporting Queensland coals for over 30 years
(Adani Australia., 2019). The continuous innovations that are initiated by the organization
enabled the venture in improving the propositions as per the trends. The developments in the
different fields are specifically based on the culture and decision making characteristics of the
organization while operating in the different markets.
3.Business management operations in Adani Australia
3.1Business structure and governance structure of Adani Australia
Adani Australia followed the functional organizational structure with the objective of
enhancing the rate of operations through inclusion of experts in the different departments.

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Arnautovic (2017) opined that the functional organizational structure provides a venture in
developing the operations through recruitment of specialist talents. In this relation, the concerned
organization followed a functional organizational structure with the objective of enhancing the
performance of the different departments through the inclusion of diverse range of talents and
effective coordination among the same. Albers, Wohlgezogen and Zajac (2016) stated that the
key modifications in the organizational operations are reliant on the effective functioning of the
different departments through collaborated functioning of different talents. Therefore, the
functional organizational model ensured the uninterrupted functioning of the different
departments of Adani Australia while improving the quality of the propositions.
The concerned venture undertakes decentralized decision making process as the
governance structure with the objective of encouraging the active involvement of the
stakeholders in the organizational processes. The decentralized decision making structure of the
venture ensured the rate of operations while operating in the different markets. Chliaoutakis and
Chalkiadakis (2016) stated that the decentralized decision making in an organization enables the
same in equally distributing the governance of the venture among the different stakeholders. The
decentralized decision making model enabled Adani in maximizing the rate of operations
through informed decision making capacities (Keerin, Kurutach & Boongoen, 2016). Therefore,
the decentralised decision making criteria of Adani enabled the venture in expanding the
operations in the different regions through a thorough understanding of the different changes that
are required as per the market assessments.
3.2Environmental factors that are influencing Adani’s decision-making
The major environmental factors that have been affecting the rate of operations of the
venture are the legal and environmental. The legal and environmental aspects are inter-twined as

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the enormous scale of mining activities that are initiated by the organization Carmichael Coal
Mine affected the marine ecosystems and the climate of Queensland. It has been noticed that the
mine produced around 2.3 billion tonnes of thermal coal which emitted 4.7 billion tonnes of
greenhouse gases affecting the environment drastically (Envlaw.com.au., 2019). However, the
organization encountered significant objections from the Land Court of Queensland which
affected the rate of operations of the venture (Envlaw.com.au., 2019). On the other hand, the
organization was required to take approval under the Water Act 2000 and the State Development
and Public Works Organisation Act 1971 which applied an environmental impact statement
(EIS).
The operations of the organization was not approved by the Federal Court on 4 August
2015 o the first attempt (Envlaw.com.au., 2019). The decision making of the organization are
thereby greatly influenced by the legal and environmental regulations that guided the operations
of the venture. On the other hand, the changes in the political situations greatly influenced the
rate of operations of the venture while operating in the different markets. The assessment of the
environmental factors encountered by Adani enabled the venture in developing an idea of the
risks and the possible mitigation strategies that must be employed for the sustenance of the
venture. Therefore, the major environmental factors that influenced the decision making process
of Adani are specifically political, environmental and legal in nature.
3.3Risks faced by Adani and its influence on the performance
The major risks that are being faced by the organization, Adani, and the impact of the
same on the performance are:
 Environmental health and safety concerns: The organization faces different
environmental concerns relating to the mining based operations that are initiated by the

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same in Queensland. The imposition of Water Act 2000 and the State Development and
Public Works Organisation Act 1971 restricted the mining based operations of the same
in Carmichael Coal Mine (Envlaw.com.au., 2019). The environmental concerns related to
the degradation of the Great Barrier Reef resulted to objections from different
environmental protection agencies. The environmental protection agencies appealed to
the Federal Court of Justice in Queensland with the objective of preventing the operations
of the venture on the grounds of marine ecosystem degradation and climate concerns. On
the other hand, the workplace health and safety related legislations restricted the
organization in maximizing the utilization of the human resources for improving the
profitability ration of the same. The overall legislative and environmental concerns
affected the arte of operations of the venture while expanding their line in Queensland.
 Technological failures: The technological failures like the malfunctioning of the mining
machinery and the other systematic failures might affect the rate of operations of the
venture (Lambini et al., 2019). The technological failures and glitches not only affected
the performance of the organization while operating in the different markets but also
minimized the rate of returns on the investments made by the same. On the other hand,
the organization faced enhanced competition from the new entrants in the market which
resisted the competitive edge of the venture.
 Fluctuations in the economy: The fluctuations in the global economy might affect the
rate of sales of the venture. The organization aimed at suppling power to the different
industries. However, the fluctuations n the global economies would affect the buying
behaviour of the businesses which might again challenge the sustenance of the venture
while operating in the different market segments.

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3.4Business practices of Adani influencing its performance
The organization aimed at developing an open innovation model with the objective of
developing the existing technologies while operating in the different markets. The organization
also encouraged the involvement of the stakeholders in the decisions that are initiated by the
venture through the application of decentralized decision making model (Adani Australia.,
2019). The decentralized decision making system in the organization enabled the venture in
identifying and avoiding the risks with the objective of enhancing the rate of operations relating
to expansion (Lagos et al., 2018). The maximized involvement and collaboration among the
stakeholders ensured the organization to improve the performance of the same while operating in
the different markets. On the other hand, the organization also organized a team of market
analysts and R&D with the objective of enhancing the arte of operations without affecting the
environment significantly.
The enumeration of a team of R&D experts enabled the organization in inducing frequent
innovations in the operational models (Adani Australia., 2019). The diverse modifications in the
range of operations in the organization are based on the corporate culture and the common
objectives relating to growth of the venture. In this relation, the organization developed a range
of activities relating to training of the employees and the engineers with the objective of
perfecting the activities for reducing the performance gaps (Adani Australia., 2019). Therefore,
the enhanced business practices enabled the venture in avoiding the risks and develop suitable
operational units for sustenance.
3.5Functional departments of Adani
The major functional units that must be considered of Adani are the managers in the
different departments, human resource department, environmental Health and safety

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practitioners, the technical teams, financial administration teams, IT and the labors. The different
functional units in the organization are controlled by the CEO. However, as the organization
followed a decentralized structure, the management personnel from the different departments are
permitted to take autonomous decisions with the objective of improving the performance of the
venture. The collaborative functioning of the different departments ensured the efficiency of the
operations in alignment with the needs of organizational growth and sustenance.
4.Conclusion
Therefore, from the above analysis it might be noted that the concerned organization,
Adani, face significant issues relating to the environmental and legal aspects. However, the
organization managed to develop a sound business management operations with the objective of
ensuring the sustenance of the same. The research enumerated a range of business operations and
the functional units of the organization which enabled the organization in avoiding the risks that
are generally faced by the same while operating in the Australian markets.

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References
Adani Australia. (2019). Adani Australia. Retrieved 13 August 2019, from
https://www.adaniaustralia.com/
Albers, S., Wohlgezogen, F., & Zajac, E. J. (2016). Strategic alliance structures: An organization
design perspective. Journal of Management, 42(3), 582-614.
Arnautovic, K. (2017). Resources, race and rights: A case study of Native Title and the Adani
Carmichael coal mine.
Chliaoutakis, A., & Chalkiadakis, G. (2016). Agent-based modeling of ancient societies and their
organization structure. Autonomous Agents and Multi-Agent Systems, 30(6), 1072-1116.
Envlaw.com.au. (2019). Environmental Law Australia | Carmichael Coal (“Adani”) Mine Cases
in Queensland courts. Retrieved 13 August 2019, from http://envlaw.com.au/carmichael-
coal-mine-case/
Keerin, P., Kurutach, W., & Boongoen, T. (2016). A cluster-directed framework for neighbour
based imputation of missing value in microarray data. International Journal of Data
Mining and Bioinformatics, 15(2), 165-193.
Lagos, C., Carrasco, R., Soto, I., Fuertes, G., Alfaro, M., & Vargas, M. (2018, May). Predictive
analysis of energy consumption in minining for making decisions. In 2018 7th
International Conference on Computers Communications and Control (ICCCC) (pp. 270-
275). IEEE.
Lambini, C. K., Bayer, J., Beyer, T., Engelbrecht, K., Hokan, M., Kiewitt, Y., ... & Stöbesand, H.
(2019). Conflicts, participation and co-management in protected areas.

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