Business Case Analysis: Adani Australia - MGMT20144 Assignment

This report presents a business case analysis of Adani Australia, examining its business and governance structure as a public limited company listed on the Australian Securities Exchange (ASX). It explores the environmental factors influencing the company's performance, including political, social, economic, technological, legal, and environmental considerations. The analysis identifies the top three risks faced by Adani Australia: cultural and climate change, financial risks, and the risk of damaging aquifers. The report also delves into the company's business practices, emphasizing its focus on environmental responsibility, sustainable practices, and compliance with corporate social responsibility. Finally, it outlines the functional departments within Adani Australia, including production, finance, marketing, operations, research and development, sales, information technology, and human resources. The report concludes by highlighting the importance of ethical and sustainable business practices for the company's growth and compliance with various standards.

MGMT20144 - Business Case
Analysis

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
a.) Business and governance structure of the organization....................................................3
b.) Environmental factors influencing the performance of the company...............................4
c.) Top three risk faced by the company................................................................................4
d.) Business practice of the company.....................................................................................5
e.) Functional departments of company.................................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Business case analysis helps in providing best value analysis that not only consider cost
but also take into consideration other non- quantifiable and quantifiable aspects which in turn
helps in supporting various decision. This helps in forecasting various action outcomes and
investment decisions.
This study will highlight, business and governance structure of the organization. It will
also demonstrate various environmental factors which influence the performance of the
company. Furthermore, it will identify three risk factors of the company which influence
decision making. It will also examine the business practice and functional departments of the
company.
Adani Australia is an infrastructure and energy company which delivers energy solutions
to the world. This company mainly deals in coal, renewable energy, mines, gas dist port, etc.
MAIN BODY
a.) Business and governance structure of the organization.
Business structure is referred to as the category of the company that can be legally
recognized in a given set of jurisdiction. Business structure can be classified into sole
proprietorship, partnership, limited liability, cooperative, corporation, etc. Limited company can
be classified into private and public limited company (Arora & Salwan, (2017)). Private limited
company where the liability of the shareholder is limited to the capital which has been originally
invested. A limited company is its own legal entity where the members or shareholders of the
company are limited by guarantee or shares. A public limited company is the company which
offer shares to the public by getting listed on securities exchange. Adani Australia is listed on
Australian securities exchange (ASX). The securities of the company can be bought and sold.
Public company is strictly regulated and has to publish true financial position of the company in
order to evaluate the true worth of the organization.
Governance structure is the set of rules, policies, values, procedure, regulations, long
term planning, etc. which are set by the board of directors of the company. Governance structure
can be classified into four different models which includes policy board, policy governance
board, working board and collective board (Rosewarne, (2016)). Adani Australia is directed and
controlled by the board of directors because they are the one who is responsible for proper
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government structure in the organization. The key effective pillars of corporate government
structure includes accountability, transparency and security.
b.) Environmental factors influencing the performance of the company.
Environmental factors consists of both internal and external factors which influence the
performance and decision making of the company (Ralph & Hancock, (2019)). These are the list
of factors which affect or influence the performance and decision making of the Adani Australia
ltd.
Political factor: This factor includes policies, regulations, legislations, tax policy, labour
laws, trade restrictions, funding grants, fiscal policy, etc. Adani Australia must comply with all
the rules, regulations imposed by government within which its working.
Social and cultural factor: These factors mainly consist of cultural trends, organization
image, taste and preference of customer, demographics, etc. Adani Australia should understand
the need and preference of customers in order to attain higher goals and objectives.
Economic factor: These factors mainly consist of exchange rates, inflation, interest rates,
disposable income, financial capabilities, wage rate, economic growth, etc. which influences the
performance, productivity and profitability of the Adani Australia (Murphy & McGee, (2018)).
Technological factor: Technology has been emerging at a faster pace which in turn leads
to increase in cost for the business. Copyright infringements, maturity of technology,
communication with target markets, etc. largely influence the performance and decision making
of the company.
Legal factor: Compliance with various laws and standards such as health and safety laws,
competitive legislations, safety standards, product labelling and safety, consumer rights, etc.
helps in smooth functioning of the Adani Australia.
Environmental factor: Adani Australia is polluting the environment by releasing highly
polluted chemicals, carbon dioxide, cola laden water, etc. which in turn impose negative impact
on the environment and leads to global warming and various environmental issues. The company
should focus on reducing the carbon foot print, promote sustainable business practice, green
house gas emission and comply with environmental legislations.
c.) Top three risk faced by the company.
Cultural and climate change: Adani Australia leads to change in the climate which in
turn affects the operational performance and productivity of the organization. The major risk
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faced by the company is that there are various chemical particles exposed in the environment
(Blondeel & Van de Graaf, (2018)). This leads to increase in globalization which adversely
affects the operational efficiency and performance of the Adani Australia limited. Pollution from
burning coal results in contribution to global warming. This impose major risk on the health of
the economy as well as human life.
Financial risk: Adani Australia is facing financial risk which in turn affects the growth
and smooth functioning of the company. Financial risk results in default in debt payment to the
creditors which eventually hampers the goodwill and brand image of the company. This impose
major risk of existing and prospective creditors and suppliers of the company (Hales& Larkin,
(2018)). This also leads to rapid decline in the market share and financial position of the
company.
Risk of damaging aquifers: Adani Australia is damaging various natural resources which
in turn hampers the Great Artesian basin. The company is at greater risk to control the chemical
pollutants which have been transferred in the Great Artesian basin. Adani coal mine also affects
the great barrier reef. There are various chemical pollutants which are discharged in the water
and it adversely affects the health of the reef.
d.) Business practice of the company.
Business practice is an implication of effective strategy where the activities of the
company are done in the cost efficient manner. Company working in compliance with various
laws and standards results in higher operational growth and productivity. Adani Australia
focuses on being environmentally sensitive and responsible company. It focuses on reducing
waste in environment (Lyons, (2018)). Adani Australia focuses on sustainable practice which in
turn helps in mitigating negative environmental factors. It also focuses on development and
integration of advanced technology which helps in boosting up the sustainability of the Adani
Australia. The company also complies with various corporate social responsibility practice in
order to function in ethical and reliable manner. The business focuses on taking green and
sustainable initiatives which in turn helps in reduction in harmful gases (After a decade of
fighting green groups, Adani set to begin work on Australian coal mine, 2019). Company also
focuses on sustainable livelihood development, rural infrastructure development, etc. which in
turn leads to higher operational standards.
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The company should also focus on complying with various laws and legislations which in
turn helps in smooth functioning of the Adani Australia. The company also practice effective
environmental strategies which in turn results in higher operational growth, performance and
productivity. It should develop effective strategies in order to reduce emission of coal in an eco-
system. An effective business practice helps company to grow and expand their business by
using ethical and sustainable business practice. Sustainable and ethical business practice helps
company to expand their business to various international markets. This also helps in reduction
in cost and attainment of economies of scale (Dhir, (2019)). Adani Australia also develops a
recycling program to effectively use all the resources of the company. The company focuses on
chemical management which in turn helps company to work in sustainable and ethical manner.
e.) Functional departments of company.
Functional departments are the hierarchical structure which in turn helps in smooth and
systematic functioning of the organization. The functional department of the company mainly
consists of human resource, finance and accounting, operations, marketing and advertising,
information technology, production, sales, customer service, research and development, etc.
Adani Australia has production functional department which helps in producing all the
goods and services by turning raw material into finished products. Finance department helps in
managing the funds and capital of the Adani Australia which in turn results in higher operational
growth and efficiency. Marketing and advertising department helps in marketing the goods and
services to the prospective customers in order to increase the sales and revenue of the Adani
Australia. Operation management helps in strategic day to day functioning of the company in
order to achieve common goals and objectives of the organization (Kellow, (2018)). Operational
management helps in organizing, planning, monitoring and executing all the activities of the
company. Research and development helps in forecasting the future needs and requirements in
order to survive the competitive environment. Sales department helps in selling the goods and
services to the various national and international markets in order to make goods available
whenever they need. Information technology department helps in integrating new and advanced
technology into the company which results in higher sustainable growth and development.
Human resource department helps Adani Australia to hire the best prospective candidates who
have the desired skills and knowledge to carry out the particular task.
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CONCLUSION
From the above conducted study it has been summarized that, Business case analysis
helps in forecasting various action outcomes and investment decisions. Adani Australia is facing
various environmental factors and risk in order to perform ethically and sustainably in the
environment. The company also focuses on complying with various legal requirements of the
company in order to reach greater heights. Adani Australia also focuses on recycling and reusing
the resources in order to work ethically and sustainably. Reduction in carbon dioxide and use of
greener environmental practice helps in reduction of harmful substance in environment. This
study concludes that, company must comply with various laws and standards for smooth
functioning of the business.
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REFERENCES
Books and Journals
Arora, R., & Salwan, P. (2017). Role of Dynamic Political Management Capabilities in Business
Groups' Location Decision. Available at SSRN 3081362.
Blondeel, M. and Van de Graaf, T., 2018. Toward a global coal mining moratorium? A
comparative analysis of coal mining policies in the USA, China, India and
Australia. Climatic change.150(1-2), pp.89-101.
Dhir, S. (2019). Adani Group. In Cases in Strategic Management (pp. 1-24). Springer,
Singapore.
Hales, R., & Larkin, I. (2018). Successful action in the public sphere: the case of a sustainable
tourism-led community protest against coal seam gas mining in Australia. Journal of
Sustainable Tourism. 26(6).927-941.
Kellow, A. (2018). Business interests, energy competition and climate change: A Forensic
Analysis. In Negotiating Climate Change. Edward Elgar Publishing.
Lyons, K. (2018). Securing territory for mining when Traditional Owners say ‘No’: The
exceptional case of Wangan and Jagalingou in Australia. The Extractive Industries and
Society.
Ralph, N. and Hancock, L., 2019. Energy security, transnational politics, and renewable
electricity exports in Australia and South east Asia. Energy Research & Social Science.49.
pp.233-240.
Rosewarne, S. (2016). The transnationalisation of the Indian coal economy and the Australian
political economy: The fusion of regimes of accumulation?. Energy Policy.99. 214-223.
Online
After a decade of fighting green groups, Adani set to begin work on Australian coal mine. 2019.
[ONLINE]. Available through:<https://www.thehindubusinessline.com/companies/after-a-
decade-of-fighting-green-groups-adani-set-to-begin-work-on-australian-coal-mine/
article27776625.ece>
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