Strategic Analysis of Adani Group: BMO6511 Strategy Workbook

This report presents a strategic analysis of the Adani Group, a multinational conglomerate with diverse business interests, including logistics, resources, and energy, with a focus on its operations in the mining industry. The analysis employs various strategic tools, including PESTEL, SWOT, and Porter's Five Forces, to evaluate the external and internal environments. The PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors affecting the company's operations, particularly in Australia. The SWOT analysis identifies the company's strengths, weaknesses, opportunities, and threats, integrating them to formulate strategic recommendations. Porter's Five Forces framework assesses the competitive intensity within the mining industry, focusing on the threat of new entrants, the bargaining power of buyers and suppliers, the threat of substitutes, and competitive rivalry. The report also includes an overview of the company's financial performance and market position, providing a comprehensive assessment of its strategic landscape and challenges.

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STRATEGY
WORKBOOK
BMO6511
Strategic Management &
Business Policy
Research Business ……………………………………….
Student ……………………………….. id ……………………………..
Student ……………………………….. id ……………………………..
Student ……………………………….. id ……………………………..
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Chosen Analysis:
PESTEL □
SWOT □
Porter 5 FORCES □
Industry Supply Chain □
If you do this assignment as an individual you select the one
analysis tool that you feel is the most relvant to apply, and you
must explain why.
If this is handled by a group, all four analysis tools must be be
used.
Word Count: Individual 1,500 Group 2,500
ASSESSMENT
ONE
STRATEGY
WORKBOOK
BMO6511
Strategic Management &
Business Policy

WORKSHEET 1: Over view of the Business
Adani is a multinational conglomerate of India which is located in Ahmedabad, Gujarat. The company was established in the year 1988 by
Gautam Adani as a commodity trading business. The group varied businesses included logistics, resources, agribusiness, energy, real estates,
defence, fincial service and aerospace. The vision of the company is to achieve a passoniate commitment to social responsibilities towards
fostering, suatinable, communities and integrated development just to improve the value of life (Adani Australia, 2018c). To reach at this
position, the mission of the company is to perform the duties as an organizer to provide the advantage to the people without any difference of
caste or community in the field of community health, education and advertising of social and economic welfare.
It has been evaluated that the company is growing in the continuous manner. The Annual turnover of the organization in the last five years are
10624.61, 12875.27, 11017, 8249.26, 2404.20 in the year 2015, 2016, 2017, 2018, 2019 respectively. The net profit for the last five years is -
225.23, 1530.62, 2229.63, -39.40, -504.55 in the year 2015, 2016, 2017, and 2018 (Adani Australia, 2018b). The organization acheieve the high
success just because of its employees. As the organization is operating in high revenue or in different fields that means it is a big corporation that
have more than 50 employees.
Geographic operations scope – The company mainly located in Ahmedabad, Gujarat but it operates at the global level as it operates in Australia,
Singapore and the other international locations. The company operates in the Conglomerate Industry (Adani Australia, 2018b).
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There are many main competitor of Adani Group in Australia such as Coles, Wesfarmers, BHP, Rio Tinto and the others who operates the
business in cole mines as well. In Australia, the company provides the services of energy, infrastructures as it operates in the business of coles
amd mines (Mining Global, 2015).
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Worksheet 2: External Environment PESTEL analysis
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Economic Factors
It has been seen that the company will directly affected from the economic factors such as inflation, incomes, and investment decision of
government. In the country Australia, the rate of risk is high in terms of borrowing and investment. Australia is a large mixed market economy
with the GDP of A$1.69 trillion in the year 2017. The company can grow in the market as the government has more capability to invest in the
mining industry. In the year 2016, there were over 370 operating mine sites across the borders just because of heavy investment of the
government towards it. The economic factor defines the positive situation for the company in the terms of high growth (Export Gov., 2018).
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Political/Legal Factors
The political factors state the legal decisions taken by the government towards the industry. The government of Australia is highly supportive
towards the mining industry just to develop the economy. As per the news, the mining company of Australia gives the money to the political
parties as the donation to get the favorable result for expanding the business. The government of Australia takes the favorable decision for the
mining industry. The main motive of mining industry is to spread the business in Queensland under the democratic process. Although, it is not
ethical but it is beneficial for the mining companies to operates the business in the market (Innis, 2016).
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Socio-cultural Factors
It is observed that the growth in population in the rural areas affects the infrastructure of the industry. In the year 2016, the growth rate of
population in Australia is 1.5% which is increasing in the country or in rural areas due to which the requirement of healthy environment is
required to live (The conversation, 2018). The increasing number of people needs the space to live due to which the infrastructures of the
companies are affected. Health is also a major issues for the companies as the people does not lives near the mining industry due to high smoke
and the other particles.
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Technological Factors
Australia is known for adopting new technologies at a faster rate than the other countries. The advance technology helps the industry to operate
the business effectively and smoothly. As per the report, technology is set to revolutionize the Australian mining sector. The Minerals Council of
Australia (MCA) states that in the next five years more than 77% of jobs in the country mining sectors will be altered by technological
innovation due to which the productivity is increases upto 23% (Evans, 2019). Technology factors helps to increasing the productivity of the
company.
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Global Factors
Mining Industry is the global industry as it delivers the energy, and the other resources. Mining industries are the big company which is operated
as per the specific projects in different locations that is why; political trends are the major trend that affects the Australian markets. The decision
taken by the government of any country towards the industry directly affects the results of the organizations.
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Demographic Factors
It has been observed that the social factors affect the mining industry as the increasing population affected the operations. Increasing population
affects the operation of industry as the people need more space for live free due to which the industries has to build or operate in small areas so
that the people live free.
It is observed that more energy is consumed while changing the lifestyle of people. The cost of energy is increasing due to high consumption of
them by the consumers. Raising the cost of energy is the biggest financial threat for the mining operations. Finance is the major component in
the mining industries as it requires the heavy investment in one project (Mancini, and Sala, 2018).
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Worksheet 3: Identifying Opportunities and Threats
Factor Opportunity (O) or
Threat (T)
Why? Impact?
High, Medium or Low
Source of further
information?
Political Decision Opportunity As discussed above, the mining
industries give the charity to
government to spread the
business and the government
took the decision in the favour of
mining industry. That is why;
Adani Group has the opportunity
to spread the business (Adani
Australia, 2018).
High News Report
Technology Opportunity Advance technology improves Medium A general Website
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the productivity of mining
industry due to which it can be
said that the organization has the
opportunity to increase the
productivity and earns the more
revenue or builds the brand
image in the market.
Enhancing life
style
Threat As per the above discussion, it is
observed that the changing
lifestyle increasing cost of
energy consumption and that is a
biggest threat for the mining
industry
High Science Data journal
Competitors Threat It is a threat for Adani Group
because there are several
Medium Competitive report
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