Business Management 23: Analysis of Ansell Limited Report

This report provides a comprehensive analysis of Ansell Limited, a leading global provider of protective solutions. It begins with an introduction and an overview of the industry, highlighting the growing demand for safety and protection measures. The report then delves into Ansell's company description, including its business type, legal structure, history, mission, vision, objectives, and core principles. A detailed examination of Ansell's product and service factors follows, including product analysis, customer and demand analysis, and the competitive landscape. The report also assesses the company's environmental factors, such as the host country's business climate, SWOT analysis, government constraints, and relevant laws and regulations. Furthermore, it explores Ansell's business strategies, covering product/service positioning, pricing, distribution, promotion, and estimated sales. The analysis extends to financial planning, including cash flow analysis, projected profit and loss statements, and other financial considerations. Finally, the report concludes with management considerations, such as personnel/sales factors, business advisors, and contingency plans. The report emphasizes Ansell's strategic approach to international business, its competitive advantages, and its efforts to meet market demands and achieve sustainable growth.

Running Head: ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 1.
Analysis of Ansell Limited Business Management
Name
Institution

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 2.
Contents
1.0 Introduction...........................................................................................................................................4
2.0 Industry business Description................................................................................................................4
3. Company Description..............................................................................................................................5
3.1 Type of business................................................................................................................................5
3.2 Legal Structure of Ansell Company....................................................................................................6
3.3 Ansell Company History/Mission/Vision/Objectives.........................................................................6
3.4 Company principles and ownership structure...................................................................................7
4.0 Ansell Limited Product of Service Factors..............................................................................................8
4.1 Product of Service Analysis................................................................................................................8
4.2 Ansell Customer and Demand Analysis..............................................................................................9
4.3. Ansell Competitive situation...........................................................................................................10
5.0 Ansell Limited Environmental Factors.................................................................................................11
5.1 Host country Business climate.........................................................................................................11
5.2 Ansell Limited SWOT Analyses.........................................................................................................12
5.3 Government Constraints/incentives................................................................................................13
5.4 Law/ Regulation/Administration......................................................................................................14
6.0 Ansell limited Business Strategies........................................................................................................16
6.1 Product/service positioning.............................................................................................................16
6.2 Ansell Limited Pricing Strategy........................................................................................................16
6.3 Ansell limited Distribution/ logistics................................................................................................17
6.4 promotion and advertising Strategy................................................................................................17
6.5 Ansell Limited Estimated sales/sales mix.........................................................................................18
6.6 Product and service strategies.........................................................................................................19
7.0 Ansell Financial planning.....................................................................................................................19
7.1 Ansell Cash flow Analysis.................................................................................................................19
7.2 projected profit and loss statement................................................................................................20
7.3 other financial statements...............................................................................................................20
8.0 Management considerations...............................................................................................................20
8.1 Personnel/sales factors....................................................................................................................20
8.2 Business Advisers.............................................................................................................................21
8.3 Contingency Plans............................................................................................................................21

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 3.
Conclusions................................................................................................................................................22
Appendices................................................................................................................................................24
References.................................................................................................................................................26

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 4.
Executive Summary
International business management requires a broad understanding of the global business
environment. For any company to be successful in their strategy to expand their businesses
internationally there is a need to understand the international business environments. However,
one cannot venture into the international business without establishing his or her current business
strategies to achieve optimum efficiency and competitiveness in the markets they operate. This
report has provided a case analysis of the Ansell Limited Company based in Australia. The
report has provided a description and understanding of the company nature of business and the
current business strategies employed by the company to achieve her strategic goals and
objectives. The report has also provided an understanding of the Australian business
environment in a bid to understand the ease of doing business in the country compared to other
countries. The report ends by providing an understanding of the various management
considerations which have been developed by the company management in a bid to achieve
future strategic goals through contingency planning.
2.0 Industry business Description
The rapid growth of industrial and manufacturing businesses or activities have increased
the need for safety and protection solutions. On a daily basis globally, people are exposed to
various risks which require protection and safety measures. Therefore the manufacturing industry
of protective solutions has immensely grown in the recent past as the countries and businesses
continue to seek or work to create a safer and protected world (Badhani et al., 2015). According
to a market data report conducted by the Market Business Insider on 4th of August 2017, the

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 5.
global protective gloves industry or market was estimated to have reached USD 8.69 in 2017 and
projected to reach USD 11.26 billion in terms of profit margin by the year 2022. The main
players in the industry or market include companies such as 3M Company; Ansell Limited
Company, Kossan, Hartalega Company, Latex, Bull Gloves, Cordova Safety Company among
other international companies. The industry is expected to growth at 12.8 growth rate. The
growth of the manufacturing industry for safety and protection solutions has grown due to the
continued efforts by business regulatory authorities which require compliance with health and
safety regulations (Agarwal & Ansell, 2016). Ansell Company has been one of the top leading
manufacturer and provider of protective solutions globally. Therefore this research project aims
at providing an analysis of the company overall international strategic management.
3. Company Description
3.1 Type of business
Ansell Company is a leading global provider of protective solutions, and it operates an
entirely as a manufacturing company. The company manufactures a wide range of protection
solutions to meet the ever-changing individual and business needs and demands in their various
markets and industries (Yasuda & Ansell, 2015). The innovative company strategy guides the
manufacturing activities by manufacturing advanced protection products that will solve most
challenges for the industrial workers. In its manufacturing activities, the company operates two
main divisions including the industrial division and the health division (Ansell & Gash, 2017).
Ansell industrial division is involved in the manufacturing and marketing of high-performance
multi-use protection solutions specifically for the hands, foot and body protection for a wide
range of industries. On the other hand, the Ansell Health division is involved in the manufacture

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 6.
of a range of healthcare surgical and examination gloves which cover all applications. It also
manufactures healthcare safety devices and active infection protection products.
3.2 Legal Structure of Ansell Company
Ansell Limited is a public limited company, and therefore the ownership of the company
is regarding shareholding capacity. The voting rights of the shareholders decide on the company
through the company board of executives. The company is therefore listed on the Australia Stock
Exchange where potential investors, as well as the existing company investors, can analyze the
trend or how their shares are trading in the share market.
3.3 Ansell Company History/Mission/Vision/Objectives
The company started as the Dunlop Pneumatic Tyre Company of Australia in the year
1899. However, in the year 1929, the company merged with the Perdrian Rubber Company a
business move that led to the changing of its name to Dunlop Perdrian limited. In the year 2002,
the company changed its name to Ansell Limited. It was founded by Eric Norman Ansell and has
its headquarters in Melbourne Australia. It is a global leader, manufacturer, and provider of
protective solutions for both industrial and healthcare range of applications.
The primary concern of the company is to protect millions of people around the world
who depend on the company for both professional and personal lives. The company strives to
create advanced solutions through technology and innovation that will assist in solving the
challenges of industrial workers globally. The company is guided by its vision of providing

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 7.
innovative solutions for protection and safety, well-being and peace of mind for everyone
regardless of whom they are and where they are.
The primary objectives of the company are to provide protection solutions to their
markets and industries. The company also seeks to provide innovative solutions which will be
able to address or meet the needs and demands of their customers in different industries globally.
The company also aims to achieve corporate social sustainability which will contribute to
enhancing its effectiveness in meeting the business, community, suppliers and environmental
demands.
3.4 Company principles and ownership structure
For the company to achieve its set goals and objectives, it must act or operate within
specific policies which will make them unique from their competitors in the industry. The
company, therefore, operates under the principle of corporate social sustainability where it seeks
to meet the demands of the company stakeholders, environmental conservation, and community-
based activities to promote social and economic development (Choi & Choi, 2015). The
company also operates under the principle of diversity and inclusion by serving the interest of all
customer groups no matter who they are or even where they are. Its policy of protection of
human rights has played a vital role in meeting the demands of their customers from various
markets and industries. Its service provision strategy is guided by the company principle to
provide quality protection services globally. The company also has a guiding principle of
compliance with the UK legislation of Modern Slavery Act.
The ownership of the company is divided into two based on data provided by the
Australian Stock Exchange. The company is owned by both owned by institutions as well as by

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 8.
the general public. The general public owns 41.01 percent of the company and therefore giving
the retail investors collective power in influencing the decisions of the company and especially
on the significant policy decisions. Secondly the different institutions own 54.59 percent of the
company shares and form the largest ownership group of the company. This exposes the
company into the risk of volatile stock price movement if the institutions block the potential
traders during open markets. There company also has insider ownership from various
stakeholders in the company of 0.40 percent which means that the company has a level of
shareholder alignment since the insider owners of the company choose the projects with higher
returns on investment (Jaeger, 2016). However their voting power is limited compared to that of
institutional owners as well as the general public. For their decisions to be implemented there is a
need to develop a consensus with the other owners of the company especially in matters relating
to policy implementation in the company.
4.0 Ansell Limited Product of Service Factors
4.1 Product of Service Analysis
The company seeks to achieve economies of scale in their operations implying that there
is need to venture and develop new growth strategies. One of the regions where the company has
not ventured into or diversified their operations is the African continent. Despite having
established itself in the region, there is a lot of growth opportunities in the gloves protection and
manufacturing industry. This plan therefore aims at developing entry strategies for the company
into the East African market. The gloves protective industry in the region is not efficiently run by
the existing companies and demand for quality protective industrial and medical protection
devices has continued to rise (Wyatt et al., 2016). The main company in the region supplying the

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 9.
protective solutions is the KEMA (EA) Ltd which has become a leader in the industry through
provision of quality products and related services. Ansell Limted Company has diverse range of
services and products including the hands, foot and body protection gloves or products for
different or a wide range of application in various industries. Under the company industrial
division the company produces a range of protective products for the automotive, machinery and
equipment industries, for food processing, chemical engineering protective services as well as
life sciences protective solutions and metal fabric protection solutions. On the other hand, the
healthcare division produces or offers healthcare protective solutions and specializes in the
production of surgical gloves, specialty gloves as well as examination gloves (Bedetti et al.,
2015). The provision of these services and products into the east African region will provide the
company with a competitive edge and advantage in the industry since compared to the services
provided by the existing firms in the region; Ansell provides quality and reliable products. The
medical gloves such as the surgical gloves, latex gloves and condoms have gained great
recognition in the industry due to their quality. The company can therefore use the brand name of
the company to venture into new international markets. The protective clothing is also of high
quality offering great services to the various employees or staffs using them in various
organizations or industries compared to products made by small companies. The quality of their
products can therefore be used as a competitive strategy as it grants them a competitive edge.
The company provides guardian services by helping their partner or consulting
companies when making decisions to acquire protective types of equipment by assisting them to
select the right personal protective equipment solution to improve the safety as well as the
company productivity and performance. Such services are very vital in venturing into new
international markets as through provision of guarding services the company would be able to

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 10.
understand the market dynamics of the region and develop effective entry strategies. The
company also provides care services to different or a wide range of industries and companies
(Arcury et al., 2015). The care is guided and supported by a scientific advisory network that is
comprised of different physicians, researcher, leading scientists as well as educators from various
parts of the world. The company also provides patent licensing services to different companies
and most important to the technological and innovative companies.
4.2 Ansell Customer and Demand Analysis
The East African region has being characterized with increased population growth with
countries such as Kenya, Tanzania and Rwanda experiencing growth in their industrial and
manufacturing industries. Improved health services have become a major concern in the region
and therefore increasing the demand for protective solutions in the medial, health care and
industrial sectors. with increased industrial activities there is increased demand for industrial
protective gloves, while the increased populations creates a need for improved health care
services and therefore increasing the demand for healthcare protective solutions such as the
surgical gloves. The growth of sexually transmitted diseases such as HIV and AIDS in the region
has increased the demand for protective solutions such as condoms for prevention purposes.
Therefore the region has great potential market for expansion purposes for a company such as
Ansell Limited which has already established itself in international gloves protection industry.
The company has been able to position itself in the market and has an extensive customer base
due to its vast operations network. The company has an overall healthy market share which gives
it a competitive advantage over their competitors. The customer base runs across all the

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 11.
continents including America, Europe, Africa, and Asia and even in the Middle East and
Caribbean Africa Pacific countries where demand has continued to increase due to continued
focus on infection control and the need for protective devices (Goetsch & Davis, 2014). The
company has a great growth opportunity in this region to provide quality services aimed at
meeting the needs and desires of their clients in the region.
4.3. Ansell Competitive situation
Competition in the Gloves Protective industry is increasing with major competitors in
Australia, America and Asia Pacific competing to become market leaders. Majority of firms have
therefore shifted their focus in expanding their growth strategies to the Middle East countries,
China as well as in the African continent. The East African market is not dominated by key
players in the industry characterized by small operations and presence of international
companies. Currently the KEMA (EA) limited is the market leader in the region. Ansell limited
company despite having a competitive advantage in the global gloves protective industry through
diversifying their operations to many over 55 countries has continued to face increasing
competition from the industry rivals. The company has not achieved its optimum efficiency, and
therefore there is a need to develop effective strategies to combat the competition and gain
increased competitive advantage (Hassan et al., 2014). The topmost competitor of Ansell
Limited is the Cardinal health company which was founded in the year 1971. Their operations in
Africa have not been largely diversified to different countries. The second competitor of the
company is the priMED Company which operates as a private company having been established
in the year 1995. Its operations have not also gained roots in the East African market. The
protective industrial production company (PIP) is considered to be the biggest rival or competitor
of Ansell Limited since they operate or offer the same services in the protection industry

ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 12.
(Wheelen et al., 2017). The company has its operations in the East Africa Region however not
fully established with operations being done by partner companies through franchise. Venturing
into this market will provide Ansell Company with an opportunity to diversify their operations,
gain increased growth and a competitive advantage in the international or global gloves
protective industry. Understanding the various market dynamics will therefore be crucial in
successful business venture in the region.
5.0 Ansell Limited Environmental Factors
5.1 Host country Business climate
The East Africa region provides a potential favorable business climate for the growth of
international businesses. The region is characterized with most developing countries which are
looking into venturing into international business however they are limited in terms of their
resources (Zamudio et al., 2014). The region economy is open providing opportunities for
companies to open a business in the region with fewer restrictions on business operations; it is
liberal as well as transparent and therefore provides support to the growth of companies in the
region, investments, and trade.
According to a report released by World Bank business as well as the International
Finance Corporation IFC, the region has consistently been ranked as one of the best places to
conduct foreign investment. Regarding ease of doing business, the region has favors the growth
of foreign direct investments and any other types of business mergers and franchise since most of
the best performing businesses are international firms (Madsen & Walker, 2015). The major
inderance to the success of the business in the region has been corruption with the countries
having being listed amongst the most corrupt nations globally despite the efforts made by the