Business Management 23: Analysis of Ansell Limited Report

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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.
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Running Head: ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 1.
Analysis of Ansell Limited Business Management
Name
Institution
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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
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 3.
Conclusions................................................................................................................................................22
Appendices................................................................................................................................................24
References.................................................................................................................................................26
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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
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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
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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
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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
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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
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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
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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
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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
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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
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 13.
leaders according to the data released by the Transparency International Corporation Perception
Index. Therefore based on these environmental factors or business climate factors the nation can
be said to offer a favorable business climate for the existing as well as the emerging business and
therefore providing an opportunity for increased business growth.
5.2 Ansell Limited SWOT Analyses
A company SWOT Analysis is a very significant tool for strategic planning and business
management. It can, therefore, be used by the administration of Ansell Company to conduct the
situational business analysis of the company current business environment and develop effective
strategies to improve business performance. It, therefore, provides an understanding of the
company strengths, weaknesses, opportunities and possible threats, through which the
management of the company can examine, analyze and make strategic moves to improve the
performance of the business.
Strengths- the company enjoys continued support from different institutions which form part of
the shareholders and therefore institutional financial support. The company has been able to
engage in strategic business acquisition such the current acquisition of the Barrier Safe
Information which has enabled the company to enhance its growth opportunities. The company
has top performing and quality brand in the market which gives them a competitive advantage
(Dhliwayo, 2014). The company global presence acts as one of the greatest strengths of the
company allowing it to diversify their operations in many countries. Her ability to engage their
customers in dialogues is a great strength as it enables them to manufacture and deliver quality
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 14.
goods which will meet their demands. Technological and innovative capacity has enabled the
company to manufacture quality products.
Weaknesses- the company weaknesses can be used strategically to become the future strengths
of the company management. Underperformance has been one of the weaknesses of the company
despite having a global presence and great market position the company has not being able to
maximize their productivity. The management of the company which is influenced by the
institutions with the largest shares in the company as well as the general public affects the
company growth strategies and especially when it comes to making policy decisions.
Opportunities- with the increasing population growth, there is increasing demand for medical
safety and protection devices globally. This is an excellent opportunity that the company is
looking forward to venturing into and supply for the needs and requirements in the market. The
rapid growth of advanced technology in the modern corporate world provides an opportunity for
the company to become more innovative by the use of contemporary technology in producing
quality products and deliver quality services to their markets.
Threats- the significant threat the company is facing is from the increasing competition in the
industry with the emergence of new companies in the protection industry. Such companies are
offering substitute products and services in both industrial and healthcare protection industry,
and therefore the company needs to develop effective strategies to gain a competitive edge in the
market.
5.3 Government Constraints/incentives
Every business region is regulated by certain business laws and legislations which have
been established as regulatory frameworks for regulating business operations. These regulations
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 15.
are sometimes viewed as constraints to the business operations however the laws are aimed at
protecting the businesses, consumers as well as the environment. The significant limitations,
however, would be the taxes for business operations. The region has imposed not only tariffs but
also high taxes for international businesses. The charges are aimed to generate revenue for the
governments (Palandeng et al., 2018). The tax deductions, however, depend on the type of
business, location as well as the revenue generated by the companies. However, the governments
of the various countries within the East Africa region have provided significant support to assist
investors to establish businesses in the country. However, the support provided depends on the
location of the company, the industry as well as the nature of the company.
Most of the governments and especially for countries such as Kenya and Rwanda assists
investors with the aim of attracting and facilitating productiveness of their economy through
foreign direct investments into the countries. The grants are available to the emerging
entrepreneurs who want to start new business as well as to the existing business with the aim of
expanding their business operation as well as for those engaged in research activities in the
country. Such opportunities therefore provide an opportunity for new businesses which can
merger or enter into franchise businesses with the Ansell Limited Company as an entry strategy
into the region. The region has invested heavily on research and development activities in the
region which is a great platform to understand the market dynamics regarding the growth of
gloves protective products and industries in the region (Baumgartner & Rauter, 2017). The
governments also offer support to new businesses through minimizing the trade restrictions or
barriers in the region which is a great opportunity to provide free movement of goods and
services in the region.
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 16.
5.4 Law/ Regulation/Administration
The East African Region has enacted several business regulation laws and regulations.
The regulations have been provided to protect the consumers, the community, and the
environment as well as to promote fair trading and competition in the region. One of the laws
enacted by the government is the competition law or regulation which is aimed at ensuring that
business or trading is fair for the businesses and the consumers (Gengler & Mulvey, 2017). The
country has also enacted consumer laws which provide regulation to consumers by protecting
them from unfair contract terms, product safety laws, unsolicited consumer agreements as well
as consumer rights and guarantees. The law is governed by the various governments Consumer
Laws.
6.0 Ansell limited Business Strategies
6.1 Product/service positioning
The company has been able to position itself as the leader in most of the industries they
serve. The company experienced a significant transformation in the financial year ending 2014
through which it increased its revenue and since then has continued to strategically establish
itself in their various markets to achieve their overall growth strategy. Such success has been
attributed to the company acquisition strategies which have enhanced their positioning in
multiple markets (Busse & Mollenkopf, 2017). However success in different economic regions
requires different entry strategies. There is a need for the company to develop effective entry
strategies for successful business ventures into the East African region. However, they can still
use the previous brand success to strategize on the new entry modes into the region. The
company management through the board is confident of attaining greater efficiency and success
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 17.
(Datta et al., 2017). The increased innovative capability has enabled the company position itself
regarding competitiveness by innovating new products and services aimed at satisfying particular
consumer needs and demands. This innovative strategy can still be used by the company to
develop quality products which will help the company to gain competitive advantage in the
industry with the existing firms operating in the region.
6.2 Ansell Limited Pricing Strategy
Developing an effective pricing strategy is essential to any company that seeks to
improve its revenue and profitability and especially in a new market. Therefore it is necessary for
the company to create a good pricing strategy as a marketing tool for their products and services
in the East Africa region. The company pricing strategy is consequently determined by the
product or services differentiation as the company manufactures different products for both the
industrial and the healthcare industries. However, the company should ensure that their pricing
strategy is fair to the consumers in the region (Wu et al., 2017). The existing cost leadership
strategy can still be very effective as new entry strategy to rival the existing firms in the region.
Despite their economies of scale, and therefore the management of the company can choose to
implement cost leadership strategy which may play an essential role in increasing their customer
base, competitive advantage and also increased revenue and profitability.
6.3 Ansell limited Distribution/ logistics
The company logistics activities can be said to be good with an opportunity to improve in
future. The company has a good culture and work-life balance while its operational performance
can be supposed to be to be increasing as well as their customer service. The company
inventories are much more optimized, and their product availability is very efficient (Patil, &
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 18.
Bach, 2017). Therefore the company has been able to effectively coordinate their distribution
activities in a move to ensure that their customers get the best services. To achieve this company
has established itself in various continents and has been able to work with a team of highly
motivated and skilled labor force.
6.4 promotion and advertising Strategy
Like any other successful business, the company has engaged in various product
promotions and advertising strategy however there is a need to develop new strategies for entry
into the East Africa Region based on the market dynamics of the region. One of the promotion
activities that the company should continue in the new venture is the SEMA Show through the
Ansell Grip Challenge Promotion which involved some participants, and the winner would win
him or herself some great prizes (Hayati et al., 2017). The strategy will be effective in creating
awareness of the Ansell brands to the potential customers in the region and increasing their
competitiveness in the industry. The use of various social media marketing platforms will also be
critical such company websites as well as the multiple media platforms in helping understand the
market dynamics.
6.5 Ansell Limited Estimated sales/sales mix
The company recorded an increased sales growth in the year 2017 from the previous
2016 sale returns. The total group or company sales were estimated to be $ 1.6 billion for the
year ending 2017 and represented an increase of 1.7 % of the previous financial year. The
company can also be said to have experienced an organic sale growth of 3.6 percent in constant
currency. The sales growth has been attributed to the good performance of the sexual welfare,
the growth of the synthetic surgical markets as well as the development of new products (Mares,
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 19.
2017). The sales mix can be grouped according to the different activities of the company where
the industrial global business performance recorded sales returns of 41 percent of the total
revenue; the medical division filed sales returns of 25 percent, sexual wellness a yield of 14
percent while the single-use global business performance recorded sales returns of 20 percent.
6.6 Product and service strategies
The company product and service promotion strategies are driven by the company desire
to manufacture and deliver quality services to their clients. One of the key product and service
strategy that has helped the company achieve its growth and profitability is the innovative
product strategy. Such policy has enabled the company to innovate different products and
services aimed at providing solutions in their markets which is very critical in venturing into new
markets (Pyrek, 2018). Such approaches have been developed to enhance competitiveness in the
industry and can be equally employed to venture and dominate the East Africa region.
7.0 Ansell Financial planning
7.1 Ansell Cash flow Analysis
The company cash flow analysis is used to portray the general performance or activities
of the company. However, their information provided in the cash flow statements may not be
reliably compared to the actual financial statements such as income statement and balance sheets
which are more detailed. From the company cash flow activities, the company net operating cash
flows reduced from 232.3 million dollars to 216.2 million dollars in the year 2017. This showed
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 20.
that the company becomes stronger regarding using short-term assets finance for the short term
liabilities (Desai, 2017). The net operating activities increased from 23.7million dollars to 109.9
million dollars representing an increase in company investment activities which is an excellent
move for the company and to the shareholders. The company financing activities also
experienced a significant improvement through a decrease from 26.4 million dollars to 24.9
million dollars.
7.2 projected profit and loss statement
The company due to its continued growth and success in o most markets where its services in
addition to the increased investments activities, there is an expectation of the increase in
company profitability. The expansion will, however, determine the current currency fluctuation
rates. More information provided in Appendix A and Appendix B.
7.3 other financial statements
To develop our deep understanding of the company financial performance we also look at other
company operations financial statements. More information provided in Appendix C and
Appendix D.
8.0 Management considerations
8.1 Personnel/sales factors
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 21.
For effective management of the company, the management executive of the company
has to make proposals concerning the personnel of the company as well as to the factors
affecting or influencing sales. The personnel consideration that has to be made are regarding the
staffing issues, their performance, and their compensation. The management has, therefore, a
responsibility of ensuring that their personnel is motivated and aligned towards the strategic
goals of the company. The staff must be show commitment to the business goals and objectives
(Helble & Shepherd, 2017). It should develop a good compensation strategy to the team and
address the issues affecting the employees in a move to enhance their efficiency and
productivity. Their commitment is directly proportional to the profitability of the company and
therefore has an impact on the sales growth in the company.
8.2 Business Advisers
Due to the diverse nature of the business and the complexity of the industries and markets
the company operates as well as serves, the company has a team of business advisers globally.
These advisers are from different fields and industries and are experts in the various management
roles. The company, therefore, has a team of accountants and statutory auditors who are engaged
in advising the company and the management on the financial status and position of their
companies and advise them on the appropriate measures (Tanaka et al., 2018). The Ansell-
Munden accountants as well as business auditor’s work together to prepare financial statements
conduct financial auditing and advise the company on appropriate measures. Ryan Ansell
investment solutions work with other advisers in helping the company to make informed
investment decisions and choices as well as assisting the company in potential and existing
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 22.
investors in making sound investment choices. Kate Ansell offers business advisory services to
the company with the help of other consultancy business companies (Ramos-Torres, 2017).
These groups of advisers among other not mentioned work together with company board of
directors, the executive leadership and the technological leadership groups in the company to
ensure that effective business strategies are developed and implemented to achieve the set targets
and objectives.
8.3 Contingency Plans
A contingency plan is generated by an organization or company and represents a course
of action aimed at helping the company respond effectively to a significant future. In most case,
the contingent plans form part of a company or business continuous disaster recovery as well as
risk management strategies (Yamakawa & Cardon, 2017). The development of contingency plan
for the company is guided by the projected world demand for better protection, and therefore the
company is continually investing in research and development as well as in the cutting edge
product innovation and new technologies.
The company has therefore developed contingency plans aimed at the production of new
products or new product development which is projected to increase their competitiveness in
future and increase their profitability. The company also expects to grow concerning their market
share and to achieve this company has developed more business acquisition strategies (Paulraj et
al., 2017). The company has also developed plans of expanding their current footprints in the
emerging markets. The company has also developed contingency plans for attaining. Significant
projects have been designed to enhance the growth of nuclear activities of the company. The
policies aimed at building a strong brand in the emerging markets, developing more partnerships
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 23.
channels, growing their market share as well as becoming more innovative concerning growing
new products. The company has also developed contingency plans for attaining profitability in
the future as well as improved performance in their cash flow activities (Rothenberg et al., 2017).
To achieve this, the company aims at leveraging core processes for enhanced customer services,
necessary insourcing materials, and technology, adopting lean management practices as well as
rationalizing the brands.
Conclusions
From the above analysis, Ansell Company has continued to experience continued growth
and also continued to become a leader in the protection industry. However, the company is still
facing competition from other companies in the industry offering the same services. It is
recommended that the company should continue its efforts of increasing their innovative
capability to provide solutions to the different emerging markets. There is a need to develop
effective adverting and product promotion strategies since the company is still underperforming
concerning revenue growth despite their economies of scale and their competitive advantage in
the different markets where the company serves.
Appendices
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 24.
Appendix A: Ansell limited projected statement of profit and loss
Appendix B: the performance of Ansell Limited Market segments
Appendix C: Ansell income statement for financial years 2017 and 2016
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ANALYSIS OF ANSELL LIMITED BUSINESS MANAGEMENT 25.
Appendix D: Ansell Limited Summary of income statement
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