MGMT20144 - Business Case Analysis: Adani Australia's Performance

This essay provides a comprehensive business case analysis of Adani Australia, examining its organizational structure, which is hierarchical and centralized, and its governance structure. The essay delves into the environmental factors influencing the company's performance, categorized using the PEST framework, including political, economic, social, and technological aspects. It identifies and analyzes various risks faced by Adani Australia, such as governmental and social group opposition due to environmental concerns, brand image damage, and revenue impacts. Furthermore, the essay explores the business practices adopted by Adani Australia, including water management plans and employee welfare initiatives, and discusses the company's functional departments. The analysis concludes by summarizing the key findings, emphasizing the complex business environment and the need for proactive measures to address challenges.

Running head: BUSINESS ESSAY
BUSINESS ESSAY
Name of the Student
Name of the University
Author Note

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BUSINESS ESSAY
Table of Contents
Introduction................................................................................................................................2
Case company synopsis..............................................................................................................2
Discussion..................................................................................................................................2
Business structure and governance structure..........................................................................2
Environmental Factors affecting the performance of Adani Australia..................................3
Risks faced by Adani Australia and their impact...................................................................4
Business practices adopted by Adani Australia and its impact..............................................5
Conclusion..................................................................................................................................5
References..................................................................................................................................7

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Assessment Item 1 – Business Case Analysis
Introduction
The given essay can be understood to be based on a business case analysis. A business
case analysis can be rightfully understood to be a project whereby the overall information
relating to a company is analysed effectively and specifications to the different ideas relating
to the company are made. The essay is based on the Adani Australia which is an energy and
Infrastructure Company which is largely dedicated to providing energy solutions for the
advanced concepts round the globe. The essay will outline the overall case synopsis and this
will be followed by understanding the overall structure of the firm, analysis of risks, analysis
of business practices and the other environmental factors which are important to be
considered.
Case company synopsis
The Adani Australia can be understood to be a multi-dimensional energy as well as
infrastructure company which is thoroughly dedicated to providing solutions for the
advancing world. The organization provides energy solutions in Australia as well as the Asia
Pacific region with the help of the thermal and the renewable energy
(Adaniaustralia.com ,2019). The organization helps in creating jobs and also raising major
infrastructure upgrades related support to the hospitals, roads as well as the different schools
which are present. The Adani Australia also owns as well as operates the Abbot Point
Terminal which generally exports coal responsibly for more than 30 years.
Discussion
Business structure and governance structure
The organizational structure of the firm can be understood to be hierarchical in nature.
The firm can be understood to be a part of the Adani group and comes under the Australian

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branch of the Adani Enterprise Limited. The operations of the firm can be understood to be
divided into various divisions with each division reporting into a specific function head. This
function head in return reports to the organizational head (Linder & Williander, 2017). In this
manner, the group follows a centralised business structure which helps it to ensure that, the
organizational members are able to carry out the different functions of the firm effectively
and that the overall duty of the organization can be understood to be divided according to the
various specialisations as present (Dervitsiotis, 2010). According to the Adani culture, the
division in the culture may lead to better operational efficiency. However, when an urgent
scenario arises, then in such a case, the different departments of the business tend to come
together and work for the overall improved functioning of the organization. The governance
structure of any organization tends to determine the manner in which the different
management roles in an organization is carried out. In addition to this, the governance
framework of a firm also determines a guide for the enforcement of the processes (Edgeman
& Eskildsen, 2014). As understood earlier, as the structure is hierarchical in nature, the
decision making and overall governance structure can be understood to be rather centralised
in nature. In relation to this, it also becomes very crucial to understand that, each department
at Adani has a role to play for the better future of the firm and hence, when each department
fulfils its goals effectively, the overall aims of the firm can be achieved accordingly
(Business-standard.com ,2019).
Environmental Factors affecting the performance of Adani Australia
As the organization tends to operate in a complex business environment, it can be
considered with respect to this that, there are various environment factors which tend to have
an impact on the overall operations of the business. In such a case, these factors can be
understood to be the PEST factors (Antony & Bhattacharyya, 2010). The PEST can be
understood to be a strategic management tool which tends to focus on the overall

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effectiveness of the organization and seeks to secure that the firm will be aware of the
different external forces lying in the business environment. The PEST of the firm has been
done as follows:
Political: The political forces affecting the operations of the business can be understood to be
the factors relating to the Political stability and importance of the Mining sector in Australia`s
economy (Deepa, Palaniswamy & Kuppusamy, 2014). The legal framework for the contract
enforcement can also be understood to be a relevant factor affecting the different operations
of the firm. The taxation rates and incentives which are governed in the country can also be
understood to be the relevant factor which has the capability to govern the different
operations of the firm.
Economic: The economic forces which affect the Adani Australia`s operations can be
understood to be the overall condition of the economic environment of Australia, the
efficiency of the financial markets, the skill level which is required in the industry, the
economic growth rate and other related factors (Evans et al., 2017).
Social: The different social factors which have an impact on the firms operations can be
understood to be the factors related to the target market of the Adani Australia. These also
comprise of the factors relating to the overall culture of the firm, the leisure interests of the
firm, the attitudes of the target audience and the overall public awareness about the mining
industry in the country (Turner, Swart & Maylor, 2013).
Technological: The technological factors generally tend to deal with the disrupting
technological factors as present in the industry. These forces can be taken to be the impact of
the cost structures in the market, the recent technological developments made by the industry
leads and the rate of technological diffusion (Vij & Bedi, 2012).
Hence, all the decisions as taken by the organization remain governed to these factors.

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Risks faced by Adani Australia and their impact
The different risks which are being faced by the Adani Australia and the overall
impact of these on the different performance aspects of the firm can be taken to be as follows:
Governmental and Social group oppression: There have been issues relating to the
environmental concerns of the Adani Group which refer to the aspects like the illegal release
of the coal laden water in the Great Barrier Reef (Business-standard.com ,2019). Hence, the
Government has given the company a refusal on the permission to continue the operations.
This has been backed by the oppression of this movement by the government of the firm. In
relation to this, it needs to be understood that, as the waste disposal will lead to a high degree
of environmental concern, the particular venture is risky and hence, the risk of the continuity
of the operations can be understood to be the first type of risk being faced by the company.
Brand image: Secondly, due to this scandal, the brand image of the firm has fallen down
considerably (Bellah, Zelbst & Green Jr, 2013). Hence, this imposes a risk on the overall
brand loyalty and the public image of the firm. As the public image of the firm has been
impacted considerably, it could lead to a downfall in the sales of the firm.
Impact on Revenues: The entire incident as discussed earlier has brought about a considerable
change in the funding policies of the organization and it is with respect to this that it needs to
be understood by the firm that, as the brand image of the firm has gone down, the overall
revenue of the firm will be impacted severely.
Due to these impacts on the overall operations of the firm, the Adani Australia has
been receiving considerable backslash on various mediums of social media and related
platforms and hence, this is having an overall impact on the different operations of the firm
(Morgeson, DeRue & Karam, 2010). In addition to this, it becomes considerably important to

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understand that the share prices of the Adani Group as a whole and hence, it becomes crucial
to understand that, considerable steps need to be adopted by the firm to improve its image.
Business practices adopted by Adani Australia and its impact
Environment concerns: The organization had got into a controversy regarding the Great
Barrier Reef operation, however, in relation to this, the firm has aimed to get into a
negotiation with the government (Schaltegger, Lüdeke-Freund & Hansen, 2012). To avoid
the risks associated with the scenario, Adani has got into a Water management plan with the
government. The business practice will assist in letting the firm begin its operations in the
earlier purchased mines.
Employee welfare: The firm also undertakes various best practices in the field of the
employee welfare as well (Albrecht et al., 2015). This means that, the different employees are
allowed with considerable scope for the overall development as well as the scope for the firm
to perform well in the long run.
Functional Departments of the Adani Group
The firm has 7 different functional departments for its overall operations and these
can be understood to be the Marketing and sales department, Operational department, Human
resource department, Corporate social responsibility department, Finance department,
Planning and strategy department and lastly a Product department to deal with the
manufacturing and process related tasks which are to be adopted by the organization
(Sheehan, Ellinger & Ellinger, 2014).
Conclusion
Hence, in the given essay, the overall operations and the business structure of the
Adani group have been discussed. The business environment can be understood to be
considerably complex in nature and it is with respect to this that all the firms as present in

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this complex environment are required to ensure that, they take adequate measures to cope up
with the same. Therefore, the given essay has laid down the different aspects of the business.
The first section of the essay laid down the overall company background which was then
followed by the discussion on the organization`s business structure, external environmental
factors, the business practices adopted by the firm and the risks being faced by the business.
It was learn that the scandal involving the waste water management of the company has
caused it backslash from various social groups and that the company is adopting measures to
improve its scenario.

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References
Adaniaustralia.com (2019). Adani Australia [online]. Available at:
https://www.adaniaustralia.com/ (Retrieved on: 03 August. 2019).
Albrecht, S. L., Bakker, A. B., Gruman, J. A., Macey, W. H., & Saks, A. M. (2015).
Employee engagement, human resource management practices and competitive
advantage: An integrated approach. Journal of Organizational Effectiveness: People
and Performance, 2(1), 7-35. DOI: http://hdl.handle.net/10536/DRO/DU:30071114
Antony, J.P. & Bhattacharyya, S., (2010). Measuring organizational performance and
organizational excellence of SMEs–Part 1: a conceptual framework. Measuring
Business Excellence, 14(2), pp.3-11. DOI:
https://doi.org/10.1108/13683041011047812
Bellah, J., Zelbst, P. J., & Green Jr, K. W. (2013). Unique TQM practices and logistics
performance. International Journal of Productivity and Quality Management, 12(1),
61-76.
Business-standard.com (2019). Adani Australia[online]. Available at: https://www.business-
standard.com/article/companies/why-adani-is-so-persistent-with-a-mine-in-australia-
that-may-lose-money-119060300402_1.html (Retrieved on: 03 August. 2019).
Deepa, E., Palaniswamy, R., & Kuppusamy, S. (2014). Effect of performance appraisal
system in organizational commitment, job satisfaction and productivity. Journal of
Contemporary Management Research, 8(1), 72.
Dervitsiotis, K.N., (2010). A framework for the assessment of an organisation's innovation
excellence. Total Quality Management, 21(9), pp.903-918. DOI:
https://doi.org/10.1080/14783363.2010.487702

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Edgeman, R. & Eskildsen, J., (2014). Modeling and assessing sustainable enterprise
excellence. Business Strategy and the Environment, 23(3), pp.173-187. DOI:
https://doi.org/10.1002/bse.1779
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow,
C. Y. (2017). Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and the
Environment, 26(5), 597-608. DOI: https://doi.org/10.1002/bse.1939
Linder, M., & Williander, M. (2017). Circular business model innovation: inherent
uncertainties. Business strategy and the environment, 26(2), 182-196. DOI:
http://hdl.handle.net/10.1002/bse.1906
Morgeson, F.P., DeRue, D.S. & Karam, E.P., (2010). Leadership in teams: A functional
approach to understanding leadership structures and processes. Journal of General
Management, 36(1), pp.5-39. DOI: 10.1177/0149206309347376
Schaltegger, S., Lüdeke-Freund, F., & Hansen, E. G. (2012). Business cases for
sustainability: the role of business model innovation for corporate
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Sheehan, M., Ellinger, A. E., & Ellinger, A. D. (2014). Leveraging human resource
development expertise to improve supply chain managers' skills and
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Turner, N., Swart, J., & Maylor, H. (2013). Mechanisms for managing ambidexterity: A
review and research agenda. International Journal of Management Reviews, 15(3),
317-332.

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Vij, S., & Bedi, H. S. (2012). Relationship between entrepreneurial orientation and business
performance: A review of literature. The IUP Journal of Business Strategy, 9(3), 17-
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