CSG Limited: Internal and External Business Analysis Report

This business report provides a thorough analysis of CSG Limited, a company operating in the business technology and print solutions sector within New Zealand and Australia. The report begins with an introduction to CSG Limited, its services, and its recent market share decline. The internal analysis includes a SWOT analysis, identifying the company's strengths (e.g., effective customer service, efficient logistics) and weaknesses (e.g., lack of market research, high competition). Opportunities, such as providing clients with comprehensive service solutions, and threats, including high competition and emerging technologies, are also examined. A value chain analysis highlights the company's focus on both effectiveness and responsiveness. The external analysis uses PESTLE analysis to assess political, economic, social, technological, environmental, and legal factors influencing CSG Limited. Additionally, Porter's Five Forces analysis evaluates the competitive landscape. The report concludes with recommendations based on the analyses conducted, aiming to help CSG Limited increase its market share and improve its business strategies.

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CSG LIMITED – BUSINESS REPORT
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Table of Contents
1.0 Introduction................................................................................................................................2
2.0 Internal Analysis........................................................................................................................2
2.1 SWOT Analysis.....................................................................................................................2
2.2 Value Chain Analysis.............................................................................................................5
3.0 External Analysis.......................................................................................................................6
3.1 PESTLE analysis....................................................................................................................6
3.2 Porter’s Five Forces Analysis..............................................................................................10
4.0 Conclusion and Recommendation...........................................................................................12
References......................................................................................................................................14

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1.0 Introduction
Founded in the year of 1988, CSG limited accompanied with its major subsidiaries, offer
numerous business technology and print solutions within New Zealand and Australia. The
company conducts its operations within finance solutions, business solutions, print solutions as
well as other related segments. The company also provides desktop and multifunction devices, as
well as managed print products. Whereas, the solutions related to digital display that are
provided by CSG limited include products related to video conferencing, retail display, signage,
digital screens, receptions screens, large screen monitors for businesses and so forth. The
headquarters of CSG limited is located at Brisbane, Australia and it currently employs more than
600 workers (Endole, 2018). This report will provide a thorough internal, as well as external
analysis of CSG limited in order to assess the potential opportunities for the company to increase
its market share, which was recently dropped by 81 percent. Finally, on the basis of these
analysis, a brief conclusion and recommendation will also be provided at the end of this report.
2.0 Internal Analysis
2.1 SWOT Analysis
 Strengths
Strengths are used to determine what your business does best. If a company knows the
strengths of its business then it can exploit them to beat its competition. For example, the
company can evaluate the performance of its staff and the capital it uses to expand its business;
imagine that there is a great growth in demand for the product, so the company could start
exporting. Now think that both team and capital of the company are stable, so if the company
compares the external situation (opportunity of expansion of the business) with the interior (good

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results in the business), then it could be stated that the company have strengths, to such an extent
that it would generate the expected results (Helms & Nixon 2010, pp. 215-251). Some of the
major strengths of CSG limited are listed below:
 Adequate advertising and promotion
 Effective customer service
 Clear profitability of the business
 Possibility of investment to expand
 Constant flow of cash
 Possibility of rewarding the employees (vouchers, incentives, bonuses, etc.)
 Excellent work communication
 Motivation and empathy with the staff
 Product control (inventories)
 Effective and responsive logistics (transport of products)
 Efficient work tools (technology, instrumentation, furniture, etc.)
 Excellent leadership
 Weaknesses
There are also business weaknesses that give a pessimistic strategy. These weaknesses could
be anything that a business has difficulties with and if the company is about to start a new
venture, falling into this would be the worst thing that can happen to it. Sometimes entrepreneurs
and even big businessmen, cling to a strategy that is to their liking, the problem is that such
inadequate strategy may not produce results, but quite the opposite: money is lost, time is badly
invested, unhappy customers, etc. Companies are required to be realistic with the strategies they
create and if one strategy hurt its performance, then it should abandon it, even if it seems like a

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good idea at some point (Gao & Peng 2011, pp. 796-808). Some of the weaknesses associated
with CSG limited are listed below:
 Lack of receipts and invoices to control inventory (theft and loss)
 Lack of adequate market research
 Inefficient or no employee training
 High competition in the segment
 Misunderstanding of many potential customers about the features of the company's services.
As a result, cooperation often ends before it begins.
 Opportunities
The opportunities for a company are all those factors external to the institution; that is, the
options offered by society and from which we can take advantage to grow as a company. In this
sense, there are different market niches that we can find, which must be used together with our
strengths to generate the desired profitability (Simoneaux & Stroud 2011, pp. 75-78). The
following are some of the potential opportunities for CSG limited that could help it to grow its
business successfully:
 The clients are looking for permanent partner who can solve their problems and so that this
partner does not disappear anywhere, be always available. CSG limited could provide such
clients various options in the services to meet their needs.
 Foreign software is expensive - the possibility of introducing domestic software in large
companies.
 Increase in the number of mobile employees - the ability to develop mobile software as a
means of customer excellence.

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 Threats
The threats for companies, like the opportunities, are an external factor but, in this case,
are harmful to the business. The companies need to analyse the market well to see what
factors represent a danger (Jasiulewicz-Kaczmarek 2016, pp. 674-679). The following are
some of the threats that CSG limited is facing within its market.
 High competition from both domestic and global companies
 New trends that would render the product or service obsolete
 Decrease in demand for the product or service due to emergence of new technologies
 Climatic or seasonal issues that cause disinterest in the product or service
 Adjustments and implementation of government regulations that affect the way the
company works or its costs
2.2 Value Chain Analysis
A value chain is the set of activities carried out by a company in a particular sector in
order to offer products or services of value on the market. As a company becomes more and
more global, its structure also adapts to manage complex supply chains and new management
models. These commercial changes imply important tax consequences, with the positioning and
interaction between strategic management, research and development, supply chain and
marketing functions, resources and risks: all elements that influence the group's profile (Gereffi
& Fernandez-Stark, 2011). A value chain analysis can help you identify opportunities to
improve efficiency, ensuring compliance with tax and transparency requirements, anticipating
future developments. Six value factors can be identified: supply and procurement chain,
marketing and sales, research and development, design and branding, operational and production
excellence (Suarez, Cusumano, & Kahl 2013, pp. 420-435).

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If we analyse the value chain of CSG Limited then we would find that the company
focuses on both effectiveness, as well as responsiveness while providing its services. This is
because most of the value propositions that are offered by the company are in the form of
intangible services (i.e., print solutions) for which it utilizes its employees to meet the needs of
the customers. The customers simply visit the website of the company and provide the
information of the services to the customer service representative which they seek to purchase
from the company. Then, the customer service representative forwards the information to the IT
specialists within the company who prints solution services to the customers. Whereas, other
tangible products that are offered by the company are either made available on website for the
customers or the customers can also visit the branches of the company to purchase these
products. This, in turn helps the company to reduce its costs as no physical stores are needed by
the company to provide its products and services. Whereas, customers are also able to get a quick
response from the company in the form of their demanded services (Tchale & Keyser, 2010).
3.0 External Analysis
3.1 PESTLE analysis
PESTLE analysis is considered as strategic analysis in relation to the environment and
was created with a special orientation towards business. However, it can be used both in
Intelligence for Security and in Economic / Competitive Intelligence, including Marketing. In
addition, it connects perfectly with the SWOT analysis of the company. The objectives for which
the company would like to perform a PESTEL can be very varied, depending on the needs of
Intelligence. For instance, it could be conducted by the company to analyse the market, gather
information about strategic profile of the country, internationalization and details related to
development of any potential organized crime in a geographical area (drugs, money laundering,

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etc.). It can also be conducted to analyse the political changes and government policies, etc. In
short, companies use the PESTLE analysis whenever they need to understand in depth the
environment of what they are studying, as it gives them a greater visibility of external variables
that may interfere with their object of study (Zalengera et al. 2014, pp. 335-347). The main
advantages of the PEST analysis are the following:
 Improve the managerial work: When the characteristics of the environment are known, a
more adequate and effective strategy can be planned. In addition, to minimize external risks.
 It is a simple and easy to use tool
 Evaluate external risks: The PEST analysis analyzes the political, economic, social and
technological factors, which is key when taking into account the possible risks that may arise
in the market when introducing the services or products of a company.
 Political Factor
These factors are related to governmental policies that affect the performance of entities.
The most prominent are fiscal policy, restrictions on trade and industry and tariffs. We must also
include situations such as wars, governments, among others (Joshi, Singh Ubha, & Sidhu 2012,
pp. 582-598). The below table highlights some of the political factors that could influence the
operation of CSG limited.

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 Economic Factors
Among the economic factors, the companies are required to analyse the rates of exchange,
inflation rate, interest rates and the level of import and export within the country (Kolios & Read
2013, pp. 5023-5045). The below table highlights the economic factors that could influence the
operations of CSG limited.
 Social Factors
In this field are included the factors that are related to the basic characteristics,
preferences, tastes and consumption habits of society: age, total disposable income, rate of
growth of society and education (Ho, 2014, pp. 6478-6492). Below table highlights some of the
social factors from which the operations of CSG limited get affected.

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 Technological Factors
The trends that occur in the area of computer systems and new technologies. In this aspect,
the new digital era is an area to be considered within companies (Holzweber, Mattsson, Chadee
& Raman, 2012, pp. 531-550). The technological factors that affect the operations of CSG
limited are highlighted in the below table.
 Environmental Factors
Factors as relevant as climate change, temperature variations and environmental awareness
are taken into account for the development of PEST analysis (Cadle, Paul & Turner, 2014). The
environmental factors that may impact the operation of CSG limited are shown in the table
below:
 Legal Factors

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These are some factors that are related to the regulations and laws of the country which are
obligatory for every company to consider and follow in order to avoid any risk of penalties
(Team, 2013). The legal factors that influence the operations of CSG limited are provided in the
table below.
3.2 Porter’s Five Forces Analysis
The analysis of Porter's five forces is also a well-known technique of analysing the
market environment and justifying a business development strategy proposed by Michael Porter.
It is easy to see that this method rather, well complements the capabilities of SWOT-analysis in
relation to studying the external environment and identifying guidelines for the development of
the internal environment. Using this approach, five forces stand out in determining the intensity
of existing competition and consequently, the possibility of conducting the business in a
particular market sector and its attractiveness for entrepreneurs and investors (Tavitiyaman, Qu,
& Zhang, 2011, pp. 648-657).
The attractiveness of the market sector here is determined by the possible profitability of the
business. The smaller the combination of Porter's strength reduces the profitability of a business,
the more attractive it is. Such a model can be used at the microeconomic level to determine the

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company's place in a particular industry. At the same time, companies should organize their
business processes in such a way that apply their core competencies and business models in
order to make profits more than the industry average. Under the conditions of large diversified
companies, each branch of business should have its own industry-specific analysis of Porter’s
five forces (Magretta, 2011). The table that has been provided below highlights the Porter’s five
forces analysis of CSG limited.

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4.0 Conclusion and Recommendation
The above provided analysis has clearly indicated that CSG limited operates in a highly
competitive and dynamic industry, which constantly face changes that in turn affects the
company’s operations significantly. So in order to gain a competitive edge in the market, CSG
limited will have to provide innovations within its products, as well as better services in
comparison to its competitors. They can also increase their product lines by adding more services
for the customers. For example, the company can provide outsourcing services to the businesses
by creating and controlling the databases, security systems or any other system like CRM of the
companies (Dorairaj, Noble, & Malik 2012, pp. 64-73).
Moreover, the company can even provide advertisement related services to other
businesses by designing their marketing content or providing services like search engine
optimization, social media marketing, etc. Even though, there are many competitors who already
provide such services to the businesses, but it will help CSG limited to reduce its reliance on the
printing services that it provides to its customers. In addition to this, the company might also
have to reduce the prices of its services in order to capture more customers, or else it will not be
able to increase its market share successfully. Furthermore, to mitigate the threat of competition,
the company can also target its services in other countries as well, like the United States or UK.
This is because in these countries, the demand of IT related solutions and services is very high,
which in turn could help the company to increase both its sales and profits successfully (Eder,
Gottweis, & Zatloukal 2012, pp. 254-262).
Furthermore, CSG limited should also try to increase its efforts to create more awareness
among the customers regarding its services. This is because the company has been observed to
take a very passive approach when it comes to market and promote its brand. And perhaps this

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might also be the reason behind the decline within its market share within the industry. So the
company should use both above the line, as well as below the line advertisement strategy.
However, it focus more on utilizing the platforms of social media, Television, newspaper and
print advertisements to promote its services. The company can also use word of mouth marketing
to promote its services by asking its loyal clients to advocate or give positive review regarding its
brand. This in turn could help the company significantly to create a positive image within the
market in the eyes of the customers and could also increase its sales revenue substantially.
Finally, it is also recommended to the company to continuously enhance its existing services and
product lines. This is because the threat of substitute is high within the industry and if CSG
limited fail to provide innovation within its products then it will not be able to revive its market
share again. The company will have to be more customer centric, if it wants to survive within the
market, or else it will continue to loose sales and will not be able to increase its profitability
successfully (Solcansky, & Simberova 2010, pp. 755-759).

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