Analysis of Corporate Strategic Management: Adani Group's Case Study

This report provides a comprehensive analysis of the Adani Group's corporate strategic management, specifically examining the company's controversial coal mine project in Australia. The analysis delves into the company's expansion plans, political maneuvering, and the environmental impacts associated with the project. It explores the strategic decisions made by the Adani Group, including their efforts to secure approvals and influence public opinion, while also highlighting the ethical considerations and potential violations of corporate strategic management principles. The report also assesses the impact of the project on the environment, local communities, and the company's overall reputation. Furthermore, the report discusses the importance of incorporating sustainability and environmental protection in corporate strategies and the consequences of neglecting these factors. The analysis concludes by evaluating the flaws in the Adani Group's strategic approach, emphasizing the need for companies to consider the voices of stakeholders and the broader implications of their actions.

Running head: CORPORTAE STRATIC MANAGEMENT
Corporate Strategic Management
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Author Note

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Table of Contents
Introduction......................................................................................................................................3
Company Overview.........................................................................................................................3
Analysis...........................................................................................................................................3
Conclusion.......................................................................................................................................7
References........................................................................................................................................8

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Introduction
The Adani Group of India intended to expand their market in Australia by addressing the
vast reserve of Coal which is found in the north eastern region of Australia. The company, which
is an industrial giant in Australia had been desiring and intending to capture the immense reserve
of coal for several years. The company finally received and approval from the authorities in
Australia for the commencement of the extraction of coal. It did not just reward and approve the
politicking but also allows Adani group to actualize their plan of coal supply and extraction on
the land. The company, thereafter, received a green signal for extending the supply chain in three
other countries.
Company Overview
The Adani group, which is a conglomerate used its political power and wealth to
actualize the interest of the business plans in Australia to establish the coal power plant. The
headquarters of the company is situated in Gujarat, Ahmedabad. Adani Group was founded by
Gautam Adani in 1988. The business specializes in trading of commodities such as aerospace,
real estate, agri business, energy, logistics, resources, financial resources, defense and so on. The
company operates from across 70 locations and annual revenue generation of over $13 billion.
The company is recognized to be the biggest developer of port in India. It also co owns Fortune,
which is an edible oil brand, of which the other owner is Wilmar International.
Analysis
The company intended to transport coal to India where a power plant is being built for
producing electricity which will be sold to Bangladesh. This approval and victory in Australia

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allows the Adani group to weave the economy between three countries. Even though scientists
have warned about the burning of coal is one of the primary reasons behind climate change, the
plan proceeded. There is great danger associated with the burning of coal, yet people keep
burning it, because of fewer alternatives and declining in quantity in several countries such as
Europe and United States. The main source of energy, in Asia is from coal and thus the demand
for the same is increasing. It is also because there is plentiful of coal in availability in Asia.
The founder, Gautam Adani had spoken about the reliability and affordability of coal
which makes coal indispensable and increases the demands in the developing countries.
However, there soon were issues arising due to the environmental impacts the coal power plants
were about to bring in the land. The burning of coal, has already been the reason behind the
alarming climate change happening around the globe, which is hard to disregard. The
Queenslanders were made to believe about the great possibilities which were about to be brought
in the land with the project. The founder of the Adani group even leaned a lot about the politics
of Queensland before getting into action. They put immense effort to explain to the people about
the fortunes which could be brought by the plant. These go against the corporate strategic
management, as have been done by the Adani group for the actualization of the plan
(Baumgartner 2017). There were donations which were made and contributions were made for
the campaigning of the politicians for the actualization of the business plan. The Adani group
even even invested heavily to lobby on their behalf.
Coal mining has been the reason being Australia’s growth for many years. The markets
of several countries which are developing have been feeding on the energy exports made from
Australia. Thus, coal mining in Australia has become one of the biggest exports in the country
(Nytimes.com. 2020). However, despite being the biggest industry and export trade of the

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country, it is also one of the major reasons behind the climate change, which is extremely
alarming. The coal mining can continued to grow in the country because of the backings which
the companies have received from the several political parties benefitting from it.
After the vote results came, the results were unpredictable as people had voted to keep
the incumbent conservative coalition. Soon there were new momentum of development in the
Carmichael mine. There was a settlement of a case in which the Adani controlled port, Abbot
Point were accused of dumping suspended solid in great amount which included coal and
accumulated in the Great barrier Reef (Nytimes.com. 2020). The company soon denied of all the
charges even though they came an agreement of keeping close monitoring in the area. Thus, the
state had issued a regulatory clearance which was held up due to the threat which was being
posed on the fate of several birds and their habitat in the area. The second clearance which the
Adani government received was the clearance of building the mine despite warnings of
permanent drying of a natural spring in the area. The approval was now there for the coal mine to
be built and Adani group declared to create opportunities for the Australians. The power which
were to be generated in Australia were to be used in India, in Gujarat. There have also been
accusations in India, for the company conducting business and affecting several lives. The
poorest people are the most vulnerable as they inhale the most polluted air and on the lands of
the poorest of farmers.
There have been several environmental campaigners who fear that the ecosystem will be
affected drastically. The natural spring, which is considered to be holy, by the indigenous people
might as well go permanently dry in the region. More pressure will be put on the Reef, which is
the world’s greatest coral reef system. There have been reports, that the project might stop due to
several issues which arouse after the commencement of the plan and how it has been affecting

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the land and its people. There are several issues which are associated with the case when, as the
corporate strategic management of the management were poor (Rothaermel 2016). The company
violated many ideas, which they should have followed, in order to achieve sustainability and
ensure environmental protection.
In a corporate development, it is very important to eradicate the chances of issues arising
while there will be implementation of the corporate level management strategies. In this case, the
company did not listen to the voice of the people, who were to be most affected by the plan. In
order to be ahead in the competitive market, ensuring that the voices are heard, is very important
to make growth (Morden 2016). A company can excel while implementing corporate strategies is
by assessing the approach and the issues which might be associated with the planning. The
potential market and policies which might be affected as a result should have been evaluated,
which the Adani group did not do. Whereas, they tried to assert influence in the matter in order
to start the project of coal mine, despite several issues which arose.
The company neglected the environmental issues which were related with the plan and
proceeded in spite of them. The results of the vote, in this matter were expected to be different
However, after the results came, there were cases which were settled, which gave green signal to
the company to proceed with the project. The company pursued their plans, in the meantime, to
convince the people about how they would be benefitted. The environmental impacts which are
anticipated with the case are extreme as the ecosystem of the place will be impacted negatively
due to the rising air pollution due to burning of coal. The eco system at the reef, near the Abbot
Port will also be impacted further with the plan. The corporate strategic management were very
flawed which impacted the company and its policies.

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Conclusion
It can thus be concluded by saying that the company did not pay attention to the growing
issue of the environmental degradation. The coal plants were going to affect the land and its
ecosystem and despite such reasons, the company pursued their plans and lobbied to get
clearance on the land by investing heavily and influencing the matter which is an issue of
corporate strategic management. The company neglected the negative impacts which were to
even intensify the declining ecosystem of the area. They continued to assert power and influence
the political scenario to continue the project, which, to their own benefit.

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References
Nytimes.com. 2020. "How One Billionaire Could Keep Three Countries Hooked On Coal For
Decades". Nytimes.Com. https://www.nytimes.com/2019/08/15/climate/coal-adani-india-
australia.html.
Rothaermel, Frank T. Strategic management: concepts. Vol. 2. McGraw-Hill Education, 2016.
Baumgartner, Rupert J., and Romana Rauter. "Strategic perspectives of corporate sustainability
management to develop a sustainable organization." Journal of Cleaner Production 140 (2017):
81-92.
Morden, Tony. Principles of strategic management. Routledge, 2016.
Bibliography
Bbc.com. 2020. "Australia Approves Controversial Adani Coal Mine". BBC News.
https://www.bbc.com/news/world-australia-48618774.