Performance Definition and Analysis Report: Orica Limited, MGMT101

This report provides a comprehensive analysis of Orica Limited's performance, focusing on how the company defines and measures success. The report delves into Orica's objectives, strategies, and organizational culture, examining how these factors influence the company's management accou...Read More

Running head: ACCOUNTING FOR MANAGEMENT DECISIONS
Accounting for Management Decisions
Name of the Student
Name of the University
Author Note

1ACCOUNTING FOR MANAGEMENT DECISIONS
Draft of the Final Report
The completion of a function is measured against preset standards of cost, accuracy,
efficiency, and objectives. Performance of a company means to achieve the estimated results
continuously in a way that is more effective and efficient. However, the different organisation
has a different way of analysing its performance. Some values the profits, while some give
importance to their reputation (Mohammed and Knapkova 2016). The companies generally
prefer to do teamwork for better performance. The aim of preparing this report is to develop a
good understanding and communicating skills on how an organisation can define its
performance. The organisation chosen here for making this report is ‘Orica Limited’, which
is the largest provider of commercial explosives and blasting systems at a global level. Orica
is more concerned towards the safety level and initiates to take responsibility to improve its
level of performance by managing risks and creating sustainability. The report will discuss
the organisation’s objectives, strategies and culture that influence the accounting system of
the management. Further, the paper will do the performance analysis of Orica based on its
objectives and strategy that is being implemented for better performance. The company
ensures its performance within two different aspects, that is safety and sustainability based on
which the management designs its operations of management accounting systems.
Organisation’s Overview and Analysis
Orica Limited is established in the year 1874 that currently employs more than 11,500
people serving across the world. It is the primary provider of commercial explosives and
inventive blasting systems and gives ground support services in mining and tunnelling. The
long years of its service guarantee its unmatched technology as well as the expertise (Stewart
2014). The company is listed in the Australian Securities Exchange as ORI. Orica has

2ACCOUNTING FOR MANAGEMENT DECISIONS
grabbed many opportunities for organic growth, expansion of categories, mergers and
acquisitions.
The focus and disciplined approach of Orica Limited has a sound result in the year
2018, where dividends per share increased by 4%. The net profit after deducting the taxes is
shown as $386 million, where stabilized earnings before interest and tax are shown as $635
billion. While assessing the performance of the year 2018, Orica has progressed in terms with
their long-term goals (Orica.com 2020). However, the company’s financial performance has
not met its aspirants as it has made a loss of $48 million in net profit after tax as compared to
its previous year.
Objectives
Orica has its objective to make its customers successful each day all over the world.
They tend to perform their functions safely, responsibly as well as sustainably. This initiative
ensures the growth of the organisation and creation of value to the shareholders.
Orica Values
Their idea of operating their functions and objectives underlined with its five core
values. These are Safety, Respect, Together, Integrity and Excellence. Safety has been its top
priority always where they take accountability of safety of every person and self-wellbeing
and others. The company respects and values everyone by treating fairly finds alternatives to
minimize any negative impact on the environment, involving committee and building a
strong relationship.
Corporate Strategy and Structure
Managing directors and CEO of the company is accountable to the Boards for leading
and promoting the cost-effective operation and development of the group. The operation must
be consistent with the basic objective that is of increasing the long-term value. The different

3ACCOUNTING FOR MANAGEMENT DECISIONS
Board committees like safety and health, risk, human resource ad compensation, innovation
and technology and nominations committee are responsible for operating under a Charter that
is approved by the board that sets the authority and responsibility of the committee. The
Chairman of the company has to be an independent non-executive director and have a
responsibility to control over the official matters of the business, company and the board.
Performance
The business review on its performance is somehow is based on its strategy so that to achieve
its goal. The company tends to create a sustainable environment in terms of its operations and
innovation. However, safety has always been its topmost priority. Therefore, based on the
company's focus, strategies and objectives, the performance analysis of Orica is done with
three aspects that are its safety concern, global innovation and its approach towards
sustainability.
Safety
The safety concern of Orica is interlinked with its strategy and objectives as the
business tends to perform safely. The company is concerned with the elimination of serious
injuries. Workplace safety and health of their people, community and visitors is their
paramount as it goes with one of their core values and code of conduct.
Innovation
Orica believes in work effectively and efficiently for its people, community,
customers, and environment by continuing its operation while leading through innovation.
Orica sustained its competitive strategy by launching the first wireless initiation system in the
world. The wireless initiation and the automation of drill and blast seem like a global
innovation for the resource industry.

4ACCOUNTING FOR MANAGEMENT DECISIONS
Sustainability
Orica’s sustainability is in terms to impact the business as well as the priorities to
external stakeholders. The supply chain and global manufacturing of Orica have concerned
about adding additional securities for the production. The product security initiative of Orica
has a specific interest in risks for environmental and human rights. Orica takes initiative to
reduce the environmental impact of the company's operation and to be an active corporate
citizen of the nation.
Conclusion
The performance analysis of Orica reflects that the company intends to work with
continuous innovation in its technologies to sustain in the competitive market at a global
level. The company is highly concerned about the safety of its people and for this; it has
taken better measures to make a safer workplace. Orica's operations are concerned with
delivering value to their customers by reducing risk and impact on the environment. Business
is concerned with long-term sustainability through its work performance that is conduct
ethically under government standards compliance. Thus, innovation as technology, safety for
people, community and environment and sustainability in different themes are the long-term
business aspects for its performance.

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References
Hogan, S.J. and Coote, L.V., 2014. Organizational culture, innovation, and performance: A
test of Schein's model. Journal of Business Research, 67(8), pp.1609-1621.
Mohammed, H.K. and Knapkova, A., 2016. The impact of total risk management on
company’s performance. Procedia-Social and Behavioral Sciences, 220(1), pp.271-277.
Orica.com 2020. online Orica.com. Available at:
https://www.orica.com/ArticleDocuments/1762/AR18_Orica_Annual_Report_WEB.pdf.aspx
Accessed 8 Mar. 2020.
Orica.com 2020. online Orica.com. Available at:
https://www.orica.com/ArticleDocuments/311/ORC0020%20Sustainability%20Report
%202018.pdf.aspx Accessed 8 Mar. 2020.
Orica.com 2020. Orica - About Us. online Orica.com. Available at:
https://www.orica.com/About-Us Accessed 8 Mar. 2020.
Stewart, R.F., Orica Explosives Technology Pty Ltd, 2014. Security enhanced blasting
apparatus, and method of blasting. U.S. Patent 8,839,720.