MGMT20144 - Simcoa and Regionalisation: Business Context Analysis

This essay provides a comprehensive business analysis of Simcoa, an Australian-based silicon producer, focusing on its organizational structure and the internal and external environmental forces impacting its operations. It details Simcoa's departments, workforce management, and commitment to waste reduction. The analysis covers political, economic, social, technological, and environmental factors influencing Simcoa's business, along with the risks it faces, particularly concerning safety and environmental impact. The essay also explores business practice decisions that can enhance Simcoa's organizational performance, such as high-performing work practices, benchmarking, training, and employee engagement. Furthermore, the important functions within the business organization like operational, financial, human resource and marketing are examined. The essay concludes that managing change is a complex task requiring effective analysis of the company's situation and highlights the importance of various functions in driving the company forward.

Running Head: Simcoa and Regionalisation 1
Management and Business Context
Simcoa and Regionalisation

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Introduction
The competition has increased day by day that is why it is necessary for the business to
make the better understanding about the ways in which they are doing their business. There are
many capabilities in the organization which should be considered by organization to enhance the
performance of the organization. Every organization has different risk factor which should be
analyzed by them to eliminate them. The best practice decision enables organization to move
ahead without any obstacles that may assist in enhancing their organizational performance
(Turban, Sharda & Delen, 2011). The role of different functions is huge in the organization to
attain the business strategies. Simcoa Operations is an Australian based company dedicated to
developing the world’s effective quality silicon to meet customer’s needs. There are various
industrial and lifestyle products are being produced by Silicon that plan a vital role in everyday
lives. The organizational structure of Simcoa will be defined in this essay along with the internal
and external forces surrounding their business. The current risk that confront by Simcoa and the
steps that are taken by them to improve their performance will be elaborated.
Organizational structure of Business
The organizational structure of the business helps to understand the criteria of working and
responsibility of the employees and higher authority. It has been found that Simcoa employs
about 180 local people (Mine Earth, 2013). There are various departments that help employees to
manage their work appropriately. The top level of manager delegates the work responsibility as
per the capability of the employees. The structure depicts the innovative market for waste
products as it has taken various steps to minimize and recycling waste. This company operates
24*7, 365 days a year and it has produced around 50,000 tons of silicon and 11,000 tones of

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silica fume per year (Simcoa, 2008). To manage it in proper way, there are various departments
present in the company having various roles compliance committee, information security,
manufacturing staff and supervising department.
External and Internal environmental forces
There are various internal and external forces available that impact business directly or
indirectly. In the context of Simcoa Company, internal factors of Simcoa can be resources,
organizational culture, nature of the workforce and changes in the managerial personnel.
Resources are the major component of the organization and maintaining them is a challenge
especially in terms of human capital they have. It is required to invest in training program to
make trained employee about the working style as it manufactures silicon which has huge
importance in daily life. The culture of organization should be managed in effective manner as
the policies and procedures regarding managing the diverse workforce should be implemented
(Ahri, 2016). Employee satisfaction is necessary to maintain the long term relationship with the
employees. Changes in the managerial personnel are the internal force that can impact the
working employees.
There are some external forces that may impact the activities of business. These are defined
below:
Political and Legal
There are number of political terms are built and reorganized that may influence the entire
business of the organization. The prices of silicon are dependent on the bonding between the two
countries as Simcoa deals with number of countries all over the world. In the amendments of
policies regarding production of silicon can impact the business of Simcoa directly or indirectly.

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Economical
It can be found that there are various parts in the world that does not have economic stability. In
such conditions, it is required to the Simcoa Company to have efficient economic policies to
ensure quiet good earnings or profits. The slowdown in the market of USA and the poor
performance by European economy can bring huge losses for the company.
Social
The demand of the society is changing day by day due to latest technology which may impact the
organization. Silicon is being used in our daily lives which enhance its demand rapidly. It can be
considered as the huge opportunity for the company to expand its business globally.
Technological
There are many technologies used in the organization to produce silicon. It forces Simcoa to use
latest technology in the production of silicon or make amendments in technologies at standard
intervals of time (Frew, Powell, Sallam, Allsopp & Johnson, 2016).
Environmental
Simcoa has environmental friendly operations that committed to retain an effective standard of
environmental awareness along with contributing to the development of economic of the region
which is an important part of Simcoa operations.
The risk that currently confront the business
Every organization has different risk which should be considered by them to eliminate them
within time so that it could not impact the performance of the organization (Wooldridge, Schmid

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& Floyd, 2008). In the context of Simcoa, safety risk is currently confronted by the business
because in the production of Silicon a steep temperature gradient extends from the zone of the
arc which is 3000°C. Silicon is the chemical element that is made up of various chemicals
formulas which may raise the risk of environmental risk. However, Simcoa is environmental
friendly operations in which it encourages to minimize and recycling the waste but the effect of
chemicals can decrease the healthy environment and hamper the plants.
Business practice decisions to enhance the organization performance
There are various kinds of decisions that can be taken by the organization in order to improve the
performance of the organization. This has forced company to keep focus on various aspects for
enhancing the performance of the company. High performing work practices refers those
practices that amplify the profit and productivity of the organization (Katzenbach & Smith,
2015). These tactics can be applied by Simcoa systematically and fairly in the organization
which would enhance the employee engagement, build the trust of customer and employee over
the company, and encourage high performance and productivity (Katzenbach & Smith, 2015).
Employee suggestion and innovation program are comprised under high performing work
practices which should be considered in the business practice decisions to enhance the
organization performance. Benchmarking is another business practice decisions that helps
organization to determine what and where amendments or improvements are called for. It is able
to analyze the performance of other organization (Sridhar, Mantrala & Naik, 2016). Training is
important for the Simcoa organization as it produces the silicon on a commercial scale in three
submerged arc furnaces by the carbothermic reduction of silica. Safety of the employee is vital
for the organization and for this company should make policies and procedures. Along with that
employee engagement is the best practice decision to enhance the performance of the

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organization. Simcoa organization should make them ensure that they are valuable asset for the
company. The employee engagement facilitates to engage with work in more productive manner
(Buller & McEvoy, 2012).
Important functions within the business organization
Business organization has various functions that assist to attain the goal and objective of the
company within time frame. Important functions of Simcoa are operational, financial, human
resource and marketing. The operations department of Simcoa should be considered in effective
manner for increasing the productivity of the employee. Simcoa is large organization that deals
with many countries and supply them Silicon in large amount. Lack of observances and care
could lead the company in the adverse situation (Schönsleben, 2016). It is necessary for the
organization to keep focus on operation department as it is responsible for running the business
successfully. Silicon is made up of various chemicals which require huge investment. In such
case, the role of financial function is important which ensures the company that invested amount
is utilized for the benefits of the company. The role of human resource is to provide the training
about the working style to the new employees and maintain the policies and procedures of the
company (Fligiel & Patyk, 2016).
Various functions in Simcoa are keeping huge importance in developing the productivity of the
employee in an efficient manner. Social contributions are being done by this company to support
the community of south west Australia. It has been done with the help of human resource
functions of the company. The work life balance is maintained in the company which helps
employees to get time for their family. This activity aids to decrease the employee attrition and
enhance the faith of the employee as well as customers towards the organization.

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Conclusion
In the limelight of above discussion, it can be concluded that managing change is complex task
which can be handled in effective manner by analyzing the situation of the company. Internal
and external forces can bring the huge changes in the organization. Various risks have been
mentioned in the assignment that confront by Simcoa. High performance working practices,
brainstorming, training and employee engagement are necessary for increasing the productivity
of the employee. Simcoa is involved in various events and organization to contribute in the
society. There are various functions such as human, financial, operational and marketing that
encourage company to move forward in an effective way.

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