Business and Management Context of SIMCOA Operations PTY LTD: A Report

This report provides a comprehensive analysis of SIMCOA Operations PTY LTD, an Australian silicon metal company. It begins with a brief introduction, outlining the company's history, ISO 9001 certification, and commitment to sustainability. The report then delves into SIMCOA's hierarchical organizational structure and the concept of regionalization, examining how the company divides Australia and utilizes a 'GLOCAL' strategy. Internal and external environmental factors are analyzed, including strengths, weaknesses, and the PESTLE framework. The report identifies key risk factors, such as fluctuations in silicon demand and changing import/export policies, and proposes risk mitigation strategies like regionalization and joint ventures. Important business functions, like meeting regional silicon needs and adopting advanced technology, are discussed. The report concludes with recommendations, emphasizing regionalization, decentralization, and operational efficiency, and highlighting SIMCOA's focus on emerging economies and its commitment to high-quality silicon production. The references cited provide additional context and support for the analysis.

Management
and Business
Context-SIMCOA
Operations PTY
LTD

Purpose of the Assignment
◆ Brief Introduction
◆ Organizational Structure
◆ Regionalization at SIMCOA
◆ External environmental analysis
◆ Internal Environmental analysis
◆ Factors of Risk
◆ Important Business Function
◆ Conclusion
◆ Recommendation
◆ References

Brief Introduction
◆ SIMCOA stands for Silicon Metal company of Australia was
founded in the year 1989 in Western Australia(Bryson, 2018)
◆ The company was formed with the idea of creating the highest
quality silicon to meet the domestic requirement of the
flourishing manufacturing industries of Australia.
◆ The company later increased its production to meet the global
demand of Silicon(Casadesus & Ricart, 2010).
◆ SIMCOA is ISO 9001 certified company which is known across
the globe for its high quality Silicon, which is used in plethora
of manufacturing industries(Chen, Huang & Hsiao,2010)

Continued…
◆ The company believes in generating employment to benefit and
uplift the local strata of the population(Wheelen & Hunger, 2011).
◆ SIMCOA has been in news for being a highly responsible corporate
citizen ensuring economic, social and environmental
sustainability.
◆ SIMCOA believes that there is no concept of waste in the industry,
thus it ensures that it utilizes all of its waste which is crated as a
by product and sells across to various industries(Yang, Yu, Hsu,
Yang & Lan, 2015).
◆ SIMCOA ensures business sustainability by the usage of low ash
coal and charcoal and employing a team of technical
experts(Zheng, Yang, McLean, 2010)

Organizational Structure
◆ The company follows a hierarchical structure which is extremely
traditional in nature(Lau & Tsui, 2009).
◆ The board of directors and the top management exercise
maximum control on the organization.
◆ The organization structure can be seen as centralized owing to
the decision making power which are vested in the hand of top
management(Mine Earth, 2013).
◆ The communication flow is downwards in the organization
◆ The last layer of the organization structure includes the
workforce which works in the manufacturing plants..

Organizational Structure

Concept of Regionalization
The process of dividing a large area into smaller segments is called
as regions.
Regionalization is the concept of dividing nation into states or
provinces for much focussed attention.
Regionalization is important to cater the growing needs of the
different markets.
Regionalization ensures that the needs of each and every section of
the society is being catered to with increased efficiency and high
quality.

Regionalization at SIMCOA
◆ At SIMCOA regionalization is done by dividing Australia into
different demographics and catering to the specific needs in
Silicon manufacturing(Sridhar, Mantrala & Naik, 2016).
◆ At the Global level the company has adopted the GLOCAL
strategy- Go Global and Think local .
◆ SIMCOA responsibility first lies in fulfilling the domestic
requirement and then moving forward with filling the global
demand.
◆ The company however uses the approach of finding the
maximum demand in the region and then puts its resources to
cater to the high rise demand(Wooldridge, Schmid & Floyd, 2008).

Internal Environmental Analysis
◆ Internal forces include the self analysis of the organization in
terms of its human and production resources, financial and
operational capabilities, technical expertise and production
capacity(Ahri, 2016).
◆ ISO 9001 certification is the measure of Internal strength of the
organization.
◆ Additionally, the company has been meeting Domestic and Global
demand of Silicon which is a major factor of leverage for the
company.

External Environmental Analysis
◆ The PESTLE framework helps in understanding the factors which
can affect the organization in the longer run(Schonsleben, 2016).
◆ The strength of growing legal framework of Asian countries can
restrict the growth of SIMCOA.
◆ The growth in concern relating to increased carbon footprint is
another external factor affecting the organization(Simcoa, 2008).
◆ Increased concern towards ensuring environmental sustainability
can push the company to increase its investment in plants for
controlled pollution

Risk Factors
◆ The biggest risk factor associated with SIMCOA’s Business
operation is related to the sudden increase and decrease of high
quality Silicon worldwide.
◆ Changing tax policies, high government duties and the change in
import and export policy are other risk factors.
◆ Ban on import from Australia can be a possible risk factor for
SIMCOA.
◆ Growth in competition in Silicon has risk over SIMCOA revenue
growth.

Risk Mitigation
◆ The best strategy to mitigate business risk is to focus on
Regionalization.
◆ Focussing on the emerging economies will help SIMCOA to boast
its revenue and remain wary of the sliding demand form other
markets.
◆ The company has to get into a joint venture with companies in
Asia to utilize the growing opportunity of the Asian market.
◆ Help other industries to flourish and prosper by forming more by
Products in the production of Silicon.

Important Business Function
◆ With the objective of Regionalization the company has the
responsibility of fulfilling the growing need of Silicon in its Target
market.
◆ Improving the quality of its products by introducing advanced
technology in its plant and efficient workforce.
◆ Adopting unique and efficient process in its operational strategy
to increase the production of Silicon and meet the global and the
regional demand.

Recommendation
The recommendation are the Preamble of Success for the company.
◆ Focus on regionalization and emerging economies to push its
high quality silicon organically.
◆ Introduce decentralization in some of the business function likes
Marketing and Business development to explore additional
business opportunities(Buller & McEvoy, 2012).
◆ Focus on bringing 6 sigma operational efficiency in its
operational plants to reduce the time and expedite the
production of Silicon.
◆ Effective need fulfilment of new identified target market through
regionalization.

Conclusion
◆ SIMCOA is an Australian MNC which produces high quality Silicon.
◆ The company focuses on meeting the regional and the global
demand of Silicon across Australia and the Globe.
◆ The company to adopt regionalization as its business strategy to
break down the markets into strong profit centres.
◆ SIMCOA has to focus on increasing its operation capacity,
focussing on producing high quality of silicon in the minimum
time possible.
◆ The Target areas for maximum focus of SIMCOA is the emerging
economies

References
◆ Bryson, J. M. (2018). Strategic planning for public and nonprofit organizations: A guide to
strengthening and sustaining organizational achievement. John Wiley & Sons.
◆ Casadesus-Masanell, R., & Ricart, J. E. (2010). From strategy to business models and onto
tactics. Long range planning, 43(2-3), 195-215.
◆ Chen, C. J., Huang, J. W., & Hsiao, Y. C. (2010). Knowledge management and innovativeness:
The role of organizational climate and structure. International Journal of Manpower, 31(8),
848-870.
◆ Wheelen, T. L., & Hunger, J. D. (2011). Concepts in strategic management and business policy.
Pearson Education India.
◆ Yang, Y. M., Yu, A., Hsu, B., Hsu, W. C., Yang, A., & Lan, C. W. (2015). Development of high‐
performance multicrystalline silicon for photovoltaic industry. Progress in Photovoltaics:
Research and Applications, 23(3), 340-351.
◆ Zheng, W., Yang, B., & McLean, G. N. (2010). Linking organizational culture, structure,
strategy, and organizational effectiveness: Mediating role of knowledge management. Journal
of Business research, 63(7), 763-771.

References
Lau, A., & Tsui, E. (2009). Knowledge management perspective on e-learning effectiveness. Knowledge-Based
Systems, 22(4), 324-325.
Mine Earth, (2013). Simcoa Operations Pty Ltd. Retreived on 5th May, 2018, from:
http://www.mineearth.com.au/simcoa-operations-pty-ltd/.
Schönsleben, P. (2016). Integral logistics management: operations and supply chain management within and
across companies. CRC Press.
Simcoa, (2008). Simcoa Operations. Retreived on 5th May, 2018, from:
http://www.simcoa.com.au/company-2.html.
Sridhar, S., Mantrala, M. K., & Naik, P. A. (2016). A New Method for Benchmarking Marketing Organizations with
Inter-Connected Departments. In Marketing Challenges in a Turbulent Business Environment (pp. 35-36).
Springer, Cham.
Wooldridge, B., Schmid, T., & Floyd, S. W. (2008). The middle management perspective on strategy process:
Contributions, synthesis, and future research. Journal of management, 34(6), 1190-1221.
Ahri. (2016). Fons Trompenaars Award For Cross Cultural Management. Retrieved from:
https://www.ahri.com.au/awards/ahri-awards/hall-of-fame/2016-winners/2016-organisational-winners/fons-tromp

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