Executive SummaryThis paper is a comprehensive report that analyses the pulp industry of Australia, and covers Gunns case study, as one of the companies in this industy. It will consider looking at the strength and weaknesses as well as the PESTLEDG. It will also cover Porters five forces from a macroeconomic’s view. The core competencies are: Findings from situational analysisGunns’ corporation has a well stated set of objectives, mission and vision statements. It is up to the workers to ensure to work towards a congruent achievement of all these core values of the company.
In trying to meet these objectives, the company should also ensure to maintain a good relationship between them and the macro environment, which will translate to a good relationship with the neighbouring community while maintaining a goods rapport in their surrounding. Stakeholders’ analysisIn undertaking this report, the company’s core objectives are discussed. This will help better understand the stance from which this particular discussion was born, since the company’s main contributor is the ecology and dealing with forests is in itself a sensitive matter as it may be detrimental to the wellbeing of the company to ignore this crucial factor.
It should therefore develop ways to conserve it, avoid conflicts with the macro environment and other forms of conflict that would emerge from the risky undertakings in their workplace. Industry and competition analysisAn evaluation of the SWOT analysis also reveals that the company faces certain challenges when it comes to competition from other companies. Competition from Norske Skog, Australia Paper, Kimberly Clark, SCA, Cellulosa and Aktiebolaget would be seen as a threat to the corporation, but positively countering this problem would be very advantageous to the company’s wellbeing. Key success factorsOther more sensitive areas would be to evaluate the opportunities Gunns enjoys, which will prove the company’s intention of going to the global market.
There are many threats that encompass the view to go global. The substitute threat of timber would not reciprocate inversely to the establishment of overseas enterprises. However, in production of wine, additional feasibility study should be carried out depending on the market situation in the region they are making entry into. Also there should be some evaluation of the quality they are producing due to the high price tag on the wine. Macro environmentGunns has the advantage that it operates in a calm political environment at the moment.
This is very promising for them since it attracts a wide array of investors to the corporation. In addition, the economic situation in Australia makes it easy to operate business in the region, and Gunns enjoys that opportunity. Other favourable determinants are the legal framework governing corporations (which is favourable) as well as technology, demographic and the global situation. Tall these are in favour of the operations of the corporation. SW (internal) / OT (external) (about Gunns)StrengthsStrengths are the internal factors of a business that give it a strong grip on the ground (Sinclair 2010).
These are the factors that many businesses bank on to be able to achieve their objectives. Gunns has a number of strengths, which have enabled it to be among the key players in the industry, as well as keep up with the stiff competition from other business. This section will focus on these issues that give it an upper hand over other key players in the industry.