The paper "Environment Conditions on Australian Gambling Industry" is a perfect example of a management case study. Over the past few decades, the Australian gambling industry has received continuous growth. This growth has been greatly attributed by the introduction of electronic gaming machine in the early ’ 90s. The governing bodies of gambling in Australia are Lotteries commission and Totalisator Agency Board (TAB) which has also contributed to a tremendous increase in the number of gambling activities in Australia. Laws and policies governing gambling are frequently reviewed and redefined at regular intervals so as to be at par with dynamic economical and technological conditions.
Components of gambling in Australia comprise majorly of horse racing, lotteries and lottery products, electronic gaming machines in casinos and hotels, wagering and other varied activities. Research has revealed that participation of gambling by the general public in the past decade has been on the decline. The gambling industry has been under threat with a rise in the level of expenditure on the already existing activities and little returns since the industry barely attracts a large group of the population (Rumelt 1991). Research findings have indicated that the majority of the citizens have been forced to cut down on luxurious spending following the global financial crisis.
This problem has not only been felt in Australia but by other countries such as Japan, Macau and Las Vegas. Consequently, entertainment industries with the inclusion of gambling have suffered adverse effects of reduced profits. Having pointed out that the gambling industry is one of the greatest contributors of revenue in Australia, the government has intervened to try and rectify the situation by firstly participating in national campaigns aimed at reviving the sector and secondly reducing the taxes imposed on gambling products (Rumelt 1991).
Other stakeholders in the industry such as suppliers of the gambling industry have also been victims of the harsh conditions facing the industry. In this case, they have been forced to cut down their future expectations in terms of revenues. The essay will discuss some of the external as well as internal aspects affecting the gambling industry in Australia. It will further examine Porter’ s 5 forces model with special attention on how attractive the industry is towards new entrants and the implications they might have on the industry (Neuman 2003). Environment conditions on the Australian gambling industry Organizational environment/external environment refers to institutions or forces outside the organization that have either positive or negative implications on the performance and decision-making process of the organization.
Specific environments have a direct link to the attainment of organizational goals and objectives and they include suppliers, customers, pressure groups and competitors. On the other hand, general environments are the broader external factors that affect an organization (Hawke 2000). Specific Environment Customers: Originally, the gambling industry had numerous oppositions from civic groups due to moral and ethical issues that were attached to it.
However, this has changed over the years with more people getting involved in the activities. The number of gambling customers has gradually dropped over the past decade due to the harsh economic conditions (Porter 1985). Competitors: Despite massive competition from other entertainment industries in Australia, gambling has been able to achieve an almost monopoly with the introduction of numerous products. Managers have developed policies to deal with competitors such as pricing of new products and introducing incentives to attract new customers. Suppliers: In order to achieve its goals, the gambling industry needs to have a reliable and steady flow of supplies in terms of financial supply, human resource supply, material supply and information supply (Porter 1985). Pressure groups: It is crucial for the managers of the industry to recognize the interested groups and associations that attempt to operations of the industry such as trade unions (Palmer & Worthington 1992).
Adams, P. 2008. Gambling, freedom and democracy. New York: Routledge.
Bhagat, S., and Black, B. 1999 "The uncertain relationship between board composition
Family and Community Services and firm performance". Business Lawyer 54, 921-963.
Hawke, A. 2000.Measuring the Impact of Gambling: An Economists View. Hawke Institute
Working Paper. Series No. 4.
Marks 2005 Income poverty, subjective poverty and financial stress’ Report by the
Melbourne Institute of Applied Economic and Social Research for the Department of
Neuman, W.2003. Basics of Social research: Quantitative and Qualitative Approaches. Boston:
Allyn and Bacon.
Porter, M E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance, New York: The Free Press.
Porter, M E. (1980) Competitive Strategy: Techniques for Analysing Industries and Competitors, New York: The Free Press.
Palmer, A. and Worthington, I. (1992) The Business and Marketing Environment, London: McGraw-Hill.
Rumelt, P. (1991) Fundamental Issues in Strategy: A Research Agenda, Harvard Business School Press.
Siaw, I. and Yu, A. 2004. "An Analysis of the Impact of the Internet on Competition in the
Banking Industry, Using Porter's Five Forces Model". International Journal of management 21, no. 4: 514–524.
Slater, S. and Olson, E.2002. "Fresh Look at Industry and Market Analysis." Business Horizons
45. no. 1, 15–23.
Stein, E, 2007. The cyclical nature of North–South FDI flows. Journal of International Money
and Finance. Vol. 26 (1): 104–130.
Stiglitz, J. 2008. Towards new global economy compact: principle for addressing the current global financial crisis. A communication to the United Nations General Assembly. New York. United Nations.