Essays on Strategic Analysis and Context Evaluation - Boral Australia Case Study

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The paper 'Strategic Analysis and Context Evaluation - Boral Australia" is a good example of a management case study. Boral Australia abides the regulations established by the government. The government participates in business through by setting laws and regulations which business enterprises must adhere to. Boral consumers are protected by a political agenda that influences the conduct of its business. Also, the government intervenes in business to help conserve the environment and set a standard price for products. The management of Boral Australia ensures adherence to the ethical principles created by law when carrying out its various operations.

Price intervention is challenging to the company given that it also relies on changes in production costs to set prices for products. This forces the company to try and minimize the production costs so that meets these legal requirements. Boral Australia is committed to eliminating adverse effects to the environment by abiding by environmental regulations, legislations and standards established by the government. It also reduces greenhouse gas emissions during operations and reduces waste disposal by using LEAN manufacturing principles. These are issues the company cannot avoid and has to comply with them to maintain good relationships with the community. Economic factors The company depends on economic factors to operate the business well.

The management has to consider the production costs such as labor and raw materials to make informed decisions. The cost of production changes over time and there is a need to evaluate the likelihood of price fluctuations in the future. In addition, the price set determined by the government through fiscal and monetary policies influences the cost of production. Competitors and suppliers pricing influences the market of Boral’ s products.

Fluctuations in foreign currencies, especially the US dollar affects Boral’ s profitability. For, instance a recent decline in the Australian dollar against the US dollar increased profitability of US business. This means that management has to continue forecasting economic trends to predict price changes in building and construction products so as to adjust prices accordingly. Socio-cultural factors Culture helps to identify the behaviours of a group of people. It displays a unique pattern of life in societies. People with similar culture always have their own values, belief and customs that bring them together as a society.

Boral Limited is not an exception either. Boral Limited approaches all its activities in a socially responsible manner. Indeed, the way the company behaves in different market segments is guided by socio-cultural factors. Through diversity policy, Boral Australia ensures that it creates an inclusive workplace which is sensitive to diversity. The company acknowledges differences in ethnic background, religion, disability, race, gender, political activity, personal association and disability among other social aspects when conducting business. This is a good initiative and has helped Boral Limited gain recognition across Australia.

The company continues to promote indigenous relations through the Indigenous Employment Plan which is to be implemented this year. In addition, Boral’ s businesses continue to support community activities such as emergency services, charities, sporting and environmental groups to promote community partnerships. Technological factors Boral Australia has to continue adjusting to technological changes for it to survive in the market in the future. Being a building and construction company, Boral Australia relies on technology to manufacture different products including gypsum, building products, construction materials and cement.

Adopting new technology will help the company produce modern products that satisfy customer needs, thus having a competitive advantage over its competitors. Normally, technology influences the type of products manufactured, the equipment involved in the production, as well as the operations needed to run the production process. The company should focus on using the most effective ways of production and this means introducing new technology at its various divisions. According to the Boral Annual Report (2013), Plasterboard Australia in Boral Gypsum division experienced lower costs of operation and distribution due to the upgrading of Port Melbourne plant at a cost of US$25m.

The company should make a priority future technology innovation for the Gypsum business and other divisions.


Boral Limited 2013 “Boral Annual Report for the year ended June 2013,” Accessed on March 27, 2014 from

Boral Limited website 2014

Banham, H. C 2010 “External environmental analysis for small and medium enterprises (SMEs),” Journal of Business & Economics Research (JBER), 8(10).

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