CSR Limited Analysis Assignment Sample

• Subject Name : Accounting and Finance

Porter’s Five Forces and SWOT Analysis 

Executive Summary of CSR Limited Analysis

The report begins with the introduction of CSR limited which is one of the oldest manufacturing companies in Australia. It is among the leading building product company in Australia and New Zealand with more than 2900 employees working under it. Although the company have started its operations on 1855 as refining sugar to milling of raw sugar, soon it diversify its image in building and construction industry (“About Us | CSR,” n.d.).

The aim and objective of the research is to identify the company’s competitive strategic position by performing of Porter’s five models and SWOT analysis of CSR Limited. Company’s business and corporate strategy have to be identified by using two models. Finally, the report is to be concluded in respect of the objective of the study.

Introduction to CSR Limited Analysis

CSR limited is one of the largest and most trusted brand names in building product and systems for homes, construction and renovation site in Australia and New Zealand with the revenue of $2.3 billion in YEM19(“CSR Limited Annual Report 2019” 2019) .CSR was first started as the manufacturers of sugar and sugar activities which comprised one fifth of CSR sales, but in order to change their image as Sugar Company they diversify their operation in building product as well. It has more than 165 manufacturing and distributing sites with almost 18000 plus satisfied customers (“CSR Limited Annual Report 2019” 2019). Its main aim is to provide the quality and innovative product to its customers.

Porter’s Five Forces

This model focuses on how the CSR Limited can build a strategy in material market so as to have profitable opportunities.

Threat of New entrants:

New entrant in the market can bring new and innovative product in low cost therefore CSR have to access the market and bring innovative product and services, and be the dynamic industry so that new entrant think of entering the market and earn extraordinary profits. (MINDTOOLS 2009)

Bargaining power of Suppliers:

Suppliers are in dominant position as they can use their negotiating skills to get higher prices of material. Therefore CSR should develop supply chain with different suppliers. They should also experiment with different material like they made 30 million bricks from waste, so that if the price of particular raw material increases they have other alternative. (“CSR Limited Annual Report 2019” 2019)

Bargaining power of Buyers

CSR should continuously innovates new product so as not to give the customer the chance to negotiate and also it will refrain them from buying the product from competitors.

Threat of substitute product or service

CSR should try to understand the core need of the customer not just what they buy. The company should not only be product oriented rather it should also be service oriented.

Rivalry among the existing competitors

CSR should have product differentiation and should collaborate with the competitors so that the competition is in large scale not small scale.

SWOT Analysis of CSR Limited Analysis

This model can be used on situational analysis of the firm. It helps in identifying the strength, weakness, opportunity and threat to the company in current situation. The dominant position of CSR has been maintained as they critically analyze and review SWOT Analysis. (2020)

Strength:

There are many strength of CSR which help in maintaining the existing market and can be helpful in focusing untouched market. Some of the strengths of CSR are-

CSR have highly skilled workforce as they spend a huge amount in training and development of workforce so that they can achieve more. They have a strong dealer community where the dealers not only promote the product but also invest in training of their staff so as to extract more profit.

The company is fully automated which helps in providing quality product. The company also has high level of customer satisfaction as they are determined to provide quality product to the customer.

Weaknesses:

Though spending a lot in research and development still the company is far below than its competitors in terms of innovation, as it brings out the product on tested features. Though being the market leader, lack of unique selling proposition and positioning of the product in the market which can attract the competitors in the market. The company has higher attrition rate in workforce as they are spending more on training and development of the workforce i.e. $3.1 billion spend in YEM 2019 as in comparison to any other company. (“CSR Limited Report Annual Report 2019” 2019)

Opportunities:

Investment in digital services over the years can help the company to increase its sales and to know their customer better through regular feedback. The company can also decrease its transportation cost so as to earn higher profit or can increase its market share by transferring the benefit to its share holders. Innovations of latest and different products to lure both existing and prospective customers. (“Internal Environments | CSR” n.d.)

Threats:

The development of new technology by the competitors can be the threat to the company. Growing power of local distributors can also pose threat as competitors might pay higher margins to them. The cost of using energy is increasing especially in Tomago aluminium which increases the cost as compared to its global competitors. CSR have a large supply chain so as to manufacture and distribute the product which can be impacted by any political or technological factors. (“CSR Limited Annual Report 2019” 2019)

Conclusion on CSR Limited Analysis

By the above analysis it can be concluded that CSR limited strategy is based on strengthening and investing in workforce, diversity in working , providing comfort and be energy efficient so as to reduce the operating cost, and focus on customer by providing efficient before and after sales service by continuously innovating the product manually and digitally.

References for CSR Limited Analysis

“About Us | CSR.” n.d. Corporate. Accessed August 29, 2020. https://www.csr.com.au/about-us

BAC REPORTS. 2020. “CSR Limited Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis.” Marketpublishers.Com. Accessed August 24, 2020. https://marketpublishers.com/report/industry/raw_materials_fillers/csr_limited_swot_analysis_bac.html.

“Corporate Strategy - Learn the 4 Pillars of Corporate Strategy.” 2017. Corporate Finance Institute. 2017. https://corporatefinanceinstitute.com/resources/knowledge/strategy/corporate-strategy/.

CSR Limited - Company Profile, Information, Business Description, History, Background Information on CSR Limited.” n.d. Www.Referenceforbusiness.Com. Accessed August 29, 2020. https://www.referenceforbusiness.com/history2/90/CSR-Limited.html.

“CSR LIMITED.” n.d. Accessed August 28, 2020. https://researchdata.edu.au/csr-limited/61890.

“CSR Limited Report Annual Report 2019.” 2019.

‌ “Internal Environments | CSR.” n.d. Corporate. Accessed August 28, 2020. https://www.csr.com.au/building-knowledge/internal-environments.

2009. “Porter’s Five Forces Understanding Competitive Forces to Maximize Profitability.” Mindtools.Com. 2009. Accessed 28, 2020. https://www.mindtools.com/pages/article/newTMC_08.htm.

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