write ideally 600 words to address the following points.
- (250 ~ 350 words) An analysis of the macro environment of Transurban Group(Australia environment),
including the major factors in the general and industry environments. What opportunities and threats are
being created for the company by these macro environmental factors? Use relevant models to analyse
the general and industry environments. (can be either PESTEL analysis or porter’s five forces analysis)
2.(250 ~ 350 words) An analysis of the Transurban Group’s internal environment including key resources
and/or capabilities that could support competitive advantage (in Australia). Does the company have any
core competencies?
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Transurban Group: analysis of its internal and external environment
Companies and organisations should understand the environment they operate in to adapt
to appropriate strategies. This is achieved through macro and microenvironment analysis. The
general environment as well as the internal environment a company operates in affects its
business this paper analyses the macro and micro environment of Transurban Group in Australia.
The company develops urban toll roads in Australia and is ranked among the top 50 companies
in the Australia Securities Exchange (Transurban, 2014).
Analysis of microenvironment
PEST meaning political, economic, and socio-cultural and technology is strategic
analysis tool that enhances understanding of larger environment from which the company
operates (Waters, 2006). It is also essential in helping organization identify opportunities and as
well warns about threats the company is exposed to.
Political forces
Construction industry in Australia is thriving because of the stability on the government.
The support and cooperation the company receives from the government has played a key role in
the success of this industry (Australia infrastructure report, 2014). The government however, has
legislations that help regulate the operations of these companies to ensure that they meet the
thresholds. Contracts are awarded to credible and companies with record of accomplishment.
The process is based on competitiveness hence ensuring that the best gets the contracts. Laws of
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environmental and employment are considered. There should be diversity in seeking employees.
The industry as well as Transurban also complies to the tax and tariff control, the company is
required to remit its taxes to the government as required.
Economic factors
The economic factor from which the industry as well as Transurban Group operates is
characterized by various factors (Bingham, 2005). Transurban Group is at a maturity level in the
business cycle. It is one of the dominant companies in the Australia. Therefore, it is affected by
interest rates, economic growth, and inflations that affects it performance / returns. Labor costs
as well affect this industry as well as technology (Nilsson and Rapp, 2005). Economic changes
are likely to affect the company in terms of its revenue. The company is vulnerable to exchange
rates fluctuations, stiff competition from other companies and stiffer environmental regulations.
It should therefore ensure that it puts into consideration these aspects to ensure that they does not
affect the functioning of the company.
Technological
Most of the construction companies in Australia, Transurban Group include has
embraced technology. Technology has revolutionized the way business operates and this has also
increase the speed at which r tasks are executed.
Socio –cultural factors
The increase in the number of population is affecting the rate of construction. The needs
of roads has increased as many people in the urban center use road transport. These therefore
present new opportunities for the company in future. It will be required to put in place
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infrastructure to take advantage of the increasing allocations that the Australia government will
provide demand of mature roads is increasing and the company will accrue higher profits
(Research and Markets. (2013).
Internal environment
Understanding the internal environment of a business is critical. To understand internal
environment of Transurban Group, use of value analysis is very important (Porter, 2008). The
company operations are categorized as primary and supportive activities. The company inbound
logistics allows the company to plan and come up with initiatives to improve in its service
provision. Its operations involves transforming the road sector, it create value by providing by
improving the roads that help people to move from one place to another (Kaplinsky and Mike,
2001). The company procurement process is as well very precise. Its raw materials as well as
machines are provided by various suppliers that they have established with them good
relationship. The company has as well competent staffs that help it achieve its goals. The
management is made up of professionals that provide expertise. It also embraces diversity as it
does not discriminate on the basis of gender, race, color of skin or religions. Technology as well
has been embraced in its operations something that has given the company a competitive edge
over its rivals. It also has geographical diversity of assets, which has helped it to provide
services and as well manage its operations. The company has as well gained a lot of popularity
among the various financiers because of its quality work. Therefore, the company future seems
to be promising. Increasing liabilities as well as weak financial performance are some of the
changes that the company faces and which it needs to address to-enable it maintain its financial
stability.
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Reference list
Australia infrastructure report. (2014) Australia Infrastructure Report, 2nd Quarter, 2, pp. 1-146.
Bingham, A. (2005) Create competitive advantage with innovation (collection). Pearson
education, Inc. Upper Saddle River; New Jersey.
Kaplinsky, R. and Mike, M. (2001) A Handbook for Value Chain Research (Report).
International Development Research Centre. Retrieved 21 April 2014.
Nilsson, F. and Rapp, B. (2005) Understanding competitive advantage: The importance of
strategic congruence and integrated control. Berlin: Springer.
Porter, M.E. (2008) Competitive strategy: Techniques for analysing industries and competitors.
New York: Free Press.
Research and Markets. (2013) Transurban Group Fundamental Company Report Including
Financial, SWOT, Competitors and Industry Analysis By: Research and Markets,
Business Wire (English), 06/14/2013
