ASSESSMENT 2. RESEARCH ANALYSIS (Individual) 20% Due date: Week 8 (26 August 2019@ 11:59pm) 2500 words. Submitted in MS Word. You have chosen from the list of set companies and are required address...

IMPACT OF EXTERNAL BUSINESS ENVIRONMENT ON BUSINESS PERFORMANCE WITH SPECIAL REFERENCE TO ADANI AUSTRALIA
Executive Summary
In the given assignment, the impact of external business environment on business organisation has been discussed critically, with a special reference to Adani Australia. After the initial introduction to the topic, the background of the chosen organisation is provided, with the aim of shedding light on the gradual changes in business approach and the changing external environment of the business. Next, an in-depth and critically framed discussion is provided in which the justification for the chosen organisations preference for business diversifying is positioned in consideration with its existing core business type. In the following section the impact of the external business environment on the chosen business, in the future 10 years have been discussed. Considering the future changes and the current organisational trends, the future threats faced by the company has also been discussed, giving in the final details for framing the conclusion in the following section and complete the assignment.
Table of Contents
Introduction    4
Q1. History of Adani Australia’s Ownership and Share Prices in Context of Last Decade    4
Q2. Adani Australia’s Core Business and Justification for Its Strategic Plans for Future    5
Q3. Impact of Market Forces on Adani Australia in Context of 10 years in the Future    7
Q4. Major Threats Faced by Adani Australia    8
Conclusion    9
References    11
Introduction
Taking up new business ventures is a part of business expansion, growth of profitability and long-term sustainability in the respective industry for the business organisations considering the ventures necessary. However, with the changing dynamics of markets, their characteristics, the nature of the undertaken projects as well as the response from the external market conditions create issues and challenges that take proper strategic planning and in depth assessment of the organisational as well as the market contexts to be on the right track. In the given report the business and business ventures taken up by Adani Australia has been considered, especially in context of its mining business endeavours.
Q1.History of Adani Australia’s Ownership and Share Prices in Context of Last Decade
Adani Australia has its origin in Adani Group, which is an Indian conglomerate, set up in 1988. The company has been in existence for the last 31 years and has diversified its businesses within the home country market as well as in nearly 50 other countries all over the globe. The company from a very early stage in the market diversified its business offering including energy, agribusiness, real estate, import-export and many more(Adani, 2019).
After expanding in its home country market, namely India, the company expanding internationally, entering profitable markets such as United Kingdom and Australia. The company remained the under the leadership of its owner Gautam Adani, although the company has been also engaged in conducting joint business ventures with companies such as Wilmer International, with whom the company jointly holds the ownership of one of its agribusiness product – Fortune oil, which is one of the highest consumed edible oil in the country(Adani-Wilmer, 2019).
The Adani Group started investing in Australia under the name of Adani Australia in 2010 and the invested amount until now has reached AU$ 3.3 billion (Adani Australia, 2019). Considering the large deposits of minerals available in the market, Adani Australia has invested in mining business, especially coal mining and therefore, the company has bought Galilee Basin Coal Tenements, tool lease of Abbot Point Coal Terminal and bought the rights of mining Carmichael Mine and railroad construction.
The strategic planning of Adani Australia hints at the company’s steady abidance of BCG Matrix. The company gradually divested from the saturated businesses and aimed at entering markets that would work as a Cash Cow for its future endeavours. As mentioned by Torquati et al.(2018), in a cash cow business sector, business organisations earn profit from a saturated market, where the company’s market share is high, making the consistent earning a source of profit, which will be enough to develop the unsaturated business areas and new sectors, while losing its edge after a certain period of time. Adani Australia has not tried to create a new business infrastructure with huge investments, instead the company has aimed to reap from the high market share Australian coals have in the local as well as in the international market.
The demand and the pricing of the coals from the Australian mines have fluctuated over the last few years. Adani Australia generally exports coal, having India, China and Japan as most consistent and large-scale buyers of coal. The prices of the share therefore, remain considerably moderate, given the limited and static sales figures it generates. In the last three years, the prices of the shares have gone up, considering the Trade War started between USA and China, making China producing less products, and coal, which is leading to higher demands for Australian coal in international markets.
Considering the growth of the industries all over the world, as identified by Oei and Mendelevitch (2019), the demand for high quality coal is expected rise higher, increasing production needs and potential prices of share. The coal mining industry is expected to grow until the alternative energy sources are developed, offering a sustained profitability for the organisations involved in the industry.
Q2. Adani Australia’s Core Business and Justification for Its Strategic Plans for Future
Adani Australia, although owing its origin to Adani Group, is very different in terms of business nature from its origin company. Entered Australia in 2010, Adani Australia has mainly made its name as an energy production company, using both fossil fuel deposits and renewable energy production sources such...