MGMT20144 Management and Business Context Assignment Sample
• This is a business case analysis essay that will be 1600 words +/- 10%
• Cover page: The essay must include a cover page that contains your name, student ID number, campus, assessment title, and lecturer/tutor.
• Format: Word document with appropriate layout and use of headings/sub-headings. Times New Roman, 12 size font and line spacing (1.5).
• This individual written assessment is designed to:
– Assist you to develop your knowledge of management and business contexts
– Give you the opportunity to enhance skills in research, professional responsibility, and written communication.
• All submissions must be uploaded through the Assessment Item 1 link on the unit Moodle page. Email submission to the Unit Coordinator is NOT accepted.
• The business case analysis can be uploaded as a word document.
• Penalties for late submission are applied according to the policy. This is 5% of the total marks for this assessment item deducted for every day the assignment is late.
1. You must first select ONE Australian organisation of your choice from the companies listed on the Australian Securities Exchange (ASX). Search the company directory on the ASX website and select one Australian company for your assignment: https://www2.asx.com.au/markets/trade-our-cash-market/directory
2. Conduct research on your chosen organisation by selecting ONE or TWO of the below- mentioned topics (from week 1-5), with a focus on critically analysing the impact of a range of internal and external contextual factors on the performance and decision making of your chosen organisation:
? What is the governance structure of your chosen organisation and how does it ensure the effectiveness of the organisation's corporate governance?
? Which external environmental factors are influencing your chosen organisation’s performance and/or decision- making?
? What are the major risks your chosen organisation faces and how are they influencing its performance and/or decision making?
? What business practices does your chosen organisation adopt and how are they influencing its performance and/or decision making?
? What functional departments does your chosen organisation have and how are they supporting its business activities?
3. Your business case analysis must include at least eight (8) peer reviewed journal articles published after year 2010 from reputable journals (please see a list of recommended journals in the next page).
• Try to include the doi for each journal article in the reference list. For example: Derouiche, I., Hassan, M., & Amdouni, S. (2018). Ownership structure and investment-cash flow sensitivity. Journal of Management & Governance, 22(1), 31-54. DOI:10.1007/s10997-017-9380-x
You could search the library databases via the online ‘advanced search’ function of the CQUniversity library. By choosing the ‘advanced search’ function you can select the actual journal you wish to search. Recommended to use key concepts in week 1-5, e.g., unitary boards, PESTEL, risks, business practices etc. as search items to find the most relevant article to incorporate.
The essay for assignment help discusses the external environmental factors influencing the performance and decision-making of 4DMedical Limited, an Australian organization enlisted in the Australian Securities Exchange (ASX)(Apostolopoulos, Apostolopoulos, Makris, &Stavroyiannis, 2021). It covers the governance structure of 4DMedical Limited and how the structure ensures the effectiveness of the corporate governance of the organization. The essay throws light on the major risks 4DMedical Limited faces and the consequence of these risks on the performance and decision-making of the organization. The essay also contains the business practices adopted by the chosen organization i.e., 4DMedical Limited, and the influence of the same on productivity and governance. Diving deeper, the essay discusses the functional departments of 4DMedical Limited and their support in business activities.
Case organization synopsis
4DMedical Limited is an Australian organization chosen from the companies enlisted in the Australian Securities Exchange. It is a global medical tech firm managing the analysis software of XV lung ventilation. It uses the 3D images of the lungs combined with time to give more accurate observation. Hence it becomes really important to study the governance structure, business practices, and functional departments of the organization. These include the external environmental factors and the major challenges faced by the company that has direct as well as indirect influence on the performance, productivity, and decision-making of the company.
b) Which external environmental factors are influencing your chosen organization's performance and/or decision-making?
The external factors influencing 4DMedical Limited can be listed using Porter’s 5 forces. The model measures the competition faced by the organization and how the productivity of the company changes accordingly.
Challenges faced by rival companies
Companies like IDEA-Bio Medical, Mercuries, NeoChord, EMPIX Imaging, Sisu Global Health, and Fluidda are some of the rival companies of 4DMedical Limited(Rahimi Zarchi et al., 2018). The strategies adopted by these companies are usually relatively strong as compared to 4DMedical Limited. Due to this fierce competition, the performance of the chosen organization is greatly affected. Because of the common services provided by the competitor companies, It becomes difficult to increase the charges of the services and products offeredby 4DMedical Limited. Because of these competitors, it becomes difficult to make decisions about increasing the price of the products also.
Potential of New Entrants into the same industry
With the developing technologies, more new companies are entering the same industry as 4DMedical limited. The emergence of a similar 3D Imaging Company with potential services weakens the stability and reduces the performance of the chosen organization(Rahimi Zarchi et al., 2018).
Power of suppliers
Another external factor that influences 4DMedical is the suppliers of the company. A healthy supplier-buyer relationship means the raw materials and the updated technologies available to the company at the earliest at a good price. If there is a lesser number of suppliers in the industry for 4DMedical, it would result in a large amount of money spent on switching a supplier. On the other hand, a larger number of suppliers would mean a decreased cost of switching among the competitor companies (Wang, Yu?Lin, &Ellinger, 2011). Hence the organization spends a minimal amount of money on the inputs thereby making good profits and good performance.
Power of Customers
The 4th force of porter’s 5 force model is the power of customers. It is also one of the external factors contributing to the organization’s performance. When there is a largernumber of customers of 4DMedical, the performance of the company also increases (Maimone Ansaldo Patti, et al 2016). The organization can also increase the price of the service it is offering accordingly.
Threat of Substitutes
The invention of new technologies that can surpass the XV lung imaging, and ventilation analysis of 4DMedical serve as a threat to the company. Substitute technology can affect the performance of the company negatively(Hameduddin, 2021).
The porter’s 5 forces model not only increases the profits of the company but also helps in identifying the loopholes and developing new strategies. These external factors indirectly affect the decision-making of 4DMedical also.
The 4D medical is subject to some external environmental factors, that the company has no control over. The main external factor that affects the company’s performance and decision-making is the global economic fluctuations. Any global phenomenon may result in an external demand or supply side shock or boom that eventually hit the company's demand and supply and their overall performance as well(Aikaterini, Ioannis, &Vasilagos, 2019). Domestic and foreign inflation, as well as exchange rate, influences the company’s performance directly. The real value of the company’s assets and liability depends on inflation and the exchange rate. An unanticipated change in the country’s tax or wage law may affect the total cost of production as well as the price which in terms may affect the company’s decision-making(Hussain et al., 2021). There are possibilities of new firms entering the market and hence increasing the market competition which may go against the company’s favour. Another external challenge the company deals with is the sufficiency of funds for additional development of the company as whether it would be able to raise funds from the external market or not is something they cannot guarantee(Gibson, & Dibble, 2013). That means whether the company will or will not be able to take any expansionary policy, is uncertain and subject to risk. The company’s claim for a patent may not be recognized or partially recognized which again may harm the company’s interest(Hussain et al., 2021). Furthermore, the external factors are included below to analyse the chosen company's external environmental factors much more efficiently, where the PESTEL analysis has been used to depict the factors properly.
4D Medical is a part of the healthcare industry, and the government policy’s regarding the healthcare sector have a great impact on the company's performance. If the government's policy regarding the subsidies in the medical field or the pattern of government expenditure in the health care sector changes, it may have a positive or negative effect on the company accordingly(Hannila et al., 2022). Similarly, the change in GST (goods and service tax) in this field as well as the change in income tax law may have a severe impact on the company.
The global economy along with the domestic economy can affect the company’s performance. Besides inflation and exchange rate, the nominal interest rate plays an important role as the interest rate is the factor that determines the level of savings and investment in the economy, which eventually determines the real value of the company’s assets and liability, the number of funds the company will be able to raise through the share market, etc(ChairulAnam, 2020).
The company's performance may be affected by social and cultural beliefs and misinformation. If there are any cases of unexpected spread of rumour that is based on false information or belief and turns people around from seeking medical assistance, there may be a drastic shift in the demand for the products produced by the company(Hannila et al., 2022). The presence of unprofessional influencers on social media who are sharing information that has no scientific base is becoming a burning issue day by day.
The healthcare industry is highly dependent on the technological field. 4D medical uses SaaS technology in its production and bears a risk of technological supply error. There may be termination of their contract with their cloud supplier, and in case they are unable to find a new partner right away, the service provided by them may be disrupted(ChairulAnam, 2020). However, technological inventions and the country’s policies to develop the technological infrastructure will have a positive effect on the company’s performance.
4D medical dedicates its main focus on lung diseases and its vision is to create a world where people with lung diseases have “better outcomes and more hope.” Their field of attention has a direct connection with the environment (Bialowolski & Weziak-Bialowolska, 2014). With constant urbanization, pollution is increasing, accompanied by poor air quality. Besides, people's average exposure to harmful substances is increasing which increases the number of lung diseases and other medical issues(Hannila et al., 2022). While 4D medical provides an exact solution to this problem, it affects the company’s performance. On the other hand, the government laws about the environment and resource conservation will affect the company as well.
Another important factor that is directly related to the health care industry is the legal sector. The imposition of new laws or changes in the existing ones can play a crucial role in the company’s decision-making. The laws regarding HIPPA, healthcare employer’s liability, Patient safety, etc. are some key factors that directly affect the company. The company is liable for its production, and customers can take legal action against the company in the case of the emergence of an unexpected feature or defect in the product produced by them, which increases the company’s risk. Besides the changes in laws about administration, tax restrictions, energy conservation also impact the company’s overall performance.
The essay provides a piece of knowledge on the external environment of 4DMedical Limited, an Australian organization enlisted in the ASX. The essay successfully discussed the governance structure and the external environmental factors influencing 4DMedical limited. The essay provided a brief analysis of the challenges faced by the chosen organization, the business practices adopted by it, and their influence on its performance and decision-making. The essay also provided an insight on 4DMedical Limited’s functional departments and their contribution to the productivity of the company.
Aikaterini, G. N., Ioannis, S., &Vasilagos, T. (2019). Do external environmental factors affect strategic choice decisions of innovation?: The case of service organizations in a cross-cultural comparison. Journal of Transnational Management, 24(3), 185–230. https://doi.org/10.1080/15475778.2019.1633507
Apostolopoulos, Apostolopoulos, S., Makris, I., &Stavroyiannis, S. (2021). Rural Healthcare Enterprises in the Vortex of COVID-19: The Impact of Public Policies on the Internal and External Environment. Administrative Sciences, 11(3), 82–.https://doi.org/10.3390/admsci11030082
Bialowolski, P., &Weziak-Bialowolska, D. (2014).External Factors Affecting Investment Decisions of Companies.Economics.The Open-Access, Open-Assessment e-Journal, 8(1).https://doi.org/10.5018/economics-ejournal.ja.2014-11
Gibson, C. B., & Dibble, R. (2013). Excess may do harm: Investigating the effect of team external environment on external activities in teams. Organization Science, 24(3), 697-715.
Hameduddin. (2021). Employee Engagement Among Public Employees: Exploring the Role of the (Perceived) External Environment. American Review of Public Administration, 51(7), 526–541. https://doi.org/10.1177/02750740211010346
Hannila, H., Kuula, S., Harkonen, J., &Haapasalo, H. (2022). The digitalisation of a company decision-making system: a concept for data-driven and fact-based product portfolio management. Journal of Decision Systems, 31(3), 258–279. https://doi.org/10.1080/12460125.2020.1829386
Hussain, A., Jamil, M., Farooq, M. U., Asim, M., Rafique, M. Z., &Pruncu, C. I. (2021). Project Managers’ Personality and Project Success: Moderating Role of External Environmental Factors. Sustainability (Basel, Switzerland), 13(16), 9477–.https://doi.org/10.3390/su13169477
Maimone Ansaldo Patti, D., Mudambi, R., Navarra, P., & Baglieri, D. (2016). A tale of soil and seeds: the external environment and entrepreneurial entry. Small Business Economics, 47(4), 955-980..
RahimiZarchi, Jabbari, A., Hatam, N., Bastani, P., Shafaghat, T., & Fazelzadeh, O. (2018). Strategic Analysis of Shiraz Medical Tourism Industry: A Mixed Method Study. Galen, 7, e1021–e1021. https://doi.org/10.22086/gmj.v0i0.1021
Wang, Y. L., & Ellinger, A. D. (2011). Organizational learning: Perception of external environment and innovation performance. International Journal of Manpower. 32.5/6 :512–536.