Sample MGT605 Business Capstone Project Report 2

MGT605 Business Capstone Project Report Sample

Context:

This subject allows the student to synthesise the knowledge and skills gained from all other subjects studied up to that point. The main deliverable in the subject is a major project. In this second assessment, the student will submit their final report.

Instructions:

This report is a succinct piece of your work. It augments your final presentation with the main outcomes of your project and contributes to your ongoing practical or theoretical excellence in your chosen field. The final report should be written in a professional business report format which also adheres to academic writing conventions.

Structure of the report

You are required to produce a business report which adheres to academic writing conventions. The following format is suggested.

Cover page – provide a cover page with identification information including, your name, the subject and code, the capstone project title, date, word count, etc.

Executive Summary – a 300-word overview of the entire proposal. Be careful not to use the Executive Summary as an introduction only. An executive summary provides a succinct summary of the content within the report. It presents information in such a way that readers are able to understand the intention and key elements of the report without having to read the entire document.

Table of Contents – remember to include page number. It is advisable to learn how to automate the Table of Contents in whatever word-processing application you will use to write your Assessment.

Context – introduction and background information including a description of the country, the industry, the organisation (case unit) and the problem or opportunity. The introduction sets the scene and provides context for the aim. It provides background to the issues being addressed only.

Aim/purpose of project – the specific aim of the capstone project is to identify the problem or opportunity and to summarise what your project intends to achieve. The aim/purpose statement must be short and stated within one or two sentences at most.

Theoretical overview – this section discusses the concepts/theories/models/frameworksthat relate to your project. These concepts/theories/models/frameworks must be those that you have applied in your capstone project.

Method – this section briefly explains how the project was conducted including data collection and analysis. It is not expected that the method section be as detailed as it was in the project proposal. Remember that primary data is not to be used in this capstone project without prior approval from your facilitator.

Solution

Introduction

Procter & Gamble is a US-based multinational company that provides consumer and personal care products. In Australia, P&G employs around 140 staff. The headquarter of P&G Australia is situated in New South Wales(IBIS World, 2021). In Australia, P&G sells a variety of personal care and consumer products like feminine care products (Tampax), baby care products(Pampers), hair care (Head and shoulders, Pantene, Hair recipe), home care products (AmbiPur and Fairy), hair care products, grooming products(Venus, Gillette and Braun), skin and personal care products, and health care (Vicks, Oral-B, Align, Clearblue, and Meta)and skin products (Old spice, Olay). P&G Australia is home to several billion-dollar companies like Oral B, Olay, Pantene, Vicks and so on. For Assignment Help P&G entered the Australian market in 1985. The retail industry in Australia is one of the main contributors to the economy of the country. In 2019 the total turnover in this industry was almost AUD 329.6 billion. It was nearly nine billion AUD more than the previous year. The hit of the COVID-19 pandemic made several changes in the retail industry in the country. Australia is known as one of the most developed urbanised countries In the world. It has several advanced urban centres like Melbourne, Sydney, Perth, Brisbane and Adelaide. There are several other towns in this country. Factors like high brand awareness rate, the trend of influencers and the internet advertising for the products like footwear, baby care products, home products, personal skin care products and several others are enhancing the consumer good retail industry and generating more revenues in Australia (Mordor Intelligence, 2021). The retail industry of Australia has a great diversity by region, size of business, nature of goods, retail format and competition within the industry. Online retailing and e-commerce is the latest trend in the retail industry of the country. In Australia, retailers need to follow several regulatory policies which restrict their ability to innovate and compete. The country is connected with several organisations like the G20, the World Trade Organisation, the Commonwealth of Nations and so on. The government of the country is very transparent and supportive of the retail industry. Australian government addresses the economic challenges of the country and develops the existing policies. Australia is one of the largest economies in the world. Foreign companies use the country as the headquarters for its political and economic stability. Technological innovation in the country is very advanced and developed. But there are issues regarding research and policies of technology in the country (Frue, 2021). The Australian government is very much concerned about environmental sustainability. In 2018, Environment Ministers of Australia announced that all packaging of Australia needs to be reusable by 2025 (Australian Retailers Association, 2018). The Australian government employed the APCO ( Australian Packaging Covenant Organisation) to make this target possible within 2025. The packaging in the retail industry in Australia follows the reusable packaging process.

Purpose of The Project

The aim of the project is to identify the importance of analysing the external environment and its impact on the internal environment in business. For this, the case of Procter & Gamble is being chosen for reference. External factors like political, economic, social, technological and environmental factors will be analysed for understanding the external aspects of P&G in the Australian market. The objective of the project is to identify the issues and opportunities of Procter & Gamble in the Australian market and to examine the importance of the external environment and its effects on the internal environment.

Theoretical Overview

For conducting the project, a PESTEL and SWOT analysis of P&G Australia will be performed. PESTEL stands for political, economic, social, technological, environmental and legal factors. It is a type of strategic analysis framework that is used to examine the external environment of an organisation or business by analysing the risks and opportunities of those factors (P- political, E- economic, S- social, T- technological, E- environmental and L- legal ). PESTEL Analysis is instrumental in making strategic planning of the corporate business. The political factors include tax policies, tariffs, bureaucracy and trade restrictions; economic factors include economic growth rate, exchange rate, interest rate, unemployment rate and inflation; social factors include health consciousness, age distribution, career attitudes, population growth rates and cultural perspectives and aspects, technological factors include automation, changing rate in technology, R&D Activity and technological incentives, environmental factors include temperatures, pollution, climate change, natural disasters and weather condition, and legal factors has labour laws, licenses and permits, intellectual property and industry regulation (CFI, 2021). A SWOT model is also very beneficial to identify the strength, weaknesses of the internal business environment (Phadermrod, Crowder and Wills, 2019). PESTEL Analysis has 2 main functions for a business or company (Yüksel, 2012). Firstly, it helps to identify the environment within which the organisation is operating its business. Secondly, it provides information and data related to the potential risks and opportunities of an organisation. PESTEL Analysis of the company will give the external factors that can affect P&G’s internal environment. It will help to find various recommendations to implement within the company. SWOT analysis (S- strength, W- weakness, O- opportunities, T- threats) is a strategic analysis framework that assesses an organisation by its strength, weaknesses, opportunities and threats. Albert Humphrey is credited historically for this framework, but his attribution to this framework is debatable. SWOT analysis is also known as the SWOT matrix, which helps establish and differentiate a niche within a broad market (Teoli&An, 2019). Strengths and weaknesses are the internal factors of a business, including intellectual property, patents, team and location of the company (Parsons, 2021).

On the other hand, opportunities and threats are the external factors of a business including, raw material price, consumer shopping trend and competitors. By implementing a SWOT analysis of the company, the current status of P&G in Australia will be clear (Medium, 2020).SWOT analysis of the company will help to understand the status of the company and help to evaluate required recommendations, which will help the company to grow.

Methodology

Data collection process

Data collection is one of the essential steps in the research, and it is regarded as in the introductory phase of the study (Olsen, 2012). It is the provision of collecting data analysed by the researcher to formulate hypotheses, resolve a specific problem or arrive at any conclusion. The data accumulated must be reliable and ethically sourced. There are two methods of data collection: Primary and Secondary. Here the data collection is relied on secondary method. Secondary method data generally provided information on the topic that already been researched before. Giving information on the matters and refereed theories and hypothesizes of previous researcher whereas primary data take information from directly from participants. There are various sources of secondary data such as books, journals, newspapers, internet articles, records, databases and research articles by other researchers.

Secondary data will be used in this study. Several relative decisions can be made during the usage of the secondary approach, which will emphasise the research work (Chappell, 2018). Appropriate and relevant secondary data will be accumulated to assess the impact of the external environment on the internal affairs of P&G company. The qualitative data helps analyse and evaluate any situation and understand its aspects(Vaismoradi, &Snelgrove, 2019). Around eight sources will be collected and analysed in detail. The inductive approach will be followed to generate meaning from the secondary data. This approach will help to narrow the premises and to achieve a specific outcome.

Data Analysis

Thematic data analysis will be applied in this study. Thematic data analysis is poorly defined but one of the most used approaches, which is mainly associated with pattern identification and its reporting towards the researcher (Lochmiller, 2021).Thematic analysis is the process of recognising behavioural patterns from the secondary data. It is a qualitative method that is flexible and can be used for various types of research purposes (Brulé, 2021). The data accumulated will be thematically analysed to supplement the understanding of the issue.

Analysis and Findings

Influence of government policies on the internal business of P&G

Government policies can influence the workings of a business. The government also faces the challenges to implement policies that will help the company and contribute to its growth. In Australia, there are several laws that ensure the stability of the businesses and also ensure the scope of equal opportunity (Referred to appendix 1). The country has a national statutory framework that looks after the policy of fair trade (Austrade, 2021). It ensures that the approach is applicable to the companies and customers alike. The whole system is supervised by and enforced by the Australian Competition and Consumer Commission. Fair trading offices are located in every state or territory that guides the companies on this particular matter. The companies can seek advice in case of any dispute. There is also a product liability regulation framework, another statutory framework, that ensures that no harmful products are manufactured and sold in the market. It also checks if the products are of standard quality.

These two policies influence the internal operations of the P&G company. The American multinational company has easy access to Australia's market due to the country's fair trade policy. The company is able to advertise its products to consumers aggressively. The company has not faced any discrimination because of the policy. It can formulate strategies customised for the Australian market and increase its sales in the country without any strict intervention. As the company deals with products related to personal care and hygiene, the company needs to ensure the products are of standard quality. The country has a strict framework that provides the quality of the products. The company should manufacture products that are approved by the government. It is the responsibility of the company to assess the effects and maintain its standards.

Impact on the external environment on business process

Australia is a country that focuses on innovation and research. It invests in the development and production of new kinds of technology that have the potential to enhance the whole manufacturing process of businesses (Referred to appendix 1). Australia also has a large skilled workforce who are trained in using the latest technology. Australian technology can help in making the production process fast and optimum. The country has cyber solid protection laws that protect personal information. Australia also has stringent environmental laws to protect the environment. The country has several regulations regarding the environment (Referred to appendix 1). The laws emphasise reduced environmental pollution, wastes and less use of water. The counter has developed the Carbon Farming Initiative that allows the landowners to earn carbon credits by reducing greenhouse gas emissions.

To operate in Australia, the P&G company has to follow the environmental regulations and adhere to them. The company has to adopt new advanced technology to minimise carbon emissions. Advanced technology will also help in optimum utilisation of raw materials, thus reducing the operational cost. The company can also differentiate and improve the products to attract customers.

Government support in doing business

The Australian government has different policies that help in establishing a business in that country. The government has set up a dedicated online government portal to facilitate the operations of companies. It provides all the resources about establishing a business. The portal not only provides information about the government policies but also provides advice to new companies. They offer tools and techniques to initiate a business and help in making plans and also formulating strategies. The portal guides the businesses and allows them to find grants and assistance provided by the government. They arrange events and training programs to engage the businessmen. As it is an initiative of the government, it is credible and trusted by many. The portal has social media pages that can be used to expand the reach of the business.

The P&G company can get access to these resources and incorporate them into their business. It will help the company to maximise its reach with the help of social media platforms. The information provided in the portal can be used to identify the external environment and formulate strategies based on that information. The information is updated and reliable. The company can also take the help of Covid-19 grants that are being provided by the Australian government.

Penetrating market by complying with government policies

P&G company wants to expand its video in Australia (Referred to appendix 2). The company has surveyed the country and has realised the potential of the market. Australia is a developed country where the people are well enough to afford the company's products (Referred to appendix 1). The political and social conditions of Australia are favourable in initiating a new business. There is political stability and a government capable of providing financial assistance to businesses. The country already has a fair trade policy which will help in initiating the business. The regulations of the government are also appropriate and effective. They encourage the existing business and support the new businesses. P&G company has readily accepted the regulations of the Australian government. It ensures that the products that are manufactured reach the projected standard. Also, no harmful raw ingredients are used in the making of the products. The company also has a high CSR, which indicates that it is successfully trying to reduce its carbon footprints in the environment (Referred to appendix 1). Adhering to all these regulations creates a positive brand image and attracts more customers. Analysing the impact of the external environment on a business can help a company achieve economic growth and gain a competitive advantage.

The fast-growing economy of Australia supports business organisations to expand their business (Banco Santander, 2020). To have an understanding of the impact of the external environment on the businesses, two analysis tools are used. The PESTLE analysis framework is defined by the political, Environmental, Legal, Socio-cultural, Economic, Technological (Marmol et al. 2015). The other one, the SWOT framework, is used to have an overview of the issue. The SWOT analysis helps to figure out the specific practice set which will give a competitive advantage (Gurel& Tat, 2017).Application of PESTLE analysis provides information about the political, economic, sociological, technological, legal and environmental scenarios of Australia. Analysis based on this information reveals that the external environment of Australia has a positive impact on the P&G company. The PESTLE framework helps ascertain the influence of the external business environment on a business (Tan et al. 2012). There are several government policies that are beneficial to the company. The company can benefit from the fair trade policy of the government. The policy pertaining to the standard of products can help the company to maintain the quality of products. The advanced technology that is available in the country can help the company to optimise its production process. The advanced technology can also enable the company to reduce the amount of carbon emitted into the environment. The government has a dedicated portal that furnishes government policies, grants and associations to emerging businesses.

Conclusion

The project evaluates the external factors of a business and its Impact on the internal environment of a business with the reference of a P&G company in Australia. The strengths and weaknesses of the company have been analysed with SWOT analysis, and the business environment of the company In Australia has been presented through PESTEL Analysis. SWOT analysis helps an organisation to do strategic planning (Phadermrod, Crowder & Wills, 2019). The PESTEL Analysis of a company provides the political, economic, social, technological, environmental, legal implications of a company (Zahari, &Romli, 2019). The external factors have a positive impact on the company. The government policies of the country are beneficial for the company. The fair trade policy of Australia can also be helpful for the company. The advanced technology in Australia is helpful for the company. It also can reduce the emissions of the company. The government of Australia also has a dedicated portal that provides information about government grants, policies which helps the company to enhance their profitability in the country. P&G maintains a dominating marketing presence in Australia. The company prioritises their strengths in the Australian market and focuses on its opportunities in the Australian market.

Recommendation

Despite having several risks in the external business environment, the market position of P&G helps to achieve resilience. The company has a high level of competitiveness and has several competitive advantages in Australia. Despite these advantages and strengths, the company needs to develop measures to address the external threats. Competitive rivalry is one of the most vital threats of P&G in Australia. The company needs to focus on building competitive advantages by implementing advanced technologies and innovative approaches (Thomson, 2017). P&G needs to address the importance of e-commerce in today's digitised business atmosphere. The company must expand its e-commerce business operations throughout the country. P&G needs to broaden its diversity more by entering into new industries.

Hence, the Australian government is very concerned about the environmental issues, P&G needs to address the ecological problems of Australia. The company must develop their environmental management in an advanced way. The company must aim to reduce energy consumption and control emissions, and use water efficiently. The company can increase the use of alternative energy sources in their business. Developing efficient energy finance is very important for efficient energy management. The company must focus on their waste management process efficiently with their raw materials and at each step of the manufacturing process (Business, 2021). In Australia, state, local and federal governments cooperatively administer the environmental laws. The company is recommended to choose greener equipment infrastructures (Fournier, 2017). The company also can choose suppliers who are sustainable. It will upgrade their corporate social responsibility operations. P&G must push the local government of Australia to take initiatives addressing climate change issues. It will help to establish a good image for the company. P&G needs to develop their business strategies and corporate social responsibility operations in accordance with the environmental laws of the country. The company needs to be more reactive to regional, local needs than global needs (Brain mass, 2021). It is recommended that the company must support strategies to enhance creativity, innovation and risk management. P&G must invest in long-term assets like technology more in order to reduce the technological threats. The company must partner with local companies of the country (Teeboom, 2019). A proper local partner will guide the company with the cultural expectations and the local regulations of the country, which can enhance the performance of the company.

References