Amcor Business Environment Analysis Report

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Amcor Business Environment Analysis Report

    Increasingly competitive is the whole world and much diversified are customers’ demands nowadays, the importance of a business environment analysis report tends to have been received global general acknowledgements and more attention will be paid to it in the approaching days or years to come. Why a business environment analysis report is so significant and will be put to a position that will only be on the increase but will never decrease is that it can help understand and master the operating conditions and other relevant information in this area, which in turn can provide references for the positioning of several regional commercial projects to be consistent with the actual market condition and in the meanwhile make solid preliminary foundation work for those projects in that it have completely grasped the market. In this essay, I’d like to present a business environment analysis report of my chosen company Amcor with one of the countries, Malaysia, with which it currently has operations.

    Detailed speaking, an analysis of significant changes in the business environment that may provide new opportunities or increase risks from doing business in Malaysia will be elaborated in the following, recommendations in response to changes in the business environment being put forward at the same time. Moreover, this will be a focused but informative and analytically sharp report with only those country-level conditions and any industry-specific issues that are relevant to my firm’s, Amcor’s, products and/or services being referred to due to the CEO’s far too busy schedule. Attention will only be drew on any changes in the business environment relevant to the firm and its products/services, such as the political environment, government regulation, commercial law, intellectual property issues, level and rate of economic development, demographics, policies on international trade and investment, environmental law, regional cooperation etc. What must be mentioned at last is that this report will mainly introduce current situations but not dwell on old or historical information that is long out of date and has no value for the business environment analysis report as any information connected with business environment is updated very quickly and is endowed with obviously temporal effectiveness, even sometimes out of the expectation of human beings themselves.

    With a brief summary of the report's contents being stated above, what come next in the list is the key recommendations for the CEO, namely, to seize every possible new opportunity to develop business and to avoid any potential risk that prevents the firm from doing business in that country. Only in this way can the business done in the specific country gains the maximum profit, the so-called maximization of enterprise profits, also the terminal goal of every existing company all around the world.

I. Introduction

    Amcor, the globally well-known Australian packaging giant and innovator with market-leading operations worldwide, dominates the whole European market for its innovation in creating a new world of packaging in that it comes out at the top of the honor roll not only in its supplied high-quality products but also the knight and first-rate services it insists from the very beginning till now and will also continue to the future undoubtedly. The packaging options Amcor, a multinational packaging leader whose origins are Australian but presence and future are global and diverse, can offer the broad masses of the public for their products are all-embracing and all-inclusive, covering and containing everything ranging from materials for industrial applications such as aerospace, agriculture, automotive, energy and insulation; packaging solutions for food products; packaging for household items; packaging for personal and home care products; packaging options for manufactures and suppliers of tobacco products; packaging options for beverages sold through retail outlets; packaging and supplies for hospital sterilization units; packaging for medical devices; packaging for pharmaceuticals to professional services for packaging design, materials and packaging testing and recycling services (Amcor Limited, 2014).

    Furthermore, it is innovating for a sustainable future and creating innovative customer solutions as well that are bound to protect the environment, the products and deliver better social outcomes, the source inspiring co-workers' thinking and driving their slogans (some of which are: get to know a global leader, be part of something great, open up a world of opportunities, be inspired to outperform, enhance everyday life everyday and hear from our co-workers) to actions: working with the REDcycle organization on a recycling initiative for flexible plastic packaging; reducing knife injuries at flexible packaging sites around the world through a simple innovation; helping identify practices to improve the sustainability of coffee growing; embracing a new way of working to harness the power of co-workers all over the globe and driving innovation in Asia with the Amcor Innovation Packaging Contest (Amcor Limited, 2014). Talking about its investor relations, the subheadings are rundown one by one as follows with minute information engaged: Demerger of Amcor Australasia & Packaging Distribution (Orora) business, Investor Calendar, Media release and announcements, Shareholder Information, Fixed Income Investors, Latest Stockbroker’s Forecasts and Reports & Presentations.

    The brilliant achievements Amcor get since its foundation is greatly owing to its staff being passionate about possibilities and believing in responsible packaging with arts and science being applied relentlessly to enhance the products people use in daily life. They hope to see the packaging moments that matter when human beings touch and use their packing: when a consumer opens a bottle, unwraps a pack, or tears open a pouch, they know their products are fresh, clean, safe and secure. Their permanently being committed to supporting and developing their co-workers plays an inevitable part in turning their success into a reality equally.

    A brief overview of Amcor’ products and services being carefully expounded above, then the engagement of Amcor in Malaysia and Amcor’s significance to Malaysia will be totally explained. As far as I'm concerned, Amcor can be regarded as a whole-rounded packaging manufacturer for all industries and all products in Malaysia as long as it can provide. In other words, Amcor is one of the sources of inputs in the whole process of the sales of the products in Malaysia to aid in the economic growth in the required country, while Malaysia on the other hand can be deemed as a final market where the packaging services can be performed or outperformed in order for the improvement and facilitation of the services of this appointed firm.

Therefore, the purpose of the report is to conduct an analysis of significant changes in the business environment that may provide new opportunities or increase risks from doing business of Amcor in Malaysia and followed by recommendations in response to changes in the business environment being in the meantime for the CEO to seize every possible new opportunity to develop business and to avoid any potential risk that prevents the firm from doing business in that country, reaching the so-called maximization of enterprise profits in the end. Here comes the main structure of this essay: Chapter 1 deals with the purpose of this report and also a brief overview of Amcor’s products and services and engagement in the chosen country Malaysia and significance to the firm Amcor. Chapter 2 mainly concerns the analysis of the business environment in Malaysia with any major or potential change in the business environment that may give rise to opportunities and/ or risk to the firm's revenues, profits, assets, security etc. Chapter 3 offers some overall assessments on whether the business in the chosen country will improve, worsen, or remain the same in the short-term (next 12 months) and in the long-term (over the coming decade) with the key factors being depicted as well. Chapter 4 provides the CEO with recommendations on what the firm should do to capitalize on any positive changes in the business environment, how the firm should mitigate or manage new risks that may threaten the firm's operations in that country and whether the firm’s operations should be scaled up, down or remain the same in the near future.

II. Analysis of the Business Environment in Malaysia

    This part will chiefly be the detailed analysis of the business environment in Malaysia with any major or potential change in the business environment being analytically assessed that may have the potential impacts on the firm, only factors that are potentially relevant to the firm and its products/ services being taken into consideration: social and cultural environment, political and legal environment, economic environment, trade and financial environment, infrastructure and other issues, maybe just some of which will be analyzed because of the limitation of length in text and the difficulty of conducting research from my point of view.

     First and foremost, the economic environment in Malaysia will be analyzed at length. In the past, Malaysia’s economy was solely based on agriculture on which most people made a living and it was individually dependent on the export of primary products, thus in this condition the demands calling for the products and services of Amcor was very low or even worse, none probably. Later with the rapid development of economic and technological globalization, it began to continuously adjust its industrial structure and vigorously promote the export-oriented economy under which the electronic industry, manufacturing industry, construction industry and service industry gained unprecedented breakthrough in the rapid development. The transformed industrial structure in Malaysia seemed to look upon manufacturing as its largest production department, hand in hand in joint development with automobile industry, mining industry, tourism, agriculture, forestry and fisheries industry and other related industries. Also, the implementation of the “new economic policy” in this phase aiming at realizing the goals of eliminating poverty and reorganizing society, with the assistance of the successive projects such as the cross-century development strategy “Wawasan 2020”, “Multimedia Super Corridor”, “Biological Valley” and the tenth five-year plan whose theme is “economic prosperity and social equality”, help smoothen its high speed of economic growth. The economic growth also comes from a series of policies like the stability of the exchange rate, the reorganization of the bank enterprise debts and the expansion of domestic demand and export, aligned with a number measures taken to stimulate the economy transition and the increase of domestic demand. We can easily draw a conclusion that such changes in the economic environment in Malaysia will definitely give rise to the firm’s revenues, profits, assets, security etc more or less and sooner or later.

   With the economic environment being talked about above, what comes second to the list is the social and cultural environment. The total population of Malaysia is 30,000,000 with a high level of human development index of 0.719 (year 2012), among which 55% are Malays, 24% Chinese, 7.3% Indians and the rest 13.7% people of other races through immigration or intermarriages (BBC NEWS, 2014). The life expectancy of female is slightly higher than male and the population distribution is extremely uneven between the west and the east. Though those Chinese and Indians live in Malaysia together with other Malays, they have no access to some rights just because of the different color of skin, which caused the great decrease gradually of people from other countries to a large extent. Such decrease was further facilitated under the influence of birth control and other economic factors indiscriminatingly. However, the people on the decrease are just the dominant community in the economic and commercial aspects and form the majority of the enriched traditional culture there. The number of different kinds of people being deduced, the products and services provided by Amcor will accordingly deduce in a certain sense and directly result in the diminishment of the firm’s revenues, profits, assets, security etc in the long run.

     Last but not the least, what does matter a lot is the trade and financial environment in Malaysia. It has unswervingly followed an independent, neutral and non-aligned foreign policy and it put high premiums on developing relations with big powers with more and more communications with other member countries in the Commonwealth. After it became a member of the United Nations in September 17^th, 1957, it is now devoting major efforts to carry out economic diplomacy and defend the territorial integrity and sovereignty by condemning the trade protection in western countries and objecting the western hegemonism and power politics. In addition, it also object the use of “democracy” and “human rights” to interfere in other countries’ internal affairs but claims to maintain the United Nations as the status of international core organization, to pay attention to the problems of establishing a new international political and economic order and to support the international anti-terrorism cooperation in that it holds the view that anti-terrorism should address the root that causes the terrorism so that it can promote the dialogue between religion and civilization. In such a healthy trade and financial environment here, it is our common sense the firm’s revenues, profits, assets and security etc will absolutely go up due to the acceleration of other friend countries.

III. Overall assessment on how the above three key factors will turn

    This chapter will basically concentrate on an overall assessment on whether the above three key business environments, the economic environment, the social and cultural environment and the trade and financial environment will turn: improve, worsen, or remain the same in the short-term (next 12 months) and in the long-term (over the coming decade). In the short-term (next 12 months), separately, the economic environment and the trade and financial environment will both improve due to the benign development it has always been from the very beginning to the very last; while the social and cultural environment will still remain the same in the next 12 months as the time span is too short for it to get any improvement as the local people and the government regulations there didn’t realize this problem so they will make no efforts to change such condition.

    Nevertheless, in the long-term (over the coming decade), all the above three key factors will all turn to change into the good direction, which is to improve better and better step by step through endlessly drawing lessons from the past and correcting it in the next practices, therefore the next practices will be refined and consequently the firm’s revenues, profits, assets and security etc will keep going ascending ever since, realizing the maximization of enterprise profits in the end.

IV. Recommendations provided to the CEO

    Speaking of the specific recommendations provided to the CEO, it will undoubtedly be to seize every possible new opportunity to develop business and to avoid any potential risk that prevents the firm, Amcor, from doing business in that country, Malaysia, reaching the so-called maximization of enterprise profits in the end. To put the theory into practice, that is to take advantage of the current beneficial economic environment and trade and financial environment to do business and spread its products & services all around the whole country in Malaysia; while on the other hand, to change the present situation of doing business there as it is not favorable for the products and services of Amcor to get wide popularization there with the social and cultural environment being considered.

At the final last of this report, I just want to express my sincere hopes and heartfelt gratitude that all the co-workers in this firm, Amcor, can dedicate themselves to the modern development of the company to make it “swifter, higher and stronger”, as one of the Olympic tenets in history has said.

References

1. Amcor Limited, (2014), Products & Services. [Online] available from: http://www.amcor.com/market_solutions/.

2. Amcor Limited, (2014), Sustainability at Amcor, [Online] available from: http://www.amcor.com/sustainability/amcor_sustainability.html.

3. BBC NEWS, (2014), Malaysia country profile, [Online] available from: http://www.bbc.com/news/world-asia-pacific-15356257. [Accessed: 25th March 2014]

4. Worldwide Factories, (2014), Malaysia bbc- offers from Malaysia bbc manufacturers, suppliers, exporters, wholesalers & distributors, [Online] available from: http://www.gongchang.com/bbc-ksp-129/?shownum=20&promode=1.

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