Gunns Australia Business Report

The first 200 words of this essay...

Executive Summary

Gunns Limited are a forestry enterprise based in Tasmania, with market capitalization of $204 million. Gunns undertook a pronounced change of strategic direction in 2010, attempting to revitalize itself and ensure future success after poor recent social and financial performance. This strategic direction was not allayed into financial success in the following year, 2011, with a loss reported of $355.5m.

The purpose of this report is to examine the external business environment and its subsequent impact on the future performance of Gunns Limited through an analysis of each of the elements of the PEST model (political/ regulatory, economic, sociocultural and technological). Furthermore, this report will attempt to outline how Gunns Limited can use corporate social responsibility policies to increase the attractiveness of investment in the company.

The overall conclusion is that though past environmental factors have weakened the performance of Gunns, the moves to address these issues through a strategic rework are a positive step towards improved performance in the future.

Some limitations of the report include:

- Quality of sources.

- Historical data limitations.

- The inherent inaccuracy when predicting future performance.

Economic

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