This report brings out a discussion on CSR limited. The company was introduced in 1885 and incorporated in 1887. Currently, the company operates 91 corporate family connections including 40 subsidiaries and 50 branches. This report highlights the analysis of financial statements and has used some parameters to analyse the performance of the organisation. The analysis discusses about the nature of the company`s operations, any relevant changes in CSR `s operation, application of corporate strategy, profitability of the industry related to the company, and some of the fundamental reasons for certain changes in the level of profitability. At last, the report shows the application of effective corporate strategy in order to analyse the potential costs and other benefits of the competitive strategies that actually CSR have adopted.
1.CSR limited is an Australian industrial corporation that produces building products with 25% share in Tomago aluminium smaller that is located near Newcastle. The company was originally founded as a sugar company in 1885 and by the time, CSR has proved a consistent return and also strong cash flows (CSR limited, 2018). In order to develop a diversified portfolio, CSR is a leading supplier of products to commercial and residential constructions that has been further supported by nationwide distribution network. With the renowned name of Australia`s largest producer of raw sugar, Apart from this, CSR has seven-mills that are situated in some of Australia’s most productive region of sugarcanes. The company is well known for its most reliable and recognised brand to provide certain building products for commercial construction and residential. The company is a leader in bearing load for permanent framework solution for internal and external concrete walls. The company operates at low manufacturing cost facilities with strong distribution network to provide services to the customers across Australia and New Zealand. As these products come from CSR, the customers ensures that they have produced to comply with the relevant building standards and codes (CSR limited, 2018).
The company is continuously trying to invest in research sector that develops new products in order to help and meet some of the important construction challenges. Certain products such as energy efficient Bradford insulation and lightweight Hebel, which can make homes in Australia more efficient in terms of energy. The company endeavours to undertake the development of more innovative products in the whole portfolio of services and products offered in order to target the building of future. The company has joint ventured with globally competitive tomago aluminium smelter. Apart from this, over the last few years, CSR limited generated additional earning from the property division that focuses on increasing and improving the financial returns by developing surplus former manufacturing sites and lending industrial land for sale. In present days, CSR limited continued to improve the sustainability of the operations by making sustainable progress in energy efficiency, performance of buildings, homes and progress related to energy efficiency (CSR limited, 2017).
2.The residential, commercial, and all other constructions account for 20% of Australian`s greenhouse gas emissions. Finally, CSR played a sustainable progress role in ensuring that in Australia can deliver 26-29% reduction in the emissions between 2005 and 2030. With the advancement in technology, development of building science is the brief study of behaviour of buildings in regards to climatic and certain operational inputs by usage of scientific experience and knowledge. It is important to understand to analyse the heat, moisture, air and across building materials. Good understanding among the employees ensures that Australian buildings that can further deliver comfort, efficiency, and resilience (CSR limited, 2019).
CSR limited aims to focus in order to build shareholder`s values by investing in the existing business and growing the business that operate in an sustainable manner. While looking at the performance of the company, it is seen that CSR limited is one of leading Australian diversified company with operations such as building, sugar, property, and Aluminium. Some of the important competitors of CSR limited are Boral limited, Fletcher Building limited, and HeidelbergCement AG.
(Source: Simply Wall St, 2018)
From the above analysis, it can be seen that the P/E ratio of the company is very low when as company generates only 11.1x that is lower than the industry peers. This has implied that investors are underlying each dollar of CSR meetings (CSR limited, 2009).
While analysing the profitability of any organisation, it is important to calculate the ratios which all the related market share concerns of the country can be compared in order to see the scopes of improvements. From the above science of technology that help, the organization to remain to is of their growth. For the last 10 years, the pricing of the company is 22% on the first day. Other consideration help in such a way that initially it shows operating profits for the 1syear, the part to decide where to stand in a way so that operating income of company can be evaluated properly. Further profitability has affect the market share of the organisation, cost of production it carries, high competition, brand image, economic growth, and exchange rate. The greatest opportunities available to CSR limited can generate huge amounts of money and retain its market share but now he is suffering from his personal issues.
From the above diagram, it can be said that in the initial stage of establishments, the profitability of organisation has been decreasing in the last few years. In order to attain huge profits, it can be said that negative return in the year of 2009, 2011, and 2013 can be overcomed by expansion of diverse products in different countries as its offering is limited to New Zealand and Australia.
The profitability analysis of the organisation reliefs from high interest loans just to fill the competitiveness of the organisation. For the recent years, the company come across the slow movement of profitability growth, as there can be some adjustments to expand the products in different countries by offering the new services according to the companies of grabbing the international market (CSR limited, 2016). As there are many factors that affect the profitability of the companies working in the same industry such as strength of the demand, state of economy, Advertisement, substitute goods, economies of scale, dynamically efficient, objection of different firms, exchange rates, potential management, price discrimination are some of the important factors that affect the profitability of the organisations (CSR limited, 2015).
References
CSR limited, (2009) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/sustainability-reports/csrsustainabilityreport2009.pdf?la=en&hash=6E9BCACEA1CBD5AE79E4682DE3A57E72CE3E8149 [Accessed on 28/03/19]
CSR limited, (2012) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2012_annual-report-for-31-march-2012.pdf [Accessed on 28/03/19]
CSR limited, (2013) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2013_annual-report-for-31-march-2013.pdf [Accessed on 28/03/19]
CSR limited, (2015) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2015_annual-report-for-31-march-2015.pdf [Accessed on 28/03/19]
CSR limited, (2016) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2016_annual-report-for-31-march-2016.pdf Accessed on 28/03/19]
CSR limited, (2017) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2017_annual_report_for_31_march_2017.pdf [Accessed on 28/03/19]
CSR limited, (2018) Annual report. Available on: https://www.csr.com.au/-/media/corporate/files/annual-reports/2018_annual_report_-for_31_march-2018.pdf [Accessed on 28/03/19]
CSR limited, (2019) About US. Available on: https://www.csr.com.au/building-knowledge/building-science [Accessed on 28/03/19]
Simply Wall St, (2018) Does CSR Limited’s (ASX:CSR) PE Ratio Warrant A Buy?. Available on: https://simplywall.st/stocks/au/materials/asx-csr/csr-shares/news/does-csr-limiteds-asxcsr-pe-ratio-warrant-a-buy/ [Accessed on 28/03/19]
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