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About the Organisation

Discuss about the Regionalization on the basis of Simcoa Operations Pty Ltd.

In business context regionalization is the process by which a company strategizes to deal with the management within the organization. The approach is taken from the concept of globalization, as the process is a condensed version. In this strategy the company effectively adopt regional or local strategies in order to achieve the corporate objectives of the company. This essay is going to focus on the concept of Regionalization on the basis of Simcoa Operations Pty Ltd. This is an organisation that is committed to produce the world's best quality silicon. The aim and objective of the organisation are as follows:

  • to achieve valuable customer relation by meeting the requirement of the company
  • to expand the business
  • to improve the product and service

The company not only supplies silicon in Australian market but also has a good network of exports. This has provided a wide range of possibilities for the company as there is already provision for the business to supply silicon in region where there is dearth of the mineral.

Simcoa was established in December 1989, the company has evolved since incorporation and currently the company has the potential of producing approximately 50,000 tonnes of high quality silicon on an annual basis. The structure of the organisation is in a company format and the base of operation is located in Kemerton, Australia (Simcoa.com.au, 2018). In the company there is a board of directors who take care of the management and the decision and policies of the organization. The manufacturing process is undertaken in a fully integrated silicon metal production plant in the world. The company has a major competitive advantage in the market in the global platform as being the sole producer of silicon in the Australia. The company follows the triple bottom line business model and is not only concerned about the growth and development of the organisation. They focus on the quality of their product and the objective of the organisation is driven by the rate of customer satisfaction. The company is focused on minimizing and reducing wastes, apart form that the company is also involved in other environment related activities (Simcoa.com.au, 2018). Not only that the company also has a section of community service as well. Thus it ensures that the company has achieved corporate objectives, societal objectives and environmental objectives. The organisation is managed by the board and a hierarchal structure is maintained in order to smoothly operate the functions of the business. The company has also been divided in several departments according to the function like manufacturing, finance, administration etc. This helps in keeping the operations of the business in a streamline process making it also less complicated. One major advantage of this kind of a structure is that the decision power does not lie in the hands of a single person (Simcoa.com.au, 2018).   

In order to understand the dynamics and the factors that impact the operations of the organisation can be understood with the help of SWOT analysis:

Strength

·         sole producer of silicon in the country

·         company structure of business

·         fully-integrated silicon manufacturing  plant in the world

·         Export operations with big economies around the world like US, Germany, Japan and UAE (Poulis et al., 2013)

·         The company deals in a product that has a very diverse usage for example silicon is used in cosmetics as well as in hardware items etc.

·         The company is a believer of the concepts of reuse and recycle which helps in reduction of waste and generate revenue with by products

·         It is a private company hence it enjoys some of the associated advantages  (            Schaltegger  & Wagner 2017)

Opportunities

·         The company has opportunity to expand the operations in the business in terms of export as well as base of operation

·         The company also have opportunity to diversify in other minerals as well

·         The company can also produce products with silicon base

·         The company also have scope to increase the scale of business in that case the company will have all the advantages associated with economies of large scale operation.

Weakness

·         Heavily dependent on the relations of the company with the government of the country in order to adhere to the necessary norms and conditions

·         Impacts the environment in a negative way

·         The workers in the plant work in a hazardous environment which pessimistically impacts the business reputation (Fischer  & Heutel, 2013)

Threats

·         There are no direct competitors in the Australian market

·         There is threat of new entrants and the innovations and values that the company will bring with it.


Political: The Company operates in Australia and has a stable government which encourages trade and business. The country also has good relations with the internal market which helps the company export (Khan et al. 2015).

Business environmental forces

Economic: As a sole producer of Silicon in the country the organisation has a significant role as import of silicon was one of the major mineral import expenses of the country before the organisation was established. The company supports the local small business units (Schaltegger et al., 2017).

Societal: the company employees people from around the base of operation which in turn helps in improving the standard of living among the people (Falkner, 2017). 

Technological: As mentioned above the technology has been one of the strength and is one of the major opportunities of the business. This modern plant uses the highest quality raw materials - low ash charcoal, coal and a high purity quartzite (Gupta, 2013).

The most common risk that is associated with the silicon production industry is health associated hazards. In the manufacturing units silicon dust is found in abundance has bad impact on lungs but these are not severe unless the exposure limits are high enough. Silicon may cause chronic respiratory effects. Silicon Dioxide or Crystalline silica is a potent respiratory hazard, it also irritates the skin and eyes on contact. Occupational exposures to crystalline silica exclusively quartz and cristobalite may lead to lung cancer as well. There are also environmental hazards associated with silicon production (Infante-Rivard et al. 1994).


As the company is the sole producer of silicon in the country there are chances that new entrepreneurs will want to invest in the industry.  This will increase the threat of the business and will also take away from the competitive advantage of monopoly that it had in the industry (Chang, 2016).

Business practices such as focusing on the performance enhancement of the company as well as the quality of the product helps the company in building and maintaining a valuable relationship with the clientele (Khanna 2015).  The company uses Total quality management practices in the organisation to keep up with the quality of the product and services. The company ensures that every step in the operation follows a proper quality check and methodology to ensure the quality is maintained and improved in the long run (Siva et al., 2016). In order to enhance the business practices the company should focus on the forecasts and implement corporate objectives in a clearer manner so that they can monitor the improvement in the process with the help of the objectives that they have set. The company focuses on improving the performance of the workers thus enhancing the skill and ability so that they are able to work in the integrated manufacturing unit (Jiménez-Jiménez et al., 2015).

Regionalization in the organisation generates from the fact that the company is focused on the enhancement and employment of the people in the area of operation. The company involves in activities in social and environmental development of the region of operation.  Simcoa is one of a small number of private enterprises directly employing more than 170 people in location where the company operates (Stroeva et al., 2014).

Conclusion

It can be concluded from the above discussion that Simcoa is an organisation that is driven by the objective of offering the clientele of the organisation with the best quality of the product. The company ensures that the operations of the business is based on the region of operation as the employees and all other activities of the company is based on the place where the company is located. As the sole producer of Silicon in the country, Simcoa runs a monopoly in the market

Reference list:

Chang, J.F. (2016). Business process management systems: strategy and implementation. CRC Press.

Falkner, R. (2017). Business power and conflict in international environmental politics. Springer.

Fischer, C., & Heutel, G. (2013). Environmental macroeconomics: Environmental policy, business cycles, and directed technical change. Annu. Rev. Resour. Econ., 5(1), 197-210.

Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment. Merit Research Journal of Art, Social Science and Humanities, 1(2), 13-17.

Infante-Rivard, C., Dufresne, A., Armstrong, B., Bouchard, P., & Theriault, G. (1994). Cohort study of silicon carbide production workers. American journal of epidemiology, 140(11), 1009-1015.

Jiménez-Jiménez, D., Martinez-Costa, M., Martínez-Lorente, A. R., & Rabeh, H. A. D. (2015). Total quality management performance in multinational companies: A learning perspective. The TQM Journal, 27(3), 328-340.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management, 3(6), 955-961.

Khanna, R. B., (2015). Production and operations Management, PHI Learning Pvt.

 Poulis, K., Poulis, E., & Plakoyiannaki, E. (2013). The role of context in case study selection: An international business perspective. International Business Review, 22(1), 304-314.

Schaltegger, S., & Wagner, M. (Eds.). (2017). Managing the business case for sustainability: The integration of social, environmental and economic performance. Routledge.

Schaltegger, S., Burritt, R., & Petersen, H. (2017). An introduction to corporate environmental management: Striving for sustainability. Routledge.

Simcoa.com.au. (2018). Home. simcoa.com.au. Retrieved 4 April 2018, from https://www.simcoa.com.au/

Siva, V., Gremyr, I., Bergquist, B., Garvare, R., Zobel, T., & Isaksson, R. (2016). The support of Quality Management to sustainable development: a literature review. Journal of Cleaner Production, 138, 148-157.

Slack, N. (2015). Operations strategy. John Wiley & Sons, Ltd.

Stroeva, O. A., Sibirskaya, E. V., Khokhlova, O. A., & Oveshnikova, L. V. (2014). Regionalization of the innovation management process. Life Sci J, 11(8s), 1097.

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