Business Case Essay Example

  • Category:
    Business
  • Document type:
    Article
  • Level:
    Masters
  • Page:
    2
  • Words:
    890

Business Case: Ansell Company

Business Case: Ansell Company

  1. SWOT Analysis

A SWOT analysis outlines the strengths, weaknesses, opportunities and threats to the company.

    1. Strengths

  • The company cultivated a quality and well-known brand having been established in 1893 and operationalized in 1905. This means it has extensive manufacturing experience in medical, industrial, and household gloves.

  • It has a wide local, regional and international customer base in three key segments: industrial, consumer and medical healthcare. It even supplies occupational and professional healthcare products to the United States (US) military after acquiring the Hawkeye Glove Company.

  • Financial strength — Revenue and sales for 2012 were reported to be US$1 million and US$ 1.2 billion respectively (Ansell, 2013). Sales were highest in EMEA (39 percent) followed by North America (35 percent), Asia Pacific (20 percent) and Latin America/Caribbean (6 percent) (Ansell, 2014).

  • A strong multicultural workforce of 10,000 people in North America, Caribbean and Latin America, Asia Pacific and the Europe, Middle East and Africa (EMEA).

  • Low labor costs due to its investment in advanced manufacturing technology and equipment. These advanced technologies enable the company to continuously develop innovative products, which meet the protection needs of consumer, occupational and professional healthcare markets.

  • Global recognition for manufacturing quality, reliable and superior performance brands such as GAMMEX, SKYN, HyFlex, ActivArmr, Medi-Grip and Encore ergonomic gloves. It is also known for producing 18 high-quality local and international condom brands and consumer products such as LifeStyles, Zero and Manix (Ansell, 2014).

  • Manufacturing facilities adhere to international standards such as the International Standards Organization (ISO) 13485-2003.

  • Strong international presence in more than 35 countries. The countries are geographically segmented as EMEA, Americas and Asia Pacific (APAC).

  • Commitment to social responsibility, the environment, health awareness and health education through the AnsellCares program

    1. Weaknesses

  • Low commodity prices affect company’s profitability

  • Ansell Ltd has not invested much in research and development for products in the three market segments

    1. Opportunities

  • There are opportunities for developing new products and services for the three segments. Opportunities in the consumer healthcare segment include the development of new brands of condoms and latex products.

  • There are expanding market opportunities for medical and industrial gloves in the healthcare, food manufacturing, construction, electronics, semi-conductor and food service industries in the international market.

  • Expansion into specialty markets such as sanitation, do-it-yourself, agriculture, auto aftermarket and the oil and gas industry

  • Competition from other manufacturers of barrier protection supplies including Kimberly-Clark Corporation, Abena A/S, Medline Indusries, Cardinal Health and Molnlyke Health Care.

  • Changing government regulations in the local and foreign markets

  • High cost of raw materials affect cost of operations and profitability

  • Price fluctuations in the commodity market and unstable forex rates

  1. Assessment of Business Needs

Ansell operates in three business segments: industrial, medical, and sexual health and wellbeing. The first two segments (industrial and medical) are primarily business-to-business (B2B) markets while the sexual health and wellbeing segment serves the consumer market (Ansell 2014). For the B2B market, the company has not established an online presence to facilitate business-to-business transactions. Companies in the industrial and medical segments have to place orders with Ansell Healthcare in the USA, Europe, Japan, Malaysia, Hong Kong and Australia branches. From the company website, businesses can purchase industrial and medical products from the branches via post mail, telephone, fax or electronic mail. The website provides email addresses for technical questions, distribution or order questions only for the USA market. The Hong Kong, Malaysian, and Australian subsidiaries do not have email addresses for businesses that transact online (Ansell 2014). In addition, there is no online platform, which enables industrial and medical businesses to login and transact directly with the company. The company website does not mention any online profile, which links the businesses to Ansell’s value chain to ensure it responds quickly and effectively to orders from the industrial and the medical business market.

  1. Analysis of Gap Between Current Situation and Stated Objective

There is a gap in the provision of services and products to the business market. Ansell Ltd has a good business-to-consumer model already. This model enables diverse consumers from different countries to purchase from the company through the Internet. Unfortunately, there is no B2B model for Ansell’s businesses markets. In addition, there is no specific content targeting businesses such as Ansell’s buying cycle, industrial and medical solutions for protective healthcare, white papers or case studies. Content such as analyst reports and articles on subject matter such as latex production and protective healthcare are also absent from the company website. In addition, there is no online platform, which enables industrial and medical businesses to collaborate in developing best practices, benchmarks, and industry surveys.

An ideal situation or objective would be to provide buyers with information to help them understand their needs, make informed decisions, and collaborate in developing innovative protective gear. Ansell could address this gap in three ways: do nothing, use third-party sites or develop a private marketplace. The first option involves maintaining the current situation the Ansell company works and doing nothing to change the Ansell’s commercial operations. The second option would be to adopt a third-party site such as eBay to receive online orders from businesses and place online orders with suppliers. The third option is to develop a private e-marketplace where Ansell can sell products to other organizations electronically.

References

Ansell 2014, ‘About Ansell’, Ansell Ltd, viewed 6 May 2014, http://www.ansell.com