Topic: AGL Energy LTD (AGL)
Task -1 : Investigation (600 Words excl. reference)
Investigation focuses on the current competitive strategy responses of your chosen company within a particular industry. The specific question of the assessment is: Informing a particular stakeholder group of society (for example, shareholders, bankers, managers, environmental accountants…), prepare an Accounting Research Project Report that provides an analysis of a listed Australian company of your choice, taking into account its competitive strategic responses.
A financial analysis of an organization should be undertaken in the context of the organization’s environmental, economic and social and political settings. In this regard, Otley (1980, p.413) states that “the contingency approach…is based on the premise that there is no universally appropriate accounting system which apply equally to all organizations in all circumstances. Rather, it is suggested that particular features of an appropriate accounting system will depend upon the specific circumstances in which an organization finds itself.” Chenhall (2003, p.127) similarly observes that accounting research has paid increasing attention to the need for the designs of accounting systems to suit the nature of the environment, technology, size, structure, strategy and national culture. “
REQUIRED FOR INVESTIGATION:
Select a listed Australian company of your choice. Refer to your chosen company’s Annual Reports and information from other sources and other readings. Analyse critically the different industry sectors in which the company operates in. Explain fully the company’s competitive strategic responses to the characteristics of its industry/industries and its contextual variables and how such competitive strategic responses may influence its annual financial reporting.
Your report may include but not limited to the following issues:
l Identify the industry/industries and the contextual variables in which the organization operates in.
l Analyse critically the characteristics of the industry/industries. l Analyse critically the contextual variables which affect the industry/industries and the company.
l Analyse critically how and why the organizations has responded strategically to the characteristics of the industry/industries and the contextual variables you identified above.
l Discuss fully how and why company’s strategic responses may influence its annual financial reporting.
l Provide evidence-based analyses and conclusions.
l Demonstrate application of discipline knowledge.
Research Project Report Format:
The assignment must be:
l in 12-point Times New Roman font l single-spaced with 1-inch margins, l printed single-sided in A4-sized paper, and l use paragraphs (not dot points).
The maximum number of words for your answer for Investigation (Part One) is 600 words (word count is inclusive of tables and figures but excludes references and appendices).
Do not exceed the word limit or use inappropriate formatting such as using smaller font size, 1.5 line spacing, or narrower page margin, etc. Note that it is the quality, not the length of the report that determines the grade of the assignment.
All your references must be properly cited in your content and included in the reference list at the end of report.
Hints: This assignment can be prepared in following format (collected from previous students assignment) but not limited to. Can be changed any part or added extra.
- Introduction (Not too much)
- Characteristics of selected Industry (porters 5 forces can be applied)
- Analysis of contextual variable
- Strategic Response
- Indication of annual Financial reporting
Task -2 : Case Study (400 Words excl. reference)
Task -3 : Research Report (1000 Words excl. reference)
AGL Energy Limited (AGL) comprises of a collection of companies in Eastern Australia that deal with the production and distribution of energy products and services. With over 17 decades of experience, it has provided service to about 3.7 million customers within its location. It also prides itself in the significant development of green energy using renewable energy such a solar power. Other renewable energies include the wind, hydro, and thermal. Subsequently, it allows other companies and households to save up on costs, while enjoying the benefits of electricity and gas. The paper below conducts an accounting research project on the enterprise.
Porter 5 Forces
Conferring to Porter’s 5 forces, various forces determine the competitiveness of AGL Energy. Origin Energy is the company’s primary rival in Australia and it determines the competitiveness in the entire industry. Competition in the industry entails the level of transparency, advertising, innovation, and competitive strategy. The second Porter force affecting the AGL Energy is the probability of new entrants to the energy industry, especially due to the high revenue, barriers of entry, government policies, and economies of scale. Other factors are the probability of new substitutes and bargaining powers of consumers and suppliers.
Characteristics of the Industry and its Contextual Variables
According to the financial report for the year 2015, AGL experienced an increase in its revenue by 2.2% from 10.4 billion to 10.6 billion dollars. The underlying profit attributed to its shareholders also incremented by 12.1%, while the tangible asset per share incurred the same by 6.1%. However, the statutory profit after tax deductions and statutory earnings per share went down by 61.8% and 66.1% respectively (AGL, 2015). Water, air, and solar are free for consumption and is not under any public or private ownership. As such, the companies can utilize as much as they can without restrictions, if they do not pollute the environment. Thus, raw materials for production are readily available with little cost. The government of Australia is one of the major stakeholders in the AGL Energy. In this way, it exercises regulation and formation of policies followed by the companies. In 2015, they contributed to the success of the corporation through its monthly contributions.
Organization’s response to Industry Characteristics and Contextual Variables The preliminary financial report also states that the primary functions undertaken by the company during the year 2015 include trading in gas, power generation, and the extraction, production, and development of natural gas…