Accounting Decision Analysis Report

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Case Study Report
Accounting (Decision Analysis) 308


Lecture: Adrian Melia
Tutor: Rajni Mala
Tutorial Time: 9am-11am (Wednesday class)

DUE DATE: 12/09/08

table of Content

Executive Summary3
Executive Summary4
SWOT Analysis8
Common-size analysis10
Balance sheet and common size analysis from2005-200811
Common-size analysis23
Accounting Analysis25
EVAL Ratio Analysis35
Appendix: Financial Statements of BlueScope steel Ltd41



BlueScope Steel is the leading steel company in Australia and New Zealand, supplying a large percentage of all flat steel products sold in these markets. The company's products play a big part in people's everyday lives, being vital components in suburban houses, landmark buildings and structures, popular makes of cars, and containers for food and beverages.

BlueScope Steel is the region's leading flat steel products company, serving customers in the building and construction, manufacturing, automotive and packaging industries. It holds leading market positions in Australia and New Zealand for most of its value-added products and services and continues to build on its long-established presence in Asia. It is also a major exporter, supplying customers in the United States, Asia, Europe, the Middle East, the Pacific and elsewhere through a worldwide network of sales offices.

The modern BlueScope Steel Limited has evolved from the coming together of three pioneer companies in the Australian steel industry (The Broken Hill Proprietary Company Limited, John Lysaght (Australia) Pty Ltd and Australian Iron & Steel Limited) together with the more recent acquisitions of New Zealand Steel and Butler Manufacturing.

BlueScope Steel conducts its activities through four major business units: Australian and New Zealand Industrial Markets; Australian Manufacturing Markets; Asian Building & Manufacturing Markets; and Australian Building & Logistics Solutions. Every business unit play a significant role in their markets,

Australian Manufacturing Markets is a world leader in metallic coating and painting technologies, supplying a wide range of branded products such as COLORBOND® steel, ZINCALUME® steel and the LYSAGHT® range of building products. It services its customers through a network of distribution and manufacturing facilities throughout Australia.

Though it is a relative newcomer to the Australian Stock Exchange, BlueScope Steel is part of Australia's industrial history. With a proud heritage dating back to 1915, the company has built itself into the biggest steel group in Australasia and one of the better performing companies in the competitive global steel industry.

Part 1


SWOT Analysis

SWOT Analysis

Strength: Firstly, BlueScope steel have various brand in different steel market, those brands are highly recognised by customers who are using quality steel. For example, brands such as COLORBOND@ steel and ZINCALUME@ steel are leading brands in construction industry. (annual report 2007). Secondly, BlueScope steel has outstanding worker safety records through years, as they focus on the goal of Zero Harm. And the Injury Frequency Rate (LTIFR) was 0.4 which is still remaining under 1.0 for three years already. (annual report 2007). Thirdly, the management team are highly experienced in the various industries that could benefit the organisation in every important aspect. For example, many of executive were formerly works as major executive in other company such as BHP steel division, Australian national bank, etc. (annual report 2007)

Weakness: Firstly, BlueScope steel is an international company, that could have many employees where English is second language, so communication and culture problem may occurs in overseas division.(survey) Secondly, because the BlueScope steel does not own any mining spot, so resource price is...
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