Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) Description

Yanzhou Coal Mining Company Limited (Yanzhou Coal) is a listed company controlled by Yankuang Group Co., Ltd. (Yankuang Group) which is affiliated to the State-owned Assets Supervision and Administration Commission (SASAC) of Shandong Provincial Government, China. Yanzhou Coal have been listed in Hong Kong, New York and Shanghai respectively. It is mainly engaged in coal, coal chemical industry and power generation. In addition to the connotative development, Yanzhou Coal started to implement a strategy of denotative development after listing and seek coal projects in other cities outside Shandong Province or China. This case mainly introduces the process of Yanzhou Coal's acquisition of Austar Coal Mine, Felix Company, as well as Gloucester Coal Ltd. by exchanging shares, thus achieving listing in Australia.

Case Description Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Strategic Managment Tools Used in Case Study Analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

STEP 1. Problem Identification in Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 2. External Environment Analysis - PESTEL / PEST / STEP Analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 3. Industry Specific / Porter Five Forces Analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 4. Evaluating Alternatives / SWOT Analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 5. Porter Value Chain Analysis / VRIO / VRIN Analysis Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 6. Recommendations Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

STEP 7. Basis of Recommendations for Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study

Case Analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) is a Harvard Business (HBR) Case Study on Strategy & Execution , Texas Business School provides HBR case study assignment help for just $9. Texas Business School(TBS) case study solution is based on HBR Case Study Method framework, TBS expertise & global insights. Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) is designed and drafted in a manner to allow the HBR case study reader to analyze a real-world problem by putting reader into the position of the decision maker. Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study will help professionals, MBA, EMBA, and leaders to develop a broad and clear understanding of casecategory challenges. Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) will also provide insight into areas such as – wordlist , strategy, leadership, sales and marketing, and negotiations.

Case Study Solutions Background Work

Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study solution is focused on solving the strategic and operational challenges the protagonist of the case is facing. The challenges involve – evaluation of strategic options, key role of Strategy & Execution, leadership qualities of the protagonist, and dynamics of the external environment. The challenge in front of the protagonist, of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A), is to not only build a competitive position of the organization but also to sustain it over a period of time.

Strategic Management Tools Used in Case Study Solution

The Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study solution requires the MBA, EMBA, executive, professional to have a deep understanding of various strategic management tools such as SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

Texas Business School Approach to Strategy & Execution Solutions

In the Texas Business School, Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study solution – following strategic tools are used - SWOT Analysis, PESTEL Analysis / PEST Analysis / STEP Analysis, Porter Five Forces Analysis, Go To Market Strategy, BCG Matrix Analysis, Porter Value Chain Analysis, Ansoff Matrix Analysis, VRIO / VRIN and Marketing Mix Analysis.

We have additionally used the concept of supply chain management and leadership framework to build a comprehensive case study solution for the case – Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Step 1 – Problem Identification of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) - Harvard Business School Case Study

The first step to solve HBR Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study solution is to identify the problem present in the case. The problem statement of the case is provided in the beginning of the case where the protagonist is contemplating various options in the face of numerous challenges that Coal Yanzhou is facing right now. Even though the problem statement is essentially – “Strategy & Execution” challenge but it has impacted by others factors such as communication in the organization, uncertainty in the external environment, leadership in Coal Yanzhou, style of leadership and organization structure, marketing and sales, organizational behavior, strategy, internal politics, stakeholders priorities and more.

Step 2 – External Environment Analysis

Texas Business School approach of case study analysis – Conclusion, Reasons, Evidences - provides a framework to analyze every HBR case study. It requires conducting robust external environmental analysis to decipher evidences for the reasons presented in the Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A).

The external environment analysis of Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) will ensure that we are keeping a tab on the macro-environment factors that are directly and indirectly impacting the business of the firm.

What is PESTEL Analysis? Briefly Explained

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study. PESTEL analysis of " Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

How to do PESTEL / PEST / STEP Analysis? What are the components of PESTEL Analysis?

As mentioned above PESTEL Analysis has six elements – political, economic, social, technological, environmental, and legal. All the six elements are explained in context with Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) macro-environment and how it impacts the businesses of the firm.

How to do PESTEL Analysis for Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

To do comprehensive PESTEL analysis of case study – Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) , we have researched numerous components under the six factors of PESTEL analysis.

Political Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Political factors impact seven key decision making areas – economic environment, socio-cultural environment, rate of innovation & investment in research & development, environmental laws, legal requirements, and acceptance of new technologies.

Policy Making Impact on Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Government policies have significant impact on the business environment of any country. The firm in “ Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) ” needs to navigate these policy decisions to create either an edge for itself or reduce the negative impact of the policy as far as possible.

Data safety laws – The countries in which Coal Yanzhou is operating, firms are required to store customer data within the premises of the country. Coal Yanzhou needs to restructure its IT policies to accommodate these changes. In the EU countries, firms are required to make special provision for privacy issues and other laws.

Competition Regulations – Numerous countries have strong competition laws both regarding the monopoly conditions and day to day fair business practices. Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) has numerous instances where the competition regulations aspects can be scrutinized.

Import restrictions on products – Before entering the new market, Coal Yanzhou in case study Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)" should look into the import restrictions that may be present in the prospective market.

Export restrictions on products – Apart from direct product export restrictions in field of technology and agriculture, a number of countries also have capital controls. Coal Yanzhou in case study “ Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) ” should look into these export restrictions policies.

Foreign Direct Investment Policies – Government policies favors local companies over international policies, Coal Yanzhou in case study “ Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) ” should understand in minute details regarding the Foreign Direct Investment policies of the prospective market.

Taxation & Regulation Impact on Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Corporate Taxes – The rate of taxes is often used by governments to lure foreign direct investments or increase domestic investment in a certain sector. Corporate taxation can be divided into two categories – taxes on profits and taxes on operations. Taxes on profits number is important for companies that already have a sustainable business model, while taxes on operations is far more significant for companies that are looking to set up new plants or operations.

Tariffs – Chekout how much tariffs the firm needs to pay in the “ Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) ” case study. The level of tariffs will determine the viability of the business model that the firm is contemplating. If the tariffs are high then it will be extremely difficult to compete with the local competitors. But if the tariffs are between 5-10% then Coal Yanzhou can compete against other competitors.

Government Scheme & Subsidies Impact on Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Research and Development Subsidies and Policies – Governments often provide tax breaks and other incentives for companies to innovate in various sectors of priority. Managers at Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study have to assess whether their business can benefit from such government assistance and subsidies.

Consumer protection – Different countries have different consumer protection laws. Managers need to clarify not only the consumer protection laws in advance but also legal implications if the firm fails to meet any of them.

Political System & Stability, and its Impact on Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Political System and Its Implications – Different political systems have different approach to free market and entrepreneurship. Managers need to assess these factors even before entering the market.

Freedom of Press is critical for fair trade and transparency. Countries where freedom of press is not prevalent there are high chances of both political and commercial corruption.

Corruption level – Coal Yanzhou needs to assess the level of corruptions both at the official level and at the market level, even before entering a new market. To tackle the menace of corruption – a firm should have a clear SOP that provides managers at each level what to do when they encounter instances of either systematic corruption or bureaucrats looking to take bribes from the firm.

Independence of judiciary – It is critical for fair business practices. If a country doesn’t have independent judiciary then there is no point entry into such a country for business.

Government attitude towards trade unions – Different political systems and government have different attitude towards trade unions and collective bargaining. The firm needs to assess – its comfort dealing with the unions and regulations regarding unions in a given market or industry. If both are on the same page then it makes sense to enter, otherwise it doesn’t.

Economic Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Social Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Technological Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Environmental Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Legal Factors that Impact Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)

Step 3 – Industry Specific Analysis

What is Porter Five Forces Analysis

PESTEL stands for political, economic, social, technological, environmental and legal factors that impact the external environment of firm in Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study. PESTEL analysis of " Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A)" can help us understand why the organization is performing badly, what are the factors in the external environment that are impacting the performance of the organization, and how the organization can either manage or mitigate the impact of these external factors.

Step 4 – SWOT Analysis / Internal Environment Analysis

Step 5 – Porter Value Chain / VRIO / VRIN Analysis

Step 6 – Evaluating Alternatives & Recommendations

Step 7 – Basis for Recommendations

References :: Yanzhou Coal Mining Company Limited: Overseas Acquisitions (A) case study solution