Westfarmers Curragh Pty Ltd Assignment Example | Topics and Well Written Essays - 1250 words

Westfarmers Curragh Pty Ltd - Assignment Example Curragh falls under the category of largest independent producer of coal mines and Curragh mission is to deliver and create sustained, outstanding growth for shareholders value and return by way of delivering quality products to the customers as per their requirements. The key mining products of Curragh includes hard coking coal, steam coal and PCI coal (Curragh, 2011). Advantage for Curragh to enter the Chinese coal market would be since China is the second largest importer of coal and it imports mostly from Australia and Indonesia making room for Curragh to enter China and export coal reserve. Several factors have contributed to China’s sudden entrance in the coal import sector such as environmental as well as safety consideration, transportation bottleneck, and economic factors along with concerns with respect to depleting coal reserve. Based on the above several factors it would wise to export coal to china Analysis of external environment External environment includes industry factor and the general environmental factors and starts with an analysis of the political factors, economic, social, technological factors, environmental and legal factors which are also referred to as PESTEL analysis. Thus if Westfarmers Curragh l wants to entry China it should analyze the external environment of China through PESTEL. ... Safety with coal production has been significant focus for the Chinese government and as result deaths per million tons of coal produced has decreased by 85% in between 2000 and 2009 (World Coal Association, 2011). China has been suffering from imbalance transportation which means coal needs to be transported through long distance through roads, railways and water bodies. Thus from the perspective of the Chinese government import of coal has been encouraged and can be regarded as a way to ease the deteriorating bottleneck of transportation in China. Curragh coal can benefit through this policy as it will get assistance from the Chinese government to export coal in China which in return will enhance the brand name and value of Westfarmers, it can avail to all the rights and regulation and enter the Chinese market. Economical Coal imports in China accounts for more than half of the global production and contributes to the economy of China. Over the years China has become the second lar gest coal reserve globally next to US. China is the largest energy consumer and the economy which has grown at an average rate of 10% is the key driver in consumption of energy both in China and also on international grounds. China GDP grew to 7.8% as estimated in the first half of 2012 (EIA, 2012). China is said to be the biggest producer of coal for the past 2000 years and is the third largest coal reserves with 114billion tones and in any economic environment would make it to the top coal producer. In an environment of rapid growth of economy, China production of coal has grown up drastically and in between 2000 and 2010 the coal production has tripled (World Coal Association, 2011). Exporting Curragh Coal in China will also boost