Sample Management Presentation Paper on Queensland Nickel Company and its crisis

Queensland Nickel Company and its crisis

The company

Queensland Nickel has been in operation for the last 35years. It owns Cobalt Refinery and Palmer Nickel, which are located at the North Queensland (Queensland Nickel – Our History, 2016). However, one of the major challenges that the company has been facing is financial difficulties. The government refused to offer support to the company because of the large sum of money that it required.

 By January 19, 2016, it was reported that Queensland Nickel had collapsed into an administration business offering voluntary services. This was after it terminated 237 workers. The manager of the company pointed out that the poor prices and inability to acquire $35 million loan led to its collapse and termination of the workers (Cauchi, 2015).

Objectives

The team’s main objective will be to propose the best approaches and change factors that can be taken into consideration to help Queensland Nickel to be back on its feet. The following are important facts that must be taken into consideration:

  • Leadership
  • Change in Macro-environmental factors

Problems with the company

  1. Leadership
  2. The Clive Palmer, the leader of the company did not acquire relevant licenses that are approved by Government (Wilson & Chen, 2016). This became a disadvantage to the company when it went bankrupt because it could not seek financial assistance from the government. No one was also willing to pledge to invest in a company that did not have a license for operation.
  3. Poor pricing strategy was also a major factor that led to the fall of the company
  4. Sacking 237 employees meant that the company was abandoning skilled labor that could have helped it to rise (Joshua, 2016).
  5. Change in Macro-environmental factors
  6. The macro-environmental variables such as technological, economic and legal factors led to the fall of the organization.
  7.  The organization did not have the right technology to deal with managerial issues.
  8. Lack of finance led to the sacking of several employees and the ultimate fall of the company
  9. The Legal factors involved lack of license, which placed the company at a disadvantage when it comes to acquiring loans.

Important change approaches in the company

  1. Leadership

Queensland Nickel needed to change its leadership style goals.

  • Mensink should have guided the employees towards quality production instead of sacking them
  • The employees should have been subjected towards training to increase production
  • The manager should have come up with a new vision statement that would guarantee strategic success in regards to change interventions. A new vision statement would trigger change in the business in a positive way.
  • The manager could have generated and sustained competitive advantage by changing the management intervention strategy.
  • Mensink should have solved the issues with the government to put the company in a position to acquire loan (ABC, 2016). This could have helped them recover the business.
  1. Change in Macro-environmental factors
  2. The managers should acquire better technology that would help the company make quality Nickel that would attract consumers. Innovation is mandatory in this case and must be integrated with the new technology.
  3. More demand for the products will generate more income in the company. On the other hand, changing the pricing strategy would help change the situation in the company.
  4. With the inception of innovation and production and quality Nickel, the company can increase the prices of goods. However, the most important step would be acquiring the required license after getting money.

References

Cauchi, S. (2015-11-25). Nickel prices fall to 12-year low, Western Areas share price falls. The Sydney Morning Herald (Faifax Media).

Joshua, R. (2016-01-15). Clive Palmer’s Queensland Nickel refinery to cut hundreds of jobs | Australia news. The Guardian.

ABC. (2016, Jan. 18). Clive Palmer’s Queensland Nickel goes into voluntary administration. Retrieved from http://www.abc.net.au/news/2016-01-18/qld-nickel-goes-into-voluntary-administration/7094818

Queensland Nickel – Our History. (2016, January 20). Qni.com.au.

Wilson, C. & Chen, D. (2016, Mar 10). Shakespearean tragedy: Major laments loss of jobs at clive Palmer’s Queensland Nickel. ABC.