Tassal Group Case Study

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Tassal Group Ltd is an Australian company that farms Tasmania Atlantic Salmon. Tassal sells its product to both consumers and retailers, and in doing so has recently become the leader in producing Atlantic salmon in Australia. The company was originally started as a privately-owned company in 1986, and continued to grow until November 2003 when the company became publicly listed on the ASX. Since then the company has continued to grow, currently employing over 900 workers (Tassal.com.au, 2014).The business’ key activities involve developing and maintaining a ‘zero harm environment’ for all employees. This idea states that employees should maintain a compliant focus, and ensures leaders focus on accountability and performance management, whilst ensuring operations run smoothly (Tassal Group Ltd, 2014). Tassal Group Ltd are also determined on delivering sustainable long term returns to the investors and shareholders in their company. Tassal believes it is vital to ensure that their product is highly regarded by the public. The image created by Tassal is that their product is ethically valued and produced using ethical methods. This is an important image that Tassal intends to maintain. The final key activity that Tassal undertakes is ensuring their ability to meet the demand of their product within the market. They aim to balance their levels of supply with that of the markets demand in order to maximise business operations. Describe in what ways your corporation is both a surplus and deficit unit. A deficit unit can be described as a borrower or user of funds (Viney and Phillips, 2012, p. 29). Throughout many stages of the financial year Tassal can be categorised as a deficit unit. This refers to periods where the cash flow ... ... middle of paper ... ...ws the business to lease equipment used for farming and production. This use of financing allows Tassal to avoid a large loss of capital when purchasing equipment. Instead they are able to make periodic payments, which offer a distribution of funds rather than an initial large expenditure. Therefore Tassal is able to focus on its key activity of ensuring growth and a continued long term return for investors. By avoiding large expenditure of capital these funds can be kept, allowing for increased profits which directly affect the shareholders in the company. Conclusively, Tassal Group Ltd utilises a variety of financing tools, and does so through the use of many different financial institutions. This allows the company to function in a coherent manner on a day-to-day basis, and therefore focus can be directed to achieving the key activities and goals of the business.

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