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Management Assignment: An External & Internal Environmental Analysis For Codan


Task: Your task
Individually, you are required to conduct an external and internal environmental analysis for Codan (ASX: CDA):

Assessment Description
This management assignmentis based on environmental analysis related concepts. You must introduce Codan, followed by a detailed external and internal analysis by applying PESTLE and VRIN frameworks. The environmental analysis outcome should indicate strengths, weaknesses, opportunities, and threats that Codan management should consider when developing strategies.

Assessment Instructions
Individually, you are required to research Codan and address the following assessment criteria.

A. Introduction to Codan
This section should include an introduction to Codan. It is important to briefly capture the scale (revenue, staff strength, etc.), history, industry dynamics, and competitors in this section.

B. External Analysis
Need to conduct a detailed PESTLE analysis based on the template discussed in week 2. You must capture Codan implications by using the specific PESTLE template from workshop 02. You should support your points with evidence and academically-oriented literature.

C. Internal Analysis
Need to apply the VRIN framework to Codan and identify resources and capabilities that would provide a sustainable competitive advantage. It is important to justify your VRIN analysis and engage scholarly views and literature in this section.

D. Recommendations
The environmental analysis should capture at least two strengths, weaknesses, opportunities, and threats. You should provide suggestions and ideas to the management of Codan on what they can do about each of the high impact findings emerging from the environmental analysis.


1. Introduction
The current management assignmentis based on the business case of Codan which is a software development company located in South Australia and is doing integrated development in the innovation and technological field. The industry hasdeveloped integrated and reliable technological elements for non-profit organisations and corporate and customer markets worldwide. The technologies of Codan includes communications and detection of metals. The company was established in 1959 as integrated engineering and expertise in metal detection (Diggens, 2022). In 1980 the company first started communication in radio by initiating its technological tunning module.Codan is a thriving organisation that is implementing fundamental development that is necessary to increase the business concern in an international platform. The company internally and externally engage targeted consumers in the market in order to build integrated communication that would develop and enhance brand awareness. Concerning the purpose of this report, pestle and VRIN analyses are executed. According to Akman (2020), Pestle analysis includes political, economic, social, technological, legal and environmental factors.Pestle analysis examines the political factors and other factors of Australia that are relevant for Codan while generating the business in the country.Pestle analysis is an integrated tool essential for understanding surrounding political, economic, technological conditions. Every segment should be appropriately analysed.According to Florea et al. (2020), VRIN analysis signifies the value, rareness, imitability and non-sustainable of the organisation that makes the company unique in a competitive market. Recommendations are applied that states the process about how can the company develop its growth and development in the market. An appendix is provided that represents swot analysis of Codan. Swot analysis includes strengths, weaknesses, opportunities and threats of the organisation while doing business.

2. External analysis
PESTLE Analysis

Pestle Element

Factors to consider

Trends and Changes

Implications for the organisation

Level of Impact


Government Policy

Political Stability


According to Clulow et al. (2021), The government in Australia ensure to reduce its carbon emissions by twenty-six to twenty-eight per cent by 2030 compared to 2005.

On the other hand, in Australia, the renewables shares generate nine to twenty-one per cent during 2018. In Australia, there are also significant issues about the integrated contentious issue during transmission of energies.

Australia has a stable political system that operates multiple political activities for the welfare of the common people.

The rate of corruption is very low and very uncommon in the country.

Due to significant carbon emissions, the company can fundamentally achieve success in determining sustainability within the company. The company must keep in mind to produce low carbon while experimenting with the metal detectors and producing other objects. On the other hand, the company should focus on contentious while doing any project in the country. The company work appropriately since the political stability of Australia is very strong, and the rate of corruption is an almost uncommon aspect in the country.



Economic growth

Unemployment rates

Interest rates

The gross domestic product rate in Australia is 1.33 lakhs crores United States dollars. The GDP is significant to grow by 3.9 % in 2021, 4.2 % in 2022, and 4% in 2023OECD(2022). The unemployment rate in Australia at recent times is five per cent ratings that adds two lakhs significant jobs in the country.

The interest rate in Australia is estimated up to three-point ninety-five per cent from 1990 to 2021, coming at a percentage of seventeen-point fifty per cent in January 1990and a low record of zero-point ten per cent in November 2020 (Tradingeconomics 2022).

Since the rate of GDP of the country is reasonable, the country receives good financial support while doing the project. International companies also invest their revenue to the company in getting maximum income. The unemployment rate is a concern for Australia due to pandemics. Additionally, the company should recruit talented employees by adopting the significant process of selection.




Demographic changes

Career attitudes

The people in Australia are outgoing and sports lovers.

Each year the population get increases.

People in Australia are very hard working and always looks to create innovation.





Level of Innovation

Technological change

In the opinion of Sila&Hemmings (2019). The changes in technology and global trade have enhanced the success of Australia and has brought structural changes.

Australia has developed several technological innovationsthat help several technological companies.




Codan will get substantial benefits from the technologically developed country.



Employment regulations

Health and Safety

Discrimination Laws

Australia promotes several legal elements that protect the rights and opportunities of ordinary people living in the country.The government provides health and safety laws and discrimination laws that protect the rights and opportunities of the employees working in the company.

Codan exercises fundamental laws that protect the rights and opportunities of employees working in the company.





Climate Change

According to Maxim & Zander (2020), the taxation for environmental aspects with recycling revenue can operate as a fundamental financial benefit in Australia. In Australia, there is a regulated tropical climate. In Australia, there are long term warm conditions.

The environmental factors will help the company to get additional benefits from recycling revenue. Additionally, the company works independently without any hindrance.


Table 1: PESTLE analysis
Source: (Developed by the author)

3. Internal analysis

VRIN Analysis






Competitive Advantage

Human Resource





The company have competitive advantage

Non-Human Resource





The company have competitive advantage

Service Quality





The company have competitive advantage

Corporate Culture





The company have competitive advantage


Table 2: VRIN analysis
Source: (Developed by the author)

Codan is an integrated software company, and it has well trained human resource management, and they are on the verge of recruiting talentedemployees to the organisation. The human resources of Codan provide extensive training to the employees so that they can workeffectively while doing any operation within the management.The company have realised a sustainable competitive advantage. In order to tackle competition, they will focus more on their brand identity.They would use unique tools while detecting metals that make them significant.Non-human resources are properties, money, community, services, goods and time. In Codan, these material resources are taken into consideration while operatingany work within the organisation.The company have realised competitive parity. The company is required to implement optimum expenditures on advertising and brand activities that would help the company to put up against competitorsin the market.Metal detection is done very specifically by using highly significant technologies. The company use imminent software technologies in order to develop significantdevelopment within the organisation. The company have realised a temporary competitive advantage. The service quality of Codan is extensive. But there is heavy competition in the market. The companywill sustain the market with their adequate resource and are capable of catching up in the market.The management and employees of the organisation work together to fulfil the common aim and objectives of the organisation. However, an influentialcorporate culture helps them expand their business to the international market.The company have realised that there is less competition in South Australia since they can do their business easily. There is a considerable demand for consumers, and the companyhave an extensive brand identity.

4. Recommendation
The Codan industry should understand the demands of the customer in the market. The Codan industry should learn the basic needs and requirements of the customer present in the market to increase customer demand. Since the unemployment rate increases during the pandemic, it causes the problem. The company should need to recruit talented employees by using an extensive mode of selection. The environmental factors in Australia are also not good because there is a considerable rate of pollution in the country. The company needs to implement certain elements that lessen the carbon emissions from the factories. The company should focus more n their competitors while making additional demand within the customer base. The customer is eager to find their range of demand while doing marketing.

5. Conclusion
Based on the above evaluation, it can be concluded that Codan is an integrated software technology that is doing its business significantly. The political stability of Australia is solid that helps the company work significantly in the country. On the other hand, human resource management, non-human resource, service quality and corporate culture plays a vital role in regulating its business in the international medium. The company have significantly understood their competitive advantage in doing integrated business. The company have implemented a significant brand image that has helped them to achieve success in the long run. The company also suffers from heavy competition in the market and thus should take necessary steps to mitigate the problem.

Akman, MK2020,‘Defence Management And Pestle Analysis’, Ante PortaS, p. 93.
Clulow, Z, Ferguson, M, Ashworth, P & Reiner, D2021,‘Political ideology and public views of the energy transition in Australia and the UK’.
Diggens, A2022, History | CODAN. CODAN | Metal Detection | Communications,retrieved 13 January 2022, .
Florea, NV, Mihai, DC, Duica, A &Pahome, D2020,‘Analysing and measuring the value of human resources using VRIN architecture and exponential integral function’,Journal of Science and Arts, vol. 20, no. 2, pp. 381-394. Maxim, MR & Zander, KK2020,‘Green Tax Reform in Australia in the Presence of Improved Environment-Induced Productivity Gain: Does It Offer Sustainable Recovery from a Post-COVID-19 Recession?’, Management assignmentSustainability, vol. 12, no. 16, p. 6514.

OECD2022,Australia Economic Snapshot – OECD, retrieved 13 January 2022, .
Sila, U &Hemmings, P2019, ‘Benefitting from globalisation and technological change in Australia’.
Tradingeconomics2022, Australia Interest Rate | 2022 Data | 2023 Forecast | 1990-2021 Historical | Calendar, retrieved 13 January 2022, .

Appendix: SWOT analysis



The company have a strong brand image, strong cash flow, strong distribution network. The distribution channel helps to achieve a strong customer base in the market.

Codan has low financial planning and is bad at forecasting product demand.




A low rate of inflation will develop more stability in the market. There is intense competition in the market that provide an excellent challenge for the company.

The company’s increasing demand can cause isolation that can put heavy damage on the products that are produced by the company.




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