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The 1996 results were severely affected by the cyclical nature of the building and construction industry, and these forces are accepted as a fact of business life. Of the three major building and construction materials companies, the effect of the current downturn on Boral reflects its proportionately bigger commitment to the Australian building and construction markets.
Strategies are being developed to counteract adverse trends; deregulation is presenting new opportunities to grow the energy business; overseas operations will be expanded, and a range of improvements to internal administration will help to streamline the complex areas of management and accounting.
One of Boral's directors had said that the problem with the company in the early 1990s was that it 'lacked a destiny'. Critical to Boral's new-found purpose is the notion of being a world leader in building and construction materials and building a strong core business in energy. Berg believes a company cannot lead unless it is also an innovator in the markets in which it operates, not only a leader in terms of new products, but also in developing new processes, new ways of making existing products, and introducing new methods for delivery and service. |
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The Malaysian concrete business is now one of that country's top three suppliers. |
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