Overview of the Analysis
This paper will emphasize on the overall strategies related to internal and external environment. External factors are important to be considered so that it can be simple to manage the overall activities in context to the environment. By considering the external analysis the focus will be given on the factors like social, legal, economic, technological and environmental. In the next phase of the paper, the discussion will be made on the internal analysis in which resources and capabilities of the company will be evaluated.
In the last phase, recommendations will be stated that will help the company to focus on strategic direction. Through these recommendations it can be simple for the company to focus on the overall operations related to future. It is important for the company to consider strategic management as it is method through which company can easily emphasize on the stakeholders that exist in the business world.
The Australian agricultural company is one of the biggest companies which operate in Australia. The company was founded in 1824 and the CEO is Hugh Killen. Headquarter of the company is situated in Bowen Hills Australia. The company considers the feedlots and farms covering around 7 million hectares of land in Queensland.
As it has been examined that company is one of the largest companies in the Agri sector and also the company is on 729th position in more than 2000 companies all over the world. Also the business unit of the company varies from activities to activities. As there are different activities so the operations also take place in a different manner in each business unit. The company also focuses on production related to beef and meat. In the recent era, the company focuses on offering various brands in the market Master Kobe, premium Beef, Wagyu and Takumi. There are many locations where activities are conducted like in Northern territory, New South Wales and also Queensland. The company not only sells beef but also provide wheat, irrigated cotton, chickpeas in the market (AACO, 2018). The company tries to manage these activities in different business units that also give positive impact on the overall productivity.
In terms of revenue company is one of the biggest agriculture company to earn total revenue of $379.7 million. This revenue was earned by offering products and services in the market. Meat processing business units is one of the biggest that assist in earning more revenue and income. It has also been investigated that Australia is considered as the second largest beef exporter all around the world, so it has given positive impact on the entire sales and revenue of the company.
External Analysis: Factors Affecting the Operations
In this analysis, the emphasis is given on overall analyzes of the external forces which affect the activities of the company. It is important for the company to focus on external environment so that activities can be managed in a proper way. There are various aspects which are related to proper evaluation of external environment (Basu, Banerjee and Sweeny, 2013).
In context to the company it has been seen that free trade is considered which will help to gain the overall competitive advantage. The company also focuses on enhancing the market share by focusing on free trade market. By considering this, the overall competitive advantage can be achieved as also competition can be given to the competitors prevailing in the market but it is important for the company to consider proper political situations. Also, the government of the Australia focuses on promoting the livestock area so that the demand of the meat and dairy products can be enhanced.
Australia also emphasizes on maintaining relations with the other economies which is assisting the company in exporting the products from Australia. The policies of the government favor the overall meat production, which is considered as one of the major advantage for the company. Also it has been seen that company focused on considering the policies which are implemented like livestock production assurance so that activities can be managed effectively (Touzard et al., 2015).
In context to this factor, the overall national economy of Australia is developing and this has also enhanced the overall potential of the company to offer products in the market. By having the export provision the company has also analyzed the increase in the overall demand for the dairy products. According to the investigation it has been seen that the agriculture products in Australia are exported which give impact on the overall Gross domestic products in the ratio of 3 to 4 percent. Taxation is also considered as one of the major issue which is faced when operations are done in Australia. It is also giving impact on the overall product expense in the market (Bondarenko et al., 2017).
In context to this factor it has been evaluated that vegan consumption is giving impact on the social factor for AcCo. Just because of this company has to offer expensive products in the market which directly reduce the overall demand of the products in the market. Also it the change in preference and taste of the people it is important for the company to focus on updating their portfolio of products. The population of Australia prefers beef which is enhancing the overall sale of the products in the market. By focusing on the purchasing power of the customers, it has been analyzed that majority of people belong from high income background so they can easily purchase the products of the company.
Internal Analysis: Company Resources and Capabilities
Technology is considered as one of the important factor in the recent agribusiness situation as it helps in enhancing the overall investments. With the help of new technologies, the company can easily create new production processes. It can also help in reducing the overall cost related to agriculture and can maintain the overall quality of the products offered by the company. AACo focuses on automated process for the overall process of production and also it helps to achieve competitive advantage in the market (Gold, 2016).
In context to environmental factors it has been seen that Australia is having strict rules and regulations in context to the environmental standards. It is essential for the company to maintain the activities in a proper manner. However, it has also been investigated that the overall cost of environmental protection is enhancing for the company that is important to be controlled so that business effectiveness cannot be hindered. Also the company can maintain the profit ratio by focusing on the overall environmental standards. The products of the company can also be affected by the natural climate change like flood. This negatively impacts the overall price level of the products due to change in temperature the impact is seen on the process of farming. So, it is important for the company to focus on the overall variation in temperature and climate so that it can be simple to manage the entire activities (Sarwar, Ramachandran and Hosseinian-Far, 2017).
In Australia, the legal standards are high in the agriculture sector. The major challenge which is faced by the company is related to the different standards that is important to be followed. The products of the company are exported to different countries and the strict legal compliances can hinder the overall activities. The company also has to face trade restrictions and law which affect the activities of the company. At the time of expanding the market share, it is important for the company to focus on legal rules and regulations so that in a smooth manner activities can be completed (Fazey et al., 2016).
The internal effectiveness of the company can be determined by considering resource based view analysis. In context to the resource based view, the tangible resources of ACCo are the assets which are related to manufacturing facilities, human resources and machinery.
ACCo is considered as one of the biggest agribusiness companies in Australia. The resources of the company are land, feedlots and also cattle stations. There are 18 cattle stations in Queensland and in entire Northern territory there are 4, 00,000 cattle (Australian agricultural resources group Pty Ltd, 2018). The company uses latest methods and machines for the overall process of beef and meat.
Recommendations for Strategic Direction
Human resources are considered as an asset for the company as it helps to manage the activities of the company. Without human resource it is difficult for the company to sustain in the competitive market. Farmers play a major role in managing the overall operations of the company. The company has skilled employees which help in the overall process of meat and beef. Also, it has been examined that the company focuses on giving training to the candidates so that their skills can be enhanced in context to the nature of work (Paladino, Widing and Whitwell, 2015).
The activities which are rendered by the company are effective so it has also maintained the overall position of the company. The company has stability in their financial performance and also the focus is on enhancing in the coming years. The overall operations of the company have the capability to enhance the revenue as the products which are offered by the company are demanded by the customers more. Meat processing is considered as the biggest revenue for the company. Therefore, it has been seen that the financial capability of the company is stable and it can be simple for the company to achieve competitive advantage (Barney and Mackey, 2016).
The company focuses on innovation of the overall process of farming and processing. It has been seen that latest technologies are considered so that innovation can take place in a proper manner. The process of innovation differentiates the overall products of the company in the Agribusiness sector (De Massis et al., 2018).
Leadership is considered as one of the major competencies which are possessed by the company. It has been seen that company considers democratic leadership styles through which the overall operations of the company can be managed in a proper manner. Equal chance is given to the employees so that they can give their best towards the activities of the company (Bolman and Deal, 2017).
It has been analyzed that company is one of the oldest company in the agribusiness sector and because of this the competitive advantage can be maintained. The company is offering quality products in the market if comparison is made with the competitors. The company is also focusing on maintaining the overall quality of the cattle and also to generate the quality meat and beef so that it can be simple to achieve growth and success in the competitive market (Lin and Wu, 2014).
Stability, Financial Performance, and Focus on Innovation and Leadership Competencies of the Company
It has been recommended that
- Company should focus on maintaining the quality by considering innovative techniques so that positive impact can be seen on the overall financial performance of the company.
- Also the company should emphasize on expanding the market share so that it can be simple to maintain the brand image in the market.
- It is also important for the company to maintain proper relations with the farmers and suppliers so that production can be done in an effective manner.
- These strategies can help in enhancing the overall performance and also it will help the company in future strategic direction.
Conclusion
By analyzing the paper, it has been concluded that the external factor of the company can help to achieve success and growth in the Australian market. The resources and capabilities are sufficient which the company through which they can easily render their services in the market. Also, it is important for the company to emphasize on maintaining the quality so that growth and success in the competitive market can be achieved in a proper manner. So, it is important for the company to focus on internal and external environment so that goals and objectives can be achieved in a proper manner.
References
AACO., 2018.Austrailan agriculture company. [Online]. Available at: https://aaco.com.au/about-us. [Accessed on 23 aug, 2018].
Australian agricultural resources group Pty Ltd., 2018. About Us. [Online]. Available at: https://www.australianagriculture.com.au/ [Accessed on 23 aug, 2018].
Barney, J.B. and Mackey, A., 2016. Text and metatext in the resource?based view. Human Resource Management Journal, 26(4), pp.369-378.
Basu, R.R., Banerjee, P.M. and Sweeny, E.G., 2013. Frugal innovation: core competencies to address global sustainability. Journal of Management for Global sustainability, 1(2), pp.63-82.
Bolman, L.G. and Deal, T.E., 2017. Reframing organizations: Artistry, choice, and leadership. John Wiley & Sons.
Bondarenko, T.G., Isaeva, E.A., Orekhov, S.A. and Soltakhanov, A.U., 2017. Optimization of the company strategic management system in the context of economic instability. European Research Studies, 20(2), p.3.
De Massis, A., Audretsch, D., Uhlaner, L. and Kammerlander, N., 2018. Innovation with Limited Resources: Management Lessons from the G erman M ittelstand. Journal of Product Innovation Management, 35(1), pp.125-146.
Fazey, I., Wise, R.M., Lyon, C., Câmpeanu, C., Moug, P. and Davies, T.E., 2016. Past and future adaptation pathways. Climate and Development, 8(1), pp.26-44.
Gold, M.V., 2016. Sustainable Agriculture: The Basics (p. 1). CRC Press.
Lin, Y. and Wu, L.Y., 2014. Exploring the role of dynamic capabilities in firm performance under the resource-based view framework. Journal of business research, 67(3), pp.407-413.
Paladino, A., Widing, R. and Whitwell, G., 2015. Internal and external organisational orientations: Comparing the resource based view and market orientation. In Global perspectives in marketing for the 21st century (pp. 338-338). Springer, Cham.
Sarwar, D., Ramachandran, M. and Hosseinian-Far, A., 2017, January. Disaster Management System as an Element of Risk Management for Natural Disaster Systems Using the PESTLE Framework. In International Conference on Global Security, Safety, and Sustainability (pp. 191-204). Springer, Cham.
Touzard, J.M., Temple, L., Faure, G. and Triomphe, B., 2015. Innovation systems and knowledge communities in the agriculture and agrifood sector: a literature review. Journal of Innovation Economics & Management, (2), pp.117-142.
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