Contemporary Developments in Business

This report discusses the primary external influences on Cargill organization and the importance of these elements. It also explores the relevance of technological changes for the organization and provides a critical evaluation of the organization's response. Recommendations for improvement are also provided.

CONTEMPORARY
DEVELOPMENTS
IN BUSINESS

TABLE OF CONTENTS
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
Brief overview of the primary external influences to which the organization is subject and
importance of these elements ......................................................................................................3
TASK 2 ...........................................................................................................................................5
2.i Relevance of technological changes for Cargill organization ...............................................6
2.ii Critical evaluation of organizations response ......................................................................8
2.iii Areas of improvement .......................................................................................................11
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13
2

INTRODUCTION
Agriculture and animal production industry works for providing better nutritional values
to people. Present report is based on Cargill which is operating its business in UK and offers
healthy nutritional products. The report describes about primary external influences that gives
impact on the operational activities that are performed in business. In addition to that relevance
of technological changes for the organization and recommendations for making improvements in
the existing processes have been mentioned in the report.
TASK 1
Brief overview of the primary external influences to which the organization is subject and
importance of these elements
Cargill is a leading animal nutritional supplier company that offers superior quality goods
and services. Diverse variety of products that are offered by the organization includes
Agriculture, animal nutrition, energy transportation and metals, grains and oil seeds, cotton and
industrial products. Company was established in the year 1955 and more than 150000 employees
are giving positive efforts for accomplishing the goals of the enterprise. Recently, company has
acquired EWOS enterprise which is a salmon nutrition organization and global leader in this
sector (Cargill. 2016). Operational activities and functions of the entity are performed by making
proper strategies and action plan. Company uses superior quality processing, marketing,
distribution capabilities and logistics functions for achieving the set targets. Diverse variety of
agriculture and nutritional products are offered by the enterprise including compound feed and
premix feed and distinct values are offered to the consumers (Products and services. 2016).
Primary external influence affects the functional activities of the enterprise.
It is vital that proper action plans should be formulated in the enterprise for mitigating the
negative impact of these factors. Global economy is one prominent element that impact on the
overall performance of the business. Cargill operates its functions in more than 70 nations and
market fluctuation, inflation and deflation, recession, currency devaluation and terrorism
influences the global economy. While executing business functions in diverse nations of the
world it is vital that economic situation and various trade related policies should be considered so
that more profitability and financial revenues can be earned. Unemployment, inflation and
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deflation are some important economic factors that give impact business. Demand and supply of
goods gets influenced due to it and overall sales for agriculture and animal nutrition products get
affected. In addition to that, weather and environment factors are also in the category of
significant primary external influence which affects the business functions of Cargill.
Agriculture and nutritional products that are supplied by the organization gets affected
due to bad weather condition. It is necessary that controlled temperature and other environmental
conditions should be present so that all the products can be manufactured and delivered properly
(About Cargill in UK. 2016). Some extreme weather conditions which can be faced by the
enterprise include storms, heavy rain fall, hurricane, and incidents of wildfires, tornado and other
natural disasters. All these elements are beyond the control of organization and overall
performance of the entity gets affected due to it. Direct impact is observed on the operational
functions which are performed in the entity. Trends running in the market and preferences and
needs of consumers also come in the category of prime influence factors (Bowler, 2014.)
marketing activities of the entity focuses on taste and requirement of purchasers so that products
can be sold to large number of consumers. It is critical that trends running in the industry should
be assessed so that products can be developed according to that (Holt-Giménez and Altieri,
2013).
Legal and regulatory factors also are significant primary influence elements which affect
the functioning of corporation. If there will be federal changes in laws than due to that direct
affect is observed on the business activities of the firm. Policies and guidelines given by
government are mandatory to follow for carrying out the business activities. It is required that
Cargill organization should comply with policies and rules that are formulated by the
government. All the operational functions of the enterprise get influenced due to it and
regulations imposed by the state affect functioning of the entity. Government norms are beyond
the control of management and it becomes vital to comply with the policies and rules which are
being formed by the state. Requirement and preferences shown by consumers also affects the
execution of business operations and due to that overall profitability and financial revenuers get
influenced (Tomlinson, 2013). It is assertive that consumer oriented products should be
developed so that large market area can be covered by the entity.
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Cultural and demographic changes give impact on needs of the buyers and due to that
positive and negative impact is observed on the financial performance of the company.
Technological advancement that is happening in the industry also comes in the list of primary
influence factors which affects the financial performance of business. Inputs are converted into
outputs by making use of technical machinery and equipment. It becomes assertive for the entity
to adopt advanced and innovative technology for carrying out the business functions and it helps
in gaining competitive advantage for the business (Specht, Siebert and Dierich, 2014). Company
has global expertise in supply chain and risk management and it supports the venture for serving
needs of the consumers on a worldwide basis. Animal nutrition and agriculture products of the
enterprise support for growth, care and efficiency for animal species. It is critical that strategic
planning should be done in the enterprise for mitigating negative impact of primary influence
factors. Competition prevailing in the market and strategies made by rival firms for operating
their business also affect the growth and success of the Cargill firm.
New competitors entering in market area, new technologies and advancement happening
in agriculture sector, new legislation and laws formed by the state and changes in the need and
preferences of buyers are some prominent elements that give impact on the overall performance
made by the entity. Inevitably competition is faced by Cargil in the market and rival firms tries
for capturing the market share by adopting innovative strategies and methods. Social changes
that are happening in the community also affect the organization and it is vital that products and
services should be modified for meeting the changes (Vliet, Groot, Rietv and Verburg, 2015). All
these primary external factors influence the functional activities that are performed by the Cargil
organization. In addition to that, it is required that business should make efforts for increasing
the positive effect of these factors and reduce negative impact of these elements. For making
strategies and action plans, it is vital that primary external factors should also be considered so
that better action plans can be formed for carrying out the business functions.
TASK 2
THEME :- Technological changes happening in industrial sector
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2.i Relevance of technological changes for Cargill organization
21th Century is leading towards technical advancements and it is supporting in making
positive improvements in living standard of people. Cargill organization offer agriculture and
animal nutritional products and company is committed for operating with integrity and
accountability. Technological changes gives impact on the operational activities that are
performed in the enterprise (Vliet de Groot, Rietv and Verburg, 2015). New ways and
techniques are provided by adopting technological changes in enterprise and it also supports in
gaining competitive advantage for the business. Competition in agriculture and animal
production sector is intense and it is critical that effective strategies and innovative technical
methods should be adopted for staying ahead with the competitors. Technological changes are
relevant for the firm and new ways and methods are provided by it which company can use for
helping their farmers to produce more food (Technical changes and innovations in agriculture.
2017). New techniques for transporting food and other resources from one place to another are
also provided be new technology (Miah and Sadhukhan, 2015).
Talents and conviction of staff members can be enhanced and best agriculture practices
can be promoted by making use of advanced technology and it will also support for meeting the
challenges that are created by primary external factors. Firm will grow profitably and responsibly
for meeting the requirement of diverse, interconnected and expanding world. Many innovations
have been done in technical sector and agriculture industry also have influenced due to it.
Farmers can adopt precision agriculture tools, farm management software, power systems and
affordable sensors (Buckley and Carney, 2013). New technology is making it possible for
executing business functions in efficacious manner.
Optimum utilization of new resources becomes possible due to the innovative technology
that is being used in agriculture industry. Advanced and powerful technical instruments when
deployed effectively supports in accomplishing the long term objectives of the entity. New
technical instruments such as irrigation system, farming instruments, sensors and power systems
support for enhancing efficiency of individuals that are involved in farming business. Use of
electricity, soil, water and other resources is reduced when advanced agriculture machinery and
instruments are used (Bonjean, and Brun, 2016). Wastage are reduced and time required for
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performing farming activities also reduces. There are much Precision agriculture technologies
that can be used in agriculture industry for saving cost and time to carry out farming operations.
Other necessary operations such as traceability and efficiency of logistics operations also
improves by this and it becomes advantageous to carry out farming operations.
Technological changes have made it possible for improving efficiency of operational
process and making positive improvements in product quality and long term benefits can be
reaped by the farmers by this. New technical instruments also supports in making positive
improvement In supply chain network and due to that it becomes possible for reaching to buyers
at right place and at the right time. Cargill organization also makes animal nutritional produced
and manufacturing activities and production related activities for making animal nutrient
products are executed. Daily operations of the entity can be improved and proper monitoring of
daily functions can also be ensured by making use of this approach. Technological changes will
support for enhancing farmers profitability, efficiency and their productivity and they will
become capable for producing more amount of foods. Technical instruments made it easier for
making optimum utilization of resources and saving cost and time for carrying out required
functions in effective manner.
Animal nutrients products can be prepared and delivered in a productive and constructive
way and it will support for enhancing financial performance of the entity. Long term positive
benefits will be reaped by the organization and it will also help in ensuring long term growth and
success of the entity. Agriculture and animal production industry is getting competitive and it is
necessary that research and development department should support for make positive efforts for
making modifications in the existing products. Some transformation that can be adopted in
farming includes improvements in mechanization at farms by making use of advance high
quality farm equipment and adopting effective R&D initiatives.
In addition to that Agri business and technology expertise can be adopted in the
organization for developing a smarter supply chain for delivering food and agriculture products
on proper time. It becomes easier by making use of technical software to monitor the growth of
crop. Effective measures can be taken for improving the practices that are used in farming and
Cargill company can achieve its goals in constructive manner. Many times problems are faced by
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farmers while executing the required farming operations and using advanced and innovative
technology supports for mitigating and resolving the issues that are faced by farmers while
executing farming operations. In addition to that monitoring and inspecting weather condition,
nutritional level of soil, oxygen level and PH level of soil can also be assessed and it will help for
growing crops in fruitful and functional manner.
Supply chain network development is required for placing the right product at the right
place and at the right time (Buckley and Carney, 2013). It is vital to make proper communication
with all the people who are associated and linked in the supply chain network and it will support
for delivering the products to the consumers in constructive way. Technological changes makes
it possible for remotely control overall operational activities that are performed in the enterprise.
For example weather websites defines about various agriculture related information such as
weather forecast, Agri- risk management and crop insurance and the information can be used by
farmers for executing their desired functions in effective way.
Technological changes are making it possible for ensuring long term growth and success
of the organization and it also supports for enhancing profitability of the entity. Operational and
supply chain activities of the enterprise can be executed in effective manner by making use of
innovative technology in functional activities of the enterprise (Miah, and Sadhukhan, 2015).
Technology will also be supporting for developing a effective communication channel in
the entity and making proper interaction with the stakeholders will become possible due to it.
Technology supports for taking relevant planning decisions and forecasting will also become
easier by making use of this. Technological changes will reap positive and long term benefits for
the Cargill organization for ensuring effective collaboration of stakeholders and all the
stakeholders of the organization can be engaged in business activities by making use of advanced
technology.
2.ii Critical evaluation of organizations response
According to Bowler, (2014) Technological changes have played a prominent role in
improving the performance of agriculture and animal production industry. Majority of
organizations working in this sector are making use of advance technical machinery, equipment
and processes for carrying out desired functional activities in effective manner. Cargill
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organization has taken significant initiatives for adopting technological changes and it has
supported for making improvements in overall performance of the entity. Farmers have been
encouraged for using innovative machines, systems, technology and software for growing crops.
Agriculture machinery are used at every stage of crop growing cycle. Research and development
department of the organization works for making new modifications and changes in existing
products and practices that have been adopted in the enterprise. Company is performing
exceptionally well in agriculture and animal production industry and all the due credit goes to
advanced and innovative technology adopted in the enterprise.
Innovative R&D technology have been adopted for meeting the expectations and needs of
buyers and bringing new knowledge. While manufacturing animal nutritional value products
advanced manufacturing technology is used it supports in delivering excellent values for the
consumers. Technical expertise is used by the enterprise for food safe process designs and it aids
in meeting the engineering requirement. Recruitment are done in the company for hiring
technical expertise people so that technology can be implement properly. Individuals hired as
technical experts gives advice and recommendations for implementing norms, policies and
practices for adopting technical changes in the entity. Research and development department
makes positive efforts for commercializing the new process for modifying existing products and
developing new products. Top management of the organization focuses on developing technical
competencies for improving the operational activities of the enterprise.
Holt-Giménez and Altieri, (2013) has mentioned that agriculture industry is facing
intense competition and it has become essential for existing organizations for taking positive
steps for developing the products. Cargill industry is taking positive efforts towards adopting
technological changes in the entity so that competitive advantage can be gained for the business.
Farmers are encourages for making use of advanced farming equipment, machinery and practices
for growing crops and completing their farming related works. Power systems, agri- softawre
and innovative water irrigation systems are used by farmers for growing crops and it supports in
developing products effectively. Similarly, in the manufacturing process technological changes
have been adopted for carrying out the operational activities in effective manner. Total cost and
time for executing required business function have reduced by it. Financial performance of the
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business have been improved and overall investment cost for producing animal nutritional value
products have decreased. However, there are some barriers that are faced in the company while
implementing the technical changes in the enterprise.
It is assertive that positive efforts should be made by the management of the organization
for reducing these barriers so that all the action plans for using new and advanced technology can
be implemented in effective manner. Communication barriers are faced as sometimes it becomes
difficult for making proper interaction with the stakeholders and due to that necessary technical
changes can not implemented properly. Availability of resources also creates hurdle for bringing
technical advancements in the required procersses. Specht, Siebert and Dierich, (2014) has
described that it is necessary that proper funds should be allocated in the organization for
adopting technical changes. Lack of financial revenues also creates difficulty in implementing
new technology in the organization. It is assertive that proper preparation should be done for
executing the required technical changes in the organization and sometimes institutional barriers
are faced while making technical changes in the organization. Cargill is focusing for developing
Digital supply chain network and advanced technical methods are supporting for
completing this goal of the firm. On a critical note Norris, (2016) has described that Primary
external factors also makes it difficult for implementing the technical advancements. For
example climate changes and other environmental factors makes it difficult for getting the
desired outcomes. Natural and weather conditions are prominent barriers that are faced while
making use of advanced machinery and equipment. Henckel, Walk and Dierich, (2014)has
described that necessary skills and capabilities should be imparted to staff members and farmers
so that they can handle equipment, machinery and other technically advanced devices in an
effective way. If people will not have necessary competence for using new technology than
required positive outcomes will not be gained by the entity.
Cargill organization has made many positive efforts for implementing technological
changes in the organization and it has supported in providing long term benefits to the entity.
However there are some barriers which are faced while executing technological changes in the
enterprise. It is vital that strategic planning should be done in the entity for overcoming the
challenges and barriers that are faced while doing technical changes in the enterprise.
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2.iii Areas of improvement
Cargill is a leading agriculture and animal nutrition supply company that offers superior
quality products. Technical expertise has supported in delivering excellent value for the
stakeholders of the entity. Company can take some significant initiatives for making positive
improvements in existing performance of the business and it will help for reaping long term
benefits for the business (Miah and Sadhukhan, 2015.). Some steps that can be adopted are as
follows :-
1- Training programs, seminars and conferences can be organized for providing necessary
training to the staff members, farmers and other stakeholders for acquiring skills and competence
for adopting technical changes (Dandage, Badia-Melis and Ruiz-García, 2017).
2- Proper funds can be allocated to Research and development department so that they can take
satisfactory and valuable efforts towards product development (Clapp, 2015). It will aid for
differentiating the products of Cargill in the market and large market share can be gained by
making use of this approach.
3- Farmers can be encourages for making use of advanced technological instruments such as
power system, advanced water irrigation system, computer monitoring systems, Self steering
programs and agri-software for carrying out farming activities.
4- Technical expertise of the organization can be improved by hiring talented, skilled and
experienced professional. It will aid for adopting technological changes in the guidance of
professionals (Evans, Cargill and Incorporated, 2015).
5- Farmers can be given additional support for purchasing advanced tractors and other
technically advanced instruments (Bonjean and Brun, 2016). It will support for reducing
wastage, use of fuel, electricity, seeds and fertilizers and other material and cost for growing
crops will reduce by this (Buckley and Carney, 2013).
6- GPS locators and computer monitoring system can be adopted for assessing and inspecting
growing of crops in the entity and it will help for taking effective measures for rectifying the
gaps that are found in the practices and procedures that are adopted in the entity (Vousden,
Cargill and Shennan, 2014).
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7- Adopting new technology will also support for reducing the negative environmental impacts
and wastage and unnecessary processes can be eliminated from the operational functions (Vliet,
Groot, Rietv and Verburg, 2015). Moreover, cost and time of carrying out required functional
activities will be saved and overall investment cost will be reduced (Lawrence, Lyons and
Wallington, 2013). Lewin's Change management model can be used for implementing the
required changes in the Cargill and it will provide a systematic and organized medium for
adopting technical changes in the enterprise.
CONCLUSION
Summing up the present report it can be concluded that primary external influence gives
influence on the activities that are performed in the organization. Weather and climate changes,
global economic situations, legal and state regulations, technical advancements, social and
cultural changes, competition in market, need and preferences of buyers and strategies adopted
by rival firms are some prominent primary external influence which gives impact on the
operational activities that are performed in the entity. It is vital that strategic planning should be
done in the enterprise for mitigating the negative impact of factors and enhancing performance of
business. Technological changes that are happening in agriculture and animal production sector
are supporting for growth of this industry and Cargill organization can also reap positive benefits
by implementing technical changes in the organization. Advanced technical instruments and
machinery can be used and farmers should be encouraged for making use of these instruments. In
addition to that computer monitoring system can be implemented in the entity so that better
control over operational process can be made.
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