BioAG Australia

BioAG is a leading manufacturer of plant nutrition products and biological soil in Australia. Get access to study material, solved assignments, essays, and dissertations on BioAG Australia at Desklib, the online library for students.

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BIOAG AUSTRALIA

BIOAG-STRATEGIC MANAGEMENT 1
Executive summary
BioAG is the manufactures of the plant nutrition products and biological soil based in Australia.
The company is leader of agribusiness technology. Agree business in Australia one of the strong
pillars of the Australian economy and recently seeking attention of local and international
market.
The report will analyze the Australian agree business industry in order to identify the strategies
and make recommendations for BiaAG to expand the business into the international market.

BIOAG-STRATEGIC MANAGEMENT 2
Contents
Introduction.................................................................................................................................................2
Aim.............................................................................................................................................................3
BIOAG AUSTRALIA.................................................................................................................................4
Discussion of Australian horticulture focused agribusiness sector..........................................................4
Opportunities for the BioAg in Bolivia and other international market...................................................5
Global strategy....................................................................................................................................6
Transnational Strategy.........................................................................................................................7
Multi-domestic strategy.......................................................................................................................7
Different mode of Entry in the international market of Bolivia...............................................................7
Inappropriate mode of entry Exporting................................................................................................8
Appropriate entry mode of Licensing..................................................................................................9
Conclusion...................................................................................................................................................9
Recommendation for cross culture strategies and Hofstede theory............................................................10
Bibliography..............................................................................................................................................11

BIOAG-STRATEGIC MANAGEMENT 3
Introduction
BioAG Australia is the largest manufacturer based in Australia operates as an agribusiness
industry. The company produces fertilizers, seeds, livestock nutrition, and other agriculture
products and services. It manufactures balanced and healthy soils and delivers confirmed
improvements in fruit, crop yields and paddock quality which are also suitable for an organic and
biological system. BioAg's liquid nutritional products include dormant cultures of microbes and
metabolites in nutrient resolutions by fermentation at its factory, and biologically digested
reactive phosphate rock products at its Geelong site. It also manufactures liquid nutrients and
biologically for all farm systems and help farmers to improve their crops and soils and Health of
the animal (BioAG, 2018).
The company established in the year 1999 by Jeptha Gates and Anton Barton. And one of the
key purposes of this establishment is to increase the number of farmers in Australia and
introducing them the biological farming so that they can get better output (Lugtenberg, 2015).
This report will assess and analyze the market of horticulture agribusiness and will find the
opportunity for the BioAg in Bolivia. In addition, the report will also provide the strategies and
recommendations to enter the global market of Bolivia and discuss the appropriate and
inappropriate mode to enter.
Aim
The aim of the report is to provide an overall strategy to enter in the international market of
agribusiness and which will include the international corporate level strategy and Hofstede
insights dimension with the support of secondary source that includes the website of the
company and journal article and books.

BIOAG-STRATEGIC MANAGEMENT 4
BIOAG AUSTRALIA
Discussion of Australian horticulture focused agribusiness sector
Agribusiness industry is the key aspect of the Australian economy and contributes at the large
level. Most of the countries are focusing on the sector and seeking the attention of the
international market. The demand driven by the international rise which includes the rise in Asia,
and also India’s increasing food and fiber demand (Agribusiness Australia , 2018).
The blend of Australian horticultural action is dictated by the atmosphere, water accessibility,
soil type and vicinity to business sectors. Animals brushing are broad, happening in many
territories of Australia, while editing and cultivation are commonly gathered in zones moderately
near the coast. Horticulture sector includes vegetables, fruits, nuts, and other nursery products.
Horticulture industry runs in the highly competitive local and international market which is also
very labor intensive (Newsome, 2018).
Australian Horticulture and agribusiness industry is the sustainable producer of premium and
quality food due to its high standards at all level of Supply chain. It involves mostly small scale
family farms and gardens. Yet currently there are many organizations which are expanding the
business and operating at a large level (Department of agriculture, 2018). According to the
agriculture report of Australia, there is 58 percent of Australian utilize around 385 hectares
which include 0.53 for horticulture business, and around 59 percent population of Australia use
water extractions. Around 14 percent of agriculture products exported in 2016-2017 which
includes the horticulture products. The growth can be seen by the 2016-17 statistics where
agribusiness industry‘s contribution was around 2.7 percent to the GDP and with employment,
its contribution was 2.5 of overall contribution which is including 56700 employee employ in the

BIOAG-STRATEGIC MANAGEMENT 5
horticulture business. In the year of 2014 Australian horticulture separately had a gross value of
8.73$mn and leading on 3rd rank after meat and grain sector. When it comes to export around
18 percent of horticulture products exported in the year 2016-2017 (Tom Jackson, 2018).
Opportunities for the BioAg in Bolivia and other international market
There are many opportunities for the company in order to expand the business in the
international market. But in the recent research of Bolivia states that role of agriculture is
increasing in Bolivia as the majority of the population is living the rural areas and two fifth of the
population is engaged in agriculture and a large number of people having only source
agribusiness for their livelihood (New agriculturist , 2017).
But farmers of Bolivia are facing many challenges due to the lack of technologies and
fragmentation and deterioration of land. Hence there is a large opportunity for BioAg to establish
their technology and biochemical products. Climate changes and dry and hard land also a
challenge for the Bolivian (McKay, 2018).
In the nearby area of Bolivia, Altiplano livestock yields and reproductive performance are
generally low due to poor livestock support services in respect of technical assistance and
training and other veterinary services (New agriculturist , 2017). Therefore Bolivia is the most
opportunistic country for the biological agribusiness.
Apart from Bolivia, the international agriculture biologicals market is valued around 6.75bn in
the year 2017 and this is estimated to grow at CAGR of 13.77 percent from 2018 to 2022
(Agricultural Biologicals Market, 2018). The company has the largest opportunities for making a
profit these rise of the market share of the agriculture business.

BIOAG-STRATEGIC MANAGEMENT 6
The adoption of biological and microbial pesticides which includes bio stimulants and other
livestock nutritional products, by end customer has resulted in the exponential growth of the
horticulture and agriculture biological market.
Overall food and agribusiness all over the world are accounted approximately 5$trillion and is
improving sizable productivity since 50 years and if these trends continue, the caloric demand
will raise minimum 70% and crop demand for animal feeding and human consumption will also
increase by 100% and 20% demand will rise for land degraded. This growing demand will create
many opportunities for BioAG (Lutz Goedde, 2015).
International corporate level strategy for BioAG
The company has to integrate its business in the market of Bolivia as there is the larger number
of opportunities to grow the agribusiness and this would need to make strategic changes and
achieve the overall development and strategic growth of business in Bolivia.
The potential for expanding the creation and efficiency of these yields is incredible. Be that as it
may, in view of prevalence of poor innate ranchers who have been relying upon Jhum
development, absence of infrastructural offices, less mindfulness about innovation the
profitability of harvests in the area of Bolivia is incredibly low. Hence it is important to create
awareness and so that they can contribute in the providing quality of food and to make these
happen the company has to make mini mission and strategies. Here are international corporate
level strategies (Chin, 2016)
Global strategy
The first activity in the strategy for the integrated development of horticulture is determining the
way to create awareness and provide modified products according to Bolivia’s climate and the

BIOAG-STRATEGIC MANAGEMENT 7
land of quality. About these technologies and communicate its benefits and provide appropriate
and variety of production technology which are most appropriate for the specific agro-climate
condition of country’s region.
Transnational Strategy
With this, the company has to increase the quantum of productivity and production of the
horticulture production which can be utilized by every region in the same way. The company has
to provide a better supply of quality material at a reasonable cost to all the farmers, utilization of
more resource of land, watershed management, and distribution of appropriate production
technology and techniques to the farmers, provide diverse products through training, establish
and delivery of requisite material information and advancement and promotion of coordinated
vermin the executives; utilization of bio-composts and automation. BioAG facilitates the
infrastructure for pre and post-harvest management, its promotion and export. And for this
BioAG has to implement the NHB, DMI, NCDC, NAFED, and NAFED also these can be
implemented with the existing outlays or enhanced outlays as well.
Multi-domestic strategy
This strategy can be less useful as every country has different market and culture. Bolivia has a
different market as Australia and NZ. And nature of the buyers is also different; hence the
company has to change the strategy.
Different mode of Entry in the international market of Bolivia
Some authors state that companies’ choice of the modes of entry to the international market
depends on the many diverse factors such as ownership advantages, location advantages and
globalization advantages. There are several modes of entry such as exporting, licensing, joint

BIOAG-STRATEGIC MANAGEMENT 8
venture, FDI, Strategic Alliance and mergers and acquisition (Benmamoun, 2019).
One of the least expensive modes of the international market is exporting domestic products to
the international market. The company operating business in the NZ that established in 2007.
Before that, the company was operating in Australia only. In NZ the company is successfully
operating its business as NZ is a hub of the agriculture business. There are two types of mode
which company can utilize to enter in the international market.
Inappropriate mode of entry Exporting
The Company can export its products where the least quantity of agribusiness exists. As this
takes more money to license in other countries, it would not be beneficial of the company to
exporting in Bolivia as export leads to an increase in the cost of production; it well increases of
cost of products in return (Hofer, 2018). Bolivian cannot afford the expensive products as the

BIOAG-STRATEGIC MANAGEMENT 9
majority of people living below the poverty line (Nicoletti, 2018). Countries where the least
agribusiness exists such as Germany and Belgium and the UK and in these countries Biotag can
offer to export as it is least expensive and can earn cost benefit. The company can export its
access of products to these countries and can add surplus.
Appropriate entry mode of Licensing
According to this mode, the company has to give permission to conduct the business on the
behalf of the company and sale legally protected products of the company with the trademark or
copyrighted. The company is operating its business with this entry mode in the NZ and earning
benefits. It is an easy method to enter the international market and the least expensive. The
company does not need to invest more money to enter in Bolivia with this mode of international
entry. Bolivia is facing many challenges in agribusiness such as poor management and
reproductive system, climate change and dry land. It is difficult to assume the quality of land and
courtiers environment. And in order to do that the company has to determine the quality of land
climate change issues and to provide solutions they has to visit the places know the culture and
people.

BIOAG-STRATEGIC MANAGEMENT 10
Conclusion
This can be concluded that BioAg is the largest biological company of Australia and also
operating the business in NZ. The company manufactures and supply biological products to
farmers and contributing to the Australian agriculture industry, which is becoming one of the
main pillars of the Australian economy. There are many opportunities for the company with a
growing demand for agribusiness in many Asia countries. And the trend of adoption of the
biological products) includes biologically-active solid and liquid nutrient and livestock nutrition)
also growing. The agriculture biological market also estimated to grow around 13.77 percent in
the coming years 2018 to 2022. In order to expand the business, the company has to develop its
technology and products diversification and aware farmers and communicate benefits of the
biological products so that they can adapt easily. It will help the company to enter in the
international market through the many entry modes such as exporting and licensing.
Recommendation for cross culture strategies and Hofstede theory
According to the UN’s food and agriculture organization, Bolivia is currently becoming the
largest producer of the world there for there are many opportunities for BioAG to expand the
business in Bolivia. As the largest population are uneducated and live below the poverty line.
According to Hofstede dimension, of power distance Bolivian believe in the hierarchy and
people with more power have more benefit. The company has to raise awareness about the
products in a hierarchal manner to the farmers. With Uncertainty avoidance Bolivian do not like
uncertainty hence it is important to keep in mind that the company has to clear the quality test of
the product also they must show the proof of better result of the utilization if the products
(cop2013bo1, 2013). They follow the rules and regulations, hence the company has to provide
quality and legal products so that they can easily trust and utilize the products. With the

BIOAG-STRATEGIC MANAGEMENT 11
dimension of Indulgence Bolivian possess positive attitude to spending money and having fun
(Raineri, 2018). According to Hofstede dimension of individualism they believe in collectivism
and use to work in groups the company as to show that how communities will have benefit after
utilizing the products. With the dimension of long-term orientation Bolivian sustain follow their
strong tradition also they are less wealthy, therefore they have less opportunities to save for
future and wants instant result. Therefore BioAG needs to show some instant benefits of the
biological products so that people can easily adopt them (cop2013bo1, 2013).
Apart from the culture, an environment research states that Bolivia facing the deterioration and
fragmentation of land, hence the company has to develop the technology to make land more
usable. The farmers of Bolivia facing many challenges as they often face climate change the
company has to develop and provide technologies for agro-climate conditions so that they can
utilize these chemicals and earn the benefit. The company also has to increase the diversification
of its product so that they can provide a solution for every challenge Bolivia is facing. These
challenges include poor natural resource management and lack of adequate technologies and
limited rural infrastructure. Around 60 percent of farmers live in the Altiplano as the region has
least fertile soils and the east rain. The company has to provide maximum profitable fertile soils
so that the hard land can be used by farmers (New agriculturist , 2017). Bolivia is the largest
producer of the Brazil Nuts and these are the only source of living of many people of Bolivia.
Due to deforestation the nut trees are cut down and stop giving fruits as they only grow in natural
forest. Hence the company has to develop such chemicals or opportunity so that the Brazil nut
tree can grow in normal rural land. And many people can save their livelihood. Result it will
bring many other opportunities for the company as well.

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Bibliography
Agribusiness Australia , 2018. Agribusiness Australia. [Online]
Available at: https://www.agribusiness.asn.au/about-us/overview
Agricultural Biologicals Market, 2018. Agricultural Biologicals Market. [Online]
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100393324.html
Benmamoun, M. K. M. C. W. a. K. S., 2019. The impact of manager's animosity and ethnocentrism on
multinational enterprise (MNE) international entry mode decision..‐ Thunderbird International Business
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BioAG, 2018. About BioAG. [Online]
Available at: https://www.bioag.com.au/about-bioag/
Chin, T. T. S. F. K. Z. W. Y. D. L. R. a. T. R. 2. e., 2016. EO-Performance relationships in reverse
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Available at: https://cop2013bo1.wordpress.com/cultural-description/
Department of agriculture, 2018. Horticulture fact sheet. [Online]
Available at: http://www.agriculture.gov.au/ag-farm-food/hort-policy/horticulture_fact_sheet
Hofer, K. a. B. A., 2018. A Cross-Country Perspective Market Entry Strategies, Innovation and
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Available at: http://www.new-ag.info/en/country/profile.php?a=3155
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Australasian Agribusiness Review,, 26(1673-2019-707), p. 1.

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Nicoletti, A. G. L. C. C. C. C. P. S. V. E. R. M. D. M. M. C. M. Z. M. a. B. A., 2018. Treating people with
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