Business Analysis: Jasol Chemical Products, Sheraton Mirage Port Douglas, and AWB Limited

This assignment delves into the internal and external business environments of three Australian organizations: Jasol Chemical Products, Sheraton Mirage Port Douglas, and AWB Limited. It utilizes Porter's Five Forces framework to analyze the competitive landscape of Jasol Chemical Products, exploring factors like threat of new entrants, bargaining power of suppliers, industry rivalry, bargaining power of buyers, and threat of substitutes. The analysis then shifts to Sheraton Mirage Port Douglas, examining how the resort can leverage cost leadership, differentiation, and focus strategies to enhance its competitive advantage in the premium tourism market. Finally, the assignment explores the potential for AWB Limited to implement a blue ocean strategy by expanding into a new market segment, offering secure storage facilities for farmers. By applying these strategic frameworks, the assignment provides insights into the competitive dynamics and potential growth opportunities for these organizations.

ASSESSMENT 1- BUSINESS ANALYSIS
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Table of Contents
Introduction......................................................................................................................................3
Jasol Chemical Products..................................................................................................................4
Porter Five Forces........................................................................................................................4
Porte five forces on Jasol Chemical Products..............................................................................4
Sheraton Mirage Port Douglas.........................................................................................................7
Three Generic strategy.................................................................................................................7
AWB Limited..................................................................................................................................9
Blue ocean strategy......................................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Internal and external are the two business environments which create a huge impact on the
organisation. Business analysis is conducted on the internal and external environment of an
organisation. Analysis of these environments is based on the specific tools which help to develop
strategies accordingly. This assignment is based on the analysis of different organisations based
in Australia with the application of specific tools.
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Jasol Chemical Products
It is a pharmaceutical company which is operating in the manufacturing of chemical products
used for pharmacy purposes. It is established in the year of 1934 in the South Australia which
has a tough market competition.
Porter Five Forces
Figure 1: Porter Five Forces Model
Source: Jurevicius, 2013
Porter five forces is an effective tool to analyse the competitive edge of the business (Dälken,
2014). It is used for industry analysis which helps to the organisation to develop a competitive
edge.
Porte five forces on Jasol Chemical Products
Threats of new entrants
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Different laws are applied by the government which creates problems for the market entry.
Specific procedures are followed by a group to form a manufacturing organisation in the
pharmaceutical sector.
Bargaining power of the suppliers
JASOL is a manufacturing organisation which has their own suppliers to develop products.
Production capacity and cost easily vary on the cost and quantity of the output production. Most
of the suppliers are having an influence on the cost of production.
Industry rivalry
Figure 2: Market share in the pharmaceutical industry
Source: Australian government, 2014
JASOL chemical is having a crucial market rivalry with Alphapharm, AstraZeneca etc.
companies which have captured high market share. Different companies are working in this
market segment which is creating a highly competitive environment in this industry.
Bargaining power of buyers
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JASOL keeps a distribution chain which directly does not effect the pricing. Cost factors in not
considered by the customers in the use of the products manufactured by the company.
Threats of substitutes
Different types of medications are the threat of the company which may influence their market
demands. Focusing on the products manufactured by the company, the high market rivalry is the
key factor which can produce substitutes of the products manufactured by the JASOL e.g.
antiseptic creams, stomach powder, DDT spray etc.
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Sheraton Mirage Port Douglas
Figure 3: Sheraton Mirage Port Douglas
Source: Chenu, 2018
It is a five start in north Queensland which is situated in the seaside town of Port Douglas
(Chenu, 2018). It has a long beach and swimming pool which is the key attraction. It provides a
proper luxuries treatment in the food and accommodation to guests.
Three Generic strategy
Cost leadership, differentiation, and focus are the set of the strategy which is used in the
organisation to enhance competitive advantage and develop better market performance
(Heracleous and Wirtz, 2012). All of these strategies are effective to develop a competitive edge
and to develop a better market position. It also supports the organisation to decline the market
rivalries and increases own market share of the company.
Cost leadership strategy
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It is a strategy which emphasizes to develop competitive edge within the organisation by
adopting low pricing strategy in the organisation (Heracleous and Wirtz, 2012). Sheraton Mirage
is working in the premium market segment of the tourism industry and many more other resorts
are working in the same industry. Southern Ocean Lodge, Saffire Freycinet, Qualia, Hamilton
Island, Pullman Banker Bay Resort etc. are the organisations which are working in the same
market segment. These organisations are creating a high market competition for the Sheraton
Mirage so they have to apply lower pricing strategy to beat the market competition. This lower
cost strategy is effective to develop a competitive advantage which is the much-needed thing for
the Sheraton Mirage. They have to develop a market analysis to analyse the price of packages
used by the competitors according to which they can determine the pricing strategy for the
Sheraton Mirage. It also supports the company to develop its market share by providing
equivalent services to the clients on lesser price packages.
Differentiation strategy
This strategy encompasses new product development, branding advertising, services, design and
quality which supports to the organisation to differentiate to own from market rivalry (Dirisu, et.
al., 2013). It can be effective for the Sheraton Mirage to develop its market position and share. It
is an organisation which is working in the tourism industry in the premium market segment in
which the resort has a huge need for uniqueness in the product, services, branding, and
promotions. In the case of Sheraton Mirage, it can develop a better package of tourist after
conducting a market analysis which helps them to analyse the packages provided by the
competitors. This new package has to contain some uniqueness campfire, tribe dance
performance etc. which can help them to attract the customers and differentiate themselves to
others. Sheraton Mirage can also use the unique promotions in which they can use social
marketing tool to communicate with the customers.
Focus strategy
It is a strategy which emphasises to focus on the niche market from which business can generate.
Basically, a buyer group is considered in this strategy and here in the case of Sheraton Mirage, it
can focus on the young age people group to develop business. It can help to the resort to develop
focused services for particular market segment.
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AWB Limited
AWB is an international company which is working in the grain marketing (Bloomberg, 2018). It
is a private company which is working to buy access wheat from farmers and sells into the
market.
Blue ocean strategy
Blue ocean strategy encompasses the market in which contains the less market competition. This
strategy focuses on the growth of the business in the new market segment in which competition
is lesser (Kim and Mauborgne, 2014). It is an effective strategy which moves the business of the
company into a new a market segment. It focuses to develop a new business idea in which
company can make its business activities. AWB is working in the agriculture industry and it is
mainly working on purchasing of wheat. AWB has most globalised its business in most
significant wheat grower countries of the world. Currently, they are focused on the purchase and
sales of the wheat. They have their own storage areas to store wheat with proper safety.
According to this blue ocean strategy, company can turn up in a new market segment in which
they can provide secure storage facilities to farmers in their godowns. They can develop business
and earn profits by providing sheltered storage space to farmers. It is a type of new market
segment in which no other companies are working. Mostly big farmers are having their own
godown and storage space which is the main market rivalry.
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Conclusion
On the basis of above report, it has been concluded that Porter five forces is an effective strategy
for market analysis and also to develop areas to the competitive edge of the organisation. It
focuses on the industry in which a particular organisation is working. Set of three generic
strategies is used to develop a competitive edge in the company. Cost leadership emphasises to
decline the price of the current product and service. Differentiate and focus strategy is effective
to develop uniqueness in the product and services. Blue ocean strategy is effective to transfer the
direction of the business into no or less competitive market segment.
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References
 Australian government, 2014. Australian Pharmaceuticals Industry Data Card 2014
[Online]. Available at:
https://industry.gov.au/industry/IndustrySectors/PharmaceuticalsandHealthTechnologies/
Pharmaceuticals/Pages/PharmaceuticalsIndustryDataCard.aspx [Accessed on 16 April 2018].
 Bloomberg, 2018. Food products, Company Overview of AWB (Australia) Limited,
[Online]. Available at: https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=52257573 [Accessed on 16 April 2018].
 Chenu, M., 2018. Holiday in Australia, 9 Of Australia’s Best Beach Front Resorts
[Online]. Available at: https://www.australia.com/en/things-to-do/aquatic/9-of-australias-
best-beachfront-resorts.html [Accessed on 16 April 2018].
 Dälken, F., 2014. Are porter’s five competitive forces still applicable? a critical
examination concerning the relevance for today’s business (Bachelor's thesis, University of
Twente).
 Dirisu, J.I., Iyiola, O. and Ibidunni, O.S., 2013. Product differentiation: A tool of
competitive advantage and optimal organizational performance (A study of Unilever Nigeria
PLC). European Scientific Journal, ESJ, 9(34).
 Heracleous, L. and Wirtz, J., 2012. Strategy and organisation at Singapore Airlines:
achieving sustainable advantage through dual strategy. In Energy, Transport, & the
Environment(pp. 479-493). Springer, London.
 Jurevicius, O., 2013. Strategic management insight, Porter Five Forces [Online].
Available at: https://www.strategicmanagementinsight.com/tools/porters-five-forces.html
[Accessed on 16 April 2018].
 Kim, W.C. and Mauborgne, R.A., 2014. Blue ocean strategy, expanded edition: How to
create uncontested market space and make the competition irrelevant. Harvard business
review Press.
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