Report on Strategic Management Australia 2022

STRATEGIC
MANAGEMENT

1
Executive Summary
Demand for farm grain products is increasing and Australia has developed infrastructure for
development of new crops. In this report there is analysis of the Australian grain crop
industry as it contributes higher in the GDP of the nation. Wheat product is the major
contributor in this with 31.8 million tonnes or approx. 53% of the overall grain industry
tonnage. In this report there is illustration about the opportunities available with Grain Corp
Company in the international market. In this regards it was found that developing and
underdeveloped markets have huge potential for expansion. This report justifies the best entry
mode strategy of the company where it was found that export is the best strategy. However
the strategies such as Optimised supply chain, partnership, cost leadership strategy, digital
strategies, and product diversification can help in making this internationalisation process
easier.
Content

2
s
INTRODUCTION......................................................................................................................2
Australian grain industry............................................................................................................2
International opportunities for the firm......................................................................................4
International strategies...............................................................................................................5
Appropriate and inappropriate strategies...................................................................................6
Recommendation........................................................................................................................6
Conclusion..................................................................................................................................7

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INTRODUCTION
Grain industry in Australia is touching new heights and there are many companies emerging
in this industry and this has brought tough competition in the industry. There are many firms
that are also doing good as they have innovated their crops to become hybridised and this is
helping them to reach to new markets easily and reduce the problems related to the grain
crop. GrainCorp is a public limited firm that is registered in ASX (Grain Corp, 2019). This
company also sells its crop in Europe. This report discusses the Australian grain industry and
identifies the opportunities in this segment along with the international strategies suitable for
this business. This report also discusses appropriate and inappropriate mode of entry to the
international market. In the last section of the report, recommendation regarding future
strategic direction of the grain industry in Australia has been provided.
Australian grain industry
Agriculture becoming one of the major industries within Australia especially the grain
focused crops are helping the economy within Australia to boost. In the year 2016-17 the
production value of pulses, grains and oilseeds was approx. $17billion which is around 27%
of the total gross value of products that are obtained from the farm (Agric, 2019). In terms of
value and tonnage, Wheat remained to the most important product as it contributed around
$7.4 billion (44% of the total GVP for the grain industry) alone in the year 2016-17 and in
terms of production they have produced 31.8 million tonnes or approx. 53% of the overall
grain industry tonnage (Agriculture Victoria, 2019).
Figure 1: Major Farm income drivers