Business Environment of NAPCO

This report discusses the internal and external forces that influence North Australian Pastoral Company (NAPCO) and whether the internal environment can cope with external changes. It includes an analysis of Porter's Five Forces, NAPCO's internal forces, and the integration of theoretical research. The report also highlights the opportunities and threats faced by NAPCO and the need for operational flexibility to deal with climate change.

Running head: BUSINESS ENVIRONMENT OF NAPCO
Business Environment of NAPCO
Name of the student
Name of the University
Author note

1BUSINESS ENVIRONMENT OF NAPCO
Executive Summary
The primary purpose of this report is to discuss about the internal and external force that
influences North Australian Pastoral Company (NAPCO). It discusses in length regarding the
fact whether the internal environment can cope with that of the external changes that are
taking place within that of the industry. The report also integrates findings from that of
theoretical research that helps in gathering information about NAPCO.

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Table of Contents
Introduction................................................................................................................................3
External Forces influencing the company..................................................................................3
Internal forces.............................................................................................................................4
Internal environment and the external changes..........................................................................5
Findings from theoretical and empirical research......................................................................6
References:.................................................................................................................................7

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Introduction
Business Environment is indicative of all the internal along with the external factors
that affect the manner in which the company functions. Understanding in relation to the
environment in which a business operates is essential for the successful running of the
business. The environmental factors have a bearing in each aspect of the business like nature,
location, price along with the distribution system. North Australian Pastoral Company
(NAPCO) is a private company within that of the Australian cattle industry (Napco.com.au.,
2018) It was established in the year 1877 and the main business of the company pertains to
beef production. Key resources in relation to the company is a herd that consists of 200,000
cattle along with that of cattle stations that covers 5.8 million hectare of the land. NAPCO has
got 13 cattle stations across that of the Queensland along with that of the Northern Territory.
The report focusses on the external along with that of the internal forces that influence
NAPCO. The report analyses whether the internal environment of the company can adjust
with that of the external change taking place within the industry and in the environment.
External Forces influencing the company
Porters Five Forces
Threat of new entrants
The Australian government is instrumental in providing development funding and the
Australian government helps in facilitating management of issues that have national
importance. Government works very closely with that of the industry in relation to market
access and it helps in furthering interests in relation to the industry (Rolfe et al., 2016) This
makes the threat coming from that of new entrants to be low.
Threat of substitutes
Meat and Livestock Australia (MLA), JBS Australia, Australian Agricultural
Company are the main producer of red meat and hence the threat that NAPCO faces in
relation to this industry is quite stiff (Dizyee, Baker & Rich, 2017) The buyer can easily
switch from that of one company to that of another one.
Bargaining power of customers

4BUSINESS ENVIRONMENT OF NAPCO
The buyer switching cost is minimal which makes the bargaining power of the
customers to be very high. There are other firms in the market who produce beef and
information about these companies can be got from a wide variety of sources.
Bargaining power of suppliers
There are different meat suppliers like that of Holco and Sanger Australia that acts as
meat suppliers. They help in supplying the labour and raw materials in relation to beef
production and hence the bargaining power of the suppliers can be said to be very high.
Industry Rivalry
The intensity in relation to competitive rivalry can act as the major determinant in
relation to competitiveness of industry. NAPCO faces competition from that of other beef
producers in Australia and hence the industry rivalry can be said to be very high (Akhtar et
al., 2018).
Internal forces
NAPCO has purchased the backgrounding property by the name of Goldsborough and
the adjoining northern property that was called Mittiebah. NAPCO has also leased lands to
that of Maranoa along with that of Central Queensland. The beef prices being low along with
that of the decline in relation to Japanese exports are the internal forces that affects NAPCO.
NAPCO is responsible for controlling the product through different stages in relation to
production (Walsh & Cowley, 2016) It has got a supply chain that is vertically integrated
pertaining to that of high quality beef. NAPCO has 200,000 head of the cattle and the cattle
of NAPCO are famous for their superior quality along with that of quietness.
Strength- NAPCO has got a superior supply chain that is vertically integrated. The process
of composite breeding practiced by NAPCO helps in capitalisation of the preferred traits in
relation to cattle. The integration of livestock system with that of forestry can help in dealing
with the changes taking place and it can lead to superior farm productions (Pereira et al.,
2016).
Weakness- There are overhead expenses that NAPCO has to bear and immunizations of the
cattle has to be done on regular basis. A large amount of expense are spent on that of storage
buildings along with that of veterinary care in relation to the animals.

5BUSINESS ENVIRONMENT OF NAPCO
Opportunities- There are stations in different places like that of Alexandria, Boomarra,
Cungelella, Kynuna, Landsborough and Marion Downs. The stations are dispersed in
different places in Australia and the consumers can hence take the opportunity of buying
meat from these stations (Bray et al., 2016)
Threats- Beef export is supposed to decline further within that of 2012-23 on account of high
domestic production. Climate change is also posing to be a threat and it has been estimated
that climatic conditions will continue to grow warmer and will become dry thus posing a
threat for NAPCO
Internal environment and the external changes
The purchasing of property by NAPCO can greatly help the organization in making
use of the land in which they can stock modern machinery along with equipments. During the
drought conditions, one may have to start hand feeding that can help in ensuring pasture
survival. Large amount of land can hence help in this regard. The beef prices are low and this
is the reason why many companies are trying to enter the market so that it would be able to
make huge amount of profits. The vertically integrated supply chain of NAPCO would help it
to rise above the competitors in the long run and it can greatly benefit the organization (Cottle
et al., 2016) It needs to build on the arena of sustainable pasture management that can help it
to make profits. Nutritional management pertaining to the herd that is carried out at NAPCO
can greatly benefit the business of NAPCO. Composite breeding that is practised by NAPCO
will help in ensuring the superior quality of the health of the cattle that can give it an
competitive edge over that of the competitors. NAPCO has to cope with a lot of overhead
expenses like that of immunization and the active help coming from the Australian
government can help in providing the funding that can greatly benefit the business of
NAPCO (Willis, Nelson & Brown, 2017) The Australian government takes major steps for
managing issues that has got national importance and it can help the business of NAPCO to
make profits. NAPCO has got various stations spread across that of Australia that will help it
to move ahead of their competitors. There are other beef producers like that of Meat and
Livestock Australia and JBS Australia that pose a threat to the value of NAPCO and NAPCO
would be able to deal with this challenge with the help of the stations that are spread
throughout the length and breadth of Australia (Waage & Anderson, 2017). Climate Change
would pose to be a threat for NAPCO in the coming years. Changes in temperature along
with that of carbon dioxide level can affect the composition in relation to the pastures as it

6BUSINESS ENVIRONMENT OF NAPCO
can alter the dynamics in relation to species competition. Integration of livestock and forestry
can act as a sustainable method that can greatly benefit the business of NAPCO.
Findings from theoretical and empirical research
Introducing tropically adapted cattle breed within that of genetic improvement
program has helped in improving the fertility in relation to the animals of NAPCO. NAPCO
has been instrumental in developing that of composite cattle breed that can adapt itself to
environmental conditions. Slow growth in relation to cattle results from that of consumption
of the low digestibility can increase the rate of emissions intensity. By the plantation and
utilisation of the perennial fodder seasonal fluctuations can be reduced in relation to feed
supply that can help in improving the animal performance. The grain based rations help in
supporting higher rates in relation to growth and it can lower the daily rate in relation to
methane emission. The move made by NAPCO of minimum-tillage grain production can
reduce the element of carbon cost pertaining to grain production. The cattle in NAPCO are
kept under monitoring before that of feedlot entry and at time of feedlot finishing (Coleman,
2018) This can help in removing the underperforming cattle with the help of the supply chain.
It can help in increasing the feed-use efficiency and can thus help in lowering that of the
emissions intensity. These programs can help in improving animal profitability. Emissions
reduction along with that of sequestration opportunities are asked for in relation to general
farming (Napco.com.au., 2018). On account of climate change it will be important that
operational flexibility exists in NAPCO that can help it to successfully deal with the changes.
Practical understanding in relation to the biological process can help NALCO in the arena of
extensive rangeland grazing. It can help in facilitating the aspect of adaptive management
pertaining to emissions. Adaptive approach are required in the industry like that of efficiency
in relation to power generation that can help in dealing with that of greenhouse emission.

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References:
Akhtar, P., Khan, Z., Frynas, J. G., Tse, Y. K., & Rao‐Nicholson, R. (2018). Essential micro‐
foundations for contemporary business operations: Top management tangible
competencies, relationship‐based business networks and environmental
sustainability. British Journal of Management, 29(1), 43-62.
Bray, S., Walsh, D., Phelps, D., Rolfe, J., Broad, K., Whish, G., & Quirk, M. (2016). Climate
Clever Beef: options to improve business performance and reduce greenhouse gas
emissions in northern Australia. The Rangeland Journal, 38(3), 207-218.
Coleman, A. (2018). A forum that benefits the red meat industry and consumers. Farmer’s
Weekly, 2018(18006), 30-31.
Cottle, D., Eckard, R., Bray, S., & Sullivan, M. (2016). An evaluation of carbon offset
supplementation options for beef production systems on coastal speargrass in central
Queensland, Australia. Animal Production Science, 56(3), 385-392.
Dizyee, K., Baker, D., & Rich, K. M. (2017). A quantitative value chain analysis of policy
options for the beef sector in Botswana. Agricultural Systems, 156, 13-24.
Napco.com.au (2018). The North Australian Pastoral Company. Retrieved 24 April 2018,
from https://www.napco.com.au/
Pereira, M. A., Fairweather, J. R., Woodford, K. B., & Nuthall, P. L. (2016). Assessing the
diversity of values and goals amongst Brazilian commercial-scale progressive beef
farmers using Q-methodology. Agricultural Systems, 144, 1-8.
Rolfe, J. W., Larard, A. E., English, B. H., Hegarty, E. S., McGrath, T. B., Gobius, N. R., ...
& Musgrove, R. J. (2016). Rangeland profitability in the northern Gulf region of
Queensland: understanding beef business complexity and the subsequent impact on
land resource management and environmental outcomes. The Rangeland
Journal, 38(3), 261-272.
Waage, S., & Anderson, R. (2017). Recreating natural-resource-based businesses: sustaining
the land and communities in the US New Northwest. In Ants, Galileo, and
Gandhi (pp. 109-125). Routledge.

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Walsh, D., & Cowley, R. (2016). Optimising beef business performance in northern
Australia: what can 30 years of commercial innovation teach us?. The Rangeland
Journal, 38(3), 291-305.
Willis, M., Nelson, B., & Brown, K. (2017). Extension through Grazing BMP: An integration
of production and natural resource management. Rural Extension and Innovation
Systems Journal, 13(2), 156.