Strategic Management for The Australian Agricultural Company

Running head: STRATEGIC MANAGEMENT
Strategic Management
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1STRATEGIC MANAGEMENT
Executive Summary:
The report aims at putting forward a discussion on strategic management in the context of
Agrifood business sector. Here the chosen company is The Australian Agricultural Company.
The report commences with a discussion of the agrifood sector with a focus on the company
description, the external and the internal analysis. There report also identifies the
international opportunities of the sector long with a mention of the strategies chosen. There is
also discussion about the appropriate and the inappropriate modes of entry. The report also
provides an insight into the future strategic direction of the agrifood sector in chosen
international market.

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Table of Contents
Introduction:...............................................................................................................................3
Discussion of Australian Food focused Agribusiness Sector....................................................3
International Opportunities for the Chosen Agribusiness..........................................................6
Different International Strategies Suitable for Chosen Agribusiness........................................8
Appropriate and Inappropriate Mode of Entry for the Agribusiness.........................................9
Future Strategic Direction of the Selected Agribusiness in Chosen Foreign Market..............10
Conclusion................................................................................................................................11

3STRATEGIC MANAGEMENT
Introduction:
The aim of the report is to provide an insight into strategic management concerning an
agri food business in Australia known as The Australian Agricultural Company (AACo)
(aaco.com.au 2018). It represents an Australian company that owns as well as operates farms
and feedlots that covers close to 7 million hectares of the land in the Northern Territory and
the Queensland and only 1 percent of the land mass in Australia. As per the records of 2008,
the company had close to five hundred staffs members, operated two feedlots and twenty-four
cattle station that comprised of 565,000 beef cattle (aaco.com.au 2018). The company
commenced in the year 1824 through the Act of British Parliament and possessed the right of
selecting close to 1,000,000 acres in the New South Wales with the purpose of the
agricultural development. It is one of the oldest operating companies of Australia and
headquartered in Brisbane with a listing in the Australian Stock Exchange. The report
commences with a discussion of the agribusiness sector. The report focuses on identifying the
international opportunities for the chosen agribusiness along with suitable international
strategies. The report also puts forward a discussion on the most inappropriate and
appropriate and mode of entry of the agribusiness into the international market. There are
also recommendations on the futuristic strategic direction in chosen international market.
Discussion of Australian Food focused Agribusiness Sector
The Australian Agricultural Company (AACo) represents a public company holding a
rank of 741 amongst the topmost 2000 companies across Australia. The major revenue of the
company is generated through meat processing within the Australian industry. As per the
reports of 2018, the company generated revenue of $ 545, 616,000 that included sales and the
other revenue (ibisworld.com.au 2018). The Australian Agricultural Company (AACo) not
only produces but also sells beef. The company also operates cattle stations, feedlots and