Sustainable Practices in Corporate Strategy

This assignment delves into the sustainable practices implemented by Silver Fern Farms, a New Zealand meat cooperative. It analyzes the company's commitment to corporate social responsibility and environmental sustainability, exploring how these initiatives influence its overall organizational performance. The analysis draws upon various strategic management theories and models to provide a comprehensive understanding of the relationship between sustainability and business success.

Running head: STRATEGIC MANAGEMENT AT SILVER FERN FARMS
Strategic management at Silver Fern Farms
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1STRATEGIC MANAGEMENT AT SILVER FERN FARMS
Executive summary
The purpose of this paper is to study the key concepts related to strategic management and the
various models and theories related to the same. The organization chosen for the analysis is
Silver Fern Farms, a company based in New Zealand which carries out operations across the
globe. Strategic management of the company would include corporate sustainability, social
responsibility and corporate governance; corporate responsibility and sustainability of an
organization refers to its moral and societal obligations to look into the various impacts that the
company can have on the surrounding communities, environment and the stakeholders. The
following paper studies these aspects of strategic management.

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Table of Contents
Introduction:....................................................................................................................................3
Discussion:.......................................................................................................................................4
Use of resource based view and external analysis in strategic management...............................4
Types of strategies used by Silver Fern Farms............................................................................5
Gaps in Silver Fern Farms Strategic management..................................................................6
Concept of corporate governance, social responsibility and sustenance.....................................7
Conclusion.....................................................................................................................................10
References......................................................................................................................................11

3STRATEGIC MANAGEMENT AT SILVER FERN FARMS
Introduction:
Strategic management refers to the process of formulating and implementing major goals,
which is usually executed by the top management of an enterprise. This would benefit the
organization as a whole (Hill, Jones & Schilling 2014, p. 6). Strategic management would
involve an analysis of the external and internal environments of the organization. This would
help the organization understand what strategies could be implemented and what strategies need
to be improved (Wheelen et al. 2017, p. 8). In the following paper, an in depth report has been
presented on the strategic management at Silver Fern Farms in New Zealand. It provides
information on the existing strategies at Silver Fern Farms and recognizes gaps as well.
Moreover, the company’s strategic management with respect to corporate sustainability,
corporate governance and corporate social responsibility has also been taken into account.
Silver Fern Farms is a leading organization on procurement processing and marketing
dealing in high end red meat proteins. The company is also responsible for exporting its products
to different countries around the world. The company was founded in the year 1948, and since
then it has earned a favorable reputation for producing top quality products
(Silverfernfarms.coop 2018). The company is steeped in traditional values and provides 100 per
cent natural beef, venison and lamb to top restaurants and small scale grocery chains all over the
world. Annually, the company reels in revenue worth 2.3 billion dollars, with more than 16,000
farmers working for them. The company has over 7000 employees working for them and holds
more than 30 per cent of the market share in New Zealand.

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Discussion:
Use of resource based view and external analysis in strategic management
The resource based view of the firm, also known as RBV, which has been around for
approximately two decades, has turned out to be one of the most significant paradigms in
strategic management. The theory was introduced by Jay Barney in the year 1991, where he
claimed that a company can gain competitive advantage in the market based on the capabilities
and resources that a firm has (Lin & Wu 2014, p.1). These resources are imperfectly imitable,
rare, valuable and definitely not sustainable. Such resources would refer to intangible and
tangible assets of a firm. These comprise organizational processes, routines, management skills,
information or knowledge in the possession of the firm. According to the resource based
viewpoint theory, the resources of a company determine its success or failure. These are the
measurements of success for the company (Grant 2016, p. 27). The resources in question would
remain in a latent form until and unless the firm deploys its capabilities in order to enhance
sustainability and competitive advantage. For example, in human resource management, it would
be important to emphasize on talent management. This would increase the value contribution of
the employees, thus improving the overall performance levels of the company (Armstrong &
Taylor 2014, p.4).
Similarly, to ensure that the enterprise gains a competitive edge, the managers would
have to alter their strategies to help the company adapt to a changing environment. The
performance of a company would depend on the environment it is operating in (Rothaermel
2015, p. 2). There are various aspects of the external environment, like social, political,
technological, economic and environmental factors which must be taken into account. This is
because the external environment of an organization would play a crucial role in determining the

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scope of the enterprise as a whole. In the case of Silver Fern Farms, the aforementioned factors
would have to be taken into account before one attempts to study the strategies implemented in
the organization. For example, in order to implement new strategies certain political factors like
political stability of the location, existing legal frameworks, trade regulations and meat
manufacturing regulations would have to be taken into account (Hill 2017, p. 13). Similarly, the
prevalent economic trends in the industry, the workforce available, labor costs and financial
market trends will have to be studied. It is also important to take a look at the demographic
factors like culture, class structure, education, health and other environmental factors which
could affect the meat industry in New Zealand.
Types of strategies used by Silver Fern Farms
An analysis of the operations at Silver Fern Farms would show the existence of a few types
of strategy which are found in strategic management. They are as follows:
 Competitive strategy – A competitive strategic management policy is followed by the
company. This strategy takes into account both external and internal factors affecting
competitiveness of Silver Fern Farms. The purpose of such a strategy is to ensure that the
company gains a competitive advantage in the market. In New Zealand, there are several
other companies that deal in procurement and processing of red meat. The company uses
policies of sustainability and corporate social responsibility to gain vantage over other
companies. Such a strategy would be implemented in order to lure in more customers and
also deliver top notch services to them, thus meeting customer satisfaction levels. These
strategies are usually customer oriented. This helps the company meet customer demands
and improve customer satisfaction. The aim of such strategic management is to build and
grow a competitive advantage that is sustainable on a long term basis.

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 Corporate strategy –In a company as diversified as Silver Fern Farms, it is important to
have a corporate strategy that takes into account its goals and objectives which must be
attained in the due course of time. On the other hand, a business strategy would address
strategic matters and assess the tactics and methods adopted by the company. Such a
business strategy, as seen in the case of Silver Fern Farms would make use of the
available resources of the company and its distinctive competencies which would be
aligned with the business strategies of the company (Epstein 2018, p. 23). In the case of
Silver Fern Farms, the focus of the corporate strategy would be on the innovative
techniques, integration, market development, product development, diversification and so
on.
Gaps in Silver Fern Farms Strategic management
To understand the gaps in strategic management, an analysis of the company’s strengths
and weaknesses has been done in the section below.
Strengths
 The company is supported by a strong work force. The employees of the company are
dedicated to the company’s growth, therefore making the human resources of the
company an extremely valuable asset.
 The company also has a high profitability rate. Owing to the fact that the company holds
a significant share of the market, the income generation rate has been high consistently
for the last few years.
 The performance of the company at the domestic level has been very strong which has
established it as a forerunner in the business.

7STRATEGIC MANAGEMENT AT SILVER FERN FARMS
Weaknesses in strategic management
 One of the major shortcomings in the strategy of the company is it’s over dependence on
raw materials. Thus, the power of suppliers is relatively high, making the company
entirely reliant on the availability of resources. The need of the hour is to develop a
strategy that reduces dependence on resources and makes the company sustainable on its
own.
 The Silver Fern Farms was operating a large scale business and bringing in profits in
billions of Australian dollars. The management was responsible for monitoring projects
worth millions of dollars which ranged from infrastructure to capital investments.
However, the executive committee at the company was lacking in vision that is required
to recognize the actual impact of such projects on the overall organization. A company
strategy should be such that the money invested by the shareholders help in mitigating
risks, enhancing efficiency and providing more returns on the investment.
Concept of corporate governance, social responsibility and sustenance
Corporate governance
Corporate governance refers to the board of directors along with the top management of the
company who are entrusted with the task of strategic management within the organization. These
people or teams are the foundational pillars for the whole organization and would be responsible
for ensuring the long term success of the organization (Tricker & Tricker 2015, p. 30). The
responsibilities of the governing body would comprise the following:
 Sustainability
 Strategic management of the company

8STRATEGIC MANAGEMENT AT SILVER FERN FARMS
 Succession planning
 Balancing risks and initiation
 Evaluation of performance
 Initiatives and monitoring progress
In Silver Fern Farms, there is a board of directors consisting of 10 members, all of whom
are responsible for devising and implementing strategies of the company. The purpose of the
board of directors is to protect and take care of the interests of the shareholders of the company.
Since the company is a corporation (a company having more than one person investing in it),
Silver Fern Farms has a board of directors. The role of the board of directors would include
taking care of shareholder interests and enforcement of strategic management. In addition, the
board of directors of the company is also expected to cater to the stakeholders, so as to facilitate
smooth relationships between the customer and the company and that between the employees
and the management.
Corporate sustainability and social responsibility
Nowadays, there is a growing need for corporations to incorporate social issues, along
with the interest of the stakeholders, in order to become better and more reliable corporate
citizens. It is thus imperative for the company managers to take into account environmental
impacts, government regulations, societal concerns, stakeholder pressures and so on (Eccles,
Ioannou & Serafeim 2014, p. 3). Accordingly, the management is expected to devise strategies
that would bring about changes to the existing mode of operations in the company. This paves
the way for corporate sustainability, which can be declared as one of the most important

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determinants of success of an organization (Schwartz 2017, p. 1). Silver Fern Farms has a robust
strategy for corporate sustainability; the reasons have been discussed below:
 There are several laws and regulations pertaining to sustainability in New Zealand that
every company must abide by. Non compliance with these laws and policies could be
punishable and could adversely affect the organization.
 More and more people are gradually becoming aware of the intricate relationship
between a community and an organization. It has been found that enterprises affect the
environment they operate out of, which could be positive or negative. In order for an
organization to function effectively, it needs to facilitate cooperation and positive
relationships with the community.
 Sustainability would improve the financial value of the corporation by reducing costs or
expenses and increasing the revenue output. With better relationships with the
community, the reputation of the company would improve which would result in
increased sales.
 Since companies like Silver Fern Farms have an impact on the environment and
surrounding communities, they have a moral and societal obligation to promote
sustainability.
For instance, Silver Fern Farms ensures that it reduces environmental impacts by taking
into introducing a number of policies and regulations which cater to the environment. In order to
support the farmers who provide them with the raw materials, the company equips them with
environmental and land toolkits. These help the farmers understand the environmental issues on
the farms. Such toolkits would also comprehensively assess the effects of farming on the land
and water resources. Using this, the farmers can educate themselves as to how to devise

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structured and effective environmental management plans. Similarly, the company strives up to
live up to the high standards of environment sustainability as mentioned by the government of
New Zealand. The company also has taken a number of measures which would promote health
and safety amidst the farmers. The farmers working under the banner of Silver Fern Farms would
be provided such benefits; this would set an example for other companies, demonstrating the fact
that sustainable farming, as a practice, is possible and achievable and at the same time, profitable
and rewarding.
Conclusion
To conclude, it can be said that strategic management would include all possible
strategies and plans that take into account each aspect of running an enterprise. This would
include human resources, finances, raw materials and so on. For a company like Silver Fern
Farms, the operations are largely dependent on raw materials and human resources, farmers in
this case. Thus, it is the responsibility of the management to ensure that these resources are
incorporated into strategic management, as proved by the resources based view of the firm
theory. In addition, a competitive strategy followed by the company would ensure that the
company stands above the rest in terms of competitors and gains a vantage over them. This
means that customers availing of the services would prefer the company in question over other
firms in the same field. The purpose of strategic management, to sum up, is to make sure that the
long term and short term goals of the company are fulfilled.

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References
Armstrong, M. & Taylor, S., 2014. Armstrong's handbook of human resource management
practice. Kogan Page Publishers.
In this reference, the authors speak about human resource as a management practice and
the role of business ethics in human resources.
Eccles, R.G., Ioannou, I. & Serafeim, G., 2014. The impact of corporate sustainability on
organizational processes and performance. Management Science, 60(11), pp.2835-2857.
Here, the authors talk about the importance of corporate sustainability and the need to
incorporate the same as a part of strategic management to improve the overall performance of
organization and to enhance productivity.
Epstein, M.J., 2018. Making sustainability work: Best practices in managing and measuring
corporate social, environmental and economic impacts. Routledge.
This reference talks about the impact of economic and social factors on the organization
and also speaks about the practices and strategies that could enhance the social, economic and
environmental consequences of an organization.
Grant, R.M., 2016. Contemporary strategy analysis: Text and cases edition. John Wiley & Sons.
This reference provides a discussion on the importance of external and internal
environmental analysis in strategic management and covers how external factors can affect an
organization.

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Hill, C.W., Jones, G.R. & Schilling, M.A., 2014. Strategic management: theory: an integrated
approach. Cengage Learning.
Here, the authors talk about the concept of strategic management as a whole and the
various theories and models pertaining to the same.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing function.
Macmillan International Higher Education.
This reference speaks about the strategic management which is necessary in an
organization, especially in the manufacturing sector.
Lin, Y. & Wu, L.Y., 2014. Exploring the role of dynamic capabilities in firm performance under
the resource-based view framework. Journal of business research, 67(3), pp.407-413.
The reference gives an in depth analysis of the resource based view of the firm theory and
explains how resources and capabilities in a firm can affect its profitability.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
This is an authoritative text on strategic management and explains all relevant theories
and models about the various kinds of strategies implemented by a company along with
corporate sustainability.
Schwartz, M.S., 2017. Corporate social responsibility. Routledge.
This reference focuses on the role of corporate social responsibility in a company and
how any organization s responsible for the environmental and social impacts that its operations
have on the surrounding communities.

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Silverfernfarms.coop. (2018). About Our Co-Operative » Silver Fern Farms. [online] Available
at: http://www.silverfernfarms.coop/about-us/about-our-co-operative/
This is the official website of the chosen company and provides information about the
company background, the social responsibility of the company and measures taken for corporate
sustainability and corporate governance.
Tricker, R.B. and Tricker, R.I., 2015. Corporate governance: Principles, policies, and practices.
Oxford University Press, USA.
` This reference talks about the role of corporate governance in ensuring the success of an
organization. The board of directors and the executive team, along with the top management at a
firm would form the corporate governance.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. & Bamford, C.E., 2017. Strategic management and
business policy. pearson.
This reference speaks about the role of business policies and its association with strategic
management. Here the authors discuss about the various aspects of strategic management.