Strategic Management in Australian Agriculture Company

STRATEGIC MANAGEMENT
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Executive summary
This study focuses on strategic management in Australian Agriculture Company which can help
it to expand further and improved its operations. The main purpose of this study is to understand
strategic management which can help the company to expand its operations in international
market. Discussion regarding Australian Food oriented Agribusiness sector and identification of
internal opportunities for Australian Agricultural Company have been done. Issues like
decreased revenue and inadequate investments in scientific research have been highlighted in this
study. Moreover, discussion of internal strategies for Australian Agricultural Company and
inappropriate and appropriate mode of entry have been given. Recommendations for future
strategic directions for Australian Agricultural Company like increased investment in R&D
activities and hiring of skilled, manpower have been given.
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Table of Contents
Introduction......................................................................................................................................3
Findings and Analysis......................................................................................................................3
Discussion regarding Australian Food oriented Agribusiness sector..........................................3
Identification of internal opportunities for Australian Agricultural Company............................4
Discussion of international strategies for Australian Agricultural Company..............................5
Inappropriate and appropriate mode of entry...............................................................................5
Recommendations for future strategic directions for Australian Agricultural Company................6
Conclusion.......................................................................................................................................7
References........................................................................................................................................8
Appendices....................................................................................................................................10
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Introduction
Strategic management is important fo0r designing and planning strategies which can help in
counter risks and adequate implementation of resources for incurring profits. This study focuses
on the strategy of the Australian Agricultural Company, which is Australia's largest beef and
cattle producer, to expand further and earn maximum profits. It gives discussions on the food-
oriented agribusiness sector along with identification of internal opportunities of Australian
Agricultural Company. In addition, inappropriate and appropriate entry of the aforementioned
agribusiness has been evaluated. Recommendations have been given regarding future strategies
of agribusiness so that it can be able to recover from market fluctuations.
Findings and Analysis
Discussion regarding Australian Food oriented Agribusiness sector
Australia in recent times has a very highly technical and sophisticated industry and is one of the
most efficient and innovative industries. According to Richards, Kjærnes, and Vik (2016), its
farmers have remained competitive in the market through the country has the low level of
subsidies as compared to its major competitors. For Australia, food security is linked to political
stability, which has the potentiality of affecting national security. Strong reputation in
agribusiness and closer to growing Asian markets can help agribusiness companies to expand its
markets. The government encourages the agricultural companies to invest in science and
technology so that they can expand in international markets. Globally food-focused industry, it
has been assumed that Australian food sector will be able to deliver food as per market needs.
Though the country accounts for 3% of global food trade, its exports are more than A$30 billion
annually. However, the country has been able to produce only 2 of the Asian population.
Moreover, arable land is limited and severity and frequency of climate shocks are major threats
to the agribusiness sector.
(Refer to appendix 1)
Diseases like that of viral, fungal and bacterial results a loss up to 20% to 40% of horticultural
crops, 50% aquaculture, 10-15% grains along with more than 20% livestock. Carey et al. (2016)
argued that the agro-food industry faces high risks related to delivering of quality and production
of quantity which is unlike from other industries that operate in controlled and closed
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