Strategic Management the Australian Dairy Industry
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Added on 2020-04-15
Strategic Management the Australian Dairy Industry
Added on 2020-04-15
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Running head: STRATEGIC MANAGEMENTStrategic managementName of studentName of UniversityAuthor note
1STRATEGIC MANAGEMENTTable of ContentsIntroduction......................................................................................................................................3Section 1: Competitive environment...............................................................................................3PESTLE framework.....................................................................................................................4Five diamond theory....................................................................................................................6Section 2: Strategic landscape.........................................................................................................8Porter’s five forces applied within Australian dairy industry......................................................9Section 3: Competitive Advantage Quantitative Analysis............................................................11Recommendations......................................................................................................................13Conclusion.....................................................................................................................................14References......................................................................................................................................15
2STRATEGIC MANAGEMENTIntroductionThe report is prepared to analyse the market scenario of the Australian Dairy Industry andits competition with the global companies that provide liquid and desiccated products to thecustomers. The Australian Dairy Industry develops an effective network of Focus farms forsupporting the decision making of farmers and even allows the dairy farmers to compare thebusiness performance over time with ease and effectiveness. The Australian Dairy industryincludes various firms that provides good quality dairy products such as milk, cheese and othermilk made items that are consumed by customers all over Australia. The dairy industry ofAustralia has overcome various challenges and it has shown considerable growth in theproduction of milk, which has not only favoured the profitability gained by the industry but alsohas kept the costs under control for production of healthy dairy products (Ayağ, Samanlioglu andBüyüközkan 2013). The competitive environment will be analysed with the use of PESTLEframework while the 5-diamond theory can be used to identify the issues and challenges faced bythe dairy industry. The strategic landscape will be assessed with the use of Porter’s five forcesand few numeric data will show the industry’s performance related to the competitive advantageand disadvantages. Section 1: Competitive environmentThe PESTLE framework is used to identify the political, economic, social, technological,legal and environmental factors that can create an impact on the success of the Australian dairyindustry. The Australian dairy industry must continue its business operations and processeswithout co promising on the natural resources for enabling better market accessibility andenhance the brand image and reputation (Bakan and Doğan 2012).
3STRATEGIC MANAGEMENTPESTLE frameworkThe Australian dairy industry is part of the agricultural industry, which manages theproduction, delivery and consumption of dairy products like milk, cheese, butter and ice cream.The various factors that have impacted the functioning of the Australian dairy industry arepolitical, economic, social, technological, legal and environmental factors. Political The Government supports the dairy industry of Australia and this has helped in takingimmediate decisions regarding how to manage the dairy processing units and extract the bestquality milk. Certain laws, rules and regulations have been implemented to maintain safety,health and hygiene standards while managing the milk production In Australia. The Governmentrules and regulations have supported the management of livestock and ensured that properlicensing are managed too. With the management of political matters and support byGovernment and external bodies, the milk produced and the other dairy products can bedelivered to outside countries as well to generate more revenue and expand business (Bolorianand Faezeh 2014). EconomicDue to the increase in demand of milk products, the Australian dairy industry wants togrow for generating a huge annual turnover. The Shareholders and Government bodies madeinvestments to increase the production of milk and produce good quality dairy items consistentlyfor meeting the demands of customers. The rise and fall in inflation rate could affect the salesrevenue as well, which should be properly managed as well (Costa et al. 2013).Social
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