Strategic Management Plan for Grain Crops Company in India

This paper has been elaborated on providing a strategic management plan for Grain Crops Company. The company has decided to expand its business to international market and the chosen country for this purpose is India. India is a multi-cultural and diverse nation. It has discussed different international strategies that the company could make use of to enter into the present Indian market. It has also conducted a PESTLE analysis for agribusiness in India in order to assess the opportunities present there for Grain Crops Company. Furthermore, it has also identified the best suitable mode of entry and most inappropriate one for the company to Indian market. The paper has also provided some recommendation that would help the firm to enhance its business growth in India.

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STRATEGIC MANAGEMENT
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Executive Summary
This paper has been elaborated on providing a strategic management plan for Grain Crops
Company. The company has decided to expand its business to international market and the
chosen country for this purpose is India. India is a multi-cultural and diverse nation. It has
discussed different international strategies that the company could make use of to enter into
the present Indian market. It has also conducted a PESTLE analysis for agribusiness in India
in order to assess the opportunities present there for Grain Crops Company. Furthermore, it
has also identified the best suitable mode of entry and most inappropriate one for the
company to Indian market. The paper has also provided some recommendation that would
help the firm to enhance its business growth in India.

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Table of Contents
Executive Summary...................................................................................................................1
1. Introduction............................................................................................................................3
2. Discussion..............................................................................................................................3
2.1. International opportunities for the company in India......................................................3
2.2. International strategies suitable for the company............................................................5
2.3. The most appropriate mode of entry to the international market....................................6
2.4. The most inappropriate mode of entry to the international market.................................7
3. Recommendations..................................................................................................................7
4. Conclusion..............................................................................................................................9
References:...............................................................................................................................10

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1. Introduction
There is a rise of intense changes in the global agriculture business. This in turn has
yield a new market reality which is more competitive and more complex than ever before.
Over the last three decades, there has been an occurrence of dramatic structural changes in
the agriculture sector worldwide. All this is because of economic liberalisation, increasingly
shifting societies, globalisation, environmental regulation and the reduced protection of the
agricultural markets. These changes have directed the emergence of the new customer bases
and the consumption behaviour patterns for the agricultural supply manufacturers. In order to
confront all these changes properly, a new perspective on the practices of the agribusiness
and strategies is very important (Ang, Benischke and Doh 2015). It is to note that strategy
refers to the potential of a company to position itself in the business market in a manner that
best suits its competences and resources. However, the main aim of this report is to focus on
the understanding of Strategy implementation process. The chosen corporation for this
purpose is that of Grain Crop Company. It shall provide a brief discussion on this Australian
Food focused Agribusiness sector and identify the international opportunities present for it in
the chosen international market. The chosen market for this organisation is India. With the
same, this report shall also discuss on the different international strategies that it could make
use of to enter into the international markets. Furthermore, this paper shall also shed light on
the most appropriate and inappropriate mode of entry to the international market for Grain
Crop company. Lastly, it would provide few recommendations for its future strategic
direction in the chosen international market.
2. Discussion
2.1. International opportunities for the company in India
India has huge opportunities to do agriculture business. The country is owned with a
varied ago-climate that facilitates the production of tropical, sub-tropical and temperate

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agricultural commodities. It is also to note that there is an increasing demand for agricultural
inputs such as fodder and feed, bio-fertilizers and inorganic fertilizers.
PESTLE analysis
a) Political analysis-
 RVKY (Rashtriya Vikas Krushi Yojana)
 National Research Centre for women in agriculture, Bhabaneshwar, Orissa
(Altenbuchner, Vogel and Larcher 2017)
 Fasal Bima Yojana
b) Economic analysis-
 The impact of GST
 Short crop loan with rate of interest of 7%
 24% increase in the budget for agriculture, rural and the allied sector
c) Socio-cultural analysis-
 Suicide cases of farmers
 16% of the world population belongs to India where there is only 2.4% of land
resources
 Using the agriculture land for non-agricultural purposes
d) Technological analysis-
 There is a bilateral agreement with Brazil and Israel in terms of technological
advancement in the field of agriculture.
 E-chaupal by ITC
 Farm machine testing and training istitutes
 Kisan Call Centre in India for farming advice and technical support.
e) Legal analysis-

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 The destructive insects and the pest act of the year 1994 in order to ban the disease
from other countries.
 The fertilizer movement control and the pest act of 1994 for restricting the
unauthorised international movement of fertilisers and other agriculture related
chemical products (Islam, Bint-E-Naser and Khan 2017).
 The fertilizer control under the clause 111 of the Essential Commodities Act of 1955
for controlling price of Ammonium sulphate, calcium ammonium nitrate and the
urea.
f) Environmental analysis-
 There is only 40% of the irrigated farmland
 Dependence on the monsoon.
2.2. International strategies suitable for the company
It is to note that at the corporate level, companies choose one of the three global
strategies to enter into international markets and they are of- multi-domestic strategy, global
strategy and the transnational strategy. All these three strategies reflect the trade-offs in
between the global efficiency and the local responsiveness. In order to gain a competitive
edge, the companies have to devise strategies for taking the best advantage of the core
competencies of theirs which are difficult for their competitors to copy in any way. However,
the most suitable strategy for Grain Crop Company would be that of the transnational
strategy. The transnational strategy combine the best of the global and the multi-domestic
strategy in order to get local responsiveness and global efficiency (Wilkins and Huisman
2012). It is to mention that the global strategy is controlled and is centralised by the home
office and it seeks to increase the global efficiency of the companies. On the other hand, the
multi-domestic strategy increases the local responsiveness by providing a decentralising

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authority of decision-making to the local business units in every nation so that they could
create the services and products that are optimised to the local markets.
2.3. The most appropriate mode of entry to the international market
The most appropriate mode of entry to the Indian market for the part of Grain Crop
Company is of Partnering. Partnering is almost a necessity while entering into the foreign
markets and some parts of the work such as Asian continents, it is very much required to
expand the business in effective manner (De Villa, Rajwani and Lawton 2015). It could take
many different forms from a simple co-marketing arrangement to a sophisticated strategic
alliance for the manufacturing process. It is also to note that partnering is a very useful
strategy in the markets like India’s where the culture, both social and business is
comparatively different than that of one’s own because the local partners could bring the
knowledge about the local market, the contacts and if in case chosen wisely, they could also
bring local customers. India is the seventh largest country in the world in terms of Gross
Domestic Progress (GDP) and also, it has a population of about 1.3 billion people (Tan et al.
2017). The Indian market is one of the most complex markets in the world for the best
companies, both national and international ones. The businesses like Grain Crop Company
that are with pre-determined mind-set along with less exposure to the international or
overseas markets might find the culture of commerce in India intimidating (Ripolles and
Blesa 2017). However, it is to note that it is very important for the company to identify a right
partner for itself in order to successfully navigate all the prevailing complexities of the local
business environment in India for new international entrants. These partner could give the
business a valuable market insights on the competition, the Indian political regulation as well
as the other important issues associated with any business (Marchi et al. 2014). With the
same, these partners could also help Grain Crop to get introduced to the Indian networks with
the reach to the target prospective clients present in India without much investment on the

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ground. However, it is also to mention in this context that for entraining into the Indian
market, the firm has to choose relationship modes of entry because in this entry modes they
have to make strategic alliances with other established firm in the area. In other words, this
modes of entry also help the firm to readily know about the customers' needs and demands
concerning food types.
2.4. The most inappropriate mode of entry to the international market
The most inappropriate mode of entry to the international market for Grain Crop
Company is that of franchising. It is to note that franchising as a market entry mode refers to
the mode where a company supplies that other companies with intangible property. This type
of international market entry mode is basically useful for the companies that are with a
repeatable business model such as the food outlets as these companies are very easily
transferrable to the other markets. There is a very high need for being very cautious while
going for franchising market entry strategy due to the fact that it could result in creating
strong competition in the field of franchise.
3. Recommendations
a) India is a diverse nation that surrounds different languages, identities, religions and culture.
It is very essential for Grain Crop Company to avoid making generalisation and assumptions
because the consumer behaviour in India and the local practices might differ substantially
from one religion to the other.
b) The company should take time to understand the industry and think very carefully
regarding how it could compete with the already established local companies of same
industry in Indian market.

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c) The Human Resource department should be carefully make decisions in choosing their
business partners and hiring people who world understand the Indian culture and the Indian
market.
d) It is also very necessary to consider how the investment in India market would influence
the different areas of the business, comprising of the company’s finances, supply chain,
management and other areas.
e) The company should critically assess all the associated risks along with the anticipated
benefits before entering the international market.
f) The company must gain the ability to understand the different strategies and market
towards the specific regions as well as the income groups, i.e., the target segment.
g) The integration of the informal sector into the key business model that are followed by
attaining access to the relevant networks is required.
h) Adapting their business model is very important for the Grain Crops Company to succeed
in the international markets. By simply transplanting the prevailing business model to another
nation has resulted in many problems for many organisations in the present era. Grain Crops
should consider them as examples and must not direct itself to those paths.
i) The company should take a step to determine the method of investment that would work
the best while entering into an international market like India.
j) It is to be recommended that the firm has to take care of their range and quality of products
and also focus on their healthy products so that they can easily attract their targeted
customers. Besides this, if they make the differentiation in the market with quality food at
less cost which thus increases their customers base.

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k) To increase their positioning, they have to focus on refining, enhancing and improving
their investments in the field of promotion and advertising so that their vision can easily
reach to the consumers.
4. Conclusion
From the above analysis it is to be concluded that partnering is the best mode of entry
that can be used by the Grain Crop Agribusiness Company to enter into the Indian market.
However, it is also to note that no one entry mode is regarded to be superior to the other ones.
When a company is choosing to internationalise their operation, they would first require to
decide its optimal level of commitment, control, risk, flexibility and presence. The process of
choosing international market entry mode is quite difficult. The internal resources of the
organisation as well as its capabilities are the other vital consideration while selecting the
foreign mode of entry. Market of entry is one of the other important consideration for the
company while planning to internationalise the operations. PESTLE analysis of the foreign
market would help the company for gaining a better understanding of the international market
environment in order to operate successfully in the market. Hence, this report has also used
the PESTLE tool to assess the international business opportunities for Grain Crop in India.
Lastly, there are few recommendations provided for the part of Grain Crop in order to enter
into Indian market. It is to note that the scenario of Indian market has witnessed a significant
and drastic change after the globalisation and the entry of the international organisations and
businesses have made the customers the king who rule the market. Therefore,
recommendations are made keeping this things in mind to ensure that the company is well-
prepared to successfully rule over the current Indian market scenario.

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References:
Altenbuchner, C., Vogel, S. and Larcher, M., 2017, October. Effects of organic farming on
the empowerment of women: A case study on the perception of female farmers in Odisha,
India. In Women's Studies International Forum (Vol. 64, pp. 28-33). Pergamon.
Ang, S. H., Benischke, M. H. and Doh, J. P. 2015. The interactions of institutions on foreign
market entry mode. Strategic Management Journal, 36(10), 1536-1553.
De Villa, M. A., Rajwani, T. and Lawton, T. 2015. Market entry modes in a multipolar
world: Untangling the moderating effect of the political environment. International Business
Review, 24(3), 419-429.
Islam, M.N., Bint-E-Naser, S.F. and Khan, M.S., 2017. Pesticide Food Laws and
Regulations. In Pesticide Residue in Foods (pp. 37-51). Springer, Cham.
Marchi, G., Vignola, M., Facchinetti, G., and Mastroleo, G. 2014. International market
selection for small firms: A fuzzy-based decision process. European Journal of
Marketing, 48(11/12), 2198-2212.
Ripollés, M., & Blesa, A. (2017). Entry mode choices in the international new ventures
context. A study from different theoretical perspectives. International Entrepreneurship and
Management Journal, 13(2), 465-485.

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Tan, K.G., Gopalan, S., Sharma, J. and Tan, K.Y., 2017. India as the World’s Fastest
Growing Emerging Economy: How Singapore Can Be Part of This Narrative?. Prepared for
presentation at the 10th India-Singapore Strategic Dialogue.
Wilkins, S. and Huisman, J., 2012. The international branch campus as transnational strategy
in higher education. Higher education, 64(5), pp.627-645.