Strategic Management for Inghams Enterprise: International Opportunities and Strategies

This study focuses on the strategic management of Inghams Enterprise, a poultry producer in Australia and New Zealand, and explores international opportunities and strategies for expanding their business in other geographic locations. The study discusses the Australian food focused Agribusiness sector, identifies international opportunities, and discusses different international strategies suitable for the chosen Agribusiness. The study also discusses the most appropriate and inappropriate mode of entry to the international market for the chosen agribusiness and provides recommendations for the future strategic direction.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Discussion of Australian food focused Agribusiness sector:......................................................2
2. Identify international opportunities for chosen food focused Agribusiness:...............................3
3. Discuss different international strategies suitable for chosen Agribusiness:...............................4
4. Discuss the most appropriate and inappropriate mode of entry to the international market for
chosen agribusiness:........................................................................................................................6
5. Make recommendations for the future strategic direction...........................................................7
Reference List:...............................................................................................................................10

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1. Discussion of Australian food focused Agribusiness sector:
As per Australia’s diverse climate rainfall pattern and temperature fluctuation
Agribusiness leaves a major impact on the overall business economy of Australia. The
geographic isolation of Australia has enabled the business experts in high quality of agricultural
production. Rendering continuous innovation on in farm machinery, systematic plant and proper
animal breeding program has made the Australian agribusiness world-class commodities to
market. This very specific study has focused on Inghams Enterprises, one of the most
recognizable poultry producers of the country. This particular brand is primarily owned by TPG
capital which is constituted with 8000 employees within services (Inghams 2018). Along with
100 different locations this organizations has established their business process in the realm of
both Australia and New Zealand.
Apart from poultry supply Australia is possessed with grain and oilseeds business,
aquaculture and fisheries dairy technology and services, fruits and vegetables and so on. As per
statistical scenario, Australia imports more than 90 fruits and vegetable items to other country
which enormously enhances the economic growth of the country. It is observed that Australia’s
vegetable industry generated around Aud$3.8 billion for the Australian economy and exported
around Aud$248 million. Amongst all these, poultry business scope in the market of
agribusiness industry has left a significant impact on the overall growth of the country.
Therefore, Inghams Enterprise has aimed to expand their entire process in other geographical
backgrounds as well.
The company delivers frozen chicken as well as turkey products in the market of
Australia and New Zealand. Diestre, Rajagopalan and Dutta (2015) opined that after rendering a

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satisfactory capital in supplying poultry services the organization has focused on enhancing their
revenue growth by expanding the entire business process in other geographic locations. Fresh
whole chicken, fresh chicken breast bone, boneless chicken, chicken breast tenders, Fresh turkey
mince, fresh turkey wings, drumsticks are the core products with which Inghams Enterprise is
running their business methods. This company is already possessed with a big hold in the market
of Australia and New Zealand. Therefore, Inghams Enterprise primarily aims to expand their
business in the market of China as well for rendering more business profitability.
2. Identify international opportunities for chosen food focused Agribusiness:
There are several ways based on which a company can place their brands or services in
the international market. The ways include export or import, licensing, franchising and
outsourcing. Laufs and Schwens (2014) opined that Licensing is the process of making
contractual agreement between two companies. With the help of this process one company can
use the brand name, identity and business property. In order to follow licensing strategy the
organization does not have to form new business set up. If the business organization is not
efficient enough in affording money for new business set up, the company can follow import
export policy as well. With the help of import policy the organization can bring raw material in
affordable price range. As a result, the business experts can reduce the product price that
ultimately reflects on business success (De Villa, Rajwani and Lawton 2015). On the other hand,
by exporting products in other geographic location the organization can get the scope of
expanding their entire process of business in multi-national countries. Products can be introduced
in the international market. Consequently, the number of target audience becomes high with the
help of which organization can gain immense profit level.

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As opined by Sleuwaegen and Onkelinx (2014), Franchise is the process that can be run
under a certain brand name. After opening a franchise the business experts can gain instant brand
name, recognition sufficient work force strength and so on. As a result, the new business set up
does not have to face challenges in gaining new recognition of their brands. Sometimes, it is
observed that business experts are not compatible enough to form a new market entry in
business. In this kind of situation, the business experts prefers on taking Franchise based on
which entire process of business can be expanded in abroad. As a result, the global customers
can get the opportunity of purchasing brands and it services. Outsourcing is one of the most
innovative processes of gaining international opportunity. Kang and Montoya (2014) stated that
in quest of expanding the entire business process in other geographic areas, the business experts
intend to focus on selecting third party for dealing the customer support system in terms of
certain amount of money. As a result, the organization does not have to invest additional
resources for expanding business. By giving responsibility to the third party, the business experts
can get sufficient business set up, work force strength and company resources (Eriksson et al.
2015). With the help of specific skill and competency the third party can communicate with the
customers and gain profit level.
3. Discuss different international strategies suitable for chosen Agribusiness:
Hunt (2015) opined that the overarching term international strategy primarily signifies
the process that helps the brands and its services in the global market so that international
customers tend to show their interest in purchasing products. Inghams Enterprise has already
gained immense popularity in the market of Australia and New Zealand for their superior quality
of products and fast service method. There are three major types of international strategies that
include multi-domestic, global and transnational. Multi-domestic business strategy aims to

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distribute its product in the foreign market though the products and services are based on local
customers. Weller, Kleer and Piller (2015) commented that the company is headquartered in the
original country but the business experts can expand new business set up in different foreign
regions. Global business set up implies that company while introducing the product in the
international market is following global strategy. The products are designed and distributed by
following these methods with the help of which global customers can purchase their brands and
services. In case of following global business strategy the business experts have to focus on
product diversification and market penetration (Powell 2014). As a result, customers from
various psychological backgrounds and attitudes can easily purchase the brands.
Transnational business strategy is the combination of both global and multi-national
strategy. With the help of an effective transnational policy business experts intend to follow
product distribution method as per the current market demand. If the economic strength of the
organization is not capable enough in launching the products in international market the business
experts would like to follow multi-domestic strategy (Kim, Min and Chaiy 2015). As a result, the
rate of product diversification will be decreased. Products and services will be made as per the
needs and demands of local customers. On the other hand, if the economic strength of the
company allows the professionals in rendering immense product diversity the business experts
follows global strategy (Ruhl and Willis 2017). Based on the work force strength and economic
set up of the organization would have to follow which particular international strategy they want
to select for expanding the entire business process.
Among three major international strategies followed by the business organizations
Inghams Enterprise tends to follow transnational strategy which is the combination of both
global strategy and multi-domestic strategy. When the organization will focus on selling chicken

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and turkey the business experts can focus two regional markets primarily that are Australia and
New Zealand. Hollender, Zapkau and Schwens (2017) stated that when the business experts
focus on increasing their product diversity for drawing attention of the global customers the
business experts follow global strategy.
4. Discuss the most appropriate and inappropriate mode of entry to the international
market for chosen agribusiness:
As per business structure of Inghams Enterprise, the most appropriate market entry
mode that the business experts should follow includes joint venture. Protsch and Solga (2015)
commented that joint venture is one of the most effective parts of partnership with the help of
which the organization builds a partnership with independently managed company. Two
companies by accumulating their resources tend to work together in the international market. In
order to make a new market entry as an individual Inghams Enterprise would have to face
immense challenges in creating new brand image and identity. Joint Venture would enable the
business experts of Inghams Enterprise in making partnership with an established company so
that Inghams Enterprise does not have to face new market threat.
In addition, by using this market entry mode company can use their accumulated
workforce strength. As a result, the customers can get an effective response from the service
providers (Aguirregabiria and Suzuki 2014). On the other hand, Inghams Enterprise would be
able to create their brand image by making partnership with company of China which already
exists in the market. While choosing joint venture strategy Inghams Enterprise may have to face
challenges in making strategic decision due to the cultural differences between two

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organizations. However, by implementing effective mitigation strategy and proper training and
development session the business experts can overcome the challenges.
The most inappropriate market entry mode that Inghams Enterprise should not follow
implies direct export. It is undeniable that by exporting products in other geographic location the
organization can get the scope of expanding their entire process of business in multi-national
countries. Melitz and Redding (2015) stated that products can be introduced in the international
market. Consequently, the number of target audience becomes high with the help of which
organization can gain immense profit level. However, in this case direct export method seems to
be inappropriate due to several reasons. With the help of direct export method the organization
do not get the opportunity to launch their brand in the other geographic boundary (Aguirregabiria
and Suzuki 2014). As a result, this particular method is considered as ineffective for gaining
image and recognition of Inghams Enterprise. In this kind of situation, it is however undeniable
that the organization should follow such kind of market entry strategy with the help of which the
business experts can get the opportunity to enhance brand image and identity.
5. Make recommendations for the future strategic direction
After evaluating the entire study it can be observed that Inghams Enterprise has aimed to
expand their entire process in other geographical backgrounds. After rendering a satisfactory
capital in supplying poultry services the organization has focused on enhancing their revenue
growth by expanding the entire business process in other geographic locations. Ruhl and Willis
(2017) opined that by exporting products in other geographic location the organization can get
the scope of expanding their entire process of business in multi-national countries. Inghams

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Enterprise has already gained immense popularity in the market of Australia and New Zealand
for their superior quality of products and fast service method.
After making in-depth strategic evaluation some of the major recommendations can be
provided:
 The organization could have chosen global strategy instead of choosing transnational
strategy. Transnational strategy restricts the brand in introducing their products in the global
market properly due to the lack of product diversity. Therefore, the organization should not
become limited within chicken and turkey suppliers. They can supply fishes, fruit and
vegetables as well in order to increase the number of target customers. In addition, global
strategy enhances brand image and reputation that reflects on organizational profitability as
well. Therefore, it can be recommended that global strategy can be implemented for
rendering more innovation and expansion within business.
 As the most appropriate form of market entry mode the study has focused to select joint
venture strategy. It is however undeniable that joint venture strategy is not effective for
gaining international image and reputation as the organization has to be dependent on the
strategic plan of an existing company. Therefore, it is however recommended that the
organization can buy a company with the help of which the organizational executives can
create a distinct image in the international market. On the other hand, Inghams Enterprise
would be able to create a new identity.
 As per the opinion of Powell (2014), in order to expand the business in international market
the business experts should focus on innovative promotional method by using social media
platform. With the help of effective promotional technique the organization can gain

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effective business image and reputation in the global market. People belonging to other
geographical backgrounds can easily get overview about the brands and services.

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history/ [Accessed as on 20th August 2018].

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Weller, C., Kleer, R. and Piller, F.T., 2015. Economic implications of 3D printing: Market
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