Strategic Management of Oasis Horticulture Company
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This report provides a detailed description of the strategic management and planning of Oasis Horticulture Company in the Australian market. It includes an analysis of the external and internal environment, key revenue units, and recommendations for future development.
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Running head: STRATEGIC MANAGEMENT OASIS Horticulture Company Strategic Management 5/23/2019
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STRATEGIC MANAGEMENT1 Executive Summary The aim of this report is to provide a detailed description of the business processes of one of the well-known Australian horticulture business that is Oasis Horticulture Company. The report has presented a detailed description of the procedures adopted by the company. In addition to this, the report has provided a detailed description of the internal and external factors that are impacting the business. From the analysis, it has been identified that Oasis Horticulture is gaining the support of the Australian government because the business Horticulture industry has a major contribution to the economy of the country. On the other side, the government has also established different laws for the protection of labor and farmers involved in the industry. In the end, it could be concluded that the company can successfully expand its operations in different segments of the Horticulture industry with the use of its resources and competencies.
STRATEGIC MANAGEMENT2 Table of Contents Executive Summary...................................................................................................................1 Introduction................................................................................................................................3 Overview of Oasis Horticulture Company.............................................................................3 Business Revenue Units and importance of largest of these revenue units...........................4 Oasis Young Plant..............................................................................................................4 External Environment analysis of Oasis Horticulture Company...........................................5 Political Forces...................................................................................................................5 Economic Forces................................................................................................................5 Social Forces......................................................................................................................5 Technological Forces.........................................................................................................6 Legal Forces.......................................................................................................................6 Environmental Forces........................................................................................................7 Internal Analysis of Oasis Horticulture Company.................................................................7 Resources...........................................................................................................................7 Capabilities.........................................................................................................................8 Core competencies.............................................................................................................8 Competitive Advantage......................................................................................................9 Recommendations......................................................................................................................9 Conclusion................................................................................................................................10 References................................................................................................................................11
STRATEGIC MANAGEMENT3 Introduction The aim of this report is to present the strategic management and planning of Oasis Horticulture Company operating in the Australian market. Strategic management is very important for businesses that desire to sustain in the progressively competitive industry. A strategic plan works as a guiding map for an organization which takes into account the major priorities, the vision of the company and how the business will move forward (Steiner, 2010). This report is comprised of detailed aspects of strategic management of Oasis Horticulture such as external and internal environment analysis. In addition to this, the report has provided recommendations for the company for future development. Overview of Oasis Horticulture Company Oasis Horticulture is vastly motivated for offering landscapers and gardeners of Australia with innovative, worthy products for the healthier, sustainable, and a happier future. Oasis Horticulture Pty Ltd is one of the largest manufacturer and distributor of the bedding plants in the Australian market with a variety of more than 600 flowers, herbs, and vegetables sourced from the worldwide premium genetics. In addition to this, its portfolio of the product of pottedcropscomprisedofChillies,Tulips,Cyclamen,andotherbulbs,Poinsettias, Chrysanthemums, and Geraniums (Oasis Horticulture, 2019). Oasis Horticulture Company is owned by Consolo Limited and possesses the extended record growth and success in the industry of horticulture. The facility of production of the company is placed near Cranbourne in the Victoria and Springwood in NSW, with robust partnerships with some of the nationally wholesale growers, which makes Oasis the leader in the market. Besidesthis,therecentacquisitionsinwhichcompanyisinvolvedhaveresultedin consolidating its strong position and permitted the business to endure its drive in order to
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STRATEGIC MANAGEMENT4 create the quality plants by its efficiency of the production and united industry ability and understanding (Oasis Horticulture, 2019). Business Revenue Units and importance of largest of these revenue units The key revenue units of Oasis in whose production the company is involved are Floriana, Colourwave, and Woodlyn and carry out contract growing. The main customers of the company are supermarkets, landscapers, garden centers, government institutions, hardware stores and wholesale farmers present across Australia. Company is also linked with different growers for the supply of seedling plugs and young plants through the division of Oasis Young plants established in Springwood, NSW (Oasis Horticulture, 2019). Oasis Horticulture Company is very unique in nature because it is involved in the delivery of all aspects of the value chain from research and development, broadcast and manufacturing to wide-ranging sales and delivery solution. This has enabled Oasis Horticulture to be the leading organization in the industry reinforced by its devotion to constant development. The commitment of the companytowardsinnovation,researchanddevelopment,customerservice,and environmentalissueswillconfirmthesuccessfulaswellasprofitablefutureforthe stakeholders and customers of the company (Zoom Info, 2019). Oasis Young Plant Oasis Young plants are one of the revenue units of the company as it works thoroughly with an independently owned wholesale nurseries network in all the states and territories of Australia, as it ensures that all the plants are formed close to local retail outlets. Oasis Young Plants do not provide delivery of the products directly to the general public or retail outlets. The variety of plants are sourced by the company from Japan, South Africa, US, and Europe and from the Bonza Botanicals a joint ventured plant breeding business, which is involved in developing new flowering plants in Sydney (Oasis Horticulture, 2019).
STRATEGIC MANAGEMENT5 External Environment analysis of Oasis Horticulture Company Political Forces Political factors perform a major role in defining the factors that can impact Australian Horticulture businesses long term profitability. The Horticulture Industry of Australia is operating in floriculture, cultivation, agriculture, plants, etc. The government of Australia has allowed Horticulture companies like Oasis Horticulture to operate freely in the market and increase the consumption and production of different products by maintaining an effective supply chain. The farmers of Australia are known across the world for their spirit and aptitude to implement their system of production to grow safe, premium produce. The horticulture industry of Australia works in the extremely competitive market, at domestic as well as international level, and is said to be the third largest industry of agriculture of Australia (Hay, 2016). Economic Forces Australia holds a 13thposition in the list of the largest economy across the world. According to the report of 2017, it was identified that the Australian economy developed more than 2% and this growth is the positive symbol for the country (Cobb-Clark and Schurer, 2012). Even the Horticulture Industry of Australia is also growing at a fast pace. As in 2014-15, the gross value of the industry’s production was recorded to be around $8.73 billion and from which more than 85% of the production was sold in the domestic market (Australian Government, 2019). This reflects that there is increasing demand for the products of this industry and the government is making maximum efforts to encourage people to purchase the products of the domestic country in order to gain profit. Social Forces Australia possesses a smaller population in comparison to other nations. As of 2018, the population of the country was nearly around 23 million. Australia is said to be multiracial and
STRATEGIC MANAGEMENT6 multicultural. It has been identified that Agriculture in today’s environment is very cultured and extremely technical industry, and in the Australian market, it has been the most efficient and innovative industries (Australian Council of Learned Academies, 2015). Besides this, agriculture is considered to be fundamental for the survival of human and it is the key reasons for human cultivation in Australia. Technological Forces Australia is known across the world for its technological innovations. It has adopted a number of new technologies more often in comparison to other nations (Dodgson, Hughes and Metcalfe, 2011). The advancement in agriculture has been closely related to human development and the increasing population of the world. Innovation and Technology have reinforced those advances. From the Green Revolution established in the year the 1960s, the production of the crop has augmented two and a half times, from around 1.84 billion tonnes to 4.38 billion tonnes in the year 2007, which was cultivated on just 11% more cropped land (The Conversation, 2014). The agriculture industry has today become more technical and advance. Legal Forces The legal infrastructure of the country is very strong and effective. In order to encourage fair trading for businesses as well as customers, Australia has established fair laws of trading, consumer laws for protecting the rights of the customer, and competition laws in order to safeguard the rights of small business owners and eliminate monopoly power from the market (David, 2018). The legal structure of the country also safeguards the agriculture industry with the help of employment law for farmers.
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STRATEGIC MANAGEMENT7 Environmental Forces Australia is the most beautiful nation across the world with striking beaches, forests, and mountains. It is also known across the world for its biodiversity. The Horticulture industry has conventionally provided the people of Australian with the vegetable and fresh fruit needs, with a smaller export industry (Climate Change Research Strategy for primary industries, 2019). This industry has also contributed towards the beauty of the country with the production of a variety of nuts, vegetables, and flowers. Oasis Horticulture Company is contributing to the environment-development by producing a different variety of flowers in the market. Internal Analysis of Oasis Horticulture Company Resources Human Resource One of the key resources of Oasis Horticulture Company in the Australian market is the expertise and skilled human resource, which provide support to the company in successfully attaining the desired goals and objectives of short term as well as long term. The company hires employees on the basis of their skills and knowledge in the horticulture industry and what they can contribute towards the organization as well as society. Goodwill Oasis Horticulture Company is one of the well-known organizations of Australia operating in thehorticultureindustry.Thecompanyhassuccessfullyestablisheditspositionand reputation in the market with the help of its partners and social corporate responsibilities. The company is offering a number of opportunities to the farmers of Australia such that they can afford a superior livelihood (Oasis Horticulture, 2019). This has supported the company in establishing goodwill in the Australian market.
STRATEGIC MANAGEMENT8 Effective Supply Chain AnotherkeyresourcedevelopedbyOasisHorticultureCompanyinordertooperate successfully in the Australian market is its supply chain. The company has highly motivated suppliers as well as partners who work to attain the desired objectives and goals. The efficiency of the supply chain of the company is aligned with the procedures of the company to make effective use of its resources. Capabilities Support Farmers One of the capabilities of the Oasis Horticulture is to provide endless support to the farmers in Australia. The company is motivated towards offering landscapers and gardeners with quality and innovative products for their sustainable future. In addition to this, the company also try to offer maximum recognition as well as incentives to the farmers for their contribution to the success of the company (Oasis Horticulture, 2019). Aligning Strategies with Strategic objectives Oasis Horticulture Company is aimed towards being the market leader in terms of producing higher quality, volume green products produced with the major focus on the customer and designed with profitable and efficient processes (Oasis Horticulture, 2019). In addition to this, the company desire to offer increased returns to the shareholders. In order to attain this mission,thecompanyhascollaboratedwiththeskilledfarmerswhohavecomplete knowledge regarding the flower horticulture. Core competencies Maintaining Strong Relationship with Partners through an alliance
STRATEGIC MANAGEMENT9 One of the core competencies of Oasis Horticulture is to maintain a strong relationship with different organizations with which company has been involved in the Joint Venture. One of the joint ventures of Oasis is with Suntory Flowers Limited which is one of the well-known Japanese businesses (Zauba Corp, 2019). Competitive Advantage Research and development Oasis Horticulture Company has gained a competitive advantage in the Australian market through its effective research and development team. The research and development team of the company is comprised of different organizations that is Suntory Flowers Limited and Bonza Botanicals who are responsible for supporting the company in the development of different breeds. The joint venture between companies has pooled the resources of Suntory and Oasis. Bonza is responsible for Oasis to identify and develop different as well as unique varieties like Princettia (Oasis Horticulture, 2019). Recommendations From the above analysis, it has been identified that the company has successfully established its strong position in the Australian Horticulture industry. However, the company has just expanded its business in the flower horticulture which is resulting in restricting its hands towards growth in the worldwide market. Hence, considering the company's effective operations and successful planning, the company can expand its business in different segments of the horticulture industry such as vegetable and fruits. Getting involved in these segments will support the company in having an increased growth as well as the effect on the global horticulture industry. In addition to this, expanding operations in the global market will also result in supporting the farmers in living a superior life.
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STRATEGIC MANAGEMENT10 Conclusion The above report has discussed regarding the business processes of Oasis Horticulture in the Australian market and its key revenue units. The report has also discussed the external and internal forces that are impacting the business operations of Oasis Horticulture. From the analysis, it has been recognized that company is successfully operating in the flower horticulturesegment by offering a helping hand to the farmerswho have skillsand knowledge regarding the business such that they can earn a good livelihood for themselves and their families. In addition to this, the company has been involved in different joint ventures such that it can add more breeds into its product portfolio. From the external analysis, it has been identified that the horticulture industry is majorly contributing to the economy of the country due to which government also support these businesses. Besides this, the technological developments in the market are also being used in this industry for increasing production.
STRATEGIC MANAGEMENT11 References Australian Council of Learned Academies (2015)Australia’s agricultural future: the social and politicalcontext[online].Availablefromhttps://acola.org.au/wp/PDF/SAF07/social %20and%20political%20context.pdf[accessed 23 May 2019] AustralianGovernment(2019)Horticulture[online].Availablefrom http://www.agriculture.gov.au/ag-farm-food/hort-policy[accessed 23 May 2019] Climate Change Research Strategy for primary industries (2019)Climate change and the Australianhorticultureindustry[online].Availablefrom http://www.ccrspi.net.au/sites/default/files/publications/HAL-CCRSPI%20Climate %20Change%20Brochure%20-%20Final.pdf[accessed 23 May 2019] Cobb-Clark,D.A.,andSchurer,S.(2012)Thestabilityofbig-fivepersonalitytraits. Economics Letters, 115(1), pp.11-15. David,J.(2018)PESTELanalysisofAustralia[online].Availablefrom https://www.howandwhat.net/pestel-analysis-australia/[accessed 23 May 2019] Dodgson, M., Hughes, A., and Metcalfe, S. (2011) Systems thinking, market failure, and the development of innovation policy: The case of Australia.Research Policy, 40(9), pp.1145- 1156. Hay,A.(2016)AgriculturallawinAustralia:overview[online].Availablefrom https://uk.practicallaw.thomsonreuters.com/1-608-5865? transitionType=Default&contextData=(sc.Default)&firstPage=true&comp=pluk&bhcp=1 [accessed 23 May 2019]
STRATEGIC MANAGEMENT12 Oasis Horticulture (2019)Strategic Vision and Corporate Profile[online]. Available from https://www.oasishorticulture.com.au/corporate_profile[accessed 23 May 2019] Steiner, G.A. (2010)Strategic planning1sted. U.S: Simon and Schuster. The Conversation (2014)Agriculture in Australia: growing more than our farming future [online]. Available fromhttps://theconversation.com/agriculture-in-australia-growing-more- than-our-farming-future-22843[accessed 23 May 2019] ZaubaCorp(2019)OasisHorticultureLimited[online].Availablefrom https://www.zaubacorp.com/company/OASIS-HORTICULTURE-LIMITED/U01122RJ2010 PLC031666[accessed 23 May 2019] ZoomInfo(2019)OasisHorticulturePtyLtd[online].Availablefrom https://www.zoominfo.com/c/oasis-horticulture-pty-ltd/348503237[accessed 23 May 2019]