Strategic Management of Oasis Horticulture Company

This report analyzes the strategic management of Oasis Horticulture Company in the horticulture industry, including international opportunities, strategies, and modes of entry. Recommendations for future growth are provided.

Running Head: Strategic Management
0
OASIS HORTICULTURE COMPANY
Strategic Management
6/20/2019

Strategic Management
1
Executive Summary
The report is prepared so that business analysis of one of the well-known company of Oasis
Horticulture of Australian can be done. The company has adopted several procedures which were
discussed in this report. There are the different international strategies and opportunities of the
Oasis horticulture has explained. The company is providing the healthier fruits and vegetables
which are digestive and healthier for the health so the Australian government is also supporting
the company and due to this, the horticulture industry has gained the big contribution to the
economy. There are some rules and regulations which were established by the Australian
government so that the labor and farmers can be protected. The company has good competency
in the market so they can expand their operations easily and can give more growth to the
horticulture industry at the international level.

Strategic Management
2
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
Overview of the company................................................................................................................4
Discussion of Australian Horticulture focused Agribusiness sector...............................................5
Identify international opportunities for your chosen Horticulture focused Agribusiness...............5
Discuss different international strategies suitable for your chosen Horticulture Agribusiness.......8
Discuss the most appropriate and inappropriate mode of entry to the international market for
your chosen agribusiness.................................................................................................................8
Make recommendations for the future strategic direction of the selected Horticulture
Agribusiness in the chosen international market.............................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Strategic Management
3
Introduction
The report focuses on the horticulture companies of the Australian market so that proper strategic
management of the horticulture industry can be done. The main aim of this report is to properly
manage the horticulture industry so that growth can be done. In the business, strategic
management is very essential as it helps in sustaining in the competitive industry (Broughton and
Harrison, 2012). For the growth of the company strategic management, it requires as it helps in
planning and guiding the vision of the company which will help them to move forward. The
internal and the external environment of the Oasis horticulture will be analyzed and
recommendation will be provided for the future growth of the company.

Strategic Management
4
Discussion of Australian Horticulture focused Agribusiness sector.
In the field of agriculture, horticulture deals with the cultivation and the processing of plants,
fruits, flowers, vegetables, and medicinal plants. Horticulture sectors also contribute to the
economy as it generates employment so people get attracted towards that. The horticulture
industry operates the domestic and the international market which also contributes to the
prosperity of people living in regional and rural areas. There are many areas where the
horticulture areas are grown such as the Northern Tasmania, Goulburn Valley of Victoria, etc.
(Bisson, 2014).
Horticulture in the Australia includes many things such as the culture of the plants, material,
food, growing of the flowers, vegetables and fruits, etc. The major fruits and vegetables which
are grown in the Australia are plant beans, cabbage, carrot, capsicum, beetroot, pumpkin, turnip,
etc. The caring of the fruits, vegetables and the flowers are the horticulture. In Australia the fruits
are grown in the Goulburn Valley of Victoria. The Australian government had brought the strong
horticulture which drives more profit to this sector. 25% of the Australian agriculture is
contributed by the fruits and nuts and has contributed to around the $4.2 billion (Wightwick, et
al., 2012). There are many tones of the potatoes are produced and it is forecasted that 1387
kilotons of the potatoes will be produced. The major agriculture export has been done to China
and through this the Australia earns many revenues through the china. Apples and bad pears are
eaten by the Australian in the larger amount so the Australian consumes that in the large
quantity. Oasis Company produces the fruits and vegetables which are very fresh to produce the
export and the domestic markets. The higher returns are got by the company in the fresh
producing market than the processing market.
Identify international opportunities for your chosen Horticulture focused Agribusiness.
The company has several opportunities at the international market also such as it will give great
expansion to the company and the horticulture industry can be taken to the huge growth. In the
international market, differentiated pricing strategy is adopted which will enable the company to
maintain its loyal customers (Potočnik, 2015). The company is serving their products through the
online channels also which has increased the customers so at the international levels also this

Strategic Management
5
facility in enhancing the growth of the company. The more stability can be bringing in the
market if the inflation rate will be lower at the international market.
Export and import: The international business can be enhanced by buying the good overseas
and selling domestic products. The horticulture sector has to be enhanced so the company Oasis
horticulture starting an import and export business so that more profits can be earned. There
many countries which need plants and fruits which are not grown in their countries so the import
and export is the best way to enhance the horticulture agribusiness.
Licensing: The international marketing strategy is to sold the vegetables and fruits with the
brand name of the Oasis horticulture company allows another company to manufacture their
products of the fruits and vegetables and sell them at the international level for the specific
payment. As there are many companies which are entering in the horticulture business so being
licensed helps in registering and formalizing the company (Wightwick, et al., 2012).
Franchising: In the specific territory when the right is given to the person to make the product
and services then it can be defined as the franchise. Most of the business wants to take the
franchisee as kit is less costly them starting up your own business and it is also easier to secure
the finance. At the international level the horticulture business can be expanded through this way
as the risk of the debt and cost of equity is very less.
Outsourcing: Outsourcing is the way through which the company contracts their major
functions to their partners and then they become the valued business service providers. At the
international level to expand the business is quiet difficult for the Oasis horticulture so
outsourcing is the way through which cost can be cut and efficiency can be increased to generate
more profit.
Discuss different international strategies suitable for your chosen Horticulture
Agribusiness.
Horticulture industry plays an essential role in the international sphere. There are many other
departments also which are indulging in international activities. Oasis Company has different
strategies as they have to gain market access by improving and maintain the string biosecurity
system. The horticulture major international strategy in Australia is to remove or reduce the

Strategic Management
6
international trade and the production distortions (Brezuleanu, et al., 2015). For Oasis Company,
the best suitable strategy to enhance the market in the international market is to contract the
manufactures or the retailers in the exporting processing and the trade zones. With the help of
this strategy, the efficiency in the market has improved and the responsiveness of the preferences
of the customers and the market conditions is accessed. Oasis Company has the strategy to
increase their returns to the shareholders and being the market leader of the milk with the higher
quality. There are the different types of the international strategies which are stated below:
Multi domestic strategy: In this strategy the Oasis horticulture company sacrifices its efficiency
so that the local requirements of the markets can be responding. The local preferences of the
customers are get priority and the fruits and vegetables are produced more which are demanded
by the local citizens over there (Abuzar, et al., 2014).
Global strategy: The global strategy of the Oasis horticulture company is to offer the same
products and services in each market so that the economies of the scale can be gained. The
vendors provides the same fruits and vegetables all over the world globally but they will sell
them in the different local languages as in this strategy the main motive is to increase the
economies of scale and not to variances in local preferences (Wheeler, et al., 2015).
Transnational strategy: In this strategy it is the middle ground of both the strategy which is
stated above. This strategy is the best way among all as it focuses on the both the needs of the
local preferences of the consumers and the balance of the desire efficiency. The global business
activities of the Oasis horticulture company are coordinated with cooperation so that more
efficiency in the international market can be achieved (Mok, et al., 2014).
Discuss the most appropriate and inappropriate mode of entry to the international market
for your chosen agribusiness.
The appropriate mode of entry for the international market is exporting, licensing and franchising
and the partnering and strategic alliances. The inappropriate mode of entry is the acquisition and
the Greenfield venture.
Exporting: In the international market, it is the easiest way to begin their international
expansions. When any product of the home country is sale in another country then the expenses

Strategic Management
7
are avoided by the companies for establishing their operations in the new country (Patushi and
Kume, 2014).
Licensing: It is another way to enter the foreign market and a degree of risk is very limited. Fees
and royalties are charged from the parent company and then they are allowed to use the strategies
of companies and trademarks which enhance the market in international level and generate the
revenue for the company (Pal, et al., 2014).
Partnership and strategic alliances: By doing the contractual agreement with the local partner,
it is easy to enter in the new market. There are the several advantages of using this mode of entry
such as the local companies understands the local culture, tastes, and preferences so it is for the
company to maintain the relationship with the customer (Burgess, et al., 2017).
Acquisition: It is not a good mode of entering the market as the Oasis Company will have to
give their stocks, or exchange their own stock by owing some price. This mode of entry of the
market is very expensive and results in higher interest rates (Liu and Arthanari, 2016).
Make recommendations for the future strategic direction of the selected Horticulture
Agribusiness in the chosen international market.
From the above report, it has been analyzed that Oasis Company has a strong market position in
the market and has to take successfully growth in the horticulture industry. As the company has
many projects but recently the infant formula has launched by them which has a great market
share in Australia but in the international market it will take time to take the growth. So it is
recommended that if the Oasis Company will effectively manage their different plants and make
some strategies for the effective operations then expansion in the company can be done. In the
global market, not only the horticulture industry will take the growth but also the healthier milk
product will get which is good in digestion and contains high protein (Chia, et al., 2017). The
demand for the milk will be higher day by day in the market so proper strategic management is
helpful in achieving the higher growth in the horticulture sector.

Strategic Management
8
Conclusion
In the above report, the business processes and key revenue units of Oasis Company were
discussed. There are several factors which are affecting the operations of the company such as
political, legal, technological, social, etc. which has also analyzed in this report. The company
has a great market share in the Australian market and they are offering the quality milk product
which was increasing the revenue of the company. As there is the need for high protein products
in the market so the government of Australia also supports the operation of the company. There
are the several modes through which the entry can be done in the international market so that
more expansion of the horticulture sector can be done and more contribution to the economy of
the country can be done.

Strategic Management
9
References
Abuzar, M., Sheffield, K., Whitfield, D., O’Connell, M. and McAllister, A., (2014) Comparing
inter-sensor NDVI for the analysis of horticulture crops in south-eastern Australia. American
Journal of Remote Sensing, 2(1), pp.1-9.
Australian Government (2019) Horticulture [Online]. Available from:
http://www.agriculture.gov.au/ag-farm-food/hort-policy [Accessed on 22 June 2019]
Bisson, C., (2014) Exploring competitive intelligence practices of French local public
agricultural organizations. Journal of Intelligence Studies in Business, 4(2).
Brezuleanu, S., Brezuleanu, C.O., Brad, I., Iancu, T. and Ciani, A., (2015) Performance
assessment in the business of agricultural companies using balanced scorecard model. Cercetari
Agronomice in Moldova, 48(2), pp.109-120.
Broughton, S. and Harrison, J., (2012) Evaluation of monitoring methods for thrips and the effect
of trap colour and semiochemicals on sticky trap capture of thrips (Thysanoptera) and beneficial
insects (Syrphidae, Hemerobiidae) in deciduous fruit trees in Western Australia. Crop
protection, 42, pp.156-163.
Burgess, T.I., White, D., McDougall, K.M., Garnas, J., Dunstan, W.A., Català, S., Carnegie,
A.J., Worboys, S., Cahill, D., Vettraino, A.M. and Stukely, M.J., (2017) Distribution and
diversity of Phytophthora across Australia. Pacific Conservation Biology, 23(2), pp.150-162.
Chia, J.S.J., McRae, J.L., Kukuljan, S., Woodford, K., Elliott, R.B., Swinburn, B. and Dwyer,
K.M., (2017) A1 beta-casein milk protein and other environmental pre-disposing factors for type
1 diabetes. Nutrition & diabetes, 7(5), p.e274.
Fujii, H., Yoshida, K., and Sugimura, K., (2016) Research and development strategy in
biological technologies: A patent data analysis of Japanese manufacturing
firms. Sustainability, 8(4), p.351.
Liu, X. and Arthanari, T., (2016) A system dynamics model for managing corruption risks in
dairy supply chains. In 34th Int. Conf. Syst. Dyn. Soc (pp. 1-17).

Strategic Management
10
Mok, H.F., Barker, S.F. and Hamilton, A.J., (2014) A probabilistic quantitative microbial risk
assessment model of norovirus disease burden from wastewater irrigation of vegetables in
Shepparton, Australia. Water research, 54, pp.347-362.
Pal, S., Woodford, K., Kukuljan, S. and Ho, S., (2015) Milk intolerance, beta-casein and
lactose. Nutrients, 7(9), pp.7285-7297.
Patushi, S. and Kume, V., (2014) The development of clusters as a way to increase
competitiveness of Businesses (case of milk processing industry in Tirana). European Scientific
Journal, ESJ, 10(13).
Potočnik, K., (2015) Selection adapted to local conditions has the possibility to improve the
economy of small dairy cattle populations. In International symposium on animal science 2015,
September 9–11, Novi Sad, Serbia (pp. 53-60).
The Conversation (2014) Agriculture in Australia: Growing more than our farming future
[Online]. Available from: https://theconversation.com/agriculture-in-australia-growing-more-
than-our-farming-future-22843 [Accessed on: 22 June 2019]
Wheeler, S.A., Zuo, A. and Loch, A., (2015) Watering the farm: Comparing organic and
conventional irrigation water use in the Murray–Darling Basin, Australia. Ecological
Economics, 112, pp.78-85.
Wightwick, A.M., Bui, A.D., Zhang, P., Rose, G., Allinson, M., Myers, J.H., Reichman, S.M.,
Menzies, N.W., Pettigrove, V. and Allinson, G., (2012) Environmental fate of fungicides in
surface waters of a horticultural-production catchment in southeastern Australia. Archives of
environmental contamination and toxicology, 62(3), pp.380-390.