Strategic Management

This report provides an analysis of the external and internal environment of GrainCorp Organization, a leading agricultural business in Australia. It includes recommendations for the company's future success.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on providing proper knowledge on the external as well as internal
analysis of the GrainCorp Company. It is one of the most popular agricultural businesses
which is situated in Australia, and the company has been able to gain a competitive advantage
for themselves. Furthermore, with the help of VRIO and PESTEL analysis, the various risks,
threats along with opportunities have been identified that will be beneficial for the overall
success of the company.

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Table of Contents
Introduction................................................................................................................................3
Outline of GrainCorp Organization...........................................................................................3
Business Units........................................................................................................................3
Products and Services............................................................................................................4
Units of Business Revenue and Discussion on the Importance of the Largest Units of
Revenue..................................................................................................................................4
External Environmental Analysis of GrainCorp Organization..................................................5
Internal Environmental Analysis of GrainCorp Organization...................................................8
Recommendations....................................................................................................................10
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The report throws light on the overall analysis of the internal along with the external
analysis of the Agribusiness which is situated in Australia. The company that has been
analyzed in the respective report is GrainCorp which is grounded in the Australian economy.
Proper identification of the business units along with identification of the products and
service line is required to be identified which have assisted the company in gaining
competitive advantage in the competitive business environment. After the internal along with
external analysis, the strategic recommendations are required to be showcased which will be
beneficial for the future success of the organization in an appropriate manner.
Outline of GrainCorp Organization
GrainCorp Organization is one of the public organizations which has been listed on
the Australian Securities Exchange which is situated in Australia. The core business of the
company is to storage along with receival of grain as well as the other related commodities.
Moreover, the company was founded in the year 1917, and it belongs to the agricultural
industry (Graincorp.com.au. 2019). The company is headquartered at 175 Liverpool Street,
Sydney, Australia and the different operations which are inclusive in the respective company
is the production of various kinds of grains, oils along with malts. In November 2009,
GrainCorp tried and expanded its business in North America with proper purchase of United
Malt Holdings group of companies and thereafter extended their operations in Europe.
Business Units
There are various business units of GrainCorp Company wherein it includes the
proper production of the different grains, oils as well as malts in various parts of Australia.
Through the respective manner, the company has been able to gain competitiveness in the

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overall competitive business environment against the other competitors present in the market.
Moreover, the company has its operations in the Australian market and other countries as
well. It has been noticed that GrainCorp Organization is one of the world's best performance-
driven supplier of malts and they have expanded their operations in the United States of
America, Europe as well as in Australia (Akter et al. 2016).
Products and Services
There are different kinds of products which are being produced by the company GrainCorp
to attract more customers in comparison to the other competitors which are present in the
market. The different product ranges include oils, malt as well as grains which are being
exported to the company through their logistics (Yuliansyah, Rammal and Rose 2016).
Moreover, it has been identified that the organization has created a robust tool for the supply
chain management that assists them in delivering the different kinds of products along with
services with premium quality and at the most specific time which is outstanding.
Units of Business Revenue and Discussion on the Importance of the Largest Units of
Revenue
The business revenue units of GrainCorp Organization are the different malts along
with grains as well as the oil extraction that is shaped in a proper manner, and it is being sold
to the various markets in the entire world (Wheelen et al. 2017). Moreover, it has been
identified that the company has been able to specialise in all the three products in the
different parts of the world as well. The largest revenue unit of GrainCorp Business is malt
and oil production and exporting the same in various parts of the world.
The major importance of the largest units of revenue in GrainCorp Business is that it has
helped the company in gaining profitability in different parts of the world. Moreover, the
various business units that generate revenue for the company which will be beneficial for the

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overall growth of the business in a unique manner (Soltanizadeh et al. 2016). It has been
noticed that in Australia and other parts of the world, the production of malt is less and it will
provide competitiveness to improve their business by introducing and exporting the products.
External Environmental Analysis of GrainCorp Organization
With the help of the PESTEL analysis framework, it is the framework or the tool
which is being utilized by the various marketers to analyze as well as monitor the macro-
environmental factors which creates a huge impact on the organization (Razak et al. 2016).
The significant benefits of the PESTEL analysis are that it is considered as the strategic
planning technique which will help reduce the threats towards the business-related activities
of GrainCorp Company.
Political Aspects- It is one of the essential factors that is required to be identified by
GrainCorp Organization which will be helpful for them in operating in global and Australian
markets. In the Australian economy, there are substantial political instability and pressure
which can prove to be disadvantageous for the business. The following aspects need to be
identified by GrainCorp:
 The level of corruption is required to be checked by GrainCorp Company as it can
create enormous pressure (Lasserre 2017)
 The trade-related regulations along with tariffs are strict in the agriculture sector, and
it can create a huge negative impact on the business of GrainCorp
 The related pricing regulations are efficient, and it can prove to be beneficial for
GrainCorp, and it will be helpful for them in targeting customers (Kourdi 2015)
Economic Aspects- It is the other aspect that is required to be identified wherein
GrainCorp needs to analyze the various interventions of the government which are essential

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to be adopted by the company to become more competitive. The following aspects are
required to be checked by GrainCorp which are as follows:
 The intervention of the government is one of the elements which can create a negative
influence on the company (Higgins, Omer and Phillips 2015)
 There are considerable fluctuations in the exchange rate along with instability in the
market that can affect the business operations of GrainCorp
 The inflation rate is moderate, and it can prove to be beneficial for the overall growth
of the company, and it will provide GrainCorp with the aspect to expand their
business operations in Australia and other countries (Higgins, Omer and Phillips
2015)
Social Aspects- It is the third most essential aspect in which the demographics of the
country is required to be taken into consideration as it can impact the overall growth of the
company in both negative or positive manner. In terms of GrainCorp, it has been noticed that
the skill level of the entire population is high and it proves to be beneficial for the overall
growth of the company in Australian economy (González-Rodríguez et al. 2018). In addition
to the same, the structure of education is the other aspect can prove to be impactful on the
business of GrainCorp in Australia, and it will be helpful for them in gaining competitive
advantage in the market.
 The social conventions of the Australian economy are high, and it will provide growth
opportunities for the company in a positive manner (Dahlberg, Hokkanen and
Newman 2016)
 The skill level along with demographics of the organization is high, and it proves to
be beneficial for the agriculture business

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Technological Aspects- It is the other factor which plays a significant role in
agriculture business in Australia. The various advancements in technologies play a vital role
in improving the effectiveness of the firm, and it will be offering to the customers will be
enhanced. In the case of GrainCorp Company, the rate of diffusion in technology can prove
to be beneficial for the growth which includes the following aspects:
 The company needs to analyze the moves of the different competitors as well as their
invention in the technological aspects which will provide them with a scope to
improvise their operations (Dahlberg, Hokkanen and Newman 2016)
 GrainCorp Company needs to analyze the technological advancements on offerings of
product that will be affecting the overall value chain activities of the company
Environmental Aspects- It is the other factor which plays a significant role in
agriculture business wherein there is the inclusion of the different environmental rules and
regulations in the market of Australia. Furthermore, the other challenging factors are
inclusive of the climate and environmental change which may not suit the agriculture
business.
 GrainCorp Company needs to evaluate the various environmental aspects and laws
that will help regulate environmental pollution
 GrainCorp company needs to identify air and water regulations in the agricultural
sector as well (Buckley and Ghauri 2015)
Legal Aspects- It is the last factor wherein it is inclusive of the different kinds of
health and safety related laws that can affect the business operations of GrainCorp. The
various elements which are required to be considered are as follows:
 GrainCorp Company expects to follow the discrimination law which will be
beneficial in improvising the business operations (Amran et al. 2016)

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 GrainCorp Company needs to analyse the copyrights and patents aspects which can
help manage the agricultural business
Internal Environmental Analysis of GrainCorp Organization
With the help of the VRIO based framework, the core competencies of the GrainCorp
Company will be identified that will prove to be beneficial for their growth. Moreover, the
resource-based analysis will help bring consistency and become more competitive in
comparison to the other competitors who are present in the market.
Resources- The different resources which are being utilized by GrainCorp is
including both intangible and tangible resources such as machinery, raw materials, highly
skilled workers. The other main motive of the company is to provide the customers with
appropriate services as promised within the stipulated time frame (Akter et al. 2016).
Capabilities- The different kinds of abilities which are being used by GrainCorp is
producing as well as growing the premium quality crops, grains, oil and malts in Australia as
well as in other parts of the world as well (Amran et al. 2016). There is the inclusion of the
supply chain management as well as logistics aspects in the world as a whole that helps them
in becoming competitive in their approach.
Competitive Advantage- It is the last aspect wherein GrainCorp tries to utilize the
model of value co-creation to sell the various products and services that will be beneficial for
GrainCorp in becoming more competitive in their operations to become more successful.
VRIO Analysis of GrainCorp Organization
Resource/
Capability
Value Rarity Costly to
be
Exploited by
the
Value
Creation

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Imitated Organization
Trained and
Dedicated
Employees work at
GrainCorp
Company
Yes Yes Yes Yes Continued
type of
competitive
advantage
The different raw
materials are of
high quality, and it
helps deliver high
output
Yes Yes Yes Yes Continued
type of
competitive
advantage
The employees in
the organization are
technologically
advanced, and it
plays a significant
role in the
competitive aspect
Yes Yes No Yes Continued
kind of
competitive
advantage
Company
Reputation
Yes No Yes No Competitive
Uniformity
The ability of the
company to become
more innovative
Yes No No No Competitive
Uniformity

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The efficiency and
appropriateness of
the distribution
network
Yes Yes Yes Yes Continued
competitive
advantage
Customization of
the different
products along with
services
Yes No No Yes Competitive
Uniformity
Recommendations
From the overall external and internal environmental analysis of the company, the
recommendations which can be provided to the company to strengthen the overall execution
of the infrastructure are as follows:
 The expansion of market and product technique can be adopted by GrainCorp
Company that will be beneficial for the company to become more competitive
 The valuable customers of the company can be retained which will help increase their
market share, and it will be useful for them to gain popularity
 The primary focus is required to be provided on strengths which is responsible for the
overall growth of the firm which will leave the competitors behind in the race
 The target customers should become the significant assets of the company, and
through the adoption of the different innovative techniques, it will be beneficial for
the growth.

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Conclusion
Therefore, it can be concluded that with the overall analysis of the external and internal
analysis, these have assisted in aiding the different aspects which will be beneficial for the
company to gain the competitive advantage in the market. Through the help of the VRIO
analysis, it helped the company in achieving a competitive advantage, and it will be helpful
for the overall growth of the firm.
References
Akter, S., Wamba, S.F., Gunasekaran, A., Dubey, R. and Childe, S.J., 2016. How to improve
firm performance using significant data analytics capability and business strategy
alignment?. International Journal of Production Economics, 182, pp.113-131.
Amran, A., Ooi, S.K., Wong, C.Y. and Hashim, F., 2016. Business strategy for climate
change: An ASEAN perspective. Corporate Social Responsibility and Environmental
Management, 23(4), pp.213-227.
Buckley, P.J. and Ghauri, P. eds., 2015. International business strategy: theory and practice.
Routledge.
Dahlberg, T., Hokkanen, P. and Newman, M., 2016, January. How Business Strategy and
Changes to Business Strategy Impact the Role and the Tasks of CIOs: An Evolutionary
Model. In 2016 49th Hawaii International Conference on System Sciences (HICSS) (pp.
4910-4919). IEEE.
González-Rodríguez, M.R., Jiménez-Caballero, J.L., Martín-Samper, R.C., Köseoglu, M.A.
and Okumus, F., 2018. Revisiting the link between business strategy and performance:
Evidence from hotels. International Journal of Hospitality Management, 72, pp.21-31.

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Graincorp.com.au. 2019 About GrainCorp. [online] Available at:
http://www.graincorp.com.au/about-graincorp/index.htm [Accessed 26 Mar 2019].
Higgins, D., Omer, T.C. and Phillips, J.D., 2015. The influence of a firm's business strategy
on its tax aggressiveness. Contemporary Accounting Research, 32(2), pp.674-702.
Kourdi, J., 2015. Business Strategy: A guide to effective decision-making. The Economist.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
Razak, N.A., Pangil, F., Zin, M.L.M., Yunus, N.A.M. and Asnawi, N.H., 2016. Theories of
knowledge sharing behavior in business strategy. Procedia Economics and Finance, 37,
pp.545-553.
Soltanizadeh, S., Abdul Rasid, S.Z., Mottaghi Golshan, N. and Wan Ismail, W.K., 2016.
Business strategy, enterprise risk management and organizational performance. Management
Research Review, 39(9), pp.1016-1033.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic
management and business policy (p. 55). Boston: pearson.
Yuliansyah, Y., Rammal, H.G. and Rose, E., 2016. Business strategy and performance in
Indonesia’s service sector. Journal of Asia Business Studies, 10(2), pp.164-182.