Analysis of Business and Economic Trends

This assignment delves into a range of contemporary business and economic trends. Students will analyze the influence of these trends on organizational strategies and performance. Key areas of focus include applying Porter's Five Forces framework to understand industry competition, examining the complexities of supply chain integration and closed-loop systems, and exploring factors influencing deviant and criminal behavior in the workplace.

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

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1. Introduction:
California nut producing industry is facing innumerable challenges in maintaining their
entire process of business due to high level of theft cases in the supply chain process. An
International crime ring has targeted California’s booming agriculture industry by stealing
truckloads of high value nuts (Guthman 2014). The sophisticated organizations in large number
of cases tend to use hi-tech tactics. International crime ring armed with false shipping papers
pretend to be legitimate truckers and ultimately hijack with loads of nuts such as almonds,
walnuts and pistachios valued at $150,000. As a result, nut producing industry is facing major
challenges in running their entire process of business effectively (Elias 2013). From that
perspective this particular study has focused to make an in-depth overview about the PESTEL
factors as well as Porter’s five force analysis. Based on that analysis the study provides major
recommendations for overcoming the current situation.
2. Background of the situation:
California is recognized as one of the largest fruit producing states occupying a
predominant place in the nut producing industry. The economic growth of California is highly
dependent on their rhythm of business process of this very specific industry. It is however
alleged that nut producing industry has suffered innumerable difficulties in maintaining the glory
of this specific industry due to repeated criminal occurrence. However, this specific study has
focused to make an in-depth overview on how California fruit industry would be able to
overcome this particular crisis and run their entire process of business by maintaining a
systematic rhythmic flow.
3. PESTEL Analysis:

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United States of America is the third most popular countries in terms of population with
318 million of people. California is constituted with successful fruit and nut industry based on
which the economic development of this particular country is highly dependent. Before running
the entire process of business in different geographical areas the business experts tend to evaluate
six primary factors. The factors include political, economical, socio-cultural, technological,
environmental and legal. Based on those six factors the business experts intend to form business
strategy and policy that would be suitable for drawing the attention of customers for this
particular country. California has already received immense recognitions and images in fruit and
nut industry. Therefore, an effective PESTEL analysis has been conducted based on the six
major factors of California.
Political:
California as an American state is constituted with transparent demographic set-up
having fair election policy. After receiving the international criticism on war and terror the
business industry of fruit and nut is facing innumerable challenges in running their entire process
of business successfully. However, the business experts belonging to fruit and nut industries of
California have maintained tax policies, government discrimination law, rules of trade union so
that the executives do not have to face challenges in maintaining shipping policies effectively.
Economic:
With the GDP of over $16.760 trillion United States of America has been recognized as
largest economic World. The economic status of California however can be considered as well
developed. However, after the incident of theft cases happened at the nut producing industry of
California the economic strength of this particular state has faced major challenges. The business

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industry has faced innumerable difficulties in maintaining the remuneration package of the
employees. As a result, large number of unemployment was happening at the workplace of fruit
and nut industry.
Social:
US is constituted with the people of diverse cultural backgrounds and attitudes. The
business experts of California while dealing with the products and service have to become very
much conscious about their brands. Products should be designed in such a way that people
belonging to different backgrounds and attitudes can easily get attracted. However, as per the
recent theft issue happened within the California nut producing industry it can be stated that the
business experts should take more effective initiatives so that the products can reach the proper
destination apart from driving off to the international criminal ring.
Technological:
California is out and out technological advanced state where the inhabitants are very
much accustomed with the advancement of technology. The entire supply chain procedure of
California nut producing industry is dependent on advanced technology. Therefore, the gangs of
criminals have taken this as an advantage. By tracking the GPS process the criminals have
hijacked the loaded trucks of nuts (Bouten et al. 2013). As a result, the industry has faced a huge
loss in their business revenue process. However, technological advancement is one of the most
effective factors with the help of which the rate of criminal offences in the soil of California has
been raised.
Environment:

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The climate and environment of California is very much suitable for building fruit and
nut industry (Marek, Yaghmour and Bostock 2013). This particular industry has already
occupied a recognizable place in the market of California. However, after the occurrence of theft
issue happened within California nut producing industry the business experts face innumerable
difficulties in retaining the customers.
Legal:
While running the entire process of business California nut producing industry also
follows major government regulations and acts among which data protection act, anti-
discrimination act, health and safety act, right to information act are most prominent (Reese
2015). However, despite implementing these acts the international criminal rings became
successful in hacking the entire loaded trucks of nuts supplied from California nut producing
industry.
4. Five force Analysis:
Porter’s five force analysis helps to make an in-depth industry analysis in order to
evaluate the threats and opportunities that the industry is facing at the present scenario (E.Dobbs
2014).
 Supplier’s Power:
The power of the suppliers in the California nut producing industry is high as this
particular industry leaves a major impact on the overall economic growth of California. This
particular state has been considered as the largest fruit producing states. Therefore, the business
experts of fruit industry have to be dependent on the chemicals and fertilizers. California is not

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constituted with large number of chemical companies in comparison to the demand in nut
producing industry. Automatically, the suppliers’ power is high (Kohler and Rammer 2012).
 Buyer’s Power:
As already stated fruit and nut is the largest industry of California based on which the
economic growth is highly dependent. However, large number of business organizations exists in
the market of California which produces nuts, almonds and so on. Therefore, the buyers get
innumerable option of bargaining before purchasing a particular product. From that perspective
the power of buyers are also very high (Hajli and Sims 2015).
 Threats of new entry:
California has already occupied a recognizable place in the market of nut producing
industry. As a result, in order to make a new market entry that particular organization would
have to have major challenges (Gupta 2013). Purchasing appropriate lands for growing crops and
trees is one of the most effective challenges for the new organization. As a result, the new
organization would have to face a major market threat in order to make a competitor for its
existing companies.
 Availability of substitutes:
As per the availability of substitutes, the business experts of nut producing industry of
California do not have to face major challenges. California is primarily famous for producing
different kinds of nuts. Other level of food products do not occupy recognizable place in the
market of California. Therefore, the business experts do not have to face major challenges from
the substitutes.
 Competitive rivalry:

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California nut producing industry is constituted with large number of competitors that
give a major threat to each other. The most recognizable brands that have already achieved a
prestigious image include Blue Diamond Growers, Waterford Nut Company, Chico Nut
Company, Mariani Nut. Therefore, every business organizations have to follow innovative
business strategies and policies with the help of which they can survive in the market effectively
(Chen et al. 2015).
5. Identification of five (5) organizations with the resources and capabilities to prevent theft
in the industry
Large numbers of companies are there belonging to California nut producing industry.
After the rapid growth of this theft issue several companies have taken major initiative in order
to prevent the issue (Garicano and Wu 2012). The five primary companies belonging to
California that have taken major prevention include Blue Diamond Growers, Waterford Nut
Company, Chico Nut Company, Mariani Nut. Financial strength is one of the most positive
aspects due to which these specific organizations are successful in dealing with the issues that
they have faced while shipping their products. Those five organizations especially decided to
maintain their entire operation process along with supply chain management within the
organization (Christopher 2016). The business experts do not intend to involve the supply chain
agency for delivering their products and service. The managers by investing organizations’ own
capital have decided to use innovation technology within the operation process (Johnston and
Marshall 2016). As a result, the internal criminal rings would not get the scope in stealing the
loaded trucks on the way of shipping. This particular study has focused to make an in-depth
overview on how the prestigious organization like the ones being discussed above can prevent
the large scale theft.

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6. The business level resources and capabilities required to prevent large-scale theft
There are various methods or measures are there to be taken by the organizations in order to
prevent the probability of large scale theft. One of the most prominent and convenient ways to
prevent the issue of theft is the installation of the security systems (Schumacher et al. 2013).
Installation of the security systems will help the organizations in monitoring all the activities by
different stakeholders. Thus, any unusual activities will get noticed at the primary stage itself.
However, there are certain limitations for the installation of the security systems. One of the key
limitations is the more inclination of the security systems towards the ordinary and small scale
thefts being occurred in the organizations on a daily basis. Any type of dishonest and unethical
activities by the internal and external stakeholders will get noticed with the help of the
installations of the security systems (Smith and Lilienfeld 2013). However, it is not possible for
these security systems to notice the emergence of the large scale theft in the organizations. This
is due to the reason that, majority of this large scale theft is being committed with having prior
planning.
Thus, in order to prevent the emergence of the large scale theft in the organization,
installations of the security systems is not enough and along with it, various added features
should also be included by the organizations in order to have a full proof security systems. These
added security measures include online security systems in order to prevent the online breach.
On the other hand, initiation of the physical resources in enhancing the security of the premises
will also be beneficial for the organizations.
7. Summary of findings and recommendations:

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Some of the recommendations are being identified which will be beneficial for the
organizations in preventing the emergence of the large scale theft in their premises. The
following sections will discuss about the probable recommendations.
 All the policies and regulations regarding the act of any dishonesty or unethical activities
in the organizations should be well communicated to the all the internal stakeholders
including the employees. This is due to the reason that, in effectively communicating the
regulations of the organizations to the employees, the employees will be more aware
about the rules and regulations being followed in the organizations regarding the
unethical behavior. Moreover, this will enable the employees in having the idea about the
possible consequences if they are been found guilty in any case of unethical behavior.
Thus, it will refrain them from committing any unethical activities in the organization.
Moreover, it will also help the organization to generate information from the employees
regarding any occurrence of the dishonest act in the premises.
 Internal communication in the organization should be enhanced due to the fact that it will
help the organizations as well as the employees to increase the coordination in the
internal management. Thus, the more effective will be the internal coordination in the
organization, the more will be chance of generation of information from the employees
about any potentiality of occurrence of unethical activities. It will also help the upper
level management to closely monitor the activities of the employees and effectively
communicating with them. It will in turn help them to identify any chance of occurrence
of unwarranted activities inside the premises.
 In the current business scenario, online breach is occurring more frequently and it is
becoming one of the key security issues for the contemporary business organizations.

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Thus, in order to prevent the chance of dishonest activities in the organizations especially
in the online medium, the organizations should enhance the effectiveness of their online
medium. It will help them in preventing the theft of online confidential data of the
organizations.
 As discussed earlier, initiation of only online security systems will not be enough for the
organizations to prevent the large scale theft. Rather than holistic approach is required to
overcome this issue. One of the measures will be the use of the physical security systems
by having security guards in and around the organizational premises. This will help the
organizations to have the control of the practical situation in the premises.

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