Strategic Management for Webster Limited in Australia
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This report discusses the various aspects of strategic management for Webster Limited, a fiber focused agribusiness in Australia. It covers business units, products, and service lines, different business level strategies, and recommendations for future strategic direction.
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Running head: STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
Executive summary
The report was prepared to discuss about the various aspects of strategic management
considering the business organization named Webster Limited in Australia. The company has
been a manufacturer and producer of good quality cotton fiber used for the making of clothes and
other fiber products. There were multiple business units that managed the production of cotton
fiber, walnuts and even managed water systems to ensure that the business comply with the
requirements and standards of the organization. The company followed the integrated cost
leadership and differentiation strategies to ensure that the costs incurred while managing the
business operations and processes could be reduced and the products could be differentiated
easily from the products delivered by the other companies in the marketplace. Lastly, few
recommendations were provided like implementation of Integrated Pest Management,
management of water licenses and assessment of feasibility, which could further assist Webster
Limited to ensure successful business functioning along with management of sustainability and
production of more quantities of cotton fiber.
STRATEGIC MANAGEMENT
Executive summary
The report was prepared to discuss about the various aspects of strategic management
considering the business organization named Webster Limited in Australia. The company has
been a manufacturer and producer of good quality cotton fiber used for the making of clothes and
other fiber products. There were multiple business units that managed the production of cotton
fiber, walnuts and even managed water systems to ensure that the business comply with the
requirements and standards of the organization. The company followed the integrated cost
leadership and differentiation strategies to ensure that the costs incurred while managing the
business operations and processes could be reduced and the products could be differentiated
easily from the products delivered by the other companies in the marketplace. Lastly, few
recommendations were provided like implementation of Integrated Pest Management,
management of water licenses and assessment of feasibility, which could further assist Webster
Limited to ensure successful business functioning along with management of sustainability and
production of more quantities of cotton fiber.
2
STRATEGIC MANAGEMENT
Table of Contents
Strategic management......................................................................................................................1
Introduction......................................................................................................................................3
Identification of a Fiber focused Agribusiness operating in Australia............................................3
Business units, products and service lines.......................................................................................4
Significance of largest business revenue units’...............................................................................5
Different business level strategies...................................................................................................8
Cost leadership.............................................................................................................................9
Cost differentiation....................................................................................................................10
Integrated Cost Leadership-Differentiation Strategy.................................................................11
Analysis of the Agribusiness’ business level strategy...................................................................12
Model of competitive reality.........................................................................................................14
Competitive advantage reality model............................................................................................16
Implementation plan and an evaluation strategy...........................................................................18
SWOT analysis for Webster Limited.........................................................................................19
Recommendations for the future strategic direction......................................................................23
Conclusion.....................................................................................................................................25
References......................................................................................................................................25
STRATEGIC MANAGEMENT
Table of Contents
Strategic management......................................................................................................................1
Introduction......................................................................................................................................3
Identification of a Fiber focused Agribusiness operating in Australia............................................3
Business units, products and service lines.......................................................................................4
Significance of largest business revenue units’...............................................................................5
Different business level strategies...................................................................................................8
Cost leadership.............................................................................................................................9
Cost differentiation....................................................................................................................10
Integrated Cost Leadership-Differentiation Strategy.................................................................11
Analysis of the Agribusiness’ business level strategy...................................................................12
Model of competitive reality.........................................................................................................14
Competitive advantage reality model............................................................................................16
Implementation plan and an evaluation strategy...........................................................................18
SWOT analysis for Webster Limited.........................................................................................19
Recommendations for the future strategic direction......................................................................23
Conclusion.....................................................................................................................................25
References......................................................................................................................................25
3
STRATEGIC MANAGEMENT
Introduction
The Strategic Management considers the evolvement and implementation of various
strategies by the business organizations to ensure that the organizational goals and objectives are
met and the business activities are managed quite conveniently. The management of strategies
are associated with the business functioning and it has the ability to improve the business
functioning along with increased production and higher revenue generation too. The business
organization that has been selected as the case study is this report is the Webster Limited in
Australia, which is a fiber focused agribusiness in Australia with its focus on cotton production
and can be used for the production of paddock to clothing and other useful materials used by
people all over Australia and in other parts of the world (Robson 2015). Overall, the strategic
management is the continuous planning, analysis and monitoring of the various important
components required to develop and implement strategies and accomplishes the business goals
and objectives with ease and efficiency. The strategic management also means managing the
human resources and other business aspects for maximizing the ability to achieve the business
objectives and keep a close eye on establishing future directions for business success and
enhanced growth opportunities. The report will focus on the agribusiness concepts along with the
business units and different business level strategies implemented such as the cost leadership and
cost differentiation strategies and finally will recommend necessary measures for future strategic
direction of the business named Webster Limited in Australia (websterltd.com.au 2018).
Identification of a Fiber focused Agribusiness operating in Australia
The fiber focused agribusiness operating in Australia is the Webster Limited, Australia,
which is one of the leading and most established agribusiness company. It is an organization with
STRATEGIC MANAGEMENT
Introduction
The Strategic Management considers the evolvement and implementation of various
strategies by the business organizations to ensure that the organizational goals and objectives are
met and the business activities are managed quite conveniently. The management of strategies
are associated with the business functioning and it has the ability to improve the business
functioning along with increased production and higher revenue generation too. The business
organization that has been selected as the case study is this report is the Webster Limited in
Australia, which is a fiber focused agribusiness in Australia with its focus on cotton production
and can be used for the production of paddock to clothing and other useful materials used by
people all over Australia and in other parts of the world (Robson 2015). Overall, the strategic
management is the continuous planning, analysis and monitoring of the various important
components required to develop and implement strategies and accomplishes the business goals
and objectives with ease and efficiency. The strategic management also means managing the
human resources and other business aspects for maximizing the ability to achieve the business
objectives and keep a close eye on establishing future directions for business success and
enhanced growth opportunities. The report will focus on the agribusiness concepts along with the
business units and different business level strategies implemented such as the cost leadership and
cost differentiation strategies and finally will recommend necessary measures for future strategic
direction of the business named Webster Limited in Australia (websterltd.com.au 2018).
Identification of a Fiber focused Agribusiness operating in Australia
The fiber focused agribusiness operating in Australia is the Webster Limited, Australia,
which is one of the leading and most established agribusiness company. It is an organization with
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4
STRATEGIC MANAGEMENT
rich diversity and has been operating for more than a decade and has been involved in various
agribusiness activities through stronghold connection to the agricultural industry in Australia.
Due to this, the company has remained competitive in the marketplace and is known for its
excellence and commitment towards sustainable agricultural activities along with the production
of cotton fibre required for padding to cloths and other materials. (Hill, Jones and Schilling
2014) The company has been focused on three major business including the agriculture of
cotton, production of walnuts and water management. Most importantly, the organization has
conserved the natural resources properly that are fundamental to what the company has been
doing and what will be done in the upcoming years. The primary focus of the company is on
cotton production with the use of various new technologies and expertise, which has enabled
maximization of yield and brought water efficiency, thus increasing the capability to manage
production of more than 200000 bales of cotton every year (Hill 2017). The agricultural
processes are managed through acquisition of Tandou, Kooba and Bengerangm which has helped
in the growth and development of business as well as allowed the company to produce
complimentary crops that have been supported through strategic and value enhancing water
efficient technologies and equipments. There are extensive grazing farmland that produce 10,000
lambs on an annual basis for the production of cotton and wool that are later processed through
advanced technologies for the production of quality based clothing and other materials suitable
for the humans to use (Eden and Ackermann 2013).
Business units, products and service lines
There are various business units managed by the company and thus Webster Limited in
Australia has focused not only on the production of cotton, but also has been one of the largest
STRATEGIC MANAGEMENT
rich diversity and has been operating for more than a decade and has been involved in various
agribusiness activities through stronghold connection to the agricultural industry in Australia.
Due to this, the company has remained competitive in the marketplace and is known for its
excellence and commitment towards sustainable agricultural activities along with the production
of cotton fibre required for padding to cloths and other materials. (Hill, Jones and Schilling
2014) The company has been focused on three major business including the agriculture of
cotton, production of walnuts and water management. Most importantly, the organization has
conserved the natural resources properly that are fundamental to what the company has been
doing and what will be done in the upcoming years. The primary focus of the company is on
cotton production with the use of various new technologies and expertise, which has enabled
maximization of yield and brought water efficiency, thus increasing the capability to manage
production of more than 200000 bales of cotton every year (Hill 2017). The agricultural
processes are managed through acquisition of Tandou, Kooba and Bengerangm which has helped
in the growth and development of business as well as allowed the company to produce
complimentary crops that have been supported through strategic and value enhancing water
efficient technologies and equipments. There are extensive grazing farmland that produce 10,000
lambs on an annual basis for the production of cotton and wool that are later processed through
advanced technologies for the production of quality based clothing and other materials suitable
for the humans to use (Eden and Ackermann 2013).
Business units, products and service lines
There are various business units managed by the company and thus Webster Limited in
Australia has focused not only on the production of cotton, but also has been one of the largest
5
STRATEGIC MANAGEMENT
producers of walnuts and water management. The major business units include agriculture
business or agribusiness, walnuts’ production and managing diverse portfolio of water
entitlement (Hitt and Duane Ireland 2017). The company holds currently more than 40000
hectares of fertile land that are used for irrigation purposes for the production of cotton, corn and
other cereals while the extensive grazing lands serve as useful lands for sheep. The company
maintains a diverse portfolio that includes 200000 mega liters of water entitlement use for
irrigation power management and is useful for managing the crops production (Wheelen et al.
2017). It has provided the company an added advantage to manage the crop production with
ease, furthermore provide crop diversity along with the maximization of yield and pursuing
better growth scopes and opportunities to sustain in the competitive agricultural business
environment at present in Australia. The natural resources are managed properly, which has
created ease for the company to manage business in a sustainable manner considering as much as
lesser impact can be created on the environment to preserve the ecological balance in nature
(Rothaermel 2015). The business units are managed through diverse business operations and
processes through maintenance of sustainable asset base and leveraging the scale through use of
technological skills and technical expertise. This has not only deliver excellence in terms of the
products delivered to the clients, but also has maximized the productivity of the organization and
benefited the shareholders who have invested on the organization (Meyer, Neck and Meeks
2017).
Significance of largest business revenue units’
The largest business revenue unit for Webster Limited in Australia is the cotton
production and secondly, the production of in-shell premium and kernel walnuts that hold about
STRATEGIC MANAGEMENT
producers of walnuts and water management. The major business units include agriculture
business or agribusiness, walnuts’ production and managing diverse portfolio of water
entitlement (Hitt and Duane Ireland 2017). The company holds currently more than 40000
hectares of fertile land that are used for irrigation purposes for the production of cotton, corn and
other cereals while the extensive grazing lands serve as useful lands for sheep. The company
maintains a diverse portfolio that includes 200000 mega liters of water entitlement use for
irrigation power management and is useful for managing the crops production (Wheelen et al.
2017). It has provided the company an added advantage to manage the crop production with
ease, furthermore provide crop diversity along with the maximization of yield and pursuing
better growth scopes and opportunities to sustain in the competitive agricultural business
environment at present in Australia. The natural resources are managed properly, which has
created ease for the company to manage business in a sustainable manner considering as much as
lesser impact can be created on the environment to preserve the ecological balance in nature
(Rothaermel 2015). The business units are managed through diverse business operations and
processes through maintenance of sustainable asset base and leveraging the scale through use of
technological skills and technical expertise. This has not only deliver excellence in terms of the
products delivered to the clients, but also has maximized the productivity of the organization and
benefited the shareholders who have invested on the organization (Meyer, Neck and Meeks
2017).
Significance of largest business revenue units’
The largest business revenue unit for Webster Limited in Australia is the cotton
production and secondly, the production of in-shell premium and kernel walnuts that hold about
6
STRATEGIC MANAGEMENT
more than 90 percent of annual walnut production in Australia. Still, the primary focus has been
on the production of cotton that has been achieved through focus on the vision and mission
statement considering the use of latest technologies and expertise of workers to increase the
yield, furthermore manage water efficiency and usefulness to ensure that the consistency of
producing 200,000 bales of cotton every year is maintained (Gamble, Thompson and Peteraf
2013). More than 10,000 lambs are grazed for the production of wool and produce fiber based
materials required for padding to clothing and other useful materials. The agricultural fiber based
agribusiness products are exported to many countries all over Asia and with most of the produces
made available at Australia, the company has gained a string reputation and brand image due to
its consistent quality and price friendly components. The customers nowadays focus on quality
and thus the Australian fiber based agribusiness has focused on delivering the best, whether it is
the cotton fiber or walnuts through management of supply chains properly for meeting the
demands in the market segments (Lasserre 2017).
Another important business unit is the walnut plantation and growing walnuts that has
already accounted for more than 90 percent of overall walnut production in Australia. The
company, being proactive about its management of natural resources, has managed its diverse
operations and processes and made sure to develop a strong asset base that can leverage the scale
through technical knowledge and skills, furthermore benefit both the organization and its
shareholders or the individuals who have invested on the organization (Morschett, Schramm-
Klein and Zentes 2015). As the name suggests according to agribusiness, Webster Limited,
Australia has focused on the sustainable farming to achieve the long term goals by maintaining
more than 40,000 hectares of land that are fertile and suitable for the agricultural purposes. The
STRATEGIC MANAGEMENT
more than 90 percent of annual walnut production in Australia. Still, the primary focus has been
on the production of cotton that has been achieved through focus on the vision and mission
statement considering the use of latest technologies and expertise of workers to increase the
yield, furthermore manage water efficiency and usefulness to ensure that the consistency of
producing 200,000 bales of cotton every year is maintained (Gamble, Thompson and Peteraf
2013). More than 10,000 lambs are grazed for the production of wool and produce fiber based
materials required for padding to clothing and other useful materials. The agricultural fiber based
agribusiness products are exported to many countries all over Asia and with most of the produces
made available at Australia, the company has gained a string reputation and brand image due to
its consistent quality and price friendly components. The customers nowadays focus on quality
and thus the Australian fiber based agribusiness has focused on delivering the best, whether it is
the cotton fiber or walnuts through management of supply chains properly for meeting the
demands in the market segments (Lasserre 2017).
Another important business unit is the walnut plantation and growing walnuts that has
already accounted for more than 90 percent of overall walnut production in Australia. The
company, being proactive about its management of natural resources, has managed its diverse
operations and processes and made sure to develop a strong asset base that can leverage the scale
through technical knowledge and skills, furthermore benefit both the organization and its
shareholders or the individuals who have invested on the organization (Morschett, Schramm-
Klein and Zentes 2015). As the name suggests according to agribusiness, Webster Limited,
Australia has focused on the sustainable farming to achieve the long term goals by maintaining
more than 40,000 hectares of land that are fertile and suitable for the agricultural purposes. The
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STRATEGIC MANAGEMENT
agricultural activities and growing the walnut plantations has been supported by harnessing of
water portfolio, which has maximized the profitability and developed the business in
complementary crops that are supported by value adding water management activities (Vogel
and Güttel 2013). The operational processes managed by Webster consist of vertical integration
that starts with the production of nursery and then developing trees for planting and then
managing the walnut orchards, thus making it convenient for the harvesting and drying for the
fruit production. The quality finished products are the kernel and in-shell walnut, which have
been exported directly to all parts of Australia from the farm. According to Stead and Stead
(2014), the high quality food production ensures maintaining the food safety laws and rules and
is supplied to the direct end users, i.e., the customers and even to the retail shops to meet the
demands in different market segments (Stead and Stead 2014). The orchards managed by the
company are present in over 2000 hectares of area located n both New South Wales and
Tasmania. The business unit can also be called as the Horticulture business unit that produces the
in-shell and kernel walnuts in Australia. The continuous addition in orchard portfolio has made
the business unit strong and has facilitated the addition of 900 hectares more at the west of NSW,
which guarantees increase in walnut production by around 20 percent in the upcoming years as
well (Goetsch and Davis 2014). The business unit where the manufacturing and production
processes are managed is present at Leeton, where the cracking of walnut and processing
facilities are present. This business unit manages the packaging and delivery of both in-shell and
kernel walnut and ensured that the customers’ needs and preferences are met. Due to this, the
customers have also relied highly upon the company’s dedication and commitment towards the
delivery of quality authorization and best practices (Hahn 2013).
STRATEGIC MANAGEMENT
agricultural activities and growing the walnut plantations has been supported by harnessing of
water portfolio, which has maximized the profitability and developed the business in
complementary crops that are supported by value adding water management activities (Vogel
and Güttel 2013). The operational processes managed by Webster consist of vertical integration
that starts with the production of nursery and then developing trees for planting and then
managing the walnut orchards, thus making it convenient for the harvesting and drying for the
fruit production. The quality finished products are the kernel and in-shell walnut, which have
been exported directly to all parts of Australia from the farm. According to Stead and Stead
(2014), the high quality food production ensures maintaining the food safety laws and rules and
is supplied to the direct end users, i.e., the customers and even to the retail shops to meet the
demands in different market segments (Stead and Stead 2014). The orchards managed by the
company are present in over 2000 hectares of area located n both New South Wales and
Tasmania. The business unit can also be called as the Horticulture business unit that produces the
in-shell and kernel walnuts in Australia. The continuous addition in orchard portfolio has made
the business unit strong and has facilitated the addition of 900 hectares more at the west of NSW,
which guarantees increase in walnut production by around 20 percent in the upcoming years as
well (Goetsch and Davis 2014). The business unit where the manufacturing and production
processes are managed is present at Leeton, where the cracking of walnut and processing
facilities are present. This business unit manages the packaging and delivery of both in-shell and
kernel walnut and ensured that the customers’ needs and preferences are met. Due to this, the
customers have also relied highly upon the company’s dedication and commitment towards the
delivery of quality authorization and best practices (Hahn 2013).
8
STRATEGIC MANAGEMENT
In spite of the business unit managing the walnut production in Australia, still the
company’s main priority has been on the agribusiness cotton fiber production of more than
200000 bales of cotton annually. The business unit has been set up neat the Murray Darling
Basin, which has create for Webster Limited in Australia to grow the agricultural division and
produce cotton that are later transferred to different mills and clothing manufacturers for creating
clothes and other fabric items (Pearce and Robinson 2013). According to various reports, though
there was heavy rainfall in Australia, still the business units have maintained the cotton fibre
growing plants and ensured that the pollination in Riverina could be successful, which brought
good amount of yield as well. Sometimes, even during the high temperatures, the irrigating
cotton growing lands’ average yield was more than 13.28 bales per hectare during the last year.
The business units manage the large scale operations and focused on the production of more
cotton per hectare to bring out the best quality fiber (Bettis et al. 2014). Thus, it could be devised
that the cotton production business unit has been the largest and it has generated the highest
revenue for the agribusiness named Webster Limited in Australia.
Different business level strategies
The organization’s attractiveness and reputation lies in the fact about how much profit
has been gained and its position with the agribusiness industry. There are various generic
strategies including the cost leadership and cost differentiation that form the strategic planning
and have allowed the businesses to flourish and maximize the production. As stated by Morden
(2016), the business level strategies are integrated and a combination of various activities that the
firm utilizes to make sure that a competitive edge over its competitors is made and the core
competencies and skills are exploited properly within the various market segments (Morden
STRATEGIC MANAGEMENT
In spite of the business unit managing the walnut production in Australia, still the
company’s main priority has been on the agribusiness cotton fiber production of more than
200000 bales of cotton annually. The business unit has been set up neat the Murray Darling
Basin, which has create for Webster Limited in Australia to grow the agricultural division and
produce cotton that are later transferred to different mills and clothing manufacturers for creating
clothes and other fabric items (Pearce and Robinson 2013). According to various reports, though
there was heavy rainfall in Australia, still the business units have maintained the cotton fibre
growing plants and ensured that the pollination in Riverina could be successful, which brought
good amount of yield as well. Sometimes, even during the high temperatures, the irrigating
cotton growing lands’ average yield was more than 13.28 bales per hectare during the last year.
The business units manage the large scale operations and focused on the production of more
cotton per hectare to bring out the best quality fiber (Bettis et al. 2014). Thus, it could be devised
that the cotton production business unit has been the largest and it has generated the highest
revenue for the agribusiness named Webster Limited in Australia.
Different business level strategies
The organization’s attractiveness and reputation lies in the fact about how much profit
has been gained and its position with the agribusiness industry. There are various generic
strategies including the cost leadership and cost differentiation that form the strategic planning
and have allowed the businesses to flourish and maximize the production. As stated by Morden
(2016), the business level strategies are integrated and a combination of various activities that the
firm utilizes to make sure that a competitive edge over its competitors is made and the core
competencies and skills are exploited properly within the various market segments (Morden
9
STRATEGIC MANAGEMENT
2016). To select the most important business level strategies, the companies need to identify who
to serve, who are the targeted consumers that they need to satisfy and finally how their needs and
requirements can be fulfilled. The business level strategies including the cost leadership and cost
differentiation strategies have already allowed the companies to make a wider reach to its
customers and cerate richness through efficient flow and exchange of information among the
business and its customers (Hill, Jones and Schilling 2015). Thus, it could be understood that the
business level strategies are core concepts about how the companies need to use the core skills
and competencies to deliver value and put the customers’ needs at first, furthermore exceed their
expectations and continuously innovate with time. This will not enhance the company’s abilities,
but will also allow the organization to gain a sustainable position in the marketplace, that too,
within a competitive agri-business industry (Alkhafaji and Nelson 2013). The Integrated Cost
Leadership-Differentiation Strategy is another major business level strategy that has been used
by the business organizations nowadays.
Cost leadership
Harrison and John (2013) stated that the cost leadership strategy allows undertaking
various integrated actions for the production of good quality goods and deliver the best quality
services that can meet the customers;’ needs and preferences. The products and services should
be offered at lower prices, without compromising on its quality and the same thing has been done
Webster Limited I Australia during the production and delivery cotton fiber in all over Australia.
The business units of the companies do handle the primary and support activities to ensure that
the costs incurred during the management of business operations are lowered and high
competitive level of differentiation is maintained all throughout (Harrison and John 2013). The
STRATEGIC MANAGEMENT
2016). To select the most important business level strategies, the companies need to identify who
to serve, who are the targeted consumers that they need to satisfy and finally how their needs and
requirements can be fulfilled. The business level strategies including the cost leadership and cost
differentiation strategies have already allowed the companies to make a wider reach to its
customers and cerate richness through efficient flow and exchange of information among the
business and its customers (Hill, Jones and Schilling 2015). Thus, it could be understood that the
business level strategies are core concepts about how the companies need to use the core skills
and competencies to deliver value and put the customers’ needs at first, furthermore exceed their
expectations and continuously innovate with time. This will not enhance the company’s abilities,
but will also allow the organization to gain a sustainable position in the marketplace, that too,
within a competitive agri-business industry (Alkhafaji and Nelson 2013). The Integrated Cost
Leadership-Differentiation Strategy is another major business level strategy that has been used
by the business organizations nowadays.
Cost leadership
Harrison and John (2013) stated that the cost leadership strategy allows undertaking
various integrated actions for the production of good quality goods and deliver the best quality
services that can meet the customers;’ needs and preferences. The products and services should
be offered at lower prices, without compromising on its quality and the same thing has been done
Webster Limited I Australia during the production and delivery cotton fiber in all over Australia.
The business units of the companies do handle the primary and support activities to ensure that
the costs incurred during the management of business operations are lowered and high
competitive level of differentiation is maintained all throughout (Harrison and John 2013). The
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STRATEGIC MANAGEMENT
primary activities include management of logistics, supply chain activities and outbound logistics
whereas the support activities include procurement of strategies along with management of
human resources properly to meet the criteria of the company. The goods and services are
generally standardized for the cost leadership strategy, because it can allow the organization to
sell those at a considerably lower price without facing any decline in sales or profit level (Ray
Gehani 2013).
Cost differentiation
The cost differentiation strategy has enabled the companies to offer its products with
innovative and distinguishable features that are valuable for the customers and can also make
them differentiate those products from the products offered by other companies. Based on the
statements provided by Greco, Cricelli and Grimaldi (2014), this can establish the company’s
position in the competitive marketplace and at the same time, create scopes to access the
scientific researches and form string, highly skilled and knowledgeable workforce (Greco,
Cricelli and Grimaldi 2013). This will enhance the sales and marketing effectiveness and
maintain a strong reputation through innovation and consistency in quality based products. The
cost differentiation not only means bringing uniqueness in products’ features and benefits, but
also set some lower prices or higher prices to compete with the competitors and make sure to
attract the right targeted market segments to increase the customer base (Simon, Fischbach and
Schoder 2014).
STRATEGIC MANAGEMENT
primary activities include management of logistics, supply chain activities and outbound logistics
whereas the support activities include procurement of strategies along with management of
human resources properly to meet the criteria of the company. The goods and services are
generally standardized for the cost leadership strategy, because it can allow the organization to
sell those at a considerably lower price without facing any decline in sales or profit level (Ray
Gehani 2013).
Cost differentiation
The cost differentiation strategy has enabled the companies to offer its products with
innovative and distinguishable features that are valuable for the customers and can also make
them differentiate those products from the products offered by other companies. Based on the
statements provided by Greco, Cricelli and Grimaldi (2014), this can establish the company’s
position in the competitive marketplace and at the same time, create scopes to access the
scientific researches and form string, highly skilled and knowledgeable workforce (Greco,
Cricelli and Grimaldi 2013). This will enhance the sales and marketing effectiveness and
maintain a strong reputation through innovation and consistency in quality based products. The
cost differentiation not only means bringing uniqueness in products’ features and benefits, but
also set some lower prices or higher prices to compete with the competitors and make sure to
attract the right targeted market segments to increase the customer base (Simon, Fischbach and
Schoder 2014).
11
STRATEGIC MANAGEMENT
Figure: Model for business level strategies (Simon, Fischbach and Schoder 2014)
Integrated Cost Leadership-Differentiation Strategy
The Integrated Cost Leadership-Differentiation Strategy is another business level strategy
that combines both the cost leadership and cost differentiation strategies to survive in the global
competition that has been increasing at present. While few companies follow the single generic
business level strategy, this kind of effective strategy has the ability to turn the organization
Webster Limited into better business unit that can position itself within the competitive global
business environment and adapt to changes quickly through learning of new skills technologies,
knowledge and expertise (Hanson et al. 2016). The leveraging of core competencies and skills
across the business units of Webster and product lines are further managed to put differentiable
features to the products and deliver better customer value at a much lower cost when compared
STRATEGIC MANAGEMENT
Figure: Model for business level strategies (Simon, Fischbach and Schoder 2014)
Integrated Cost Leadership-Differentiation Strategy
The Integrated Cost Leadership-Differentiation Strategy is another business level strategy
that combines both the cost leadership and cost differentiation strategies to survive in the global
competition that has been increasing at present. While few companies follow the single generic
business level strategy, this kind of effective strategy has the ability to turn the organization
Webster Limited into better business unit that can position itself within the competitive global
business environment and adapt to changes quickly through learning of new skills technologies,
knowledge and expertise (Hanson et al. 2016). The leveraging of core competencies and skills
across the business units of Webster and product lines are further managed to put differentiable
features to the products and deliver better customer value at a much lower cost when compared
12
STRATEGIC MANAGEMENT
to the products supplied by competitor businesses without making any compromise on the
products’ or services’ quality. Engert, Rauter and Baumgartner (2016) argued that few of the
benefits of this kind of strategy are enhanced ability to adapt to changes more quickly, whether it
is environmental changes or changes in needs and expectations of the customers, learning new
skills and technologies become easy and the flexible manufacturing and production system will
maximize the production of differentiated products available at lower prices (Engert, Rauter and
Baumgartner 2016). The management of information networks will be possible along with the
use of Total Quality Management or TQM for the creation of high quality differentiated products
through the reduction of expenses and costs incurred while managing the production process.
Analysis of the Agribusiness’ business level strategy
According to the agribusiness, i.e., Webster Limited’s focus on sustainability and
benefiting the stakeholders, it is important to implement the right business level strategy among
these three different strategies. The fulfillment of obligations and responsibilities of the various
stakeholders involved in business is dependent upon the need for establishing an effective
business level strategy and aim to meet the practice in standards related to accountability,
responsibility, openness, transparency and disclosure of brand image among the clients (Krause
2015). This will draw in more clients and create a huge customer base, which can be influenced
in making purchases from the company on a consistent manner. As stated by Le Heron (2017),
the integrated Cost Leadership differentiation Strategy is considered as effective, because of its
ability to leverage the core skills and competencies with proper use of assets owned by the
company, furthermore maintain good standards of quality through adoption of new technologies
(Le Heron 2017). With the use of this strategy, Webster Limited would also be able to use a
STRATEGIC MANAGEMENT
to the products supplied by competitor businesses without making any compromise on the
products’ or services’ quality. Engert, Rauter and Baumgartner (2016) argued that few of the
benefits of this kind of strategy are enhanced ability to adapt to changes more quickly, whether it
is environmental changes or changes in needs and expectations of the customers, learning new
skills and technologies become easy and the flexible manufacturing and production system will
maximize the production of differentiated products available at lower prices (Engert, Rauter and
Baumgartner 2016). The management of information networks will be possible along with the
use of Total Quality Management or TQM for the creation of high quality differentiated products
through the reduction of expenses and costs incurred while managing the production process.
Analysis of the Agribusiness’ business level strategy
According to the agribusiness, i.e., Webster Limited’s focus on sustainability and
benefiting the stakeholders, it is important to implement the right business level strategy among
these three different strategies. The fulfillment of obligations and responsibilities of the various
stakeholders involved in business is dependent upon the need for establishing an effective
business level strategy and aim to meet the practice in standards related to accountability,
responsibility, openness, transparency and disclosure of brand image among the clients (Krause
2015). This will draw in more clients and create a huge customer base, which can be influenced
in making purchases from the company on a consistent manner. As stated by Le Heron (2017),
the integrated Cost Leadership differentiation Strategy is considered as effective, because of its
ability to leverage the core skills and competencies with proper use of assets owned by the
company, furthermore maintain good standards of quality through adoption of new technologies
(Le Heron 2017). With the use of this strategy, Webster Limited would also be able to use a
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STRATEGIC MANAGEMENT
flexible manufacturing system and reduce the costs incurred while managing the business
operations and processes. The TQM approaches should further assist in the production of high
quality products with differentiable features that can make the clients choose between the
company products among the other products available in the market place (Council 2013).
The integrated cost leadership differentiation strategy has helped Webster Limited to
maintain a flexible system of manufacturing and production that has been controlled by a
computer system. This has also allowed the company to respond to the changes in needs and
requirements of the market segments, furthermore maintain a low cost advantage of large scale
manufacturing and production. Being focused on the production of cotton fiber, the company
needs to maintain consistent bales every year and this it should be important to produce products
and services in moderate as well as in flexible quantities (Gyau et al. 2014). With the
implementation of this business level strategy, it has also become easier for Webster Limited in
Australia to manage information networks across companies and establish interdependency
between the external and internal value creation activities of the company. Few examples of
include the company’s linkage with retailers, suppliers, subcontractors and other companies that
produce clothes with the use of cotton fibers supplied by the company (Raj 2017). The integrated
business level strategy has also helped in managing the Total Quality Management systems to
improve the quality of products and services along with enhanced productivity. The improved
quality of products has further helped in managing the attention of customers towards the
company products regarding its performance, reliability and convenience of the clothes prepared
with the help of these cotton fibers. Shields et al. (2015) quoted that the company’s maintenance
of large asset base along with proper allocation of tools, techniques, resources and training
STRATEGIC MANAGEMENT
flexible manufacturing system and reduce the costs incurred while managing the business
operations and processes. The TQM approaches should further assist in the production of high
quality products with differentiable features that can make the clients choose between the
company products among the other products available in the market place (Council 2013).
The integrated cost leadership differentiation strategy has helped Webster Limited to
maintain a flexible system of manufacturing and production that has been controlled by a
computer system. This has also allowed the company to respond to the changes in needs and
requirements of the market segments, furthermore maintain a low cost advantage of large scale
manufacturing and production. Being focused on the production of cotton fiber, the company
needs to maintain consistent bales every year and this it should be important to produce products
and services in moderate as well as in flexible quantities (Gyau et al. 2014). With the
implementation of this business level strategy, it has also become easier for Webster Limited in
Australia to manage information networks across companies and establish interdependency
between the external and internal value creation activities of the company. Few examples of
include the company’s linkage with retailers, suppliers, subcontractors and other companies that
produce clothes with the use of cotton fibers supplied by the company (Raj 2017). The integrated
business level strategy has also helped in managing the Total Quality Management systems to
improve the quality of products and services along with enhanced productivity. The improved
quality of products has further helped in managing the attention of customers towards the
company products regarding its performance, reliability and convenience of the clothes prepared
with the help of these cotton fibers. Shields et al. (2015) quoted that the company’s maintenance
of large asset base along with proper allocation of tools, techniques, resources and training
14
STRATEGIC MANAGEMENT
programs arranged for the employees have enhanced the workforce potential and created a
positive impact on the functional areas of the business (Shields et al. 2015). Therefore, it can be
stated that the integrated cost leadership differentiation strategy has been the agribusiness’
business level strategy that has not only helped in keeping the costs lowered and manage product
differentiation but also has improved the capacity of Webster Limited, Australia to deal with the
major forces like threats of new entrants, substitute products, competitive rivalry and much more.
Model of competitive reality
The model of competitive reality means the activities that are part of the system managed
by Webster Limited in Australia to ensure that it gains competitive advantage over its
competitors in business. The competitive advantage or reality model has been proposed by
renowned theorist Michael Porter, who has made the company learn about the effective
competitive strategies and undertake any defensive actions for creating a sustainable position
within the industry, furthermore deal with the competitive forces and obtain higher rate of return
on the investments made on the organization (Cania 2014). Nowadays, with the evolvement of
agribusinesses, it has become equally important for companies like Webster Limited in Australia
to identify the needs of the customers and determine the innovative ways to address those needs
effectively, furthermore provide value proposition and hold a stronger competitive position when
compared to its rivalries in business. According to Banker, Mashruwala and Tripathy (2014), the
competitive reality model has been used by the company to develop own capabilities and explore
the different sources of revenue and strategic resources required for enhancing the production
level and increase the profit level of the company too (D. Banker, Mashruwala and Tripathy
2014). The enhancement of capabilities of the organization depend on the value chain framework
STRATEGIC MANAGEMENT
programs arranged for the employees have enhanced the workforce potential and created a
positive impact on the functional areas of the business (Shields et al. 2015). Therefore, it can be
stated that the integrated cost leadership differentiation strategy has been the agribusiness’
business level strategy that has not only helped in keeping the costs lowered and manage product
differentiation but also has improved the capacity of Webster Limited, Australia to deal with the
major forces like threats of new entrants, substitute products, competitive rivalry and much more.
Model of competitive reality
The model of competitive reality means the activities that are part of the system managed
by Webster Limited in Australia to ensure that it gains competitive advantage over its
competitors in business. The competitive advantage or reality model has been proposed by
renowned theorist Michael Porter, who has made the company learn about the effective
competitive strategies and undertake any defensive actions for creating a sustainable position
within the industry, furthermore deal with the competitive forces and obtain higher rate of return
on the investments made on the organization (Cania 2014). Nowadays, with the evolvement of
agribusinesses, it has become equally important for companies like Webster Limited in Australia
to identify the needs of the customers and determine the innovative ways to address those needs
effectively, furthermore provide value proposition and hold a stronger competitive position when
compared to its rivalries in business. According to Banker, Mashruwala and Tripathy (2014), the
competitive reality model has been used by the company to develop own capabilities and explore
the different sources of revenue and strategic resources required for enhancing the production
level and increase the profit level of the company too (D. Banker, Mashruwala and Tripathy
2014). The enhancement of capabilities of the organization depend on the value chain framework
15
STRATEGIC MANAGEMENT
where the assets owned by the company and strategic resources are managed to ensure smooth
business functioning all throughout.
Figure: Business model (D. Banker, Mashruwala and Tripathy 2014)
According to this model, the organization needs to deal with all these forces, especially
the needs of customers to be fulfilled though all the other aspects also hold useful significance
for achieving competitive advantage in business. The other five forces are social environment,
legal environment, competition in the industry and the technological changes managed (Galliers
and Leidner 2014). One of the major components responsible for gaining long term success in
the competitive business environment is the organization’s capability to respond to changes in
the market conditions and through the formulation of strategies required to develop significant
temporary advantages. According to Porter, there are five major strategies that are needed to be
STRATEGIC MANAGEMENT
where the assets owned by the company and strategic resources are managed to ensure smooth
business functioning all throughout.
Figure: Business model (D. Banker, Mashruwala and Tripathy 2014)
According to this model, the organization needs to deal with all these forces, especially
the needs of customers to be fulfilled though all the other aspects also hold useful significance
for achieving competitive advantage in business. The other five forces are social environment,
legal environment, competition in the industry and the technological changes managed (Galliers
and Leidner 2014). One of the major components responsible for gaining long term success in
the competitive business environment is the organization’s capability to respond to changes in
the market conditions and through the formulation of strategies required to develop significant
temporary advantages. According to Porter, there are five major strategies that are needed to be
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STRATEGIC MANAGEMENT
followed by the organizations to remain competitive within the business environment (Brenes,
Montoya and Ciravegna 2014). The relative position that an organization holds determines
whether the company has achieved the specific level of profit or loss in business. Webster
Limited in Australia has mainly prioritized on the differentiation and low cost to obtain average
profitability, which is fundamental to success and long run competitive advantage in business
(Tanwar 2013). The cost leadership, differentiation and focus are the generic strategies that the
company implements for achieving above the average performance and make useful decisions to
gain a competitive edge over its competitors in the future days to come as well (Nickols 2016).
Competitive advantage reality model
Lower cost Differentiation
1. Cost leadership 2. Differentiation
3 (i). Cost focus 3 (ii). Differentiation focus
The cost leadership strategy implemented has allowed Webster to keep the costs of
operations lowered and become one the major low cost producer of cotton fiber in Australia with
STRATEGIC MANAGEMENT
followed by the organizations to remain competitive within the business environment (Brenes,
Montoya and Ciravegna 2014). The relative position that an organization holds determines
whether the company has achieved the specific level of profit or loss in business. Webster
Limited in Australia has mainly prioritized on the differentiation and low cost to obtain average
profitability, which is fundamental to success and long run competitive advantage in business
(Tanwar 2013). The cost leadership, differentiation and focus are the generic strategies that the
company implements for achieving above the average performance and make useful decisions to
gain a competitive edge over its competitors in the future days to come as well (Nickols 2016).
Competitive advantage reality model
Lower cost Differentiation
1. Cost leadership 2. Differentiation
3 (i). Cost focus 3 (ii). Differentiation focus
The cost leadership strategy implemented has allowed Webster to keep the costs of
operations lowered and become one the major low cost producer of cotton fiber in Australia with
17
STRATEGIC MANAGEMENT
focus on sustainable measures. The economies of scale, better accessibility to raw materials and
resources and consideration of major forces have helped in achieving sustainability and remain a
good performer within the competitive business environment with higher revenue generation and
increased efficiency of business operations all throughout (Rothaermel 2015). The company abs
remained unique, because there are no other companies all over Australia that follow similar
approaches of managing the production of cotton and with the unique features of products and
innovative ways of managing business, the company has offered good quality cotton fiber at
premium prices for the cloth manufacturing shops in Australia. Another major aspect of the
competitive advantage reality model is the cost and differentiation focus, which has assisted
Webster Limited to select different market segments and develop its strategy according to the
needs and preferences in those market segments (Hill, Jones and Schilling 2014).
During the present years, two major developments have dominated the textile and apparel
industries including the fast fashion and production of high quality cotton in Australia. The new
products sporting new designs and uniqueness are common because of the innovative approaches
undertaken by the cotton business nowadays. Based on the explanation provided by Huo et al.
(2014), the agribusiness is something new, which has not only produced huge quantities of
cotton fiber, but at the same time, also developed the farming lands and expanded it, which has
further facilitated the maintenance of sustainable measures to keep the environment safe and
healthy (Huo et al. 2014). The protection of environment and encouraging diversity are of equal
importance beside the production of cotton fiber nowadays. Thus, the present regime has been
designed for encouraging the development of a sustainable, competitive and market driven
cotton sector that can safeguard the legal communities are large and at the same time, respect the
STRATEGIC MANAGEMENT
focus on sustainable measures. The economies of scale, better accessibility to raw materials and
resources and consideration of major forces have helped in achieving sustainability and remain a
good performer within the competitive business environment with higher revenue generation and
increased efficiency of business operations all throughout (Rothaermel 2015). The company abs
remained unique, because there are no other companies all over Australia that follow similar
approaches of managing the production of cotton and with the unique features of products and
innovative ways of managing business, the company has offered good quality cotton fiber at
premium prices for the cloth manufacturing shops in Australia. Another major aspect of the
competitive advantage reality model is the cost and differentiation focus, which has assisted
Webster Limited to select different market segments and develop its strategy according to the
needs and preferences in those market segments (Hill, Jones and Schilling 2014).
During the present years, two major developments have dominated the textile and apparel
industries including the fast fashion and production of high quality cotton in Australia. The new
products sporting new designs and uniqueness are common because of the innovative approaches
undertaken by the cotton business nowadays. Based on the explanation provided by Huo et al.
(2014), the agribusiness is something new, which has not only produced huge quantities of
cotton fiber, but at the same time, also developed the farming lands and expanded it, which has
further facilitated the maintenance of sustainable measures to keep the environment safe and
healthy (Huo et al. 2014). The protection of environment and encouraging diversity are of equal
importance beside the production of cotton fiber nowadays. Thus, the present regime has been
designed for encouraging the development of a sustainable, competitive and market driven
cotton sector that can safeguard the legal communities are large and at the same time, respect the
18
STRATEGIC MANAGEMENT
standards of environmental protection. Webster has managed sustainability through support of
legal commitments and producing cotton in various places where it should be important for the
agriculture based economy (Marchi, Maria and Micelli 2013). The cotton growers assigned for
managing the production process at Webster Limited, Australia have made sure to abide by the
laws, rules, regulations and standards of environmental protection and even promoted animal
welfare and safety regarding food consumption too. The authorized varieties of seeds are planted
and grow crops that can meet the minimum quality of cotton actually harvested. Thus, the
agricultural facilities have been benefited at the organization while the cotton production has
increased in spite of the changes in climatic conditions experienced in Australia (Hrebiniak
2013). Thus, the major focus on production of cotton has been successful for Webster Limited,
Australia and it has helped in the maximization of yield along with management of water
efficiency, especially needed for enhancing the production of more than 200000 bales of cotton
every year in Australia.
Implementation plan and an evaluation strategy
The implementation of a strategic plan can help in identifying the strengths, weaknesses,
opportunities and threats faced by the company, furthermore crate strategic directions to manage
cooperative agreement. The evaluation strategy, on the other hand, ensures that the right strategic
plan is implemented and the strengthening of program activities is possible through the
addressing of areas of improvements and ensuring new accomplishments through innovation and
business openness (Teeratansirikool et al. 2013). The strategic management planning is the
procedure that enables the organization to make decisions and undertake actions for ensuring that
the right implementation program is implemented and manage proper use of resources,
STRATEGIC MANAGEMENT
standards of environmental protection. Webster has managed sustainability through support of
legal commitments and producing cotton in various places where it should be important for the
agriculture based economy (Marchi, Maria and Micelli 2013). The cotton growers assigned for
managing the production process at Webster Limited, Australia have made sure to abide by the
laws, rules, regulations and standards of environmental protection and even promoted animal
welfare and safety regarding food consumption too. The authorized varieties of seeds are planted
and grow crops that can meet the minimum quality of cotton actually harvested. Thus, the
agricultural facilities have been benefited at the organization while the cotton production has
increased in spite of the changes in climatic conditions experienced in Australia (Hrebiniak
2013). Thus, the major focus on production of cotton has been successful for Webster Limited,
Australia and it has helped in the maximization of yield along with management of water
efficiency, especially needed for enhancing the production of more than 200000 bales of cotton
every year in Australia.
Implementation plan and an evaluation strategy
The implementation of a strategic plan can help in identifying the strengths, weaknesses,
opportunities and threats faced by the company, furthermore crate strategic directions to manage
cooperative agreement. The evaluation strategy, on the other hand, ensures that the right strategic
plan is implemented and the strengthening of program activities is possible through the
addressing of areas of improvements and ensuring new accomplishments through innovation and
business openness (Teeratansirikool et al. 2013). The strategic management planning is the
procedure that enables the organization to make decisions and undertake actions for ensuring that
the right implementation program is implemented and manage proper use of resources,
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engagement of stakeholders, promote communication and make decisions that are fruitful and
necessary for the business success. The implementation of SWOT framework at Webster
Limited has assisted in identifying the major areas of strengths and weaknesses along with the
opportunities and threats that might be faced as well. The implementation plan ensures that the
strategies in the strategic planning are put into actions as stated in the implementation timeline,
furthermore reflect on the accomplishment of SMART goals and objectives along with the
measurement of progress (Ray Gehani 2013). The evaluation strategy enables the
implementation of the strategic plan and program activities through collection of important data
and information and monitoring the organizational activities. The future outcomes are dependent
upon the decisions that are made by the businesses at present. Though there might be scopes for
uncertainties, still to increase the profitability of the organization and enable successful strategic
planning ahead, it is important to manage the implementation plan in agricultural business and
create a positive impact on the agricultural production, i.e., the production of cotton fiber for
Webster Limited in Australia (Longoni and Cagliano 2015). There could be price related risks,
production risks, rates of interest fluctuations and changes in Government policies and programs,
which are needed to be mitigated for ensuring successful business functioning along with
increased revenue generation.
The implementation of SWOT analysis framework would not only guide the company’s
focus on evaluation of strengths, weaknesses, opportunities and threats, but could also relate
these aspects to the major functional areas of management including the production, marketing,
human resources and financial management. The focus should be internal while identifying the
strengths and weaknesses while the external factors should include the opportunities and threats
STRATEGIC MANAGEMENT
engagement of stakeholders, promote communication and make decisions that are fruitful and
necessary for the business success. The implementation of SWOT framework at Webster
Limited has assisted in identifying the major areas of strengths and weaknesses along with the
opportunities and threats that might be faced as well. The implementation plan ensures that the
strategies in the strategic planning are put into actions as stated in the implementation timeline,
furthermore reflect on the accomplishment of SMART goals and objectives along with the
measurement of progress (Ray Gehani 2013). The evaluation strategy enables the
implementation of the strategic plan and program activities through collection of important data
and information and monitoring the organizational activities. The future outcomes are dependent
upon the decisions that are made by the businesses at present. Though there might be scopes for
uncertainties, still to increase the profitability of the organization and enable successful strategic
planning ahead, it is important to manage the implementation plan in agricultural business and
create a positive impact on the agricultural production, i.e., the production of cotton fiber for
Webster Limited in Australia (Longoni and Cagliano 2015). There could be price related risks,
production risks, rates of interest fluctuations and changes in Government policies and programs,
which are needed to be mitigated for ensuring successful business functioning along with
increased revenue generation.
The implementation of SWOT analysis framework would not only guide the company’s
focus on evaluation of strengths, weaknesses, opportunities and threats, but could also relate
these aspects to the major functional areas of management including the production, marketing,
human resources and financial management. The focus should be internal while identifying the
strengths and weaknesses while the external factors should include the opportunities and threats
20
STRATEGIC MANAGEMENT
(Bereznoi 2015). The proximity to a major market in Australia, a large city in Australia can
provide more scopes and opportunities to the cotton fiber production while the threats could be
caused due to the emergence of new competitors and changes in agricultural production or due to
the use of environmental policies and frameworks.
SWOT analysis for Webster Limited
Strengths
The company has been one of the pillars in the production of good quality cotton fiber
and walnut production in Australia and it has a positive brand image and identity as well.
The capital expenditures have brought good returns on investments due to the successful
execution of projects and thus new revenue streams have been created as well.
The company boosts of a highly skilled workforce consisting of employees who are
knowledgeable about the agricultural activities and producing the optimum quality cotton
with lower costs incurred during the production process.
The customers are quite satisfied with the products and services delivered and thus good
bran equity has been present among the potential customers too (Ruan 2013).
The strong free flow of cash along with automation of activities has further enhanced the
quality of goods delivered by the company and this has allowed to enter new markets
with superior performance and remained competitive as well.
Weaknesses
STRATEGIC MANAGEMENT
(Bereznoi 2015). The proximity to a major market in Australia, a large city in Australia can
provide more scopes and opportunities to the cotton fiber production while the threats could be
caused due to the emergence of new competitors and changes in agricultural production or due to
the use of environmental policies and frameworks.
SWOT analysis for Webster Limited
Strengths
The company has been one of the pillars in the production of good quality cotton fiber
and walnut production in Australia and it has a positive brand image and identity as well.
The capital expenditures have brought good returns on investments due to the successful
execution of projects and thus new revenue streams have been created as well.
The company boosts of a highly skilled workforce consisting of employees who are
knowledgeable about the agricultural activities and producing the optimum quality cotton
with lower costs incurred during the production process.
The customers are quite satisfied with the products and services delivered and thus good
bran equity has been present among the potential customers too (Ruan 2013).
The strong free flow of cash along with automation of activities has further enhanced the
quality of goods delivered by the company and this has allowed to enter new markets
with superior performance and remained competitive as well.
Weaknesses
21
STRATEGIC MANAGEMENT
Due to its focus on three major areas of business including the cotton fiber production,
walnut production and water management, the company had to raise more capital for
making investments sin the channel for gaining long term growth and success.
Being one of the leading agribusinesses, still the company has faced issues and
challenges to maintain success outside the core business activities, which is a major
weaknesses too
The marketing of products has suffered due to lack of proper product positioning along
with inability to use the unique selling proposition strategies (websterltd.com.au 2018).
The financial planning was not managed properly, due to which the budgetary activities
have hindered and this has created lack of money to be used for the implementation of
newer technologies.
The emergence of competitor could also be another weaknesses faced by Webster
Limited in Australia.
Opportunities
The focus on keeping the environment clean and safe has created new scopes for the
company to manage sustainable measures and maintained the environmental standards
too.
The Government green initiatives have opened up new scopes for Webster Limited to
enable procurement of products and services by the state and federal contractors of the
Government too (Robson 2015).
STRATEGIC MANAGEMENT
Due to its focus on three major areas of business including the cotton fiber production,
walnut production and water management, the company had to raise more capital for
making investments sin the channel for gaining long term growth and success.
Being one of the leading agribusinesses, still the company has faced issues and
challenges to maintain success outside the core business activities, which is a major
weaknesses too
The marketing of products has suffered due to lack of proper product positioning along
with inability to use the unique selling proposition strategies (websterltd.com.au 2018).
The financial planning was not managed properly, due to which the budgetary activities
have hindered and this has created lack of money to be used for the implementation of
newer technologies.
The emergence of competitor could also be another weaknesses faced by Webster
Limited in Australia.
Opportunities
The focus on keeping the environment clean and safe has created new scopes for the
company to manage sustainable measures and maintained the environmental standards
too.
The Government green initiatives have opened up new scopes for Webster Limited to
enable procurement of products and services by the state and federal contractors of the
Government too (Robson 2015).
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STRATEGIC MANAGEMENT
The lower rate of inflation in Australia has created ease for the company to bring more
stability in the market and maintain proper prices of products without compromising on
the quality of cotton fiber produced as well.
Threats
The demands for the products remain almost same all throughout the year, but the cotton
production and walnut production are managed at few months in the entire year. Due to
this, the supplies might be unable to meet the demands in the market sometimes.
The increased competition due to the emergence of new entrants and substitute products
like other kinds of artificial fiber produced by the other companies could be a serious
threat for Webster in Australia (Eden and Ackermann 2013).
Lack of innovative products and supply of the cotton and walnuts is not regular, which
could lower down the interest among the customers and lead to decline in sales and
profitability too.
The implementation plan also includes following the various laws and legislations
including the Agricultural Operations Policy and improves the four major areas of intervention
including the agricultural production, marketing and distribution, agro processing and input
supply and distribution. The implementation plan also includes the corporate governance
management required to fulfill the roles and responsibilities of the various stakeholders in
business and ensure that the Board of Webster Limited maintains a robust and effective
governance system for smooth business functioning (Wheelen et al. 2017). To ensure
management of proper implementation plan, it is necessary for The Australian Securities
STRATEGIC MANAGEMENT
The lower rate of inflation in Australia has created ease for the company to bring more
stability in the market and maintain proper prices of products without compromising on
the quality of cotton fiber produced as well.
Threats
The demands for the products remain almost same all throughout the year, but the cotton
production and walnut production are managed at few months in the entire year. Due to
this, the supplies might be unable to meet the demands in the market sometimes.
The increased competition due to the emergence of new entrants and substitute products
like other kinds of artificial fiber produced by the other companies could be a serious
threat for Webster in Australia (Eden and Ackermann 2013).
Lack of innovative products and supply of the cotton and walnuts is not regular, which
could lower down the interest among the customers and lead to decline in sales and
profitability too.
The implementation plan also includes following the various laws and legislations
including the Agricultural Operations Policy and improves the four major areas of intervention
including the agricultural production, marketing and distribution, agro processing and input
supply and distribution. The implementation plan also includes the corporate governance
management required to fulfill the roles and responsibilities of the various stakeholders in
business and ensure that the Board of Webster Limited maintains a robust and effective
governance system for smooth business functioning (Wheelen et al. 2017). To ensure
management of proper implementation plan, it is necessary for The Australian Securities
23
STRATEGIC MANAGEMENT
Exchange (“ASX”) Corporate Governance Council to implement guidelines, rules and
regulations so that the corporate governance principles are complied with considering the
organizational structure, size and scale of business operations managed. Webster Limited in
Australia has focused on promoting ethical and making responsible decisions, which has enabled
the Code of Conduct of the business to establish various procedures, guidelines, rules and
regulations that can allow the organization to maintain high ethical standards and at the same
time, foster openness, transparency and proper management of accountability too (Meyer, Neck
and Meeks 2017).
The evaluation strategy has helped in evaluating the various duties managed by the
employees and other stakeholders including managing the confidentiality of information, conflict
of interest, protecting the assets owned by the organization, managing employment practices and
finally fulfilling the responsibilities of the community too. Webster Limited in Australia adopted
a Securities Trading Policy that prevented the trading activities with the shares of the company
by the employees, which ensured that the evaluation strategy has been successful. The evaluation
strategy has enabled the employees and directors of the company to trade in the Securities by
complying with the Securities Trading policy (Vogel and Güttel 2013). The evaluation strategy
also enables evaluating the significance of human resource management strategies and ensuring
that the candidates are selected from different backgrounds regardless of their color, race,
ethnicity and cultural background. This has promoted diversity at the workplace and respected
the rights by benefiting the shareholders or investors too (Nickols 2016). The human resource
strategy has been evaluated, which showed that the company maintains proper remuneration
policies and wages structure to pay the workers properly and at the same time, make them
STRATEGIC MANAGEMENT
Exchange (“ASX”) Corporate Governance Council to implement guidelines, rules and
regulations so that the corporate governance principles are complied with considering the
organizational structure, size and scale of business operations managed. Webster Limited in
Australia has focused on promoting ethical and making responsible decisions, which has enabled
the Code of Conduct of the business to establish various procedures, guidelines, rules and
regulations that can allow the organization to maintain high ethical standards and at the same
time, foster openness, transparency and proper management of accountability too (Meyer, Neck
and Meeks 2017).
The evaluation strategy has helped in evaluating the various duties managed by the
employees and other stakeholders including managing the confidentiality of information, conflict
of interest, protecting the assets owned by the organization, managing employment practices and
finally fulfilling the responsibilities of the community too. Webster Limited in Australia adopted
a Securities Trading Policy that prevented the trading activities with the shares of the company
by the employees, which ensured that the evaluation strategy has been successful. The evaluation
strategy has enabled the employees and directors of the company to trade in the Securities by
complying with the Securities Trading policy (Vogel and Güttel 2013). The evaluation strategy
also enables evaluating the significance of human resource management strategies and ensuring
that the candidates are selected from different backgrounds regardless of their color, race,
ethnicity and cultural background. This has promoted diversity at the workplace and respected
the rights by benefiting the shareholders or investors too (Nickols 2016). The human resource
strategy has been evaluated, which showed that the company maintains proper remuneration
policies and wages structure to pay the workers properly and at the same time, make them
24
STRATEGIC MANAGEMENT
perform to the potential. Webster Limited also implemented the performance based
remuneration, which facilitated the performances of the employees and made them accomplish
the business goals with much ease and effectiveness (Pearce and Robinson 2013). The evaluation
strategy has also helped in determining the strategic feasibility and allowed the company to gain
the capability to implement strategies effectively, furthermore evaluate the resources, both
human resources and financial resources to manage smooth business functioning. The evaluation
strategy has also identified the consequences of actions and ensured that the right decisions are
made at the right time for reaching the targets set by Webster Limited, Australia during the
manufacturing and production of good quality cotton fiber in Australia (Hill, Jones and Schilling
2015).
Recommendations for the future strategic direction
Few major recommendations for creating a future strategic direction are as follows:
It is recommended for Webster Limited, Australia to analyze the various forces affecting
the business with the use of Porter’s five forces framework and then develop a strategic
vision and mission to move in the right direction
Climatic changes cannot be controlled, still the company should focus on environmental
measures to keep the environment safe and ensure that a proper ecological balance in
nature is maintained while the processes of plantation and production of good quality
cotton fiber are carried out.
STRATEGIC MANAGEMENT
perform to the potential. Webster Limited also implemented the performance based
remuneration, which facilitated the performances of the employees and made them accomplish
the business goals with much ease and effectiveness (Pearce and Robinson 2013). The evaluation
strategy has also helped in determining the strategic feasibility and allowed the company to gain
the capability to implement strategies effectively, furthermore evaluate the resources, both
human resources and financial resources to manage smooth business functioning. The evaluation
strategy has also identified the consequences of actions and ensured that the right decisions are
made at the right time for reaching the targets set by Webster Limited, Australia during the
manufacturing and production of good quality cotton fiber in Australia (Hill, Jones and Schilling
2015).
Recommendations for the future strategic direction
Few major recommendations for creating a future strategic direction are as follows:
It is recommended for Webster Limited, Australia to analyze the various forces affecting
the business with the use of Porter’s five forces framework and then develop a strategic
vision and mission to move in the right direction
Climatic changes cannot be controlled, still the company should focus on environmental
measures to keep the environment safe and ensure that a proper ecological balance in
nature is maintained while the processes of plantation and production of good quality
cotton fiber are carried out.
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STRATEGIC MANAGEMENT
The assessment of feasibility and forecasting the outcomes through prior assumptions
made prior to the development of implementation plan and evaluation strategy is
recommended as well for Webster Limited, Australia.
The strategy should be matched with the external environment and ensure that the
marketplace consisting of the competitors, customers and regulatory bodies are dealt with
properly for fulfill the duties and responsibilities
The maintenance of Permanent Water Licenses is and managing the Group’s permanent
water rights are recommended for making judgments regarding the present market
conditions
It is recommended to adopt the Integrated Pest Management or IPM introduced by BCI
for managing proper distribution and use of pesticides to keep the cotton plantations safe
and productive
The monitoring of the crops for pests and identifying the sources of damage have been
done in conjunction with the utilization of pest thresholds and to accept some degree of
toleration for the damage of crops.
The shareholders’ intent should be understood and they must be provided with god rate of
return on investments for keeping them satisfied and improve the ability of business to
make wider reach and business expansion for Webster Limited, Australia.
Conclusion
The production of cotton along with being a large producer of walnuts had made the
company deliver its products both locally and globally and thus the produced materials have hold
a string reputation in terms of quality and consistency for Webster Limited, Australia. The high
STRATEGIC MANAGEMENT
The assessment of feasibility and forecasting the outcomes through prior assumptions
made prior to the development of implementation plan and evaluation strategy is
recommended as well for Webster Limited, Australia.
The strategy should be matched with the external environment and ensure that the
marketplace consisting of the competitors, customers and regulatory bodies are dealt with
properly for fulfill the duties and responsibilities
The maintenance of Permanent Water Licenses is and managing the Group’s permanent
water rights are recommended for making judgments regarding the present market
conditions
It is recommended to adopt the Integrated Pest Management or IPM introduced by BCI
for managing proper distribution and use of pesticides to keep the cotton plantations safe
and productive
The monitoring of the crops for pests and identifying the sources of damage have been
done in conjunction with the utilization of pest thresholds and to accept some degree of
toleration for the damage of crops.
The shareholders’ intent should be understood and they must be provided with god rate of
return on investments for keeping them satisfied and improve the ability of business to
make wider reach and business expansion for Webster Limited, Australia.
Conclusion
The production of cotton along with being a large producer of walnuts had made the
company deliver its products both locally and globally and thus the produced materials have hold
a string reputation in terms of quality and consistency for Webster Limited, Australia. The high
26
STRATEGIC MANAGEMENT
level of skills, knowledge and expertise of the employees and working with the business partners
further contributed to the development of various scopes and opportunities and allowed the
agricultural division to grow on a large scale fiber based agribusiness in Australia. Webster
Limited in Australia maintained various business level strategies including the cost leadership,
differentiation and integrated cost leadership differentiation strategy for becoming successful in
the competitive business environment. The agribusiness aimed at carrying out sustainable
measures and at the same time, maximized the production level of the organization though
maintaining the quality standards with the implementation of Total Quality Management or
TQM system. With the management quality standards, the products were able to fulfill the need
and preferences of the customer while the competitive advantage reality model by Porter further
assisted in obtaining good rate of return on investments made. This provided value proposition as
well as managed proper supply chains to meet the demands in the marketplace, furthermore
allowed the company to sustain a competitive position within the business environment through
production and supply of more quantities of cotton fiber all over Australia and in other parts of
the world.
STRATEGIC MANAGEMENT
level of skills, knowledge and expertise of the employees and working with the business partners
further contributed to the development of various scopes and opportunities and allowed the
agricultural division to grow on a large scale fiber based agribusiness in Australia. Webster
Limited in Australia maintained various business level strategies including the cost leadership,
differentiation and integrated cost leadership differentiation strategy for becoming successful in
the competitive business environment. The agribusiness aimed at carrying out sustainable
measures and at the same time, maximized the production level of the organization though
maintaining the quality standards with the implementation of Total Quality Management or
TQM system. With the management quality standards, the products were able to fulfill the need
and preferences of the customer while the competitive advantage reality model by Porter further
assisted in obtaining good rate of return on investments made. This provided value proposition as
well as managed proper supply chains to meet the demands in the marketplace, furthermore
allowed the company to sustain a competitive position within the business environment through
production and supply of more quantities of cotton fiber all over Australia and in other parts of
the world.
27
STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
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Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
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Rural (pp. 47-68). Routledge.
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integration in operations strategies. International Journal of Operations & Production
Management, 35(2), pp.216-245.
Marchi, V.D., Maria, E.D. and Micelli, S., 2013. Environmental strategies, upgrading and
competitive advantage in global value chains. Business strategy and the environment, 22(1),
pp.62-72.
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interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.
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competition. McGraw-Hill/Irwin.
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Concepts, Methodologies, Tools, and Applications (pp. 1794-1806). IGI Global.
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product differentiation strategy. Journal of technology management & innovation, 8(2), pp.144-
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155.
Robson, W., 2015. Strategic management and information systems. Pearson Higher Ed.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.
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quality. Journal of integrative plant biology, 55(7), pp.572-575.
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31
STRATEGIC MANAGEMENT
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STRATEGIC MANAGEMENT
Stead, J.G. and Stead, W.E., 2014. Sustainable strategic management. Routledge.
Tanwar, R., 2013. Porter’s generic competitive strategies. Journal of business and management,
15(1), pp.11-17.
Teeratansirikool, L., Siengthai, S., Badir, Y. and Charoenngam, C., 2013. Competitive strategies
and firm performance: the mediating role of performance measurement. International Journal of
Productivity and Performance Management, 62(2), pp.168-184.
Vogel, R. and Güttel, W.H., 2013. The dynamic capability view in strategic management: A
bibliometric review. International Journal of Management Reviews, 15(4), pp.426-446.
websterltd.com.au. (2018). Welcome. [online] Available at: http://www.websterltd.com.au/
[Accessed 14 Sep. 2018].
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., 2017. Strategic management
and business policy. pearson.
1 out of 32
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