Strategic Analysis of Costa Group Holdings Ltd - Business Strategy

This report offers a strategic analysis of Costa Group Holdings Ltd, a leading horticulture company in Australia. It begins with a background of the company, highlighting its position as a major fresh fruit supplier, its extensive farmland and facilities, and its listing on the Australian Stock Exchange. The analysis then delves into the company's strategic management policies since 2011, focusing on growth through mergers, acquisitions, and expansion into new product categories and international markets. Key value drivers are identified as efficient management and customer satisfaction. The report concludes by examining the risks Costa faces, including market fluctuations, natural disasters, competition, and strategic alliance challenges, along with the preventive measures the company employs to mitigate these risks, such as improved decision-making, planning, and proper fund allocation.

Running head: STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Strategic Analysis of Costa Group Holdings Ltd
Name of the Student
Name of the University
Author’s note

1STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Executive summary
The aim of the report is to analyse the background of costa, which is one of the leading
horticulture company in Australia. The report contains the brief details of the background of
the company. In the second part, it includes the strategic management of the company. The
last part of the report contains the risk that are associated with the organisation and the
measures that are adopted by the company to mitigate such risk.

2STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Background of the company......................................................................................................3
Company’s strategy and past performance................................................................................3
Company’s risk and preventive measures for mitigating risk....................................................4
Conclusion..................................................................................................................................6

3STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Introduction
The costa is Australia’s leading fruit and vegetables grower, packer and marketer. The
company is expanding in the current financial year and showing potential growth in the
coming future. The company is expanding on a rapid pace and become one of the most
popular company in Australia. The products of the company is able to capture the market and
also market demand of the products of the company is increasing every day.
Discussion
Background of the company.
Costa is the leading horticulture company in Australia and is the biggest fresh fruit
supplier to the Australian food supplier. Costa has about 4000 planted hectares of farmland
and 30 glasshouse facilities where all the fruits and other perishable items can be stored.
Beside that company, also have seven mushroom growing facilities in Australia, 6 blueberry
farms in morocco and 3 berry farms in china. The company has gone through several changes
since its inception 120 years ago. Apart from the horticulture, it also earned reputation in the
business of farming packing and marketing and distribution of fruits and other vegetables.
In 2015, the company was listed in the Australian stock exchange and the company’s
share is giving good return to its shareholders. Recently the company is taking many strategic
transformation initiatives that to increase its scale and expand the growth of the organisation
(Hsu Wright and Zhu 2017).
Company’s strategy and past performance
Since 2011 costa is trying to make some strategic management policies that focus on
increasing the growth of the company. The company goes in the strategy of merger and
acquisition which enables the company to expand out of the country and to produce more
varieties of product. The expansion initiatives includes the development of the berry and

4STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
sweet snacking tomato categories. The company has recently acquired Adelaide mushrooms,
which is a leading mushroom producer in South Australia. The company also take long term
lease of ex-timber orchards in 2011, which indicates that the company is taking initiatives to
expand the scope of its operations. Beside that, company is also making foreign mergers with
African blue JV in morocco in 2007 and they signed a memorandum of understanding with
Driscoll’s for forming a joint venture in china (Brueller Carmeli and Markman 2018).
The company’s efficient management system is the main value driver of its past
performance. The company is founded in the year 1888. Since then the company has always
performed well and shown positive attitude while doing business. The company’s
management has always give emphasis on the customer satisfaction, which help the company
to sustain in the market and generate cash inflow in the future. The vision of the company is
to provide fresh and hygienic fruits that can improve the health of the consumer. The main
reason of the growth of the company in the past (Dingus, et al 2016).
Company’s risk and preventive measures for mitigating risk
The risks that costa face comes from the following business factors these are stated below:
 Market fluctuation
 Fluctuation in foreign exchange and interest rates
 Natural disaster
 Competition
 Management strategy
 Business activities
 Strategic alliance and corporate acquisition
 Financing

5STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
The major threat that the company face is from the natural disaster, the company is
engaged in the production of fruits and vegetables that are dependent on the weather
condition. The production of fruits and vegetables can be affected due to bad weather
condition this has become a major risk factor for the company (Yigitcanlar et al 2017).
The company is making large merger and acquisition with international companies
that lead to the rise of various risk factor. The company is facing political as well as
economic pressure from the other countries which hampers the operation of the company.
The company also face risk of uncertainty from the happening of any event in that foreign
country (Franklin et al 2017).
Market fluctuation
The company is listed in the stock market so its operation will be affected due to the
market fluctuation and the movement of the share price of the company.
Strategic alliance
The company is making strategic alliance with other companies that raise risk of
conflict among the member of the other companies (Zhang et al 2015).
These are the risk factors that the company face while conducting the business
activities. The company also taken adequate steps to mitigate the risk factors. The major risk
mitigation process are stated below:
Identifying the risk that is related with the business.
The company has taken measures by improving the decision making and planning.
Allocate funds properly and that will help to protect the company if any adverse event occurs.

6STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Conclusion
From the above discussion, it can be concluded that the costa group limited is a
leading company in Australia. The company for its long-term presence in the market has been
able to make large customer base which enables them to grow further in the market and
expand more.

7STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD
Reference
Brueller, N.N., Carmeli, A. and Markman, G.D., 2018. Linking merger and acquisition
strategies to postmerger integration: a configurational perspective of human resource
management. Journal of Management, 44(5), pp.1793-1818.
Dingus, T.A., Guo, F., Lee, S., Antin, J.F., Perez, M., Buchanan-King, M. and Hankey, J.,
2016. Driver crash risk factors and prevalence evaluation using naturalistic driving
data. Proceedings of the National Academy of Sciences, 113(10), pp.2636-2641.
Franklin, J.C., Ribeiro, J.D., Fox, K.R., Bentley, K.H., Kleiman, E.M., Huang, X.,
Musacchio, K.M., Jaroszewski, A.C., Chang, B.P. and Nock, M.K., 2017. Risk factors for
suicidal thoughts and behaviors: a meta-analysis of 50 years of research. Psychological
Bulletin, 143(2), p.187.
Hsu, K.C., Wright, M. and Zhu, Z., 2017. What motivates merger and acquisition activities in
the upstream oil & gas sectors in the US?. Energy economics, 65, pp.240-250.
Yigitcanlar, T., Sabatini-Marques, J., da-Costa, E.M., Kamruzzaman, M. and Ioppolo, G.,
2017. Stimulating technological innovation through incentives: Perceptions of Australian and
Brazilian firms. Technological Forecasting and Social Change.
Zhang, J., Ahammad, M.F., Tarba, S., Cooper, C.L., Glaister, K.W. and Wang, J., 2015. The
effect of leadership style on talent retention during merger and acquisition integration:
Evidence from China. The International Journal of Human Resource Management, 26(7),
pp.1021-1050.

8STRATEGIC ANALYSIS OF COSTA GROUP HOLDINGS LTD