GoFarmers: Business and Management Development Report Analysis

This report analyzes GoFarmers, a UK-based agriculture company, examining the external factors influencing its business operations. The report utilizes PESTLE analysis to evaluate the political, economic, social, technological, legal, and environmental factors affecting the company's performance. It explores the impact of government policies, economic conditions, social trends, technological advancements, legal regulations, and environmental concerns on GoFarmers. Furthermore, the report delves into the technological changes within the UK agriculture sector, assessing their relevance and influence on organizational policies. It evaluates the effectiveness of organizational responses to these changes and identifies areas for improvement. The report also includes a Porter's Five Forces analysis to assess the competitive landscape of the agriculture industry, considering factors such as the bargaining power of buyers and suppliers, the threat of substitutes and new entrants, and industry rivalry. Overall, the report provides a comprehensive overview of GoFarmers' business environment and offers insights into strategic considerations for success.

Contemporary Development in Business and Management

Executive Summary
Agriculture sector of UK is growing with the very high pace and thereby makes
contribution in development of respective country. This report is based on GoFarmers which
offers livestock, animal feed, farm land etc to customers. Besides this, it can be summarized
from the report that policies which are formulated by government in relation to keeping livestock
have major impact on the selling of livestock’s. Further, it can be presented that company needs
to keep in mind economic and social factors for making high suitable policies. It also has been
articulated that for attaining competitive edge over others company needs to employ all the
technological advancements. Besides this, it can be stated that by producing effectual and high
quality animal feed product GoFarmers can realize its objectives.

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
Overview of the primary external factors that have influence agriculture business....................3
TASK 2............................................................................................................................................7
Technological changes.................................................................................................................7
Analyzing the relevance of technological change and its influence on organizational policies..7
2. Critically evaluating the effectiveness of organizational response.........................................9
3. Assessing the areas for improvements...................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13
APPENDIX....................................................................................................................................15

INTRODUCTION
In the present era, each and every sector is filled with high level of development which
in turn helps them in executing business plan more effectively and efficiently. Besides this,
effectual management of business operations are also highly required in line with the changes
that take place in external environment. Moreover, companies can gain competitive edge over
others only when they take decisions by evaluating the aspects of political, economic, social and
other factors. The present report is based on Gofarmer which is one of the leading agriculture
companies of UK. It offers livestock, farm machinery, animal feed, farm land etc. through the
means of online. In this, report will provide deeper insight about the aspects of external business
environment and situation. Further, report will shed light on the extent to which external
situation will prove to be positive and negative for business organization. In addition to this,
report will provide deeper insight about the technological advancements take place in the
agriculture sector of UK.
TASK 1
Overview of the primary external factors that have influence agriculture business
In order to get information about external business situation Gofarmer has taken decision
to conduct PESTLE analysis. It is the most effectual tools which in turn help in getting
information about external business environment. Political, economic, social, technological, legal
and environmental are the main factors which are out of the control of business unit. Further, all
such factors have high level of impact on the growth and functioning of business unit. In addition
to this, external factors are highly differing from one country to another (Dev, 2013). Thus, it is
highly required for business organization to develop competent and strategic policy framework
after making evaluation of all such aspects. Hence, PESTLE analysis model helps company in
reducing the impact of undesirable situation to a great extent.
PESTLE analysis
 Political factors: Government rules and regulations have high level of impact on the
growth and functioning aspect of business unit. Gofarmer provides customers with

livestock, farm machinery and land. In this, tax rates which are levied by government
have high level of impact on the profitability aspect of firm. Moreover, capital gain tax
rate is the main factors that closely influences margin. In addition to this, now UK
government is offering financial support to the business entities of agriculture sector at
concessional or lower interest rates. Thus, by considering such aspect it can be said that
political conditions are highly favorable for the agriculture sector of UK.
On the basis of this aspect, by taking monetary assistance from government farmers can
execute their innovative farming practices more effectually. In addition to this, government
policies in relation to keeping livestock also have major impact on the selling of livestock’s.
For instance: If UK government gives their decision in the support of offering beefs and
muttons. Under such condition, farmers place more emphasis on selling their animals. This in
turn closely influences from the selling activity of Gofarmers. In this way, political factors
have major impact on the sales revenue and thereby gross margin of firm.
 Economic factors: Inflation and deflation are the two major economic conditions that
closely influence the purchasing power of customers and thereby growth of firm. The
rationale behind this, when economic conditions are stable then people have more
disposable income for spending on luxurious products and services (Graedel and et.al.,
2012). On the other side, during deflationary situation individuals do not have high level
of income to spend money on products which are the part of their living standards. Along
with this, trend of real estate sector also entices decision making aspect of farmers.
Moreover, whe
 Social factors: Income and lifestyle of people are the major social factors that have high
level of impact of the functioning of GoFarmers. Moreover, people spend more money on
fashion and other retail products when disposable income of household is high. In this,
demand in relation to livestock and their by products are increased significantly
(Gutmann, Cantill and Kappe, 2015). Thus, GoFarmers needs to consider all such aspects
while framing business strategies.
 Technological factors: In the agriculture sector of UK, revolutionized growth has taken
place in the technical factor. Now, with the motive to do framing practices in the best
possible way companies employ latest and innovative technological aspects. Barrix ago

sciences, Mitra, crop in technology solution, ekamet, digital green, frontal rain
technologies are the main innovations that has taken place in UK agriculture sector.
Hence, now there are several companies which are involved in offering high-tech
equipments to agriculture sector. Hence, it is highly required for GoFarmers to comply
with the technological aspects.
 Legal factors: Laws and legislation which are introduced by UK government has great
impact on the activities and operations of Gofarmers. Hence, according to laws
companies are to sell their livestock at fair prices. With the aim to reduce the level of
farmer exploitation fair price policy has been introduced by UK government. In this
regard, company will be penalized if they charge higher prices from customers as
compared to average (Gutowski and et.al., 2013). Moreover, GoFarmers offer platform to
the framers to sell and purchase their livestock such as goat, ship, cow etc. Along with
this, now companies who offer retail food products to customers also have accountability
to display all the information on packaging regarding nutrition’s, fiber, calorie etc.
GoFarmers offers animal feed product to the customers. In this, it is highly required for
farmers to comply with all the nutritional aspects and framework. Along with this,
manufacturers are also required to deal with all the laws which are related to laws of
advertisement. Along with this, GoFramer is also required to follow minimum wage and
hours Act while formulating the strategic and policy framework. Hence, failure of
business organization in relation to such aspects may result into the loss of brand image
and market share. Environmental factors: It is one of the main factors that have high level of impact on
agriculture practices to the large extent. Moreover, environment is highly from the
production practices which are used by farmers. The rationale behind this, indirect
relationship takes place between the emissions to the environment and farming practices.
Rain is the main elements of an environment that affects farming sector to the large
extent (Singh, 2013). Along with this, climate changes, deforestation, genetic
engineering, irrigation problems, pollution, wastage etc. are the main aspects that have
high level of impact on agriculture industry. Global farming is the major situation that
has significant influence on farming sector. Along with this, with the rise in industrial
development pollution related activities or problems are increased with the very high

pace. Thus, all such aspects have direct impact on raining which in turn impacts the
production related activities of farming sector (Sustainable agriculture system, 2017).
Along with this, deforestation is another major cause of changes that take place in climate
of respective country.
In UK, 5% deforestation takes place due to cattle ranching, whereas 19% also had taken
place due to over-heavy logging. Hence, due to deforestation climatic conditions of UK are
affecting in the negative direction. Thus, deforestation is the main causes that directly
influence the growth and production related activities of agriculture industry. Along with
this, due to the happening of undesirable activities quality of soil is affected negatively
(Trappler, 2013). Hence, all such aspects will highly impact the business activities and
operations of GoFarmers. Moreover, interest level of framers in relation to making
investment in land increases when environmental conditions are highly supportive and
favorable. Moreover, in unfavorable conditions it is not possible for the farmers gain enough
amount of profit by doing farming practices.
Porter five forces
 Bargaining power of buyer: In such sector, bargaining power of buyers is moderate.
Moreover, to meet the need of end customers in relation to beef, woolen etc. business
customers do not have high bargaining power.
 Bargaining power of supplier: Under agriculture sector, bargaining power of suppliers is
high. Moreover, selling price at which livestock is offered by GoFarmers highly
influenced from supplier’s trend (Zhou and Pindiriri, 2015). Thus, by considering such
aspect it can be said that bargaining power of suppliers are highly strong.

 Threat of substitutes: This aspect of competition plays a major role in business growth
and development. Competitive business units for go farming are low however the product
and service variation is low for the product categories (Porter five forces analysis of
Agriculture industry, 2016). Moreover major retail units such as Tesco, M&S etc. creates
a significant market competition for the business which affect the growth and demand for
the firm. In addition the quality and service aspect is to be effectively evaluated for the
given sector. Hence it can be said that threat of substitute product for agriculture sector is
high as the product differentiation is significantly low.
 Threats of new entrants: The agriculture industry is the one where the production of
goods and services is affected by natural environment and aspects. Ma nagging livestock
and animals is a challenging aspect for the industry. Go farming has created a significant
brand identity for the same. However the threat of new entry is moderate as investment in
terms of funds and resources is significantly high. Moreover the brand identity creates
demand in the market which helps the business in generating effective results.
 Industry rivalry: This aspect is one of the major component of competitive analysis. The
business development and growth aspect is evaluated as the business is able to create an
effective demand in the economy. Presence of different organizations, companies
operating in the industry and types of consumers play a significant role for the same.
Agriculture industry majorly focuses on business segment which focuses on enhancing
sales and growth in the economy (Clapp, 2015). This has created an effective rivalry in
the market. The growing food industry has developed high and significant market
competition for the stated business unit which affects the growth and development of the
industry.
TASK 2
Technological changes
Analyzing the relevance of technological change and its influence on organizational policies
Technological changes are highly significant which offers opportunity to the business
organization to make advancements in their business operations and functions. In the recent
times, technological advancements have placed positive impact on economy of country.

Moreover, technological advancements often lead better output and thereby make contribution in
the attainment of organizational goals and objectives. Moreover, cost reduction and
maximization of profitability aspect is one of the main objectives of business organization. In
this, by making use of highly technical equipments company can perform its business activities
and operations with high level of efficiency (Collier and Dercon, 2014). Hence, technological
advancements in relation to size, modernization etc. have greater and positive impact on the
profitability aspect of firm. Moreover, several unique technologies have been introduced by
various analysts which in turn provides assistance to GoFarmers in performing the activities
more effectively and efficiently. Hence, company is required to assess and make use of latest
technological aspect and thereby fulfills organizational aims and objectives.
There are several changes have taken place in the technological aspects which in turn
places positive impact of the growth and profit margin of firm. Livestock breeding techniques
are the main aspects which have placed positive impact on yield or revenue which are related to
such products. Hence, now demand for livestock’s product is increased with the very high pace.
Moreover, there are several by products which are highly associated with livestock such as milk
and related things, woolen, fabricants for fashion apparel etc. Moreover, now customers prefer to
purchase unique or designer apparels (Dandage, Badia-Melis and Ruiz-García, 2017). Besides
this, taste and preferences of the customers are also getting changed more frequently. On the
basis of this aspect, needs or demand in relation to livestock’s are increased with the very high
pace. In addition to this, now customers taste and demand also shifted from tastier to healthy
food. Thus, usage of milk related products such as butter, cheese etc also increased with
significant rate in comparison to the previous years.
Hence, for fulfilling such needs and requirements companies of agriculture sector
including GoFarmers has employed the techniques of breed-substitution, cross-breeding and
within breed selection. Hence, by employing all such techniques company has met the demand
and supply of live stocks product to the significant level. Along with this, fish capture
technology has also been changed in the recent times in comparison to the past years. Now,
fisheries made use of fiber technology which is manufactured from modern materials. For
instance: Changes have been made in the design and size of fishing nets which in turn helps
business entities of agriculture sector in performing the activities more effectively and efficiently

(Holt-Giménez and Altieri, 2013). In addition to this, gear handling mechanism has also been
expanded to the significant level. Further, now there are several computer aid-designs and
electronic equipments are available which in turn assists in detecting the location of fish. Hence,
by making use of such equipment company can reduce the unit cost of harvesting and thereby
would become able to enhance profit margin. Thus, now usage of such equipments within such
industry is increased more frequently.
Along with this, now each people having smart phone and they prefer to purchase
products and services through the means of online. Along with this, usage rate of people
regarding online services are increased with higher rate. The rationale behind this, it offers high
level of convenience to the customers and thereby save their time to the great extent. Further,
educational level of people is also increased significantly as compared to recent past. Hence, by
considering all such aspects GoFarmers decided to offer livestock’s, farm machinery and land
through the means of online store. There are several benefits which online store offers to both
business organization and its customers.
Moreover, online mode is the most effectual system which in turn offers opportunity to
business organization to provide information to large number of people about products which are
offered by it. Further, with the motive to enhance both productivity and profitability company
places high level of emphasis on providing quick information to customers about technological
advancements. In this way, online channel helps in raising customer base and thereby profit
margin (Lawrence, Lyons and Wallington, 2013). Further, now companies which are engaged in
agricultural activities prefer to employ latest technologies to enhance production efficiency.
Hence, GoFarmers needs to place emphasis on making improvement is online policies and
framework. By this, company can enhance its profit margin and customer base significantly.
Further, high level of development has also taken place in the refrigeration and fish
processing equipment. Now, each and every business organization from small to large adopts
such technique with the aim to fulfill the needs of customers. Hence, for gaining competitive
edge over rival firm GoFarmers needs to undertake such technique. In this, all such aspects have
high level of impact on the decision-making aspect of customers (Miah and Sadhukhan, 2015).
Moreover, company is required to build highly competent and strategic policy framework

regarding the employment of latest technological aspects. This in turn enables firm to attain
success over the rival firms.
2. Critically evaluating the effectiveness of organizational response
To give high level of response towards change several measures have been undertaken
by GoFarmers. Hence, company has taken decision in relation to the employment of quality
control measures and standards. In this regard, by maintaining the quality of animal feed
products business organization can get the desired level of outcome or success. Further, by
making continuous monitoring of expenses level company can also make optimum use of
finance. Along with this, for the effectual implementation of strategic and policy framework
budget has been prepared or developed by firm. This in turn helps in making co-ordination in
varied business activities. However, on the critical note, it can be said that if business unit fails to
make proper estimation of expense level then it may result into unrealistic framework. Besides
this, inappropriate budgeting framework also places negative impact on the motivational aspect
of personnel. In addition to this, with the aim to offer high quality animal feed product to
customer’s business unit has conducted research activity. In this, by assessing or evaluating each
possible alternative company can provide customers with high quality animal feed products and
thereby raise their satisfaction level.
3. Assessing the areas for improvements
For gaining competitive position over other GoFarmers requires making improvement in
the quality of animal feed products. Moreover, by products such as milk, better etc. which are
made from the input of sick animal may result into unhealthy people. Hence, this aspect clearly
shows that animal sickness has level of impact on human health. In this regard, by making
improvement in the hygiene aspect, sustained surveillance and quarantining new arrivals on farm
business unit can overcome the above mentioned issue (Gutmann, Cantillo and Kappe, 2015). In
addition to this, company needs to lay emphasis on using quality control techniques regarding
the animal feed products. In this regard, by developing cause and effect diagram business unit
can get information about the quality level. Thus, by making proper maintenance of quality
GoFarmers can attract large number of customers who have livestock. Quality control techniques
also lead reduction in the cost and price level.

Further, poor welfare of livestock may cause of diseases among several young animals.
Hence, this is one of the reasons due to which livestock or many animals die in their young age.
To cope up with this situation business unit requires providing training and development to their
personnel in relation to animal husbandry (Graedel and et.al., 2012). By doing this, company can
make improvement in the survival of animals and thereby would become able to enhance
productivity level. Along with this, by testing the quality of animal feed product or each
ingredient GoFarmer can attract large number of business customers and thereby enhance sales
level. This in turn also helps company in building effectual image in the mind of customers.
Further, according to European Union law farmers are accountable for human health. On
the basis of this aspect, farmers need to follow food and safety aspects which are highly related
to slaughtering of animals. In this regard, it is the responsibility of GoFarmers to provide
customers with high quality animal feed product. Through this, company can make significant
improvement in the sales revenue. The reason behind this, out of seven 1 individual is facing
issue in relation to undernourishment (Dev, 2013). Thus, company can build its effective image
by making contribution in efficient food production. Along with this, business unit needs to
make on promotional aspects. Hence, by placing advertisements on newspaper, television and
agricultural sites company can develop awareness among the large number of people. By doing
this, company can enhance its sales and gross margin.
Besides this, from investigation it has been assessed animals feed more human foods
which is one of the major issues now a days. From investigation, it has been assessed that around
70% grains are fed to animals which are produced by developed countries. Hence, livestock
consumes one-third of cereal grains which in closely affects human lives. Thus, by capitalizing
such opportunity company can achieve success in the dynamic and competitive business
environment (Fish Capture technology, 2017). In this, GoFarmers need to place emphasis on
assessing alternative animal feed products. By this, usage level of grain cereals can be reduced
by firm to a large extent. Thus, it is advised to GoFarmers to invest money in R&D activity.
Moreover, research activity enables firm to find innovative and cost effectual ways of
manufacturing animal feed products. Thus, by placing high level of emphasis on such aspect
GoFarmer can attain competitive position at marketplace.

Along with this, increasing cost level is another major issue that are facing by GoFarmer.
Such issue closely influences the financial position and performance of firm in a negative
manner. Thus, business unit is required to make focus on the employment of budgetary control
techniques. On the basis of this aspect, by making continuous monitoring of financial aspects
company can exert control on unnecessary spending and thereby make optimum utilization of
finance. Moreover, by making comparison of actual performance in against to the budgeted
figures company can find out deviations that takes place in monetary aspects (Agri-tech strategy,
2017). In this, by taking corrective measure or action within the suitable time frame company
can ensure optimum utilization of financial resources. In addition to this, it is recommended to
GoFarmer to assess and undertake latest technological aspects for offering and delivering
services to the customers. This in turn helps in raising the efficiency level of production and
other aspects in an effectual way. Thus, by taking into account all such measures GoFarmers can
ensure significant improvement in its financial and non-financial performance.
CONCLUSION
From the above report, it has been concluded that external business environmental factors
will not place negative impact on the growth and performance of GoFarmers. Besides this, it can
be revealed from the report that political conditions are highly favorable which in turn helps
company in achieving success in the highly strategic business environment. Further, it has been
articulated that climatic conditions have major impact on farming practices or activities of
GoFarmers to the significant level. It can be seen in the report the bargaining power are not
relatively high as compared to suppliers. Along with this, it can be inferred that technical
changes and improvements which take place in agricultural sector helps in enhancing both
productivity and profitability. It can be seen in the report that by introducing high quality animal
feed products company can improve both productivity and sales revenue.

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APPENDIX
Company profile
Industry profile