MGT5STR: Strategic Management Report on GrainCorp Limited Analysis

This report provides a comprehensive strategic analysis of GrainCorp Limited, an Australian agribusiness company. It begins with an overview of the company, its product lines, and revenue streams, followed by a detailed PESTEL analysis to assess the external environment, including political, economic, social, technological, environmental, and legal factors. The report then presents a SWOT analysis, identifying the company's strengths, weaknesses, opportunities, and threats. Finally, it offers strategic recommendations for the future direction of GrainCorp Limited, based on the preceding analyses. The report utilizes academic writing guidelines, including Harvard referencing, and incorporates insights from relevant journal articles and textbooks to support its findings.

Running head: Strategic Management
Strategic Management
Name of the Student
Name of the University
Author Note

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Executive Summary
The report concludes about the different marketing strategy of the company. It is based upon
GrainCorp Limited which is an agriculture-based company carrying its business in Australia
and New Zealand. It shows about the company SWOT and PESTEL Analysis also show the
recommendation which company should follow while carrying its business activities.

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Table of Contents
Introduction................................................................................................................................4
Overview of the Company.........................................................................................................4
Product line-up of the Company................................................................................................4
Revenue from Business Unit......................................................................................................5
PESTEL Analysis of Company..................................................................................................5
Political Factor.......................................................................................................................5
Economical Factor.................................................................................................................5
Social Factor...........................................................................................................................6
Technological Factor..............................................................................................................6
Environmental Factor.............................................................................................................6
Legal Factor...........................................................................................................................7
SWOT Analysis of Company.....................................................................................................7
Strength..................................................................................................................................7
Weakness................................................................................................................................8
Opportunity............................................................................................................................8
Threats....................................................................................................................................9
Recommendation......................................................................................................................10
Conclusion................................................................................................................................10
Reference and Bibliography.....................................................................................................11

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Introduction
Strategic Management help the company to make different kind of plan for the
business house. Each company makes different strategy so that it can able to get an edge in
the market and can earn more amount of revenue in the same. It help the company to achieve
its goal and objective easily and effectively (Abdel-Basset, Mohamed and Smarandache
2018). The report is based upon the company name GrainCorp Limited and its show different
aspects of the company, as it show how the company is able to manage its business operation
as well as how the company is making different strategy in the business. It contains the detail
of internal analysis of the company as well as external analysis of the same.
Overview of the Company
The assignment is based upon the company GrainCorp Limited which is Australian
Limited, it able to carry its business operation all over the Australia. The company core
business is storage and receivable grain and also some similar business commodities in the
company. The company is also having a diversification of business as it also able to carry
activities like logistic and marketing the commodities for different individuals. The company
was founded in 1917 and its having is headquarter in 175 Liverpool Street Sydney, Australia.
Product line-up of the Company
The company provide its product to different manufactures so that they can make
proper utilization of the product and able to create finished product from the same. It able to
provide an extensive range of product which include specialist fats and oil designed so that it
can meet the requirement of each manufacture as a whole (Andrei and Prisecaru 2014). The
product in which the company deals is bakery product in both Australia and New Zealand,

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Snack products, Diary fat alternative, Foodservices in New Zealand only and also
Confectionery and chocolates.
Revenue from Business Unit
As per the company annual report it able to gain its revenue from the sale of grain,
sale of malt, crushing and processing of oilseeds and supply of feeds and edible oils. It able to
get its revenue of from the customer only after it provided the required amount of goods to
the customer. The most amount of revenue which the company is earning is from the sale of
grain as it able to get most amount of its income from the same.
PESTEL Analysis of Company
This analysis helps the company to know about the external environment as it able to
show how the company is been affected and how the company is able to manage its operation
in the business. It stands for Political, Economic, Social, Technology, Environment and
Legal.
Political Factor
Each company is depending upon some political factor which can impact their
business so before making any new strategy company should know the political impact upon
the same. As the political stability so that the company can able to make proper revenue in
the business (Ginter, Duncan and Swayne 2018). It also involves risk of military invasion in
the company, it should check the legal framework in the company and also should able to
make trade and regulation in the company. It also should see the taxation policy while
making the strategies so that the company can able to know about the revenue of the
company.

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Economical Factor
This are the factor which the company should able to consider while making the
strategies in the company. It includes inflation rate, interest rate, foreign exchange rate and
saving rate as this are the factor in macro environment and competitions norms in the market
as per the micro environment (Gürel and Tat 2017). The company is able to use the growth
and inflation rate so that it can know all the changes in the Food, Tobacco and Beverage. If
the country is having a high amount of inflation than it can affect the company revenue as
because the customers will not able to have much amount of purchasing power in the same. It
should also check the exchange rates so that it can know the difference of money in each
country.
Social Factor
This are the factor which can affect the company social and culture behaviour, as the
shared belief and attitudes of society which play a great role for the marketer as it will help
them to gain an advantage in the market (Hill, Jones and Schilling 2014). Company should
able to analysis the need and preferences of the population so that it can able to fulfil all the
need easily of the consumers. The class structure and power structure of society also play an
important role in the company financial position. It also able to checks the culture value so
that the company can guide the manufacturing and production of the goods to the company.
Technological Factor
The factor shows about how the company is able to manage the need and requirement
of the technological factor in the business. The industry in which the company is working is
growing rapidly over last 5 years. As the company should able to check how the technology
is changing and how the company is able to manage with the change in the technology. It
should able to check the cost and able to apply the same in the business.

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Environmental Factor
Each company have to make proper strategies as per the environmental is concern so
that it can able to make necessary changes in the company financial statement. The company
is able to get more amount of profit in the business. Each country is able to have different
kind of law so company have to follow the same while carrying its business activities. Some
environmental factor which the company should consider as Weather, law regulating
environment pollution and climate change in the business.
Legal Factor
The company should consider all the legal factor while making different strategies in
the company. It should able to know all the related law while entering in the market and able
to adopt those in the company business practice. Some laws which the company should see
while entering or expanding its own business is Anti-trust law of food and beverage in the
industry and also overall affect in the company business, Copyright and patents law related to
different aspects of business and health and safety law in regards of business operation.
SWOT Analysis of Company
This analysis is done by the manager of GrainCorp Limited so it can know about the
situational analysis of the organization. It helps the company to know the strength, weakness,
opportunity and threat in the business enterprise.
Strength
1. Excellent Performance in the Business – The company is able to have a very good
performance in new market as it got a proper level of experience in regards of new
market which help them to gain a proper advantage as well as help them to expand the
business operation more easily and effectively in the company.

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2. Product Innovation – The company is able to maintain a proper innovation
technique which help them to get more ahead in the market and also help them to gain
more revenue than the competitors in the industry.
3. Proper Training and Learning program – The company is able to maintain a
proper flow of work by training their staff efficiently as this help the company to
provide sufficient amount of information as well as it help them to provide proper
amount of work in the company business.
4. Customer Satisfaction – Company is able to carry their activities as per the need and
preference of the customer so this help them to give a proper amount of satisfaction to
the customers. It also able to provide best quality product to consumer which help
them to gain more amount of brand value which in result give them more revenue in
the business.
Weakness
1. Less Flexibility – Company is not able to get up with all the challenges which they
face in the new market so this lead to fall off company share in small business house
as well as it led them to have less amount of capital in the business.
2. Lack of choice – Company is not able to have proper amount of product choice so
this gap can lead the competitors take the market and able to make loss to the
company revenue in the business. Consumer always want to have many options for a
product so if the company is not able to provide the same than it may lose the
customer, which is also a loss of revenue to the company.
3. Investment in New Technology – Company has to invest much more amount of its
money in the technology so that it can able to manage all the business activities.
Company is able to expand its business operation into different country so meet up
the need of expansion its should invest more amount of money in technology sector.

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4. Lack of Proper Financial Planning – Company is not able to have proper financial
plan as the company is having idle cash which could be utilised for better purpose
that can help the company to have wealth maximization in the business.
Opportunity
1. New Product in the Market – Company should able to diversify its resource in new
product so that it can help them to open new line of revenue for the company business
as well as it help them to expand the business more easily and effectively.
2. Low Inflation Rate – Company should able to have a proper amount of stability in
the business as the country is having low inflation rate, so this help the company to
have more amount of investment, as it will able to get the same in low cost compare
to other economic.
3. Changes in Taxation Policy – As the government had changed the taxation policy so
this will help the company to gain more amount of business in the market, it also able
to get more revenue as the company has to pay low amount of tax which will result
low price to the consumer. If the company is selling the product at low cost than this
can help them to get more market share in the business.
4. Diversification of Resources - The company usually has free cash flow so that
should be invested by the same in different segmentation so that it can help them to
gain proper amount of income in the company.
Threats
1. Currency Fluctuation – The company is able to work in different countries so it
income is being affected by the fluctuation that occurs in currency which also affect
the company financial position.
2. Different Laws – The company is working in different countries and each country is
having some kind of law related to a product so sometime it become very hard for the

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company to follow all the rules and regulation in different country so this can be a
threat to company financial position.
3. Less amount of Skilled Labour – The company is carrying its business activities in
different countries so it is not possible for them to get skilled labour so this directly
affect company profit as well as the relationship which company hold with the
customers.
4. Changes in the Environmental Regulation - The company have to apply all the
rules and regulation which are there in regards of company product. If there is some
kind changes in the policy than it will directly affect company financial position so
this can be consider as a threat to company as a whole.
Recommendation
The company can able to make proper changes in the company strategies so that it can
able to capture more amount of market in the business. It should able to diversify its business
unit in different segment so that the company can earn more amount of unit from the same. It
should able to train their staff in a proper manner that will help the company to get proper
brand value as well as more amount of customer in the market.
Conclusion
The report concludes about the company GrainCorp Limited which is an agriculture-
based company and carries its business in Australia and New Zealand. The report conclude
about how the company is able to manage its marketing strategies and also it able to show the
SWOT and PESTEL Analysis which help the company to know more about the internal as
well as external environment.

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Reference and Bibliography
Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic
AHP–SWOT analysis for strategic planning and decision-making. Symmetry, 10(4), p.116.
Andrei, V. and Prisecaru, I., 2014. The Use of Pestel Analysis in Development of the
Romanian Geological Repository. UPB Scientific Bulletin (Series C), 76, pp.247-254.
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R., 2018. Implanting
strategic management. Springer.
Ginter, P.M., Duncan, W.J. and Swayne, L.E., 2018. The strategic management of health
care organizations. John Wiley & Sons.
Gürel, E. and Tat, M., 2017. SWOT analysis: A theoretical review. Journal of International
Social Research, 10(51).
Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an
integrated approach. Cengage Learning.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing
function. Macmillan International Higher Education.
Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic
management research. The Blackwell handbook of entrepreneurship, pp.45-63.
Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.
LEYVA, M., HECHAVARRIA, J., BATISTA, N., ALARCON, J.A. and GOMEZ, O., 2018.
A framework for PEST analysis based on fuzzy decision maps. Revista ESPACIOS, 39(16).

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Menga, E., Dan, A., Lu, J. and Liu, X., 2015. Ranking alternative strategies by SWOT
analysis in the framework of the axiomatic fuzzy set theory and the ER approach. Journal of
Intelligent & Fuzzy Systems, 28(4), pp.1775-1784.
Mkude, C.G. and Wimmer, M.A., 2015. Studying interdependencies of e-government
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Moutinho, L. and Vargas-Sanchez, A. eds., 2018. Strategic Management in Tourism, CABI
Tourism Texts. Cabi.
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management: Gaining a competitive advantage. New York, NY: McGraw-Hill Education.
Song, J., Sun, Y. and Jin, L., 2017. PESTEL analysis of the development of the waste-to-
energy incineration industry in China. Renewable and Sustainable Energy Reviews, 80,
pp.276-289.
Suh, J., 2014. Theory and reality of integrated rice–duck farming in Asian developing
countries: A systematic review and SWOT analysis. Agricultural Systems, 125, pp.74-81.