Strategic Management Report: Evaluating GrainCorp's Business Strategy

This report provides a strategic management analysis of GrainCorp, an Australian agribusiness company. It begins with an executive summary and table of contents, followed by an overview of GrainCorp, including its business units, products, and services. The report then analyzes the external environment using PESTEL analysis, examining political, economic, social, technological, legal, and environmental factors. The internal environment is assessed using the VRIO framework to evaluate resources and capabilities. The report identifies GrainCorp's competitive advantages. Finally, the report concludes with recommendations for improving GrainCorp's strategic position and future growth prospects. The report emphasizes the importance of understanding both internal strengths and external opportunities and threats to enhance business performance. It covers a range of topics from internal resource capabilities to external environmental factors impacting the company's strategic position and future growth.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has helped in proper identifying the internal as well as external environment of
GrainCorp Company which is considered to be the GrainCorp Business in Australian
Economy. From the external analysis, it can be identified that there are different political
instabilities which affects the growth of the firm, on the other hand, there has been different
kinds of possibilities for gaining competitiveness in the market through the proper and
appropriate usage of the raw materials which will be successful application for the growth of
the company. Lastly, there are different recommendations which have been provided which
has been successful for improving the growth prospects of the respective company.

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Table of Contents
Introduction................................................................................................................................3
Overview of GrainCorp Company.............................................................................................3
Business Related Units of GrainCorp....................................................................................3
Analysis of Products and Services.........................................................................................4
Units of Business Revenue and Discussion on the Importance of the Largest Units of
Revenue..................................................................................................................................4
Analysis of External Environment of GrainCorp Organization.................................................5
Analysis of Internal Environment of GrainCorp Organization..................................................8
Recommendations....................................................................................................................10
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The report assists in analyzing business-related units of the food sector in
Agribusiness incorporated their business in Australian economy. The organization which has
been selected is GrainCorp that has been incorporated in Australia. The aim and purpose of
the report is to examine and identify internal and external environmental related aspects
which will be suitable for analyzing the strengths and weaknesses of the company both inside
along with outside the business environment. Lastly, there should be proper
recommendations that needs to be incorporated that will be suitable for making the business
operations efficient and enhance the growth of the company suitably.
Overview of GrainCorp Company
GrainCorp is the Australian Companies that is considered to be the public listed
company and is listed in Australian Securities Exchange. The company was incorporated in
the year 1917 wherein business-related activities includes receival and storage of the grains
and other commodities which are related to it (Graincorp.com.au. 2019). It falls under the
agricultural business and it is headquartered at Sydney, Australia wherein operations included
in it are production of oil, grain along with malts. In addition, in the month of November
2009, the company has been successful in expanding their business operations in Europe and
Not=rth America.
Business Related Components of GrainCorp
The business-related components of GrainCorp include manufacture of numerous
types of grains, malts or oil in different portions of Australia. In the particular manner, the
respective organization has been successful in become competitive in contrast to companies
which are competitors. GrainCorp is considered to be the best and performance driven

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companies and suppliers of malts through extending the different operations Australia,
Europe and USA (Graincorp.com.au. 2019).
Analysis of Products and Services
There is inclusion of the various products which are sold and produced by GrainCorp
for attracting a greater number of customers. The product range includes malt, grains and oil
that are being distributed properly by them to the customers through the assistance of
logistics (Graincorp.com.au. 2019). The entire team of GrainCorp helps in striving for the
continuous improvement of the different ranges of services for ensuring the expectations of
the customers and exceeded in different times which will be suitable for the growth-related
prospects of the company.
Moreover, in the current scenario, the company sell and offer the different customers
with the extensive range of specialist oils and fat which are being designed for meeting the
different applications of the different manufacturers of food, caterers or the bakers
(Graincorp.com.au. 2019). The different products and services are available throughout
Australia, New Zealand along with Asia in the different intermediate bulk type of containers
along with in bulk quantity.
Business Revenue Units and Importance
The major units of the business revenue include the different types of malts and grains
which helps in sustaining the different needs of the customers. In addition, extraction of oil is
the other aspect which is sold by them in different markets and they have been successful in
making the respective products specialized in the market. They are exporting the malts and
oil in various parts in entire world (Graincorp.com.au. 2019).
Through incorporation of the business revenue units such as oil and malts in different
countries which have played a vital role in generating profitability. GrainCorp is one of the

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main companies which is successful in selling malts and it is the largest producer in the world
that has assisted the company in gaining competitiveness in the world appropriately.
Analysis of External Environment of GrainCorp Organization
The PESTEL Analysis is the most suitable aspect which has been helpful in
understanding the different kinds of macro-environmental factors which can play a major role
in understanding impact of same on the company negatively or positively. PESTEL Analysis
is the strategic development tool which can be used by GrainCorp in understanding their
strategic position in the market and it will be beneficial for them in understanding the threats
which needs to be reduced by them for improving their position in the market.
Political Aspects- In the economy and market of Australia, there is high level of
political instability which can affect the growth of GrainCorp negatively. The governmental
pressure can generate a enormous influence on the growth of the business and due to the
same, it can be detrimental (Wolf and Floyd 2017). There are different kinds of aspects which
needs to be analyzed by GrainCorp for improving the position which are as follows:
 The corruption level needs to be identified and checked by GrainCorp in Australian
economy as it can create huge pressure on growth of the company (Wamba et al.
2017)
 There are different kinds of regulations related to trade which are strict in the
agricultural sector which will be creating undesirable impression on the business
 The different regulations related to pricing is the other aspect which needs to be
analyzed as it will be suitable for them in attracting a large group of customers.
Economic Aspects- It is the aspect wherein GrainCorp tried to identify the different
kinds of interventions of government which can be adopted by the organization for becoming

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more competitive in nature. There are different aspects which needs to be followed by
GrainCorp are described as follows:
 The government related interference is major element that has been strict and created
huge negative impact on GrainCorp (Teece 2018)
 There is huge level of variations in the rate of exchange as well as the market
instability along with instability in market that affects the processes of GrainCorp
Business negatively
 There is moderate effect in the rate of inflation which will be create positive impact
on the organization and it will be suitable for the expanding the business-related
activities in the market of Australia and in other countries successfully (Teece, Peteraf
and Leih 2016).
Social Aspects- It is the aspect wherein the different demographics of the Australian
economy has been considered which creates huge influence on the business related growth
negatively. In case of GrainCorp, the level of skills of the different individuals is high that is
suitable for the effective growth of company in Australia and the educational structure is the
other strong aspect that created huge impact on the business and there are few other aspects
which needs to be considered for growth and expansion in the other countries.
 The education and talent level of the population of Australia is high and strong which
created huge positive impact on growth of GrainCorp in the respective country and it
will be suitable for the future growth (Pisano 2017)
 The different kinds of social conventions in the Australian economy is high which is
successful in creating different growth-related opportunities for GrainCorp positively
(Noe et al. 2017)

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Technological Aspects- The proper advancements in the technological aspects has
major role in the business of agriculture in Australian economy. There is effectiveness in the
technological aspects offered to different customers as it will be enhancing the growth of the
firm. In case of GrainCorp, diffusion rate can be beneficial in managing growth of the
company suitably.
 GrainCorp needs to offer the different products which are technologically advanced as
it will be suitable for impacting the value chain activities in a successful manner
(Morschett, Schramm-Klein and Zentes 2015)
 There can be analysis of the other competitors which can be providing the different
viewpoints on their take in achieving the organizational success which will be suitable
for improvising the operations successfully and meeting the demands of the
customers.
Legal Aspects- It is the major factor which needs to be considered by GrainCorp
wherein there are different health and safety laws as it is the agribusiness and there should be
proper following of such rules. The different elements which needs to be considered by
GrainCorp are as follows:
 It helps in expecting to follow the different patents and copyrights which needs to be
maintained by the company which will be enhancing their growth prospects (McLean
2019)
 There should be proper inclusion of the discernment law which can be effective in
improving the processes successfully (Lasserre 2017)
Environmental Aspects- It is most indispensable aspect that includes different rules
and regulations related to environment which needs to be managed by the company for
understanding them and following them effectively.

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 The company needs to identify the different rules or policies regarding the regulations
of water in the agricultural sector (Huq, Chowdhury and Klassen 2016)
 There should be proper evaluation of the different environmental factors and laws
which will be suitable in regulating the different environmental pollution suitably
Analysis of Internal Environment
The VRIO framework is the suitable approach which should be suitable for
understanding the different competencies that proves to be suitable for growth of the
company. With the assistance of VRIO and Resource-Based aspect, it will be appropriate for
bringing in the proper consistency in competitive market.
Resources- There is inclusion of various tangible along with intangible products and
services applied by GrainCorp which includes the raw materials, machinery and workers who
are highly skilled as the main objective of GrainCorp is to deliver different customers with
various services and products in specified time limit (Helfat and Peteraf 2015).
Capabilities- There are different types of capabilities that can be utilized by
GrainCorp includes the proper selling of the oil, malts, grains and the different quality crops
in Australian economy along with in different other countries suitably (Ginter, Duncan and
Swayne 2018). The proper logistics along with management related to supply chain are the
most effective aspects which assists them in making competitive.
Competitive Advantage- The proper co-creation of the products and services sold by
GrainCorp have assisted them in improving their effectiveness and it helps in making the
operations more appropriate (Cassidy 2016).
VRIO of GrainCorp Corporation
Resource or Value Rarity Costly in Exploited Value

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Capability nature to
be Imitated
Creation
The different
staffs working
at GrainCorp
are trained
and dedicated
Yes Yes Yes Yes Continued
kind of
competitive
advantage
The various
raw materials
that are
utilised by
GrainCorp
are of
premium
quality
Yes Yes Yes Yes Continued
competitive
advantage
The different
employees
who are
employed are
technologically
advanced and
they have
knowledge in
bringing the
Yes Yes No Yes Continued
competitive
advantage

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most
competitive
aspect
Strong
Reputation of
Organization
Yes No Yes No Competitive
kind of
Uniformity
The company
has the
specific ability
to become
competitive in
nature
Yes No No No Competitive
kind of
Uniformity
The
distribution
related
network is
effective and
appropriate
Yes Yes Yes Yes Continued
competitive
advantage
There is
proper
customization
of various
products as
well as
Yes No No Yes Competitive
Uniformity

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services which
are sold by
GrainCorp
Recommendations
Therefore, from the analysis of the external along with internal environmental kind of
analysis, it can be identified that there should be proper recommendations which needs to be
applied by GrainCorp for becoming effective in delivering the appropriate solutions to
customers.
 The proper expansion of the different products as well as market technique can be
implemented by the respective company for becoming more competitive (Bryson
2018)
 The different loyal customers of GrainCorp Company will be able to be properly
retained that is suitable for increasing share in market which will be helpful in gaining
popularity
 The main and most important focus is analyzing the strengths of company such as
production of malts and oils through the proper utilization of raw materials will be
leaving the different competitors present in the market (Braganza et al. 2017)
 The different loyal customers need to be retained and, in such scenario, proper
technological advancements can be helpful for growth of firm
Conclusion
Therefore, from the above, it can be inferred that there are different external
opportunities and threats such as political instability or the technological advancements
which needs to be analyzed by GrainCorp for improving their status in the competitive