MGT5STR: Strategic Management & Future Direction of HUON Aquaculture

This report provides a comprehensive strategic analysis of HUON Aquaculture, an Australian aquaculture-focused agribusiness. It identifies the company's business units, product lines, and revenue streams, highlighting the significance of its largest revenue unit. The report analyzes HUON Aquaculture's business-level strategy, focusing on cost leadership, and presents a model of its competitive reality using Porter's Five Forces. Furthermore, it outlines an implementation plan and evaluation strategy for future growth, including recommendations for the company's strategic direction, emphasizing product diversification and enhanced online presence. The analysis concludes that implementing generic strategies will enhance sales volume and customer loyalty for HUON Aquaculture.

Running head: BUSINESS MANAGEMENT
BUSINESS MANAGEMENT
Name of the student
Name of the university
Author note

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Executive summary
The report aimed at developing a suitable understanding of the different strategic management
activities that might be considered by HUON Aquaculture with the objective of improving the
market position of the same. The report analyzed the current situation of the venture and the
nature of competition that is being encountered by the same. The report also enumerated an
implementation plan and an evaluation strategy for measuring the amount of growth. Therefore,
the purpose of undertaking the research is to develop an appropriate cognition of the different
strategic elements that might be followed by HUON with the objective of enhancing the business
position in the markets.

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Table of Contents
Background of HUON Aquaculture................................................................................................3
Business level strategies of the organization...................................................................................4
Model of competitive reality...........................................................................................................5
Implementation plan........................................................................................................................7
Evaluation strategy........................................................................................................................12
Recommendations for the future strategic direction......................................................................12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14

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Background of HUON Aquaculture
The concerned organization, Huon Aquaculture, is a large food processing and
aquaculture enterprise, which is located in Tasmania of Australia. The concerned organization
was founded in the year 1986 and has expanded the operations based on the unique and enhanced
quality offerings of the same (Huonaqua 2019). The concerned organization employed 487
Tasmanians while producing around 15,000 tonnes of salmon annually (Huonaqua 2019). The
development of the concerned organization is reliant on the strategies that are implemented by
the same while operating in the different markets. The diverse range of modifications that are
commenced by the venture in the line of product offerings assisted the venture in developing the
operations of the same while operating in the different markets. The revenue of the organization
expanded from 259,650 in year 2017 to 318,252 in the year 2018 (Huonaqua 2019).
The expansion and growth of the revenue streams of the organization assisted the same in
developing the operations while maintaining the efficiency of the operations in adherence to the
demand of the customers. The organization delivers the product offerings straightaway to the
doorstep of the customers within 5- 7 working days (Huonaqua 2019). The enhanced
commitment of the concerned organization assisted the same in maintaining the efficiency of the
operations in adherence to the demand of the customers. The enhanced customer service and
their specialty in the salmon processing and distribution assisted the venture in developing the
brand image of the same. The products of the organization are categorized under specific
categories in adherence to the needs and affordability of the customers. However, the major
offering of the organization is salmon, which is being demanded by most of the target customers
in the markets.

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Business level strategies of the organization
The different aspects of change that are commenced by the ventures are reliant on the
effectiveness of the cost leadership or differentiations strategies. Cost leadership strategy of an
organization aims at developing the operations of the venture while minimizing the cost of
products while diminishing the rate of wastes (Hitt and Duane Ireland 2017). Cost leadership
strategy assist an organization in attracting the attention of the customers towards the product
offerings of the venture. The cost leadership strategy of an organization assists the same in
maneuvering the price of the offerings while operating in the different markets. On the other
hand, the product differentiation strategy of an organization aims at developing the operation of
the same while improving the line of product offerings (Meyer, Neck and Meeks 2017). The
enhanced rate of product differentiation and diversification assists an organization in attracting
the attention of a huge number of customers towards the offerings. The strategy assists an
organization in enhancing the rate of sales while operating in different markets. The different
aspects of change that are commenced by the organizations assist the same in developing the
strategic propositions of the same while operating in different markets.
The concerned organization aimed at developing Cost leadership strategy with the
objective of maintaining the efficiency of the operation while adhering to the price related
concerns of the customers. The price leadership strategy of the concerned organization aimed at
developing the line of propositions while adhering to the demand encountered by the same in the
different markets. The concerned organization, HUON Aquaculture, quoted $38.99 for 1 kg fresh

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HUON salmon fillet and $10.50 for Fresh HUON salmon portions, which are premium grade
(Huonaqua 2019). The price offerings of the venture are lower than that of the competititors,
which assisted the venture in develiping the potentials of the same in enhancing the market
holdings. The competitively priced propositiosn of the concerned organization assisted the same
in gaining a huge market base. On the other hand, the quality assurance that is being provided by
the concerned organization assisted the venture in deveoping the trust and loyalty among the
target customers of the venture. However, the conecrned organization failed to develop
appropriate product differentiation strrategies, which affected the potentials of the venture in
continuing with the efficiency of the operations (Simon, Fischbach and Schoder 2014). The lack
of sufficient differentiation in the products has affected the potentials of the venture in
developing a wider market base. The organization segregated the products based on premium
and regular salmon deliveriables, however, the lack of sufficient diversification in the product
deliverables has affecetd the potentials of the venture in maintaining the efficiency of the
operations while imprving the market base (Bettis et al. 2014). The lack of sufficient product
diversification and differentiation has affceted the potentiald oof the same in continuing with the
efficiency of the operatiosn in adherence to the demand of the customers.

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Model of competitive reality
Figure 1: Porter’s Five Force analysis
(Source: Engert, Rauter and Baumgartner 2016)
Threat of new entrants  Higher threat of new entrants in the
markets due to the enhanced scope of
profitability (Karadag 2015)
 Enhanced initial investments that
might be undertaken by the new
entrants might create barriers for the
new enterprises in the markets
Bargaining power of the suppliers  The bargaining power of the suppliers
are low due to the presence of a higher

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number of suppliers in the markets
which would assist the concerned
organization in maximizing the rate of
net income
Bargaining power of the buyers  The market of the concerned
organization has a strong bargaining
power of buyers as there are different
substitute products and a wider range
of competitors (Stevens et al. 2018)
 The enhanced bargaining power of the
buyers has affected the potentials of
the venture in maximizing the
earnings
Threat of substitutes  A wider range of substitutes are
available in the markets which has
affected the venture through
minimization of potential outputs
Rivalry among firms  There is intense competition among
the players of the Fish/Livestock
industry in Australia which has
affected the potentials of the venture
in enhancing the rate of profitability
and market share (Spillman et al.

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2015)
Implementation plan
Goals Activities Responsible person Timeframe
Developing a wider
range of products
 Undertaking a
market survey
 Consultation
with the
stakeholders
 Developing
strategies for
products
 Developing
R&D
potentials of
the venture
 Designing
product
deliverables
along with
pricing and
promotional
Marketing manager,
R&D head,
Organizational
hierarchy, line
managers, market
analysts
7- 9 months

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attributes
 Implementing
the new
product
launch
Designing
comprehensive
policies for growth
 Reviewing the
existing
policies and
procedures of
the
organization
 Developing
plans through
consultation
with the
stakeholders
 Implementing
the policies in
the
organizational
model
Policy planners, CEO
of the organization,
Managers from the
different departments
1 -2 months
Improving the online
presence
 Reviewing the
situation of
Marketing manager,
quality analysts, IT
6- 9 months

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the online
presence of
the
organization
 Consultation
with the
marketing
manager and
the other
respective
stakeholders
 Planning and
budgeting for
the
expenses ,that
might be
incurred while
developing
social media
presence SEO
activities for
the website
 Recruiting IT
managers, HR
personnel, SEO
specialists, CEO of
the organization, Line
managers

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managers and
SEO
specialists
 Implementing
the social
media
presence
development
and the
website
optimization
program
Developing skilled
workforce
 Understating
the urgency of
skilled
employees in
the
organizational
processes
through
internal audit
 Consultation
with the HR
HR personnel of the
organization,
managers from the
different departments
of the organization
2- 3 months