Strategic Management Report: Rodney Plant Plus Expansion Analysis

This report provides a comprehensive analysis of strategic management principles applied to Rodney Plant Plus, focusing on international business expansion. The executive summary highlights the company's opportunities in the agribusiness sector, particularly in New Zealand, and explores the potential for physical nursery expansion and exporting. The report delves into international opportunities, including market analysis and the benefits of a joint venture mode of entry. It evaluates appropriate international strategies such as transitional and multi-domestic approaches. Recommendations include implementing a marketing mix framework and Porter's generic strategies to achieve growth objectives. The report concludes that Rodney Plant Plus can achieve success in the New Zealand market by adopting these strategic approaches.

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Executive Summary
The main purpose of this report is to understand the topic of strategic management while
expanding the business at global level. In this report, Rodney Plant Plus has been taken into
consideration on the basis of assessment 1. In this report, the international opportunities have
been founded for the company such as expansion in physical nursery, and exporting. The
company can grab the market share by implementing the international strategies at the
workplace. It has been evaluated that joint venture is an appropriate mode of entry for an
organisation as it helps to enhance the brand image and influence the large number of
consumers towards it product. It is recommended that the organisation has to implement the
marketing mix framework and generic strategies to achieve all goals. It has been concluded
that the organisation can attain success in its expansion in New Zealand market.

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Contents
Introduction................................................................................................................................3
Overview....................................................................................................................................3
International opportunities.........................................................................................................4
International strategies...............................................................................................................6
Mode of entry.............................................................................................................................6
Appropriate mode of entry.....................................................................................................7
Inappropriate mode of entry...................................................................................................7
Recommendation........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Introduction
Strategic management is a process of monitoring, evaluating and assessment of all the
necessary activities of business in order to attain the success (David, and David, 2017). It is
necessary for an organisation to analyse or understand the environment while expanding the
business at the international level. It is required for the company to analyse the international
opportunities to attain high growth at the global level. In this report, the discussion is made
on international opportunities for an organisation in terms of growth. This is the continuation
paper of assessment 1 in which market analysis has been done on the Rodney Plant Plus
company.
In the beginning of this report, international opportunities will be founded on the basis of
market analysis report of the organisation. After that, appropriate strategies will be suggested
that is necessary for an organisation to attain the benefit. The appropriate mode of entry also
suggested to the company in order to enter the market. At the end of the report, the strategies
or techniques will be recommended to attain success in expansion.
Overview
Agribusiness in Australia is one of the strong industries for country as it is a major
agricultural producer and exporter. There are 325,300 exporters in agriculture, fishing and
forestry business. The government, media and business dialogue is again focused on the
agribusiness in order to improve this sector. Farmers and graziers own 135,997 farms that
grab 61% of landmass of Australia. It is a mix of irrigation and dry land farming across the
country. Australia leads with the 35 million hectares certified organic with the 8.8% of
Australia agricultural land (IBIS World, 2019). There are three main zones in Australia on
which the growth of agribusiness is relied. There are 10 major products in the Agribusiness of

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Australia such as crops, horticulture, viticulture, animal products and many others. Sector
revenue is expected to grow with the percentage of 1.7% over the five years through 2018-
2019 to $282.2 billion. The industry has 179406 businesses in which they focus for growth of
industry.
Australia produces the variety of product such as nuts, fruit, and vegetables. The largest crops
include apples, oranges, chestnuts, bananas and tomatoes. The horticulture industry provided
fresh fruits and vegetables to Australians with a smaller export industry. As per the research,
it is observed that the consumer of Australia prefer local produce of horticulture (Agritech,
2018). However, the people of Australia want the product in Australia whether it comes from
different country. Due to all these aspects, the country has a threat of loosed border control
and increasing importers have threatened local industries.
International opportunities
In the assessment 1, the external analysis has been done on the business environment in order
to evaluate the international opportunities for the organisation. It has been seen that the
organisation have the opportunities to grow in the same industry at the international level by
improving their services or adopting some strategies. Rodney Plant Plus has the opportunities
that are explain in detail:
Expansion
As per the market analysis, it has been seen that the organisation has to expand the business
in the different areas of Australia. There are many ways or fields in which the organisation
expands the business at the global level. According to marketing analysis and business
environment, the physical nursery is an appropriate field in which the organisation can
expand its business to provide the services to people of other country (Mainela, Puhakka, and

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Sipola, 2018). Physical nursery is the basic need of horticulture that is required to fulfil in the
organisation. The planting materials for horticultural plantation are raised from seeds and
vegetative parts. There is high growth of nursery in Australia that helps to gain the
competitive advantage. There is high demand in New Zealand has been seen that the
organisation also earn the high revenue by enter the nursery industry. New Zealand has
historically been at the forefront of the agricultural sector. The New Zealand market expands
the business at international market. It is essential for an organisation to be strong in financial
terms due to which it can be said that it has the higher level of opportunity to expand the
business in the physical nursery to reach at the international level (Hindawi, 2013).
Export Business
As per the above analysis, it has been founded that the Australia has a threat of increasing
import of the industry. Increasing Import becomes the weakness for the country in
agribusiness industry. It is a best opportunity for the organisation to export the material in
other country to expand the business at the international level. Exporting the horticulture
products in other country is a difficult task for the organisation but it is beneficial to gain the
high brand image in the global market. As per the assessment 1, it has been founded that it is
essential for an organisation to work on its technological services. It is also recommended
that the Rodney Plant Plus has to improve its technology so that it can easily export the goods
in other country with high prevention. Export the business is the best ways to gain the high
brand image in the market to gain the objective (Ansoff, Kipley, Lewis, Helm-Stevens, and
Ansoff, 2018).
Mode of entry
The organisation can enter the market with the different mode of entry to gain the success. It
has been seen that the organisation has the opportunity to enter the international market to

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grab the high market share. The company can enter the New Zealand market with the other
company from which they can easily gather consumer information that helps them to gain the
competitive advantage.
International strategies
Transitional Strategy
Transitional strategy helps the organisation to connect with the multi-domestic strategy and
global strategy (Watson IV, Weaven, Perkins, Sardana, and Palmatier, 2018). This strategy
helps the organisation to balance the desires of consumers of international level and the local
level. This strategy is beneficial for the organisation as it helps to earn the high profit. Plant
Plus has to implement this strategy at the workplace due to which it grabs the large number of
consumers in both the country as they fulfil all the requirement of consumers (Moutinho, and
Vargas-Sanchez, 2018).
Multi-domestic Strategy
Multi-domestic Strategy is the strategy which states that the organisation has to sacrifice the
other cost in order to invest in spreading the awareness in people. The company also has to
implement the policy of influencing the people rather than forcing them to purchase the
product (Lasserre, 2017). It is observed that it is essential for an organisation to aware the
people for their product as per their requirement. The company has to fulfil all the needs and
desires of all type of consumers such as global and local level. While promoting the product,
the company has to show the product on channels of New Zealand so that the consumers get
the information with the prices. The product quality should fulfil the requirements of the
consumers towards the product (Grünig, and Morschett, 2017).

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Mode of entry
There are various mode to enter the market at the international level such as joint venture,
franchises, partnership, Exporting, subsidiaries, etc. It is difficult for an organisation to
analyse the appropriate mode of entry in order to enter the market. It has been seen that the
organisations fail to select an appropriate mode of entry with the motive to enter the market
due to which they have fail in their expansion projects. That is why; it is required to analyse
the market of the host country before taking decision regarding mode of entry. The
appropriate and inappropriate mode of entry for Plant Plus has been discussed in detail
below:
Appropriate mode of entry
Joint Venture
It has been seen that the organisation has to analyse the market before enter the new market.
It is also a tough task to evaluate the needs and desires of consumer towards the product in
the new market. It is essential to evaluate the attitude of consumers towards the agribusiness
so that they influence them in that way from which they achieve higher level of satisfaction.
Joint venture is an appropriate mode of entry because it helps the organisation to understand
the consumer’s preferences towards the product (Elia, Moller Larsen, and Piscitello, 2019). It
can also grab the consumers with the name of existing company that is a beneficial factor for
it. The high brand image and grabbing the consumer are the factors that support the
organisation to attain the success in expansion of business in New Zealand.
Inappropriate mode of entry
Franchises
As discussed above, the organisation has to expand the business in physical nursery in the
new market. But as per the evaluation, it is a difficult for any organisation to achieve success

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in the market without understanding the consumers (Bau', Chirico, and Pittino, 2018).
Franchise method is not an appropriate mode of entry for the organisation as they do not
understand the preferences of consumer. In Franchises, the company also has to spent more
money to promote or open the stores due to which the risk of insolvency is high in the
organisation that is not beneficial (Reuber, Knight, Liesch, and Zhou, 2018).
Recommendation
As per the analysis, it is recommended that the organisation has to implement some strategies
and techniques to grab the higher level of success. The recommendation will be given in
detail:
Marketing Mix
As discussed above, the organisation wants to grow the business in New Zealand Market. An
organisation has to promote the product to aware the consumers towards their product that is
why; it is required for an organisation to implement the promotional technique at the
workplace to promote the product. The marketing mix framework includes the four elements
such as place, product, price and promotion. Rodney Plant Plus has to implement the
marketing mix by focusing on these four elements to promote and provide the product with
high quality (Stead, and Hastings, 2018).
Porter’s Generic strategy
The company also has to implement the porter’s generic strategy in the organisation to
influence the consumers towards its product. It is a fact that the consumers have high demand
towards the horticulture product and also have high bargaining power. That is why; it is
recommended that the organisation has to implement the generic strategy to attract the
consumers towards the services. Generic strategies contain three strategies such as

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diversification, cost leadership, and focus strategy. Cost leadership strategy helps to maintain
the price level to attract consumers towards the product. Diversification helps to make the
produce differ from others in order to gain the competitive advantage in the market (Noe,
Hollenbeck, Gerhart, and Wright, 2017).
Conclusion
From the above limelight discussion, it is concluded that the organisation can seize the high
market share by grab the international market. As per the analysis, it has been seen that the
Rodney Plant Plus has an opportunity to expand the business in the market of New Zealand
as there is high demand of agribusiness. The company can expand the business in the field of
physical nursery. Exporting or adopting the different mode of entry style also has the
opportunity for the organisation that helps to gain the success at the international level.
Rodney Plant Plus has to implement the strategies so; that the organisation can attain success
in expansion project. Multi-domestic strategy and Transitional Strategy are the strategy that
company has to implement. It has been evaluated that Joint Venture is an appropriate mode of
entry for the organisation but it also founded that the franchises is inappropriate mode of
entry to enter the New Zealand market. It is recommended that the organisation has to
implement the marketing mix, and adopt the generic strategies to attain success.

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References
Agritech. (2018) Farm Enterprises :: Horticulture. [online] Available from:
http://agritech.tnau.ac.in/farm_enterprises/Farm%20enterprises_horti.html [Accessed
23/6/19].
Ansoff, H.I., Kipley, D., Lewis, A.O., Helm-Stevens, R. and Ansoff, R. (2018) Implanting
strategic management. Springer.
Bau', M., Chirico, F. and Pittino, D. (2018) Modes of Business Entry and Exit in Family
Firms: The Role of Resource Intangibility. In Academy of Management Proceedings (Vol.
2018, No. 1, p. 13526). Briarcliff Manor, NY 10510: Academy of Management.
David, F.R. and David, F.R. (2017) Strategic Management: Concepts: a Competitive
Advantage Approach. Pearson.
Deng, P., Liu, Y., Gallagher, V.C. and Wu, X., (2018) International strategies of emerging
market multinationals: A dynamic capabilities perspective. Journal of Management &
Organization, pp.1-18.
Elia, S., Moller Larsen, M. and Piscitello, L. (2019) Entry mode deviation: a behavioral
approach to internalization theory. Journal of International Business Studies.
Grünig, R. and Morschett, D. (2017) Developing international strategies. Springer Berlin
Heidelberg.
Hébert, L. and Beamish, P. (2017) Cooperative strategies between firms: international joint
ventures. The Blackwell Handbook of Cross‐Cultural Management, pp.78-98.
Hindawi. (2013) Nursery Growing Media: Agronomic and Environmental Quality
Assessment of Sewage Sludge-Based Compost. [online] Available from:
https://www.hindawi.com/journals/aess/2013/565139/ [Accessed 23/6/19].