MGT5STR Strategic Management: Fibre Agribusiness Strategy Analysis

This report provides a comprehensive analysis of the business strategy of a fibre-focused agribusiness operating in Australia, specifically Papyrus Australia. It identifies the company's business units, product and service lines, and revenue streams, with a focus on the most significant revenue units. The report analyzes Papyrus Australia's business-level strategies, including cost leadership and differentiation, and constructs a model of its competitive reality. Furthermore, the report proposes an implementation plan and evaluation strategy, offering recommendations for the future strategic direction of the selected agribusiness, considering the Australian agribusiness sector's dynamics, including its climatic conditions, global investment, and technological advancements. The analysis also touches upon the challenges and opportunities presented by climate change and water resource management in the region. The report concludes by highlighting the importance of innovation and sustainable practices for maintaining a competitive edge in the global market. Desklib is your go-to resource for similar solved assignments and past papers.

Running head: BUSINESS STRATEGY (MANAGEMENT)
BUSINESS STRATEGY (MANAGEMENT)
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Business level strategies
Cost Leadership
Rothaermel (2015) has observed that technology adoption in agricultural and competitive
strategy primarily progress towards major objectives. Porter’s has transformed the theoretical
understanding, practise and knowledge of business strategy. It has been signified that
competitive strategy has taken offensive or defensive performances in order to create a different
stable position within the industry to contest efficiently with the five competitive forces and yield
a return on investment and revenues for the organisation. Porter's three generic business
strategies involve leadership differentiation and focus (Whitton, Baker and Mounter 2016). It has
been noted that while increasing cost leadership Papyrus Australia produces products or services
for a broad range customer base with economical costs generating from revenues of scale.
However while adopting differentiation strategy the organisation further efforts to differentiate
the product or service supply (Laurenceson, Burke and Wei 2015). Papyrus Australia has been
offering standardized products as well as services to wide-ranging markets at the economical
competitive prices (Papyrusaustralia.com.au 2018). Price range has remained the primary theme
in their marketing strategies. However Plunkett et al. (2017) have coupled this with exceptional
basic services as well.
Mohsin (2015) noticed that the broad ranging market pursued by Papyrus Australia tends
to facilitate agribusiness domain to expand the cost of their resources over expensive volume
thus condensing the investment per unit. Such economic cost position underlines the
organisation’s aggressive pricing policy and further has been able to attain technological
expertise from broad array of sources which in general do not aim to invest in essential research
and development (Laurenceson, Burke and Wei 2015). However value create concept can be

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utilised as an efficient mechanism for evaluating the prospective of a low-cost leader strategy of
Papyrus Australia. Furthermore internal procurement seeking for economical cost importation
along with the frequently assessing and benchmarking suppliers’ performance against
competitors can be considered to be as actions which can be used to implement a low cost
strategy for the organisation (Purves, Niblock and Sloan 2015). Taking into consideration the
inbound as well as out down logistics, resourceful, just in time delivery concepts which Papyrus
Australia acknowledges fundamental can reduce down-time or wait time at the supplier docks
(Plunkett et al. 2017).
It can further concentrate the account holding expense which would be perceived as
another example of performance that would be executed as part of a low cost strategy. However
the ‘value plate’ primarily provides mechanism for managers engaged in agribusiness sectors
like Papyrus Australia. The company will be able to access the potential of various actions which
might be executed as part of cost leadership strategy and further to establish whether those
actions process the actual capacity (Whitton, Baker and Mounter 2016). However the actions
primarily intend to contribute a competitive advantage compared to other producers in
agribusiness sector and produces the similar product and supply similar customer base.
Differentiation
Papyrus Australia manager primarily emphasizes on differentiation which offers a
consistent series of recently developed products and services. Their production service offerings
having positioned at above average market prices due to the additional value that has been
delivered by the differentiation and innovations generated by the organisation (Zhang, Chen and
Sheng 2015). If the organisation pursue a wide ranging market it will enable to expand the costs
of these innovation over large volume further sustaining down costs per unit of sales. However if

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a more narrowly illustrated niche market is followed, size economies tend to have less tendency
and elevated prices will be required in order to produce adequate margins (Larder, Sippel and
Argent 2018). The emphasis of the organisation on certain customers tends to constrain the
appeal of the production of considerable diminutive market but possess the benefits that the
solutions are so well comprehended to this customer base (Laurenceson, Burke and Wei 2015).
This has further led to the rivalry of Papyrus Australia to get resistant to the niche market of
agribusiness sector.
At this juncture, the value plate can be implemented to evaluate the potential of the
effective differentiation strategy. However the differentiation strategy of Papyrus Australia might
incorporate procurement processes which are more focused on excellence and restricted delivery
times for suppliers than emphasising on low price (Papyrusaustralia.com.au 2018). Taking into
consideration technological equities performance to avail the advanced and most effective
research and development along with recently developed product innovations would be
integrated to the strategy of the organisation (Mehlhorn et al. 2017). An effective differentiation
strategy would further include comprehensive interpersonal relationships with consumers in
relation to marketing and sales activities instead of focusing on transactional relationship that is
universal with the economical strategy where purchase the revenue is common.
Larder, Sippel and Argent (2018) noted that as a result and inclusive quality criteria and
sustainability that quality would be major determinants of the inbound logistics operations as
well as outbound logistics dimensions of the successful differentiation business strategy of
Papyrus Australia (Purves, Niblock and Sloan 2015). However it has been anticipated that these
competitive strategies would result in elevated costs, however those expenses would tend to be
more than compensated by the actual resources that emerged from selling a differentiated

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product in agribusiness sector of Australia.
Agribusiness’ business level strategy
The Australian agribusiness sector primarily occupies a considerable position in the
Australian economy and further possesses a strong track record in inviting global investment
across the agricultural supply chain. Whitton, Baker and Mounter (2016) indicate that the diverse
climatic and rainfall pattern of Australia along with its soil types tend to maintain a broad range
of agribusiness firms which involves tropical and temperate horticulture, thorough inland and
coastal aquaculture as well as production of timber and forestry products (Larder, Sippel and
Argent 2018). Australia has been enjoying various forms of beneficial factors in the domain of
agribusiness sector. Australia’s geographic isolation and leading quarantine and supervising
regime facilitate the preservation of utmost prominent for excellence level of production (Mohsin
2015). Furthermore proximity towards Asian economies, immense unrestricted trade agreements
along with counter seasonal production for the northern hemisphere imply that transnational
organisation who have been generating from Australia. This can efficiently deliver their
production throughout the year and can further be enabled to stimulate demand for Australian
goods and services in global markets (Plunkett et al. 2017).
Australian agriculture has been consistently financed and expanded by science and
technology based farming for the sector. This is for the sustained average agricultural
productivity revenue of above 2% over the past 5 decades. Mehlhorn et al. (2017) have revealed
that extensive competition level pertaining to agribusiness in Australia has been generated from
locally expanded production mechanism and technologies along with global investigation and
development. However persistent innovativeness witnessed infirm machinery, refined plant and
animal breeding programs as well as innovative transport solutions tend to support the capacity

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of Australian agribusinesses to generate highly exceptional commodities to the global market.
Furthermore assessing the second export of agricultural produce and services over two thirds of
agricultural goods and commodities generated on farm are reported to have been exported every
year. It has been noted that over the past two decades the rate of production and exportation of
eco friendly products have increased at a substantial rate in response to the elevating level of
international demand for higher value products (Mehlhorn et al. 2017).
Change in climatic conditions and related prolonged route periods have further created
hindrances in water supply and affecting the economy in the current period. However the
management of water resources across a dry continent is identified as a vital sector for Australia
(Purves, Niblock and Sloan 2015). This sector primarily specialises and is capable of generating
advanced technologies and infrastructure along with efficient water resource management
recycling and reuse and reclamation technologies. The considerable rate of investment done in
water by the Australian government has further invited greater areas of avenues for the
agribusiness sector. Australia has been distinguished as a logical suppliers’ source for
agricultural goods products food as well as biofuels (Papyrusaustralia.com.au 2018). The
professional and specialised farming communities further signify of competent and reliable
supply chain associate for international stakeholders.
However taking into consideration the extensive series of agricultural resources along
with rural production there can be identified recently developed agricultural opportunities
accessible within a stable and consistent investment and regulatory environment. Larder, Sippel
and Argent (2018) revealed that Australia leads the world in several areas of agricultural
investigation. Furthermore R&D research developers have been executed by State and Federal
government organisations including various cooperative research centres which invite together

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industry and government resources. The Australian Farm Management Consultancy Services
primarily into provide guidance to its clientele base introducing the most economic revenues
from farming (Purves, Niblock and Sloan 2015).
Papyrus Australia Limited fundamentally provides farmers with biological active
nutrients and programs which further helps in reducing a living healthy as well as sustainable for
optimum plant and livestock productivity and efficiency (Papyrusaustralia.com.au 2018).
However Australian biotechnology and gene technology experts span a wide range of arenas
involving improved with carbohydrate enhancement and bioactive compounds (Mohsin 2015).
Australian biotechnology has been facilitating powerful new mechanism for enhancing farm
animal breeding programs which involves genetic mapping mechanism and tools in order to
distinguish both disease resistant techno animals and certain specific genes associated to health
weaknesses and effects.

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References
Larder, N., Sippel, S.R. and Argent, N., 2018. The redefined role of finance in Australian
agriculture. Australian Geographer, 49(3), pp.397-418.
Laurenceson, J., Burke, P.F. and Wei, E., 2015. The Australian public's preferences over foreign
investment in agriculture. Agenda: A Journal of Policy Analysis and Reform, 22(1), p.45.
Mehlhorn, J.E., Miles, M., Bonney, L. and Tewari, R., 2017. Perceptions of entrepreneurship in a
university agribusiness program: developing a scale. International Journal of Food and
Agricultural Economics, 5(2), pp.27-33.
Mohsin, M., 2015. Agribusiness financing in Australia: issues and research agenda. International
Journal of Economics and Finance, 7(7), p.1.
Papyrusaustralia.com.au 2018. Corporate Information About Papyrus Australia. [online]
Papyrusaustralia.com.au. Available at: https://www.papyrusaustralia.com.au/the-company/about-
us/ [Accessed 14 Sep. 2018].
Papyrusaustralia.com.au 2018. Papyrus Australia | Converting Banana Palm into Renewable
Fibre. [online] Papyrusaustralia.com.au. Available at: https://www.papyrusaustralia.com.au/
[Accessed 14 Sep. 2018].
Plunkett, B., Duff, A., Kingwell, R. and Feldman, D., 2017. Australian agricultural scale and
corporate agroholdings: environmental and climatic impacts. International Food and
Agribusiness Management Review, 20(2), pp.187-190.
Purves, N., Niblock, S.J. and Sloan, K., 2015. On the relationship between financial and non-
financial factors: A case study analysis of financial failure predictors of agribusiness firms in
Australia. Agricultural Finance Review, 75(2), pp.282-300.
Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

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Whitton, C., Baker, D. and Mounter, S., 2016, February. Foreign ownership in Australian
agribusiness: results of a survey of firms. In 2016 Conference (60th), February 2-5, 2016,
Canberra, Australia (No. 235412). Australian Agricultural and Resource Economics Society.
Whitton, C., Baker, D. and Mounter, S., 2016, February. Foreign ownership in Australian
agribusiness: results of a survey of firms. In 2016 Conference (60th), February 2-5, 2016,
Canberra, Australia (No. 235412). Australian Agricultural and Resource Economics Society.
Zhang, D., Chen, C. and Sheng, Y., 2015. Public investment in agricultural R&D and extension:
An analysis of the effects on Australian broadacre farming productivity. China Agricultural
Economic Review, 7(1), pp.86-101.