MGT5STR Strategic Management: Namoi Company Analysis Report

This report provides a strategic analysis of Namoi Fibre Company in Australia, beginning with the company's background and its involvement in cotton processing and marketing since 1962. It details the company's business units, including financial, manufacturing, and marketing, highlighting their functions and contributions to the company's operations. A SWOT analysis is conducted to assess the company's competitive reality, identifying its strengths, weaknesses, opportunities, and threats. The report explores the strategic plans employed by Namoi Company to gain a competitive advantage, focusing on leadership, product differentiation, and advertising strategies. It also evaluates the implementation of these strategies and offers recommendations for improving the company's strategic direction to maintain its market position amidst increasing competition and evolving market conditions. Desklib offers a variety of solved assignments and past papers for students.

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NAMOI COMAPNAY STRATEGIC MANAGEMENT
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Name of the professor
Name of the institution
Location of the institution

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Table of content
Executive summary………………………………………………………………………..3
Introduction…………………………………………………………………………………3
Company background………………………………………………………………………4
Business units and service line……………………………………………………………4
Strategic plan and implementation………………………………………………………..6
Competitive reality……………………………………………………………………….7
Strategic implementation………………………………………………………………...9
Recommendations………………………………………………………………………10
Conclusion………………………………………………………………………………11
References…………………………………………………………………………………12

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Executive summary
The following report gives the strategic management of Namoi Fibre Company in
Australia. The report starts by describing the background of the company and the products that
the company deals with. The business units of the company follow the background of the
company. In the business unit, the report analyses the financial, manufacturing and marketing
units of the company as well as their functions. After the business units, the report gives the
competitive reality of the company. This is where the SWOT analysis of the company comes in
to enhance the understanding of the competitive reality. the research also analyses the strategic
plan that the company is applying in the effort of obtaining a competitive advantage over other
companies. last but not least the research also gives recommendations on the changes that can be
made to improve on the strategic plan of the company.
Introduction
Each organization or company starts with a given purpose and objective. The success of
an organization is determined by the goals set at the beginning of the company or organization.
The objectives reflect a clear purpose of the organization. Therefore, the goals set in an
organization at the initiation period give the direction on how operations in the organization
should take place. The setting of these goals makes the strategic plan of the company. A
strategy, therefore, involves the setting of goals in an organization and identifying ways to
achieve the set objectives. Thus strategic management means setting of organizational goals as
well as setting different ways of implementation. The following is a report on the strategy used
by Namoi cotton company in Australia.

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Company’s background
Namoi Company is the leading organization in cotton processing and marketing. it was
established in 1962 as a cotton processing industry in Australia. It has been successful and has
the greatest share in the cotton industry (Qureshi, et al 2018). The company has a diverse
marketing, ginning and operational network all over all the cotton producing areas. This is
regions of southern Queensland and New South Wales. The company is also well represented in
the whole world by having offices in Jakarta Indonesia. As part of their strategy, the company
collaborates with other business in an effort of increasing their sales. For instance, the company
collaborates with Dreyfus commodities that are Namoi cotton alliance, Warren, wee waa
warehousing facilities and Goondiwindi.
Business units and service line
The company is divided into different business units to enhance product sales and
promotion. Each business unit deals with a given item as well as a given sector in the business.
There are different activities, which defines a business unit in the company. The activity starts
from the point of buying raw materials to the finished product (Wilkes, et al 2018). The
manufacturing units are well developed and equipped to provide the best quality of different
commodities. The company has a consultant unit that is very crucial to the development of the
company. This unit deals with decision making in the company and is comprised of different
experts selected from the company and outside environment. The work of the business unit is to
enhance proper decision making as well in the company. Any time there is a need to make a
crucial decision in the company; the people involved in the making of such decisions must
consult the experts to enhance good decision-making.

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Revenue unit
Secondly, a very strong financial unit facilitates the flow of finances in the company.
This unit regulates the finances that are used in the company to ensure that the company is
making profits. They also monitor the usage of finances in the company as well. The unit,
therefore, enhances proper management of company funds (Bird, 2018). It regulates the number
of funds that go to each unit in the company. In the process of processing, there are other
business units that include the harvesting unit, processing, exporting and classing units. The units
work together to enhance the flow of the manufacturing process in the company. For instance,
the harvesting unit ensures that the cotton that has been harvested has met the best standard to
meet the quality required for the final product.
The company main operating units are cotton ginning, cotton marketing, cottonseed
marketing and commodity parking units. The ginning unit is involved in the separation of cotton
from other foreign matters after it has been harvested (Ahlqvist, 2018). The unit also separates
seeds from the lint cotton. It also helps to change the arrangement of cotton from bales to
modules. The marketing unit is involved in the development of market and strategies to create
awareness among the customers. The unit through proper cooperation and good work has
enabled the company to emerge as the best selling company in Australia. The company has been
able to acquire the largest share of the cotton market in the country. The cottonseed-marketing
unit is also a very important unit in the company. After the seeds have been separated from the
lint cotton, they are supposed to be sold to the interested customers (Keskin, and Grunwald,
2018}. The department, using different strategies creates awareness among the customers of the
availability of the seeds. Those who are interested are given the way forward to access the seeds.
Finally, yet importantly, the company has a commodity-packing unit that is involved in the

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packing process. The unit is involved in the packing of seeds, and other commodities associated
with cotton.
Strategic plan and implementation
Namoi companies apply different strategies in their efforts to promote their products and
product development. These strategies are based on different sectors of the business that includes
leadership, advertisement, differentiation and integration (Ha, et al 2018). To start with, the
company has a very strong and effective leadership team that is focused on achieving the goals
and objective of the company. it has an executive team that is held by the chief executive who
receives reports from all the business units of the company. He also conducts meetings that are
held due to matters affecting the company. He is involved in making decisions that affect the
company’s operations. Secondly, down the hierarchy, a general manager is stated with a duty to
manage all the risks that may be encountered. He is also the one who regulated the trading
activities of the company to ensure that the company is at its best. A well-arranged leadership
group of a company enhances development and good performance in the company. Therefore,
Namoi Company is focused on ensuring that their management team well vets. This is to ensure
that all operations in the company are done with all professionalism
In addition to strong leadership, the company uses the differentiation of their
commodities to promote sales. The differentiation starts at the manufacturing stage where they
use high-quality raw materials to produce their commodities (Martin, and Hine, 2018). The
quality of raw materials is the most important thing that determines the quality of the final
product. Therefore, the products of the company have been differentiating from other
commodities due to the high quality that they possess. The company also offers huge discounts

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on their products as compared to the other companies in the same industry. This strategy leads to
increased sales thus the profits of the company go up. Finally, yet importantly, the company uses
different advertising strategies to promote their products. Beautiful pictures of the company's
products are posted on different social media sites as well as the company’s official websites. In
addition, the company uses different celebrities to advertise their commodities. Their
commodities quality is compared to the successful sports celebrities as well as musicians. This
strategy enables the company to gain more customers especially those who are followers of those
celebrities.
Competitive reality
In order to understand the competitive reality of the company, a SWOT analysis is very
necessary. The company has different strengths, weaknesses, opportunities and threats. The
analysis helps in the identification of the competitive position of the company. On the strength of
the company, the company has an extensive network that involves marketing, ginning, and other
logical operations in Australia (Mateo-Sagasta, Zadeh, and Turral, 2018). Therefore, the
company is able to generate very high economies of scale as compared to the other businesses in
the same industry. Secondly, the company has a longtime relationship with the Australian
grower of cotton. As a result, the company is able to maintain a constant supply of raw materials
form the many growers in the country. Having an experienced board of management is also the
strength of the company (Garcia, 2016). The management team has a good experience in specific
organizational knowledge about the industry. Lastly, the company has been able to maintain a
good relationship with their customers. It has been able to get reliable customers who are always
there no matter what. The only weakness that the company has is the fact that cotton has great
production variability impacts on profitability.

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Opportunities
The expected population growth in Australia is a great opportunity for the company. In
addition, the country and the whole world, in general, are expected to experience a lot of
urbanization, which is the key factor in cotton demand. Due to population growth, there is an
increase in the market of the commodity, which will expand the market share of the company.
Secondly, there is widespread rainfall that has provided a lot of water for irrigation. The water
has been used to irrigate acres of land that is used to grow cotton. This will increase the raw
material for the company to use in production. Development of infrastructure is a great
opportunity for the company. There has been a great investment in infrastructure by the
government of Australia to facilitate transport and communication. As a result, the company will
be able to transport raw materials and finished goods in are the convenient way to enhance the
sales and development of the company.
Threats
Risks that are inflation, currencies and price of the company: The exposure to such risks
is a great threat to the company due to unavailability of cheap alternatives. Cotton is an
agricultural product and is heavily dependent on rain. This posts a great threat whenever there
are no rains available and can cause many losses (Rocha, et al 2018). Drought or heavy rains are
therefore a threat to the company. There has been an increase in the intensity of competition
from other companies from different countries. This country includes Brazil and India. These
two countries post a great threat to the company due to the great completion that they cause.
Lastly, there are low-level markets of cotton in the world (Walsh, B., 2015). This is due to
policies such as the Chinese cotton policy that affects the sale of cotton in their country.

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Strategy implementation
Namoi Company is a great company and has a great share in the cotton market. However,
form the above analysis it is clear that the company is facing a great threat from other
competitors. Therefore, the company has to come up with different strategies to ensure that they
are able to maintain their position in the industry (Hawkes, 2018). The following is the strategy
that the company has implemented together with a few recommendations on the same.
First, the company is applying the strategy of product differentiation to be able to acquire
a competitive advantage over their rivals. This is whereby the company is using quality raw
materials to provide unique commodities in terms of quality. Secondly, the company uses other
strategies of making their commodities different from others. The strategies simply use attractive
colors in their products as well as differentiated shapes and sizes (Lyani, 2017). The other
strategy is whereby the company offers discounts to the consumers. This strategy is similar to the
price reduction policy. It has contributed a lot to the promotion of the commodities. Customers
are able to give a good testimony about how cheap the products of the company are as compared
to other companies.
Leadership is a very important part of an organization. Therefore, each organization in
their strategy should consider their leadership team and do the necessary changes if there is any.
For Namoi Company, the selection of a strong leadership team is part of the strategy. The
company has qualified leaders who are focused on achieving the goals of the company (Tourenq,
Field, and Searle, 2016). The leaders have a vast experience in the matters concerning the
industry. Therefore, they are able to detect problems as well as opportunities for the company.

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This has lead to a lot of development of the company as well as increased sales (Wilkinson,
2014). The organization of the company has also developed and consumers are served in the
most convenient and efficient way.
Lastly, the company has placed a lot of emphasis on the advertisement strategy
(Balvanera, et al 2016). As a result, the company has been able to capture the mind of the
consumer and has gained their attention. Using sports and other entertaining activities, the
company has been able to realize this great objective. Use of different celebrities and musicians
has gained many customers for the company. This is because the quality of their products has
been associated with the success of the celebrities (Wilkinson, 2014). Therefore different people
are attracted to the commodities because they love the sports stars and are willing to do anything
to be part of them. The results are big profits and development of the company.
Recommendations
The selected strategy of the company is a great step towards acquiring competitive
advantages over other business. However, this strategy is not perfect and requires a few
adjustments. I would recommend that the company apply the following changes in the strategy to
meet their ever-changing demand.
First, the company should try as much as possible to avoid price-based strategies. That is
the reduction of the commodities prices in order to attract customers. This is because people are
not concentrating more on the price of the commodity but quality (Williams, 2017). Therefore,
the language used in describing the commodity is more important than the price. Telling people
more about how good the commodity is will raise their need to buy such a commodity. The
company should avoid tones such as cheap in their marketing strategy. Instead, I recommend that

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the company should tell the customers more about the commodity other than the price of the
commodity.
Secondly, I recommend that the company use their customers to sell themselves. This can
be made possible by the creation of a platform where customers can express their experiences in
the company (Markey, and Halseth, 2016). The customers are allowed to tell others what they
experienced in the company and what would make them go back. By doing so different people
will be convinced to go an try the company and as a result, the company will gain more
customers. The company should also focus more on the use of different social media sites to
advertise their commodities (Barker, 2017). This is because almost everybody in the world has
access to the sites. Therefore advertising a commodity through such sites as FB gives, you access
to very many people in the world.
Conclusion
Success in a business is because of a good strategy that the business applies in marketing
their products. Poor management leads to failure of business or a company. Namoi Company,
which is an agro-based fiber business, is one of the successful companies in Australia. It is the
largest company and has the greatest share of the cotton market in the country. The company has
different business units and a strong financial department. In addition, it has been able to
implement a well-structured strategy to maintain their position. This strategy is based on
leadership, differentiation and prices of the commodity. This strategy has enhanced the
development of the company. Therefore a good strategy followed by an implementation plan,
guarantee success in an organization.

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References
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developments within the international investment regime; Fragmentation, separation and an
increasingly more influential general public? (Master's thesis).
Balvanera, P., Quijas, S., Martín-López, B., Barrios, E., Dee, L., Isbell, F., Durance, I., White,
P., Blanchard, R. and de Groot, R., 2016. The links between biodiversity and ecosystem services.
In Routledge Handbook of ecosystem services (pp. 73-89). Routledge.
Barker, L.L., 2017. Aboriginal Rainmakers: A twentieth-century phenomenon. In Water Policy,
Imagination and Innovation (pp. 63-74). Routledge.
Bird, L.J., 2018. Pyrethroid and carbamate resistance in Australian Helicoverpa armigera
(Lepidoptera: Noctuidae) from 2008 to 2015: what has changed since the introduction of Bt
cotton?. Bulletin of entomological research, pp.1-11.
Garcia, E., 2016. Sustainable agriculture under attack from mining, banks and agribusiness.
Green Left Weekly, (1081), p.10.
Ha, T.P., Dieperink, C., Otter, H.S. and Hoekstra, P., 2018. Governance conditions for adaptive
freshwater management in the Vietnamese Mekong Delta. Journal of Hydrology, 557, pp.116-
127.
Hawkes, J., 2018. Climate Change and Cultural Anxieties: An Exploration of Dystopian Novels
from Before and After Global Warming (Master's thesis, University of Waterloo).
Keskin, H. and Grunwald, S., 2018. Regression kriging as a workhorse in the digital soil
mapper's toolbox. Geoderma, 326, pp.22-41.

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Lyani, M.N., 2017. The relationship between Accounts Receivable Management Practices and
Growth of Small and Medium Enterprises in Kakamega County, Kenya (Doctoral dissertation,
COHRED-JKUAT).
Markey, S. and Halseth, G., 2016. 14 Rural Restructuring. Transformation of Resource Towns
and Peripheries: Political economy perspectives, p.336.
Martin, P. and Hine, D.W., 2018. Using behavioural science to improve Australia’s
environmental regulation. The Rangeland Journal, 39(6), pp.551-561.
Mateo-Sagasta, J., Zadeh, S.M. and Turral, H. eds., 2018. More people, more food, worse
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E., Mota-Sánchez, D., Rosales-Robles, E., Nava-Camberos, U., Blanco, C.A. and Martinez-
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