Organizational Management Essay: Analysis of Pureponics' Strategies

This essay provides an in-depth analysis of Pureponics, an Australian startup in the farming industry, focusing on its organizational management and strategies for achieving a competitive advantage. The essay examines Pureponics' value proposition, which centers on sustainable farming practices, including organic cultivation and aquaponics. It explores the company's flat organizational structure, functional departmental divisions, and market focus and differentiation marketing strategies. Furthermore, the essay delves into the importance of financial projections, customer experience, and stakeholder management for Pureponics' success. It also discusses the use of strategic management tools such as PESTLE analysis and recommends a cost leadership strategy combined with product differentiation for long-term market viability. The essay concludes by emphasizing the critical factors Pureponics must consider to gain and maintain a competitive edge in the market.

Running head: ORGANIZATIONAL MANAGEMENT
Organizational management
Name of the student
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In the current business scenario, competitive advantages should be gained by the
contemporary business entities in order to have competitive edge over their competitors. This is
due to the reason that the intensity and level of competition in the current business affairs is high
and gaining competitive edge can be effective in this case. One of the major ways of gaining
competitive advantages is through the value proposition (Lenssen et al. 2013). This is due to the
reason that offering unique and distinctive value propositions will be effective in attracting the
customers and meeting their expectations over the competitors. In this case, the value
propositions should be innovative and distinctive in the market. This is due to the reason that if
the value propositions can be made unique and distinctive, then the customers will be more
attracted and they will be preferable towards the particular products.
Pureponics is a new startup from Australia operating in the farming industry. They are
trying to change the existing process of farming practices by following more sustainable
approaches. It is reported that organic cultivation and production is being done by them and least
amount of water resources are being used in the process. For instance, food cultivation and
aquaculture is being done on the basis of same water resources. In addition, the authentic taste
and nutritional value of the foods are being maintained (Fang et al. 2017). Thus, it can be
concluded that the innovative and distinctive farming activities of Pureponics are helping in
creating distinctive positioning in the market. There are number of organic farm producers
operating in the Australian market and each of them is offering farm fresh products but the
aquaponics process being used by Pureponics is helping in creating distinctive image. In this
case, the unique selling proposition for Pureponics is the sustainable production process.
In terms of the organizational design, Pureponics is following flat organizational
structure. This is due to the reason that they are small scale entity with having limited operations

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and human resources. Thus, with the help of the flat and horizontal organizational structure,
Pureponics is being able to enhance the connectivity between the internal stakeholders. The
upper level management of Pureponics are having the direct connection and contact with the
lower level employees and thus they are having the understanding about the issues and
challenges. In addition, with less distances between the upper and lower level stakeholders,
managers at Pureponics are having the idea about the change in the market trends and
preferences pattern (Tran and Tian 2013). Thus, it can be concluded that due to the
implementation of the horizontal organizational structure, Pureponics is having more marker
oriented and centric products for the target customers. In the organizational structure of
Pureponics, division is being done on the basis of functional areas such as department for
marketing, human resource, production and finance. This is helping in meeting each of the
functional areas effectively and efficiently. Recruitment and selection of the new employees is
also being done on the basis of the functional areas. For example, employees for the marketing
and finance department are having different sets of criterions and specialized employees with the
respective expertise are being selected (Zaridis and Mousiolis 2014). Hence, the average
employee effectiveness and productivity is enhanced for Pureponics.
In terms of the marketing activities, it is identified that market focus and differentiation
strategy is being followed by Pureponics. This is due to the fact that the products being offered
by Pureponics are premium in nature and can attract only a certain section of the market. With
the help of the product differentiation strategy, Pureponics is offering innovative and distinctive
products in the market, which are unique and not being offered same by their competitors. On the
other hand, it is also identified that with the help of the market focus strategy, the particular
premium customer segment is targeted and based on their requirements, new products are

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designed. For instance, the products being offered by Pureponics in the market will meet the
requirements and expectations of the target customer segments (Ismail 2017). Thus, being a
niche brand in the market, Pureponics is being able to ensure the high market penetration among
the target customer segments and also ensuring the higher brand loyalty. In terms of the
promotion, Pureponics is following majorly the online mediums based activities due to the far
reach and cost effectiveness. This is due to the reason that with the help of the online mediums,
Pureponics is being able to target their customer segments with having wider reach. In addition,
this should also be noted that Pureponics is new startup firm and they are having the need for the
customer feedback in order to develop their competitiveness. In this case also, online marketing
of Pureponics is helping in determining the feedback of the customers and improving the
products accordingly.
Due to the fact that Pureponics is small scale organization and is operating within the
Australian boundary, the need for proper financial projection is less but important. This is due to
the reason that with the help of the financial projections, Pureponics will be able to design their
organizational strategies accordingly and achieve the objectives. Funding of Pureponics is highly
depended on the external investments from the angel investors. Hence, it is important for them to
have proper and effective financial projections to denote the potentialities among the investors.
In addition, it will be also beneficial for the managers at Pureponics to have the understanding
about what should be done to meet the long term objectives and the potential risks associated
with them (Vargo and Lusch 2014). Customer experience should also be considered in the
process of business management. This is due to the reason that effectiveness and competencies
of the contemporary business entities depends on the extent to which the requirements and

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expectations of the customers are getting fulfilled. The experience of the customers should be
positive enough to ensure their loyalty and satisfaction.
It should be noted that customer experience can be determined by different ways
including functional matter, technical matter, social matter and emotional matter. According to
the functional matters in the customer experience, the particular products should be effective and
productive enough in meeting the functional needs of the target customers. For instance, in the
case of Pureponics, the functional requirements of the customers are to experience authentic taste
and nutritional value from the food products. Thus, irrespective of sustainable production process
and effective and innovative marketing activities, if the products of Pureponics cannot meet the
functional areas of the customers, things will get failed. In addition, the technical factors should
also be effective enough to maintain the satisfaction level of the customers (Lemon and Verhoef
2016). This is due to the reason that technical factors would include the lasting ability of the food
products of Pureponics and how convenient they are for customer usages. If the product handling
of the products of Pureponics is not friendly enough, then the customer experience will be
negative in nature for them. In terms of the social factors, the products of Pureponics should be
valuable enough for the customers. This is due to the reason that the target customers for
Pureponics are the premium and higher end customers and their products should also
complement that. If the products of Pureponics cannot meet the social value of the customers,
then the probability for meeting the positive customer experience will also be low. Thus, it can
be concluded that there are number of factors should be considered by Pureponics in order to
maintain the positive customer experience (Klaus and Maklan 2013).
However, it should also be noted that the industry where Pureponics is operating is highly
competitive in nature. This is due to the reason that there are number of local and global

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competitors operating in the Australian market offering organic farming products. Moreover, the
current business state of affairs for Pureponics is also changing in more rapid pace with the
change in the taste and preference pattern of the customers. In this case, it is important for
Pureponics to determine the periodical change in the external business factors by means of
different strategic management tools such as PESTLE and SWOT and Porter five forces. Each of
these strategic management tools will be beneficial for Pureponics in identifying the key internal
and external factors. For instance, with the help of the PESTLE analysis, external factors such as
political factors, social factors and economical factors and technological factors are being
determined and evaluated. In the current business scenario, it is important for Pureponics to
determine their political factors because they are willing to expand their business to the new
locations and different locations will have different political scenarios. Thus, the more effective
will be the determination of the political factors, the more will be the identification of the
potential political factors risks and opportunities and Pureponics will be able to design their
organizational strategies accordingly.
Management of the stakeholders is also related to the creation of value proposition for the
company due to the reason that the more effectively the stakeholders will be managed, the more
will be the probability of market centricity in the business process. In the case of Pureponics,
there are different internal and external stakeholders that are adding value in the business. Major
internal stakeholders for Pureponics include the employees, shareholders and managers while the
major external stakeholders for them are the customers, suppliers, investors and government.
Employees are considered as the key internal stakeholders because their skill sets and expertise
will determine the quality of the products. Hence, the management of them is related to the
market centricity because with the proper skill sets and expertise of the employees, new products

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can be developed on the basis of the market trends frequently. On the other hand, management of
the customers is also important for enhancing the value proposition because in the current time,
customers are expecting not only expecting the quality of the product but also the overall
experience. Thus, the more will be the customer management by Pureponics, the more will be
the probability of determining their needs and meeting them accordingly. Hence, the value
proposition will be more effective in this case. It can also be concluded that stakeholder
management can also be a fruitful factor for Pureponics in initiating their market centric
approach and value propositions for the end customers.
It should also be noted that in order to gain the long term business viability, market focus
strategy by Pureponics will not be effective enough. This is due to the reason that market focus
strategy will limit the potential target segment for Pureponics and sales volume will not get
increased in the long term. In this case, it is recommended that Pureponics should more
commercialize their organic products and should concentrate in initiating cost leadership strategy
in their production process. Initiation of the cost leadership approach in the production process
by Pureponics will enable them to reduce the internal cost and offer the products in more
competitive price points. The more competitive will be the pricing of the products of Pureponics,
the more will be the extent of target customers and the more will be the sales volume. In terms of
the market expansion by Pureponics also, cost leadership approach will be beneficial for catering
the global market demand in the long term. However, the product differentiation strategy should
also be followed in along with the cost leadership to offer the customers cost effectiveness as
well as innovative offerings. This will only ensure the gaining of competitive advantages in the
long term.

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This is concluded that there are different factors that should be considered by Pureponics
in order to gain the competitive advantages. One of these factors is the value proposition and in
this essay, it is evaluated about how the value proposition can be beneficial for Pureponics.
There are different elements such as human resource management, organizational design and
marketing activities are discussed, which are all beneficial for gaining the proper value
proposition for the end customers.

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Reference
Fang, Y., Hu, Z., Zou, Y., Fan, J., Wang, Q. and Zhu, Z., 2017. Increasing economic and
environmental benefits of media-based aquaponics through optimizing aeration pattern. Journal
of Cleaner Production, 162, pp.1111-1117.
Ismail, A.R., 2017. The influence of perceived social media marketing activities on brand
loyalty: The mediation effect of brand and value consciousness. Asia Pacific Journal of
Marketing and Logistics, 29(1), pp.129-144.
Klaus, P.P. and Maklan, S., 2013. Towards a better measure of customer
experience. International Journal of Market Research, 55(2), pp.227-246.
Lemon, K.N. and Verhoef, P.C., 2016. Understanding customer experience throughout the
customer journey. Journal of marketing, 80(6), pp.69-96.
Lenssen, G., Painter, M., Ionescu-Somers, A., Pickard, S., Bocken, N., Short, S., Rana, P. and
Evans, S., 2013. A value mapping tool for sustainable business modelling. Corporate
Governance.
Tran, Q. and Tian, Y., 2013. Organizational structure: Influencing factors and impact on a
firm. American Journal of Industrial and Business Management, 3(2), p.229.
Vargo, S.L. and Lusch, R.F., 2014. Evolving to a new dominant logic for marketing. In The
Service-Dominant Logic of Marketing (pp. 21-46). Routledge.
Zaridis, A.D. and Mousiolis, D.T., 2014. Entrepreneurship and SME's organizational structure.
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