Strategic Management: A Case Study of Rodney Plant Plus, Australia

This report provides a comprehensive strategic analysis of Rodney Plant Plus, an Australian horticulture business. It begins with an overview of the company, detailing its products, services, and revenue generation units. The report then delves into external factors using PESTLE analysis, examining political, economic, social, technological, legal, and environmental influences. Internal analysis covers resources, capabilities, core competencies, and competitive advantages. The report concludes with recommendations for future business expansion, including leveraging digital communication strategies, attracting investors through financial transparency, and reducing production costs through technological improvements. The analysis suggests that Rodney Plant Plus has significant opportunities for growth in the Australian market by capitalizing on its unique offerings and adapting to changing market dynamics.

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Executive summary
The aim of the report is to throw light on the strategic management concepts that consist of the
detailed description related to the functional as well as the operations activity. Rodney Plant Plus
is selected company that is commonly known with the name of Plant Plus in Australian market.
The findings of the report shows the internal and external factors analysis that reflects that
company has vast opportunity in Australia for expanding the business operation and achieving
the success.

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Contents
Introduction......................................................................................................................................3
Overview of company......................................................................................................................4
Products and Services..................................................................................................................4
Revenue generation unit..............................................................................................................4
External analysis..............................................................................................................................5
PESTLE analysis.........................................................................................................................5
Internal analysis...............................................................................................................................7
Resources and capabilities...........................................................................................................8
Core competencies and competitive advantage...........................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

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Introduction
The aim of the report is throw light on strategic management inputs understanding and its
appreciation on the business. It is essential that the business needs to be a corporation that deals
in the horticulture focused Agribusiness sector present in the market of Australia. The
organisation on which the details strategic analysis has been conducted is Plants plus Australian
horticulture. The operations of the company that include the detailed analysis of the products and
services are discussed that lead to the rise in the revenue generated by the company. It is
essential to conduct the external analysis that includes PESTLE analysis as it helps in analysing
the situation. In the present environment, the internal analysis also creates the impact on the
working of the Plant plus in the Australian market. This internal analysis includes the
explanation related to the core competencies, capabilities, competitive advantage, and many
others. In the end of the report, there are several recommendations are provided to the company
for their future directions in the field of horticulture in Australia.

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Overview of company
Plant Plus is an Australian marketing as well as the buying group that operates its business
operations on behalf of the independently owned garden centres. The company came into
existence in the year 1974 in Australia by the Rodney and Cheryl Toll and since then it is
offering the largest selection of the annuals, perennials, trees as well shrubs with the different
sort of garden accessories, garden furniture, and many others (Rodney’s Plant Plus, 2019). The
company is majorly known with the name of the Rodney Plant Plus.
Products and Services
Rodney Plant Plus, Horticulture Company offers the service of becoming the member nurseries
stock a wide range of the plants, gardening, perennials, trees, as well as the related garden
products in the Australian market. The size of every garden centre is present as each of the
garden equipped with the plants are independently owned and maintained. It has been found that
not only it offers the large collection of the trees, shrubs, garden accessories, garden furniture,
pots, and many others (Rodney’s Plant Plus, 2019). In addition to this, it offers the guidance to
the people who are willing to maintain the different types of gardens at their place. In addition to
this, Plant plus include their own café which opened in the year 1996, by Rodney’s. This place is
considered as one of the popular meeting place for the business meetings, family, groups as well
as for lunch. In that café, the company is committed for the great service as well as the freshly
made, high quality products.

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Revenue generation unit
The revenue is one of the reasons due to which any of the company works in the market. The
revenue generation unit include the purchase of the plants, trees, garden equipment’s, and many
other. Another unit from which Plant plus is able to generate the amount is their café which is
depended on their plants, trees, fruits and fresh food products (Rodney’s Plant Plus, 2019). In
addition to this, the company also works as Planting Guide for Vegetables and Annuals. This has
been found that the most profit-generating unit of the company is dealing in the plants, trees,
garden equipment’s, giftware and many other which is provided either through personal visit or
through online mode. It has been found that consumer of country likes to garden and this is the
reason when they give gift they consider the plants as well as garden equipment’s as this add
happiness for adults and children’s (Rodney’s Plant Plus, 2019). It has been found that there is
no as such financial data presented by the company, as they do not want to reveal it among the
general customers.
External analysis
PESTLE analysis
PESTLE analysis is one of the strategic frameworks that determine external factors that can
influence working of business (Ho, 2014). The detailed explanation of the factors for Rodney
Plant pus Horticulture Company has been given below -
Political factors
The factors like change in rules and regulations can affect the working of the industry. It has
been found that company provide products through offline as well online mode that means there

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is hardly any factor that influence. In addition, the government of Australia is stable due to which
there is no frequent change in rules and regulations (Dawson, 2014). The changes in taxes over
the period can influence the company, as they need to make the changes in prices of plants, trees
and other products as well as in the café also. This might affect the revenue because people don’t
like to give gift that is so expensive.
Economic factors
The economic factors majorly include purchasing power, inflation rate, GDP, and many others. It
has been found GDP of the country in the year 2017 was 1323.42 billion US dollars and it is
expected to grow further in the coming year (Trading economics, 2019). The rise in the GDP
leads to increase in the purchasing power of the customers due to which they will purchase the
products. Further, the rise in the GDP will give the opportunity for the business to expand their
business operations in the entire market of Australia. Moreover, the high amount of the revenue
will lead to the rise in the capabilities of the company to deal with competitors.
Social factors
The change in the preference, taste, choices of the consumer in the market will make them to
purchase the product. In the present era, most of the people are becoming conscious towards the
giving gift to people as they are aware that trees, garden and plants are linked by many people as
well as it is good sign to give the plant as gift make them to purchase such products (Frynas and
Mellahi, 2015). Further, the people are also educated about the benefits of consuming the fresh
products as it can offer the benefits to their body and health. This is the reason they like to visit
those café where they can get all the facilities under one roof. Thus, this shows that there is

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increase in the opportunities of the company as they will be able to expand their menu in which
they can add those dishes which is possible to make with the help of the fresh food.
Technological factors
The change or upgrade in the technology will lead to the issue for the company as according to
that they need to make the changes in their operations (Grant, 2016). It has been found that there
are different technologies that can be used in gardening as well as there is change in tools used
for the gardening. Further, it has been found that the company can make use of the technology in
making the operations cost effective for them with the help of the advance software present in
the market.
Legal issues
The legal issues include the permission for conducting the business in Australia for which there
is need of the license that can easily be obtained by the company. In addition to this, the
company should follow the food safety standards in their cafe where they are offering wide range
of dishes to their customers. All these obligations are achieved by the company due to which
they can easily run their business in Australia.
Environmental factors
The environmental factors play a vital role in the business of plant plus as it is associated with
the horticulture (David, 2011). This business does not create any such impact on the operations
of company, as they are able to contribute in improving the working. In addition to this, the
change in the climate and weather creates slightly impact on the planting of plants, trees and
gardening.

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Internal analysis
It is essential to look towards the internal operations of the company that are given below -
Resources and capabilities
Plant plus company is managing the resources and capabilities in effective manner. The company
grow plants, trees, garden, and many others that they try to sell through which they can earn the
profit and can ensure that they are promoting the environment sustainability (Baker, 2014). In
addition to this, it has been observed that every business in to go through up and down scenario
due to which they also find the time when they don’t become able to sell the products. Thus, at
that time they make use of food and its related products in preparing dishes for café where they
can offer the fresh food services to their customers (Rodney’s Plant Plus, 2019). This shows the
way through which the company is able to manage their resources.
In addition, company has personnel who are trained in the horticulture operations so that they
can utilize their experiences in enhancing capabilities of the company. The experiences staffs are
considered as essential resource of company (Chernev, 2018). The capability of the business is
that they are able to engage and attract their customers in market. The capabilities of the
company are clear with the fact that it Rodney Plant pus is Canberra’s largest premier award
winning Nursery. It is committed as well as passionate for the products as well as services to
their clients in order to offer the clients with the professional as well as fantastic advice. Further,
it is capable enough to offer the enjoyable, rewarding work environment in a unique team that
remains enthusiastic and supportive (Rodney’s Plant Plus, 2019).

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Core competencies and competitive advantage
The competitors of the company are very less in the market because the offerings of the company
are considered as very unique. However, it can be said that some of the competitors of the
company will include the companies that operate in same filed such as Costa group, horticulture,
and many others. The unique offering of the company that is their café, gardening practice and
garden related products are considered as their core competencies because the other companies
are not offering where the clients can sit and avail the benefits of fresh beauty with fresh food.

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Recommendations
 It is suggested to the company to expand their business operations in the different areas
of Australia by opening the physical nursery. This will help them to earn high amount of
revenue in the market.
 Plant Plus should make use of digital communication strategies that will help them to
generate the awareness about the product and service offered by the company. The social
media channel is one of the effective way through which they can reach to the maximum
customers present in the market (Prasad and Saigal, 2019).
 The company should present their financial statement to attract the investors in their
company that will help them to expand the business in Australia.
 It is further suggested to the company to bring the techniques though which they can
reduce the cost of product by bringing the improvement in technology.

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Conclusion
In the end, this can be said that Rodney Plant Plus Horticulture business is considered as one of
the largest as well as premium nursery within Australia. The complete analysis on the company
shows that they are able to make their unique space in the market by offering the differentiated
services. The analysis of the external factors shows that company has wide options in the market
of Australia in horticulture segment. Further, the obligations are required to adhere by the
company in the effective manner. In addition, the company should conduct the internal analysis
in which the resources and capabilities of organisation are analysed. This has been found that
experiences staff of the company manages the entire operations which is one of the essential
source. Moreover, the recommendations are given to the company so that they can carefully take
their steps in the near future.