Ridley Corporation: International Opportunities and Strategies Report

This report provides a strategic management analysis of Ridley Corporation Limited, an Australian publicly listed company in the food agribusiness sector. The analysis focuses on the company's international expansion opportunities, particularly in the Chinese market. The report utilizes PESTEL and Porter's Diamond Model analyses to evaluate the macro-environmental factors and competitive dynamics influencing Ridley Corporation's strategic position. It explores various international strategies and entry modes, including joint ventures, acquisitions, and direct exporting, with a recommendation for the most appropriate entry mode for the Chinese market. The report also offers recommendations for the future strategic direction of Ridley Corporation in China, emphasizing the importance of cultural sensitivity, localization, and strategic alliances to mitigate risks and capitalize on opportunities. The report concludes with a discussion of the company's strategic choices and their implications for success in the global market. The analysis includes an executive summary, table of contents, introduction, body, conclusion and recommendations, and follows Harvard referencing style, with a minimum of eight journal articles and textbook references to support the research.

Running head: STRATEGIC MANAGEMENT OF RIDLEY CORPORATION
Strategic Management of Ridley Corporation
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1STRATEGIC MANAGEMENT OF RIDLEY CORPORATION
Executive Summary
Ridley Corporation Limited is a locally-owned publically listed Australian company that offers
wide range of products. The objective of the report is to conduct strategic management analysis
of Ridley Corporation in order to analyze the food agribusinesses international opportunities and
strategies within a selected international market, China. The report revealed that the survival of
Ridley Corporation in the Australian as well as in the Chinese market requires setting clear basis
of differentiation that can provide the company an edge against rivals. The organizational
strategies of the agri-food business is to focus on the unique selling proposition in ensuring
success of the strategy in international as well as local marketplace.It is also recommended to
Ridley Corporation Limited to consider implementing the strategy of strategic alliance in its
international expansion process in China as it can decrease the risk of business success through
cost sharing.

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Table of Contents
1. Introduction..................................................................................................................................3
2. Analysis of International Food-Focused Agribusiness Sector.....................................................3
2.1. PESTEL Analysis.................................................................................................................3
3. International Opportunities and Strategies for Ridley Corporation.............................................5
3.1. Porters Diamond Model Analysis.........................................................................................6
4. Entry Mode Selection for Ridley Corporation.............................................................................8
5. Recommendations........................................................................................................................9
6. Conclusion.................................................................................................................................10
References......................................................................................................................................12

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1. Introduction
Ridley Corporation Limited is a locally-owned publically listed Australian company that
attains revenue from provision of exceptional quality solutions of animalnutrition. The company
offers wide range of products such as packaged goods, poultry fees, aqua and commercial feeds.
The company has considered implementation of international market expansion strategy were it
will ensure success of its agri-food business (Ridley 2019). The objective of the report is to
conductstrategic management analysis of Ridley Corporation in ordertoanalyze the food
agribusinesses international opportunities and strategies within a selected international market,
China. Focused on such analysis suitable entry mode section will be done for successful entry in
Chinese market.
2. Analysis of International Food-Focused Agribusiness Sector
2.1. PESTEL Analysis
The analysis of situation of food-focused agri business sector is carried out through
implementing PESTEL evaluation for the sector. This analysis tool can facilitate in evaluating
the macro-environmental factors that can have on the companies’ strategic position in the sector
(Brosnan, Doyle and O’Connor 2016).
 Political: The political factors that can impact the international food-focused agri-
business sector include the political stability of the nation along with the law that is
imposed by government regarding conducts of “agricultural projects” (Brosnan, Doyle
and O’Connor 2016). There are certain trade barriers in certain nations that can affect
trade with potential trade partners that can harm the agri-food business companies

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through preventing potential exports. An increased level of taxation in the global food-
focused agro business sector can de-motivate the companies in operating their business
efficiently internationally as it can affect their profit maximization (Brosnan, Doyle and
O’Connor 2016).
 Economic: The economic factors that impacts the global food-focused agri-business
sector includes efficiency of the financial markets that supports the sector as it can arise
capital at four price and the rate of GDP growth also impact the profitability of the sector.
Higher interest rates affect the global food-focused agri-business sector as it decides the
extent to which the individuals are willing to borrow and invest. High rates can also result
in increased investments that indicate high growth for the sector (Uddin 2017).
 Social: Certain social factors are deemed to impact the global food-focused agri-business
sector. The businesses operating within this sector needs to be completely aware of the
level of health standards, reactions to certain harassment claims along with the
importance of environmental protection existing within the company’s global food-
focused agri-business sector (Brosnan, Doyle and O’Connor 2016). Moreover, certain
other social factors in the international market such as the lifestyle of the population in
the nation along with their interests regarding consumption of various types of agro-
products impacts the product development strategies of the companies operating in this
sector.
 Technological: Technological factors existing in global food-focused agri-business
sector that are trending along with the ones used by the competitors can impact
businesses (Tulung 2017). Rate of technological diffusion is also increased in the
international agri-food sector. In such situation the companies operating under this sector

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might face certain issues in case they do not embrace such technological issues. The
industry has started to introduce certain automation technologies in improving the sale of
agri-food offerings.
 Environmental: Certain environmental factors such as weather conditions can
significantly impact global food-focused agri-business sector in the form of attaining
ability to manage transportation of agri-food based resources and the finished products.
In addition, the agri-food business that relies on the renewable energy might turn out to
be expensive as it needs support from both government and consumer base that might be
willing to pay for the premium priced agro-food products (Soosay and Kannusamy 2018).
 Legal: There are certain laws in global food-focused agri-business sector regarding
maintenance of certain level quality in agri-food products in order to keep consumers safe
through consuming them. Moreover, certain other laws exist in Australia regarding health
and safety to safeguard employees from working in horrible working conditions and fur
generating a feeling of ethical social responsibility towards developing agri-food products
for consumers.
3. International Opportunities and Strategies for Ridley Corporation
For successful international business expansion of Riley Corporation Limited in China,
identification of international opportunities along with robust discussion of its distinct
international strategies is deemed important that canfacilitate it in attaining competitive edge. In
analyzing such opportunities and strategies of the company that can support its international
expansion decision in China, Porter’s Diamond model analysis is carried out (Sipper 2015).

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3.1. Porters Diamond Model Analysis
Porters Diamond Model analysis focuses on evaluating two views of the company that is
industry and resource based view that can facilitate in establishing relationship between Ridley
Corporation Limited’s strategic choice and institutional frameworks and fie ensuring competitive
advantages in international market(Brosnan, Doyle and O’Connor 2016).
Figure 1: Porter’s Diamond Model of Ridley Corporation Limited
(Source:Murphy 2018)
 Factor Conditions:This refers to countrygenerating its own factors of production. In
considering international business expansion of Ridley Corporation Limited in China,
factor conditions take into consideration building up a nation’s skilled resources along
with putting them to be best use as is done by the company in Australia through acquiring

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argi-food based raw materials from other parts if the world along with treating the
through undergoing innovative processes that suits its own business operation
needs(Brosnan, Doyle and O’Connor 2016).
 Demand Conditions:Demandcondition refers to a situation where demand of a
particularproduct is high in the local market where the company can focus on it and build
the same as its competitive advantages (McAllister et al. 2015). The demand for healthy
agri-food is very high in China and considering such demand, Ridley Corporation
Limited has decidedto expand its business in China based on which it can succeed in the
agri-food business sector successfully.
 Strategy, Structure and Rivalry:The survival of RidleyCorporation in the Australian as
well as in the Chinese market requires settingclearbasis of differentiation that can provide
the company an edge againstrivals. The organizational strategies of the agri-food business
is to focus on the unique selling proposition in ensuring success of the strategy in
international as well as local marketplace. Moreover, the company is also observed to
face competition in the Australian market from some renowned agri-food business
companies namely Harmony agriculture and Food Company and Agri-Food Ingredients.
Moreover, it is also deemed to face fierce competition from existing competitors in the
Chinese agri-food sector that includesYili Group and Agria Corporation (Malcolm 2017).
In order to attain competitive advantage in the situation of such fierce rivalry, Ridley
Corporation Listed has considered implementing effective international business
strategies such as attaining international business sues through building new revenue
stream and streamlining is operations for developing reliable supply chain of its agri-food
products in Australia as well as its expanded businesses in China.

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 Related and Supporting Industries:Related an supporting industries of Ridley
Corporation Limited is observed to be thriving and are in competition with one another
this offers the company with an advantage to attain cost advantages along with focusing
in its innovation approaches so that it can successfully implement its differentiation
strategy in the Chinese agri-food business market (Fang et al. 2018). Moreover, it is also
deemed that the local conditions affect the company’s strategy as well as culture followed
in the Australian as well as in the Chinese market. Within China, Ridley Corporation
Limited is considered to have high focus on accomplishing business activities through
research and for this reasons the same ideas were followed by the agri-food business.
4. Entry Mode Selection for Ridley Corporation
For ensuring successful international business expansion of Ridley Corporation Limited
in China, the food-focused agri business can implement among the most effective and suitable
entry modes indicated below:
 Joint Venture:This international market entry strategy in china involves partnership that
involves generation of a third independentlymanaged organization. In this entrystrategy,
Ridley Corporation can consider working collaboratively with a local company in
Chinese marketwhere the risks and products are normally shared equally. In this strategy
the company can either work with a local company through creating a third company
together in offering theirservices (Chen et al. 2017).
 Acquisition: Acquisition can also serve as an effective market entry mode for the
company in China. This marketentrystrategy can be effective for Ridley Corporation
Limited in setting a co-marketing arrangement to a sophisticated strategic alliance for

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manufacturing. This market entry mode can be useful strategy for the company in
entering Chinese market where business and social culture for attaining competitive
advantages of local market knowledge in China(Brosnan, Doyle and O’Connor 2016).
 Direct Exporting:In this marketentry ode strategy, Ridley Corporation Limited can
consider selling its food focused agri products in Chinesemarketthrough using its own
resources. Moreover, in this international business expansion the company can develop a
sales program through employing distributors to represent the company in the Chinese
market (Burch, Goss and Lawrence 2018).
Among the above entry mode strategies, it is deemed that JoinVenture entry mode can be
most effective for ensuring successful international expansion of the company’s business in
China. In this strategy, the company can enter into partnership with several local suppliers,
distributors and vendors along with the government of China that can enable the business to
function in an effective manner. Through implementing this entry mode strategy the food-
focused agri business can be able to directly offer its product ranges to the Chinese
consumers(Brosnan, Doyle and O’Connor 2016).
5. Recommendations
For ensuring successful international expansion of agri-food business of Ridley
Corporation in China certain effective recommendations are provided to the company in ensuring
success of the expansion strategies through using its core competencies:
 Ridley Corporation Limited is recommended to take into consideration the culture factors
in China such as psychic distance for selecting suitablemarket entry mode.

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Psychicdistance is considered as an extent towhich an organization is uncertain regarding
the nature of the international market.
 While selecting among the explained entry mode strategies for Ridley Cooperation
Limited, it is recommended to the company that it must not consider implementing
Greenfield investment strategies as this has turned out to be costly in the previous years.
Moreover, the company must also sustainstrategies that can fit within the culture of the
Chinese target market. As it has been recognized that the Chinese agri-food sector is
highly sensitive as it represents the every necessities of the target Chinese consumers
Ridley Corporation Limited must remain responsive to the needs of the culture of
Chinese local consumers. Considering the same, the company must also consider
implementing localization strategies in order to successfully respond to the culture of
Chinese local market.
 It is also recommended toRidleyCorporation Limited to consider implementing the
strategy of strategic alliance in its international expansion process in China as it can
decrease the risk of business success through cost sharing. This strategy can also facilitate
in capitalizing the company’s previous experience and expanding in a familiar manner.
6. Conclusion
The objective of the report was to conductstrategic management analysis of Ridley
Corporation in ordertoanalyze the food agribusinesses international opportunities and strategies
within a selected international market, China. It has been gathered from the report that the
demand for healthy agri-food is very high in China and considering such demand, Ridley
Corporation Limited has decided to expand its business in China based on which it can succeed
in the agri-food business sector successfully. It is gathered from the report that jointVentureentry

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mode can be most effective for ensuring successful international expansion of the company’s
business in China. In this strategy, the company can enter into partnership with several local
suppliers, distributors and vendors along with the government of China that can enable the
business to function in an effective manner. Ridley Corporation Limited is recommended to take
into consideration the cultural factors in China such as psychic distance for selecting
suitablemarket entry mode. Psychic distance is considered as an extent towhich an organization
is uncertain regarding the nature of the international market.

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References
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added value?. Competitiveness Review, 26(5), pp.500-516.
Burch, D., Goss, J. and Lawrence, G. eds., 2018. Restructuring global and regional agricultures:
transformations in Australasian agri-food economies and spaces. Routledge.
Chen, P.L., Kor, Y., Mahoney, J.T. and Tan, D., 2017. Pre‐Market Entry Experience and Post‐
Market Entry Learning of the Board of Directors: Implications for Post‐Entry
Performance. Strategic Entrepreneurship Journal, 11(4), pp.441-463.
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competitiveness of the G20: A revised Porter's Diamond Model. Renewable and Sustainable
Energy Reviews, 93, pp.719-731.
Malcolm, B., 2017. Agribusiness Perspectives on Transgenic Wheat. In Wheat
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P., 2015. From local to central: a network analysis of who manages plant pest and disease
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18681). Briarcliff Manor, NY 10510: Academy of Management.

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Ridley., 2019. Ridley - Financial Results. [online] Available at:
https://www.ridley.com.au/investors/financial-results [Accessed 17 May 2019].
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