Strategic Management Report: Analysis of Riverina Company

This report provides a comprehensive strategic management analysis of Riverina Company, an Australian agricultural organization. It begins with an executive summary and table of contents, followed by an introduction that outlines the report's objectives. The report offers an overview of Riverina Company, detailing its business units, products, and services, along with revenue analysis. The core of the report involves a thorough examination of the external environment using PESTEL analysis and an internal environment analysis. The internal environment analysis leverages VRIO analysis and resource-based capabilities to identify strategic resources and competitive advantages. Based on these analyses, the report concludes with strategic recommendations for Riverina, aimed at enhancing its market position and overall performance. The report covers political, economic, social, technological, legal, and environmental factors, providing a holistic view of the company's strategic landscape.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on the overall analysis of the strategic management of Riverina
Company which is one of the agricultural organizations based in Australia. Furthermore, the
internal and external analysis of the Riverina Company is required to be identified which will
be beneficial for the overall effectiveness of the firm. On the other hand, the resource
capabilities along with VRIO analysis have helped understand the different competencies that
can be beneficial for the overall growth of the firm in a positive manner.

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Table of Contents
Introduction................................................................................................................................3
Overview of Riverina Company................................................................................................3
Riverina’s Business Units......................................................................................................3
Products and Services............................................................................................................4
Units of Business Revenue and Significance of Largest Revenue Units...............................4
External Environment Analysis of Riverina Agriculture Organization.....................................5
Internal Environment Analysis of Riverina Agriculture Company...........................................7
Recommendations......................................................................................................................9
Conclusion................................................................................................................................10
References................................................................................................................................11

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Introduction
The report helps in the identification of the different business units of the Agricultural
business which is situated in Australia. The company is selling proper identification of the
various products and services that are sold by the organization as well as business revenue
unitsing sold by the company. Moreover, the external and internal analysis of the
organization is required to be identified that helps provide recommendations to the company
for providing strategic direction to the company.
Overview of Riverina Company
Riverina Company is one of the most efficient suppliers of animal feed for the overall
agricultural industry. Along with the same, the company has been one of the leading
exporters of protein and grain meals to the Pacific Rim, South East Asia and the other export
markets as well. The commitment of the company is to supply rural Australia with high-
quality products span. The organization was founded in the year 1927 in the district of
Riverina which is situated in New South Wales (Riverina.com 2019).
Moreover, the mission of the organization is to serve the different needs of the entire
community with a proper and effective system of distribution and manufacturing with
appropriate enhancement in the marketing of the products. Moreover, the mission of the
company is inclusive of maintaining a sound financial policy, and it will help provide
reserves to cope with the instabilities in the entire market.
Riverina’s Business Units
Riverina's business units are inclusive of various products along with services which are
based on horse, grain along with poultry related products that are being provided to the

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various customers in the entire market. These are the major business units, and they mainly
specialize in producing and exporting such products to the different rural areas in Australia as
well.
Products and Services
The various products and services that are being sold by the organization Riverina in
the entire market of Australia. The major products which are sold are inclusive of dressed and
steam-flaked grains in the market which is inclusive of barley, wheat along with grain which
is mixed with Lupins and Chick Peas that are being sold by the company in various rural
parts of Australia efficiently (Trigeorgis and Reuer 2017).
On the other hand, there are various farming related activities done by Riverina which
is inclusive of specialty items, poultry, and dairy products in an appropriate manner. The
different nutritionists of the organization have aided towards the proper introduction of
replacement of milk as well as feed for the animals that is inclusive of Rabbit grower pellets
as well as macro food pallets.
Units of Business Revenue and Significance of the Largest Revenue Units
The major units of the business revenue at Riverina is inclusive of beef, poultry,
grains as well as various specialty items that are exported by them to the various countries
and in Australia as well. The major significance of the largest units of revenue of the
company Riverina has aided themselves in generating immense profitability, and it led to the
overall success of the company as well. The export along with the production of the grains at
the respective company has assisted them in gaining profitability, and it helped in covering
the costs as well in the competitive business environment.

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External Environment Analysis of Riverina Agriculture Organization
The PESTEL analysis is one of the essential aspects which will be performed to
understand the different factors which can affect the growth of the company positively or
negatively. With the help of the external environment analysis, it will be helpful for the
company to make better decisions for the business appropriately.
Political Factors- It plays a significant role in analyzing the political stability of the
country in which the company operates. In the case of Riverina, there can be various risks in
the political system of the company which can affect the overall growth of the company
negatively. The risk diversification is essential before proper investment in the market which
includes the following:
 There is political instability in the Australian economy which can affect the growth of
the grains, poultry, and specialty items in the organization. The risk of innovation can
be the other essential factor in the respective sector which will be inclusive of the high
level of corruption that can affect the growth of the firm (Renz 2016)
 Proper protection of intellectual property is required to be done before entering in the
various markets. The trading patterns are favored, and systems of pricing regulations
are required to be identified which will help in analyzing the requirements of products
(Omotayo 2015).
Economic Factors- It is the other factor wherein Riverina needs to identify the macro
environmental factors which are inclusive of norms relating to competition as it can create an
impact on the different competitive aspects of the company.
 The unemployment rate in rural areas of Australia can be one of the significant factors
which will help analyze the level of productivity (Touboulic and Walker 2015)

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 The different interventions of the government are huge in various rural areas of
Australia that can have a significant impact on Riverina for exporting the grains in the
various rural areas. The entire economic stability of the host country is fluctuating and
volatile that can prove to be disadvantageous for the company (Liao et al. 2017)
 The labor cost in Australia is huge, and it can be a considerable demerit for the
organization; however the economic growth of Australia is high which will prove to
be beneficial in managing the rate of unemployment in Australia which will help gain
competitive advantage (Ho et al. 2015)
Social Factors- It is the other aspect wherein the culture and behavior of the company
are required to be identified which will be beneficial for the overall success of the company.
Proper knowledge of the purchasing power of the various customers as well as demographic
design is the most important aspects which will be beneficial for success.
 The consciousness of the environment, as well as the attitudes of the different
customers, play a significant role in analyzing the social impact on the overall culture
 The education level and social efficiency of the country is high which will be
beneficial for the global growth of the company appropriately (Dembek, Singh and
Bhakoo 2016)
Technological Factors- It is the other aspect wherein technological advancement
plays a vital role in agriculture company in Australia. In the past few years, the technological
elements are changing at a high pace in the agricultural sector which will be providing the
proper opportunity for Riverina to cope up with the changes.
 The technological impact on the different product offerings is essential that will create
a significant effect on the value chain of the company in a positive manner

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 The various technological advancements will be helpful for Riverina wherein export
of the various products will be reaching to more customers
Legal Factors- It is the other aspect in which the different regulatory frameworks are
required to be considered which will be beneficial for the company to protect the intellectual
property rights. There are various legal norms which will help improve the overall success of
the firm in a positive manner.
 Riverina company needs to understand the different legal norms such as proper
protection of the data along with laws related to health and safety of the different
employees that will be followed in companies in Australia (Morden 2016)
 The various acts about consumer acts which are being followed in an active manner
that will be beneficial in managing activities appropriately
Environmental Aspects- It is the last aspect in which it can be identified that there are
various kinds of factors which are as follows:
 The weather-related conditions are suitable for the Riverina company in which there
will be the inclusion of production of the different grains as well as other agricultural
products (Hitt, Ireland and Hoskisson 2016)
 On the other hand, Riverina requires to analyze the temperate in which they will be
producing the different grains and other items which is inclusive of poultry, specialty
products as well as grains
Internal Environment Analysis of Riverina Agriculture Company
With the help of VRIO analysis along with the resource-based capabilities, it has been
helpful for the company to determine the various strategic resources that will help them in
gaining competitive advantage.

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Resources- There has been the inclusion of both tangible and intangible resources
which includes the different raw materials, brand image of the firm as well as the skilled
laborers which contribute to the overall positive image of the firm (Engert, Rauter and
Baumgartner 2016).
Capabilities- The various laborers who are highly skilled in managing the different
operations of the company are treated as the significant capabilities of the firm. Moreover, the
proper usage of the different raw materials as to grow the premium quality grains and other
materials in various areas that aids in creating suitable as well as unique experience for the
various customers in the market (Certo et al. 2016).
Competitive Advantage- The strategy related to the value chain that has been adopted
by the company has added to gain a competitive advantage against the other competitors who
are present in the market (Bryce 2017). The sale of the various organic along with supreme
grains can add value to the different products which will be providing proper value to the
experience of the customers in an appropriate manner.
VRIO Analysis of Riverina Organization
Resource/
Capability
Value Rarity Costly to
Imitate
Exploited by
the
Organization
Value
Creation
Specialised kind of
laborers used in
Riverina
Yes Yes Yes Yes Sustained
competitive
advantage
High Quality raw
materials and
supreme output
Yes Yes Yes Yes Sustained
competitive
advantage
Technological Yes Yes No Yes Sustained

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Expertise competitive
advantage
Reputation Yes No Yes No Competitive
Parity
Innovative Ability Yes No No No Competitive
Parity
Effective
distribution
Network
Yes Yes Yes Yes Sustained
competitive
advantage
Customization or
the product and
service mix
Yes No No Yes Competitive
Parity
Recommendations
From the overall analysis of the internal as well as external analysis of the company,
the strategic recommendations which can be provided to the company Riverina are as
follows:
 Proper planning is required to be done by the company for the proper infrastructural
growth will be helpful for Riverina in improving the overall aspect of the company
 The product, as well as market expansion strategy, is adopted by Riverina that will
make them competitive in comparison to the other competitors present in the market
 Proper customer retention is essential to be done by the company through appropriate
establishment from the value proposition technique that will be helpful for the
company to gain a competitive advantage

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 The grains which are sold by the company are the most significant revenue center of
the company and to achieve a competitive advantage in the market, it is beneficial to
become superior
 Proper identification of the different ideal customers is essential for enhancing the
growth strategy as it will assist them in gaining considerable revenues in the market
appropriately
 Lastly, the company needs to focus on the different strengths, and the company needs
to keep an eye on the different competitors present in the market which will provide
them in becoming superior in the competitive business environment
Conclusion
Therefore, from the above, it can be concluded that with the proper analysis of both
external and internal environmental review, it has provided Riverina Company in analyzing
the various ability of the firm to become competitive in their approach. From the PESTEL
analysis, it has been identified that there are different kinds of political instability in the
Australian economy that can affect the overall growth of the firm in comparison to the other
competitors present in the market.
On the other hand, VRIO analysis has helped the company in analyzing the resources
and capabilities that led to gaining competitive advantage in the firm, and it helped the
company is growing in comparison to the other competitors present in the market. Lastly, the
company needs to analyze the different recommendations which will be helpful for Riverina
to gain a competitive position in the market appropriately.

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References
Bryce, H.J., 2017. Financial and strategic management for nonprofit organizations. Walter de
Gruyter GmbH & Co KG.
Certo, S.T., Busenbark, J.R., Woo, H.S. and Semadeni, M., 2016. Sample selection bias and
Heckman models in strategic management research. Strategic Management Journal, 37(13),
pp.2639-2657.
Dembek, K., Singh, P. and Bhakoo, V., 2016. Literature review of shared value: a theoretical
concept or a management buzzword?. Journal of Business Ethics, 137(2), pp.231-267.
Engert, S., Rauter, R. and Baumgartner, R.J., 2016. Exploring the integration of corporate
sustainability into strategic management: a literature review. Journal of cleaner
production, 112, pp.2833-2850.
Hitt, M.A., Ireland, R.D. and Hoskisson, R.E., 2016. Strategic management: Concepts and
Cases: Competitiveness and globalization. Cengage Learning.
Ho, W., Zheng, T., Yildiz, H. and Talluri, S., 2015. Supply chain risk management: a
literature review. International Journal of Production Research, 53(16), pp.5031-5069.
Liao, Y., Deschamps, F., Loures, E.D.F.R. and Ramos, L.F.P., 2017. Past, present and future
of Industry 4.0-a systematic literature review and research agenda proposal. International
journal of production research, 55(12), pp.3609-3629.
Morden, T., 2016. Principles of strategic management. Routledge.
Omotayo, F.O., 2015. Knowledge Management as an essential tool in Organisational
Management: A Review of Literature. Library Philosophy and Practice.