MGT5STR Strategic Management: Riverina Agribusiness Analysis Report

This report provides a strategic management analysis of Riverina, an Australian company operating in the agribusiness sector. It begins by discussing the Australian food-focused agribusiness sector, highlighting its importance to the national economy and the impact of external factors such as political changes and weather conditions. The report identifies international opportunities for Riverina, focusing on its potential for expansion given its existing capabilities and resources. It then explores international strategies suitable for Riverina, referencing the Uppsala Model of internationalization and emphasizing the company's focus on consumer needs. The report further analyzes appropriate and inappropriate modes of entry into the international market, specifically China, using Porter's Diamond Model to assess factors such as factor conditions, demand conditions, supporting industries, firm strategy, and government support. Finally, the report concludes with recommendations for Riverina's future strategic direction, including tailoring its product portfolio to local consumer needs and developing effective communication strategies. The analysis suggests that expanding into China through acquisition or partnership is a viable strategy for Riverina to enhance its international presence and revenue.

Running head: STRATEGIC MANAGEMENT ANALYSIS
STRATEGIC MANAGEMENT ANALYSIS
Name of the Student
Name of the University
Author Note

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Introduction
Riverina Company had started its operations in Riverina District of Southern New
South Wales in the year 1927. The operations of the organization were adjacent to Wise
Brothers flour mill in township of Narrandera. The manufacturing related activities of
Riverina had been expanded to Queensland in the year 1955 and the business had depicted
immense levels of growth in the subsequent years (Riverina.com.au 2019). The overseas and
domestic markets of the organization had also started growing with a broad range of feed
ingredients and stock feeds as well. The restructuring of Riverina took place in 1988 with the
effective involvement of the Mitsubishi Corporation as the shareholder of the organization
(Riverina.com.au 2019).
The report will be based on the analysis of the sector in which Riverina operates and
the effects of the changes in the particular sector on operations of Riverina. The international
opportunities that can be used by Riverina will also be analysed in the report in detail. The
international market entry modes that are considered to be suitable for the organization will
also be analysed in the report in detail.
Discussion of Australian food focussed agribusiness sector
Agribusiness sector in Australia is considered to be the most important part of the
economic condition of the country. The prosperity of the country is totally based on the
contribution that is provided by the operations of agribusiness based organizations. The
increase in attention is mainly based on the changes that have taken place in the external
political environment. The rise of middle class population in the Asian countries like Asia is
considered to be a major driver of effective operations of the agribusiness based
organizations (Chetty, Ojala and Leppäaho 2015).

2STRATEGIC MANAGEMENT ANALYSIS
The high levels of customer involvement, attachment to production of food based
products have affected the agribusiness sector in a positive manner. The potential of the
growth of agribusiness sector is able to provide major job opportunities to the individuals in
Australia and has also opened many new markets. The Agribusiness sector of Australia is
diverse in nature and the different operators who are involved on food supply chain are
responsible for the services that are provided to the customers (De Villa, Rajwani and Lawton
2015). The external weather conditions are however able to affect the ways by which
different organizations in this sector are able to maintain their operations and profitability
levels as well. The revenues of agribusiness industry have grown at an annual rate of 3.0% in
the last five years up to 2017 and 2018. The agribusiness sector has been provided with many
different challenges and opportunities based on the operations that have been performed in
the last few years (Francioni, Musso and Cioppi 2015).
The rise in income levels in the developing countries have been able to play a major
role in the ways by which agribusiness sector has been able to grow. The levels of
consumption are also expected to become double by the year 2050. The exports of different
food products have also started increasing in Australia due to the increase in purchase based
capacity in other countries in the world. The effective partnerships that have been made by
the organizations in agribusiness sector have also played a key role in the development of
operations of different organizations (Hitt, Li and Xu 2016).
Identification of international opportunities for Riverina
Riverina Company operates in the agribusiness sector of Australia and develops
products that include, beef, bird, dog food, goat, horse, poultry, pig, cattle, grains and
speciality. The products are able to fulfil diverse levels of customers who belong to different
backgrounds. The capabilities and resources that have been gained by Riverina are able to

3STRATEGIC MANAGEMENT ANALYSIS
support the international operations that can be performed by the organization. The skilled
employees of Riverina will be able to support the ways by which international expansion
activities can be developed (Hsu, Chen and Caskey 2017). The organization has been
successful in gaining competitive advantage in comparison to its competitors in the
agribusiness industry due to levels of sales of the organic products to customers. The
organization has already started expanding its operations in different overseas areas with the
help of its wide portfolio of products and services (Hutzschenreuter, Kleindienst and Lange
2016).
The expansion process of Riverina Company had taken place in year 2000 with the
help of acquisitions that were made by the organization at different points in time. Riverina
Company is thereby provided with many different international opportunities so that it is able
to increase its presence in various countries (Murphy 2018). The expansion process of
Riverina Company will be able to play a major role in the ways by which the organization
can aim at increasing its presence levels in the industry. The demands of consumers in
different countries can be fulfilled by the organization with the help of effective
implementation of international expansion (Tulung 2017).
International strategies to be implemented for Riverina
The shared values of the parent company of Riverina. Mitsubishi Corporation have
been taken into consideration in order to develop the international strategies that are
developed and implemented in its operations (Murphy 2018). The most significant aspects of
the values that are followed by Mitsubishi Corporation include, corporate responsibility
towards the society, integrity and levels of fairness and global understanding through the
business as well. The international strategies that can be implemented by Riverina is mainly

4STRATEGIC MANAGEMENT ANALYSIS
related to the effective operations of the organization in different countries (Yayla et al.
2018).
The Uppsala Model of internationalisation can be implemented in order to analyse the
ways by which Riverina has developed international strategies. Internationalization can be
defined as the process that is implemented by organizations for increasing the levels of
involvement in the international markets. Uppsala model is a major theory of
internationalization that helps in the describing the internationalization based process of the
organizations (Zachary et al. 2015). The model thereby states that the organizations aim at
entering new markets or countries in which low commitments are required. The organizations
can thereby start the process of internationalization with the support that is provided by
expansion of operations in nearby areas that require less investment as well. However, it has
been found that some of the firms do not follow the rules that have been set as a part of this
model (Hutzschenreuter, Kleindienst and Lange 2016).
The international strategy that has been implemented by Riverina in its operations
previously has an impact on the ways by which the organization is able to increase the levels
of revenues in the industry. The strategy is mainly based on the different products that are
offered by Riverina Company to the customers. The demands and needs of the consumers can
be fulfilled in an effective manner with the help of the products and the international
strategies of Riverina Company (Chetty, Ojala and Leppäaho 2015). The process of
acquisitions and partnerships have been able to play a major role in the development of
expansion based activities that are performed by the organization. The acquisitions are
mainly related to the proper fulfilment of consumer needs and demands (Zachary et al. 2015).
The focus of the Riverina Company on consumers of the organization is high and the product
portfolio is developed based on demands and needs of the consumers. The engagement levels

5STRATEGIC MANAGEMENT ANALYSIS
of consumers in organizational operations are high and the organization has tried to develop
an effective relationship with the consumers (De Villa, Rajwani and Lawton 2015).
Appropriate and inappropriate mode of entry to international market for Riverina
based on the Porter’s Diamond Model
The country that has been chosen for the expansion of Riverina Company is China.
The demands based on different products that are offered by the organization are high in the
country. The beef market of the country has been able to provide major levels of
opportunities to Riverina Company in order to maintain its operations and increase
profitability and revenues as well. The mode of entry that can be selected by the Riverina
Company in order to expand its operations in China is acquisition or partnership (Francioni,
Musso and Cioppi 2015). The company had already implemented the strategy of acquisition
in order to offer its products to different customers. Porter’s Diamond model can be
implemented in order to analyse the strategies that are implemented by the Riverina
Company in order to develop the operations in China. The effective presence of the Riverina
Company will be based on implementation of acquisition and partnership based process (Hsu,
Chen and Caskey 2017). The different factors that are a part of the Porter’s Diamond Model
are as follows,
Factors conditions – China has gained the topmost position in the world based on
levels of population. The country is thereby able to offer huge amounts of human capital to
the Riverina Company in order to maintain the levels of operations. The availability of skilled
as well as unskilled labour in the country is high and the organization has been successful in
the proper development of the levels of operations. Riverina Company will be able to form a
huge employee base in the country that can help the organization to gain revenues (Francioni,
Musso and Cioppi 2015).

6STRATEGIC MANAGEMENT ANALYSIS
Demand conditions – The beef based market in China is able to provide growth
related opportunities to the Riverina Company. The portfolio of products that has been
formed by the organization will attract huge number of customers in China. Quality of the
products is considered to be an important factor that is able to affect the customer base in
China (Hsu, Chen and Caskey 2017).
Supporting industries – The various services can form a significant part of GDP of
China and the economic growth as well. The labour quality in the country will prove to be
effective for the development of the revenues of Riverina Company. Sustainability levels of
the operations that are formed by Riverina are based on the labour force that is developed by
Riverina Company (Hitt, Li and Xu 2016).
Firm strategy, rivalry and structure – The beef and dairy industry of China is an
important factor that has an impact on the operations and profitability of the Riverina
Company. The rivalry levels in the industry will be quite high and Riverina Company will be
affected by the operations of the other organizations.
Government – The Chinese government has provided major levels of support based
on operations of different global organizations. The support levels offered to organizations is
able to offer high growth chances to Riverina (Yayla et al. 2018).
Chances – The Riverina Company is offered with major growth based chances in
order to maintain its operations and to increase the levels of presence in different countries.
Recommendations for future strategic direction of Riverina company
The major recommendations that can be offered to Riverina Company are as follows,
 The formation of the product based portfolio in such a manner that will be
helpful in the fulfilment of the needs and demands of local consumers.

7STRATEGIC MANAGEMENT ANALYSIS
 The communication needs to be developed by the organization with the
customers in China in order to increase awareness based on the products that
are offered to them.
Conclusion
The report can thereby be concluded with the statement that the Riverina Company
has been able to develop its successful operations in Australia with the help of its vast
product portfolio. The organization will however need to increase the levels of presence in
other countries in order to improve the revenue levels as well. The development of the
operations of Riverina Company in China will be able to play a key role in the formation of
an effective international presence of the organization.

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References
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entrepreneurial firms. European Journal of Marketing, 49(9/10), pp.1436-1459.
De Villa, M.A., Rajwani, T. and Lawton, T., 2015. Market entry modes in a multipolar
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Dikova, D. and Brouthers, K., 2016. International establishment mode choice: Past, present
and future. Management International Review, 56(4), pp.489-530.
Francioni, B., Musso, F. and Cioppi, M., 2015. Decision-maker characteristics and
international decisions for SMEs. Management Decision, 53(10), pp.2226-2249.
Hitt, M.A., Li, D. and Xu, K., 2016. International strategy: From local to global and
beyond. Journal of World Business, 51(1), pp.58-73.
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http://www.riverina.com.au/about-us/company-history/ [Accessed 18 May 2019].

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