Strategic Analysis of ABB Grain Company in Australia - HI5019 Report

This report presents a strategic analysis of ABB Grain, an Australian consumer goods company. It includes an environmental analysis focusing on ecological, social, and technological factors, along with a strategic overview of the company's operations in a competitive market. The analysis covers the company's background, its industry type (manufacturing), and a general environment examination considering political, technological, demographic, and socio-cultural aspects. It also evaluates the industry environment, including the threat of new entrants, opportunities for distributorships and network marketing, and potential threats such as economic downturns and technological changes. The report further examines ABB Grain's tangible resources like land and labor, and intangible assets like intellectual property and goodwill, highlighting their importance to the organization.

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INFORMATION SYSTEMS
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The study below outlines a report of consumer goods Company operating in Australia by
name ABB Grain. The research describes important environmental analysis, for example,
ecological, social, and technological features. In broad, the report is enriched to deliver
strategic analysis of functioning the business in the competitive market around the corporate.
The research is seriously done with the appropriate knowledge of many consumer goods
productions that operates with the aim of delivering quality goods at fewer costs. The
establishment delivers rural amenities comprising of nourishment and agriculture chemicals
supply and fur and livestock undertakings. The later it acquired support by the attainments of
Wardle Co, Adelaide Wool Company and Stawool in the year 2007.
The company tends to have significant set-ups in New Zealand focussing on the trading and
delivery of proteins materials and grains. In the year 2007, the company recognized a dual
venture in Ukraine with France based malting company (Soufflet) to amass grain, market
their grains and control supply chain actions. The company takes venturing aspect an
important factor as it improves business undertaking all over in foreign states. By giving both
an exclusive look at new technological grounds and a path to conceivable ownership or new
concepts applications, commercial venturing allows a firm to respond speedily to market
changes. According to Hill 2017) venture endowment can attend as an intelligence-gathering
inventiveness, assisting a company protects the situation from developing competitive
coercions.
Industry type connected with the company is a manufacturing type denoting the industries
that incorporate in the industrialized and material processing and result in both formations of
new supplies or value-adding facet. The sector (manufacturing) earns a vital industrial
segment share in industrialized states and also in some middle developed countries. The end
product tends to either accommodate full sale merchandise to customers or as an intermediate
product applied in the process of manufacturing other goods/services. These establishments

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(Manufacturing) are the main wealth-creating segments in any of the thrifts around the globe.
These productions smear various technologies and are extensively referred to as
manufacturing procedure administration where they generate physical merchandises (Brack
et al., 2015). How these possessions are created differs depending on the exact company and
industry. Though, most producers use machinery and industrial apparatus in producing goods
for public consumption. The manufacturing procedure generates value, meaning businesses
can charge a premium for what they always deliver.
General environment examination of the company under deliberation is that it principally
enhances pay, wealth and impartial distributing them. The political consideration of the
countries the company is operating from is rich to improve effective operation. There is the
existence of political stability where it offers a conducive environment for the company to
work efficiently. Business operating in unstable conditions (political) tends underperforming
due to several factors brought out by the insecurity and instability. Political steadiness and
economic expansion are deeply interrelated. The relationship among economic growth and
stability denotes to the state that the political security of a country can lead to its economic
development. A study by Morris and Metternicht (2016) states that mutual denominator and
the most reasonable relationship amid economic growth and stability is the element that a
stable environment nurtures economic growth. The indecision associated with an unhinged
political climate tends to decrease investment and the speed of economic expansion. On the
other hand, deprived economic performance may prime to government downfall and political
strife. A politically wobbly environment usually denotes that the government is exploiting or
mismanaging the republic’s resources: possessions are not fully utilized, or in a manner
where economic expansion could be enhanced.
Technological analysis of the country under consideration is that it is one of most developed
countries in the world regarding technology thus giving ABB Grain Company an upper hand

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in development. Automation capability will enhance many unskilled tasks to turn to allow the
company to substitute human production shapes with entirely machine ones. This aspect
reduces manufacturing costs, cost to distributors, superstores, and many other different
productions. On the dismissive side, the steady increase in job automation ought not been
such an abundant thing for job hunt firms. Australia is rich in Internet connectivity, and it’s
undoubtedly that in the latest year’s worldwide internet connectivity has been on the upsurge.
This offers an even superior market for many businesses who apply internet capabilities in
connecting with their clients. On the flip side although, a global increase in internet
connection might mean less interest in traditional communiqué means, which is a negative
result for some telephone facility providers will have to alter their offerings to remain
relevant, while paper and ink production companies might obtain less business.
The company on demographic analysis is enhanced as it works on values/targeting more
adults in the business as fewer youths are entitled in agricultural practices. The adult
population of the area is significantly considered thus enabling them to define the appropriate
amount of output delivered in the market. In cultivating more customers in the market, ABB
Grain tries to educate youths on the importance of agricultural practices.
The company goes further by enhancing that the social culture setting of the place is
considered in their performances. The social-cultural context of the region permits
agricultural based operations which in line goes with objectives of ABB Grain. The company
is entitled in giving back to the company thus assisting them in development aspects in the
area. Social culture enhances that all practices are in accordance to the setting on the region.
Analysis of potential analysis in the industry is not an exceptional reason that more investors
are coming up day today. New entrants in business may deliver a threat to one's company as
they will come to produce similar or substitute goods which bring competition to the market.
Risk of new participants Porter created shakes the competitive set for the existing contestants

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and influences the aptitude of existing companies to achieve profitability. For instance, in
height threat of entrance means new competitors expected to be attracted to the returns of the
industry and can arrive in the industry with much comfort. New entrants entering the market
can either portend or decrease the market segment and profitability of prevailing competitors
and may upshoot in changes to standing product quality or price stages. According to Keller
(2015) as new entrants flood the market zones, one supposed to enhance a plan to counter
before it influences the business. A great menace of new entrance can both prime a trade
more competitive and lessening profit potential for existing contestants. On the other hand, a
low threat of admittance makes the industry less viable and increases profit possible for the
existing organizations. The company is subjected to the danger of potential; entrants as the
government in place encourages investments in the industries as it improves the economy of
the entire state.
ABB Grain Company experience opportunities for distributorships. A distributorship includes
entering into a contract to offer and sell the product of others, without being permitted to use
the builder's trade name as a fragment of the agent's trade designation. Contingent on the
agreement, the supplier may be restricted to selling only that business's goods or may have
the liberty of marketing several different creation lines or services from various companies.
ABB Grain firm had ventured with other companies thus enhancing opportunities for selling
their products overseas hence becoming more competitive to deal with competitors in the
entire market.
Another opportunity ABB company experiences is the aspect of network marketing programs
that features low upfront investment and the chance in vending a product line straight to
friend, household and other personal interactions. Most network advertising programs also
ask members to recruit additional sales agents. The employees constitute a representative's
"downline," and their auctions generate income for those overhead them in the platform.

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Gears can get tacky when a network marketing recompenses participants chiefly for
conscripting others entirely than for vending the company's merchandises or services. A
system (network marketing) in which most of the profits comes from recruitment may be
reflected as an illegal pyramid system. Subsequently, network marketing plans are usually
exempted from business chance regulation and are not defined as contracts under state and
central franchise laws, as one is entitled in performing his/her investigation before
capitalizing any money.
The most worrying threat of ABB Grain Company is economic environment business threat.
The economic environment poses risks to several businesses as several products/services not
selling in a sound aspect during the economic slumps, such as a collapse. Moreover, clients
tend to reduce their spending while sales operators tend to cut their assets investments. Other
merchandises and services, conversely, sell enormously well during recessionary stages. If a
proposed commercial entity will excel, hesitate, or remain unscaled during financial
downturns. In every economy, whether in a developed country or developing countries there
always an anticipated decline of the economy thus it becoming a threat to almost all
companies.
The ABB Company also experience the threat of technological changes in the imminent
future. Technology application plays a crucial role in many businesses. The computer
productiveness, for example, spends an excessive time deal and money looking for more
operative and cost-efficient conducts to bridge the breach among humans and computers.
Computer corporations creating an improved and more natural tactic to computing will
undoubtedly experience success. For ABB Company as it is operating in a state where
technology is a crucial success factor, it is essential to hunt for ways to become more
technically advanced continuously. Every company in operation should enhance capabilities

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of dealing with every or most technological advances in order not to negatively impact the
outcome of the business.
PART TWO
ABB Grain Company contains resources of various kind, Tangible and intangible resources
that are a vital element in every organization. The Company got an extensive piece of land.
As all know that area is the prime tangible business asset. The land is any portion of the
property or any grounds utilized by the business in carrying out various productions. Land
can devote to a real piece of land where cultivation is carried out if the activity associated
with agro-products. Also, Land tends to mean all the places within that a factory is positioned
or even where an office is located. The land is one of the excellent vital, tangible resources
that are indispensable for a business to operate efficiently. The other substantial supply ABB
Grain Company got is the aspect of labor. It is a form of tangible support that is obligatory in
exercising out any practice of production. Labor is the physical resource that operates
machinery generating output thus delivering profit to productions. Labor can be of several
types. While unskilled labor might be suitable for manual procedures, while highly expert
labour is required to operate stylish machines that generate meticulousness output. Such a
skilled labour force is much in the mandate in precision productions as it is instead
challenging to obtain enough qualified employees. Labour as a tangible resource for business
means all persons that are comprised in the production procedure, and it contains every
person; right from the machine operates to the highly capable production administrator.
Langford, Fellows, Hancock and Gale (2014) states that economics never distinguishes
between structural status and position of a single person and if that particular individual
delivers service to the association, they are all deliberated as labour.
Intangible assets of ABB Grain Company comprises Intellectual property that merely a
subclass of intangible assets. Confident new economy businesses, which may be demarcated

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by the state of their intellectual property, are now contending in a knowledge-based frugality.
While old economy establishments competed under the armor of their elements and mortar,
the new economy firms that are dependent on their intangible assets struggle for market share
with adaptation and invention. The company also has another intangible asset as a form of
Goodwill. In accounting, goodwill is an intangible asset arising when a particular customer
obtains already existing business. Goodwill signifies resources which are not distinctly
identifiable. Goodwill in ABB Company does not include recognizable assets that got
capabilities of being separated or divided from the unit. The goodwill resource type extends
to the excess of the acquisition consideration which is the amount of money compensated in
buying the asset or existing business) over the entire value of the possessions and liabilities.
In the balance sheet, the goodwill aspect is considered as an intangible asset, for reasons of
neither not seen or even touched.
ABB Company got various capabilities that assist much in their operations to enhance best
output realization. They strengthen management capability which is the only active aspect of
management and is a tactic that applies the organization's client value proposition to created
performance objectives for skills grounded in value involvement. It aids driving out
inadequacies in capabilities that back low customer effect and focus productivities in areas
with significant financial leverage that preserve or capitalize on entire growth abilities. The
other capability the company has is the capability of sustainability where the firm maintains
the uniqueness and superiority of the proficiency relative to other firms notwithstanding their
sweats to imitate or duplicate the final products available for marketing. One tactic to
sustainability ability is ensuring ABB Grain Company develops the capability faster than its
competitors through learning and invention (Barney 2017).
In the core competencies analysis, it clearly understood that the company performs in
fulfilling the competency tests concerning their capabilities. Management capability ensures

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that there is a noteworthy contribution to the professed customer benefits of the end product
available in the market. This aspect enhances customer satisfaction hence enabling loyalty to
their products which in turn improves the sales volume hence high-profit realization.
Sustainability enhances the test of making it demanding/challenging in products imitation.
The capability enhances high competitive advantage in the market as competitors are not in a
position to imitate theirs produces.
Management information system (MIS) is the proposed information system that will improve
the actual productions of ABB Grain Company. The method comprises management
information systems thus scrutinizing people and technology in a well-defined structural
setting.
In a commercial setting, the eventual objective of management information system (MIS) is
in line with increasing the value and profits of the corporate. Whereas management
information systems tends application by any and every management level, the decision of
which structures tend implementation generally prime upon the chief technology officers and
chief information officers (Cavalaris et al. 2015) They usually accountable for the overall
technical approach of the organization including assessing how improved/new technology
can assist in productions upsurge. They further tend acting as verdict makers in the
implementation procedure of new management systems. Upon enactment, the allocated users
will enhance proper access to pertinent information. It is important noting that not anyone
feeding data into system needs necessarily be level of administration. It is a corporate
exercise to have non-managerial staffs record data inputs to the system though they rarely
have admittance to the reports and decision support platforms presented by management
information systems.
Evaluation

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I recommend the company to enhance advanced information systems that try to ensure the
speedy, accurate conversion of vital information associated with navigation safety. Some
performing agencies by now utilize information systems that endorse navigation safety in
carrying out their goals/objectives. With ever amassed complexities of business as well as
supervision, currently, Information systems are not purely required for refining effectiveness
of business operations. I recommend better utilization of the system for effective decisions in
the business and achieving strategic benefit. Management systems in the organization tend to
enhance better functioning with capabilities in the business divisions. Active administration
in the industry will improve proper strategic planning which in turn will provide elements of
meeting the stipulated goals (Fountas et al., 2015).

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References
Barney, J.B., 2017. Resources, capabilities, core competencies, invisible assets, and
knowledge assets: Label proliferation and theory development in the field of strategic
management. The SMS Blackwell handbook of organizational capabilities, pp.422-426.
Brack, W., Altenburger, R., Schüürmann, G., Krauss, M., Herráez, D.L., van Gils, J.,
Slobodnik, J., Munthe, J., Gawlik, B.M., van Wezel, A. and Schriks, M., 2015. The
SOLUTIONS project: challenges and responses for present and future emerging pollutants in
land and water resources management. Science of the total environment, 503, pp.22-31.
Fountas, S., Sorensen, C.G., Tsiropoulos, Z., Cavalaris, C., Liakos, V. and Gemtos, T., 2015.
Farm machinery management information system. Computers and Electronics in Agriculture,
110, pp.131-138.
Hill, T., 2017. Manufacturing strategy: the strategic management of the manufacturing
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and Alignment; To be published by Springer in the series. Management Professionals.
Langford, D., Fellows, R.F., Hancock, M.R. and Gale, A.W., 2014. Human resources
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Morris, A. and Metternicht, G., 2016. Assessing effectiveness of WEEE management policy
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