MGT5STR: Inghams Enterprise Strategic Analysis in Agribusiness

This report provides a strategic analysis of Inghams Enterprise, an Australian agribusiness, focusing on its business activities, revenue streams, and market position. The analysis includes an examination of the external environment using PESTEL framework and Porter's Five Forces, assessing political, economic, social, technological, environmental, and legal factors impacting the company. An internal analysis using SWOT framework identifies Inghams' strengths, weaknesses, opportunities, and threats, along with its resources, capabilities, and core competencies. The report concludes with recommendations for the company's future strategic direction, highlighting areas for improvement and growth. Desklib offers similar solved assignments and past papers for students.

Running head: Strategic management
Strategic management

Strategic management
Executive summary
External and internal environment play a fundamental role in each and every company to cope
up with rivalries internationally. The business units, outputs and revenue of Inghams enterprise
have been briefly explained in the task. The paper discusses that how the company analyzes and
identifies the micro and macro environment to capture the entire target audience. Along with
this, internal resources, capabilities, and core values also have been explained in the task. Further
detail of the task has been detailed below.
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Strategic management
Table of Contents
Executive summary.....................................................................................................................................2
Introduction.................................................................................................................................................4
Profile of Inghams enterprise.......................................................................................................................4
External analysis..........................................................................................................................................5
Pestel analysis.............................................................................................................................................6
Internal analysis of Inghams enterprise.......................................................................................................8
Resources, capabilities, core competencies and competitive benefits..........................................................9
Recommendations.....................................................................................................................................10
Conclusion.................................................................................................................................................11
References.................................................................................................................................................12
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Strategic management
Introduction
The main motive of this paper is to discuss about the business activities and operations of
Inghams enterprises limited that provides chicken products to the customers. The firm operates
and manages business operations as a poultry producer. Here is the brief discussion about the
revenue, profitability and business units of Ingham’s enterprise. A brief information about
external environment and internal organization have been explained in the task. The external and
internal analysis is done by the corporation to evaluate and analyze the challenges and issues of
the market. Along with this, the paper also provides brief information about resources,
capabilities, and core competencies of Inghams enterprise limited. The report outlines that how
the company takes competitive benefits by providing delicious products to the customers.
Profile of Inghams enterprise
Inghams enterprise is generally known as Inghams that is incorporated in 1918 in Australia. It is
Australian based corporation owned by TPG Capital and producer of fodder and poultry. It is one
of the biggest producers of turkey and chicken products in Australia. The firm has employed
approx 8,000 people in more than 100 locations in New Zealand and Australia (Inghams, 2018).
The organization is constantly improving and enhancing customer service and quality of the
products. Inghams is a biggest stockfeed producer who provides wide range of excellent quality
stockfeed products to the customers. Ingham is a poultry producer supplies to retail, retail and
foodservice customers. It processes 4 million birds every week. The company entered into
supply arrangements with the major retail restaurants in the 1960s. It enhanced it’s processing
capabilities to cater changing preference of the consumers towards enhanced poultry products. It
supplies a wide range of high-quality stock feed to the poultry, dairy,and industries. Ingham’s is
one of the largest poultry providers in Australia. The company supplies an inclusive range of
fresh and frozen chicken and turkey products to food service outlets. It also makes available
products like healthy chicken which have been approved by the schools. The company provides
free range chicken breast products. The business model of Ingham’s is vertically united and
includes 345 facilities and farms across Australia and New Zealand. Ingham’s has unmatched
service line of processing and distribution facilities across the country.
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Strategic management
Ingham’s is a foreign-owned public company originating revenue from production and sale of
chicken and turkey products. The company is listed on the ASX. The operations of Ingham
includes ten feedmills, breeder, broiler farms, hatcheries, seven primary processing plants, seven
additional processing plants and nine supply centres. The product range of the company includes:
 Chicken: Fresh whole chicken, fresh chicken breast bone, boneless chicken, chicken
breast tenders and so on.
 Turkey: Fresh turkey mince, fresh turkey wings, drumsticks and so on.
The company also produces stockfeed which is used internally and sells to the poultry and pig
industries. Ingham’s is having business units in Australia and New York. Ingham’s is a leading
poultry producer in New Zealand which reported 2.5% gain the earnings and trading also
improved in 2017 and the trend has continued in 2018. Ingham is having a leading market
position in Australia and is committed to the customer satisfaction (Nzherald.co.nz, 2017). The
business units of the company focus on the innovation and commitment to the food standards
and safety, employee’s health, and environment sustainability along with family welfare (Paulraj,
2011).
External analysis
The growth of Ingham’s depending on the external environment in the last 40 years. The five
force model is given below:
Bargaining power of suppliers: The service provided by the suppliers is quite satisfactory.
Ingham’s do not import chicken from any country. It is beneficial for the company as it gets a
discount from the domestic suppliers. The factors includes such as delivery on time, superior
quality of chicken helpthe company to win the trust of the customers (Zivanovic& Luck, 2016).
Competitor: There are various competitors for the company in the Australian market. The
competitors are Samex Australian meat company, Australian Meat Company, JBS Australia Pty
Limited and more. The company also faces competition from the companies outside Australia.
The companies have adopted the same product range and quality. In such a scenario, it has
become difficult to compete.
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Strategic management
The threat of new entrants: A good investment is required to take entry into the market. But there
are some companies like Ingham’s which are already established. In such a scenario, the threat of
new entrants is low in the Australia market. The switching cost is also low in the market (E.
Dobbs, 2014).
The threat of substitute products: It is not obligatory that customers will always prefer chicken as
a main source of food. The threat of substitute products is high for the company as people are
conscious about their health (Financial Review, 2017). So, they can like to consume vegetarian
food and can be selective for the non-veg.
Bargaining power of customers: The customers are well educated and like to attain all the
required information before getting delivery. The customers can communicate through helpline
and websites. The company prefers fixed pricing method. So, the bargaining power of the
customers is low.
Pestel analysis
Political factors: The political factors play important role in determining the factors which can
impact the long-term profitability of Ingham’s. There is political stability in Australia and the
company is supported by the local government. There are antitrust laws related to food (Bailey
&Inderberg, 2017).
Economic factors: The economy of Australia has experiencing uninterrupted economic growth.
Australia supports exports of agricultural products (Chuvieco, et. al. 2014). Ingham’s export to
New York and is provided support to expand operations in more parts of the country. The
inflation rate in the country was 1.9% in 2017 whereas the wage rate grew by 2.1%.
Social factors: Australia has a collection of diverse people living in the younger society
relatively. The younger generation is more health conscious and prefers to consume products of
Ingham’s. The company also makes available meals for every section of the society such as
children, youth and older. People are also highly educated and understand the value of healthy
food as a source of nutrition and protein.
Technological factors: The technology used by the Ingham’s helps to reduce costs and improve
quality. The company continuously makes efforts for the innovation. It benefits the organization
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Strategic management
as well as employees. Australia also makes efforts for the technological advancements of the
companies like Ingham’s. The technology used by the company in preserving and packaging of
chicken.
Environmental factors: Australia is one of the most biologically diverse countries. The country
has animals in large number which increases the scope of business for Ingham’s. There are
suitable conditions for the animals. The norms and the environmental standards of Australia
impact the profitability of Ingham’s (Poultry World, 2017).
Legal factors: The legal framework is capable enough to protect the intellectual rights of the
company. Ingham’s is affected by the laws like the anti-trust law in food, discrimination law,
employment law and consumer protection. The legal changes such as new systems and
procedures affect the cost of the company.
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Strategic management
Internal analysis of Inghams enterprise
An internal analysis is an examination of company’s competency, competitive viability and cost
position in the global market (Lin and Wu, 2014). Internal environmental analysis provides
effective and unique information about the organization’s strengths, weaknesses, opportunities
and threats. SWOT analysis is done by Inghams enterprise to overcome the competitors in the
international market. The SWOT analysis for Inghams enterprise has been discussed below.
Strengths Weaknesses
 The company provides high level of
customer satisfaction to the customers
across the world.
 Inghams enterprise has strong and
unique management team and further it
uses dynamic supply chain
management.
 The firm has strong and attractive free
cash flows that render resources in the
hand of the firm to expand and explore
into new projects.
 Well known and effective brand name
with dynamic reputation and service.
 The potential risk involved in core
revenue concentration.
 Bad acquisitions and cost structure
system that affects the growth and
progress of the company adversely.
 Work inefficiency is one of the vital
weaknesses for the firm.
Opportunities Threats
 Inghams enterprise has invested huge
amount on online platform. This
investment helps the company to open
new sales channel in the international
market.
 The purchasers may obtain better
monetary value and quality at Inghams
 Changing consumer buying behavior
from ample of online channels could be
a biggest threat to the firm.
 Shortage of skilled and talented labor
force in global market may also be a
biggest and serious threat for the
company (Helms and Nixon, 2010).
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Strategic management
with the help of win-win state of
affairs.
 The cost of transportation has been
decreased due to lower shipping costs
thus it helps in providing good
opportunity to boost and increase
profitability and outcomes.
 Furthermore, new and innovative
technology also provides an
opportunity to the firm for exploring
and expanding the business activities
widely (Fernfortuniversity, 2018).
 Low quality product is also a one of the
significant threats to the organization.
Resources, capabilities, core competencies and competitive benefits
Resources
Resources that help the company in doing their business effectively and efficiently are the best
breed of chicken those are available in market, they have a big farm where they keeps the
chicken and rise their own chicken, eggs and turkey products (Cameron and Quinn, 2011). They
have the most sophisticated machinery and the largest poultry processing plant of the country
(Pritchard and Tonts, 2011).
Capabilities
The fonder Walter Ingham had purchased a 42 acres area in 1918 and start a business with six
hens, and one cockerel (Inghams, 2018). In 2001, Inghams established a poultry processing plant
‘Murarrie’ that was a largest plant in the country (Barreto, 2010). In present, the business is
expanded to various part of world. The production and supply chain technologies provide
employment to approx. 1200 workers (Inghams, 2018). The company employed around 9000
people in more than 100 locations in New Zealand and Australia (Weerawardena and Mavondo,
2011).
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Strategic management
Core competencies
The core competencies of the Ingham enterprises is there products it includes chicken breast,
chicken mince, chicken thighs, chicken cuts all are available fresh. The also provide ready to
cook products which include chicken kebabs, schnitzels, roosted chicken, chicken meatballs,
chicken burger patties (Den Hertog, Van der Aa and De Jong, 2010). They also have freezer
section products for super markets that include roasting chicken and chicken kiev. There are
turkey products also available such as small roasts, wings, drumsticks, schnitzel, sausages and
turkey mince. Ready to eat line also available roasted and smoked and in frozen there is whole
turkey, kiev and buffe. The products of company are exported to Middle East, UK, Asia and
South Africa (Owen Raddats and Burton, 2014).
Competitive advantages
With the poultry products, the company also deals in non-poultry products. Inghams enterprises
are consider to be the largest Australian stock feed manufactures, the product line include
poultry, pigs and horses (Rothaermel, 2015). They also provide some unique products range for
breeding, racing and performance horses industries. These product ranges are the factors that are
providing competitive advantage to the company (Porter, 2011).
Recommendations
Some of the suggestions for the future strategic direction of Inghams enterprise limited has been
discussed below.
 The company should make various agreements with partners to capture entire market and
compete with rivalries in the international market.
 Although, the company is a global leader in poultry genetics but the company must focus
on the various commercial products such as Indian river,Arber Acres Plus and Ross.
 Inghams enterprise should focus on the various international strategies to expand its
milling, farming and processing capacity in Western Australia.
 The organization should keep an eye on the plans, policies and strategies of the
competitors to uplift profitability and revenue.
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Strategic management
 Product differentiation strategy shall be used by the company to differentiate its products
from the competitors.
 Furthermore, Inghams enterprise must focus on the leadership strategy and management
to attract the candidates and to eliminate resistance to change within the organization.
 Effective training and development coaching shall be provided by the firm to the workers
to motivate and encourage them towards the attainment of long term goals and objectives.
Conclusion
On the above mentioned limelight event, it is concluded that Inghams enterprise limited is one of
the biggest players in agribusiness food sector in Australia. In today’s era, the company provides
chicken and turkey products to the customers across the world. The above analysis shows that
how the company analyze and evaluate the external environment to identify risks and challenges
of the market. Pestle and SWOT analysis are done by the company to gain competitive benefits
in the global market. The analysis shows that resources, core capabilities and core values play a
vital role to meet the long term requirements and wants of the business. At the end, some
recommendations have been given for future growth and progress of the firm.
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Strategic management
References
Bailey, I. and Inderberg, T.H.J., 2017. Australia: domestic politics, diffusion and emissions
trading design as a technical and political project. In The Evolution of Carbon Markets (pp. 136-
156).Routledge.
Barreto, I., 2010. Dynamic capabilities: A review of past research and an agenda for the
future. Journal of management, 36(1), pp.256-280.
Cameron, K.S. and Quinn, R.E., 2011. Diagnosing and changing organizational culture: Based
on the competing values framework. John Wiley & Sons.
Chuvieco, E., Martínez, S., Román, M.V., Hantson, S. and Pettinari, M.L., 2014. Integration of
ecological and socio‐economic factors to assess global vulnerability to wildfire. Global Ecology
and Biogeography, 23(2), pp.245-258.
Den Hertog, P., Van der Aa, W. and De Jong, M.W., 2010. Capabilities for managing service
innovation: towards a conceptual framework. Journal of service Management, 21(4), pp.490-
514.
E. Dobbs, M., 2014. Guidelines for applying Porter's five forces framework: a set of industry
analysis templates. Competitiveness Review, 24(1), pp.32-45.
Fernfortuniversity.2018. Inghams group limited SWOT analysis/Matrix [Online]. Available from
http://fernfortuniversity.com/term-papers/swot/nyse/4845-inghams-group-limited.php [Accessed
as on 20th August 2018].
Financial Review, 2017. Feathers fly at chicken processor Ingham’s. [Online] Available at
https://www.afr.com/business/agriculture/feathers-fly-at-chicken-processor-inghams-20170905-
gyb6n4 [Accessed on 15 August, 2018].
Helms, M.M. and Nixon, J., 2010. Exploring SWOT analysis–where are we now? A review of
academic research from the last decade. Journal of strategy and management, 3(3), pp.215-251.
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