Strategic Management Report: Corporate Strategy Analysis of PFA

This report analyzes the strategic management of Perfection Fresh Australia, a family-owned Australian fresh produce business. It evaluates the company's corporate strategy, identifying key issues in resource allocation, organizational design, and strategic tradeoffs. The report highlights challenges such as increased customer complaints, missed marketing opportunities, and deficiencies in organizational structure. It examines the impact of these issues on brand image, employee motivation, and overall business performance. Furthermore, the report explores the company's strategic decisions, including the implementation of a corporate strategy, and provides recommendations for improvements, such as better resource allocation, improved organizational design, and enhanced risk management. The report concludes by emphasizing the importance of adapting to the competitive food and beverage industry to maintain sustainability and achieve long-term success.

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Name of the Student
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Author Note

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Executive Summary
Implementation of changes with the change in time is very important for business to survive
in the contemporary world of advanced technology and demanding customers. Every
businesses, be it small or large, implement or use strategy for improving a particular aspect of
department of the company as strategy has a significant influence in every age and in every
field of an industry. This paper has elaborate on evaluating the implementation of corporate
strategy in the company named- Perfection Fresh Australia. The main objective of this report
was to evaluate and analyze these major strategic decisions of Perfection Fresh Australia, one
of the well-known food products providing family owned company of Australia that
wholesales and distributes a huge variety of vegetables and fruits like apples, asparagus,
pineapple, mango, grapes, exotics, herbs etc. It operates through a wide number of joint
ventures and farms including Perfection Fresh Exports, Agri-Fresh, Parwan Valley
Mushrooms Pty Ltd. However, like any other companies, Perfection Fresh Australia also has
undertaken several strategic actions within the company to ensure long term success and
growth. However, it facing issues in terms of organizational design and resource allocation
that are further hampering the brand image of the firm and are bringing in several customer
complaints. This paper has shed light on the strategic actions taken by the company while
evaluating the suitability of the current corporate strategy that it is using. Certain
recommendations are also made in this report on the issues developed because of the current
strategy of the firm.

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Table of Contents
Company Background Information............................................................................................3
Identify and Evaluate Strategy...................................................................................................3
Key issues on the basis of Strategy Choice Analysis.................................................................6
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

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Company Background Information
It is to mention that Perfection Fresh is considered to be the largest Australian family-
owned fresh produce business in today’s date. The company was founded in the year 1978
and it continues to be a family style farming business that is both operated and owned by
John Simonetta and Michael Simonetta along with the families of Victor Smorgon Group
(Underconsideration.com, 2019). The firm searches for the best vegetables and fruits present
all around the world and brings them to their farms where the farm them local and sold to the
supermarkets, the different food service provides, restaurants, independent retailers and the
export markets. Also, it operates through a wide number of joint ventures and farms including
Perfection Fresh Exports, Agri-Fresh, Parwan Valley Mushrooms Pty Ltd. The company
employ about 500 people currently and earlier, it has operated a B2B (Business-to-Business)
brand. However, at present, it also provides berries, cabbages, herbs, mushrooms, lettuce,
cucumbers and capsicums etc. The company only sources its products and services to the
Australia wide markets.
Identify and Evaluate Strategy
It has been identified that the organization of Perfection Fresh Australia is the
corporate strategy, which they are following for over 40 years, that is, from the day of the
inception of the organization. The management of the organization has decided unanimously
to follow this strategy through their overall business operations. It can be stated that the
corporate strategy follows a portfolio approach to the decisions taken in the context of the
strategies followed by this business entity. The management decided to follow this strategy
by implementing it into their business operations in order to differentiate their business
operations related to production as well as selling of fresh flavors of delicacies made from
fresh fruits and vegetables. As the organization possess more than 500 employees, which is
another reason for which the management of the organization decided to stick with this
strategy. This was actually helping to produce fresh flavors of fruits and vegetables. The main
tasks that are followed or performed under this strategy are allocation of resources, portfolio
management, design of the organization and strategic tradeoffs. The main reason for selection
of this strategy is the long term vision of the organization and the values that the organization
are following and wants to follow for future purposes in the market place of Australia. This
strategy helps the organization to follow perfection in each and every department and

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segment of the business operated by this family-owned business. They have identified that
the passion as well as the organization values which need to be followed in order to maintain
the sustainability of the business which is operated within the region of Australia would best
suit with this corporate strategy. The innovation which helps to differentiate the business
operations performed by the management of Perfection Fresh Australia best suits with the
implementation of corporate strategy. Brand new taste mixed with the freshness of the
vegetables and fruits are the innovative way that is followed by this business entity. Another
most important factor which helped the organization to select and follow this business
strategy is being ethical in the overall business operations (He & Balmer, 2013).
But is has been recently found that the organization is facing some issues with this
strategy. As is has been stated earlier in this report that the corporate strategy followed by tge
organization of Perfection Fresh Australia includes allocation of resources, portfolio
management, design of the organization and strategic tradeoffs. The management of the
organization is facing issues like allocation of resources ethically and efficiently within the
different segments of the business operations run by the organization. The major
competencies are identified by the leaders of the organization, but as the competition are
increasing on daily basis and are widely known that food and beverage industry which falls
under the hospitality industry is one of the toughest business sectors in terms of the presence
of the competition within the global market place. It has been found that the resources are not
getting properly allocated within the divisions of the organization. This is reducing the value
which is one of the assets of the organization possessed in the market place. As the business
is a family-owned business, so it has been found that the owners do not possess much market
experience which is required to run an organization (Wang, 2014). There are also mistakes in
selecting and identifying right people for right place, which is hampering the productivity of
the organization as a whole. The revenue earned by the company is also not getting properly
allocated across all the departments within the organizational design, and the department
which is getting resources is not getting to perform up to the mark, and this has been
identified when the customers started to complaint against the innovative and fresh delicacies
tat are swerves to them. The external opportunities are also getting missed as there is no
experienced candidate who possesses a healthy experience in the field of research and
marketing. If there was someone from this field, them the capital or budget could have been
allocated for this section and the management could have been capitalized on the marketing

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opportunities, which ultimately increased the amount of revenue earning for the company
(Jones, Hillier & Comfort, 2016).
The organizational design is also not properly structured for Perfection Fresh
Australia. As it has been discussed in the last paragraph that there is no one from the market
research team as well as any research and development team, this is hampering the chances of
identification of the marketing opportunities as well as the issues related to the quality of the
fruits and vegetables manufactured or prepared and served to the customers as different types
of delicacies like desserts, drinks, jukes, pasta, pizza and many more. Customer complaints
has increased in huge numbers, as there is no one to identify the quality related issues in the
manufacturing of vegetables along with the preparation of foods and beverages. No one is
there is to take reports from the employees on daily basis regarding the quality of the
manufacturing as well as the production process. Reporting structure is an integral part in
any kind of businesses that are performed around the world. And this structure is missing
from the organizational operations in the market place of Australia. Commitments are also
not getting priorities for rewarding the performances of the employees of Perfection Fresh
Australia and payment of incentives are also not getting properly done on time, which is de-
motivating the employees of the organization.
The management of Perfection Fresh Australia has also faced issues in product
diversification, as the qualities on the wide range of delicacies served by the employees are
having quality issues, and are getting refused by the customers. This is hampering the brand
image of the organization as well as the value and passion that are recognized as the priced
assets possessed by the management of the organization. This is also reducing the capturing
of the fresh marketing opportunities that could have been invested and utilized in the growth
of the business operations of the organization (Aragon-Correa, Martin-Tapia & de la Torre-
Ruiz, 2015). The overall brand portfolio is not getting identified and utilized and hampering
the growth of the organization. All these are hampering the overall performance level of the
employees and serving the foods and beverages to the customers are not getting done in an
attractive or innovative way. After sales service are also not getting done in the right manner.
The operations are getting in a mess due to all these reasons and revenue generation is getting
hampered, which is slowing down the growth of the organization as a whole, which is
resulting in delay in the payment of wages and salaries to the employees along with the
payments to other parties (Lee, Hallak & Sardeshmukh, 2016).

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Strategic tradeoffs or balancing the tradeoffs between return and risk across all the
operations of the business are getting tougher for the management of Perfection Fresh
Australia. Proper risk management is absent within the organizational structure of the
management of the organization. As there is no one to research the opportunities that are
available in the market places, which could have reduced the risk factor of the business
operation that the organization are currently facing. It is important to be fully aware about the
risks that the management is facing, and all these are resulting in shifting to a new or fresh
strategy which is required for the organization as soon as possible. The overall business
operations of the organization are getting deteriorated day by day. The milestones set by the
owners of the organization are not getting met within the time frame set at the beginning of
each of the annual meeting held at the end of each financial year. As it has been discussed
that the competition are increasing on daily basis and are widely known that food and
beverage industry which falls under the hospitality industry is one of the toughest business
sectors in terms of the presence of the competition within the global market place, hampering
in the brand image of the organization are will reduce the chance of the firm to lose the
competitive edge along with all the values of the organization, which helped the owners to
enjoy the competitive advantage over other employees in the market place of Australia.
Sustainability need to regained and followed by the management of the organization (Amini
& Bienstock, 2014).
Key issues on the basis of Strategy Choice Analysis
From the above analysis it is to mention the company is facing issues of
resource allocation both ethically and efficiently within diverse segments of the business
operations that are operated by it. Resources are also not allocated in proper manner within
the different segments of the organization. It is further decreasing the value and the products
and service of the company, which ultimately is resulting in poor brand image (Demil et al.,
2015). Already, the customer complaints have increased and also, there is no one for
identifying the quality in terms of the issues in the process of manufacturing of the vegetables
as well as the process of preparation of other food and beverages supplies of the company
(Fitzgerald et al. 2014). With the same, there are also certain mistakes found in the selection
and identification of right people for the right place and this is further hampering the
organization’s productivity. Furthermore, the organizational design is not structured in proper
manner for “Perfection Fresh Australia” and this is influencing the opportunities of

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identification of the marketing opportunities and the issues related to the product and service
quality of the company. The overall brand portfolio is not getting identified and utilized and
hampering the growth of the organization. All these are hampering the overall performance
level of the employees and serving the foods and beverages to the customers are not getting
done in an attractive or innovative way. After sales service are also not getting done in the
right manner. The operations are getting in a mess due to all these reasons and revenue
generation is getting hampered, which is slowing down the growth of the organization as a
whole, which is resulting in delay in the payment of wages and salaries to the employees
along with the payments to other parties (Adamides, 2015).
Recommendations
Following are the two alternative strategic initiatives for Perfection Fresh Australia:
The company needs to diversify the skill responsibilities and sets. It would always pay
for having the resources who have been well-trained in a huge range of skills and also, the
ones who are customers for being places into different tasks. It is very important for the part
of the company to recognize these secondary skill sets that the staffs of the company might
have and must work towards nurturing them. It is also to mention that when facing with the
issue of reallocation needs that are likely to be exceeding the potential of the company; this
strategy would be very effective to solve the sudden issues.
Furthermore, the company can also subscribe to an automated and easy resource
request process. One of the most influencing and likely problems associated with the process
of resource allocation is often the process of convolution that one need to stick to during
having the resources that are placed in the job. It is a very delicate channel that is independent
of the spreadsheets and this changes everything. Furthermore, requesting the automated
resource allows the managers to specify their sets of skills along with the degree of
competency as well as the years of experience that they are seeking for with different project
timelines.
Conclusion
Hence, from the above analysis it is to conclude that despite of being the largest
Australian family-owned fresh produce business, Perfection Fresh has several significant
issues that is required to be addressed by the management on an urgent basis. Customer

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complaints have increased in huge numbers, as there is no one to identify the quality related
issues in the manufacturing of the products and services of the company. It is also facing
issues in terms of resource allocation within diverse segments of the business operations that
are operated by it. Resources are also not allocated in proper manner within the different
segments of the organization. With the same, the organizational design is also not properly
structured for Perfection Fresh Australia. In order to resolve this issues within the
organization and to ensure its long term success and sustainability in the Australian market,
alternative actions are recommended that the company can make use of for bringing change
in the current scenario.

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References
Adamides, E. D. (2015). Linking operations strategy to the corporate strategy process: a
practice perspective. Business Process Management Journal, 21(2), 267-287.
Amini, M., & Bienstock, C. C. (2014). Corporate sustainability: an integrative definition and
framework to evaluate corporate practice and guide academic research. Journal of
Cleaner Production, 76, 12-19.
Aragon-Correa, J. A., Martin-Tapia, I., & de la Torre-Ruiz, J. (2015). Sustainability issues
and hospitality and tourism firms’ strategies: Analytical review and future
directions. International Journal of Contemporary Hospitality Management, 27(3),
498-522.
Demil, B., Lecocq, X., Ricart, J. E., &Zott, C. (2015). Introduction to the SEJ special issue on
business models: business models within the domain of strategic
entrepreneurship. Strategic Entrepreneurship Journal, 9(1), 1-11.
He, H. W., & Balmer, J. M. (2013). A grounded theory of the corporate identity and
corporate strategy dynamic: A corporate marketing perspective. European Journal of
Marketing, 47(3/4), 401-430.
Jones, P., Hillier, D., & Comfort, D. (2016). Sustainability in the hospitality industry: Some
personal reflections on corporate challenges and research agendas. International
Journal of Contemporary Hospitality Management, 28(1), 36-67.
Lee, C., Hallak, R., & Sardeshmukh, S. R. (2016). Drivers of success in independent
restaurants: A study of the Australian restaurant sector. Journal of Hospitality and
Tourism Management, 29, 99-111.
Underconsideration.com. (2019). The Producers. [online] Available at:
https://www.underconsideration.com/brandnew/archives/new_logo_and_identity_for_
perfection_fresh_by_interbrand.php [Accessed 1 Oct. 2019].
Wang, C. J. (2014). Do ethical and sustainable practices matter? Effects of corporate
citizenship on business performance in the hospitality industry. International Journal
of Contemporary Hospitality Management, 26(6), 930-947.

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