Strategic Management Report: California Nut Industry Theft Analysis

This report delves into the strategic management challenges faced by the California nut industry, primarily focusing on the pervasive issue of theft throughout the supply chain. It begins with an introduction to strategic management, emphasizing its role in organizational development and performance enhancement. The report then provides background information on the sophisticated theft operations targeting the nut industry, detailing the methods used by criminal organizations, such as hijacking trucks and falsifying shipping documents. A PESTEL analysis examines the political, economic, social, technological, environmental, and legal factors influencing the industry, while a five forces analysis assesses industry competition, the threat of new entrants, the risk of substitutes, and the bargaining power of suppliers and buyers. The report identifies five associations involved in preventing theft, such as the Western Agricultural Processors Association, and concludes with recommendations for improving security measures and mitigating the financial losses caused by theft. The report underscores the significance of strategic management in safeguarding the industry's assets and ensuring its sustainability in a competitive environment.

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Contents
Introduction.................................................................................................................................................3
Background to the situation.........................................................................................................................3
PESTEL analysis.........................................................................................................................................4
Identification of five associations................................................................................................................8
Conclusion...................................................................................................................................................9
Recommendations.......................................................................................................................................9
References.................................................................................................................................................10

Strategic Management
Introduction
Identifying and deciding the tactics and plans which are also required to be associated and
adopted by the business entity so as to bring enhancement and developments and the same are
required to be essentially associated and implemented within the organizational structure and
culture. The managers and the other superior authorities are held responsible for adoption and
execution of these strategies (Adewuyi and Oyejide, 2012). The main aim behind
implementation of these tactics and strategies is done bringing enhancement in the productivity
and performance level within the business organization. The concept has also been considered as
the mechanism of scheduling, managing, monitoring, analyzing the operations within the
organizational structure. The below described concept has been considered as an integral
approach for the entity and is also relevant and liable in effectively attaining the desired goals
and objectives of the organization. A position over the rivals will be attained and the business
corporation will be able to sustain easily in this competitive environment. The term strategic
management can also be described as the decisions or the practices which are executed by the
superiors and seniors so as to monitor the outcomes and results of the performance level of the
business entity (Aigboduwa and Oisamoje, 2013). The below presented analysis has been
summarized on the on the investigation which has been made on the occurrences of the thefts in
Californian nut producing industry. The nut industry in California has been facing wide-scale,
highly sophisticated theft at all stages of the supply chain. The below presented report has been
presented on the recommendations, investigation for the presented situation.
Background to the situation
The below present summary has been made concentrated on the occurrences of
sophisticated theft and the issues faced by the nut manufacturing industry in California. On the
basis of the conducted investigation it has been analyzed that the nut industry in California has
been facing the issues of theft throughout all the stages in the system of supply chain
management (Anomohanran, 2012). The crime rings in California’s has been making the
successful attempts over the prosperous agricultural industry and the occurrences are increasing
day by day, these crime rings are engaged in stealing heavy goods carriers which are expected to
be found fully loaded of high priced nuts. The business entities which are considered as the

Strategic Management
victims and the governing authorities are initiating hard efforts so as to minimize or break the
happenings and the occurrences of which are costing millions to the concerned firms. Hi-tech
tactics and contemporary strategies are initiated and also required to be implemented for hacking
the trucking entities for stealing identity (Anthony, 2012). False shipping papers and posing
themselves as legitimate truckers were the practices which were used by the hackers for driving
loads and tons of nuts such as almonds walnuts, or pistachios valued at $150,000, and some
worth $500,000 each. According to the investigation done on the case it was observed that after
the failure of the delivery of the nuts shipment to the expected destination the hackers used to
deliver the loads of the nuts to some other destinations in Europe or Asia and where the truck
hackers take the shipment and sell the same to the a high amount in black market. As per the
survey conducted on this scenario it has been observed that On the basis of the conducted
research it has been analyzed that the business entities in the nuts industry suffered a loss of
nearly $7.6m for the all four years (Aron, 2013).
“It’s made my life miserable,” is the statement which has been stated by Crosswell, the general
manager of Caro nut Co (Ciarreta and Nasirov, 2012). The business corporation was found to be
victimized six times in the past time and suffered from a loss of $1.2m. In this scenario the theft
stole cashews that were roasted, salted and packaged in Fresno and which were imported from
the regions of Vietnam and Africa. California has been noted to be at the top in the production of
nuts such as almonds, walnuts and pistachios in comparison to any other regions and this has
been analyzed on the basis of the research conducted by US Department of Agriculture. The theft
valued and suffered a loss of $9.3bn in 2014 and the value of Almonds alone was $5.9bn. Dan
Brayant, analysis has been made that the main reason behind this theft is the high value of nuts
which has been found garbing the interest of the criminal rings (Ghandi and Lin, 2014). Dan
Brayant is a supervisory special agent appointed for the violent and the organized crimes
programs of FBI Sacramento office. The thieves are making the advantage of weaknesses of the
cargo shipping industry and the same were reaping huge profits.
PESTEL analysis
The concept of PESTEL analysis has been considered as the business model which is very much
significant and held responsible for analyzing the external components impacting the business

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environment. In case of the above presented scenario the PEST analysis has been concentrated
on California:
Political: The political components are very much liable in stimulating the business environment.
This factor has been observed to be playing an empirical role in influencing the industrial sector
and also the nuts industry (Hiatt, Grandy and Lee, 2015). This factor comprises of the
components such as political stability, norms and other political situations and regulations which
are found associated with the business. These political components are held liable for influencing
the industry. According to the survey which has been executed and analyzed that Californian
region has a very strong democratic and political environment and also an efficiency and
effectiveness has been found in the laws and regulations which are levied by the governing
authorities.
Economic: Economic factor is the variable of the external environment which comprises of the
components such as interest rates, economic stability etc. The analysis has been made focused
and is conducted over the variables as these elements are very much stimulating and are also
develops a link between the economic conditions of the region and the entity, in which the entity
executing the business activities. The economy of California region has a GDP of over $16.760
trillion (Hu and Xu, 2013). This data presents and determines that the region is one of the biggest
economies all over the world. One of the biggest and developed region is the reason which is has
offered California and the industrial sector beneficial on various grounds.
Social: One of the biggest issue which has been faced by the region is of aging population and
which will rise and develop a conflict of shortage of labor for future (. This can also be
considered as one of the biggest problem for the industrial sector and the entities as human
resource is one of the integral assets.
Technology: Technology and innovations are considered as the two cornerstones of California
and moreover, it has also been observed that California has been found to be on top in adopting
and implementing the technological up-gradations (Killing, 2012).
Five Forces Analysis

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California produces the greater part of the nuts in The United States. This state is becoming the
greater part of the nation's walnuts, almonds and pistachios. The business is confronting issues of
robbery as more than 35 truckloads of walnuts, almonds and pistachios, worth $10 million have
missed in California (Keil, 2014). Hence lucrative nut business of California is persistently an
objective of refined crime rings. Because of this, the industry is confronting misfortunes.
This area of report incorporates the business investigation of nut part by utilizing Porter's five
powers demonstrate. Five powers for this industry are expressed underneath;
Industry rivalry
This factor in porters five powers characterizes the force of rivalry among existing organizations
in the business. In any case, the nut business in United States incorporates some vast
organizations, yet it is ordinarily comprised of a few smaller associations. In this commodity
industry, real players are, for example, Blue Diamond Growers California, Paramount Farms Los
Angeles and Primex (Ovadia, 2012). The rivalry in the business is high and associations are
achieving benefits and incomes by sending out the nut items to different nations. Aside from
these actualities, development and income age are influenced by the issues of burglary in
California and some different conditions of United States. In California, the nut robbery is
record-breaking high that prompted the misfortunes of $4.6 million frame 31 cases in most
recent three years (Keil, 2014).
Threat of new entrants
In nut industry, the cost of entrance incorporates purchasing a suitable land and it likewise needs
nut harvests and trees, machines and required working capital. The issues to new contestants are
direct as the settled expenses can be exceptionally lower in this industry. The business has some
vast players, similar to; Blue Diamond California, which may pose competitive pressure on new
participant. Nut generation is such an industry, to the point that may confront dangers of
disappointment and vulnerabilities, for instance; burglary in Californian nuts (Pinkse and Van
den Buuse, 2012).
Risk of substitutes

Strategic Management
The nut business incorporates diverse sorts of nuts, similar to; walnuts, almonds and pistachios
for which there are no substitutes as they are utilized as a particular nourishment fixing. Along
these lines, by breaking down the Californian nut industry (Rahim and Liwan, 2012), it can be
expressed there are no identifiable substitutes for items, which use nuts as their fixing. In the
end, the danger of substitute in the business is week.
Bargaining power of suppliers
In Californian nut industry, there is high rivalry among providers and the associations are
receiving expanded dispersion system and channels. There are different players in the
Californian nut segment. Provider control in connection to nut maker industry is direct.
Bargaining power of buyers
The bartering energy of purchasers is high when clients buy the nut items in extensive volume.
In the express, the clients buy the nuts from ranches, retailers, agriculturist markets and so forth.
The dealing energy of clients is high in this industry as they can purchase items from various
gatherings, similar to; sustenance preparing firms, retailers and wholesalers.
Resources and Capabilities
Resources of the organization are the benefits, which are possessed by the association and it
needs to manage a few issues (Ruqaishi and Bashir, 2013). Extraordinary compared to other
cases of this is extensive scale burglary of nuts in California. There are a few associations with
assets and capacities, which help the association in keeping the burglary of nuts in Californian
industry. The related assets and abilities are expressed beneath;
State and local law requirement
State and local law requirement can assume a key part in keeping the robbery in nut industry as
the influenced associations can contact to the state and local law implementation offices. These
organizations are cooperating on the burglary examinations (Ruqaishi and Bashir, 2013). For
instance, in the year 2013, Tulare law authorization in the state could capture 4 individuals by
speaking with the Los Angeles port power. Thusly, the influenced association can defeat the

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misfortunes of nut robbery. Freight shipping elements can build up a cooperation with the law
authorization firms to go for avoidance of robbery misfortunes.
Concentrate on security concern
Alongside set of accepted rules and law implementation, the association ought to have capacities
to address the security concerns. It will make a few strides for giving security, such as; keeping
the records of truck drivers, checking licenses of drivers, using unique finger impression
scanners, biometric establishment in truckers and so on. Considering these worries, the
association will be competent to secure the supply of nuts from one place to other place.
Identification of five associations
The underneath specified are the five associations which are occupied with averting robbery in
the business:
Western Agricultural Processors Association: The business element has been predominantly
engaged the business operations and basic consistence ranges, for example, air contamination,
sustenance wellbeing and security administrations. The business substance has been offering the
staff to California Cotton Ginners and Growers Associations. Furthermore, by along these lines
the substance has been making utilization of assets and capacities.
California Farm Bureau: This is a non-benefit association built up for the most part for
agriculturists and farmers which involves Farm Bureaus from almost every region in California.
The business affiliation is into enhancing the nature of the prosperity in California. The
affiliation make utilization of support, continuous effort and monetary administrations and items
for those engaged with in horticultural creation.
American Pistachio Growers: The business element is an exchange affiliation which has been
making utilization of the human asset and the contemporary innovation as the assets and limits.
Blue jewel: The business enterprise is an authority in Almond has built up a set of accepted rules
and furthermore a few standards are forced in order to keep the robbery done of nuts.

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California Highway Patrol: This is an affiliation which is basically occupied with making
utilization of mechanical reconnaissance devices and furthermore there are a portion of the
standards and controls which help in avoidance of the burglary.
Conclusion
In the spotlight of the above executed investigation it has been inferred that California is
the district who has been considered as the biggest maker of different sorts of nuts. The
enterprises who are occupied with the generation of nuts are confronting an issue of robberies of
truck-heaps of nuts. The above exhibited examination has been made centered around the PEST
investigation which has been led on California in order to break down the outside condition of
the district. Besides, the report likewise comprises of the five powers which bolster the
investigation made on the modern segment. The home is the ID of the five associations which
are engaged with keeping from the robbery and furthermore a few suggestions are made in order
to keep the organizations associated with this area.
Recommendations
The business elements should make some more speculations over the idea of wellbeing and
security of the nuts while they are delivered.
Another methods for transportations and mediums ought to be utilized in order to limit the
occurrence of the burglaries.

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