Strategic Management Analysis Report for Yates Company in Australia

This report provides a comprehensive strategic analysis of Yates, a well-established horticulture company operating in the Australian market. The analysis begins with an executive summary and background on Yates, highlighting its history and market position. It then delves into the external environment using a PESTEL analysis, examining political, economic, social, technological, environmental, and legal factors impacting Yates' operations. The report further investigates internal factors, including a SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. The core competencies of Yates are identified as high-quality products and a diverse product range. Finally, the report concludes with recommendations aimed at increasing revenue and brand awareness, offering insights into how Yates can maintain its competitive advantage and navigate the challenges of the Australian market. The report emphasizes the company's commitment to sustainability and its success in the horticulture industry.

Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
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Executive Summary
Yates was established in 1883 and was named after Arthur Yates, the founder. Since then the
company has been offering different assortment of horticulture based products and services in
the Australian Market. Furthermore, the company has been recognised in the as the best provider
of horticulture based products. Hence, the company has been able to sustain itself in the market
and gain profitability at the same time. The aim of the paper is to assess the external and internal
factors that affect the viability of operation of the company in Australia. Finally
recommendations have been presented that will be at increasing the revenue generated by the
company and to increase the awareness of the company in the Australia.

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Table of Contents
Introduction......................................................................................................................................3
Background......................................................................................................................................3
External environment.......................................................................................................................5
Internal factors.................................................................................................................................7
Recommendation and conclusion....................................................................................................9
REFERENCES..............................................................................................................................10

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Introduction
Yates has been established in the Australian market as company that specialises in the
supply of horticulture based products. The company was founded in 1883 and has developed
over the years by utilising their adept speciality in catering to the diverse needs of the Australians
in terms of offering them in term products and services that help the latter achieve excellence in
horticulture. The company has been recognised as the most trusted brand in horticulture supply
industry. Thus, the aim of the papers is to adjudge the internal and external conditions that
determine the viability of the operations of the company.
Background
The company has be named after the founder of the company, Arthur Yates. Arthur Yates
moved to New Zealand in 1879 and started a seed business with his brother. This event can be
seen as the beginning of journey of Yates (Yates.com.au, 2019). The latter moved to Sydney
with an aim of starting a business on his own. Yates started selling packaged seeds for gardeners
across Sydney that soon became popular across the whole country.
From the early days of operation of the company, they have taken pride in terms of
associating their products with the highest quality of possible which is deemed to be the reason
behind the success of the company. It has been almost 137 years since the company started its
operations (Yates.com.au, 2019). Still, the quality quotient is on the top of the list of priority of
the company. While the products offerings of the company have increased considerably, they
have been humble to stick to the root cause behind the success that the company has been
receiving form the Australian consumer community.

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The company has been able to incorporate a great deal of diversity while offering
products to the consumers. The company has excelled in terms of products diversification. The
company started its operation by offering just seeds to the market. Now, they have been able to
offer more than ten times of what they used to offer. The products offered by the company
includes products such as seeds for numerous variety of vegetation, pest control peripherals,
fertilizers, weed and disease control peripherals and books that helps the home gardeners with
solutions focused at helping them be better with gardening and solving the issues that they face
with gardening. The company also offers watering can, water sprayers and pots for the
gardeners. Apart from the products that are offered by the company, they also provide services
which are aimed at the people who have an affinity to gardening at home. The services offered
by the company include services including providing advice regarding the gardening practices,
lawn care and personalised catering to the needs of the diverse groups of customers across
various states of Australia.
The total revenue that was generated by the company rounded up to a figure of A$ 214.3
million. The valuation of Goodwill of the company increased by more than A$ 7 million and
thus the company was awarded with the title of the best gardening company of Australia
(Duluxgroup, 2019). The products of the company based on seeds were identified as the highest
grosser for the products of Yates. Seeds have been the prime sources of export revenue that is
generated by the company. Apart from the reason behind the quality products offered by the
company, the sustainability initiative taken up by the company in towards the protection of the
amount of water used and consumed for the purpose of gardening along with the initiative of
encouraging people across communities towards afforestation related practices. All the
aforementioned factors justify that the company have been operating in the Australian market

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favourably and thus, the study has been taken up in order to adjudge the competency of the
company in terms of gaining competitive advantage in the Australian.
External environment
Yates have been operating in the market of Australia for about 137 years. Since, the
beginning of operations of the company in Australia, they had to align themselves with the
external factors that affect the operations of the company. Furthermore, it has been recognised
that the external environment for the operations of a company in a particular industry is
constantly changing. Hence, current external environment for the operations of the company has
been analysed in the flowing section. By carrying out a PESTEL analysis, the external
environment for the operations of Yates in Australia can be adjudged. Following is the PESTEL
analysis of Australia;
Political factors: The country was established under the monarchy of Queen Victoria. The
country is segregated into two territories, The Australian capital territory and the Northern
Territory. There exists various labour policies in the country (Fowler, 2013). Even if the country
is considered to be stable, there exists high amount of hidden corruption in the country.
Furthermore, it can be said that sustainable business initiatives from the part of the companies is
favoured by the government with considerable amount of support from the part of the governing
bodies of the country.
Economic factors: Australia has been recognised as a strong economy. With the increase of the
indigenous industries in the country that are focussing on the aspects of environmental
sustainability, the goodwill of the companies has been one the verge of rise (Heagney et al.,
2015). Furthermore, increase in foreign exchanges in the country is appreciated and has been

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responsible for the increase in the GDP of the country. Furthermore, the propensity to companies
of in terms of generating increase amount of revenue as a result of the increase in the per capita
income of the individuals of the country. The economy of the country has bolstered and resulted
in increase of the amount of industries in the country. Moreover, the valuation of the currency of
the country is favourable. There exists transparency in the trade policies of the country which has
been recognised as the reason behind the increase in the amount of FDI in the country
(Aleksynska & Havrylchyk, 2013). The export and import policies of the company favour the
indigenous businesses and the economy of the country that are backed up by favourable
exchange rates. Hence, the country is considered favourable for the operations of businesses of
small, medium and multinational stature.
Social factors: Australia is a country that is considered to be multicultural. The level of tolerance
of the country is high and thus the aim of the company in terms of assimilating people of
different cultures is appreciated in the country. As a result, the nature of acceptance of the people
belonging to different economic and social backgrounds are accepted from the part of the
companies (Khalili, Harre & Morley, 2015). The assimilation of different cultures in the country
gives the country an opportunity to capitalise of the different array of skills that the people of the
different countries possess. Furthermore, the country has been making amends in terms of
education that has been responsible for increasing the flow of FDI towards the country.
Technological factors: There has been a high degree of technological innovation that has been
carried out in the country. The companies that have been able to increase their affiliation towards
innovation in terms of technology has been able to increase the amount of productivity that has
been carried out by in the industry.

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Environmental factors: There has been a high degree of sustainability initiatives that has been
carried out by different companies. The country as a whole has established its own sustainability
goals which has been responsible for the sustainable initiatives that have taken part from
different organisations in Australia. Organisations such as the Sydney Opera house have acted as
pioneers for environmental sustainability. Hence, the environmental factors have been able to
cater to the needs of the company in terms of carrying out the sustainable initiatives of the
company.
Legal factors: The range of acts that are available in the country that determine the activities of
the organisations in the country. Laws are presents for the protection of intellectual properties.
Furthermore, there are various laws that are aligned towards the achievement of the environment.
Furthermore, there are laws for the protection of labour in the country such as laws for adequate
working environment and laws for incorporating adequate pay of the employees (Bonoli, 2017).
Internal factors
There are a range of internal factors that affect the viability of operations of Yates. The
core competency of the company has been identified as the quality that is associated with the
service that the company offers. There are huge lines of products that are offered by the company
as a result of which they needs the backing of their stakeholders. The company offers its
products to a huge section of population across Australia. The resources that are at the disposal
of the company make them competent enough to cater to the needs of the diverse section of
population of the country. The assets of a company are its employees, however the fact has been
realised by the company by giving additional importance to the right employee who have right
alignment with the operations of the company. Following is the SWOT analysis of Yates that
will be helpful in adjudging the internal competency of the company;

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Strengths:
 Favourable goodwill
 High quality products
 Huge assortment of products
 Consistency in supply
 Favourable returns
 Various collaborative partnerships
Weaknesses:
 Incompetency in terms of marketing
 Decrease in the amount of revenue even if profits were made
Opportunities:
 Increasing affinity towards organic products
 Favourable regulations
 Generation of foreign exchange
 Increased attention to environmental sustainable initiatives
Threats:
 Growing number of similar companies in the industry
 Global warming
 Deficiency in supply.
It is evident from the internal analysis of the company that the high quality products that are
offered by the company along with the diversity in the products and the services that are offered

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by the company form the main ground of which the competitive advantage of the company.
Furthermore, the supply or raw materials of the company along with the sustainability initiatives
that are carried out by the company has been the reason behind the level of success that the
company has been able to carry out in the market or the industry that they are operating in.
Recommendation and conclusion
Yates has been recognised as the best supplier of horticulture based products in Australia.
They have been able to supply a wide variety of products catering to the needs of the people of
the gardeners across communities of Australia. Furthermore, there are numerous products and
services that are offered by the company that help the consumers to deal with the issues that are
concerned with personal gardening. The company has carried out sustainable initiative targeted
at the issue of saving water in the practice of gardening. The main aim of the company is to cater
to the diverse needs of the people of community who have an affinity towards organic produce
and gardening. The following can be recommended in order to increase the level of success that
has been faced by the company;
 Carrying out market research in the community that they operate in which will give the
company increase chances if understanding the perspective of the consumers of the
community.
 Increasing sales promotional activities, which will help the company in terms of
increasing the revenue that is generated by the company.
 Carrying out marketing activities will help the company in carrying out activities that will
helps the company increase the awareness of the company in terms of increasing the
awareness about the company and the initiatives carried out by the company (Huang &
Sarigöllü, 2014).

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REFERENCES
Aleksynska, M., & Havrylchyk, O. (2013). FDI from the south: The role of institutional distance
and natural resources. European Journal of Political Economy, 29, 38-53.
Bonoli, G. (2017). Labour market and social protection reforms in international perspective:
parallel or converging tracks?. Taylor & Francis.
Duluxgroup. (2019). DuluxGroup 2018 Annual Report. Retrieved from
https://duluxgroup2018.reportonline.com.au/
Fowler, A. (2013). Electoral and policy consequences of voter turnout: Evidence from
compulsory voting in Australia. Quarterly Journal of Political Science, 8(2), 159-182.
Heagney, E.C., Kovac, M., Fountain, J. and Conner, N., 2015. Socio‐economic benefits from
protected areas in southeastern Australia. Conservation biology, 29(6), pp.1647-1657.
Huang, R., & Sarigöllü, E. (2014). How brand awareness relates to market outcome, brand
equity, and the marketing mix. In Fashion Branding and Consumer Behaviors (pp. 113-
132). Springer, New York, NY.
Khalili, S., Harre, M., & Morley, P. (2015). A temporal framework of social resilience indicators
of communities to flood, case studies: Wagga wagga and Kempsey, NSW,
Australia. International Journal of Disaster Risk Reduction, 13, 248-254.
Yates.com.au. (2019). Retrieved from https://www.yates.com.au/about/history/