MGT5STR Report: Strategic Actions and Implications for Webster Limited

This report provides a detailed analysis of the strategic actions and implications of Webster Limited, a leading agribusiness company in Australia. It begins with an executive summary outlining the scope and objectives, followed by an introduction that highlights the changing landscape of the agribusiness industry and the importance of strategic management. The report then introduces Webster Limited, detailing its history and current operations in walnuts, agriculture, and water management. The core of the report focuses on Michael Porter's generic strategies, including cost leadership, differentiation, and focus strategies, and how Webster Limited applies these strategies to gain a competitive advantage. The report also examines the integrated cost leadership/differentiation strategy. Finally, the report analyzes Webster Limited's business strategy using Porter's five forces model, addressing threats and opportunities within the industry. The conclusion summarizes the key findings and emphasizes the importance of strategic management for Webster Limited's continued success in the agribusiness sector. The report is a comprehensive analysis of the strategic choices and their implications for the company's future.

RUNNING HEAD: Strategic Actions And Strategic Implications in Agribusiness Industries
Webster Limited, Australia
Strategic Actions And Strategy Formulation

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Strategic Actions And Strategic Implications in Agribusiness Industries
Executive summary
This report is the detailed study of the strategies used by the Webster limited in Australia. To
identify the strategic management in the agribusiness suitability of different strategies are
discussed with the help of Michael Porter’s Generic strategic management model. This model
deeply evaluates the factors responsible and suitable for the settlement of the competitive
advantage in the market. To identify the strategies used by Webster limited this report will
discuss the porter’s five forces model to identify the threats of the market for the selection of
appropriate strategy targeting to set the competitive advantage for the industry. This
assignment will make the effective identification of the factors responsible for the selection
of the strategies in an industry and the factors affecting the growth and development of
Webster limited agribusiness industry.

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Strategic Actions And Strategic Implications in Agribusiness Industries
Contents
Introduction................................................................................................................................3
Webster limited, Australia.........................................................................................................3
Porter’s generic strategy.............................................................................................................4
Cost leadership strategy.........................................................................................................4
Differentiation strategy..........................................................................................................5
Focus strategy.........................................................................................................................6
Integrated cost leadership/differentiation strategy.................................................................7
Webster business strategy..........................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................10

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Strategic Actions And Strategic Implications in Agribusiness Industries
Introduction
In the recent scenario of agribusiness industry a lot of changes are introduced in worldwide,
these changes are the results of the globalization, environmental regulations and the new
changes in the economic values with the increased shifting societies. To meet the changes
agribusiness industries need to make the effective strategic management with the focus on the
competitive advantages and the interesting stakeholder’s satisfaction. A strategic decision of
agribusiness industry is based on the internal cost identification, challenges faced by the
production unit, competitor’s perspective and the challenges emerging in the future. Michael
porter’s generic strategies modal focus the all aspect related to the agribusiness industries
(WEBTER 2019).
Webster limited, Australia
Leading agribusiness industry over 180 years including an amusing, rich and diverse history
Webster limited is still operating its diverse range of activities in Australia. The basic
platform or foundation of the Webster limited is the connection with the land and
agribusiness in Australia. In the present time it operates in three businesses mainly.
1. Walnuts- accounting approximately 90% of the walnut crop of Australia with the
benefits of southern hemisphere’s largest walnut producer.
2. Agriculture- Webster limited is one of the largest irrigated farming producers holding
around 20,000 hectares prime fertile land that purely focus the irrigation of corn ,
cotton, livestock and other mueslis.
3. Water- Webster limited holds over 150,000 mega liters portfolio that are diversified to
store the water to operate the agribusiness and other operations to maximize the
production and to increase the competitive advantage (Butler 2018).

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Strategic Actions And Strategic Implications in Agribusiness Industries
Porter’s generic strategy
This model was introduced in 1981 by Michael Porter to describe the proper understanding
about the competitive advantage with the selection of appropriate strategy. This model of is
based on the focus of three strategies; first is Cost leadership, next is Differentiation and last
one is Focus. Generic strategies choice is different in various manner based on the kind and
level of the competitive advantage.
Source- (Bertozzi, Ali & Gul
2017)
Webster limited is dealing the
business activities in
diversified sectors with the
strong strategic
management and implementation
of the strong strategies to make
the more successful
operations in the competitive market. To influence the role of strategies formulation and
implementation use of Porter’s generic strategy is appropriate.
Cost leadership strategy
This strategy is based on two steps that are followed to increase the competition level in the
competitive market. This strategy based on targeting the sales and increasing the product
where it becomes difficult to chase the competitions and with the aim to increase the return
form the sales in form of profit. Basic processes Webster limited can use to apply the cost
leadership theory are;

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Strategic Actions And Strategic Implications in Agribusiness Industries
 Reducing costs to increase profits
 Charging low share price to increase the market value and sales.
The main reason of using this strategy in Webster Limited is to domain and fame the market
with the dominating leadership with the pricing and managing the value chain management
of the industry.
Reducing the market cost of the product with the target on the middle class customers
purchase the product and result in the increment in the sale of the products because middle
class area covers a large market segment. Middle class of the customer pays high value to the
product by promoting the brand with mouth marketing this led the successful identification
and stability of the product in the mind of the customers, and this also results the challenges
high for the competitors to reduce the cost with the effective inventory management (Zollo,
Minoja & Coda 2018).
Webster Limited with the focus on the easy access of the products and the services. To set the
challenges for the competitors and earning the customer satisfaction worth more than the
monetary return for the development of the brand is the main reason behind the selection of
the cost leadership strategy of the Webster Limited.
Differentiation strategy
Other generic strategy used by the Webster Limited is generic strategy that allows it to deal
with the recognition of the different aspect of the product that makes the product more
satisfactory and demanding in the consumers. Webster Limited and use the differentiation in
the basis of the product quality it offers with the durability and feasibility of the products.
Before the application of the differentiation strategy in the market Webster Limited need to
 Effective research, proper growth and changes in the market.

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Strategic Actions And Strategic Implications in Agribusiness Industries
 Targeting to deliver the high-quality product setting the level of the quality
challenging.
 Differentiation needs the effective leading to the product marketing effectively to
make the customers linked with the differentiation.
Adaptation of the differentiation is beneficial for the Webster Limited to expand the area of
the customer with the changed interest on the unique quality of the products. For example
after the evaluation of the customers demand of the different quality in the reasonable price
can set the opportunities to the Webster Limited to use the mixture of the cost and
differentiation strategy. This strategy help the Webster Limited to make a different identity in
the market breaking the previous image, this new innovation attract the stakeholders to invest
with the new strategies and enhance the monetary as well as valuable branding position in the
market in return. For example company plans to offer the more quality supply of the walnuts
in the reasonable price give the increment in the market stakeholder and led the company on
the competitive advantages (Bertozzi, Ali & Gul 2017).
Focus strategy
Third part of the generic strategy is the focus strategy that is mist suitable for the process that
target the particular area or the segment after conducting the research in the detailed internal
and external market environment. This strategy is used to target the narrow zone of the
market to serve the niche marketing to make the competitive advantage in the industry.
Webster Limited can use the focus strategy on two base of the previous strategy, weather on
the cost or on the differentiation. Market researchers need to identify the area that is suitable
for the niche marketing. This strategy is based on the narrow area of the market that is found
suitable to lead the product towards the profit and challenging the competitive advantage for
the competitors (Zollo, Minoja & Coda 2018).

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Strategic Actions And Strategic Implications in Agribusiness Industries
 Webster Limited selecting the focus strategy based on the cost leadership is favorable
in terms of serving the customers on the lowest price with the high satisfactory return.
 Focus strategy that is based on the target of the customer demand to make the
satisfaction in the customer demand. Customer satisfaction focus strategy focuses the
best steps that match the need and demand in the present market segment.
 Focusing the product quality Webster Limited can bring the change in the product
packing, quality, taste and designing to satisfy the targeted customers.
Integrated cost leadership/differentiation strategy
The mix combination of the cost and differentiation in the market strategy is popularly known
as the integrated cost leadership differentiation theory. Webster Limited dealing the
diversified business operations at global level. Industry is majorly operating in the
agriculture, livestock, walnuts and water management. Demand in the customer for the netter
quality is identified by the effective researchers and then the section of the best price for the
better quality is decided on the basis of the cost integrated differentiation strategy. Suitability
of the integrated cost differentiation strategy for the Webster limited is based on many
aspects likewise;
 This strategy directly deals with the targeted customers and the demand raised by
them. This gives an idea to the researchers and leaders to decide whether change the
quality or to make the effective steps in the product differentiation.
 Major objective of Webster limited is to meet the desired target of the market
segment in the quality time delivery of the better quality products. This strategy
allows the managers to deal the time delivery of the satisfying product and increase
the level of the return form the investment.
 Webster limited can achieve the cost leadership/differentiation strategy
simultaneously because it is beneficial in many ways like it gives the broad level of

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Strategic Actions And Strategic Implications in Agribusiness Industries
the differentiation in the product quality with the low price serving the customers
demand to make the high return and competitive advantage (WEBTER 2019).
Webster business strategy
Porter’s five force analysis model of the identification of the Webster limited business
strategy based in the following frameworks;
 Threat of new entrants
 Bargaining power of the industrial suppliers
 Bargaining power of buyers
 Threat of the substitutes
 Threat of the existing competitors
Webster limited with the management of the above challenges deals the innovation of the
differentiation in the product and the services to attract the buyers in the reasonable price
ensuring the level of satisfaction. Investing the research and leadership to make effective
supply chain relationship with the buyers and suppliers to meet the demand and supply the
products in time and proper delivery with the quality improvement of the product to create
the challenge in the market for the new and existing competitors focus on using the broad
level cost leadership and differentiation strategy in the management (Zollo, Minoja & Coda
2018).
Conclusion
This assignment is the detailed analysis of various internal strategies of the Webster limited
operating in the agribusiness sector in Australia. Webster limited is leading from the 1831 in

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Strategic Actions And Strategic Implications in Agribusiness Industries
agribusiness and making effective steps using the cost leadership and differentiation strategy
in the management to meet the demand of the product quality and service in limited time and
in the lowest price that set the high standard of the challenges for the competitors and the new
entering substitutes of the services. This report concludes the major threat of the Webster
limited is from the existing rivals and continues rising demand of the loyal customers for
better quality and effective price. These all challenges are possible to deal only with the
effective strategic management in the industry with the Michael porter’s generic strategic
model.

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Strategic Actions And Strategic Implications in Agribusiness Industries
References
Bertozzi, F, Ali, MC & Gul, FA 2017, 'Porter’s five generic strategies; A case study from the
hospitality industry', International Journal For Research In Mechanical & Civil Engineering
(ISSN: 2208-2727), vol 3, no. 2, pp. 09-23.
Butler, A 2018, Webster Limited Generic and Intensive Growth Strategies, viewed 14
September 2019, <https://www.essay48.com/677-Webster-Limited-Porters-Generic-
Strategies>.
Reort, A 2019, Webster Annual repoort 2018, viewed 15 September 2019,
<https://static1.squarespace.com/static/5770b8d4b8a79bc1087f2cfc/t/
5c767530ee6eb02ae9404f8d/1551267161162/2018+Annual+Report.pdf>.
WEBTER 2019, Webster Limited, viewed 16 September 2019,
<http://www.websterltd.com.au/>.
Zollo, M, Minoja, M & Coda, V 2018, 'Toward an integrated theory of strategy', Strategic
Management Journal, vol 39, no. 6, pp. 1753-1778.