Essay: Analysis Of GrainCorp In Agribusiness Food Sector Of Australia.

You are required to identify a corporation in the Agribusiness food related sector of Australia This report should include the following items Identify an Agribusiness operating in Australia. Identify its business units and products and services lines. Identify its business revenue units and discuss the importance of the largest of these revenue units.

The assignment will throw a light on analysis of the external and internal analysis of the Agri based Food sector company named GrainCorp that is grounded in Australia. Additionally, the goods and services which are being produced and traded by the business in different parts of country are essential to be identified along with the largest business revenue unit of the company which helps the company in gaining huge revenue in comparison to the other competitors in the Australian economy. After analysis of the internal along with external environment, proper and accurate strategic recommendations is compulsory to be provided for designing sustainable growth of the company in the competitive market.

GrainCorp Company is one of the public organizations which is being listed in Australian Security Exchange in Australia. The core business of the company is producing and storage of various kinds of grains, malt and oils along with different other related commodities. Furthermore, the respective GrainCorp Company provides logistics along with markets these products as well and the company was originated in the year 1917 in Australia (Graincorp.com.au, 2018). The different operations of GrainCorp Company have been extended into different Australian states by proper amalgamation of the handling operations of grains in the entire market as well.

There are different kinds of business units of GrainCorp Company which is inclusive of production of various kinds of grains, malt and oils in different states of Australia and this is the way through which the company gain competitive advantage in comparison to the other competitors. The respective company has their operations in Australia and in the entire global market as well. moreover, GrainCorp Company is one of the international performance driven malt supplier and the company have their operations in United States and Great Western Malting along with in Australia (Schaltegger, Burritt and Petersen 2017).

The various kinds of products and services which are being provided by GrainCorp Company to their target customers in the whole global market. This has been analysed that the company mainly specialises in malt, oils and different kinds of grains that are exported through the logistics of GrainCorp Company as well. Furthermore, this has been noticed that the company has strong supply chain management tool which assist them in providing all products at specific time frame and quality of the service is outstanding as well.

The units of business revenue of GrainCorp Company are the grains and malt products along with extraction of oil that are being shaped and sold to different markets in all over the world. Furthermore, this has been noticed that the company specialises in all the different products in the entire world (Hitt and Duane Ireland 2017).

Business Units

Moreover, the largest revenue business unit of GrainCorp Company is inclusive of grains and malt production and exporting the same to different parts of the world along with Australian states as well.

The major importance and significance of the largest business revenue units of GrainCorp Company is that this helps the organization in gaining huge profitability in the entire market. Furthermore, business revenue units of the company will be providing with various kinds of costs which are being incurred in the production of the products. This will be gained and adopted by selling the similar kinds of products in the market and gaining huge profit as the costs are low due to the production of the same products in the same company GrainCorp Company.

Proper PESTEL analysis is essential in nature which is required to be conducted in the case of GrainCorp Company as this will help in identifying the external environment influence on the firm’s effectiveness and efficiencies. This will allow the company named GrainCorp Company in taking strategic decisions in the near future for gaining more competitive advantage in comparison to the other firms.

Political Factors is one of the major factor which is required to be taken into consideration by GrainCorp Company as to operate in the Australian and global market. This has been seen that in Australian market, there are huge political pressures which can be disadvantageous for the GrainCorp Company and this will be affecting the growth of the firm in the comparison to the other countries as well. GrainCorp Company needs to analyse the following aspects:

• There is huge level of corruption in the Australian agricultural market which can create problems in GrainCorp Company (Jarzabkowski and Kaplan 2017)
• Furthermore, the trade regulations and tariffs related to food and agricultural sector is strict in nature and this can affect the growth of GrainCorp Company in a negative manner as well.
• The pricing regulations are effective in Australian agricultural sector which can be beneficial for the company and this will enable them to grow and expand their business and gain more target customers

Economic Factors is the other concern in which this is inclusive of the rate of inflation, interest rates along with rate of foreign exchange are taken into consideration. GrainCorp Company needs to understand the various types of government interventions that are essential to be adopted which will help them in becoming more competitive. GrainCorp Company can utilize the economic factors of the country Australia after analysing the following aspects which are as follows:

• The exchange rate and stability in Australian economy keeps on fluctuating and this can create negative impact on the company to grow their business
• There is huge government intervention in the free market which can be of negative influence on the company GrainCorp as well (Frynas and Mellahi 2015).
• The rate of inflation and interest is moderate and this will be beneficial for GrainCorp Company as the company can expand their business operations in various parts of Australia and other countries as well.

Social Factors is the other aspect in which the culture of the society of Australia is required to be taken into consideration as this will help in impacting growth of the firm positively or negatively (Lasserre 2017). In case of GrainCorp Company, this can be analysed that the demographic and skill level of population in Australia is huge and this will help the company in expanding their growth and this will be beneficial for the company to continue their operations (Hill, Jones and Schilling 2014). Moreover, the power and education structure of Australia is high and the employees are highly skilled which will prove to be beneficial in nature in gaining more competitive advantage.

• Demographics and skills of the Australian economy is high and this will be highly beneficial for the agricultural business of GrainCorp Company
• The social conventions of Australia are huge and this will be again beneficial for the company in a positive manner

Products and Services

Technological Factors play a major role in the business of GrainCorp Company as in the agricultural business, the technological advancements play a major role in improving the overall effectiveness of the firm. GrainCorp Company needs to analyse their technological advancements in the offerings of the products to the customers along with the rate of the technological diffusion.

• GrainCorp Company needs to understand the different other competitors and their technological invention in the market as this will provide them overview on technological advancements (Helfat and Martin 2015)
• Furthermore, the company GrainCorp needs to understand the technological advancements on the product offerings which will impact the overall value chain activities effectively.

Environmental Factors play a major role as well in GrainCorp Company business in which there are different kinds of environmental protection laws which are being followed in the Australian market. This has been seen and analysed that in Australia and in other markets wherein the company wants to expand, there can be difference in climate and weather and the agricultural activities may not suit the weather conditions.

• GrainCorp Company needs to evaluate the environmental standards along with laws which helps in regulating the environmental pollution (Meyer, Neck and Meeks 2017)
• GrainCorp Company needs to analyse the water and air regulations in the agricultural sector as well (Meyer, Neck and Meeks 2017).

Legal Factors is the last aspect in which there are huge legal frameworks which are different in different countries. The health and safety laws are mandatory in Australian economy which is required to be followed by them and this will help them in managing their activities accordingly.

• GrainCorp Company needs to analyse the discrimination law in the firm which is required to be followed in the different countries (Rothaermel 2015)
• The copyrights along with patents is required to be analysed by GrainCorp Company which will help in managing their agricultural operations in Australia

The VRIO and resource-based view is required to be identified and analysed effectively which will help the company GrainCorp Company in understanding their core competencies along with competency related to the resources to be more competitive in comparison to the other competitors in the market.

Resources which are being utilized by GrainCorp Company is inclusive of both intangible and tangible resources which includes the different kinds of raw materials along with machinery, highly skilled labourers and providing proper and appropriate services to the customers in the entire market (Bromiley et al. 2015).

Capabilities which are being used by GrainCorp Company is inclusive of growing and producing premium quality grains, malt and oils and provide the same in the entire world inclusive of Australia. Furthermore, this has been seen and analysed that the company GrainCorp provides logistics and supply chain management services across the world which is one of the competitive capability of the company (Galliers and Leidner 2014).

Competitive Advantage is wherein GrainCorp Company uses the value co-creation model and strategy to sell products and this will help GrainCorp Company in gaining competitive advantage in the entire market effectively.

Therefore, from the above internal and external environmental analysis, this can be recommended that the GrainCorp Company has to strengthen their infrastructure execution in such a manner which will help the company in becoming more competitive than the rivalries in the entire market. In order to gain huge revenues and high profit in the competitive market, GrainCorp Company needs to ascertain the following:

• Product and market expansion technique is required to be adopted by GrainCorp Company which will benefit the company in becoming more competitive in nature
• Furthermore, retention of the valuable customers in the market is essential in nature to be done by GrainCorp Company as this will increase their market share and gain more popularity in the future
• The business revenue units are required to be more expanded by GrainCorp Company as this will assist them in managing the company in reducing the risk factors effectively
• Proper focus is required to be provided on different strengths which will be essential and responsible for the growth of the firm and the competitors will be left behind in the market
• Lastly, the target customers are required to be adopted and they should be the main assets for the entire growth of the company efficiently

Conclusion 

Therefore, this can be concluded that internal and external environmental analysis has tried in aiding the various factors which will assist in gaining capability of the firm. The VRIO analysis is essential in nature to provide competitive advantage of the firm against the different other competitors in the entire market. Furthermore, PESTEL analysis will identify various kinds of factors which will provide the firm with different factors for the growth of the firm appropriately.

References

Bromiley, P., McShane, M., Nair, A. and Rustambekov, E., 2015. Enterprise risk management: Review, critique, and research directions. Long range planning, 48(4), pp.265-276.

Frynas, J.G. and Mellahi, K., 2015. Global strategic management. Oxford University Press, USA.

Galliers, R.D. and Leidner, D.E., 2014. Strategic information management: challenges and strategies in managing information systems. Routledge.

Graincorp.com.au. (2018). About GrainCorp. [online] Available at: https://www.graincorp.com.au/about-graincorp/index.htm [Accessed 22 Aug. 2018].

Helfat, C.E. and Martin, J.A., 2015. Dynamic managerial capabilities: Review and assessment of managerial impact on strategic change. Journal of Management, 41(5), pp.1281-1312.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic management research. The Blackwell handbook of entrepreneurship, pp.45-63.

Jarzabkowski, P. and Kaplan, S., 2015. Strategy tools?in?use: A framework for understanding “technologies of rationality” in practice. Strategic Management Journal, 36(4), pp.537-558.

Lasserre, P., 2017. Global strategic management. Macmillan International Higher Education.

Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship?strategic management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.

Rothaermel, F.T., 2015. Strategic management. McGraw-Hill Education.

Schaltegger, S., Burritt, R. and Petersen, H., 2017. An introduction to corporate environmental management: Striving for sustainability. Routledge.