MGT5STR Marking Rubric

Answer:

Introduction 

The report helps in the entire analysis and identification of the business units of the Agribusiness food related sector which is based in Australia. The identification of different products and services which are being sold by the company is required to be analysed along with business revenue units. Furthermore, the external and internal environment of the respective company is required to be analysed and identified to provide recommendations for future strategic direction of the selected company named Riverina.  

Overview of Riverina

Riverina is one of the premier suppliers of the animal feed for the entire agriculture industry along with this, the company is the leading and major exporter of the protein and grain meals which is headquartered in Australia. The main commitment of the company is to supply the different kinds of grains and crops along with the various products to rural Australian states (Riverina 2018).

The company was founded in the year 1927 in Riverina District of Southern New South Wales and the mission of the company includes the serving of the needs of the community with efficient manufacturing and distribution of the compound feeds along with marketing. Furthermore, the other mission includes implementing and maintaining sound financial kind of policy which will assist in ensuring long term viability and this will provide sufficient amount of reserves to cope with fluctuations in market.

Business Units 

The business units of Riverina Company include the different kinds of products based on horse, poultry, speciality and grain related items which are being provided to the customers in the market. These are the different strategic business units of Riverina Company and they are mainly specialised in producing different kinds of grains along with exporting the same to the different regions in the rural areas of Australia as well.

Products and Services 

There are different kinds of products and services which are sold by the Riverina Agri based food sector which sells different kinds of commodities in the entire Australian market. There are different kinds of grains such as steam flaked and dressed grains which is inclusive of the wheat, barley, grain mixes along with Chick Peas and Lupins which are being sold by them in different rural parts of Australia (Armstrong et al. 2015).

 There is different farming done of the dairy, poultry and speciality items which are being sold by the company in an appropriate manner. There are different nutritionists in the company who aids in introducing different kinds of replacement for milk and there are feeds for animals and some unique kinds of animals as well which is inclusive of macro feed pellets, Rabbit grower pellets as well.

Business Revenue Units and Importance of Largest of these Revenue Units 

The business revenue units in the Riverina Company includes the grains, beef, poultry along with different kinds of speciality items which are being produced and exported by Riverina to different countries in an efficient manner (Kotler 2015).

The main and largest business revenue unit of Riverina Agricultural based company is Grains and Speciality Items which are being sold to the rural areas in Australia along with exporting the same in different other regions as well.

 The main importance of the largest revenue units of Riverina has aided the company in gaining huge profitability in the market and this assist in operating the business and this has provided success to the company as well. The production and export of grains at Riverina Company has assisted company in achieving profit and revenue helps in covering the costs as well.

External Environmental Analysis of Riverina Agriculture Based Company 

Proper external environment analysis is essential which is required to be performed in order to understand the different factors which affects and influences marketing along with relationships on which the company has worked hard to develop successfully. This will enable the company in becoming successful and make better decisions relating to the business excellently as well (Bresler and Lubbe 2014).

Political Factors plays a major role in determination of the various factors that can impact the long-term profitability of the respective company named Riverina in the certain country or market (Baker 2016). The Riverina Company mainly specializes in different kinds of grains and speciality products in more than dozens of rural areas in Australia and this is the main route through which the company exposes itself in different kinds of risks of the political system. Proper diversification of the risks is essential to be done of the political environment. Riverina needs to analyse the different political factors before investing in the certain market which includes:

• Proper analysis of political stability along with importance of grains, speciality or poultry items in the economy of the country (Chambers and Humble 2017). Furthermore, there is risk of the invasion in Australian economy and this is required to be analysed as well as the level of corruption in the regulations of the export of the grains and other speciality items in the respective sector.
• Furthermore, protection of intellectual property along with the different rate of taxes and incentives are required to be analysed effectively before entering into the different markets. The favoured trading patterns and pricing regulation systems is required to be analysed successfully to understand the product requirements.

Economic Factors play a major role in analysing and affecting the entire competitive advantage which can be gained by the company. Riverina can take into consideration the different kinds of micro environment factors such as the norms of the competition which can have huge impact on the competitive aspects of the firm (Chernev 2018). The other factors which is required to be analysed while conducting PESTEL analysis includes:

• The rate of unemployment is high in rural areas of Australia and this can be one of the major factors which is required to be taken into consideration in understanding the level of productivity in the country as well.
• The government intervention is high in different areas of Australia which can create huge risks for the Riverina Company to trade and export the grains and other items to rural areas. The stability of the host country currency is fluctuating and volatile in nature which can be disadvantageous for the company in the long run.
• The cost of labour and productivity in the Australia is high and this can be disadvantageous for the Riverina Company in a negative manner. the economic growth rate of the Australian economy is high and vital in nature which will be helpful in managing the different kinds of unemployment in rural areas of Australia as this will assist in gaining more competitive advantage.

Social Factors is the other main aspect which is required to be considered effectively in which this has been analysed that behaviour and culture which is being followed by the individuals in rural areas of Australia have to be analysed effectually (Di Benedetto and Lindgreen 2018). The proper knowledge on the purchasing power of the different customers along with designing the demographics and skill level of the population in rural areas of Australia.

• The environmental consciousness along with attitudes of the customers in such areas have to be identified which is essential in analysing the social impacts on the culture of the individuals (Keller and Kotler 2016).
• Furthermore, the level of the education of the different employees is required to be analysed successfully which is essential in measuring the social efficacy of the company in an appropriate manner.

Technological Factors are the other major aspect in which the advancement of the technology plays a major role in the agriculture company in the entire Australia. In the past few years, this has been noticed that the agricultural companies are changing in a fast pace and giving chance to different established kind of players in the market to cope with the changes. The different technological factors which are required to be taken into consideration by Riverina are as follows:

• The technological advancements will help Riverina in understanding the different areas in which the export of the goods and services are essential as this will assist them in making the products popular (Foxall 2014)
• The impact of the technology on the offerings of the product is essential in nature which will have entire impact of the value chain structure in Riverina Company effectively

Legal Factors are the other major factor which is required to be ascertained in an operative manner wherein the legal regulatory frameworks are robust to protect the intellectual property rights.

• Riverina needs to analyse the different legal factors which includes the data protection and health and safety laws of the employees are mandatory to be followed in Australian companies (Martín-de Castro 2015).
• The consumer protection acts are being followed actively which will benefit in managing the different kinds of activities effectually (Hutchinson et al. 2015).

Environmental Factors are the last factor which is essential to be followed by Riverina Company.

• The weather conditions are suitable for production of the different grains and other agricultural products (Miquel-Romero, Caplliure-Giner and Adame-Sánchez 2014).
• However, Riverina needs to understand the temperature which is required for them to farm different kinds of products namely poultry, grains and other speciality products.

Internal Environmental Analysis of Riverina Agriculture Based Company

The resource-based view is required to be conducted in order to determine the strategic resources with entire potential to deliver the comparative advantage to the firm. These resources can be exploited in an active manner to achieve sustainable competitive advantage in the entire market (Charter 2017).

Resources- The resources which are being used by Riverina includes both tangible and intangible resources which is inclusive of the raw materials, highly skilled labourers and the brand name is the main positive factor of Riverina (Litman 2018).

Capabilities- The highly skilled labourers of Riverina inclusive of creative capability in using the different machineries to grow premium quality grains and export the same in different areas which aids them in creating unique experience for the different customers in the entire market (Kleinaltenkamp, Plinke and Geiger 2016).  

Competitive Advantage- The value creation strategy which has been adopted by Riverina is the company sells and produces various kinds of supreme and organic kind of foods which are essential and plays a vital role in standing out in the crowd against the different competitors in the entire market.

VRIO Analysis of Riverina  

Recommendations 

Therefore, this can be recommended that proper planning is required as this will support in strengthening the execution of infrastructure by identifying such strategies which will provide high profits in the near future.

• Furthermore, the market and product expansion strategy can be adopted by Riverina as this will benefit them in being more competitive in nature in comparison to the other competitors in the market.
• The retention of the customers is required to be done by establishing a value proposition which will be beneficial for the company to gain huge profit in the near future.
• It has been seen that the largest revenue centre is grains and other speciality items which are required to be analysed in order to gain more revenues and this will benefit the company in becoming superior.
• Focus on the strengths as this will be accommodating in sustainable growth and keep an eye on the competitors in the market to understand their moves as to become superior than them.
• Lastly, identification of the ideal customers is essential for the growth strategy which will be essential to increase their growth and they will be gaining huge revenue and profit in the market as well.

Conclusion

Therefore, this can be concluded that both the internal and external environmental analysis has aided in analysing the factors which can affect the capability of the firm. Furthermore, the VRIO analysis assisted in analysing the competitive advantage of the firm along with gaining more competitive advantage in the entire market against the different competitors. PESTEL analysis assisted in understanding the different factors which can affect the growth of the firm and this makes the firm ready to face such challenges and take steps to become more competitive.

References

Armstrong, G., Kotler, P., Harker, M., and Brennan, R. 2015. Marketing: an introduction. Pearson Education.

Baker, M. J. 2016. What is marketing?. In The Marketing Book (pp. 25-42). Routledge.

Bresler, M., and Lubbe, I. 2014. Marketing management.

Chambers, I., and Humble, J. 2017. Plan for the planet: a business plan for a sustainable world. Routledge.

Charter, M. (Ed.). 2017. Greener marketing: A responsible approach to business. Routledge.

Chernev, A. (2018). Strategic marketing management. Cerebellum Press.

Di Benedetto, C. A., and Lindgreen, A. (2018). The emergence of Industrial Marketing Management as the leading academic journal in business-to-business marketing. Industrial Marketing Management, 69, 5-12.

Foxall, G. 2014. Strategic Marketing Management (RLE Marketing) (Vol. 3). Routledge.

Hutchinson, K., Donnell, L. V., Gilmore, A., and Reid, A. 2015. Loyalty card adoption in SME retailers: the impact upon marketing management. European Journal of Marketing, 49(3/4), 467-490.

Keller, K. L., and Kotler, P. 2016. Marketing management. Pearson. (Keller & Kotler, 2016)

Kleinaltenkamp, M., Plinke, W., and Geiger, I. 2016. Business Relationship Management and Marketing. Springer-Verlag Berlin An.

Kotler, P. 2015. Framework for marketing management. Pearson Education India.

Litman, T. 2018. Parking Management Strategies. In Parking Management Best Practices (pp. 86-225). Routledge.

Martín-de Castro, G. 2015. Knowledge management and innovation in knowledge-based and high-tech industrial markets: The role of openness and absorptive capacity. Industrial Marketing Management, 47, 143-146.

Miquel-Romero, M. J., Caplliure-Giner, E. M., and Adame-Sánchez, C. 2014. Relationship marketing management: Its importance in private label extension. Journal of Business Research, 67(5), 667-672.

Riverina. 2018. Welcome to Riverina - Riverina. [online] Available at: https://www.riverina.com.au/ [Accessed 22 Aug. 2018].