STRATEGIC MANAGEMENT ASSESSMENT TASK: 04 Sector: is a group of industries doing the same sort of thing, for the same sort of customers in the same sort of ways and same sort of outcomes and for the...

STRATEGIC MANAGEMENT
Table of Contents
1.0 Introduction    3
2.0 Overview of the Australian Agribusiness Sector    4
3.0 Identification of International Opportunities for Nestle    8
4.0 Discussion on Suitable International Strategies for Nestle    9
5.0 Discussion on Different Mode of Entry into International Market by Nestle    10
6.0 Diamond Model and Nestlé’s International Expansion    11
7.0 Recommendation    14
8.0 Conclusion    15
References    16
1.0 Introduction
The analysis of strategic management is one of the crucial areas of business studies as the concept of strategic management deals with several business aspects. The aspects of international opportunities for business are another success-critical for a firm. Generally, multi-national corporations (MNCs) tend to identify international opportunities and thereby strategize the same and decide on the appropriate mode of entry in the unknown market. The instant report deals with the analysis of a business that is intending to explore an international market.
The researcher presents the paper by introducing the sector which the chosen organisation belongs to. In the later part of the paper, the chosen company has been evaluated for its international expansion opportunities across the globe. While doing so, the researcher has performed a crucial analysis of both appropriate and inappropriate mode of entries in the chosen target market for the company.
2.0 Overview of the Australian Agribusiness Sector
It has been assessed that consumer interest in food has emerged consecutively in the past few decades. The marketers have found an increased rate of demands for organic products in the Australian market and domestic farmed produce, increasing public interest in ecological and sustainable practices (Hitt et al. 2016). Moreover, the businesses in the Australian agrarian market are re-evaluating their behaviours to make sure vigorous social, environmental and corporate governance (ESG) initiatives are implied efficiently and consistently. Furthermore, to this fresh business model determined by disruption, and the furnish side reaction persists to witness enhancing pressure. The agricultural organisations in the Australian market are seeking more creative ways to resolve these issues for a more dynamic and thriving agribusiness sector.
On the contrary, further information highlights that this sector has also traditionally affected by weather and price volatility. The aging farming and lack of experienced population are deteriorating the overall outlook of the sector where innovation and creativity are found on level zero. Marketers believe that the agribusiness in the specific market can gain a positive outlook for those firms that are striving to innovate their traditional methods (McLean & Holmes, 2019). Hence, it can be stated that the sector has a prospect to enhance its growth but certain restraints still exist where the old population are resisting changing their traditional methods of working. The sector requires innovation to initiate its long term sustenance.
Australia has been one of the most developed counties for which the economy \is partially driven by agriculture. The agricultural industries such as poultry, dairy, piggery, geometry, horticulture and other ancillary industries have been working strong for years with their considerable market share and user base. As per the report published by the Australian Government, there are almost 85,681 agricultural businesses in the country; the figure below shows the break-up of the same.
Figure 1: Australian Agriculture Business in 2015-16
(Source: Internet, 2019)
The above figure represents the data for 2016-17. For the same period, it has been observed that approximately 304,200 people were employed in the given sectors, contributing almost 3% of the national GDP for the year. In this context, it may also be noted that the total production value of the agricultural sector for the year was $60 billion. The figure below shows the export orientation of agricultural sectors in the year 2015-16 product-wise.
Figure 2: Australia’s Agricultural Export Commodities in 2015–16
(Source: "ABARES Snapshot of Australian Agriculture", 2019)
Interestingly, it may be noted that the total area under cultivation has been slightly in a reducing line for past few years in the country, and that may be one of the major impetus for the agribusinesses to think for international expansion to low-cost countries with competitive advantage facility and stable market growth. The figure herein shows the area of crop...