I have attached the Assessment 3 question.The company I had chosen for my assessment 1 was Lindsay Australia Limited. I have also attached my previous assessment 1 for reference.

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Microsoft Word - Document1 MGT5STR – Strategic Management Assessment 3: Individual Research Assignment Submission on Turnitin via LMS Due Date Word Count Weight SILOs Assessed Sunday, 23rd June 2019 before 11.59 PM AEST 2,000 40% 1, 2, 3 Description Marks Allocated This assessment focuses on your understanding and appreciation of Strategy Implementation. You are required to use the corporation selected for the assessment 1. This report should include the following items:  Discussion of Australian Horticulture focused Agribusiness sector. 25%  Identify international opportunities for your chosen Horticulture focused Agribusiness.  Discuss different international strategies suitable for your chosen Horticulture Agribusiness. 25%  Discuss the most appropriate and inappropriate mode of entry to the international market for your chosen agribusiness. 25%  Make recommendations for the future strategic direction of the selected Horticulture Agribusiness in the chosen international market. 15%  Write the report in English with structured sentences that conform to academic writing guidelines.  Follow a report structure with an executive summary, table of contents and conclusion.  Use Harvard referencing style in text and in the list of references. A minimum of eight (8) journal articles and textbook references are required to show basic research. 10% Microsoft Word - 19215795.docx MGT5STR – Strategic Management Assessment 1 Lindsay Australia Limited Submitted by Mathew Kilithattil Abraham 19215795 2 EXECUTIVE SUMMARY The report is indented to identify strategic management practices followed in a horticulture-based agribusiness organization in Australia. Lindsay Australia Limited is chosen for the study which is well-known for its exports and imports of horticulture products. The further information about the firm’s business revenue units, their offered products and services to the market and are studied. The report highlights external factors of the firm such as political, social, economic, environmental, legal and technological factors affecting the firm. Furthermore, internal factors such as resources, core competencies, capabilities and its competitive advantage are also studied. Recommendations on future improvements of the firm are discussed on the basis of application of various theoretical strategic management practices followed in an organization. 3 TABLE OF CONTENTS 1. INTRODUCTION 4 2. AIM 4 3. LINSAY AUSTRALIA LIMITED 4 3.1 Business Units and Products and Service Lines 5 3.2 Business Revenue Units 5 3.3 Importance of the Largest Revenue Units 7 3.4. Pestel Analysis 8 3.5 Internal Environmental Analysis 10 4. CONCLUSION 12 5. RECOMMENDATIONS 12 6. REFERENCES 13 4 1. INTRODUCTION Horticulture is ranked as the second largest industry categorized under agriculture and is worth more than $ 9 billion. The horticulture organizations in Australia are known for their sustainable premium safe food products (Australian Government, 2016). The products range includes fruits, flowers, nets, vegetables nursery and turf products. The primary factors that influence the market growth are that it’s labor intensive and seasonal oriented. The climatic conditions possess the highest threat to horticultural regions (Webb, Darbyshire & Goodwin, 2014) The major product groups along with their gross value of production in the year 2013-2014 are listed below. • Fruit and nuts: $3 187 million • Vegetables: $3 510 million • Nursery, cut flowers and cultivated turf: $1 247 million (Australian Government, 2016) Australia has both export and import for its products in both domestic and international market, however Australia is primarily a domestic oriented market. 2. AIM The aim of the report if to study a Horticulture Oriented Agribusiness in Australia and analyze it’s both internal and external environments and offer strategic recommendations that could guide the business in achieving its goal. 3. LINSAY AUSTRALIA LIMITED Lindsay Australia Limited is a publically owned company listed on the ASX as LAU. The firm provides services in transport, logistics and rural supply to horticultural sectors in Australia. It achieves its operations through transport and rural segments. The transport segment does cartage of general and refrigerated products whereas rural segment sells and distributes agricultural supply 5 products. The company also offers warehousing and specialist services to rural suppliers who are based on horticultural industries (Intelligent Investor.,2015). 3.1 Business Units and Products and Service Lines The company derive its revenue from freight services of refrigerated products, rural supply merchandising and import and export horticultural products. The company operates its functions in South Australia, Victoria and New South Wales and the head office is located at Acadia Ridge, Queensland. The firm functions an integrated role of transportation, logistics and rural supply of its products across three bands: • Lindsay Rural: deals with selling of packaged supplies for fertilizers, agricultural products, irrigation equipments and chemicals. • Lindsay Transport - General, dry and refrigerated transporting. • Lindsay Fresh Logistics - Storage, disinfection, maturing, and import and export services of fruit and vegetables (IBISWORLD, 2018) 3.2 Business Revenue Units Lindsay Australia Limited generate revenue from sales and other revenue sources. Figure 1 Revenue from freight cartage and sales 6 Figure 2 Revenue from other sources As from the above data (Lindsay Limited, 2018), the firms revenue is showing a positive slope due to its successful implementing its strategies. The activities under freight cartage and product sales are: 1. Lindsay Transport 2. Lindsay Rural 3. Lindsay Fresh Logistics 4. Lindsay Connect Figure 3 Activities under freight cartage and product sales 7 3.3 Importance of the Largest Revenue Units From detailed analysis of the annual report of Lindsay Australia Limited, the major revenue unit is identified as from sales revenue contributing to $360,479 thousand in 2018. Out of which, revenue from freight cartage contribute the maximum share of $ 250, 555 thousand. The activities under freight cartage includes all operations involving supply and delivery of services across the supply chain starting from the grower to the market. The firm transports refrigerated products to its markets. Lindsay rural transports horticultural products and cardboard packages from its suppliers in Queensland to markets of Victoria, New South Wales and South Australia to form the first merchandise company in Australia. 3.4 External Environmental Factors The three principle parts identified in literature (Hitt, Ireland, Hoskisson, 2016) under external environment are: a) General environmental influencing factors affecting both overall industry and its competitive industries. b) Industry environment factors such as competitive advantage and the ability to achieve profit. c) Competitor environment where the firm understand and evaluates each of its competitor’s objectives, expectations and tactics. External environmental factors are the hardest to understand due to the complexities within. The success of a firm relies on the extend of understanding these external factors affecting the environment of the firm. 8 3.4. Pestel Analysis Pestel Analysis stands for Political, Economic, Social, Technological, Environmental and Legal Operating environment analysis of general environment which affects the firm as well as the overall market. Political Factors: the impact of political factors on profitability are quite diverse due to changes in political regimes and decisions taken by the government. In the case of multi-nationals, Lindsay Australia Limited may get affected due to political factors that exist in countries that do businesswith the firm. The major features that affect political factors are: • Level of political stability in recent years • The laws which the country enforces on the business • High levels of taxation • Chance of risk of military invasion from hostile countriles • Wages that could affect the profit of the firm. (Murphy, 2018) Economic Factors: these factors include all those which pertain to economy of the nation that the firm operates. These include changes in inflation rates, foreign exchange rates, interest rates and current stage of economic cycle. These factors on their impact can affect profit of a company. The economic factors on Lindsay Limited may be identified as: • Economic system in the sector that is at present operational. • Rate of GDP growth of the nation • Interest rate of the country affects people on their willingness to borrow and invest. • The level of unemployment in the country which leads to greater supply of jobs when people are willing to work at a lower wage. (Murphy, 2018) 9 Social Factors: these factors include culture, belief, attitudes and values the population hold living as a community. These not only affect operational aspects of the firm but also on their marketing aspects as well. The social factors that could affect Lindsay Australia Limited are: • The demographic of population regarding to gender, age. • The distribution of class among population is also important • The gap between educational background of marketers and target market may affect the target market to be drawn in effectively. • Lindsay Australia Limited should also be aware of health standards, environmental protection policies importance prevailing in the industry. (Murphy, 2018) Technological Factors: technology plays an important role in price structure and competitive advantage. So, it becomes so important to consistently innovate new ideas for competitive advantages. The technological factors affecting Lindsay Australia Limited are as follows: • The advancements in technical aspects in the industry for profit as well as competitive advantage • The level of advancement would improve what the product offers • Impact of technology on costs which leads to the resulting profit margin. (Murphy, 2018) Environmental Factors: are the factors which the company foresee to avoid boycotts due to lack of environmental conscientiousness. The environmental factors affecting Lindsay Australia Limited are as follows: • Current weather conditions that affect the firm in its transportation • Climatic change which might eventually cause product wastage • The amount of waste incurred can attract the eyes of law to impose severe laws affecting the firm profit. (Murphy, 2018) 10 Legal Factors: the legal