Answer To: Microsoft Word - Assessment 2 Description & rubric MGT5STR – Strategic Management Assessment 2:...
Sandeep answered on Jun 06 2021
STRATEGIC MANAGEMENT
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Executive summary
The current report is focused to identify and analyse the aspects of aquaculture agribusiness in the context of Huon Aquaculture Group Ltd. Australia. The business and its factors related to operations, products, and revenue units will be discussed in the report. To further understand the business, several business level strategies and models of competitive business reality has been assessed. To explore the strategic management factors in aquaculture one implementation and an evaluation strategy will be discussed. Thereafter, some recommendations against the challenges of the companies will be constructed to assist with future strategic direction of the selected business.
Table of Contents
Introduction 4
Background 4
Business level strategies 4
Aquaculture agribusiness strategies 5
Model of competitive reality 6
Strategies 7
Implementation plan: 7
Evaluation strategy: 8
Recommendations 9
Conclusion 9
References 10
Introduction
Strategic management can be describes as the process of planning, evaluating and implementing different strategies to improve the competitive advantages. Planning includes competitive strategies, different business models, etc. The evaluation is focused on the business environments and implementation develops the organisational framework, management and strategic methods. The current report focuses on different approaches of Strategic management in context of an Australian agribusiness of aquaculture, named Huon Aquaculture Group Ltd. and evaluates the strategies to find the plans of implementation and evaluation strategies. The report also tries to identify future strategic directions to make appropriate recommendations.
Background
Huon Aquaculture Group Ltd. is the largest and privately operated salmon harvester in Australia, established in 1986 and focused to grow the company to a completely vertically integrated salmon production company in Tasmania. The company is operated by different business units within its business process, such as production unit, finance, research and development, sales, marketing and human resource (Haward, 2016). The production unit operates all the key operations to harvest and process the products before marketing.
The products marketed by the company are, processed fresh salmon as fillets, portions and cutlets, fresh HOG salmon, cured and smoked portions of salmon and gourmet products like caviar.
The revenue units in Huon are the sales of fresh HOG salmons and a number of value added productsincluding fillets, cured products, etc. which earns about 20% of its total revenue, while the HOG salmon are accounted for 80% of the company’s revenue, therefore this unit can be concluded as the largest revenue unit. Being the highest quality product from the company and earning the highest revenue, HOG salmon is also the most important product for Huon.
Business level strategies
There are a number of business level strategies can be found in the context of strategic management, but in the current report, five key strategies will be discussed.
1. Cost leadership: Cost leadership refers to proposing the best possible price for products to the customers. It can be identified as the most vital part of a business, while selling the products in global consumer segments. This strategy intends the costs to produce the final product, marketing and transporting. The cost is also affected by supply and the budget of the business to maintain the production and processing units. In Huon, the key factors for this strategy are, the harvest volume, cost of production, revenue from operations and distribution.(Semuel, et.al, 2017)
2. Differentiation: in the strategy of differentiation, the company efforts to make some of their products uniquely to preserve a premium price for the customers who are loyal to the brand. It differentiates the products in a company to identify the features and...