Business Environment Assignment Addressing Role Of Agriculture In Bridestowe
Task: This assessment focuses on your understanding and appreciation of Strategic Management Inputs. 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.
- Analyse the Agribusiness’ external environment.
- Discuss its political, economic, social, technological, environmental and legal operating environment.
- Analyse the Agribusiness’ internal organisation.
- Discuss its resources, capabilities, core competencies and competitive advantages.
- Make recommendations for the future strategic direction of the selected Agribusiness.
The term agribusiness is related to those particular industries which deal with the agricultural procurement and such products yield by farming along with the required services needed to good farming, thereafter the distribution as well. This business environment assignment is focused to discuss about role of agribusiness in Australian economy. The aim of the business environment assignment is to analyze the impact of internal and external business environment of agribusiness industry on the organizational performance of a corporation. This business environment assignment is going to elaborate about the recommendations for the future strategic directions. In this business environment assignment, an agribusiness company namely Bridestowe is chosen to discuss about the agribusiness nature of the organization.
Overview of the organization
In the year 1921, C K Denny came to Tasmania along with his family with a dream to cultivate lavender in his own firm and gradually started the company Bridestowe. After twenty five years of initial starting of his business, C K Denny had shifted his company’s headquarter to Nabowla. It is where Bridestowe is located now a day. This company is famous for the cultivation of lavender. Over the time, Bridestowe has become an obvious choice for lavender lovers those who want to experience firm tour (Bridestowe, 2019). It is considered as the best day out for lavender lovers since ninety years across Australia and its country side as well. Bridestowe offers free visit to the tourists but this company also have another business wings apart from farming. This company expands its business through online marketing across the globe. Bridestowe has become the eye catcher for its wonderful lavender farming to tourists and travelers.
Role of Agribusiness in Australian economy
Agribusiness generally stands for the activity related to agricultural factors which are performed by various firms or research development organization of the government. On the other hand, it also has been found that the agribusiness generally deals with the agriculture mostly to produce various kinds of business environment assignment friendly products or services (Mohsin, 2015). On the other hand it also has been found that agriculture holds various kind of significant linkage with the other segments belonging to the economy. Therefore, the strong production of agricultural products can easily knock the door of economic development of a country. It has been found that the agricultural sector of Australia provides 3% GDP to the Australian economy which reflects a potential number of benefits for the country and it results in $60 billion in the year of 2016 to 2017 (Larder et al. 2018).
On the other hand, it also has been found that the Australian agricultural firms export approximately 77 percent of their total production which impacts positively in the economic development. However, it also has been found that within the Australian region there are total 140, 704 firms exist which produce agricultural product. Therefore, it can be understood that the agribusiness is too much significant for the economic development of Australia. Likewise it also can be said that it can impact positively on the organizational development of Bridestowe. On the other hand, it has been found that the organization mainly focused on the production of natural and fresh lavender oil (Bridestowe, 2019). This product also can be recognized as one of the luxury agricultural products which can be exported to the other business countries. Therefore, the organization can earn a potential amount of revenue which affects positively on the economic development Australia based upon the agribusiness sector.
The internal factors can be analysed by utilizing a specific framework called SWOT analysis. The SWOT analysis generally helps in understanding the internal strength and weakness of an organization. On the other hand, it also helps to measure the possible opportunity and threats for future in respect of any organization (Chang et al. 2016). In this section the internal analysis of Bridestowe helps in understanding the possible opportunity and threats of the company in respect of its strength and weakness based on the agribusiness culture of Australia. The SWOT analysis of the organization is like
Bridestowe offers free visits to the tourists, that is how marketing of the company get escalated to certain extend.
Bridestowe is located at the countryside of Australia. It is quite difficult for many tourist as such many customer to reach there whenever they want to according to their choice.
As the company, Bridestowe access online platform to provide service to its consumer, it can have numerous clients all over the world.
The location of the company can be considered as a threat because of it’s location, The company is located at the country side of Australia.
Apart from this, Bridstowe is not selling core agriculture product which can be consumed by day to day basis. That is why certain limitations of uses Bridestowe product can be detected.
Table 1: SWOT Analysis
(Source: Bridestowe, 2019)
Effects of external factors in agribusiness
The external factors of any business environment mainly based upon the six significant factors which can be analyze by utilizing a specific external environment analysis framework called PESTLE. The pestle analysis helps to understand about the possible impact of external factors over the business development of any particular organization (Purves et al. 2015). However, this section generally helps to understand about the external business environment assignment impact of Australian agribusiness over the business development or risk of Bridestowe. The PESTLE analysis mainly includes
- Political factor: It has been found that the Australian community mainly prefers the increase of agricultural lands as the asset for future. Moreover, it also has been found that the political climate of the Australia also support the activity related to environmental sustainability along with food safety along with animal welfare. On the contrary, it also can be analysed that the political threats for agribusiness within Australia can be raised from the outside political sphere (Mehlhorn et al. 2015). Poor coordination of the vertical supply chain can be the particular risk for reputational damage of Australia. On the other hand, it has been found that the Bridestowe deals with only firming of lavender for making agricultural products. Therefore, it can be said that it can recognized as the positive support for increasing lands as the assets which impacts positively on the business environment assignment sustainability of the organization.
- Economical factor: It has been found that the Australian economy is provided 3% GDP growth by the agriculture industry. On the other hand it also has been found that the Australian farmers produced 90% if daily domestic food grains which assure the upliftment of the Australian economy by $27.5 billion (Taghoutia and Daly-Hassena, 2015). Besides, the production of Agriculturral products within Australian region provides the country a full support for increasing their firms in the context of producing more food grains to export and earn foreign dollars. Based on the working nature of the Bridestowe it can be anlysed that the organization produces lavender ice cream along with fresh lavender oils which support to earn a potential amount of revenue each year. Therefore, it can be a one pushing hand of Australian economy which results in future business environment assignment development of the company.
- Socio cultural factor: The agricultural and rural sectors of the Australia face lots of issues related to depopulation of the rural areas along with the declination of the agricultural education participation. On the other hand, it also has been found that most of the farming organization faced lost of issue related to the poor agricultural occupation of the peoples (Almutairi, 2018). As Bridestowe is mainly based on the firming of lavender plants to produce their market product can face the risk related to poor potentiality of the employment. On the other hand, poor knowledge related to agriculture can harm their planning operations which impacts negatively on the product quality.
- Technical factor: It has been found that the Australian agribusiness sector focus on the development of carbon foot print of the organizations. Therefore, it can be understood that the business industry less focus on the implementation of the advanced technology which can produce carbon. On the other hand, it has been found that the organization also used latest technological machineries for producing their product such as monoflora honey, ice cream, bear which can impacts negatively on the carbon foot print of the organization.
- Legal factor: According to the “Bio Security Act of 2014”, Australia it mainly stands for the environmental sustainability issue. As per the act, any of the business organization who humiliates the environmental health along with biodiversity through their business activity can be punished (Wolfert et al. 2017). On the other hand, it has been found that the Bridestowe already practice environmental sustainability program through various activity which ensures the legal issue avoidance for future.
- Environmental factor: Most of the Australian agricultural firms faced lots of issue related to water scarcity along with heat stress in the current situation of climate. On the other hand, it also has been found that the climate variability affects mostly on the agricultural regions of the Australia (Le Feuvre et al. 2017). Therefore, it can be analysed that the climate diversity can impacts negatively on the business performance development of the Bridestowe. The organizational product mainly based on the firming of Lavender plants which need suitable climate for growth. Therefore, the climate disturbance can impact negatively on the operational activity for firming lavender of the organization.
Recommendations for the future strategic directions
Implementation of Strategic direction for any organization is not at all a way day approach. It may require extensive study on business techniques, revenue structure thoroughly. Therefore, some guidance can be adopted for more productive and fruitful outcome in a business. This sort of decision can be implemented upon discussion the strength of the company and analyzing such optimistic opportunities that lies in the pattern of business executed by the company. In this business environment assignment, such discussion will be for the Bridestowe as an example of agribusiness organisation. The company can expand its operational process by following some specific ideas or guidelines depending on company strength over all. Bridestowe can stretch its business by improving its production through proper plantation and investing more resources for additional harvesting. This firm can grow by forming a partnership with other farm.
In this business environment assignment, some precautions to be taken care of in order to curb the risk factor that may arise with a high loss. In order to escalate profit in agribusiness, A agriculture firm can have a partnership with another farm which produce same plants in the same locality or outside. This proposal is also applicable in case of Bridestowe especially. Marketing can also play a vital role to form such future strategy to escalate its revenue. Bridestowe offers free visits to the visitor. That’s how it has become a well known company name among the tourist as a reputed agribusiness organization. Bridestowe is a company that also participates in online access, such as it expands its business by making online selling platform. In this case, This Company can also broaden it’s selling by making the service on door to door basis as it is a well known name in agribusiness industry.
The business environment assignment explained the extended review on such agribusiness organization intensively. It is known to all that most farmers belong to Australia are considered as the best producers of the world. Australia is highly privileged to secure good rank in agricultural industry due to having good climate condition, extremely good pattern of rainfall, vast range of business enterprises directly associated to agricultural industry along with some suitable criteria which is indispensible for good procurement. Moreover, it also has been concluded that Bridestowe is the agribusiness organization that is taken into consideration to frame analysis on economic development. Business environment assignments are being prepared by our economics assignment help experts from top universities which let us to provide you a reliable assignment help online service.
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