Reasoning Criminal For Rational Choice Perspectives In Avocado Production

Identified issues in the current market for Avocado production

Discuss about the Reasoning Criminal for Rational Choice Perspectives.

The aim of the following assignment is to answer 4 individual questions based on a given case scenario. In this context, it is to mention that the considered case study is about an avocado, custard apple and passion fruit farm that is recently going through some major issues, such as low production due to weather change and lack of skills among the workers, market rivalry and harvesting issues. Henceforth, prime concern of the following question would be to identify, evaluate current issues and available resources along with to suggest a convenient alternative of organizational strategy framework for the concerned organization.

After considering the provided case scenario and the accompanying article, several issues regarding the current market for Avocado production have been noticed. Prior to identify and evaluate four significant among them, it is required to denote here that the avocado production of Western Australia is ready to flourish in the current year after temporary issue of supply chain due to weather and transport problems. However, for Glasshouse Avocados – four key issues, which have the potentiality to suppress the production as well market growth of Glasshouse Avocados are –

Jack, the present owner of Glasshouse Avocado should consider the current market situation for Avocado production in Queensland. For sustaining the business as well as increasing competitive advantages, Jack should consider the matter that the Queensland food market is gradually being dominated by the overseas imports. On the other hand, Jack needs to keep in mind that organic farmers like him would find it hard to increase revenue margin as relatively new boutique operators are stably setting their foots by acquiring a premium price for their high quality products. Most significantly, Jack should be worried about the fact that the new technology of putting Avocados in a tube has been already adopted by the farmers of the North.

Along with consolidated market condition, Jack needs to consider the negative impact of climate change. For example, Jack has already identified that the quality as well size of the avocados are being determined by the comparatively hotter and longer summer months. Henceforth, Jack should consider that currently climate fluctuations are critical for avocado harvesting and in coming future it may become a major issue.

In order to increase the revenue margin as well as the market growth for Avocado, Jack should highly consider that the farmers of Avocado still do not have the privilege to acquire market access protocols for several foreign countries. Therefore, instead of having the opportunity to make fruitful business oversees, farmers are currently suffering from lack of foreign market access protocols. On the other hand, Jack needs to keep in mind the fact that the west coast of Australia is suffering from having a relatively small domestic market.

Significant issues for Glasshouse Avocados

Jack has already identified that new technologies are winning the current market and the local farmers have started to adopt them. Jack should be concerned about the matter that presently in the premise of Avocado production, high pressure of processing facility is entering. Therefore, in future if Jack would not consider implementing new processing technologies, he may find it difficult to increase the production rate. Most importantly, Jack should be concerned about the matter that his labors have skill deficit.  

As it is evident from the above discussion, there are multiple issues that have emerged in the business management of Glasshouse Avocados. However, one of the most remrakble issues that need immediate attention is lack of technological innovation in the production process itself. Hence, this issue will be addressed with the help of the rational decision making process as shown below:

The Problem: Any kind of business should seek the help of technological innovation if it intends to sustain itself in a highly competitive market. The Glasshouse Avocados is no longer an organization operating in a monopolistic market. In the era of globalization, different avocado producing organizations are operating in the market and are exporting their products to other regions of the world. With the advent of technological innovation, the organizations are utilizing different technological solutions for increasing the fertility of the soil, providing the best climatic condition to the fruits or for providing the extricating the pests or biological residues from the plant. However, Glasshouse Avocados may lag behind and suffer from low productivity owing to inability to embrace new technology.

Decision Criterion: The factors that will be considered while making the decision should also be considered. First of all, in order to incorporate technological solutions, the organization will have to invest a huge amount of money. The money incurred will be spent for the implementation of the technologically advanced infrastructure as well as for the research and development studies. The financial expenditure is a big criterion. Next, greater human resource is needed for the implementation of these technological changes.

Weightage of the Criteria: The weightage of both the criteria is moderately high as in both the cases the organization will have to invest an enormous amount of money, and yet the outcome is expected to surpass the expenditure involved.

Alternative Courses of Action: The alternative choices or courses should also be considered:

Offer the products at low cost so as to capture the attention of the buyers who would otherwise try to buy avocados of higher quality

Addressing lack of technological innovation through rational decision making process

In case the safety and quality of the products can be ensured by implementing technological solutions, then the organization can merge with a more technologically advanced fruit producing organization and enjoy the technological benefits mutually

Evaluation of each Alternative: As far as the first alternative is concerned, it can be an effective alternative that can help the organization sustain its business for a shorter span of time. On the other hand, the second alternative can be a more feasible solution in case the business organization is running short of money.

Computation of the Optimal Decision: While computing the optimal decision, the expected outcome of both the aforementioned alternatives has been computed. Accordingly, it has been observed that the outcome of the first alternative is risk aversive as there is a sense of uncertainty regarding its relevance in the years to come. Hence, the second alternative of merging with another company seems to be a more viable option. Hence, the decision to merge with a technologically innovative organization is the optimal decision.

Limits: As far as the limits of the rational decision making process is concerned, the major limitation is that the change in the organizational structure may not be positively accepted by the employees. Besides, the financial expenditure involved in merging with a reputed company is huge although the immediate outcome is still quite uncertain. Before merging with an organization, it may not be possible to collect the relevant information about the organization within a short while.

With the help of VRIN (Valuable, rare, inimitable, non substitutable) analysis framework the possible resources available for Glasshouse could be analyzed. The VRIN framework helps in identifying possible resources as well as assists in securing the rare and inimitable resources for an organization (Osiyevskyy and Zargarzadeh 2014).

In terms of valuable resources, Glasshouse possesses an impressive amount of land for harvest, which is helpful enough for competing with rival organizations.

On the other hand, the possible rare resource available for Glasshouse is a convenient weather. It is because climate fluctuation has become a frequent circumstance and a suitable weather is necessary for acquiring high quality and high amount of corp.

In terms of inimitable resources, Glasshouse’s harvesting land should be considered as per the fact that the size and quality of the land, which can be utilized for both townhouse building and fruit production is hard to imitate.

In terms of non substitutable resources, Glasshouse should consider the new technical devices, which are essential for better production and packaging. It is non substitutable as no other resource can take place of the new technical tools for improving the standard of production and packaging.

Alternative courses of action

For establishing a concrete future for Glasshouse, Jack could consider the portfolio strategy belonging to the corporate level strategy framework. With the help of corporate level and specifically portfolio strategy Glasshouse can minimize the overall company portfolio of stock by the process of diversification. It is because the aim of corporate level strategy is to initially decide a particular business framework for success (Cornish and Clarke 2014). The basic idea of Portfolio strategy is to invest current resources in several premises. With the help of this strategy, Glasshouse can

• Utilize their land for harvesting crops as well as for developing some portions for townhouse living
• Instead of Avocado, passion fruit and custard apple, the organization can extend its production business for Kiwi

The strategy would be appropriate for the organization as it would help the company to avoid risk of losing assets as well as can support to increase the revenue margin (Baumann et al. 2014). On the other hand, the strategy would successfully assist in diversifying the business and help in making a strong ground for future expansion of the company (Henkel et al. 2014). Most importantly, the strategy would support to improvise the current service of Avocado by adding more qualities into the production with the help of money acquired from the investment for townhouse living.

Conclusion

From the above assignment, it can be concluded that the considered organization – Glasshouse Avocado is suffering from lack of employee skills, technologies and market rivalry, Therefore, according to the assignment, the organization should adopt the strategy to upgrade the existing production style by implementing new technologies and improvising the skills of the existing staffs by providing trainings. Moreover, the assignment has implied that to succeed in future, Glasshouse should adopt the Portfolio strategy.

References

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Cornish, D.B. and Clarke, R.V. eds., 2014. The reasoning criminal: Rational choice perspectives on offending. Transaction Publishers.

Ebert, R.J., Griffin, R.W., Starke, F.A. and Dracopoulos, G., 2014. Business essentials. Pearson Education Canada.

Henkel, M., Bider, I. and Perjons, E., 2014, June. Capability-based business model transformation. In International Conference on Advanced Information Systems Engineering (pp. 88-99). Springer International Publishing.

McWilliams, A., Williams, C., 2014.  MGMT . Victoria Cengage Learning

Mooty, S. and Kedia, B., 2014. R&D Partnership Portfolio Strategies for Breakthrough Innovation: Developing Knowledge Exchange Capabilities. In Open Innovation through Strategic Alliances (pp. 219-252). Palgrave Macmillan US.

Osiyevskyy, O. and Zargarzadeh, M.A., 2014. Business model design and innovation in the process of expansion and growth of global enterprises.

Renfree, A., Martin, L., Micklewright, D. and Gibson, A.S.C., 2014. Application of decision-making theory to the regulation of muscular work rate during self-paced competitive endurance activity. Sports Medicine, 44(2), pp.147-158.

Spiegel, D.V.D., Linke, B.S., Stauder, J. and Buchholz, S., 2015. Sustainability strategies of manufacturing companies on corporate, business and operational level. International Journal of Strategic Engineering Asset Management, 2(3), pp.270-286.