Strategy Implementation And International Market Expansion Of A Food Focused Agribusiness

Discussion of Australian Food Focused Agribusiness Sector

Strategic management help the organization to formulate as well as implement the strategy that the company intend to take up so that they can achieve the target and the goals in the near future. This provides the organization a direction, which help them to plan out the objectives of their existence as well as helps the organization to develop the policies and plans so that they can achieve the target (Hitt and Duane Ireland 2017). This management also enables the organization to allocate the resources in the right direction so that it can be utilize in an appropriate way and in an optimized way possible so as to achieve the success they want to achieve in the near future (Meyer, Neck and Meeks 2017).

Bega Cheese Company is located in the town of Bega, New South Wales. The company is being named after the name of the city. It is an Australian based dairy product company, which turned out to be the public company in the year 2011 as they enlisted themselves in the Australian Securities Exchange (Esty and Pickle 2017). In the year 2017, Bega Cheese Company is considered to be the largest cheese producing company all over Australian market with a valuation of the revenue of around AU$ 775 million. Bega Cheese Company operates in Australian market as well as in New Zealand as the company produce both the dairy products as well as the processed food products, which helps them to achieve their target along with that to grow in the market (Hutchinson 2016).

Agribusiness is considered to be the business sector, which helps in the production as well as in the processing and distribution of that products in the market. These helps the farmer along with the agriculture industry of the country to grow in the market as well as to capture the market (Clune 2019). This sector also enrich the country’s economy as the cultivated agricultural products, which can be exported to different parts of the world. These automatically enables the country as well as the company to sustain in the international market (Newsome and Sheridan 2018).

In case of the agribusiness the different steps of the agricultural process is given importance, which automatically helps the farmers as well as the company selling dairy products to grow along with that to earn profit from the market. These sector look into the demand and supply of the products and also control the flow of the demanded products in the right direction (Mohsin 2015). These products automatically benefits the farmers as well as the country to generate revenue and improve in the market. For example: If there is shift in the consumption of the red meat in the country then the agribusiness sector will help the business who are dealing in red meat to export their products in the international market where there is a high demand for the red meat (Purves, Niblock and Sloan 2015). These ultimately benefits both the business firms as well as the country to generate revenue, when there is no demand for red meat in the domestic market.

International Opportunities for Chosen Agribusiness

Australia is considered to be the 12^th largest agricultural explorer in the world and the country is willing to raise its position in the near future. These can only be possible if the country is willing to adopt new technology in the agricultural sector. The country is aiming for generating AU$ 100 billion by the year 2030 (Tourenq, Field and Searle 2016). To achieve this target the Australian farm institute have already introduce an application in the country which will provide guidance to the farmers so that they can grow the crops in a right way and the value of the products can be increase in the process. The government of the Australia is also helping the agribusiness sector for the betterment of the country in the international level. These will ultimately enhance the position of the country in the international economy market.

The Australian agribusiness sector have correctly addressed the demand, supply as well as distribution of the processed food products and agricultural products in the international market as well as in the domestic market. These showcase the initiative along with that the interest of the agribusiness to support the business firm as well as the country’s economy to enhance (Garcia 2016). In the agribusiness sector there are two section namely agtech and foodtech, which looks into both the sector and in the end help them to grow in the market.

There is a huge opportunity for the Bega Cheese Company in the international market, so, that they can sustain in it as well as can earn a huge sum of profit from the market. The opportunities that need to be explore by the company are mainly:

• As the dairy industryis improving in Australia, therefore, the industry has adopted the process of rationalisation which is somewhat important for the business firm that are there in the industry to make an impact. If the company can adopt the process in an efficient way then there is a chance for the company to grow in the international market (Lamb 2017).
• Australian butter is in high demandin the countries like Egypt, Morocco, Singapore and South Korea as the Australian butter possess the anhydrous milk fat, which is in demand in these countries (Pathak, Hagare, Guo and Ngo 2015). Therefore, Bega Cheese Company can target these countries as the company produce processes food products. These is a huge opportunity for the organization to grow and expand in the international market.
• In the short run it can be seen that there is a depression in the dairy marketbut it is expected that in the long run the demand for the dairy products will gradually increase in the international market (Meurer, Palmer and Gras 2015). Therefore, it is a huge opportunity for Bega Cheese Company to look into the matter so that they can expand in the international market.
• If Bega Cheese Companyalign with the Woolworths, which is considered to be the popular supermarket in Australia then there is a huge chance for the company to grow in the international market.

Bega Cheese Company need to adopt some of the international marketing strategy, which will ultimately helps the organization to grow along with that to sustain in the domestic and in international market. The strategies are:

• Introduction of new product line:Bega can introduce a new set of product line in the international market. These will helps them to grab the attention of the customers towards the brand.
• Packaging and Labelling:The new ways of packaging as well as labelling will also attract the customers towards the brand, which will automatically help the company to capture huge market share (Harman et al. 2015).
• Advertising Campaign:The Company need to adopt an effective and efficient advertising campaign, which will enable them to communicate with the customers. These will ultimately increase the sale number of the products produce by the organization. Bega Cheese Company should endorse a celebrity as a brand ambassador, which generate the sense of interest in the customers mind (Morrison 2019).
• Introduction of Flavours:Bega Cheese Company should focus on introducing new flavours, which will enable them to generate the interest in the minds of the customer. These is important for the company to introducer different flavours in the market if they are willing to capture the market domestically as well as internationally (Van Caenegem, Cleary and Tréguier 2016).

The company need to follow the appropriate as well as the inappropriate ways to enter the international market so that they can become popular in the international market. These will also enable the organization to grow as well as well as to sustain in the domestic and in the international market. The mode of entry are as follows:

• Franchising:The simple and appropriate way to enter the international market is by franchising the brand in the market of the different country. These will automatically enable the organization to capture the market share by analysing the needs and wants of the customer. Bega Cheese Company can look into this option to expand internationally, as this will enable the company to open their brand in the other country’s market.
• Exporting:These is considered as the appropriate way to enter into international market. The company need to export their product in other country’s market which will be distributed to the retailers with help the agents whom the company will hire. If the products attain the success then the company will be able to export more product in the international market. Bega Cheese Company can adopt this technique to grow in the market (Teramura, Nottage and Morrison 2019).
• Joint Ventures:The Company can go for joint venture, which is considered as the appropriate way to enter the international market. These is so as the company is entering directly along within the local company in the market. These will automatically helps the organization to grow as well as to analyse the market in which the company wants operate in the near future. Therefore, it is important for the organization to adopt this mode of entering the international market. In case of Bega Cheese Company, it is important for the organization to adopt the joint ventures which will help them to capture the international market.
• Partnering Up:The Company can take up the partnering up method which is an appropriate way to make an entry into the international market. These will helps the organization to enter the international market. These will provide the company with equally efficient company or organization who will collectively work with the company so that they can both earn profit from the international market. In case of the Bega Cheese Company, it is important for the organization to partner up with the local organization in which country they want to enter so that they both can earn profit from the market (Van Caenegem 2015).
• Buying Company:The company can buy a local company to enter the international market or to a specific country market, where they want to enter and expand their business. These is considered to be the inappropriate way to enter the international or a specific country market, but in this case it is quite effective in nature, as this helps the organization to enter directly into the market without endorsing much effort. Bega Cheese Company can adopt this strategy to enter the market so as to earn profit from the international market.
• Licensing:These is also a type of inappropriate mode of entering the international market. In this method the foreign country provide license to the local company so that they can carry the products and sale them in their domestic market. This helps the company to grow in the market and to earn popularity in the process as their products are entering the international market by holding the hand of the local company (Swann and Richards 2016). Bega Cheese Company can look into this matter so that they can enter the international market.

There are few recommendations which need to be followed by the organization so that they can gain control over the international market. Along with that the company will be able to capture a large market share, which will automatically helps them to grow along with that helps them to earn huge amount of profit from the international market. The recommendations are as follows:

• The company Bega Cheese Companyshould adopt a well-structured strategy, so that they can gather the knowledge about the market needs and wants and can work accordingly to introduce the product in the market.
• There are competition in the marketbut there is a great opportunity for the organization to enter the foreign market so that they can earn popularity in the international market. These will helps the organization to grow in the market and to earn a large customer base, who will act as a loyal customer to the organization.
• The company should maintain the quality of the productas it is considered to be the most important factor to attract customers towards a brand. The quality of the product enables the customer to understand that the brand is providing value for the money that they are providing to the company.
• The company need to establish a well-structured distribution channel, which will automatically helps the organization to meet the demand of the customers in a timely manner. These will helps them to grow in the market as well as to earn large amount of market share in the market.
• The brand need to endorse the celebrityto promote their brand. These will automatically helps the organization to gain customers and attract them to buy the products, which the company is selling. These is how customers are influenced in the process to earn customers in the market.
• The advertisementshould be made properly and with all information possible as a successful advertisement includes all the details regarding the product or service that the company is providing to customers. These will make them aware and inform them about the product that is being introduce in the market.

Suitable International Strategies

Conclusion

It can be conclude that Bega Cheese Company need to adopt a proper strategy so that they can expand in the international market and can gain popularity in the process. These is important for the organization if they are willing to expand in the market. The company need to analyse the needs and wants of the market, only by that they will be able to expand in the process. Therefore, the company need to satisfy the customers with their service and providing them with the better quality product to value their money. It will automatically helps the organization to attract huge number of customers towards the brand and automatically enable them to sustain along with that to earn profit from the market.

References

Clune, T., 2019. Conceptualising Sustainable Development of Agribusiness in Australia (No. 2186-2019-1370).

Esty, B.C. and Pickle, L.G., 2017. Bega Cheese: Bidding to Bring Vegemite Back Home.

Garcia, E., 2016. Sustainable agriculture under attack from mining, banks and agribusiness. Green Left Weekly, (1081), p.10.

Harman, B., Cunningham, R., Jacobs, B., Measham, T. and Cvitanovic, C., 2015. Engaging local communities in climate adaptation: a social network perspective from Bega Valley, New South Wales, Australia.

Hitt, M. and Duane Ireland, R., 2017. The intersection of entrepreneurship and strategic management research. The Blackwell handbook of entrepreneurship, pp.45-63.

Hutchinson, N., 2016. Batten down the hatches: The dairy industry in crisis?. Geodate, 29(3), p.17.

Lamb, D.W., 2017. Accelerating precision agriculture to decision agriculture: a review of on-farm telecommunications challenges and opportunities in supporting a digital agriculture future for Australia.

Meurer, B., Palmer, M. and Gras, S., 2015. Innovation hub fuels growth of Australia’s dairy industry. Food Australia, 67(4), p.42.

Meyer, G.D., Neck, H.M. and Meeks, M.D., 2017. The entrepreneurship?strategic management interface. Strategic entrepreneurship: Creating a new mindset, pp.17-44.

Mohsin, M., 2015. Agribusiness financing in Australia: issues and research agenda. International Journal of Economics and Finance, 7(7), pp.1-18.

Morrison, J., 2019. Recent Developments in International Arbitration in Australia 2017/2018. Journal of International Arbitration, 36(3), pp.401-416.

Newsome, L. and Sheridan, A., 2018. Taking Stock: Identifying the Growing Agricultural Service Sector in Australia. Australasian Agribusiness Review, 26(1673-2019-707), pp.1-18.

Pathak, N., Hagare, P., Guo, W. and Ngo, H.H., 2015. Australian food processing industry and environmental aspect–a review. In International conference on biological civil and engineering (BCEE-2015) Feb (pp. 3-4).

Purves, N., Niblock, S.J. and Sloan, K., 2015. On the relationship between financial and non-financial factors: A case study analysis of financial failure predictors of agribusiness firms in Australia. Agricultural Finance Review, 75(2), pp.282-300.

Swann, E. and Richards, R., 2016. What factors influence the effectiveness of financial incentives on long-term natural resource management practice change. Evid Base, 2, pp.1-19.

Teramura, N., Nottage, L.R. and Morrison, J., 2019. International Commercial Arbitration in Australia: Judicial Control over Arbitral Awards. Sydney Law School Research Paper, (19/24).

Tourenq, C., Field, T. and Searle, A., 2016. Restoration of Banrock Station Ramsar wetlands, South Australia: over 20 years of successful involvement by a private agribusiness. Restoration of Banrock Station Ramsar wetlands, South Australia: over 20 years of successful involvement by a private agribusiness., (88), pp.25-36.

Van Caenegem, W., 2015. Quality local food products–some aspects of trademarks law and GIs. Enterprise Governance eJournal, 1(1), p.6932.

Van Caenegem, W., Cleary, J. and Tréguier, L., 2016. Local to Global: Provenance Branding and Farmer Co-operation for High Value Export Markets.