MGT5STR Strategic Management: Report of Papyrus Australia Ltd

Introduction

In current situations, the Australian government has begun giving the emphasis on the food and Agribusiness sector. The reason is that sector is giving advantages to the nation’s economy through generation of employment and providing business prospects. To know the positive influence of the agribusiness of food sector in this report Papyrus Australia limited is been chosen. Papyrus Australia Limited’s business is expanded all over the world. Papyrus Australia Limited establishes the technologies that converts waste stem of banana palm in substitutes to forest wood products for utilize in sheets, packing, equipment, construction, production, and other sectors. The products of this company involve boards, hardboards, and surfaces. This report contains international strategies and international prospects, which are available for Papyrus Australia limited. Additionally, the report contains the mode of entry, which is proper. The report also states about mode of entry, which is not proper for this company and lastly, few recommendations are made (Jenkins and Williamson, 2015).

Australian Food-Focused Agribusiness Sector

Among the various sector covered under the Australian market Agribusiness sector rise as a main pillar in the industry. By noticing the current market trends the business dialogues, government and media has start putting their focus on the agribusiness sector by expecting that the sector will continued staple the prosperity of Australia. the agribusiness has stared involving optimize new technology during process, it start creating jobs and generate a new opportunities for businessmen. In Australia the agribusiness sector has uses the fragment approach that will lead the sector toward financial loss, culture, and massive emotional that is why they have start preventing this sector (Ali, 2016).

The Food and Agribusiness sector involves the items such as agriculture product, food processing and major raw material and inputs related to these processes (Hyndman, 2017). The Australian Agribusiness and Food sector is parted into two sub sectors these are:

Food Products: Food products include all food processing and beverage manufacturing and processing activates.

Agribusiness: Agribusiness activities include all activities that are related to agriculture and food production.

The Agribusiness and Food sector of Australia is contributing to the economy of the country by providing business, service and employment opportunities. The agribusiness sector of Australia has provided employment to 522000 individuals in 2015 and provides business opportunities to 178500 traders. The Food and Agribusiness of Australia has contributed approx. 3.35% to the total GDP of the country. Due to the government provide more focus on the food industry; labour efficiency has been improved at the rate 1% per annum over previous 5 years. Australia is in list of top big exporter in Agribusiness and Food sector (Bergh, et. al, 2016).

Company Overview

Papyrus Australia Limited was founded in year 1994. This company is based in Adelaide, Australia. Papyrus Australia limited is the creator of the advanced technologies which converts banana palm’s waste trunk in different substitutes to forest wood stuffs to be utilized in the building, packing, sheets, building and other businesses. The procedure of company uses renewable fiber resource like banana stem that is wholly justifiable and operative. This procedure is also very ecological and has vigorous and basic lower manufacturing or construction costs when illustrious to similar possessions and products. After the different studies it is found that projected annual revenue of this company is 3.4 $ millions and estimated workers are one hundred and four (Andreeva, et. al, 2018).

International Opportunity for Papyrus Australia limited

The company has the business everywhere in the world. Papyrus Australia limited is transacting in various nations. For business growth or for international prospects, the company may address which are unavailable in the present marketplace. The company can introduce the different wooden product, which is not been introduces by organization in the global market. In this way, they will get chances for taking there one product in the international market. For expansion of the developed brand, this is best strategy for business expansion.

International Strategies

There are numerous competitive strategies for competitive benefits, which are discussed as below-

Differentiation strategy: It is important that Papyrus Australian Limited requires to recognize and examine the features that make goods exclusive in the comparison of oppositions. With help of this strategy, the firm has capable to differentiate goods from oppositions internationally (McKiernan, 2017).

Differentiation focus strategy: In this strategy, the company offers some unique and effective products and services that are completely different from its competitors. This strategy makes products and services unique and dynamic to attract and retain the maximum number of customers.

Cost focus strategy: The cost focus strategy is same as cost leadership strategy. It helps in making offer material at reasonable price in international market. If firm sets low price of goods then it can take full advantages in international market. It is one of the significant and imperial competitive approaches that help in getting aims (Rosenberg Hansen and Ferlie, 2016).

Cost leadership: The cost leadership strategy suggests that organization requires to set reasonable price for each produce in agribusiness and food sector. It is showed that low and unique cost producer must search and abuse resources of cost benefit. If Papyrus Australian Limited requires get competitive benefits then it should focus on the cost leadership strategy.

Appropriate modes of entry in the international market

Indian Government and Foreign Direct Investment Policies

The Circular 1 of the Department of Industrial Policy and Promotion was released in year 2011. This Circular 1 states that from the time 100% Foreign Direct Investment Policies has permitted on manufacturing and growth of viniculture, floriculture, planting material, sources, and farming of vegetables. Aquaculture, and facilities connected to agro and similar sectors have coved under 100% Foreign Direct Investment Standards. The Papyrus Australia Limited is the big name in consumer products. The company has full capability to set up their business or products in the international market the most proper method that Papyrus Australia Limited adjusts to entry in new international market is Green Field Investment (Agasisti, 2016).

Green Field Investment

Greenfield investment is foreign direct investment method. It helps the parent company in the operations in foreign nations. This FDI method usually conducted in establishing strategies. As per this mode of entry, the multinational organizations build new facilities and make new job in the specific nation (Dudin and Frolova, 2015). The organizations who adopt the green Field investment method will attain the advantages like tax cessations to create the government of specific organization. Greenfield investment is difficult and it involves possible cost but it gives complete control to organization over procedure, administration, supply chain and other operations related to produces. Additionally, the returns in form of revenue the organization require not share with other party. The Greenfield investment involves high risk as it includes huge cost but Papyrus Australia Limited will not face this difficulty because it already having recognized name in Market (Dess, Lumpkin and Eisner, 2014).

Acquisition

The acquisition is the mode of entry that is advantageous for those organizations that are already having trade in nation. The achievement has become significant most popular manner of entry in international market at present time. Various companies are using acquisition for business expansion. The trend of acquisition has improved because it is a manner to get power in market. The market power the market shares get influenced. The acquisition includes less risk in comparison to Greenfield investment as its results may be measured in easy manner.

Inappropriate mode of entry in the international market-

Joint venture

The joint venture is arrangements related to business between two or more than two parties those have the same opinion to pool their share risk and revenues to complete the particular assignment. In a joint venture, every party is liable for profit and loss, and cost relationship. The joint venture is unsuitable mode of entry. The reason is that in joint venture, the business ownership of got separated between venture parties and profit also got divided between venture parties. Papyrus Australia Limited is popular brand that is why they did not need support from others.

Strategic Alliance

The strategic alliance refers to the arrangements related to business between two parties who are agree to distribute profit and risks related to the particular assignment. However, strategic alliance is less obligatory and less concerned in comparison of joint venture. In the Strategic alliance, the parties pool their sources to make the particular business unit. The strategic alliance also not the proper mode of entry for Papyrus Australia Limited and the grounds are similar which are for the joint venture. Strategic alliance can involve less participation of the parties, they are separate business entity but they share profits and risks, and with good brand icon, Papyrus Australia Limited did not need support for others (Grant, et. al, 2014).

Recommendation

This section will give recommendations to Papyrus Australia Limited for the future considered direction in future market.

 Price differentiation strategy- It is recommended to Papyrus Australia limited that they may adopt the price differentiation strategy at the time of taking entry in the new market. By following this strategy, the organization may charge various prices from various purchasers for similar amount and similar excellence of the product. The money value is different in each nation and by taking into consideration the fact that, it is recommended that an organization must adopt price differentiation strategy.

Business Diversification strategy- Papyrus Australia limited is top brand, which handles in the user goods. The company extended its produce everywhere in the world. The organization has adopted a product diversification approach for the extension of the business (Rothaermel, 2015). It is recommended to implement the strategy related to business diversification for extension. Business diversification is good opportunity for an organization to enlarge the business with the help of new business.

Enhance experience of customer- The final aim of organization is consumers. It is recommended to nation that they are required to give great experience to consumers when they buy the organization’s product. It will be beneficial to attract the consumers more towards produces. In this way, they will purchase produces regularly.

Consider exchange rate and economic crisis- It is recommended that organization must consider exchange rates and economic crises of nation in which they have addressed the produce because the economy fluctuation of the nation and in the exchange rate will give adverse effect on organization’s operations (Modern, 2016).

Conclusion

As per the above analysis, it is concluded that Papyrus Australia limited is one of largest and famous brands all over the world. It is found from the above discussion that Papyrus Australia limited is an e-commerce platform or way which allows customers to gift cards and customs. The above analysis states that how top management and managers use different reasonable and approaches related to business to cope up with the entrants in the international market. The report presents that Papyrus Australia limited uses plenty of business strategies in the company. This discussion shows that how porter five forces model is utilized by the company to take the different entrants and cover the complete target spectators. It is recommended that the organization is required to emphasis on the publicity strategies and commercial strategies to attract and retain consumers internationally in various numbers. Additionally, the company is required to develop proper and operative strategies to beat the participants

References

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Andreeva, T., Zhulina, E., Popova, L., and Yashin, N. (2018) Integration of Strategic and Quality Management in Oil and Gas Companies of Russia. Calitatea, 19(163), pp. 81-84.

Bergh, D.D., Aguinis, H., Heavey, C.,  Ketchen,  D.J., Boyd, B.K., Su, P., Lau, C.L., and Joo, H., (2016) Using meta?analytic structural equation modeling to advance strategic management research: Guidelines and an empirical illustration via the strategic leadership?performance relationship. Strategic Management Journal, 37(3), pp.477-497.

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