Strategy and Change for Cattle Farming and Meat- myassignmenthelp

Question: Discuss about theStrategy and Change for Cattle Farming and Meat Industry. Answer: Introduction Cattle farming and meat industry is one of the major revenue earning industry in Australia. Moreover, the cattle farming industry of Australia is mainly export oriented and thus it is one of the major sources for gaining foreign reserves. North Australian Pastoral Company is one of the leading players in the Australian cattle industry. Moreover, they are also one of the oldest companies in the Australian cattle industry. Currently, they are having 13 cattle stations with having more than 200,000 cattle making the largest private player in the industry. The major product for them is beef that sold in both the domestic and international market. However, in the current time, Australian cattle industry is facing number of challenges in terms of different environmental factors. Moreover, due to the fact that this industry is mainly depended on exports, emergence of external issues is more (Zhang et al., 2014). This is also leading to the increase in the business challenges for North Australian Pastoral Company. They are in the need of having effective strategies and internal factors to deal with these issues. This report will discuss about the internal and external factors influencing their business operation. In addition, the effectiveness of the internal factors of the organization in coping up with the external change will also be discussed. Identification of the external forces Political factors One of the major political factors is the diplomatic relationship with the importing counties. In the current time, political turbulence is going on in the international market scenario. Thus, it is affecting the export trend of beef from Australia. More stringent legislations and regulations are being initiated by the governments of the importing countries regarding the food standard (Cohen et al., 2014). Economical factors Emergence of the issues such as Asian economic crisis and recent American crisis is influencing the market (Aizenman, Jinjarak Park, 2013). Changes in the valuation of the Australian dollar against the American dollar also posing challenges keep up the revenue stream. Competition is increasing in the global market and it is affecting the sales revenue of North Australian Pastoral Company. Social factors Demand of beef in the global market is fluctuating and it is affecting the business growth of the Australian cattle industry (Davalos et al., 2014). Demand for beef is steadily reducing in the importing countries due to less public consumption. Trend of demand for beef is shifting from the bigger markets such as United States and Canada to the smaller countries such as Taiwan and Hong Kong. Technological factors Technology is rapidly developing in global cattle farming industry. It is becoming more important for the Australian firms to initiate newer technologies in order to stay competitive. Cost of production is rapidly increasing and thus it is important for the Australian firms to have latest technologies for enhancing the efficiencies. Evaluation of the external factors Thus, from the above discussion, it can be concluded that North Australian Pastoral Company is facing number of challenges in terms of different perspectives. One of the major challenges identified for them is introduction of the stringent regulations by different governments regarding the food safety. Countries such as the United States are initiating stricter rules and standards in importing beef (Lo et al., 2015). This is mainly due to the reason that trend of counterfeiting is rapidly increasing in the food items and it is becoming more important for the governments to have strict standards and regulations. This is becoming difficult for North Australian Pastoral Company to set and enhance their product quality according to the different benchmarking of the governments. Another major external factor or issue for North Australian Pastoral Company is the reduction in the global demand for beef (Centner, Alvey Stelzleni, 2014). This is mainly due to the reason that customers are le ss likely preferring beef and opting for other alternatives. Thus, it is reducing the business potentiality for North Australian Pastoral Company in their global operation. Identification of the internal factors Strengths North Australian Pastoral Company is the oldest and largest private sector firm in the Australian market. This helps them to hold a positive brand image in the market. Having number of stations helps them to cater to more number of markets in different regions. Capabilities in the breeding program development in order to have more drought resistant process. Weaknesses They are not having the access to the government subsidies like the private players in some other countries. Average cost of production of North Australian Pastoral Company is higher compared to some of their competitors. They do not have any foreign bases, which increase their dependency on the Australian economy. Opportunities More new markets are emerging for beef. This is increasing the market exposure for North Australian Pastoral Company. Initiation of the new technologies will enhance the organizational efficacy and will reduce the cost of operation. Opportunities of supplying live cattle to the North African markets. Threats Stringent regulations restricting the Australian beef for importing. Emergence of bovine diseases in different countries such as Japan. Natural calamities such as inadequate rainfall and drought. Evaluation of the internal factors The above discussion and analysis of the internal factors identified number of weakness and strengths for North Australian Pastoral Company. One of the major positive factors identified is the brand value and extensive business capabilities of the organizations. It is reported that North Australian Pastoral Company is the oldest and largest private player in the cattle farming industry in Australia. Thus, having huge and positive brand values is helping them to have more financial access in competing in the market (Hsu, Wang Chen, 2013). Moreover, their huge operation is also helping them in having competitive edge over its competitors. On the other hand, the major negative factor for them is not having foreign bases for them. This is forcing them to be more dependent on the Australian economy. Having foreign bases should help them to reduce the issues in the international business. Effectiveness of the internal environment in coping up with the external factors Thus, from the above analysis of the internal and external factors of North Australian Pastoral Company there are different negative as well as positive factors are being identified. According to the case study given, the traditional market for beef is reducing in the global scenario while new markets are emerging. Thus, it is important for North Australian Pastoral Company to have enhanced capabilities in order to target the new markets as well as catering to the existing ones (Juan Ding et al., 2014). It is earlier discussed that they are having 13 cattle stations across Australia. Having such number of cattle station can help North Australian Pastoral Company to cater to more number of markets. This internal capability of North Australian Pastoral Company can also be termed as their competitive advantage in having enough capabilities and resources to meet the changing demand scenario. It is also to be noted that having the capability of catering to newer markets will further help North Australian Pastoral Company to face the economic crisis as they have faced during Asian economic crisis. However, on the other hand, the internal factor for North Australian Pastoral Company is not well effective in dealing with the issues such as fluctuation in the currency valuation (Patel, Patel Patel, 2014). In the case study, it is reported that North Australian Pastoral Company is facing the issue in exporting their products due to the currency fluctuations. However, it is discussed in this report that North Australian Pastoral Company is not having any foreign bases outside Australia. Thus, they will have to depend on direct exporting of their products, which is vulnerable to global currency fluctuations. There internal environment is not well adjusted in this case for North Australian Pastoral Company. According to Sodeyfi (2016), access to finance is important for the business organizations to have the scope for technology development. This is due to the reason that the more will be the access to finance, the more will be the capability of the organization to develop latest technology. In the case of North Australian Pastoral Company, they are operating in the cattle farming industry for long years and thus they are having the access to large source of capital. In the internal analysis also, it is identified that North Australian Pastoral Company can initiate development of latest technology. This will help them to reduce the cost of operation and they can offer their products in more competitive prices. Conclusion Thus, it can be concluded that North Australian Pastoral Company is having number of positive and negative factors to be faced in operating in the global business scenario. 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