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Strategic Management Assignment Analysing Business Case Of Costa Group


Task: This strategic management assignment focuses on your understanding and appreciation of Strategy Implementation. You are required to select the business corporation and include the following items in your report:

  • Discussion of Australian Food focused Agribusiness sector.
  • Identify international opportunities for your chosen Food focused Agribusiness.
  • Discuss different international strategies suitable for your chosen Agribusiness.
  • Discuss the most appropriate and inappropriate mode of entry to the international market for your chosen agribusiness.
  • >
  • Make recommendations for the future strategic direction of the selected Food focused Agribusiness in the chosen international market.
  • Write the report in English with structured sentences that conform to academic writing guidelines.
  • Follow a report structure with an executive summary, table of contents and conclusion.
  • Use Harvard referencing style in text and in the list of references. A minimum of eight (8) journal articles and textbook references are required to show basic research
  • .


In the contemporary world strategic management is highly active for providing overall direction to a particular company. It is utilized for developing plans and other policies to achieve long term objectives and thereby allocating resources for implementing the plans (Fila, et al., 2020). As the business space tends to become more and more tight packed by the passing time it has been witnessed that gaining competitive edge is all the more important for keeping a business flourishing. The following report aims to shed light on the same in the background of Australia’s leading horticulture business the Costa Group.

Analysis of Australian Food focused Agribusiness sector
The Australian subcontinent has been greatly known for shaping the future of food and agriculture in the country and worldwide spaces. Australia’s capability in ag tech and food tech helps the country in facilitating connections on a global basis (Misakov, et al., 2018). As the continent is spread over a vast area it is to be mentioned that agriculture place in the Australian subcontinent is mainly more 50%. In the long run, the availability of the natural resources, majorly water, soil and climate determine the proximity parameters of the market (Gupta, et al., 2021). As the business space proceeds to become more and more competitive in its nature it has been witnessed horticulture and cropping is generally becoming concentrated to areas being closer to the coast.

The Australian subcontinent on the other ground has an extremely diverse agricultural business. Where the fisheries and forest sectors of the country also produce a wide range of crops and other livestock products (Reddy, 2017). The gross value of the fisheries, forestry and agricultural business has levelled up greatly by nearly 7% in the past 20 years in real terms.

Throwing light on the wider aspect it is also to be added that Agribusiness in Australia majorly exists for serving the Australian agribusiness sector along with reflecting the diversity present in the business field. As far as the case of the Costa Group is considered it is to be outlined that the organisation operates on a global basis (Fahad, et al., 2020). Where the company even holds the history of being listed in the Australian stock exchange. Being considered as the country’s leading grower and marketer of fresh fruits and vegetables the company has received its own hat tip of nurturing fruits and vegetables of exceptional quality, International opportunities.

In the leading-edge environment, every business be it big or small aims to touch the international doors. The challenge of moving ahead in the universal space requires extensive knowledge and vast resources for conquering every barrier that comes in the way (Raut, et al., 2019). The Australian agrobusiness sector in this regard happens to be bast. As mentioned, more than 50% of the land in the country is devoted to agricultural production that produces fresh items for its citizens to consume and utilise. When weighing the land area and the population of the giant continent it is to be mentioned that both the elements do not align with each other on the mutual grounds. As the population of the country is quite less compared to the area devoted for the agriculture produce (Manwaring, Wallace, and Weaver, 2018). Thus, it can be stated that the vast amount of produce along with the investment devoted in the sector provides a clear-cut opportunity to the sector for expanding on a global basis.

Shedding light on the case of the Costa group on a focused basis it can be stated that since the company is one of the leading businesses in the sector in Australia it can easily choose to expand international (Llewellyn, and Ouzman, 2020). Moreover, Costa’s financial status also permits the organisation with nearly every capability of expanding on an international basis.

At present Costa Group's operations are spread across the New South Wales. Where the firm has its own berry farms on the Western side of the snowy mountains. Nevertheless, in addition to the same, it is also to be mentioned that the avocado and berry farms in the Coffs Coast and Macleay Valley also belong to the group (Allen, and Hampton, 2020). Thus, it can be added that with the firm's exceptional capture and such resources it can choose to expand international as it holds the capability of providing its foreign audiences with the same amount of productive and quality materials as it provides to its Australian citizens.

Opportunities in the agribusiness sector keep flourishing time and again and the audiences all across the globe depend on the sector for food needs and requirements. Outlining and co-linking it with the case of Costa it can be added that owing to be hefty production it can choose to expand to the Asian countries. Countries like: India, Bangladesh, and China would moreover also be a good opportunity for the company as here Costa Group would not only get access to quality and budget-friendly labour but would also be able to fulfil the needs and requirements of the target audiences. Ever since the past times, it has been witnessed that the audiences in these countries are also more curious and keener to purchase items that are imported (Bajwa, and Chauhan, 2017). In addition to the same, it can also be stated that the favourable climatic conditions would also favour the company in producing items as per the needs and preference pattern of the target audiences.

All the same, owing to its hefty coverage area in the Australian continent Costa would also be able to make the effective utilisation of its surplus reproduce in an effective manner. As countries like India, Bangladesh and China are highly populated it can be stated that the burning opportunity which Costa group would get in these area land would be exceptional when weighed against the other continents.

International strategies
International strategy is considered to be a business plan that is fostered by a business to stay ahead in the international market (Rogmans, and Abaza, 2019). As the business space happens to be exceptionally and extremely competitive it is all the more important for organisations to draft clear cut strategies right from the initial stages to capture the market for the longer run.

Considering the case of the Costa group it can be stated that even though the company holds its own exceptional reputation in the Australian market entering the Asian market space would require it to begin from the initial stage. As it is in these areas where it would not only face new competitors but would also require different tactics for winning the trust factors of the target audiences.

In such a scenario the strategies which can prove to be handy for the company are:

Utilising its brand name and presenting itself on the global map: When using this particular methodology,the Costa Group can enter the market spaces via showing the targeted customers how it has catered to the needs of the Australian audiences for years as of now. Moreover, it can also present itself on the global map via showing its ranking and listing on the Australian stock exchange. This particular strategy would allow the Costa group to catch hold of the loyal customers along with building its own established brand name and reputation for the longer run.

Providing hefty discounts in the initial days: Entering the Asian market automatically means that the Costa Group would be facing a total new set of competitors. Thus, to compete with them in the longer run the company would be requiring to build its trust factors in the eye of the target audiences (Williamson, 2021). However, in the same time, it would also be required to out beat and over take its competitors to flourish in the long run. Via providing discounts in the good quality products in the initial days would not only permit Costa beat its customers but would also let it capture larger sets of target audiences from the beginning. However, once the market space and reputation are set for the company Costa can set the price bar in accordance to the item it is delivering to its audiences.

Appropriate and inappropriate mode of entry to the international market
Market strategies permit organisations to offer their products and services in the international market space. When viewing the scenario practically it is to be mentioned that there happens to be various methods that companies utilise for entering and dominating the market space in the long run. Hence, understanding the distinct variety of entry modes here becomes exceptionally crucial.

In the case of the Costa group, the company before entering the Asian market would be required to align its budget with their offerings and its consideration that works towards enhancing their chances of increasing the revenue. The primary factors that would but only affect the organisation's choice of the international market strategy in this particular case are control, marketing and sourcing. Thus, keeping the same in consideration the appropriate market entry strategy here would be as follows:

Company ownership: This particular method is utilised when a particular organisation sells the product and its offering internationally without working on the shipment procedures (Shen, Puig, and Paul, 2017). As the climatic factors would highly be favourable in the Asian market the Costa Group can further make use of the same and thereby sell its products in the market. Moreover, owing a company in the international market space would also provide the Costa group its own share of credibility. However, this particular method happens to be quite expensive when weighed against other such entry strategies. As Costa group is one of the most top-notch organisations of Australia it can be stated that owing to its financial liberty it can take the initiative of moving forward in the direction.

Green field investment: this particular strategy involves buying land and other resources for building and structuring a proper business in the foreign land (Singh, 2021). However, via this particular methodology, the Costa group would also have to work upon its shipment and distribution costs in case it plans to import its excess reproduction in the country. Following this particular methodology, in the long run, would assist the Costa group greatly in setting up its business in the Asian market as it would be able to link and look after its Australian and Asian outlets both in a conjoint manner.

All the same the inappropriate methods in this regard would be as follows:

Outsourcing: This particular option is when the company hires another organisation to manage and look after its operations. This specific option might not work in accordance to the Costa group’s plan as majorly outsourcing provides a certain amount of control to the organisation in regards to sale of its products and services. Thus, it can be stated that the aforementioned two options might work in the favour of the Costa Group.

Recommendations for the future strategic direction
Strategic direction and clear-cut knowledge in the same field is exceptionally crucial for managing international sales in the long run. Thus, keeping the same in consideration the following recommendations can be provided to the Costa group:
-Studying the nature of the target audiences: Dominating the Asian market can be quite different from that of the Australian market space. Thus, it can be stated that the Costa Group would be required to study the market and thereby understand their taste and preference pattern for dominating the market in the long run.

Keeping ahead of competitors: Enhanced quality may not always be the sure shot saver of the Costa group. In developing countries often low-priced items win the race. Thus, it can be outlined that Costa Group would be required to draft timely and tactical strategies for staying ahead of its competitors in the distant future aspects.

In the end, it can be concluded the excelling in business requires an organisation to go through various ups and downs. Where internal marketing might boost awareness amongst employees yet internationalization might be the only key source of publicizing the company outside the typical work place norms. Agrobusiness being one of the demanded sectors in the world holds the capability of flourishing in every country once proper strategy are followed as detailed in the aforementioned report.

Reference List
Allen, B.L. and Hampton, J.O., 2020. Minimizing animal welfare harms associated with predation management in agro?ecosystems. Biological Reviews, 95(4), pp.1097-1108.
Bajwa, A.A. and Chauhan, B.S., 2017. Rice production in Australia. In Rice production worldwide (pp. 169-184). Springer, Cham. Fahad, S., Saud, S., Akhter, A., Bajwa, A.A., Hassan, S., Battaglia, M., Adnan, M., Wahid, F., Datta, R., Babur, E. and Danish, S., 2020. Bio-based integrated pest management in rice: An agro-ecosystems friendly approach for agricultural sustainability. Journal of the Saudi Society of Agricultural Sciences.
Fila, M., Levicky, M., Mura, L., Maros, M. and Korenkova, M., 2020. Innovations for Business Management: Motivation and Barriers. Gupta, J., Kumari, M., Mishra, A., Akram, M. and Thakur, I.S., 2021. Agro-forestry waste management-A review. Chemosphere, p.132321.
Llewellyn, R. and Ouzman, J., 2020. Conservation agriculture in Australia: 30 years on. Australian agriculture in, pp.21-33.
Manwaring, M., Wallace, H.M. and Weaver, H.J., 2018. Effects of a mulch layer on the assemblage and abundance of mesostigmatan mites and other arthropods in the soil of a sugarcane agro-ecosystem in Australia. Experimental and Applied Acarology, 74(3), pp.291-300.
Misakov, V.S., Khamzatov, V.A., Temrokova, A.K., Misakov, A.V. and Dikareva, I.A., 2018. Strategic management of innovative agro-industrial projects. Strategic management assignment Amazonia Investiga, 7(14), pp.16-23.
Raut, R.D., Luthra, S., Narkhede, B.E., Mangla, S.K., Gardas, B.B. and Priyadarshinee, P., 2019. Examining the performance oriented indicators for implementing green management practices in the Indian agro sector. Journal of Cleaner Production, 215, pp.926-943.
Reddy, P.P., 2017. Agro-ecological approaches to pest management for sustainable agriculture. Singapore: Springer Singapore.
Rogmans, T. and Abaza, W., 2019. The impact of international business strategy simulation games on student engagement. Simulation & Gaming, 50(3), pp.393-407.
Shen, Z., Puig, F. and Paul, J., 2017. Foreign market entry mode research: A review and research agenda. The International Trade Journal, 31(5), pp.429-456.
Singh, N.P., 2021. The rise of emerging Indian multinationals: strategic learning for EMNC foreign market entry and internationalization. International Journal of Emerging Markets.
Williamson, P.J., 2021. The Oxford handbook of international business strategy.


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