Economy and Business Opportunities Method †MyAssignmenthelp.com

Question: Discuss about the Economy and Business Opportunities Method. Answer: Introduction: Austria located in the continent of Europe is one of the most prosperous country. Amongst the 14 richest countries, it is 114th largest nation in the world. Austrias economy is well developed with trained labor force, a huge service sector and viable manufacturing. Food and luxury commodities, mechanical engineering and steel construction, chemicals, and vehicle manufacturing are the most significant companies. The Austrian economic system is a liberated market economy contributing its investors principle conditions (globaltenders.com. 2016). It is naturally rich in iron ore, non-ferrous metals, important minerals and earths and is one of the largest provider of hydroelectric power. It is strongly united with other EU countries specially Germany. Austrias major imports includes machinery and equipment, moods, motor vehicles, chemicals, metal goods, oil and oil products and foodstuffs (Austria.org. 2017). Since World War II, there has been a significant decline in the agricultural share in Austrian economy. There is an inadequacy in production of dry food and nuts as they are restricted to locally grown products like apples, pears and walnuts. The EU, Germany, Turkey and the United States are amongst the major exporters of nuts in Austria. However, there is a continuous increase in demand of nuts particularly almonds by Austrian customers. During the year 2015, dried fruits and nuts imported from The United States were worth USD22.4 million, thereby proving that there is a favorable market opportunity for other countries in this field. Nuts mainly almonds are popular as a snack and are used in the production of breakfast cereal and by other food processing companies. Being the worlds second largest producer of almonds, Australian almond industry is the leader in horticultural export industry. With favorable weather conditions, Australia has huge almond orchards. Production is more eff icient due to automated harvest systems which reduces labor input. There has been a constant increase in the production of almonds in Australia. With free trade agreements and almonds being the largest nut crop in Australia, country is expanding its exports worldwide (Farell 2015). The United States which is one of the major supplier of nuts in Austria has been badly hit due to constant drought in California. There has been an automatic increase in the pricing, hence beneficial for Australia to explore Austrias nut market. The above graph shows that there has been 740% growth in almond production in Australia. Thereby, the country has the opportunity to grow globally. Select Harvests is one of the largest producer and seller of wide variety of nuts and related products in Australia. It is the biggest almond grower and exporter worldwide. It has expanded its horizons in rapid growing markets of India, China, Asia, Europe and the Middle East. With 270 permanent employees, company is continuously expanding its exports of almonds, muesli and health food, thereby looking for new market opportunities in other countries. As discussed above, there is a constant rise in demand of natural foods and nuts especially almonds and with Californias drought stricken condition, Select harvest will have a favorable market for its almonds and other related products in Austria. Situation Analysis is the base of a marketing plan. It takes into consideration both internal as well as external environmental factors to build an overview of the organization. In the present an analysis of the situation comprising of the business environment, analysis of the market of Austria, the competition to be faced by the company Select Harvest and the analysis of the organization, Select Harvest is being done for better understanding of the decision of Select Harvest as to why it prefers to invest in Austria. Business environment comprises of all the external and internal factors that affects the functioning of a company. Macro and micro are the two kinds of external marketing environment. Macro environmental factors includes demographic, legal, political, technological changes and natural forces. However, micro environmental factors includes the suppliers, resellers, customers, competitors, and the general public. Being a democratic republic, Austria is a safe country with low political risk. It is one of the member of European Union. Hence, political scenario will be sanguine for Select Harvest to import its products. Economically, Austria is very strong. Despite of suffering from recession, it has a well developed economy with trade being its crucial part (Singh 2016). Again, providing a favorable economical condition for Select Harvest to enter its market. Socially, people in Austria has high standard of living and the same is understandable and proved as according to World Competitiv eness Yearbook 2009, it has been ranked as number 1 in quality of life. Select Harvest who is presently managing countrys largest almond orchards, would cater Austrian consumers ever increasing demand for high quality natural products. The country is very much advanced in technology. Legally, labor organizations play an important part in overall business in Austria and further to this Select Harvest would be profitable as Austria has business-friendly tax system as well. Apart from the above when it comes to assessing the environment of Austria, it is found that post the World War, the country has been extensively engaged into the work of erecting and sustaining the development and upliftment of the industries. Thereby since Select Harvest plans to invest and start its business dealings with the said country, it will have to ensure to take into considerations the various environmental laws formulated since various laws have been spelt out to ensure that the environment is kept under pollution control if not free in all aspects. Market Analysis In todays scenario, consumers are adopting healthier lifestyle and opting for low calorie foods. During the last few years, there has been a rapid increase in food and beverage expenditure. Austria is self-contained for several commodities in organic production. Good market prospects exists for the commodities which are not locally produced. as Austria is mostly mountainous, only plain areas of eastern Austria and some portions of western and northern Austria are suitable for the production of crops. Also due to non favorable weather conditions, Austria is deficient in dried fruits and nuts. As of 2011, estimated total imports of dried fruits and nuts is $150 million which was $130 million in the year 2009.Thereby, showing that there has been a tremendous rise in its demand. Almonds being the major commodity within this category. The forecast for Austrian consumer expenditures on food and beverages (non-alcoholic and alcoholic including tobacco) in 2015 is at USD 3,112 per capita, wh ich is 13.3% of total consumer expenditures. The share of food and beverage expenditures is fairly stable (export.gov.2016). Globally, in the year 2013, Australia has been ranked as number 2 in almond production. With its shares listed on the Australian stock exchange, Select Harvest is the leading Australian nut and health food company. Almonds which are rich in fibre and protein offers a healthy snack and is also used as an important ingredient in many dishes worldwide, particularly in cereals and bakery items. Select harvest provides world class organic products majorly almonds which specifically seems to be best suited for the people of Austria due to their preference for a high standard of living. It has a perfect business market opportunity in Austria which would meet the constantly growing demand of its consumers (International Business Publication 2017). The total market size of dried fruits and nuts as estimated in 2011 is $126 million which was $108 million in 2009, thereby providing an insight of the Austrian market condition and an attraction for Select Harvest to look into Austria as an attrac tive location for expanding its existing business. The biggest supplier of dried fruits and nuts to Austria are Germany, The European Union and Turkey. The United States is fourth in supplying nuts. Out of estimated $150 million imports in the year 2011, the United States accounts for $15million which was $13 million in the year 2009, increased to $22.4 in 2015. Austria imported USD 120 million worth of U.S. agricultural, fishery and forestry products in 2015. Official import numbers do not include significant and steadily growing transshipments of U.S. products from other EU countries.(Source: Global Trade Atlas/Statistic Austria). Hence, real import values are way higher. The above graph evidently states United States as the major competitor for Select Harvest dominating the market with 79% of almond production globally. It has a huge competitive advantage over other countries when it comes to its production and exports. The European Union being the second. Commercially, almonds are grown in California, North America. However, with the constant drought condition in the state, it has resulted in lowering of export volumes, thereby increasing the prices. Australia with 8% of global almond production, can expand its industry worldwide. Select Harvest will have a huge potential in Austria for its almonds. Currently, the company is one of the major exporter trading across the world. It aims at increasing its geographical diversity. Sales of the company has already risen manifolds. With constant expansion plans and high quality products Select harvest can successfully sustain and earn profits in Austria (export.gov. 2016). Organisational Analysis Select Harvest, one of the Australias leading almond producing company was established in the year 1983 with its headquarters in Melbourne. It has huge orchards stretched over New South Wales, Victoria and South Australia. The company excels in horticulture, orchard management, processing, sales and marketing. It not only offers nut based products but also has a huge market for other healthy products like muesli and dried fruits(Selectharvest.com.au. 2017). During the soaring season, it has a competence of processing 22,000 tones of almonds. Lucky, Sunsol, Nu-Vit, Meriram, Soland, Allinga Farms and Renshaw are its primary brands. There has been 175% rise in 2014s $21.6 million profit after tax audit of AUD $59.4 million, as per companys financial report ending 30th June 2015 ((Australian Food News. 2015).With Paul Thompson as the managing director, the company has expanded globally. The graph above evidently shows a growth of 285% of Australian almond exports. Select Harvest , leading manufacturer and exporter is a major contributor in this figure. Hence, Select Harvest has competitive advantage over other countries by having geographically diversified almond orchards, free trade agreements, increased consumer requirement for almonds due to health awareness and reduction in exports from America due to continuous drought. SWOT as the name suggests covers strength, weaknesses, opportunities and threats associated with the company. It helps the company in making strategic decisions as it takes into account both internal and external factors. With regards to product opportunity i.e. almonds by Select Harvest, an Australian company entering Austrian market, SWOT Analysis provides an insight to the company to make significant decisions in this ever changing environment. The strength of Select Harvest company is that it is a leader in almond grower with its own huge orchards. There has been a continuous increase in growth of almonds and its exports. It has a huge share in domestic as well as international market. However, weaknesses of the company is that it has to pay taxes and has relatively small business unit as compared to the companies in United States who are the major supplier in Austria. The opportunities that the company has is the ever increase in demand of almonds by Austrian consumers. In Austria, with the increase in income, consumers are more inclined towards healthy lifestyle. Thereby, the opportunities that the company has is the ever increase in demand of almonds by Austrian consumers. It has a diversified product base and is not limited in producing almonds. The company is spreading its base by expanding its almonds orchards, hence can easily meet the demands. Also, it is well established globally. Thus, will not face many challenges while entering Austrian market. Lastly, government regulations is the possible threat for the company (advisorgate.com. 2016). Also, despite having drought conditions, United States continues to be major exporter of almonds in Austria. Hence, t o sustain and be profitable Select Harvest has to ensure high quality products. References: Advisorgate.com. (2016). Select Harvest SWOT analysis, Strength, Weakness, Opportunities and Threats for over 40000+ companies and industries. Retrieved from https://swot.advisorgate.com/swot-s/34113-swot-analysis-select-harvest.html Austria.org. (2017). Economy. Retrieved from https://www.austria.org/economy/ Australian Food News. (2015). Australias amazing nut industries are global players. Retrieved form https://www.ausfoodnews.com.au/2015/10/05/australias-amazing-nut-industries-are-global-players.html Export.gov. (2016). Austria- Agriculture. Retrieved from https://www.export.gov/article?id=Austria-Agriculture Farell,R. (2015). Australia: Almonds Booming Downunder. Retrieved from https://gain.fas.usda.gov/Recent%20GAIN%20Publications/Almonds%20Booming%20DownUnder_Canberra_Australia_8-21-2015.pdf Globaltenders.com. (2016). Economy and Business Opportunities from Austria. Retrieved from https://www.globaltenders.com/economy-of-austria.php International Business Publication. (2017). Austria- Export-Import, Trade and Business Directory. Austria Selectharvest.com.au. (2017). About Select Harvest. Retrieved from https://selectharvests.com.au/our-company/ Singh,R. (2016). PESTLE analysis in Austria. Retrieved from https://www.scribd.com/doc/55796405/Pestle-Austria