BUS104 Strategic Planning for Palmview Pineapples: Case Study for Assessment Task 2 Answer
Palmview Pineapples was shifted from Brisbane to Sunshine Coast in 1946 by its owner Errol Cooper which he had established in an 80 hectares acreage acquired from Federal Government’s Soldier Settlement Program as a reward for his military service. After Errol passed away in 1975, his son Jack has been looking after the business in a similar manner as his father and achieving annual produce of 3000 tonnes. However, since 1985, Palmview Pineapples has been experiencing a downward trend in its annual production due to the impact of several external environmental factors. Moreover, the competitive market environment and reliance of Palmview Pineapples on a single revenue stream has resulted in several challenges and can lead to catastrophic consequences in the future. In order to save the company’s future in the coming decades, Jack’s daughter, Jacqui and son, Elias has come forward to help out their father in taking some major decisions regarding changes in the company that would help them gain a competitive advantage in the intense market.
As Palmview Pineapples had access to several skilled personnel and capital resources, there were multiple alternative ways through which the business can thrive and achieve sustainability for the coming decades. Expanding into niche markets like Kiwi and Macadamias apart from their pineapple, passion fruit and custard apple would help increase their yield and capacity during the growing seasons. In addition to this, relying on the single revenue stream from selling fruits was not a proper approach for the business. The company can develop its own diversification initiatives through the integration of the processing facilities. Penetrating the beverage market in the hospitality industry through their pineapple flavoured beers and fruit juices would help generate alternative revenue streams. Furthermore, complying with the changes in the local zoning laws by the Sunshine Coast City Council for establishing a town centre and new high school in the area would help out the company during the crop production threats, and Palmview Pineapples should focus on residential development for this new initiative.
|Stable political conditions allow investors to purchase products confidently.||13th largest economy in the world is suitable for businesses requiring capital resources.||A growing population is ideal for large customer bases for businesses.||Australia being a top importer of electrical machinery and equipment, will allow Palmview Pineapples to get access to better farming and irrigation equipment.||The summer months are getting hotter and longer due to climate change as a result of which the quality and size of fruits are affected.||Australia’s fair-trading laws, consumer laws and competition laws are beneficial for both businesses and customers.|
|The changes in business policy by the government are ideal for farming companies.||With a 2% GDP growth rate in 2017, pure investments are the current trend which would help Palmview Pineapples in residential development (OECD 2018).||The supermarket business in Queensland is quite consolidated and local boutique operators are targeting the organic market.||With a $65 billion worth of technological purchases in 2019, companies are able to invest in technologies to meet the increasing customer demands.||Brilliant biodiversity of Australia has attracted visitors from across the world, which is beneficial for its business organisations.||The employment in the country is governed by the Fair Work Act 2009.|
|The local zoning laws are adjusted by the Sunshine Coast City Council to establish residential development through new high school and town centre.||Although the company tax rates are 30%, companies with less than $25 million turnovers have a lower tax bracket (Australian Taxation Office 2018).||Food growers from the north working with food processors and juice operators have resulted in an oversupply of product which has reduced the prices of fruits for local producers.||Advanced brewing techniques in the beverage industry are thriving as a result of which fruit flavoured beers is experiencing demand in the hospitality industry.||Climate change is considered a current and existential national security risk in Australia and might affect food and water quality in the future.||The privacy laws also help business organizations handle the personal information of customers.|
Economic Factors: Being the 13th largest economy in the world, Australia is suitable for businesses requiring capital resources. With a 2% GDP growth rate in 2017, pure investments are the current trend (OECD 2018). This would help Palmview Pineapples in residential development. Although the company tax rates are 30%, companies with less than $25 million turnovers have a lower tax bracket (Australian Taxation Office 2018).
Social Factors: A growing population is ideal for large customer bases for businesses. The supermarket business in Queensland is quite consolidated and local boutique operators are targeting the organic market. Food growers from the north working with food processors and juice operators have resulted in an oversupply of product which has reduced the prices of fruits for local producers.
The functional group decision-making theory is the ideal approach for Palmview Pineapples as it offers an opportunity for a group to make essential business decisions instead of an individual. The consisting primary of four stages, the group making the decisions need to analyse the problem, set a goal, identify alternative solutions and evaluate the best option available (Putnam, Stohl & Baker 2012). Palmview Pineapples is experiencing a similar situation as Jack, Jacqui and Elias need to come together and determine a future alternative approach to ensure a sustainable future for their company. As Jack and his children have different field of expertise, they can offer their respective skill sets and knowledge to determine the best future path for the company. Fruit-flavoured beers being on the rise in the hospitality in industry and having a small craft beer entity in Brisbane established by their cousins. It is ideal for Jack and his children to bring the flavour of pineapples into a craft beer offering. This would not only increase their supply of pineapples but also open up a new separate revenue stream from the beverage industry.
Figure 1: Information Resources Flowchart
(Source: Robbins et al. 2015)
As the best way forward for Palmview Pineapples is entering the beverage industry in the hospitality sector through their pineapple-flavoured beer, the above-mentioned Information Resource Flowchart might be used to determine the viability of the chosen approach. As the first stage, it is necessary to gather further background information on the topic (Robbins et al. 2015). Elias has already worked in the small craft beer company Chester and Kent for 2 years and has experience about how much popular new flavour beers are in the hospitality market. He has also done some primary research on how to bring the flavour of pineapple into a craft beer. However, further research is needed about modern brewing techniques to make the new beer taste good for the customers. In the second stage, both academic and non-academic types of research can be conducted on necessary equipment, machinery and techniques to penetrate a new market with better brewing techniques. In the third and final stage, library databases can be consulted for profitable business ideas on how to develop a sustainable business in a new market or industry.
Both tactical and strategic planning is necessary in the context of Palmview Pineapples in order to achieve a successful outcome. Whereas tactics are necessary for achieving a specific objective through planned actions, the strategy is necessary for a long-term organizational goal and destination. Strategic planning is necessary for activities that would lead to company differentiation, while tactical planning is necessary to determine how the strategy can be executed. Action plan forms the basis of strategic planning, while tactical planning includes the actions required for executing the action plan. (Esmaeilikia et al. 2016)The strategic planning of the company would help the company gain a competitive advantage in the market, while tactical planning is necessary for preventing any failure of goals. Tactics are more focused on the task while strategy fulfils the purpose of the chosen plan. Due to the short-term nature of tactical planning, it is quite flexible, whereas a fixed company strategy has fewer flexible opportunities. Tactical planning is more oriented towards present conditions, whereas strategic planning is future-oriented. The strategic planning for Palmview Pineapples includes opening alternative revenue streams by penetrating the beverage industry in the hospitality market through pineapple-flavoured beer. The tactical planning is necessary during each stage, starting from brewing techniques to market entry and networking decisions. With a combination of the two, a successful outcome can be achieved by the company.