Analysis for Thomas Borthwicks and Sons Australian Pty Ltd
Name: BOYA LIN
STUDENT ID :18855469
COURSE: MGT5STR
Identification and Profile of the Company
Thomas Borthwicks and Sons Australian Pty Ltd is one of the recognized agribusiness organizations in Australia and beyond. As per the historical understanding, the company was established in 1905, making it one of the significant entities of the 20th century in Australia. Notable is that the products from the company are renowned worldwide due to their consistency and quality. In line with the exportation position, Thomas Borthwick& Sons Pty Ltd has stood out as one of the companies from Australia with a good reputation outside the Australian borders. Even though Thomas Borthwick& Sons Pty Ltd is recognized globally, most of its operations are felt in Australia as its top country of origin. Concerning the logical point, the company stands out as one of the entities with significant employment opportunities within the affiliates connected to it in the country. Still, on the historical background, the original plant was built by the government of Queensland in 1970, after which it was purchased by the investors bearing the names of Borthwick’s in 1978. After the takeover, the new investor embarked on an expansion mission, including increasing productivity to include the global scope. The company stands as wholly-owned NH food of Australia. On the same note, it is known as an integrated beef abattoir that processes various types of cattle.
Business Units for Thomas Borthwicks and Sons Australian Pty Ltd
As can be seen from the company’s website, the organization has 387 outlets within its name and structure. For the industry, there is the Animal slaughtering and processing as part of its outlets. Also, the Thomas Borthwicks and Sons Australian Pty Ltd stands as a food processing and manufacturing thereby occupying that part of the sector. One of the parts the company is more renowned with is meat packaging plants as there is more connection to livestock processing and selling within its name. As for the sector, the company occupies the consumer staples as part of its recognized areas of operations. Still, on the industry Homas Borthwicks and Sons Australian Pty Ltd is standing out as a consumer staple products. Additionally, for the sub-industry it is known to be basically food. The company is lauded in Australia as one of the best in Australia following its calls and keenness on the health of its products. For there to be a claim on healthy matters of food, there is the need for the notification of the Australian body in charge (Wellard-Cole, 2019. p1687). In the overall perspective, the Thomas Borthwicks and Sons Australian Pty Ltd operates on food products. Specifically, the company operates on the meat and livestock commodities that is the definition of its objectives and operations
Identification and Analysis of Business Revenue Units for Thomas Borthwicks and Sons Australian Pty Ltd
The company has a stream of revenue and income units. One of its main revenue generators is beef, fresh and frozen. There are various economic activities on this main revenue stream, including animal slaughtering, preparation of the processed meat, and their byproducts. Also, there is the rendering and refining of the animal fat, meat scraps and bones. As for the company, there is engagement in activities including the packaging and assembling of edible animal products. When looked at from the economic angle, reducing the animal losses and the quality of products is considered one of the essential elements that should be looked into as it results in mitigation of losses (Sinclair et al., 2019, p.2). Thomas Borthwick and Sons Australian Pty Ltd is mindful of the products and is keen on seeing that there is the mitigation of any possibility of excesses that might arise. As per the reports from the company, it has achieved revenues of AU$300,000,000. However, the company’s other income generation activities are marked by animal food manufacturing supplied to the livestock keepers. On the same note, there are meat packaging plants whose service is sold for people who slaughter businesses in Australia and abroad.
Analysis of the Business External Environment
Political Environment
The Australian government and the political class have currently designed the country’s agribusiness sector in readiness for the political and power shift to the Asian continent. Thus, the country is seen to capitalize on bilateral and multilateral trade with its partners worldwide. There is changing political context in Australia regarding agribusiness and livestock in general. For a long, it has been assumed that the urban population has not been keen on the plight of the rural farmers, thereby creating political instability between the two groups. On the international scene, the business has been significantly impacted by the geopolitical instability in various regions. The Australian farmers and businesses, including Thomas Borthwick and Sons Australian Pty Ltd, are confronted with the politics of animal welfare (Locke 2015, p.1). Thus, the company is confronted with political challenges both domestically and at the international levels. Thus, it calls that there is consideration of the stability of the political situation on both fronts.
Economic Environment
Concerning the economic environment for Thomas Borthwick and Sons Australian Pty Ltd, various factors influence the stability and operations. The first aspect is the availability of farm products, which informs its raw materials such as meat and livestock products. Most of the meat processed at the company is locally sourced from Australian farmers. Then there is the aspect of the market that significantly informs the stability of the organization’s revenue streams. Currently, the company is digging into international platforms such as the Chinese, Japanese and American markets for expansion purposes. A market for the products locally and internationally has been essential for Thomas Borthwick and Sons Australian Pty Ltd. It is increasing its revenue streams. Also, there is the income of the customers that have been influenced globally by the pandemic and the income of the consumers. It is essential to learn that there is a decline in the market with the emergence of Covid-19 .
Social Environment Affecting the Business
For the social environment, there is the internal and external factors that are created by the Australian society and the rest of the world. The Thomas Borthwick and Sons Australian Pty Ltd deals in animal products and their operations are on food processing. Thus, it is inevitable that they are confronted with the social issues ranging from the rights of animals to health of consumers of their products. There have been calls from the animal rights activists to see that there is the handling of animals with care. Still on the social context, there are religious beliefs including the Hindu community in Australia who are not taking lightly the aspect of beef and cruelty remitted on animal. Health is one of the social aspects that matters significantly for the consumable products such as meat and other animal merchandize. There should be the consideration of social stability in the production of food products including the meat processing and the manufacturing of the same (Pratley et al., 2020, p.420).Through the consideration of the social environment, the company has been able to win the confidence of people.
Environmental Factors
The environmental factors include the consideration of the pollution coming from the factories owned by the company and the sustainability of the surrounding. Each business, regardless of whether enormous or little, is influenced from interior hierarchical factors as well as, from a few outer variables. Organization have no control on outside climate. Creating showcasing techniques ought to incorporate considering ecological factors so a precise image of the market patterns and climate can be introduced and to comprehend with respect to where the organization is standing. Overlooking ecological angles is like strolling on a way where there are ineffective advertising and lost incomes which can eventually affect the strength of the business brand. Also, there is the consideration for the composition of the environmental concerns arising from the local people and the international bodies.
Technological factors
The utilization of machines in the food business additionally guarantees quality and moderateness. By utilizing machines, it drives down the expenses of keeping the food new and expands usefulness. As indicated by the report, “The ascent of mechanical technology in the food business is a substantial illustration of food tech. The quantity of robots in the European food industry is above and beyond 30,000, while the quantity of robots per 10,000 representatives rose from 62 out of 2013 to 84 of every 2017. Despite the fact that Germany is the biggest market, robot thickness is generally most noteworthy in Sweden, Denmark, the Netherlands and Italy. Australia has stood out a one of the countries that are cognizant of technology and innovation for its production activities.
Internal Organization
One of the factors significantly influencing the internal environment for Thomas Borthwick and Sons Australian Pty Ltd is the resource base. The human resource in the company is one of the advantages the company is endowed with in its general formation. Also, the company is priding itself with the machineries and equipment for processing and manufacturing of food products within the premises. Still, on resources, the company has financial muscles that enables it to purchase the livestock form Central Highlands. As for the competencies, the company has the management from different sections of the country that are sourcing the products. Again, there is marketing department that is geared at promoting the company to various parts of the world. The company has been of high quality within a consistent streak making it one of the highly recognized in Australia.
Competitive Advantage
The main competitive advantage of the Thomas Borthwicks and Sons Australian Pty Ltd is that it has reputational presence globally. Also, the company is market by huge capitation that makes it more monopolistic than the rest in the market.
Recommendations
It is recommended that the company expands its international market base to include the Asian and American markets
The Thomas Borthwick and Sons Australian Pty Ltd should be cognizant of the environmental factors to reduce the challenges from the consumers
The Thomas Borthwick and Sons Australian Pty Ltd should be cognizant of the animal rights to prevent the reputational damage
The Thomas Borthwick and Sons Australian Pty Ltd should increase its Corporate Social Responsibility activities.
Bibliography
Lockie, S. (2015) Australia’s agricultural future: the social and political context. Report to SAF07 – Australia’s Agricultural Future Project, Australian Council of Learned Academies, Melbourne.
Pratley, J. and Kirkegaard, J., 2020. From conservation to automation in the search for sustainability. Australian agriculture in, pp.419-435.
Sinclair, M., Fryer, C. and Phillips, C.J., 2019. The benefits of improving animal welfare from the perspective of livestock stakeholders across Asia. Animals, 9(4), p.123.
Wellard-Cole, L., Watson, W.L., Hughes, C. and Chapman, K., 2019. How effective is food industry self-substantiation of food–health relationships underpinning health claims on food labels in Australia?. Public health nutrition, 22(9), pp.1686-1695.
