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STRATEGIC MANAGEMENT
Table of Contents
Introduction    2
Background Information    2
Using Macro Environment Analysis    2
Political Aspect    2
Economic Aspect    3
Socio-cultural    3
Technological Aspect    3
Environmental Aspect    3
Legal Aspect    3
Conclusion Based on PESTEL Analysis    4
Using Porter’s Five Force Model    4
Rivalry in the Market    4
Threat of New Entrant    4
Threat of Substitute    5
Bargaining Power of the Suppliers    5
Bargaining Power of the Buyers    5
Conclusion Based on Porter’s Five Forces Model    5
Conclusion    6
References    7
Introduction
The decision-making in business caters its effectiveness from the data collected through strategic analysis of the macro and microenvironment of the business, the priority of the business organisation and the role of the factors in the market. A proper assessment of business environment makes the developed strategies and their implementation easy and effective, for which accurate data is, required which can only be collected using strategic analysis tools such as PESTEL, Porter’s Five Forces and many more. In the cu
ent report, PESTEL and Porter’s Five Forces are used for proper strategic analysis of the market in which The a2 Milk Company operates.
Background Information
Although started as a local-based infant milk manufacturer, in Australia, The a2 Milk Company gradually reached overseas markets such as United Kingdom, United States of America and China. The company is cu
ently David Hearn, Julia Hoare and Jayne Hrdlicka, acting as the Chair and Executive director, Deputy Chair and Independent, Non-Executive Director. The company was established in 2000 and grasped the attention of the disclosure of the fact that majority of the cows in dairy farms produce a1 protein, from which a2 protein, which is offered by genetically modified cows at The a2 Milk Company is better. The focus on better health and challenging the traditional dairy practices changed the perspective of the customers, however, the comments on the benefits of a2 protein milk, drew in controversies and legal issues, leading to slow growth of the company (The a2 Milk Company, 2019).
Using Macro Environment Analysis
Political Aspect
The political condition of Australia, similar to that of other countries around the globe is affected by the factors, namely ‘Donald Trumph’ and ‘Brexit’. Alongside the global slowdown of the economy and the issues arising out of immigration and globalisation, are forcing Australian politics to adapt the approach of neutralisation. As Australia is approaching its major elections in 2019, the political agendas discussed are focused more on climate and resource management issues than promotion of start-ups (ABC News, 2019).
Economic Aspect
The Australian economy has retained its strong growth ratios, which have been reflected through the increasing amount of public investments, higher purchases and increase in commodities’ sale. The country is also benefitting its population through strong growth of GDP, which also open up the opportunities for private sector investment and growth (Property Update, 2019).
Socio-cultural
In terms of the socio cultural aspect it can be seen that Australia has a flexible and modern culture, which has the tendency to adapt and em
ace new trends, given that they are beneficial for country and self. Businesses with proper evidences and suitable quality-price ratio ca
y the potential of earning fruitful profit.
Technological Aspect
Although, Australia is not the leader country for technological innovation and availability it is one of the leading countries....