Business Strategy - company analysis Assignment

Business Strategy - company analysis - Assignment Example Over the period of time, Foster’s Group has expanded into its existing as well as current markets by acquiring new businesses and developing its existing business lines. Due to this, firm has been able to launch different brands of beer, wine and soft drinks in Australia and other parts of the world. It is also critical to note that the Foster’s Group’s wine business specially in US is not doing well and it has also written down the value of the division in order to recognize the losses incurred. Firm has also been charged for the violation of the occupational health and safety Act of Victoria, Australia and was fined heavily due to the death of one of the workers. This report will present an external and internal analysis of Foster’s Group besides identifying three important strategic issues faced by the firm. This report will also identify two important strategic actions which firm can undertake beside presenting the recommendations. External Analysis Tw o of the most important tools for performing external analysis include PESTLE and Porter’s Five Forces Analysis. ... Australia has one of the richest sources of natural resources and it is because of this reason that most of the foreign investment comes in the mining and minerals sector. During the current financial crisis, Australian economy remained well guarded due to the fact that majority of its trade takes place with China. (Economy Watch, 2011) Social Factors Total population of Australia is over 21 million1 with majority of population falling in the age bracket of 15-64 years. Such large population chunk therefore provides a really available market for the beer and other associated products manufactured and marketed by Foster’s. 92% of the population of the country is based upon White Population whereas 7% are Asians and 1% of the population comprises of aborigines. These statistics suggest that the social factors may be conducive for the firm to conduct its business with ease. Technological factors Industry for Beer, Wine and Soft Drinks does not particularly depends upon the techno logical changes however, technology can play its part in terms of advertising and marketing the products. Legal Factors Courts in the country are independent and put a real check over the unethical and illegal practices of the companies. Legislations such as occupational health and safety as well as anti-trust laws are in place to ensure that health and constructive competition exists within the economy. Environmental Factors Environmental factors in this industry does not directly affect the industry however, the overall impact of the industrial waste as well as the dumping of empty beer cans can pose significant threat to the environment. Porter’s Five Forces Threat of New Entrants This industry