Agrana Company Case Study

1. Introduction

In this globalized society, there is now growing pressure for companies to compete against their competitors locally as-well-as globally. Thereby, strategy within the company is fairly important in order to survive. In any form of business or organisation, strategy management and thinking are the most vital activities embarked on. The determination on how successful a business could be depends on how these strategies are carried out (Campbell, Stonehouse and Houston 2002). AGRANA Food Company is a very good example of a superior business strategy as AGRANA has grown swiftly over the past few decades from a local supplier to a global player (Peng 2009). The discussion on how AGRANA has done such an exceptional job in operating their company from an Industry-based view, Resource-based view and Institution-based view were discussed in this paper. Other than that, the possible challenges that AGRANA might face, in future, were also incorporated.

1. Industry-based view

The Porter's five forces framework is applied to help in the analysis of the competitiveness of AGRANA. The effectiveness of establishment for AGRANA was indeed well-off. Just after the establishment of AGRANA, there was integration between the Central and Eastern Europe (CEE) in Western Europe in 1989 (Peng 2009). This gave AGRANA the opportunity to invest in CEE through Foreign Direct Investment (FDI) (Peng 2009). In order to compete with the greater numbers of competitors from Western Europe, it is necessary for AGRANA to increase their economies of scale. AGRANA has more benefits as compare with other western competitors because of their informal bonds with the CEE. As a result of this informal bond, it provides AGRANA better knowledge about the market which enables AGRANA to response more efficiently towards the opportunity.

It was assumed that the competition in this industry was correspondingly