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MKT 5000
MARKETING MANAGEMENTAssignment 1
Semester 1 July 2011
Prepared by: KEDAR CHAVAN
Student number: U0061023717
Date submitted: 26Th
August 2011
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Executive Summary
Biosystems Engineering Pty Ltd was incepted in year 1999 under the proprietorship of
Richard Sulman and further registered in year 2008. It was developed to significantly
improve the way todays working of environmental projects and issues. With the ever
increasing concern for environmental problems their product and services offered tremendous
advantages to local environment.
Biosystems Engineering Pty Ltd will be positioned as high-end disseminators in engineering
knowledge to solve systems problems in agriculture, food, forestry, natural resources and the
environment. There is currently no other company that produces and serves this type of
management features they developed.
The potential market for the product and services is very promising. Biosystems Engineering
Pty Ltd has executed over 36 major projects and currently working on the worlds first Short
rotation woody crop (SRC) harvester. The Management Team members have strong
backgrounds in project management, manufacturing, research, analysis, designs and software
development.
The Australian market continues to have an increasing number of eco-friendly firms looking
to enter the market. It must be aware of competition on all levels and maintain its operational
performance if it is to retain its status as the worlds first inventor of SRC and its specialty in
providing its services and products. The companys focus on agricultural, food, forestry,
water and energy sectors is consistent with the market segment. The current product and
service mix is in line with the industry and market forecast. Continual product review,
particularly in renewable source of energy and for additional sources of revenue is needed to
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increase sales and sustain their competition. The current product line would be improved
through a more regional perspective on consumer demand. The company has protected itself
from the volatile market by offering a numerous services and technological support and could
use service advantages to tackle its competitors.
Customers views Biosystems Engineering Pty Ltd as an excellent skill in engineering design
with high quality and honest support to the projects from a value perspective rather than a
price perspective, consequently commercial benefits could be increased. An aggressive
advertising would be required to reduce the risk of competition and a slumping Australian
market. Additional marketing would expand awareness of new programs, generate interest in
recent promotion efforts such as biomass energy, and lead to increased sales of its products
and services. Taking advantage of the companys significant social contributions would
increase global brand image. To keep competitors from entering the Australian market, the
use of non-traditional methods of expansion is suggested. The declining policies for
renewable source of energy from biomass in Australian market and growing global market
should shift marketing focus on overseas markets. Asia and Europe represent majority
market for renewable source of energy. To maintain Biosystems Engineering Pty Ltd
position as the premier purveyor of the finest Biosystem Engineering in the world, a doubling
of efforts toward overseas markets in Europe & Asia is warranted.
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Table of Contents
Executive Summary i
1 INTRODUCTION 1
2 ENVIRONMENTAL SCAN 2
2.1 Market Demographics 2
2.2 Market Trend 3
3 CUSTOMER ANALYSIS 6
4 COMPETITOR ANALYSIS 7
5 STAKEHOLEDER ANALYSIS 8
6 SWOT ANALYSIS 9
7 CONCLUSION AND RECOMMENDATIONS 13
References 15
List of Appendices
Appendix AMacro environmental Framework-PESTLE Analysis 18
Appendix BStakeholder Analysis 21
Appendix CTOWS Matrix 24
Appendix DGAP Analysis 26
Appendix EPorters five forces 28
List of Figures
Figure 1 Green Stimulus Spending 3
Figure 2 Aggregate Contributions of Major GHG emission Countries 4
Figure 3 State By State Job Index 4
Figure 4 Average Job Ads April 2010- January 2011 5
Figure 5 Renewables and Biomass 11
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1 ~ Introduction
The biosystem engineering is an advanced and recently developing field. With the ever
increasing competition in market it is essential to carry out the marketing audit that will help
the company to answer the main three questions:
1. How your marketing decision process compares to best practices?2. How your marketing strategy is currently performing?3. Where your brand stands versus competitors?
Thus marketing audit will help to takes a close look at the current business landscape
internally and externally for Biosystems Engineering Pty Ltd.
This report emphasises on the Environmental Scan (Situational) Analysis, competitor
analysis, customer analysis, stakeholder analysis. It consists of different tools used such as,
PESTLE, SWOT and Five Force Analysis to evaluate the Biosystems Engineering Pty Ltd.
Lastly the TWOS Matrix to identify strategic alternatives for Biosystems Engineering shall
be recommended.
Biosystems Engineering Pty Ltd is a proprietary limited company that is based in
Toowoomba City, Australia. Biosystems Engineering Pty Ltd is listed in 2 categories
including: Business & Professional Associations and Engineers - Consultants.
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2~ Environmental Scan
Biosytems Engineering has expanded from technological design to research design over the
last 12 years. It has its operations in the Brazil, British Columbia and Scandinavia. The
Companys customers are primarily in the enterprise, government and creative markets. The
PESTLE analysis (Refer Appendix A) examines each factor to assess what their impact or
potential impact on the organisation. In this way, they can prepare strategically for any
changes that need to be made in the organisation or simply to have the awareness of the
external market to give them a competitive edge over other firms in the industry. (Kotler,
P.2000)
2.1Market Demographicsa) Geographic:
Australia represents the Companys largest geographic marketplace. Currently, it is
collaborating with Brazil, British Columbia and Scandinavia. Biosystems Engineering Pty
Ltd has not set any geographic target area in particular. By leveraging the expansive reach of
the internet and multiple distribution channels, it might serve both domestic and international
markets.
b) Demographics:The growth rate of the Australia has been between 1.02% and 1.2% from 2000-2011. The
market demands are constantly increasing. Their unique approach to expansion goes beyond
the traditionally accepted methods.
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2.2Market Trends
As per the report of ABARE, 2009, Renewable source of Energy in Australia 2009 has
increased to 13% of which the energy from wood and wood waste is as low as 1% from the
rest sources of energy.
Over the past year 2009, the china market accounted for major green stimulus spending
followed by US. Australian Government contributed USD 2Billion in this sector that is 1% as
compared to China. (Refer Fig. 1). Europe remains the next largest regional market in the world.
But the total contribution to GHG emission Australia along with other countries tops the world
(Refer Fig 2)
Fig 1: Green Stimulus Spending (USD Billion), 2009 (World Resources Institute)
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Fig.2, Aggregate Contributions of Major GHG Emitting Countries: 2005, 2009 (World
Resources Institute)
The number of green job ads in Australia has risen by 7.68% since the last measurement
period on 14 June. This can be compared to a 5.95% increase in all jobs in Australia over the
same period, clear proof that the green jobs market is on average outperforming the wider
employment market. The percentage of green jobs in NSW has fallen from 1.37% of total
jobs in June to 1.21% of total jobs in July (Joe,2011) (Refer Fig 3, 4)
Fig. 3 State by State Job Index, Admin 2011, pg.1
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Fig. 4, Average Job Ads April 2010- January 2011, Admin 2011, pg.1
One possible area for product and service development is within the solar and wind energy,
particularly considering the recent Australian government fascination with renewable source
of energy.
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3~Customer Analysis
A business can be defined in terms of three dimensions: customer groups, customer needs,
and technology (Kotler, P.2000, pg.41).
A recent Greendex (2008) Consumer Choice and the Environment Worldwide Tracking
Survey examined environmentally sustainable consumption and behaviour among consumers
in 14 countries. The findings show that consumers in wealthy countries, those in Great
Britain, Germany and Australia have a Greendex score of 50.2.A recent global study,
conducted by TNS, found that Australians were very keen to go green, but many were not
yet willing to sacrifice greatly to do so. The cost of going green was considered the greatest
barrier for Australians, according to the study.
The Mobium Group has divided Australian Lohasians into four main segments as follows
(Marlow, Mobium 2007 cited in Ferraro, pg.9):
1. LOHAS Leaders: 8% of population
2. LOHAS Leaning: 41% of population
3. LOHAS Learners: 46 % of population
4. LOHAS Laggards: 5% of population
Nobody makes money by segmenting a market. You make money by establishing profitable,
long-term, highly satisfying exchange relationships with brand-loyal customers. (Loudon ,D.,
Stevens, R. & Wrenn, B. 2005, pg. 27).Thus Biosystems Engineering Pty Ltd has to target all
these customers as every customer has its own needs.
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4~ Competition
Competition, a critical factor in marketing management, includes all of the actual and
potential rival offerings and substitutes that a buyer might consider (Kotler, P. 2000, pg.
8).The Australian market is a very competitive sector, the renewable energy market continues
to grow, and an increasing number of firms are looking to enter the market. Australia is
worlds fifth largest biotech center and is led by a number of global players. Northern
Europe, Canada and Japan are leading the sector followed by USA. Beside this the other
emerging companies in Australia using biosystem engineering are Consulting Environmental
Engineers, Association of Consulting Engineers, Watertec Engineering, fishace ecological
engineering, Alternative Conflict Resolution Services, Bowman Agribusiness Consultants
and Kehoe Myers. Countries around the world are now fully aware for the need of biosystem
engineering and the government are funding for their research. Projects such as Conservation
Tillage, Precision Agriculture, Remote Monitoring, Residue Management Project etc. have
already been progressed in USA.
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5~ Stakeholders Analysis
Every organization, large or small, should develop and regularly update a stakeholder
analysis. Even with a detailed stakeholder analysis, it is still possible that stakeholders can
impact an organization in ways that were not anticipated. The purpose for conducting a
stakeholder analysis is to identify and assess potential impact and then plan strategies related
only to those specific stakeholders that warrant attention. It has many stakeholder
competitors, vendors, suppliers and employee Groups. (Refer Appendix B)
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6 ~ SWOT Analysis
StrengthsA Disciplined Innovator: Biosystem Engineering Pty Ltd is a disciplined innovator. The
company effectively manages its innovation timeline generating consistency in technology
and research. The company introduced the worlds first bionic beaverthat was a modification
to old harvester of 1990. Beside this there is on farm transport system that is under
development which will give efficient production rate.
Staff: It has experienced staffs from various fields of engineering and science that helps to
analysis the model, prototype, research, data collection, research. It has also maintained its
department for writing news and articles in the journals for common people to understand the
importance and working of their inventions.
Clustering of company units. With the continued growth of the biosystem engineering
market, the company has looked to expand its business, including those areas where it has an
established presence. It has clustered varies of expertise such as project management, forensic
engineering, analysing and evaluation of data, research equipment.
Miscellaneous: They have an amazing website with details about their mission and more.
The website is well designed and explains the Biosystem Engineering concept very well. It
has a commitment to invent technologies to provide safe and plentiful food to eat, pure water
to drink, clean fuel and energy, and a healthy and safe environment satisfying and delighting
its customers, and caring about their communities and environment. These factors, in large
part, are why customers are attracted to the company.
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WeaknessesReliance on Australia market. Biosystem Engineering Pty Ltd. headquartered in
Queensland, derives approximately all of its revenue from its domestic Australian market.
The company is not an international brand; consequently it should think of generating a
greater proportion of revenues from outside the Australia. Should the companys Australian
unit under-perform due to economic conditions or increased levels of competition, its
performance will be materially affected.
No Patents and short comes for its innovation. An important long-term risk to the
companys innovation is lack of patents. Diminishing return from innovation, one of the
companys competitive strengths, would have a significant adverse effect on the companys
performance .Beside this bionic beaver can only shop trees at a limited height with limited
diameter of twigs. It is more concentrated in eucalyptus, and then the questions are for other
crops such as corn, wheat etc.
Independent Body. The company is running independently without the intervention and
support of governmental and other local bodies, this would lead into financial crises due to
investment of heavy capital in the new invention and lack of proper market to sale its
product.
Opportunities
Growth in Green market. The specialty renewable source of energy will accounts for
roughly 14% of the world market, of which 10% will be contributed by biomass (refer Fig.5)
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Fig.5 ,World Energy Consumption Million tons of oil equivalent (Mtoe),Expert Group for
Renewable Sources of Energy 2005, pg.11
Market expansion: Biosystem Engineering Pty Ltd has expanded itself by signing an
agreement with the Brazil, British Columbia and Scandinavia entities. The Latin American
concern for renewable bioenergy from biomass will be a good opening .Beside this Asian
country such as China, India are constantly in search of bioenergy rather than consumption of
fossil fuels and contribute to the global climate change.
ThreatsVolatile bioenergy markets: The availability and supply of biosystem engineering
experience high volatility. Its requirements for quality standard and specification create
complications within the producing countries. Barriers may include; weather, and political
and economic conditions which may adversely affect the companys business. In the past, the
actions of some organizations and associations have affected the biosystems engineering Pty
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Ltd. Besides this European and other Asian countries have progressed a lot in the renewable
source of energy and might be this new technology of Biosystem engineering might become
obsolete.
Slowing Australian retail sales. The company faces long-term concerns regarding its
Australian sales growth potential. If current growth continues, saturation levels within the
Australia will be reached soon.
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7~ Conclusion and Recommendations
Biosystem Engineering Pty Ltd has been performing at its paramount for the services towards
society and environment. Based on the SWOT analysis and environmental scan; the TOWS
Matrix and GAP Analysis (Refer Appendix C, D) for Biosystems Engineering Pty Ltd has
been chalked. Also the Porter Five Force Analysis (Refer Appendix E) has been
recommended. Its current marketing decisions have been extremely effective and timely.
They are targeting the global market, primarily in the Brazil, British Columbia and
Scandinavia. They have also improved their technology and protected themselves from a
slow Australian market. Their products and services have been consistently updated based on
consumer demand. Success can be somewhat deceiving. It may have left money on the
table by not being more aggressive, more targeted to local segments and not concentrating
their efforts toward the global market.
Good mission statements focus on a limited number of goals, stress the companys major
policies and values, and define the companys major competitive scopes (Kotler, P. 2000, pg.
41) thats suits Biosystems Engineering Pty Ltd Mission Statement: to develop and
disseminate engineering knowledge to solve systems problems in agriculture, food, forestry,
natural resources and the environment., and its strategic planning seem to be in line. The
objectives for sales and revenue have consistently been achieved. The critical issue for it is
the decline of the Australian market for biomass energy and no firm government policies.
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To take advantage of the companys strengths and considering the weaknesses, opportunities,
and threats the following marketing strategies are recommended.
Revamp product lines to meet specific location consumer demands both regionally and
globally.
Use aggressive advertising to reduce the risk of increased competition
Leverage the company focus on Corporate Social Responsibility in marketing its brand
image.
Focus expansion on additional overseas markets.
Continue to expand in the Australian market to mitigate the threat from competitors.
Continue to add additional products and services to increase sales and meet higher level
customer needs.
Expand its search for new stakeholders to invest a handsome capital for its research and
inventions.
Patented its entire product and utilise its inventions firstly in local market.
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References:
1. Expert Group on Renewable Energy 2005,Increasing Global Renewable Energy Market
Share Recent Trends and Perspectives, viewed on 14 August 2011,
http://www.un.org/esa/sustdev/sdissues/energy/op/beijing_re_egm/beijing_re_report.pdf
2. Editors,Australia- Biotech Sector, viewed on 17 August 2011,
http://www.investinaustralia.com/industry/biotechnology/australia-biotech-sector
3. Admin 2011,Green Jobs IndexJanuary 2011, viewed on 10 August 2011,
http://greencollartalent.com.au/jobindex/green-jobs-index-january-2011/
4. Kerry Given 2011,11 Green Business Trends For 2011, viewed on 11 August 2011,
http://www.greenmarketing.tv/2011/01/26/11-green-business-trends-for-2011/
5. Joe 2011,Australian Green Jobs Advertising Continues Impressive Growth Despite Big
Falls in NSW, viewed on 10 August 2011,
http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-
impressive-growth-despite-big-falls-in-nsw/
6. Kevin A Baumert, Tim Herzog and Jonathan Pershing 2005,Navigating the Numbers:
Greenhouse Gas Data and International Climate Policy, quoted in Editor 2009,Aggregate
Contributions of Major GHG Emitting Countries: 2005, viewed on 11 August 2011,
http://www.wri.org/chart/aggregate-contributions-major-ghg-emitting-countries-2005
7. HSBC 2009,U.S. Climate Action, quoted in Editor 2009, Green Stimulus Spending By
Country, viewed on 11 August 2011,http://www.wri.org/chart/green-stimulus-spending-country
Kotler, P. 2000,Marketing Management, Millenium Edition, 10th edn, Pearson, USA.
15
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8. Loudon, D., Stevens, R. & Wrenn, B. 2005,Marketing Management Text and Cases, 1 st
edn, Haworth press, New York.
9. Matt Cawood 2010,Biomass harvester destined for overseas, viewed on 10 August 2011,
http://fw.farmonline.com.au/news/nationalrural/machinery-and-
equipment/machinery/biomass-harvester-destined-for-
overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitter
10. Editor 2009,Appointment means business, viewed on 10 August
2011,http://www.getfarming.com.au/pages/farming/news_view.php?nId=9030232
11. Web Design 2008,Biosystems Engineering, viewed on 3 August 2011,
http://www.biosystems.com.au/home/
12. Marisa Wikramanayake 2010,New Mallee Harvester prototype reaps accolades, viewed
on 10 August 2011, http://www.3017-new-mallee-harvester-prototype-reaps-accolades.html
13. Melanie Ziegler 2011,Agricultural Machinery and Farm Technology, viewed on 10
August 2011 http://www.Agricultural Machinery and Farm TechnologyNDSU.htm
14.Pink, B. 2010,Australias Environment: Issues and Trends2010, ABS, Australia.
15.Editor 2010, Clean Technology Fund, viewed on 13 August 2011 ,http://www.Clean
Technology Fund - Climate Funds Update.htm
16.Joely Taylor Colin Stucley 2011,Growing a green fuel industry in Australia, CISRO
Publications.
16
http://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://www.biosystems.com.au/home/http://www.biosystems.com.au/home/http://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitterhttp://fw.farmonline.com.au/news/nationalrural/machinery-and-equipment/machinery/biomass-harvester-destined-for-overseas/1966481.aspx?src=rss&utm_source=twitterfeed&utm_medium=twitter8/4/2019 Marketing Audit-Biosystems Engineering.
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17.Stuart Whitten, Martin van Bueren and Drew Collins1,An Overview of Market-Based
Instruments and Environmental Policy in Australia, viewed on 15 August 2011,
http://www.ecosystemservicesproject.org/html/publications/docs/MBIs_overview.pdf
18.D. Briassoulis, P. Panagakis, E. Nikopoulosv (ed.) 2008, Education and Research in
Biosystems Engineering in Europe, ERABEE, Greece.
19.Swiss Agency for Development and Cooperation SDC - Natural Resources and
Environment Division 2007,BIOFUELS, OPPORTUNITY OR THREAT TO THE POOR?
viewed on 14 August 2011,http://www.worldbiofuelsmarkets.com/reports/SwissReport.pdf
20. Carla Ferraro 2009 (ed.), Retail Therapy- The Green Consumer, viewed on 13 August
2011,http://www.buseco.monash.edu.au/centres/acrs/research/whitepapers/the-green-
consumer.pdf.
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Appendix A
MACROENVIRONMENT FRAMEWORKPESTLE ANALYSIS
2.1 Political Factors
Operating in a globalized environment with collaboration around the globe (Biosystems
Engineering Pty Ltd now collaborates in Brazil, British Columbia and Scandinavia ), its
performance is highly influenced by the political and legislative conditions of these countries.
There are still no clear cut policies for the biomass energy industries from the political
aspects. In an industry with a typically high investment for development of such machineries
requires a strong and confidence with a leadership to support its usage in future
2.2 Economical Factors
Economic factors are of concern to Biosystem Engineering Pty Ltd, because they are likely to
influence demand, costs, prices and profits.
Although employment for the green business in Australia is still growing and is expected to
contribute greater amounts to Biosystem Engineering profits over the next few years, the
company is still highly dependent on the Australia market. Hence, Biosystem Engineering
would be badly affected by any slowdown in the Australian Green market and are exposed to
market concentration risks.
2.3 Social/Cultural Factors
The green consumer market is becoming a larger and trendier demographic in Australia.
(Foot, G. 2008 cited in Ferraro, pg.1).
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Biosystems Engineering Pty Ltd have, therefore, incepted for green technology. Indeed, a
survey undertaken by the Australian Bureau of Statistics has shown that people with a high
income and/or education level are more likely to express concern about the environment than
those with lower incomes and/or education (ABS 2001).With nearly 4 million Australians (26
per cent of the adult population) LOHAS aligned, it has clearly become a mainstream
marketing segment (Marlow2007 cited in Ferraro pg.3).The type of goods and services
demanded by consumers is a function of their social conditioning and their consequent
attitudes and beliefs. Consumers are becoming more and more aware of green issues, and
their attitudes towards environment are constantly changing.
2.4 Technological Factors
Technology is a major macro-environmental variable which has influenced the development
of many of the Biosystem Engineering products. The new technologies benefit both
customers and the company: customer satisfaction rises because goods are readily available,
services can become more personalised and shopping more convenient. The launch of the
Bionic Beaver initiative provided the shift that is now apparent in the management of
renewable source of energy (John Slade, 2010). Biosystem Engineering Pty Ltd utilise the
following technologies:
Novel Design Modelling Finite Element Analysis Rapid Prototyping Forensic Engineering
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2.5 Legislative/Legal Factors
Various government legislations and policies have a direct impact on the performance of
Biosystems Engineering Pty Ltd. The Carbon Pollution Reduction Scheme (or CPRS) that
was a proposed cap-and-trade system of emissions trading for anthropogenic greenhouse
gases, due to be introduced in Australia in 2010 by the Rudd government, as part of its
climate change policy that marked a major change in the energy policy of Australia. But still
there are no policies supporting the biomass, hence there are chances of failure of this project.
2.6 Environmental Factors
Environmental issues have gained increasing attention in the public arena in Australia over
the last twenty or more years. Market Based Instrument (MBIs) is becoming a mainstream
policy instrument for managing a wide range of environmental problems. Governments
appear to be undergoing a paradigm shift in their views on what constitutes good
environmental policy, with greater emphasis being placed on the role of decentralised
instruments to achieve change within industry.
But there is a risk that environmental targets will be set by government without a
comprehensive assessment of all the costs and benefits implied by the target. Poorly designed
trading programs can impose high transaction costs, particularly where the responsibility of
monitoring and verification is also devolved. Hence, by recognizing this trend within the
broad ethical stance, Biosystem Engineering Pty Ltd social responsibility is concerned with
the ways in which an organization exceeds the minimum obligations to stakeholders specified
through regulation and corporate governance.
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Appendix B
Stakeholder Analysis
Stakeholder Stake in
the project
Potenti
al
impact
on
Project
What does
the Project
expect the
Stakeholder
to provide?
Perceive
d
attitudes
and/or
risks
Stakeholder
Managemen
t Strategy
Responsibility
Board
Members
Determines
company
policy,
mission,strategies
procedures,
inventions,
and goals
High Experienced
staff to be
involved in
user group
and user
acceptance
testing.
Commitment
to
implementing
change.
Lack of
clarity
about
Market.
Views
project
team as
too
technical
ly
oriented.
Involvement
in Project
Steering
Board,
Regular
updating
meeting with
employees
.Inventing
and research
Managing
Director
StaffMembers
ManagesCompany
staff who
will operate
the new
system and
will carry
out analysis
of data ,
research,evaluation ,
modelling,
setting
standards
,designing,
data
collection ,
prototyping
High Commitmentto invent.
Workswith
interest
and full
efficienc
y.
Involvementin briefing
sessions at
quarterly
company
meetings.
Project Team
(Design
Engineer,
Prototyping
Engineer,
Biometrician,
Publisher etc)
Clients &Partners
Supportsthe project
High Concernabout
Involvementin user
Future FarmIndustries
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,Universities
, legal firms
and in
research
sales of
the
product
and
services.Beside
this
success
of their
product
in the
market.
groups. Cooperative
Research
Centre
(FFICRC),
National
Centre for
Engineering in
Agriculture
(NCEA),
Queensland
Department of
Primary
Industries and
Fisheries,
Agline
Bougault
Industries
Croplands
Kondinin
Group
Country Water
Long Howland
Lawyers and
Advisors
Wagga Wagga
City Council
Challenge
Implements
Airservices
Australia
Cross Slot
Gessner
Industries
AgGuide
Carbon
Grazing
Leica
Geosystems
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Rural
Industries
Research and
Development
Corporation
University of
Southern
Queensland
Kenro Metal
Services
Rainspan
Irrigation
QB Industries
Agrowplow
Ranger
Loaders
Law firms
Suppliers
/Vendors
Supply of
Materials
High Provide an
efficient and
smooth
supply of the
materials at
the
competitive
prices
Lack of
commit
ments to
the firm ,
assuranc
e of
supply
Involvement
in meetings
and
discussion
NCEA,
Applied Laser
Groups Pty
Ltd, Tasweld.
Government
Bodies
Funding High Fund and
legal support
with new
bills to pass
in the
legislation
Lack of
vision
for
further
develop
ment in
the
biomass
energy
Involvement
in the
political
matters
Australian
State ,
Western,
Federal Govts.
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Appendix C
TOWS MATRIX
External Opportunities (O)
1. Growth in Greenmarket.
2. Market expansion:
External Threats (T)
1. Volatile bioenergymarkets
2. Slowing Australianretail sales.
Internal Strengths (S)
1. A DisciplinedInnovator
2. Staff3. Clustering of
company units
4. Miscellaneous:
(Maxi-Maxi Strategy)
1. Penetration in newmarket around Asia
and Europe
2. Recognition of itsbrand
3. High brand loyalty4. New development
and research
5. Good services to itsclient
(Maxi-Mini Strategy)
1. Increase in thecampaigning of its
product and services
2. Regular check on themarket in Australia
and new policies for
biomass energy and
other green issues.
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Internal Weaknesses (W)
1. Reliance onAustralia market
2. No Patents andshort comes for its
innovation.
3. Independent Body.
(Mini-Maxi Strategy)
1. Explore marketoutside Australia to
gain the value of the
product and services
2. Patenting itsinvention
3. Working withgovernment
organisation or
finding investors
from the rest part of
world
(Mini-Mini Strategy)
1. Working with firmswho has support from
the government
2. Suspending someoperations till it
recognises its value
so as to receive funds
3. Creating awareness inthe biomass energy
among the local and
state official bodies.
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Appendix D
GAP Analysis
Sales gapAustralian Market has been the most crucial for the sales of the biosystems Engineering
Products and services. But they lack their concentration globally were the market is wide
open and countries are ready to invest huge in the renewable source of energy.
Customer loyalty gapIn developing the biosystems Engineering Pty Ltd the desired state was greater customer
loyalty. It can be observed that loyalty could only be achieved if there is something to keep
customers returning to environment. But Biosystem Engineering lacks its customer loyalty in
its new invention of bionic beaver as it is unable to make market in Australia.
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Security controls gapPatenting its product and other technical data has been lacked in security.
Management Understanding GapThe invention of bionic beaver was not success in Australia. The management thought that
the biomass industry will be flourishing with new secured policies from the government, but
still the picture remains unclear.
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Appendix E
PORTER'S FIVE FORCES
Threat of New EntrantsThe Australian Biosystem engineering market is primary dominated by few competitors.
Over the last 20 years, the green market has been transformed into the supermarket-
dominated business. Majority of large chains have built their power due to operating
efficiency and major marketing-mix expenditure. Hence, nowadays it possesses a strong
barrier for new companies who desire to enter the green market. For instance, it becomes
rather difficult for new entrants to raise sufficient capital because of large fixed costs and
highly developed supply chains. Other barriers include economies of scale and differentiation
(in the provision of products or services with a higher perceived value than the competition)
achieved by Biosystems Engineering Pty Ltd seen in their aggressive operational tactics in
product development and better distribution.
Bargaining Power of SuppliersThis force represents the power of suppliers that can be influenced by bio system engineering
chains and that fear of losing their business to the large countries in the world. In return, US
& Europe based suppliers are also threatened by the growing ability of Biosystem
Engineering in Australia to source their products from abroad at cheaper deals. The
relationship with sellers can have similar effects in constraining the strategic freedom of the
company and in influencing its margins. The forces of competitive rivalry have reduced the
profit margins for companys chains and suppliers.
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Bargaining Power of CustomersPorter theorized that the more products that become standardized or undifferentiated, the
lower the switching cost, and hence, more power is yielded to buyers Porter M. (1980).
Biosystems Engineering Pty Ltd famous commercial interest and cost efficiency remains the
most successful customer retention strategy that significantly increases the profitability of its
business. In meeting customer needs, customizing service ensure low prices, better choices,
new inventions , research , accessible data enables to control and retain their customer base.
In recent years a crucial development in usage of renewable source of energy has occurred
due to a large demand of consumers involve in manufacturing energy from biomass.
Threat of SubstitutesGeneral substitution is able to reduce demand for a particular product, as there is a threat of
consumers switching to the alternatives Porter M. (1980). In the biosystem engineering
industry this can be seen in the form of product-for-product or the substitute of need and is
further weakened by new trends, such as the ways of development of new technologies and
other inventions making the previous one obsolete.
Bargaining Power of CompetitorsThe biosystem engineering environment has seen a very significant growth in the size and
market dominance of the larger players, with greater inventions and the utilisation of a range
of formats and data specifications, which are now prominent characteristics of the sector. The
highly competitive market has fostered an accelerated level of development, resulting in a
situation in which US, Europe, Japan, China Biosystem Engineering had been innovative to
maintain and build market share. Such innovation can be seen in the development of a range
of trading formats, in response to changes in consumer behaviour.
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