Essays on Corporate Strategy (Oz Choc Case) External Landscape Analysis Assignment

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External LandscapeIn order to understand the problems and issues faced by Oz Choc, it is important to conduct an external landscape analysis within which the organisation is operating. The landscape is usually analysed on the basis of political, economic, socio-cultural and technological elements. It has been seen that every member of an organisation, right from the competitors to customers, and executives to employees, are influenced by the organisational landscape and respond accordingly. Therefore, it is necessary to study the organisational landscape carefully so that misleading interpretations are avoided (Ashkanasy et al 2000).

This analysis of the external landscape would help Oz Choc to find out solutions to the deadlock created by international organisations and Commonwealth countries on procuring cocoa from Ivory Coast. Major industry playersFor understanding the issues faced by Oz Choc and creating strategies to overcome them, it is imperative to also consider the various players involved in the chocolate industry. It has been seen that in the current organisational landscape, the following industry players are influencing the industry: Australian Government, farmers, shareholders, workers, consumers, Commonwealth Countries, other competitors, United Nations, Government of Ivory Coast, French Government, various non-governmental organisations, fair trade bodies and other emerging cocoa producing countries and pirates. Political landscapeThe landscape in this case study outlines the regressive economic policies of a country, Ivory Coast, in a setting of a globalised modern economy.

It says that the Ivory Coast government does not believe in the practice of free trade policies (Krugman & Obstfeld 2008). According to free trade policy, every trader is allowed to transact independently without any intrusion from the government. This policy helps in providing the traders and their partners with equal gain.

However, the Ivory Coast government regulates the cocoa bean market and only pays a fixed price to the farmers. Further, it buys the product through the established local networks, resulting in monopolisation, which is defined as a practice to dominate the market by excluding the competitors completely (Motta 2008). This situation has been termed unacceptable by the Australian government and various other Commonwealth countries, who are considering launching a military action against Ivory Coast in the next six months. In case of a war, the chocolate industry is likely to suffer losses on various counts.

First and foremost, it would lose out on about 43 per cent of its cocoa supply and therefore, may not be able to meet the demand for its products. This may result into the chocolate companies loosing its customers. Drucker (2007) believes that as a modern business has become a part of the society, any uprising affecting the society such as war or local unrest would also impact the industries working within the society in a major manner.

Therefore, due to the war prices of cocoa may increase substantially, which would in turn impact the bottomline of the chocolate companies. Lastly, the war may continue for a long time, in which case these companies would have to source cocoa from other countries at higher prices. The consortium is also thinking of boycotting, establishing government legislation to put 'made by slaves' labels on products and ensuring international co-operation to improve the working conditions of the farmers. In case such labels are put on the products of the chocolate companies, these companies would incur not only severe financial losses but also loss of their reputation.

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