The paper "PESTLE Analysis of Nufarm" is a great example of a management case study. The report is prepared for Nufarm, an Australia based company which considers an expansion strategy to the international market. The company targets India. The report has tackled the economic, political, foreign direct investment, financial, legal and socio-cultural factors in the Indian economy. The analysis of these macro-environmental factors established that India is a feasible market for Nufarm's international expansion strategy due to the enabling environment in the country. The report is divided into three major segments, the introduction, discussion segment and the conclusion which also includes critical recommendations for the firm.
They are discussed below. According to Nufarm Limited (2015), the company is based in Australia. It specializes in the manufacture and marketing of agricultural crop protection products that aid farmers in enhancing their crop protection against any damage caused by factors such as weeds, pests and disease. The company’ s operations are segmented into two major categories: Crop Protection Seed Technologies The Crop Protection section. This manufactures and sells crop protection products to cushion against harm as previously aforementioned caused.
The Seed Technologies section deals with seeds and seed treatment products. Its operations are based in the following cities: Australia New Zealand Asia Europe Americas Furthermore, the head offices are in Laverton, Melbourne. The company was founded in 1957 by Max Fremder in Melbourne, Australia. The Nufarm businesses are coordinated by an Australian-based global executive panel with wide experience in the business. This report provides the macro-environmental profile of India based on the PESTEL analysis. It aims at developing an international business plan for Nufarm Limited, an Australian company, which is considering entry into the Indian market.
It covers the economic, political, foreign direct investment, financial, legal and socio-cultural factors in the Indian economy. It also compares the findings of the analysis to the prevailing situations in the agricultural industry of Australia, the home country of Nufarm, and the world in general. It presents a current scenario (for the year 2014), and a forecast based on this scenario for the next four years. The scenario is to examine the target country from the viewpoint of Nufarm. Economic Economic stability. According to PWC (2012), the state that is ranked fourth biggest globally with regards to PPP is India.
It has a GDP per capita of US$3,039. The country’ s economy has been considered stable since industrial reform policies of 1991 were established. The Indian economy is diversified into numerous activities that range from IT to subsistence farming. The agricultural sector accounts for 13.9% of the GDP. In the years 2012-2013, this was estimated to be growing at a rate of 7.6%. This was as a result of the growth in the agricultural sector of 2.5%. Other than agriculture, the growth of the Indian economy is also based on the quick urbanization; poverty alleviation; improvements in the vital infrastructure; and policies such as: Industrial licensing reduction Foreign capital liberalization, Formation of FIBP This growth has presented opportunities for foreign investment.
Nonetheless, there are significant challenges that still face the country, despite all the economic progress. They include Budget deficits, High inflation rates Government debt Improving infrastructure Agricultural productivity