marketing audit-biosystems engineering

8/4/2019 Marketing Audit-Biosystems Engineering.

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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
http://www.un.org/esa/sustdev/sdissues/energy/op/beijing_re_egm/beijing_re_report.pdfhttp://www.un.org/esa/sustdev/sdissues/energy/op/beijing_re_egm/beijing_re_report.pdfhttp://www.investinaustralia.com/industry/biotechnology/australia-biotech-sectorhttp://www.investinaustralia.com/industry/biotechnology/australia-biotech-sectorhttp://greencollartalent.com.au/jobindex/green-jobs-index-january-2011/http://greencollartalent.com.au/jobindex/green-jobs-index-january-2011/http://www.greenmarketing.tv/2011/01/26/11-green-business-trends-for-2011/http://www.greenmarketing.tv/2011/01/26/11-green-business-trends-for-2011/http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-impressive-growth-despite-big-falls-in-nsw/http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-impressive-growth-despite-big-falls-in-nsw/http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-impressive-growth-despite-big-falls-in-nsw/http://www.wri.org/chart/aggregate-contributions-major-ghg-emitting-countries-2005http://www.wri.org/chart/aggregate-contributions-major-ghg-emitting-countries-2005http://www.wri.org/chart/aggregate-contributions-major-ghg-emitting-countries-2005http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-impressive-growth-despite-big-falls-in-nsw/http://greencollartalent.com.au/jobindex/australian-green-jobs-advertising-continues-impressive-growth-despite-big-falls-in-nsw/http://www.greenmarketing.tv/2011/01/26/11-green-business-trends-for-2011/http://greencollartalent.com.au/jobindex/green-jobs-index-january-2011/http://www.investinaustralia.com/industry/biotechnology/australia-biotech-sectorhttp://www.un.org/esa/sustdev/sdissues/energy/op/beijing_re_egm/beijing_re_report.pdf


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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=twitter


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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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http://www.ecosystemservicesproject.org/html/publications/docs/MBIs_overview.pdfhttp://www.ecosystemservicesproject.org/html/publications/docs/MBIs_overview.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.

marketing audit-biosystems engineering

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