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Australia Biodiesel Group Limited

Business Policy and Strategy 1

AUSTRALIA BIODIESEL GROUP LIMITED

Business Policy and Strategy MGS3301



The University of Queensland

Business Policy and Strategy 2
Table of Contents pg
0.1 Executive Summary 3
1.0 Introduction 4
2.0 Australian Biodiesel Group’s Core Business 4-5
3.0 External Environment Analysis 5
3.1 General Environment Analysis 5-6
3.2 Industry Analysis 7-8
4.0 Internal Analysis 8
4.1 Key Resources 8
4.2 Capabilities 11
5.0 Summary of Key Issues 11-12
6.0 Australian Biodiesel Group’s Strategic Direction 12-14
6.1 Potential Risks of Strategic Direction 14
7.0 Strategic Options 15
7.1 Exit Strategy 15
7.2 Pursue Current Direction Strategy 16
7.3 Partnership Strategy 16-17
7.4 Location Strategy 17-18
8.0 Recommendations and Implementation 18-19
9.0 Conclusion 19
10.0 References 20


Business Policy and Strategy 3
0.1 Executive Summary
The purpose of this report was to strategically analyse the company Australia Biodiesel Group Limited (ABG), considered in the context of the biofuels industry. A PESTEL analysis was used to assess the firm’s general environment, suggesting that on the whole, the macroeconomic environment in which ABG operates is not overly nurturing of the endeavours being pursued. Porter’s (2001) Five Forces analysis was used to examine the attractiveness of the industry environment, which was found to be reasonably unattractive to operate in. Barney’s (1991) VRIN model was implemented in order to analyse the company’s resources, capabilities and core competencies. Findings of this analysis propose that while ABG is comprised of some valuable resources, they do not lead to a sustained competitive advantage. It appears the company does have strategic...