The document provides an analysis of the macroenvironment of the Australian wine industry and identifies key drivers of future growth. Some factors favoring growth include increasing incomes in Australia and Asia, Australia's reputation for quality wine, and technological advances. Factors dampening growth include stagnating incomes in other markets and water availability issues. Moderate growth is expected in the next three years primarily due to rising exports to Asia, especially China.

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BSUN3125 Strategic Management
Macro-environment analysis for the
Australian wine industry
- An illustrative example
• Purpose of this analysis
• Focus of this analysis
– The Australian wine industry
• Detailed description and analysis
Factor Issue Opp/Threat Effect on growth
P
E
S
T
E
L

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Macro-environment summary for the Australia wine industry
Factor Issue +/- effect on growth
Political Free trade agreement with China, reducing wine
import tariff to China from 18% to 0 in 2019
+
Economic Increased disposal income in Australia +
Variable international economic growth + (China/Asia/US)
- (Rest of the world)
Low exchange rate (AUD$/US$) +
Many international lower cost competitors emerging -
Worldwide grape surplus -
Social/cultural Quality wine becoming more fashionable
worldwide +
Australia seen as desirable worldwide +
Australian wine is fashionable overseas + China

3. Water and other non-alcoholic alternatives seen as
more healthy
-
Low population growth -
Technological Increased variety of wine products +
More application of marketing concepts +
Increased focus on quality +
(Green)
Environment
Increased water controls reducing irrigation water
availability
-
Discussion
Factors favouring future
growth include increasing
disposable income in Australia,
China and Asian countries; the
continued exposure to ‘fresh’,
‘clean’ and ‘innovative’ value-
for-money wines from
Australia; technology changes
in production that improve

4. production efficiency, quality
and consistency; Australia
remaining fashionable and
desirable worldwide.
Factor dampening the future growth
include Increasing disposable income
is not being replicable in the major
export markets of the US, UK and
some European countries; Low prices
will exist due to continued
worldwide grape surplus.
The low population growth in major
target markets will also dampen
future growth prospects, except for
China.
Lack of water availability and
pressure on irrigation in the future
will substantially reduce future
supply.
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Key drivers for future growth
• Key drivers of future growth include the
political, economic and sociocultural factors.
They include the free trade agreement with
China that gradually reduce the wine import
tariff from up 18% to zero in 2019, the

5. economic growth in China and US is another
key driver, and the customer value for quality
wine.
Conclusion
• In summary, moderate growth (slightly higher
than Australia’s GDP growth rate) in the next
three years is expected due exclusively to high
export growth in Asian, particularly China, and
other developing market.
Source: Adapted from Hubbard, Rice and Galvin
(2015)
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BUSM3125 Strategic Management
Detailed assignment guide
Semester 1, 2017
Assignment 1 (individual assessment): Strategic Analysis

6. Weighting This assignment accounts for 35% of the assessment
in this Course.
Due Date Monday, Week 7 (10
th
April)
Due Time By 7.00pm
Place via RMIT Blackboard electronic submission
Format Report
Length 1500 - 2000 words, 1.5 line spaced, 12 point Times New
Roman.
Note: The word count does not include references or appendices
You will work individually to conduct a strategic analysis, and
write a report on a real-life business. Please
note that this report will focus on business-level strategy.
The assessment will be discussed in the Modules 1 and 2. You
are required to conduct strategic analyses for
Myer, an Australia’s department store group
(http://www.myer.com.au/), for this assignment. You are
advised
to conduct research such as Internet searching for industry and
media reports, and browsing the website and
annual reports of Myer and other relevant organisations.

7. Write a 1500 - 2000 word report, excluding references and
appendix. In this report, you are required to
perform the following tasks:
1. Describe briefly the background information (strategic
context) of the organisation (Myer). This
information should be brief and relevant to the discussion of
your assignment and thus may include
ownership, history, size, business scope, major
products/services, and major markets of the
organization selected.
2. Conduct a macro-environment analysis for the entire industry
within which the organisation operates.
You should use the analytical framework provided in the
textbook. Foci will be placed on the
understanding of the purpose of this analysis, the identification
of key factors and their implications
in terms of key opportunities and threats, and the discussion of
their overall impact on the
industry growth in the future. Draw your conclusion based on
your macro-environment analysis.

8. 3. Undertake an industry (competitive) analysis using Porter’s
5-forces model. You are required
to pay attention to the purpose of this analysis, the inter-
connectedness of different aspects
of the competitive forces, the links between the competitive
forces and macro-environment,
and their overall impact on the industry and the organization
selected in terms of main
driving forces in the competitive environment. Draw your
conclusions based on your five-
force analyses.
4. Identify those resources and competences of the organization
that are likely to provide sustainable
competitive advantage. Justify why these resources and
competences can be regarded as strategic
capabilities using the four criteria covered in the textbook.
http://www.myer.com.au/
2
References should be utilised within this Report to validate the
information presented, and should be drawn

9. from academic sources and organisational information such as
the website and annual reports. The business
press may be used to identify relevant issues.
Learning outcome/s and capability development
This assessment is deliberately designed not only to test what
you know, but also to build your
lifelong learning skills. The skills that you will be developing
include:
All these are valuable skills you will need in future
employment. How well you are able to
demonstrate these skills and knowledges will impact not only on
you and your group (in terms of a
mark) but also has the potential to influence the future of the
case study organisation. Your work
matters.
Specifically, completing this assignment can help you develop
your capabilities in the following
areas:

10. analytical concepts covered from the relevant
Modules (1-4) in this Course;
concepts and theories to the organisation
selected, particularly in analysing its strategic position;
existing strategic concepts, analytical
frameworks, and theories; and
s for pursuing your professional
career in the areas of communication and
report writing.
Advisory notes for this assignment
• You should conduct an extensive information search on the
organisation selected.
• Company websites, annual reports, and media reports are
important sources of such information, but their
objectives, and thus credibility, should be carefully analysed
and evaluated.
• You should use appropriate concepts and analytical tools in
your report.
• The report should be written in prose; however limited use of

11. dot points is acceptable.
• This advice should be read in conjunction with RMIT
assessment policy and the course guide.
Guide for assignment presentation
Written assignments must be presented in a professional format.
Quality of presentation, especially literacy,
will be considered in the marking criteria. Written
communication skills are an essential component of RMIT
3
University’s courses. In line with RMIT policy, all sources of
information must be fully referenced using
standard Harvard or APA referencing systems. You are
encouraged to use referencing software such as
Endnote for referencing and formatting. The assignment should
be in report format and use Times New Roman
font size 12, 1.5 line spacing.
Assignment submission
You are required to submit your assignment online. Please
submit it via the course Blackboard and note:

12. • Submit your assignment into Turnitin first to check the
authenticity of your report. Then attach the
Turnitin report to your assignment, and submit them into the
Assignment 1 Final submission link in the
course Blackboard.
• Further submission instructions will be given in the lectures
and tutorials.