Yara International: Africa Strategy Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Yara International: Africa Strategy Case Solution

PESTEL Analysis

PESTEL analysis would be used to examine the company’s external environment.

Political Factor:

Yara international is involved in manufacturing of fertilizers. However, the company has expanded its business all over the world through the mergers and acquisitions. These strategic alliances involve many big players around the globe as well as government agencies of different countries. Therefore, it is considered that the political environment for the company was quite stable and favorable.

Furthermore, as the company was involved in the fertilizer industry, which is considered as highly limited by the government regulations.However,in the case of Yara, the company had significant government support. This is because the company was considering societal benefits and welfare, as this is evident from the initiatives that it took for the different regions in Africa, due to which it had full government support. Hence, it is expected that the political environment for Yara international was complimentary, due to which it was able to add benefits in the society as well as in its business to create competitive advantage.

Environmental Factor:

Yara’s business strategy was consistent with the environmental affects hence, it ensured that it would not involve in the activities that could harm the environment. The company adopted new and advanced technologies and efficient methods to produce different fertilizers such as ammonia, nitrogen etc. Furthermore, the company identified several methods to incorporate business profitability and societal concern, which helped the company gain competitive advantage. However, as the company was involved in the fertilizer business, which is considered as the most harmful business for the environment; therefore, the company may have negative perception, which it can change through its positive activities that could minimize the effect of fertilizers on the environment.

Social Factors:

The social environment of the Yara international also seems favorable. This is due to the fact that the company was highly concerned about the benefits of society as a whole through providing products and services that could add value to the company and to the society. In addition, the company maintained brand equity with the farmers by providing them good and sufficient returns to farmers and society as a whole. Moreover, Yara differentiated itself from its competitors through value added products and services that helped the countries improve their sustainability and agricultural productivity.

However, it is expected that the change in the trends of agriculture and buying behavior in the agriculture sector would affect the company in turning its social environment as less favorable. Due to the increased technology, the change in the farmers buying behavior would cause the company to provide high quality of products and services in lowest possible prices, which might affect the company’s profitability and its efforts to provide value added products and services.

Technological Factor:

Due to the increased use of technology in the agriculture sector, the company would face several challenges. This means that the company may have to introduce new technologies in the business so that it could be able to provide greater facility to the society by creating value-added services. Therefore, it is considered that the technological environment for Yara international is not favorable yet. However, the company was attempting to keep itself consistent with the technological changes as it provided tools and knowledge through online and mobile application. In addition, the company also adopted new technology while creating ease for the customers to distinguish among the fertilizer types.

Economic Factors:

It is expected that the increased rate of prices of raw materials may affect the company to further enter into the new markets of the world. In addition, this situation may also expectedly affect the company’s profitability and sales revenues, which in turn would restrict the company in creating shared values. However, the company is financially stable and strong.Therefore,it is assumed that it would overcome the challenges that it may face in its economic environment....................

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Yara International: Africa Strategy Harvard Case Solution & Analysis