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Agribusiness sector is significant and play a vital role in every country to uplift profitability and maximize GDP. Growth opportunities and employment are created through agribusiness sector. Grain Corporation has been taken in the task to explain and outline the significance of agrifood business deveploment sector in the global market. It is an Australian food company who renders innovative grain services for the customers internationally. Various planning are done by the company to enter into the foreign market. The paper portrays that how the Grain Corporation uses international strategies to enter into the Chinese market. Chinese market will help the company in providing various innovative opportunities in the marketplace. Along with this, appropriate and inappropriate entry modes that can be implemented by the firm have been discussed in the paper. More detail of the task is elucidated below.

Grain corporation limited is a public company listed on the Australia securities exchange in Australia. The main business of the firm is the storage and receivable of grain and related other communities. Also, it renders logistics and markets these commodities. The company was incorporated in 1917as a New South Wales public sector agency (Graincorp, 2018). The unique businesses, integrated and unique mix of assets permit people to render high quality of assurance, scale, competitive prices and confidence of supply. The vision of the company is to be a leader in agribusiness sector. The firm is responsible for actions, decisions and results. The aim of the company is to achieve high outcomes, celebrate progress and learn from ample of mistakes. The organization establishes good and strong relationship with producers and buyers in the competitive market. In today’s competitive world, the company is proud to be a leading and growing international agribusiness with diversified and effective operations and activities that span four continents and international food supply chain. Grain marketing and handling services are being rendered by the firm in today’s globalization world. Grain Corp. was listed on the Australian stock exchange in 1998 which shows strong and dynamic growth of the firm through acquisition. Safety, security, dignity, respect, customer satisfaction and accountability are included in the core values of Grain Corp (Graincorp, 2018).

International opportunities for Grain Corporation Limited in China

China remains one of the biggest growth and innovative markets in the agrifood business sector. The market of the agrifood business sector is also producing and making an effective and favorable image in the global market. Thus, Grain Corporation limited could take ample of benefits in Chinese market while initiating the business functions (Scoones et al, 2016). The reason behind this is lie in current technical upgrades and modernizations in the agribusiness sector that is being supported by the Chinese market (Scott et al, 2014). Moreover, the claim is to be found regarding the quantity and quality of food maximizing in the Chinese middle class. Therefore, Grain Corp. can ultimately beat the rivalries in the global marketing. It is reported from the various facts that China is the fourth largest and unique customer of agribusiness food import and export products. It has been elucidated that Chinese market is fundamental and dynamic for agribusiness food sector (Hoffmann, 2016).

China is a fastest and biggest growing market in Asia in the agribusiness food sector. Apart from this, the market is large and further growth and success is estimated effectively and efficiently. The agribusiness food industries are securing an excellent position in the Chinese market through their advanced leadership and technology. With dynamic leadership and advanced technology, Grain Corporation limited can build and improve brand image and financial position in the Chinese market. This further leads in productivity, precious, energy efficiency and durability is promoted and appreciated by Chinese customers in a large extent (Pereira, Teixeira and Raszap-Skorbiansky, 2010).

International strategies for expansion business in China

International strategies are needed to beat the competitors and expand business internationally. No firm can grow and strive with competitors without using international strategies widely (Banalieva and Dhanaraj, 2013). There are various international strategies such as transnational strategy, multi-domestic strategy, and global strategy which used by the Grain Corporation when entering into the Chinese market. The international strategies for expansions and development have been elucidated below.

Transnational strategy

Grain Corporation can use this strategy to seek a middle ground between a global and multi-domestic strategy. By implementing this strategy, the company tries to balance the needs, requirements and wants for efficiency with the desires to adjust to local choices and preferences in different countries (Doole and Lowe, 2008). This strategy helps in creating more growth opportunities in the Chinese market. The difficulty is that adjusting the global strategy and multi-domestic strategy is hard to do because it needs attaining or fulfilling the dual goals and objectives of coordination and flexibility. Thus, the company should balance opposing global and local goals. On the positive side, Grain Corporation can easily implement transnational strategy to overcome the rivalries in the competitive market as it also helps in enhancing the business functions and actions globally. If Grain Corporation pursues this strategy then the chances of capture the foreign market are increased in a large extent. By using this strategy, the firm further can identify and measure the choices and actual needs of the customers in China (Libraries, 2018).

International strategy

In compare and contrast to a multi-domestic strategy, a global strategy is centralized and managed by the home office and seeks to increase and enhance the international effectiveness and efficiency. Using this strategy, goods are much more likely to be standardized than tailored to local markets. By using this strategy, Grain Corporation can enhance and maximize sale of the same products and services in the similar way in enormous countries. The global strategy creates ample of growth opportunities and encourages economies of scale in the global market. Pursuing a unique and effective global strategy reduces the risks for the company. This strategy further helps in increasing awareness among the customers internationally. There is no need to make any changes in the products and services while offering the products in foreign market. However, if Grain Corporation wants to make few changes in the products then it can do easily and smoothly (Quickmba, 2018).

Multi-domestic strategy

This strategy is suitable to beat the rivalries in the Chinese market. By using this strategy, the organization can easily understand and evaluate the choices, wants, and preferences of the specific country and according to this, they can produce and introduce the products in the global market (Hill, 2008). For the introduction of new food products in the Chinese market, Grain Corporation needs to understand and analyze the tastes, choices and interests of the Chinese effectively and efficiently (Hill, 2008). By initiating the multi-domestic strategy, Grain Corporation may further modify its products and services to fulfill the needs, preferences and choices of people in China. In this way, the organization can capture entire target audience in such country as it can also maximize profit margin and outcomes (Bbamantra, 2018).

Entry modes to the international market

The decision of how to enter a foreign market may have a significant and vital impact on the outcomes. Expansion into the foreign market could be attained by using various entry modes (Hryckiewicz and Kowalewski, 2010). Some of the appropriate and inappropriate entry modes for Grain Corporation are described below.

Foreign direct investment

It is one of the significant and empirical entry modes that can be used by Grain Corporation for expansion and development. It is an effective and unique mode of entering foreign market through innovative investment. Investment can be done indirectly and directly through FDI and some other financial institutions (Canabal and White III, 2008). FDI affects investment pattern of the economy and provides support to maximize whole development and expansion. The extent to which FDI is permitted in a nation is related to the government rules and regulations of that country. It might be possible by buying the share of a firm, contract law and property. It is noted from the various facts that Grain Corporation can use this entry mode for growth and expansion. It is an easy and suitable mode of entry and further modification or change could be done at point of time. Thus, the organization can implement foreign direct investment entry mode to maximize revenue in the Chinese market.

Strategic alliance

Strategic alliance is a unique and dynamic entry mode to initiate business activities and operations in foreign market. Strategic alliance is a deliberate agreement between two organizations to their pool and utilizes their resources to attain a common set of goals, targets and objectives while remaining independent entities (Ripollés, Blesa and Monferrer, 2012). This strategy is mainly used or implemented to expand and flourish the production capacity, business and maximize market share for a product and service. Grain Corporation can use this entry mode to minimize risks and challenges and to uplift market share in Chinese market. Alliances strategy helps in developing and improving new and innovative technologies, resources and utilizing brand position and market knowledge of both the organizations (Quickmba, 2018).

Joint venture

Joint venture entry mode can also be exercised by the company when implementing or starting business in China. This strategy is not suitable and perfect for the company because it is costly method and conflicts may occur in this entry mode (Lee and Lieberman, 2010). The political and cultural stability can pose a threat and risk to successful and effective operations. There is a conflict in marketing management always existed in this entry mode. This entry mode is suitable for two or more companies who want to attain common objectives and goals. It is recommended that the company should use this entry mode for entering into the Chinese market (Mbaknol, 2018).


Franchising is also not appropriate for Grain Corporation for initiating the business in China. Franchising is a system or framework in which semi independent business owners pay royalty and fees to a parent corporation to sell products and services internationally (Morschett, Schramm-Klein and Swoboda, 2010). It is very risky entry mode and sometimes franchise may become a biggest competitor. Along with this, wrong franchise may destroy the company’s goodwill and image in the foreign market (Deng, 2009).

Recommendations for future strategic direction of Grain Corporation

There are ample of suggestions that help in improving brand image in near future. Some of the recommendations have been elucidated below.

  • It is stated that Grain Corporation must use pestle analysis, SWOT analysis and porter five forces analysis to compete rivalries and to determine future challenges, barriers and threats in the Chinese market. By using SWOT analysis, Grain Corp. can easily evaluate and analyze the internal strengths and weaknesses. Further it will also help to identify the opportunities and threats of the foreign market.
  • Ansoff matrix shall be derived by the company while starting or implementing business operations in China. This strategy helps to distinguish its food products from the competitors in the international market. Diversification strategy one of the good choices that can be used by the firm when initiating the functions and operations in foreign market.
  • Purchasing power, income level and choices of the consumers shall be analyzed and identified before implementing the business in china. For this purpose, a brief market research and survey must be conducted by the company in the competitive market.
  • Along with this, business level strategies must be used to satisfy the needs and expectations of the Chinese globally. A sustainable human resource management shall be maintained by the company to appoint people in China. Without sustainable HRM, the company cannot conduct business activities and functions in Chinese market. It will further help to provide training and development coaching to the workers internationally.


It is evaluated from the above discussion that Grain Corporation is expanding and maximizing its profitability by exploring the business globally. Grain Corporation is a public company which provides grain marketing and handling services to the customers across the globe. To attain success and expand business in China, the company focuses on the various international strategies such as transnational strategy, multi-domestic strategy and global strategy. These strategies help in making easy to international expansion and development. Along with this, entry modes are also essential to flourish the business in China. The company uses appropriate entry modes like strategic alliance and foreign direct investment method.


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Deng, P., 2009. Why do Chinese firms tend to acquire strategic assets in international expansion?. Journal of World Business44(1), pp.74-84.
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