Environmental Analysis
Considering the performance of an organization is a major objective for a company, each
industry has its own distinct competition as well as challenges to succeed in today's
challenging macroeconomic environment, organizations must make frequent and time-
critical shifts in corporate strategy (Siebel Systems, Inc. (Nasdaq: SEBL). The
organization I chose is called the U.S. Wheat Associates which operates in the farming
industry. In 2005/2006 The U.S alone has grown more then 57 million metric tons of
wheat, the U.S. alone used about 31 metric tons and 27.5 metric tons was exported (US
Wheat Associates). The U.S. is the global market leader in the wheat export industry.
Producers are experiencing high prices for both inputs and wheat. It costs at least twice as
much per acre to produce wheat compared to two years ago. Producers must borrow more
operating capital or invest more savings to produce a crop and if something happens to
the crop, their savings and equity disappear relatively fast.(Oklahoma State University).
The key macroeconomic variables that affect the wheat industry would be Real GDP,
Nominal GDP, consumption expenditure, the purchase of new capital goods.
As well as the net exports of goods, foreign Investment, NAFTA, Grain quality Issues
and Innovation, Food Safety, and EEP ( Export Enhancement program) and other credit
guarantees.
There is a lot of combinations of factors that result in high wheat prices, which would
be strong competition for acres within crops, in an environment where wheat is losing
Competitiveness. Production problems, which includes bad weather cond ...