Business Analysis Report- JBS Foods, Australia

Pratichha S.
Jun 24
8 min read

Updated: Jul 14

Introduction to JBS Foods

JBS Foods Australia is one of Australia's strongest food and meat processing businesses and has its global presence in around 180 countries. It has built one of the most sophisticated manufacturing facilities and feedlots in the world. In addition to owning Australia's largest small goods company, the company also owns a top-quality meat-cutting and case-ready plant (JBS Foods Australia, 2023).

The Northern Division of JBS Australia manages a vast network of high-quality cattle across Queensland and New South Wales, along with 5 strategically located processing plants and 5 feedlots. Due to its acquisition of Huon and Rivalea, JBS is now one of Australia's biggest food companies (Hipp et al., 2020). Approximately 7,500 new employees have been added to JBS's roster as a result of international acquisitions, making the company employ more than 250,000 people worldwide in 2022 (Bloomberg, 2008).

Functional area

The functional area analysis assesses how a company conducts its operations and completes activities to meet its goals. An organization is divided into several functional divisions that each contribute to the accomplishment of the organization's overall goals. All the functions are important and linked to each other to provide a better outcome of the product's output. The functional covers:

Procurement

Livestock and poultry farmers are the major sources of procurement for JBS foods. Apart from that, the vendors are also a part of the procurement by the company. It is an important initial process to maintain the quality of the food (JBS USA, 2023).

Production

JBS Foods products include premium beef and lamb products. JBS Foods runs a feedlot and 4 lamb processing plants that produce a variety of premium meat products. In support of some other brands, JBS Farm Assurance Program complies with the international standards for third-party certification and meets the criteria for third-party certification of JBS brands (Tatt, 2017).

Logistics and Distribution

The distribution channel of the company is to retailers, exporters, and food business restaurants to make their food part of the community. The company's distribution department seeks possible vendors through which products will reach high-end customers (JBS USA, 2023a).

Financing

Financing policies are very lenient, and they have ensured that the relationship between the company and its suppliers is good, so that finance issues for the company cannot be a hurdle. The major financing by the company has increased due to the international acquisition of small businesses, which has increased the investment in the company (Ellis, 2021).

Marketing

The company's marketing strategy focuses on providing customers with detailed information about the food processor, including its features, quality, and nutritional benefits. This transparent approach helps in reaching the target audience effectively and contributes to building a strong customer base (Ellis, 2021a).

PESTEL Analysis for JBS Foods, Australia

The macroenvironment of a company is composed of the surrounding environment outside the company. Typically, a PESTEL study assists in determining whether a company is operating in a challenging macroeconomic environment.

Political Environment

JBS foods are subject to an extensive regulatory framework that is mandated by governments across the globe for every component they contain. Numerous criteria apply to the storage and transportation of JBS food products, to the cleanliness of commercial kitchens, and even to the qualifications that should be met by workers in the food industry.

As a consequence, the industry is undoubtedly one of the most heavily regulated of all industries today. In a positive sense, it prevents the customer from receiving low-quality nourishment. But in a negative sense, it causes the food industry to lose significant margins as a result of the complexity of regulation.

Economic environment

Generally speaking, the cost of acquiring personnel is on the rise across all industries as a result of increasing competition (MBA Skool Team, 2020). Increasing government expectations for minimum wages over the last few years, as well as the rise in employment demand, have all contributed to this phenomenon.

The JBS Foods owner may lose money as a result of higher labor costs, just as it happens in many other industries: an increase in the cost of labor will mean higher costs for the owner.

Social Factors

Food's role in our bodies has been better understood than ever before by scientists through studying how food affects the human body. It has become evident to consumers that their health and the food they eat have a direct relationship. To cope with this situation, many people are searching for better ways of feeding themselves and avoiding beef and meat products.

Technological Factor

As automation becomes more prevalent in the food industry, several forms of it are becoming more prevalent as well. The use of technology will increase the use of robots in JBS Foods, and this will lead to a reduction in the need for laborers. As a whole, this will be advantageous to the company, since it will allow the company to increase its profitability and reduce the possibility of human errors due to the lower risk of human errors.

Environmental Factor

As a result of growing awareness of the impact our dietary choices have on our health and the environment, an increasing number of people are making healthy meals a priority. One of the most challenging aspects of producing meat is its impact on the environment. Massive amounts of water are used in the production of meat, especially red meat, which leaves behind a massive carbon footprint as a result of the production process. A large quantity of woodland is being cleared by the meat industry to make room for farms.

Legal Factors

Every country has its own set of regulations regarding how food is to be handled, prepared, and stored. This includes information about the maximum temperature that certain types of food may be able to withstand, as well as instructions on how they can be cleaned following these regulations. JBS Foods must therefore exercise considerable caution if they wish to avoid costly litigation by following these regulations to ensure that they do not violate any of these provisions (EMBA Pro, 2023).

Competitive Landscape

The major competitive landscape of the company has increased due to the acquisition of an international small business, and playing in the international market has increased the value proposition and market value of the company (JBS, 2023). The global expansion has increased sales by up to 25%, which is favorable for businesses to grow more (icmrindia, 2016).

Analysis of Stakeholders

Stakeholders are divided into two main types- Internal and External. With a direct and indirect interest and influence on the company, here is the analysis of JBS Foods stakeholders:

Internal Stakeholders

Internal stakeholders are the human resources, who have a direct interest in the company. The main internal stakeholders of the company are:

Shareholders: They are the most significant stakeholders in the business since their substantial investment is anticipated to yield a large return. Due to their expectation of returns on their investments, shareholders are the group most interested in the company. These stakeholders often have low interest and moderate influence.
Employees: The personnel are the heart and soul of any company, and they are essential to its effective operation. JBS Foods gives careful attention to the interaction while speaking with clients or consumers over the phone, fax, email, or another channel. These stakeholders have a high interest and influence.
Investors: They make investments that contribute to the growth of the company and its expansion. To strengthen its financial position, the corporation also sells shares in several countries. These stakeholders have a high interest and influence.
Owners: The goal of a company's owners, whether they are partners or shareholders, should be to maximize profits for the business. An individual's income is determined by a variety of factors, many of which they have an interest in and control. Take employee morale, motivation, and output as examples of indicators of employee satisfaction. Owners weigh each of these aspects when determining whether a property is suitable. These stakeholders have a high interest and influence.
Board of directors: These stakeholders serve as the primary decision-makers for the firm, influencing its choices and hoping for more profits. They vote on changes to the company's operating procedures, objectives, and other matters. These stakeholders often have high interest and influence.

External Stakeholders

Stakeholders who have a direct interest in the company but do not work for the benefit of the organization are known as external stakeholders. The main stakeholders are:

Customers: The most significant stakeholder in any business and the main stakeholder of a firm is its consumer. The way a customer perceives a JBS food product or service affects how they respond to it. These stakeholders have a high interest and influence.
Government: JBS Foods has always engaged in communication with the government while looking for approval, etc. This is accomplished through a variety of channels, including meetings, email, and media mail, to mention a few. These stakeholders have high interest and influence (Hamelin et al., 2008).
Competitors: Companies that offer the same product or service as you will always seek to set themselves apart from you by offering something distinctive and alternative. These stakeholders have moderate interest and influence.
Suppliers: These parties supply the company with raw products. They are in close contact with the business because they supply the raw materials. These stakeholders have moderate interest and influence.
External auditors: The independent external auditor is a further external shareholder of a company. Aside from evaluating the financial reports, auditors also frequently provide advice on internal controls and suggestions for improvement. They have low interest and influence (Barney & Harrison, 2018).

Stakeholder Mappings and Matrix

Stakeholder Matrix

Stakeholder	Level of Influence	Level of Interest	Reasons for the Positioning	Implications of Conflicting Interests
Employee	High	High	Direct impact from the organization	Team conflicts, late project delivery, and internal environment
Investors	High	High	Direct impact from the organization.	Less financial support, reputation
Owners	High	High	Direct impact from the organization.	The company’s financial and reputational loss
Customers	High	High	Direct impact from the organization.	Decreased company value and loyal customer base, trust, and financial problems
Suppliers	Low	High	High interest, but cannot pressure the organization	Fewer suppliers, high negotiation, and expenses
Competitors	Low	Low	Not much impact from the organization.	Competitive sustainability, market position loss
Board of directors	High	High	Direct impact from the organization.	Conflicts in the company
Shareholders	Low	Low	Not much impact from the organization.	Decreased share price and value
External auditors	Low	Low	Not much impact from the organization.	Finance, audit control, and advice from an external auditor
Government	High	Low	Direct impact on the organization, but has the least interest in the organization.	Legal issues and penalties

Figure 1- Stakeholder matrix for JBS Foods, Australia

Stakeholder Mapping

A stakeholder map is a visual representation of the organizational stakeholders in the form of a plotted graph (Savina, 2019). The stakeholder map has been developed for JBS Foods, represented below.