Introduction
TIMAC AGRO Italia is one of the biggest subsidiaries of Groupe Roullier. The main objectives that the organization tries to accomplish are consistent innovation and performance improvements that can contribute to an environment-friendly deployment of fertilizers and soil improvers (Czajkowski, Jackson and Lindow, 2019; Daniel and Fabio, 2020). The team also focuses on numerous areas of science in order to create a worldwide image for TIMAC AGRO Italia and ensure that the tools and products released by the organization are unique and effective. Chemists, biochemists, microbiologists, physiologists, and agricultural engineers conduct constant research to stay in line with the latest developments. From scientific publications to patents, TIMAC AGRO Italia represents a serious force in the field of fertilizer production because it collaborates with numerous other organizations across the globe as well (Cordewener, 2018; Stamatiadis et al., 2021). Nevertheless, it is exceptionally important to mention that the current state of affairs at TIMAC AGRO Italia is relatively far from being perfect. Therefore, the current paper represents a detailed analysis of the organization’s strength and position in the market with the intention of increasing the company’s resilience.
PESTEL Analysis
Political
One important point about TIMAC AGRO Italia in terms of its political standing is that it is supported by the government. The production and import of fertilizers and soil improvers are intended to fulfill the local demand and generate only affordable prices for local businesses and individual users (Kandel, 2019; Mielke et al., 2020). This is also one of the main reasons why the organization keeps developing new machinery. The government also aids TIMAC AGRO Italia since it offers an advantageous tax relaxation opportunity. This eventually gives the local suppliers an export benefit and creates enough room for the organization to deploy modernization projects intended to significantly improve available fertilizers (Adriano et al., 2021). It is also crucial that TIMAC AGRO Italia could be seen influencing governmental programs aimed at rural areas. Despite a limited budget, the company has a chance to receive additional profits and decentralize its operations to remain in line with global business trends.
Economical
This factor can be associated with the dependence on local production capacity and the need to attract new entrants while having the organization benefit from tax relaxation. For TIMAC AGRO Italia, it means that the government remains one of the key sources of fundamental subsidies that might facilitate fertilizer production and export (El Chami and Galli, 2020; Kaplan et al., 2021). It might bring improved economic stability to the region and establish an adequate trade balance. More stringent control of import and export activities could also be seen as a significant improvement. Increased reserves and debt restructuring funding could improve the state of affairs at TIMAC AGRO Italia and give birth to new projects revolving around the infrastructure. The focus on the market should be maintained in order to take care of interest rates and the growing debt that might have a negative effect on the fertilizer industry (De Santis et al., 2020; Mariussi et al., 2019). In turn, that might become a disadvantage for any organization operating in the field of agriculture.
Social
From the point of view of social elements of the model, TIMAC AGRO Italia seems to handle the majority of its operations in an adequate manner. Nevertheless, the growing impact of sustainability keeps people invested in eco-friendly solutions, so the organization has to communicate closely with its stakeholders (Baigorri et al., 2020; Soares da Silva et al., 2018). The increasing exposure to potential health issues motivates the management of TIMAC AGRO Italia to implement preventive measures to ensure that various diseases can be stopped or slowed down with the aid of green fertilizers. Such initiatives are positively met by the community because they showcase the organization’s focus on corporate social responsibility and underline the inevitability of using fertilizers and soil improvers (Soares and Nascimento, 2022; Urrutia et al., 2018). In addition to saving time and money, TIMAC AGRO Italia also gets an opportunity to remove consumer insecurity by increasing social funding and providing an economic shield for the most vulnerable individuals in the region.
Technological
Speaking of the technological aspect of fertilizer production, it can be pointed out that TIMAC AGRO Italia faces exceptionally high expectations that have to be met at all times. The strong inclination toward technological improvements forces many similar organizations to invest in the development of local expertise (Lombardo et al., 2021; Pinter et al., 2019). For the most part, it is required to plan engineering activities that could make it easier for the team members to implement new solutions and improve the old ones. Without a strong technological foundation, TIMAC AGRO Italia could not remain in the leading position for too long because the fertilizer industry is always highly dynamic. This means that the company successfully avoids bottlenecks by means of high-end technologies that improve production capacity and reduce energy consumption (Herremans et al., 2019; Sorin et al., 2018). The pandemic also caused transportation costs to increase drastically, so new approaches to logistics have to be deployed. Investments in research and development activities are fundamental because the overall rate of technology adoption in agriculture is relatively low.
Environmental
The increased focus on the dangers of leaving the environment unprotected must be maintained to allow the management of TIMAC AGRO Italia to explore renewable energy options. An adequate allocation of resources would make it much easier for the organization to push forward its green initiatives while ensuring that branded fertilizers are not misused in any way (Gomez et al., 2017; Walia, Mohammed and Chen, 2017). The increasing dangers of pollution cannot be ignored anymore because the environment is in danger due to greenhouse gases, toxic heavy metals, and nitrates that are generated during improper fertilizer use. TIMAC AGRO Italia tries to minimize its environmental impact by conducting constant research in the field of fertilizer waste. Otherwise, their solutions could become significantly less effective, with the general public questioning their approaches to corporate social responsibility (Amalfitano et al., 2018; Wollmann and Möller, 2018). Fertilizer production and usage are the two topics that cannot be ignored because the impact of various chemicals on the majority of industries can be outlined as negative.
Legal
The fertilizer production industry is significantly impacted by numerous regulatory bills requiring respective organizations to alter their operations per the law. It means that TIMAC AGRO Italia has to follow a certain philosophy in order to develop and deploy fertilizers that are approved by the government and the general public. This issue relates to the need to protect the existing level of sustainability and capitalize on various opportunities that could aid in discovering the full potential of local agriculture (Ibañez et al., 2017; Rengel, 2020). The policy emphasis should take on fertilizer manufacturing to improve the proposed solutions’ overall efficiency and modernize the available capacity for better results. Increasing international competition makes it crucial for TIMAC AGRO Italia to combine valuable policy options and avoid resource shortages by partnering with other stakeholders. The current infrastructure is strong enough to support dynamic changes and consider alternative approaches to fertilizer production and deployment (Douds Jr et al., 2017; Taskos et al., 2019). Nevertheless, only long-term outcomes can be predicted in terms of policymaking and performance monitoring.
Sustainability Pillars: A Risk Assessment
Social Equity
Clean technologies and practices remain one of the core areas of public awareness that have to be managed by TIMAC AGRO Italia with specific attention to detail. Long-term sustainability can be achieved only in the case where green practices and environmental initiatives are aligned against the best interests of consumers and stakeholders (Chuanchai and Ramaraj, 2018; Rahman and Zhang, 2018). Thus, it should be noted that the organization expects risks related to resource management at all times, leaving enough room for solutions that promote social equity. Employees are motivated to engage in pro-environmental behaviors and build abilities that might aid them when pursuing corporate objectives and developing a sense of ownership. The importance of assessing risks related to social equity can be described as central due to the growing significance of the eco-friendliness trend (Chowdhury et al., 2017; Munasinghe et al., 2019; Ren et al., 2019). Detailed research on the subject of relevant policymaking also shows that social equity could be achieved by TIMAC AGRO Italia when establishing opportunities based on empowerment, training, and involvement. According to Dalmora et al. (2020), these activities could generate even more lucrative insights for the team to process.
The dangers of unstoppable environmental harm caused by fertilizers and soil improvers are directly associated with the risks aligned against social equity because natural resources are finite. The dependency on biodiversity and numerous types of monetary and non-monetary possessions (such as water and land, for example) make it clear that TIMAC AGRO Italia should maintain its sustainability initiatives by paying more attention to the economic crisis caused by the pandemic and the long-lasting effects of climate change. Therefore, fertilizer production should follow the guidelines of social equity in order to support more green solutions (Fabiani et al., 2020; Tahmasebi et al., 2018; Urso and Gilbertson, 2018). Unsustainable natural resource exploitation cannot be tolerated anymore because it would turn environmental degradation into an irreversible process. The agricultural sector should become the new contributor to green growth instead of generating incongruence and policies that do not value sustainability. On a short-term scale, TIMAC AGRO Italia could capitalize on environmental protection instead of focusing on profits in order to protect human, natural, and financial resources. Consistent with Mohammed et al. (2018), it could reinforce a painless transition toward green initiatives.
Economic Viability
The fact that the fertilizer production industry keeps moving toward explicit horizontal integration makes it safe to say that TIMAC AGRO Italia might require updated distribution channels. This solution would enable the brand and facilitate its marketing initiatives without negatively influencing product differentiation (Graves et al., 2019; Navarro-Pineda et al., 2017). The increasing range of available products makes it crucial for the organization to support different means of distribution and create all the beneficial opportunities for consumers and stakeholders. With improved marketing power, the company would also reduce its dependency on intermediaries. The biggest risks related to economic viability lie within the area of individual interests, where certain partners might give up on cooperative efforts to pursue individual benefits (Carlsson et al., 2017; Lauer et al., 2017). The classic division of labor would be achieved, paving the way for high-quality products and an updated production system developed for consumers and stakeholders. As a result, the whole supply chain is at risk because the inability to invest in core competencies could result in improper integration of marketing initiatives.
Another side of this risk is that the majority of suppliers are replaceable only to a certain extent. It means that resource management remains dependent on stakeholder leverage and purchasing preferences, where no fertilizer production company seems to have an upside (Appiah-Nkansah, N. B. et al., 2019; Palys et al., 2019; Sikosana, Randall and von Blottnitz, 2017). For TIMAC AGRO Italia, this is a motivating opportunity to review its alignment against the classic Bayesian model and see how the market could respond to special-purpose products. The premium status of products offered by the company requires the management to accommodate all types of purchasers while remaining intact with the concept of sustainability. At a certain point, TIMAC AGRO Italia would have to resort to a sensible decision of switching to a smaller customer segment where individuals exercised a greater willingness to pay and a much bigger purchasing power. According to Gomez et al. (2019), those two factors could highlight the premium status of the products offered by the organization while also leaving enough room for the team in terms of establishing a scalable business.
Environmental Protection
The third pillar of sustainability must be respected by TIMAC AGRO Italia to maintain a high level of organizational performance and develop relevant skills in employees. The decision-making process might become smoother and more rational if the team resorted to discussions involving as many stakeholders and team members as possible (Canter, 2018; Gu et al., 2017; Theregowda et al., 2019). From the point of developing sustainability, it might affect the organization because green practices keep taking over their conventional counterparts. Employee behavior and attitudes cannot be left unnoticed either because the risk of environmental mishaps depends on how often workers are motivated and given the opportunity to lead by example. In other words, TIMAC AGRO Italia is contingent on the idea that green practices and sustainability represent an essential element of corporate social responsibility that cannot be left behind. For instance, Fantin et al. (2017) suggest that the fertilizer production industry cannot be considered sustainable if it does not pay enough attention to the problem of green functioning. Therefore, environmental protection can be associated with risks because it means transformation and modernization for any organization lagging behind.
Environmental protection can be considered a huge risk because of the growing number of green initiatives that do not always go in line with the organization’s mission or vision. Pro-environmental behaviors have to be trained relentlessly if TIMAC AGRO Italia expects to maintain a strong brand image and attract more consumers (Ducci et al., 2019; Ronga et al., 2019). The increasing impact of eco-friendly values is going to boost team members’ environmental consciousness and help them recognize the need for diversified knowledge. Organizational citizenship is also closely related to environmental protection and sustainability because it defines how the company’s best interest can be attained without disrespecting consumer values. This is why training and development initiatives could become a decent risk mitigation strategy intended to instill green values among employees (Pagani, Johnson and Vittuari, 2017; Sellitto et al., 2018). The growing competence of workers would help TIMAC AGRO Italia avoid scandals related to the unethical use of fertilizers or any other issues. Hence, sustainability should be achieved through the interface of a green agenda that involves low-risk initiatives and no decisions that violate corporate social responsibility incentives.
Essential Weaknesses
The essential weakness of the current model intended to aid TIMAC AGRO Italia in terms of coping with the issue of sustainability is the high cost of research and development initiatives. Millions of dollars have to be spent on new developments, but their turnaround requires higher business scalability. The limited number of capabilities built by the company could also become a decisive factor in the future because the competitive cost is also required. Consistent with Garofalo et al. (2017) and Pergola et al. (2020), this objective could be achieved with the help of an efficient distribution system where TIMAC AGRO Italia could increase product availability and work on sustainable fertilizers. For instance, much more direct contact with retailers might assist the company in reducing its distribution costs. In turn, TIMAC AGRO Italia would pay more attention to its research and development initiatives while offering competitive prices to consumers and remaining on top of the fertilizer production market. With the increasing farmland availability, the organization only has to translate its prospects into financial benefits.
One more weakness that cannot be ignored when dwelling on the state of affairs at TIMAC AGRO Italia is the low pace of developing fertilizers and helping farmers cultivate new lands. This is a severe limitation that averts the company from growing despite the latter being a respectable organization overall. The market pressure also requires fertilizer producers to resort to an increased usage of agrochemicals (De Luca et al., 2018; Forleo et al., 2018). The negative impact on the environment cannot be mitigated unless organizations start making moves toward transparent production and retailing. Even though TIMAC AGRO Italia takes part in a national mission intended to help fertilizer producers enhance production volumes, the quality and safety of agrochemicals have yet to be reassessed in the nearest future. The level of awareness among consumers and stakeholders also grows, hinting at the fact that the fertilizer production industry has to be improved with the help of policies that resonate with all actors involved in agriculture (Coluccia et al., 2020; Viccaro et al., 2019). The growing demand for food only solidifies that requirement since the pandemic hit many regions across the globe with only a small chance at driving growth.
The ultimate weakness that can be associated with risk assessment and sustainability at TIMAC AGRO Italia is the lack of educational efforts. The latter might aid stakeholders in recognizing essential challenges related to fertilizer production and use since the number of strong players in the market continues to increase (Benedetti, Branca and Zucaro, 2019; Serio et al., 2018). The company does not invest in its portfolio expansion, which eventually makes it harder to properly manage sustainable initiatives when the target customers do not possess the required knowledge base. A further reorientation toward organic farming might become a chance for TIMAC AGRO Italia to review its agricultural inputs and contribute to sustainability by avoiding any questionable solutions. From a financial point of view, fertilizer producers could become more successful in the case where they decide to reduce their chemical footprint (Basili and Rossi, 2018; Tabacco, Comino and Borreani, 2018). The rise of a significant level of environmental awareness should serve as a corporate social responsibility compass for TIMAC AGRO Italia and avert the management from engaging in activities that might compromise the quality of the final product and the overall brand image.
Interventions to Increase Resilience
Development of Coordinated State and Federal Policies
The need for enhanced coherence suggests that TIMAC AGRO Italia could benefit from numerous federal policies being reviewed. The advent of new technologies and innovative solutions for the fertilizer production industry could help the company pick the best practices and pursue the best opportunities (Ferrari et al., 2018; Rivera et al., 2017; Tasca, Nessi and Rigamonti, 2017). A thorough advancement in the field of agricultural viability would aid the organization in contributing to significant environmental improvements as well. In a sense, federal and state policies have to respond to the growing demand in the field of fertilizer production while assessing the effectiveness of the new programs in real-time (Kanter et al., 2020; Ripa et al., 2017). In line with Cesari et al. (2017), experimentation and collaboration should be embedded in the new policies to benefit all stakeholders involved.
Another reason more state and federal policies are required is the growing impact of public-private partnerships on innovations in fertilizer production. The growing pressure caused by increasing competitiveness can no longer be ignored by fertilizer production companies because they are held responsible for maintaining and expanding the standards of sustainability (Coderoni and Esposti, 2018; Fava et al., 2021). From soil improver production to food processing, every industry mogul has to take care of how they collaborate with each other and address consumer needs on a long-term scale. The number of standards should be driven to an accessible minimum in order to facilitate the process of complying with relevant regulations (Tassielli et al., 2018; Tedone et al., 2018). For TIMAC AGRO Italia, the key responsibility would be to incentivize stronger collaboration and adopt new solutions that could move the industry forward. Further prioritization of environmental outcomes would follow, with many doors opened by prolonged partnerships and a strong inclination to innovation (Collivignarelli et al., 2019; Jez et al., 2017). Thus, a policy review is necessary if the team expects to increase engagement and affect the whole fertilizer market at once.
Additional Investments in Research and Development Efforts
The most recent developments in the area of agricultural research make it safe to say that TIMAC AGRO Italia is one of the pioneers in the field. The key implications of this finding are that many providers become more resilient but fail to invest additional resources in further investigations (Grando et al., 2017; Hou et al., 2018; Longo et al., 2017). Sustainability is no longer a trend but a necessity that has to be respected by fertilizer producers at all times (Antonetti et al., 2017; Golini et al., 2017). TIMAC AGRO Italia should pay more attention to resilience while advancing its decision-making measures and investing in the collection of economic data and related benefits. According to Muscolo et al. (2019), it could unlock efficient conservation practices and optimize the most problematic areas of the use of fertilizers. Research and development efforts have to be expanded to ensure that climate change events can be managed to enhance the long-term economic impact of innovation.
Policy support might be required in the case where the most recent developments do not contribute to an improved environment and cause the research to create more obstacles instead. In this case, it should be crucial to capitalize on timely investments in research and development initiatives to support eco-friendly products and services (D’Adamo, Falcone and Ferella, 2019; Zucchella and Previtali, 2019). Every environmental outcome must be scrutinized by TIMAC AGRO Italia for the organization to reduce emissions and protect biodiversity at all costs. The benefits of this approach cannot be questioned since the fertilizer production industry is recurrently affected by the risk of being demonized for improper management of resources (Ali et al., 2017; Valli et al., 2017). Business scalability can be achieved with a broader diversity of solutions and social benefits promoted by the organization (Merli, Preziosi and Acampora, 2018; Pant et al., 2019). TIMAC AGRO Italia’s future sustainability must be expanded by research investment and thorough response to the increasing consumer demand.
Enhanced Certainty in the Market
One more prospect that could become a competitive advantage for TIMAC AGRO Italia is the development of a positive level of certainty in the market in order to ensure proper market access for agriculture representatives. From the point of view of market relationships, this is an essential contribution to a transparent and sustainable environment where organizations pay attention to how their actions impact the state of affairs (Grossi et al., 2019; Patrizi et al., 2018; Selvaggi et al., 2018). The company could connect the dots between resilience and trade relationships to remove different kinds of uncertainty and bring agricultural resilience to the forefront. In line with Bartocci, Fantozzi and Fantozzi (2017), it might be important for the organization to review production processes and ensure that no natural resources are exploited in a negative manner.
Sustainable production will be affected by the strengthening connection between national security and agriculture as well. It means that crucial areas related to agronomies, such as food security or fertilizer production, are going to be mediated by diversification (Caputo et al., 2017; Jimmy et al., 2017). Local people’s lifestyles and non-agricultural careers must be investigated in rich detail to give the organization a chance to attain unique outcomes of market relationships. A higher level of certainty, in this case, would mean a much more productive environment where only eco-friendly, green solutions are deployed in an attempt to achieve highly positive outcomes (Kakar et al., 2019; Pergola et al., 2018). Over time, new markets could be developed through resilience and the willingness to reduce emissions and improve the quality of natural resources.
Advance Flexibility through Crop Insurance
Organizational resilience is another reason why TIMAC AGRO Italia should be careful when attempting to reduce the impact of risks on its operations. Due to the unpredictable occurrence of natural calamities, fertilizer producers have to pay attention to all the areas where they can actually predict outcomes and control them (Porrini, Fusco and Miglietta, 2019; Strano et al., 2017). This is one of the main reasons why resilience should be one of the top priorities for TIMAC AGRO Italia, especially with crop insurance allowing the company to advance flexibility and worry less about unprecedented financial losses. This approach could drive innovation in technology use and conservation practices exploited by the company (Roselli et al., 2020; Scholz and Geissler, 2018; Severini et al., 2021). Short- and long-term impacts of financial risks are going to be mitigated with success, paving the way for more collaborative actions between agencies responsible for risk management and natural resource protection.
Conclusion
TIMAC AGRO Italia’s primary concern should be deploying a solution contributing to both consumer knowledge and operational efficiency. The concept of sustainability in the field of fertilizer production presupposes that the organization recognizes the need to mitigate climate change. All of this has to be achieved while protecting consumers from facing an environmental crisis due to the existence of solutions that are not helpful when it comes to the quality of soil and its fertility. The dynamics of eco-friendly transformations have to be tracked and reviewed to develop positive public-private partnerships, too. The core task for TIMAC AGRO Italia will be to find the least impactful trade-offs and create a sustainable environment through the interface of agricultural intensification. From policymaking and field research to marketplace changes and crop insurance, every opportunity has to be investigated as thoroughly as possible. The increasing number of interconnected prospects pushes TIMAC AGRO Italia toward passing onto the next level in terms of soil quality due to the dynamics of the fertilizer production industry.
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