Executive summary The purpose of this report is to discuss the market of a biscuit company in Australia. This paper will consider Arnotts Ltd for broader discussion. In order to formulate this study, this report will consider external and internal environment of the company, market size, growth, and market share of Arnotts Ltd. To assess the present market position of Arnotts, this paper will concentrate more on external factors like economic aspects, political situation, governmental regulations, technological improvement, and socio-cultural factors. Introduction The author of this report has selected Arnotts Ltd to examine the market of a biscuit company in Australia. Background of the Company Arnotts had actually started its operation in 1875 as a small homemade biscuit manufacturing company in Australia (Cohen, 2004). The company believes that it is a symbol of national history. It is one of the prime food companies in Australia as well as Asia pacific zone. It has more than 4,900 employees among them 2,600 employees are Australian and it generated about $5.2 billion sales revenue. Arnotts Ltd offers number of products for the customers, such as, Tim Tam, Arnott’s Mint slice, family chocolate, Vita-weat crackers with whole grain goodness, sweet biscuits like Assortments, Kingstone Creams, Lemon Crisp, Raspberry shortcake, Tiny Teddy and Snack right, Shapes and so on (Arnott’s, 2010). However, Campbell Soup Company is the wholly owned parent company of Arnotts Ltd, as a result, Arnott’s financial information has integrated with baking, and snacking segment of the Campbell consolidated financial report. Figure 1: – Net sales of Arnotts. Source: – Campbell Soup Co (2009, p. 53). Market growth The following table shows that its sales growth decreased from 2007 and 2008 fiscal years due to financial crisis and implementation of divestiture strategy. However, since 1997, it has invested about $27m for expansion in South Australia, $19m for growth in South Wales and $9.4m for development in Queensland market (Arnott’s, 2010). Variables                          2009 ($ million)  2008 ($ million)  2007 ($ million) Net Sales                          1,846             2,058             1,850            Earning before interest and taxes  262               120               238              Total Assets                       1,628             1,704             1,702             Table 2: – Key statistics of Arnotts Ltd. Source: – Self generated Campbell Soup Co (2009, p. 53-55). Historical Background William Arnott, in 1875, established a bakery house in Australia and started a factory in Newcastle; in 1956, the business combined with Morrow, Metteram Menz, Mills & Ware, and Brockhoff and appeared as Australian Biscuit Company, which floated in the Australian Stock Exchange in 1970. The Campbell Soup Company obtained a small share of the company in 1985, and by 1997, it got the complete control of Arnott’s. Mission Statement The mission of Arnotts is to provide the best quality biscuits, chocolates, cookies and other related food items to the target customers and hold the market leading position forever by satisfying them. Market size Arnotts Ltd had applied acquisition and restructuring strategies and it is a subsidiary company of Campbell. In this context, it is difficult to current market size of t