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Strategic Management December 11, 2009

Course BUSI1317: Strategic Management Course School/Level BU/UG


Coursework Individual Report Assessment Weight 30.00%
Tutor P J Reid Submission Deadline 11/12/2009
Coursework Header Sheet
158549-187

Prepare an individual report summarising the findings of your group presentation. The report
should follow the instructions in sections 6.6 and 6.7 of the course handbook. FAILURE TO DO
SO WILL RESULT IN A REDUCTION OF YOUR MARK.

Coursework is receipted on the understanding that it is the student's own work and that it has not,
in whole or part, been presented elsewhere for assessment. Where material has been used from
other sources it has been properly acknowledged in accordance with the University's Regulations
regarding Cheating and Plagiarism.

000389446 Sirinapa Dawiang


Tutor's comments

Grade Awarded___________ For Office Use Only__________ Final Grade_________

Moderation required: yes/no Tutor______________________ Date _______________

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Strategic Management December 11, 2009

Table of Contents
Coursework Header Sheet..............................................................................1
Introduction.........................................................................................................3
The history development and growth of the company........................................3
A SWOT analysis................................................................................................3
Company strategy................................................................................................5
Recommendation.................................................................................................5
Conclusion...........................................................................................................6
Reference.............................................................................................................7
Reference

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Strategic Management December 11, 2009

Corporate Strategy at Grand Metropolitan

Introduction
Nowadays, most companies use their strategies for sale product and attract
more customer loyalty in different ways. According to Clarke-Hill and Glaister
(1995), define strategic management process is applicable to many different
kind of organisation both commercial and non-commercial. There is the factor
that many companies use in organisation for their business and it is useful. This
paper will describe case study of Corporate Strategy at Grand Metropolitan
which based on history development and how the company growth in the
market, analysis SWOT of the company then discuss about what strategy that
company use for improvement and give recommendation for GrandMet.

The history development and growth of the company


The Grand Metropolitan is a former major food, drink and retailing company
with strong financial and a strong team working in the early year company
could join with small businesses and purchased properties. There is the way
that makes company growth up in the wide market. In 1947 by Max Joseph era,
company has begun developed by purchase properties as hotels in holiday
centre then later on company has purchased entertainment, food, drink,
catering which relate to and public houses. And in 1971 GrandMet Hotels Ltd
entered the brewing industry acquired Truman, Hanbury and Buxton Ltd then
join with many business together in few year later. Also the company took the
name Grand Metropolitan – diversified saw that hotels no longer main activity
then company reorganised into divisional group structure in 1973. There had
very good vision of leaderships wear seeing the future change and good at
made decision so company was developing of good team working in different
era and growth dramatically since its inception as was among the top fifteen
United Kingdom public companies in market capitalization in 1993.

A SWOT analysis
Strengths Weaknesses

• Team management • Lack of brand

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• Growth better financial • Lack advertising and


• Strong decision promotion

Opportunities Threats

• Global business • Competitors


• New product • Economic environment
• New market • New technology

Such as strengths and weaknesses, company has a good team who work hard
and found the way to developed company. In the term of team work those
people are used their old knowledge to improve quality of product and create a
common business within one company. Growth better of financial that made
company purchase properties and asked other business to join in and make a
trust and customer loyalty. In the different era their made an excellent decision
with a good deal of purchase and joining business together. The weakness is
lack of brand and do not do show on advertising and promotion much. The
weaknesses is base on lack of product the company have not own brand so
sometime a strategy has change follow other product and market. Also the
company do not much advertising or promote the about company much so
some consumers not know about company much.
Opportunities that company need more is develop business as global, create
more products or create a new brand for itself and purchase more a properties
as hotels in capital and tourist city as many countries then make it strong and
stronger of system structure. To make people know more in the wide market or
global market company will make their own brand search for new market or
have a contact with other countries such as global market. However, sometime
the company has the threats by competitor who has the same industry,
economic environment and new technology. As some company is running
same product but they might cut the price down to attract more customer or
other factor is economic growth slow and affect to purchase more business.
Finally, technology has ran very fast and always change so sometime company
cannot afford for business.

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Company strategy
According to Pheng and Hong (2005 cited Albert, 1983), the concept of
strategy probably emerged in connection with military operations as all the
following elements that make up the concept of “strategy”. That the reason
why company have to use strategy for running business and the company use
strategies to make a decision in the way that develop of purchase and sale. By
Joseph era, he has very good vision to join other business which relation
together, began purchase hotel in big city and different city where is tourist
area because he knew that the company could get the profit. Then later on he
found more company whose business relate to hotels as drink, food, catering
and pubs. The concept had success and strategy that he uses was useful for
company. This could describe as quality of the product and service is the main
element for company. With the exception of Express, all of the acquisition to
date had been on friendly term; Max Joseph generally invited the famer owner
or top management to join the GrandMet board. These make company growing
up strong and made a variety choice for customer.

Recommendation
The recommendation will be suggest on development of the company as
structure development also develop of product quality and service to attract
more customer. According to Snyman and Kruger (2004 cited Porter, 1980),
business strive to achieve a competitive advantage by competing in one of two
ways, namely by being a low-cost producer of good and service or by
differentiation of product or service. Such as making strong brand as new
product for consumer, keeping good quality and develop more of service.
However, the success of all quality not just from the product but it is base on
all staff making a contribution to them (Svensson, 2006). Development of all
staffs makes more a strong team to create a strong structure and bringing new
technology to help organisation improvement. Also make a plan before make a
decision to purchase or sale and follow the concept process of the company.
Conclusion
There is important that to use strategy with any kind of businesses to improve
the product in the market and company will know the way of what customer
require from product or service. Based on team work, all team members done
very good job by Development Company in the way that company get more

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profit and the leader in different era had used their knowledge and skills in the
right way especially used it for deal with other business and make company
stronger in the market. This is some information that company use for running
their business and it will help or useful for other people who want to run their
own business or use for improves business.

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Reference
Snyman, R., and Kruger C. J., (2004) The interdependency between strategy
management and strategy knowledge management, Journal of knowledge
Management, Vol.8, No1 pp 5-19
Svensson, G., (2006) Sustainable quality management: a strategic perspective,
The TQM magazine, Vol. 18 No1 pp22-29
Clarke-Hill, C., and Glaister, K., (1995) Strategic Management, 2nd ed.,
London, Pitman
Pheng, L. S., and Hong S. H., (2005) Strategic quality management for the
construction industry, The TQM magazine, Vol.17, No1 pp35-53. Cited in:
Albert, K. J., (1983), The Strategic Management Handbook, McGraw Hill,
New York, NY.

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