STRATEGIC REVIEW

POSTGRADUATE STUDIES IN BUSINESS MANAGEMENT

SUBMITTED TO : Dr.HEIN MATTHEE

SUBMITTED BY: JASRAJ KAUR KAILA STUDENT ID 0709BHC188

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Learners Name: JASRAJ KAUR KAILA«««««««««««««. ID «««««««0709BHC188«««««««««.. Class (Course) «PGDBM«««««««««««««««.. Unit title««««STRATEGIC REVIEW«««««««««««« Date assessment details issued««««««.. Date handed in «14 ± 04 - 2010«««««««««««. Words Count: ««2986««««««««««.

I confirm that this is my own work and that I have not plagiarised any part of it. I have also noted the assessment criteri a and pass mark .I declare that the work I am submitting for assessment contains no sections copied in whole or part from any other sources, unless it is explicitly identified by means of quotation mark or in the case of very long quotations, by means of wholly indented paragraphs. I declare that I have also acknowledged such quotations by providing detailed references in an approved format. I understand that unidentified and un -referenced copying both constitutes plagiarism which is a very serious offenc e

Learner¶s signature_JASRAJ KAUR KAILA________________ Date14 / 04 /2010

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4 3 . ENVIRONMENTAL FACTORS 2. 1.2 MARKET POSITION 3. INTRODUCTION 2. STRATEGIC OPTION 4.1 PORTER¶S FIVE FORCES 3.1 STEEPLE ANALYSIS 2.2 COMPARATIVE POSITION 4.3 FEASIBLE OPTIONS 5.1 STRATEGIC OPTIONS 4.3 MAJOR CHANGES 3. CURRENT BUSINESS PLANS 3.CONTENTS SERIAL NO. CONCLUSION 6. REFRENCES 15 17 18 20 21 9 11 13 5 6 8 PAGE NO.2 STAKEHOLDERS ANALYSIS 2.3 SWOT ANALYSIS 4.

As a project manager I explain the environmental factors. current business plans and strategic options.Introduction Economic system in which goods and services are exchanged f or one another or money. 4 . called business.

Social Technological Economical Environmental Political Legal Ethical y According to social factor Delys company have social status because Jo Brown has found fame as a dynamic entrepreneur and is a dragon on the BBC business show ³Dragons¶ Den´ .1 STEEPLE analysis considers the possible impact of broader factors on your industry and your business. 5 .By the environmental factor it uses efficient machienery in their factories those are suitable and not harmful for surrounding.technically it is more advanced.It is recognized and it follows rules and regulati ons within bindary of health and safety. It is a simple framework used to identify factors in the business environment that might impact on the organisation or a business area.K that is beneficial for government as well as public because it helps to decrease unemployment and it is a source of income for government.According to technical factor it is recession proof because it provides luxury products on stable price . Because it is recognized and highly reputed company so its affected by politically also.popularity or status shows it. According to economical point of view it¶s all factories are situated in U. Factors are identified in 7 areas.2.Ethically it is a reputed and trusted company.customers are satisfied by the products.

If prices are high then it is difficult to buyer and it affects on the demand and sale of the product.Profit ± All stakeholders want profit. Customers want profit by buying and employees want profit by sellery. group or organization that has direct or indirect stake in an organization because it can affect or be affected by the organization such as shareholders. 3. Be cause of this stability shareholders 6 . customers. Shareholders want profit by selling.It is their source of income.2 Stakeholders Person. creditors.In Other words stakeholders expect profit and it is their need also. 5. For balancing the conflicting needs and expectations 1.Stable profit margin ±Profit margin should be stable because all stakeholders want profit first. Needs and expectations 1.Popularity ± Shareholders want there products should be popular everywhere Because popularity of product is affected its sale or it attrac ts the attention of community. 2.On other hand if prices are decreased then shareholders will be unhappy because it becomes a reason of loss for them.directors. 4. Government also get profit in the form of taxation. that is used for the welfare of community and in another departments.employees.suppliers and unions.government.Employment ± Employees those are working in any organization expect good salary to fulfil their basic needs.customers expect that they want to buy things those are good quality as well as stable price.Stable prices ± If prices should be stable then it is beneficial for buyer and shareholder also. all are stakeholders.Quality.2.In this way they get good quality product on affordable or profitable price.

7 . 3. 2. 4.Approachable ± Product will very popular that is easily approachable for buyers because nowadays people are very busy and they have no spare time.This is profitable also. Stable prices and quality ± Prices should be stable for customers and shareholders both.It will easy for both because buyer wants good quality on stable price or it is good for shareholders also because they have no need to increase or decrease prices. In this way we make balance betwe en the conflicting needs and expectations.gain profit or it is not a burden on the customers.Trust ± Trust is very important for business.If owners provide healthy. hygienic and good quality products to community then automatically people can believes on that brand and it should essential for the popularity of the product. It effects product¶s demand and supply.It should easily available on supermarkets otherwise people do not know about the product and it occurs problem in the way of popularity.

5. productivity and sales.technology.So Delys have enough money to expanding new range of the product or expanding internationally because to become worldwide Delys need more technology. Income : Income affects on business because customer¶s demand is depends on their income and living standard.93 instead of 5.80.productivity.In this way people prefer luxury things because of their income and it effects on productivity and demand of product. Interest Rate : Interest rate means a rate which is charged or paid for the use of money. Delys employs 60 employees and plan to develop their business internationally. 3.3 Economic environment means totality of economic factors such as employment. 1. 4.In future it need more employees .productivity and wealth that influence the buying behaviour of customers and firms. 8 . Productivity and wealth : To running and stability of bu siness wealth is very necessary because for buying raw materials. Demand and Supply : Demand and supply of the product is effects most because supply is depends on customer¶s demand.Delys is a well-setteled company and it expanding the sweet and desserts range because it knows that people prefer luxury things in good times as well as bad times.Delys net profit on sales ratio is 10% and retained profits over the last 10 years of £6 million. Low rate interest is responsible to increase the profit or income. 2. Employment : To increase or expand the productivity .So employment affects on business. man power is very important.2.Delys holds long term loan of £2 million.now it is 5. wealth is main need. income.Now national minimum wages rate is increases .man power . interest rates.wages and for developing.

Other large super markets making the similar product to get profit.Relations with customers are very good they like products and Its stable prices . If company deal with few powerful buyers they are often able to dictate terms to the company.It attracts other businesses because of its profit. Supplier Power Company¶s brand is well ± known . Buyer Power It is important to take importance of each individual buyer to the business.Customers like Delys products because of its uniqueness it effects on market and sale also. If it costs little in time or money to enter in market and compete effectively. Any food stuff business get profit or improvement when public demand is in the favour of the company.It is very essential for the supplier to settle their product¶s uniqueness and service. Product and Technology Development This is affected by the ability of your customers to find a different way of doing what you do.3. it producing chilled sweet and dessert products. New Market Entry Power is also affected by the ability of people to enter in market.1 To analyse and measure the effects and effectiveness of Delys I use Porter¶s five forces Competitive Rivalry Delys is a single product company. if there are few 9 .So company s current business plans are effected by those competitor.this is a popular brand because figures shows that.Delys company¶s popularity and profit shows that its buyer power is strong.

or if you have little protection for your key technologies. Delys company¶s current plans also effected by others that is why they want to launch new food products to stable their position in market.economies of scale in place. then new competitors can quickly enter your market and w eaken your position. 10 .

Although It is a single product company it is making just chilled .It is founded in 2000 by Jo Brown.K that produce chocolate based cakes and patisserie.so it is a well -settled company or get profit every year and improve also. sweet and dessert product but according to some estimate it reckoned to be £850 million annually and it is dominated by chilled products that account for 65% of the market . For any business public demand is very important. it owns no Distribution businesses and no retail outlets.Delys launched a new taste in 11 . its grown by 15% per annum every year since the company was founded and they currently amount to £6 million annually. When this company started .National press and other organisations praised it so it proved that quality of the product is very high. Delys employs 60 people and only one factory with attached offices .If we talk about its profit .The net profit on sales ratio is a very healthy 10% .2 The position of the Delys company in its current market is very good because it is A well-known and establised company .According to its balance Sheet there areassets £20 million funded by a mortgage of £7 million . it is possible only because of Delys company because the quality of the product is very good . that¶s why other groups want to make something similar the Delys.Even the presence of those competitor Delys get profit and become popular day By day.The market seems recession proof also because some other large supermarket groups have developed luxury lines that sell at premium prices . a long time Term bank loan of £2 million and retained profits over the last 10 years of £6 million And the residual amount comes from the shareholder¶s equity. At that time it is only a single company but now there are many competitor in front of It. there is no one as a competitor bec ause at that time There is not any company in U.So we can say it is not a new company.It becomes a business model or a cause of attraction for other businesses.Although it¶s retailers are less b ut Its balance sheet shows that it is a profitable business.3.

product¶s quality and profit its position in current market is very good and hopeful. 12 . So according to reports.Customers are already know about this brand so it is not Tough to company to launch a new product and its selling is already through The large supermarkets and its beneficial to the compa ny and customers also.Sweets sector and it get fully response from public. estimates . Jo Brown has a social status also because of the entery on BBC channel.public demand .It effects Company¶s current market.so its public response is in the Favour of this company that is why Delys wants to expanding the new range of Sweets and desserts.

Retailers are less. 7. 6. It is the first stage of planning and helps marketers to focus on keys issues. 5.a long term bank loan of £2 million and retained profits over The last 10 years of £6 million.3 SWOT SWOT analyses is a tool for auditing an or organization and its environment. 3. 8. opportunities and threats. SWOT stands for strengths. It is an business model for another companies . Harrods. Asda . Mason. Jo Brown(owner) found fame as a dynamic antrepreneur and is a dragon on the BBC business show ³Dragons¶Den´. Weaknesses of Delys 1. Fortnum.3. 2. Sainsbury. Morrisons . Market seems recession proof. 4. Sales are through th e main supermarket chains such as Tesco. 3.Companey¶s balance sheet shows that there are assets of £20 million funded by a Mortgage of £7 million. Strengths of Delys 1.It shows that company get residual amount. It plans to expand internationally or worldwide. The net profit on sales ratio is very healthy 10%. It becomes social status. weaknesses. 2. Strengths and weaknesses are internal factors and opportunities and threats are external factors. It is a single product company. Competition is tough for Delys because another large supermarket groups 13 .it making only chilled products that is not beneficial by the business point of view. National press and other organisations praised this company for the best kind In taste tests.

4.have developed luxury lines. The business of Delys is not worldwide.Tesco have a ³Finest´ range and Sainsbury have a ³Taste the Difference´ range. 14 .

4. she knows about SWOT of the company.raw material will same.1 Economies of scale are the main advantage of increasing the scale of production and becoming µbig¶. Technical economies According to technical economies it is not harder for Delys to use new machienery to increase production because they get residual amount. Managerial economies Jo Brown is very efficient manager and founder of company. It may be able to obta in discounts and lower prices for the raw materials. Internal Bulk-buying economies As businesses grow they need to order larger quantities of production inputs. Financial economies Larger firms therefore find it easier to find potential lenders and to raise money at lower interest rates. There are two main types of economies of scale: internal and external. The main types are: Transport and communication links improve To increase the production and service facilities Delys should improve transport and communication links Training and education becomes more focused on the industr y Nowadays university¶s courses and education based on industry. they get profit because they have no need to invest in new things.Delys should also do it because it alread y get trust from bank.Delys should try to 15 .Delys should use their social status as advertising to increase customer¶s favour or sales. For example. Marketing economies Particularly promotional methods are advertising and running a sales force. External External economies of scale occur when a firm benefits from lower unit costs as a result of the whole industry growing in size. they will order more raw materials. If Delys expanding the product range .it is beneficial for company to increase business.

It is Delys future plan also.use it to become worldwide. Economies of scope Delys increases its business by expanding marketing departments. Other industries grow to support this industry A firm has a greater chance of finding a high quality yet affordable supplier close to their site. Delys should producing own label products for the supermarket chains. 16 .warehouse facilities to storing the large range of products to become internationally .

Delys expanding the range of product according to customers choice. method. office. information. diversifying into other product areas such as bakery. making products for niche markets and religious groups who have specific needs. processes.4.Competitors will gathering data on real customers behaviour and they will also be building a list of people who will probably still want to buy the product or service if and when they decide to make it.Owner¶s behave affects the business. function. marketing. Competitors choose perfect manager who is fulfil all qualification needs or who is experienced in related field to do business more effectively.Founder and owner of Delys Jo Brown does not want to lose the market image that is why she expanding the range . privilege right or status by measuring up to a fixed standard of ability or legal or official requirement.that is the end result of a process and serves as need or want sa tisfier. organized to produce intended outputs . Business owner¶s action : Everyone like to do business with someone who loves his company not just money or sale. service.Delys expanding internationally and it requires more efficient and experienced managers to handle worldwide business. knowledge or skill that matches or suits an occasio n or makes one eligible for a duty. different prices or discounts to be a strong comp etitor. manufacturing. Product : Good.Delys expanding food range and producing own label healthier products to chime in with consumers changing tastes because other supermarkets groups developed luxury lines. Sets of data and service : Items required to perform a function of accounting. productivity and s ale to stability the image of company. etc. qualifications. taking over other businesses. 17 . in this way competition becomes more tough. it is profitable to build up or to developing new products or business.It affect on business because every competitor have to provide different range of product. positive.etc . object. idea. Competitors use the different prices or range for same product. products. sets of data. expanding internationally to provide customers more.If affects on future plans because competitor get idea of the expectations of customers and market position in advance.2 Item by item comparison of two or more comparatable alternatives. Qualification : Capacity.

This strategy often involves the sale of existing products in new international markets.Delys will launch new food product s to increase the production capacity. new uses for the company's products and services.4. This may entail exploration of new segments of a market. Market development When a company follows the market development strategy. Product development occurs when a company develops new products catering to the same market. or new geographical areas in order to entice ne w customers . It is important to note that the market penetration strategy begins with the existing customers of the organisation. maintain the company's reputation as a product innovator.3 Market penetration Market penetration occurs when a company penetrates a market with its current products. it 18 . exploit new technology. opening Delys retail outlets and expanding internationally to maintain company¶s reputation. it moves beyond its immediate customer base towards attracting new customers for its existing products. and to protect overall market share. counter competitive entry. The reasons that justify the use of this strategy include one or more of the following: to utilise of excess production capacity. Product development Another strategic option for an organisation is to develop new products. improving the product quality or level of service. Delys company will also expanding the range of the product and increase the number of the retailers to increase sales and customers. Diversification Diversification strategy is distinct in the sense that when a company diversifies. Companies often penetrate markets in one of three ways: by gaining competitors customers. attracting non -users of the products with the use of advertising etc.Delys will making products for niche market to attract new customers and to new uses for company¶s products and services. This strategy is used by companies in order to increase sales without drifting from the original product -market strategy.

essentially moves out of its current products and markets into new areas. 19 . It is important to note that diversification may be into related and unrelated areas. Delys will diversifying into other product areas such as bakery and supplying mass -market caterers and airlines.

that is very good or beneficial for company.It is a single product company but it plan to expanding product range and expanding internationally in future. 20 .Conclusion Delys is a well-settled and profitable company.

com www.mindtools.businessdictionary.wikipedia.uk www.co.Refrences www.sportanddev.com www.com www.org I 21 .coursework4you.

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