BreadTalk Group Limited Assignment
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Added on 2020-05-16
BreadTalk Group Limited Assignment
Added on 2020-05-16
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1. Introduction and company background BreadTalk Group Limited is a multinational food and beverage corporation headquartered in Singapore. It was founded as a bakery brand back in 2000 by founder George Queck Meng Tong and was publicly listed and traded as SGX:5DA in 2003. The group portfolio comprises of BreadTalk, Toast Box, Food Republic, Din Tai Fung, Bread Society, Thye Moh Chan, The Icing Room, Carl’s JR in China and Ramen Play. Till today, it has grown to over 850 bakeries, 54 food atriums and 24 restaurants that operates in 17 countries such as Singapore, Hong Kong, China, Thailand, Philippines and more with a global strength of 7000 employees. 2. Reasons for choosing New Zealand The country New Zealand was selected by BreadTalk as the country has a high consumption for bread according to market research thus demand for bread is high. The other reason is to introduce Asian cultured bread into New Zealand and exploit the market since there is no similar brand which is a competitive advantage. Moreover, BreadTalk offers a wide variety of products and different flavours wherebythe other bakeries in New Zealand have fewer selection. 3. STEEP Analysis3.1 Social-Cultural Analysis3.1.1. Low Context CultureInfluenced by the western European culture, New Zealand is the typical countryof low context culture. Communication is straightforward and messages are explicit and clear. Therefore, this can affect how BreadTalk advertises and information has to be verifiable to the audience. The openness concept of
BreadTalk’s kitchen is also a good approach to attract customers as it reflects transparency in terms of quality and production. Cultural dimensions scores for New ZealandIndexNew ZealandWorld’s AveragePower Distance2256.5Individualism7948Masculinity5851Uncertainty Avoidance4940Long-Term Orientation33653.1.2. Low Power DistanceNew Zealand has a low power distance with the score of 22 in this dimension. In the organization, hierarchy is set up for convenience, superiors are constantly accessible and managers often consult subordinates for their expertise. Superiors and subordinates are nearly equal and willing to share the blame when problem arises hence, BreadTalk can trust its bottom level employees on important jobs. This has a favorable impact on BreadTalk’s management style and employees are able to demonstrate intelligence and judgement that makes them feel more connected with the company. 3.1.3. Individualism cultureWith a high score of 79 in this dimension, New Zealand is a loosely-knit society whereby people are expected to look after themselves and their immediate family members only instead of looking after each other in groups. In the business world, employees are expected to be self-reliant and display initiative which influences BreadTalk’s in its staff hiring and promotion decisions as it is
based on one’s merit or evidence of work done. This is a more ethical approachas opposed to collectivism culture as all employees are given fair judgement with no involvement of relationship ties. 3.1.4. Long-Term OrientationNew Zealand has a low score of 33 in this dimension hence is a normative country. People in this society have a strong concern for establishing the truth. BreadTalk has a more pragmatic approach to business by keeping its options open and will combine A and B to generate something superior unlike New Zealanders that believe if A is right B must be wrong. Thus, BreadTalk will only survive if it adjusts its working style and follows the New Zealand tradition. 3.2. Technological Analysis3.2.1. Internet ConnectivityNew Zealand has made a significant development in their technology fields. Technological innovations and the use of internet are introduced in both urban and rural areas, with this Bread Talk can engage with consumers through network by offering information on the official websites. Moreover, the widespread of social media such as Instagram, Facebook, Twitter, Google and Yahoo is an effective advertising platform for Bread Talk to widen and reach thetarget audience regardless of age and country. 3.2.2. Smart device EvolutionAlmost 70 percent of New Zealanders owns a smartphone or smart device suchas tablet, notebook and the number is still growing. The highest number of
smartphone and laptop ownership is among 18 to 34 years old and the following group is from 35 to 54 years old. These users are within the target market of BreadTalk hence has presented many marketing opportunities for thecompany such as creating a mobile app which enables offline purchases. 3.3. Environmental Analysis 3.3.1. Unsafe Water SourceBack in Augest 2016, New Zealand Havelock North’s drinking water has been contaminated which affects more than 5000 people getting sick with gastrointestinal illness and contributes to the death of three residents. Water being an essential ingredient for BreadTalk which will affect its overall productivity, sales and expenses. Therefore, BreadTalk has to be extra careful with its water resources. 3.3.2. Climate ChangeNew Zealand is heavily affected by the ambiguous climate change as the country has large agriculture production. Eastern region of New Zealand experience severe droughts and higher average temperature while the Westernregion experience floods and erosions from high rainfall. Farmers are unable togrow crops for production due to the bad weather which results in low availability of resources. Thus, it will affect BreadTalk in terms of their material availability as the company relies on local ingredients. 3.4. Economic Analysis3.4.1. Gross Domestic Product (GDP)
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