Critical Evaluation of Adnams' Strategic Options and Competitive Strategy

This case study analyzes Adnams' strategic options and competitive strategy, evaluating its capability to support these options and sustain competitive advantage. It also reflects on Adnams' business portfolio and growth and diversification strategies in the UK.

Case Study

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Based on an analysis of the current external and internal environment, critically evaluate the
strategic options, and the extent to which Adnams is capable of supporting these options........1
Critically analyse the competitive strategy of Adnams. How can the company sustain its
competitive advantage and create greater value than its competitors..........................................3
Reflect on business portfolio of Adnams, and critically evaluate the growth and diversification
strategies to be adopted in the UK ..............................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Business Growth refers to the a stage where a business reaches a particular stage where it
can aim for growth as well as expansion quite effectively and efficiently (Abbasi and et.al.,
2020). Thus it is quite essential that the businesses are able to target growth effectively and
efficiently in the right manner by making the use of the right methods and techniques. This helps
in ensuring that the overall level of profitability can be enhanced in the right manner in the
future. In this report, Adnams has been chosen. It is a regional brewery which provides a wide
range of products and services to the customers. In this report, a detailed focus will be made on
analysis of the external and internal environment, critical analysis of the competitive strategy.
Additionally, focus will be made on reflection of the business portfolio of the company.
MAIN BODY
Based on an analysis of the current external and internal environment, critically evaluate the
strategic options, and the extent to which Adnams is capable of supporting these options
Internal environment is concerned to culture, factors and events within a company that has
ability to influence decisions of company (Gielnik, Zacher and Schmitt, 2017). The internal
environment is related to inlying conditions and forces present within an organisation that affect
working of company. the internal environment analysis is examining internal environment of
company to assess competencies, resources and also competitive advantages (Corsini, Appio and
Frey, 2019.). On the basis of case study, it has been stated that Adnams is mid-sized distilling
and brewing business based in the Southwold, UK. The brand reputation of Adnams company is
better in Southwold. Landscape lends much to flavour and image of products of Adnams. In this,
SWOT Analysis has been conducted for analyse the internal environment of an organisation.
Conducting the SWOT analysis is helpful in determining the strengths of company, weaknesses,
opportunities and threats of an organisation. Related to the case study, SWOT analysis of
Adnams mention below:
Strengths
 The strengths of Adnams company are
organisational culture, stability and
better customers care.
Weaknesses
 Adnams should focus on enhance its
digital marketing to target large
customer base.
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 This company has uniqueness of factors
that show capabilities and resources
towards development of competitive
strategy.
 Adopting the advanced technology
(Emamisaleh and Rahmani, 2017).
Opportunities
 Adnams company should be focus on
developing the tight connections with
consumers.
 This organisation requires to make
innovation to keep pace with
challenging market.
Threats
 In United Kingdom, supermarkets grew
share of the wine and beer sales
trending continue.
 Higher tax rates.
External environment analysis is input into the strategy formulation. It composes of the
outside factors that impact on business operations. Business should react to keep up operations
flow. PESTLE is used to analyse the external environment that assets to guide prospecting in
political, economic, social, environmental, technological and legal spheres of company. This
analysis tool is used through Adnams to track environment in which they are operating the
business (Flavin, Zhou Chen and Quintero, 2020). PESTLE analysis has been used by Adnams
for analyse external environment given below:
Political factor- Beer industry of United Kingdom is based on the tax regulations. Little
can be done through enhancing the tax rates since government on state and federal level approve
rates. European union through creation of common market and also monetary union has been
brought opportunities. In this, beer sector should company with state and federal to legally
produce, advertise and distribute products.
Economic factor- In this factor, beer industry is ginormous but saturated. Adnams have
large number of the competitors and it compete with them for the shelf space on the liquor stores.
Adnams company is branching into international market in order to reach at new audiences
(Frake, 2017).
Social factor- Under this factor, Beer is advertised constantly throughput media if this
does not seem noticeable. The advertise can be through different medium for an instance social
media, hoardings, television and others. This is clear that beer is celebrated but in similar breath,
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described and ridiculed as dangerous. Beer industry is at the off with the public opinion on
constant basis as it results to witness opposition of the sales. Many of the religion promote
abstention from the alcohol as show of the faith.
Technological factor- Beer sector relies more on the technology to develop as well as
refine the distribution channels. Without using technology, company would not have beer on
shelves. The main focus of Adnams company is to adopt the advanced technology and enhance
its distribution process. This company is looking into using the Information Technology in order
to speed up production process with less mistakes. The beer industry is related with constant
progress in order to producing goods through using innovative techniques on technology
advancement basis. The innovations are contributing to enhancing quality as well as profitability
of Adnams (Moura and et. al., 2017).
Environmental factor- Traditional European beer industry suffers from enhanced impact
of Brazilian and Chinses products. Market condition is influential for development of premium
beer brand. In regards to this, there is a need to respond to issues of environmental protections
enhances.
Legal factor- These factors are related with programs against excessive alcohol
consumption, restrictions on drinking age and also drinking in the public area. This sector is
mainly influence through enhance tax rate which impact on cost of products (Secundo and et. al.,
2017).
Critically analyse the competitive strategy of Adnams. How can the company sustain its
competitive advantage and create greater value than its competitors
Competitive advantage: It is an attribute that allow firm to produce goods and services
better than its competitors (Shin and Searcy, 2018). These factors can generate more sales as
compare to market rivals. These advantages set business apart from competitors from
competition to benefits for customers to achieve more profits as compare to other competitors.
Firstly, it is important to identify competitive strategy of Adnams is an action to gain a
sustainable competitive advantages in long term over competition within market. A firm
experiences to gain this advantages when it actions in industry to create a economic value when
competing firms are engage in various actions. In respect to Adnmas competitive advantages
have different areas of hotels, retail and distribution centres. Various diversification is closely
related to business competencies and have a safe option of already in industry capabilities and
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experience in marketplace. Porters stared that there is certain niche in effectively place that will
learn to how customers want is to be identifying effective competitive strategy.
Adnmas have to choose to focus on small niche markets that identified porters generic
strategy model (Tolo, Patelli and Beer, 2017). The market strategy is saturated when there is
over 900 breweries in UK. Therefore, it is focused on differentiation to compete in increasingly
competitive market. It is also focused on differentiation strategy by creating in its own brand
name which creates a better entry to barrier but it generates less market share than low cost
strategy. Adnmas must continue their local brand as compared to its competitors. The using of
social platforms has create greater brand awareness which is important to growing number of
customers are increased for purchasing.
The retail outlets have enhanced Adnmas portfolio to raise their sale of products and
customer base also. Conglomerate diversified portfolio sold their retail outlets which are named
as classic cookware, mixer and grinders. Adnams seems to be using porters generic strategy of
cost leadership and low cost based strategy. In state to strategy is successful maintain a low cost
in production and enhance their profitability in an enterprise. Porters differentiation strategy is
used to achieve a sustainable competitive advantages and distribute their markets, hotels that
would be eliminate need to contract outside firms. Adnams began producing spirits uses same
methods of marketing which used to enhanced their marketing and distribution to gain
competitive advantages in market in order to enhance their sustainability.
This analysis highlights main to develop their current marketing capabilities and utilised
by Adnams which are named as diversification, based on ansoff and cost leadership through low
cost and differentiation based on porter generic strategies .
Reflect on business portfolio of Adnams, and critically evaluate the growth and diversification
strategies to be adopted in the UK
Adnams business portfolio:
It is a brewer, distiller and alcoholic beverages in UK. Its portfolio of products are beer,
wines, vodka and other alcoholic drinks. It produces and distribute alcohol for various brands
which are named as copper house, first rate and north cove (Verstraeten, 2017). The firm also
operates and owned and managed their pubs and inns also they can sell their products such as
kitchenware, cellar accessories, glassware and software drinks through available only its shops.
The headquartered of this Adnams are southwold, suffolk and United Kingdom.
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The detailed information of Adnams required business and many competitors of ability
needs and this is study of major internal and external factors. It means intelligence of Adnmas
are involved in merger and acquisitions of partnership and various alliance are also there. It can
construct business expansion and restructuring and contract should be wins. They can expand
their larger number of gaps of bar graph, charts and present important data trends.
Growth strategies and diversification of Adnams:
To evaluate growth and diversification strategies, their growth strategy reflect to an firm
plan and future challenges for its goals and expansion (Wang, and 2017). If firm can expand their
business then they can apply its growth strategies through market share and income, improving
organisation products or services. Diversification means that firm adopts development
procedures of its businesses and involve wider scope of different products or services and it
helps organisation to grow and extend their busies in an efficient manner.
Adnams has adopt growth strategy because to expand their business and achieved many
goals and objectives like it would be added new locations, influence their target markets which
will impact on growth they choose. If this firm can survive in market then they will improve its
profits, enhance economies of scale, market share are increased and many more. This strategy
helps firm to achieve better benefits with high degree of achievement and recognition in an
enterprises. Growth strategy of firm gives purpose and answer all questions about their long term
plans and it keep firm are moving towards their goals and objectives and determine what was
happening in marketplace. They can expand their strategy through various methods which are
named as market penetration, product development, market expansion and diversification.
Diversification strategy adopts a Adnam firm because it allows firm for enhanced more
variety of options from various goods and services. It can build and maintain their brand image,
profitability and productivity in an organisation (Wells, 2016). To diversify their product of
adnam firm then they can protect itself from other competitors firm. It is also help to improve
internal development of organisation, their new products or services, licensing issues of
technologies are developed and distributing many goods and services are import firm export
where product line are manufactured. Sometimes they can diversified their business to other
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business because they can expand their business but to attract more customers they can diversify
their business.
CONCLUSION
From the above report, it can be concluded that Business Growth refers to the stage in
which a business has to aim for growth and expansion. The management of the organizations are
required to make sure that they can use the right opportunities so that the growth and expansion
can be targeted by them effectively and efficiently. Analysis of the internal and external
environment can be done so that the organizations can evaluate growth options. Critical analysis
of the competitive strategy is helpful in deriving of conclusions and recommendations. Also,
reflection can be carried out on the business portfolio of the company so that the right decisions
are taken in the future.
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REFERENCES
Books & Journals
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Gielnik, M. M., Zacher, H. and Schmitt, A., 2017. How small business managers’ age and focus
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