Business Analysis of Brunswick Press in Potters Bar, Hertfordshire
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This report analyses the business of Brunswick Press in Potters Bar, Hertfordshire using SWOT/PESTEL analysis, Porter’s Five Forces Model, and identifies key issues faced by the owner/manager of the company.
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Company and Business Problem Brunswick Press Potters Bar Hertfordshire
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Table of Contents INTRODUCTION......................................................................................................................3 EXTERNAL ENVIRONMENT INFLUENCE ON THE COMPANY.....................................3 Key stakeholders, strengths and weakness of the company...................................................3 SWOT Analysis.....................................................................................................................4 Porter’s Five Forces Model....................................................................................................4 Key issues faced by owner/manager of the company............................................................5 CONCLUSION..........................................................................................................................6 REFERENCES...........................................................................................................................7
INTRODUCTION Business analysis helps the company to analyse its business. Through it the needs can be defined and how to satisfy is also recommended. The past and present data is evaluated to make decision in consideration with the goals of the company. Brunswick Press is one of the largeprintingcompany.Itisintoprintinganddesigningofleaflet,flyer,brochure, promotional item and many more. It is also into customised product printing. This report will analyse the business by using various models, theories and different tools. Will analyse the company by using SWOT/ PESTEL analysis (Brunswick Press, 2022). It will help to analyse the company on the basis of external environment. Analysing the position using the Porter’s Five Forces Model. Lastly, the report will identify the issues faced by the company’s owner/ manager which impact the business and its growth. EXTERNAL ENVIRONMENT INFLUENCE ON THE COMPANY The business dependent on the internal as well as the external environment. But in a economy when there is a lots of complexity then even successful businesses fails. As the external factors influence the business as based on these factors the stakeholders make decisions. Key stakeholders, strengths and weakness of the company The key customers keeps the company as a going concern. As they only helps the company to grow and expand its business operation. Brunswick Press key customers are specially youth as they are more into customised and unique products. On the basis of them only company make major decisions. The suppliers are the one who supplies the materials and other things. Brunswick Press have good relationship with them so that it can grow. As well as the key competitors aremanylikeAdfactors,Maitlandandmanymore(GuentherandGuenther,2022). Brunswick Press keep them in mind while making decisions. From the above all factors the company is affected. As the strength of the company is its customers. The new prints that are launched are appreciated by the customers and it earn more revenue. As it have unique things and there are no substitute of them. As well as the company have good relation with its suppliers so that the materials are readily available on time. But there are challenges which are faced by every company in the market. As the technology and the external factors which influence it’s growth. As in the customer needs
changes very rapidly so keeping with it is difficult for the company (Tien, Phu and Chi, 2019.). The cost is also increased due to this which sometimes result in low revenue. SWOT Analysis It help Brunswick Press to analyse its strengths to expand its business. The weakness which are to be taken care by the company. Opportunities available in the environment to compete in the competitive environment. The threats which are caused which reduces its growth. The analysis is elucidated below: Strength-Brunswick Press is a dealer of wide variety of products. Due to this and its market leadership position it has large market share and is growing rapidly. As it keeps changing its products and bring innovative products to attract customers. Which fulfil the needs of the customers as they can get variety of products (Teoli, Sanvictores and An, 2019). It can charge more as it has the unique products compared to all its competitors. Due to this the company have the strength to charge more and expand its customer base. Weakness-As in the competitive market and employees high cost of living. Brunswick Press requires huge cost of maintenance. As due to increase in technology the extra cost is incurred which further reduces its profit margin. Many new competitors are entering the market so it is difficult to compete with the new talent. Opportunity-As the preferences of customers is changing rapidly so being rich in market. Brunswick Press takes first mover advantage in market to increase its customer base. As the company is good in online space so it is easy for marketing its products. The revenue of the company has increased due to it (Quezada and et.al., 2019). As the company have huge funds which can be used for marketing and even for production and research of new technologies. Due to this the company can gather huge market and customer base. Threat -As more new talent is required to bring innovative products. So Brunswick Press has shortage of human resources. Mainly due to the external factors also it get impacted as political environment plays an important role. Due to the new emerging talents it becomes tough to compete with the competitors. Due to less communication with the workers the work is done less effectively and efficiently (Abdel-Basset, Mohamed and Smarandache, 2018). As it does not keep the them to be motivated. More new startups have increased due to this the threat is increasing. Porter’s Five Forces Model The five factors are explained below: Threats of new entrants-It is low for Brunswick Press as it has economies of scale. To enter a new market huge capital is required. As in this industry product differentiation and
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technology changes are rapid so it is difficult for new to enter in the market. To enter into the market the company need to follow all the legal aspects. As the existing company already have its brand value so it become difficult to compete in this environment (Bruijl and Gerard, 2018). The setup cost required is also huge and more investments are required at initial stage of the business. Snatching the customer from competitors is difficult as customer loyalty plays a vital role. They want to be satisfied so they prefer to buy from the existing company. Bargaining Power of Suppliers-It vary from low to moderate as the product in the market are different. As the number of suppliers are limited so sometimes supplier have more power over the prices. The new products do not have substitute or they may not be easily available in the market. So the power of the company increase as they have huge customer base and unique products (Song, Wang and Zhu, 2018). Customers are ready to give according to their satisfaction and quality of product. The product quality is supreme and it is based on the needs of the customers. The customer can even pay more for the thing which satisfies its need. Bargaining Power of Buyers-It is moderate as the buyers nowadays have knowledge about the product they are purchasing. But Brunswick Press produce unique product which are not produced by every company so the buyer has to purchase. As the quality of products also matters to the customer. The company focus on good quality so the risk is moderate to low. Threat of Substitute-It is low as there are very few substitutes available in the market. As Brunswick Press produce customize products and prints. As due to high quality it is expensive for the buyers. As the company focus on different products which provide benefits to the customer as per their needs. Rivalry among existing firms-It is low as the competitors in this industry are less. Brunswick Press has a large market size and huge customer base. There are very few companies how are close competitor (Wood and et.al., 2021). As the company focus on more advanced and automation so it takes that advantage over the other companies. In the long run the substitute for each thing will be made available easily. Key issues faced by owner/manager of the company The issue faced by Brunswick Press which hinder the operational performance are like for managing the company many decisions regarding operations are to be taken wisely. As managing the overheads is a big problem as sometimes due to technology and changes more overheads are incurred (Weiss, 2021). This in turn reduces the profit and increases the cost. As in evolving environment there is uncertainty as the market keeps changing. So, the
company has to re-think and re-measure its goal and future plan. So that the goals can be achieved. The company sometimes have problem of cash flow. As due changes in budget or huge cost it faces the issue of unbalanced cash flow. So to maintain it the company now focus on the planning and following the budget. Due to lack of responsibility and accountability also the company faces problems (Vidal and Van Buren III, 2022). As the worker should be given responsibilityand should be accountablefor the work performed by them. As measurementofperformanceisnecessarytomotivatetheemployeestoworkmore effectively. Communicationandleadershipbothplaysavitalroleinthecompany.It communicates with the higher authority only so the workers working do not work efficiently. As communicating with them gives them the feeling that they too plays a huge role in the success of the company. Leadership is important as without control and delegation of work it may be done in wrong manner. As the employee should know whom to report the work which is performed. As it even help to motivate the worker. Due to increase in cyber risk the data of the company is not safe. So it can even attack and hack the system which have the information regarding the customers. It is very risky nowadays to keep the data of the business safe. Due to this the operation of the company face issues and the management has to keep more security to keep it safe. Another issue faced is finding the staff for the company with right knowledge and innovative skills which increase the growth of the company. CONCLUSION From this report it can be concluded that Brunswick Press has influence of external environment over the business. It can be seen that the key issues and challenges which are faced by the company. Its competitors which give it a cut throat competition in the market. Through SWOT analysis the strength, weakness, opportunities and threat of the company can be evaluated. It can be seen that as the company have huge market share so it has opportunity to take first mover advantage. The company uses various methods to lessen its threats which are caused by external environment. It further evaluate Porter’s Five Forces Model through which it can be identified that entry of new entrants is less risky. And the threat of substitute is low as there are less substitute for the products. Lastly, it can be evaluated that due to operational issue the management face issues. Regarding to the cost of operation and the technology.
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REFERENCES Books and Journals Teoli, D., Sanvictores, T. and An, J., 2019. SWOT analysis. Quezada, L.E. and et.al., 2019. Measuring performance using SWOT analysis and balanced scorecard.Procedia Manufacturing.39. pp.786-793. Abdel-Basset, M., Mohamed, M. and Smarandache, F., 2018. An extension of neutrosophic AHP–SWOT analysis for strategic planning and decision-making.Symmetry. 10(4). p.116. Bruijl, D. and Gerard, H.T., 2018. The relevance of Porter's five forces in today's innovative and changing business environment.Available at SSRN 3192207. Song, Y., Wang, H. and Zhu, M., 2018. Sustainable strategy for corporate governance based on the sentiment analysis of financial reports with CSR.Financial Innovation.4(1). pp.1-14. Wood, B. and et.al., 2021. Market strategies used by processed food manufacturers to increaseandconsolidatetheirpower:asystematicreviewanddocument analysis.Globalization and health.17(1). pp.1-23. Weiss, J.W., 2021.Business ethics: A stakeholder and issues management approach. Berrett- Koehler Publishers. Vidal, N.G. and Van Buren III, H.J., 2022. Corporate responsibility coalitions and the sustainabilityissuesmanagementcapabilitiesoffirms.SustainabilityAccounting, Management and Policy Journal, (ahead-of-print). Guenther, P. and Guenther, M., 2022. Can B2B firms benefit from competitors' advertising? Adynamicbusinessenvironmentperspectiveonanemergingcommunication form.Industrial Marketing Management.102. pp.252-265. Tien,N.H., Phu, P.P. andChi, D.T.P., 2019. The roleof internationalmarketingin internationalbusinessstrategy.Internationaljournalofresearchinmarketing management and sales.1(2). pp.134-138. Online Brunswick Press. 2022 [Online]. Available Through: < http://www.brunswickpress.co.uk/>. [Accessed 18 July 2022]