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Business Analysis for Accountants Assignment

Added on -2019-09-18

| 14 pages
| 3185 words

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Business Analysis for Accountants
IntroductionIn this present paper, we will discuss the current strategic position analysis of Imperial tobacco group plc which are the multinational tobacco company and it headquarter is located in Bristol, the United Kingdom. The paper also describes the analysis of current strategies, current challenges faced by the company in operating, an impact of challenges to the organization and the resources and competencies of the company may provide new opportunities to the organization. The company has ranked world’s fourth largest international cigarette company by its market share. The company serves across worldwide, and it is the public limited company thathas approximately 36,400 employees ( et al., 2017). Current strategic positionThe strategic position analysis plays an important role in determining the impact of strategies on the profitability of the business within the particular period of time. There are several areas which need to be assessed in order to evaluate the strategic position of the company. Following are the analysis of business areas:1.Product performanceThe current performance of the products is meeting the expectations of the consumers, and the company is successfully providing the innovative product and services to its target audience.2.Core competencies
The core competencies of the company include wide distribution channel, superior brand building capabilities, acknowledge service skills and effective supply chain management which help to provide a competitive advantage to the company (Strategy et al.,2013) . 3.Resource allocationThe physical resource is available in abundance in the operating locations of the company. There are various sources of innovation such as e-choupal which provides intangible benefitsto the company. 4.Competitive and market pressure There are various external factors which impact on the strategic position of the company suchas a change in the government regulation, change in the need and demands of consumers, innovative products provided by the consumers.The Imperial tobacco group was initiated in 1901 by the merger of thirteen British companies in order to minimize the competition among the competitors within the same industry. The company is diversified into restaurants, financial services, and electronics (Branston et al., 2014).Following are the SWOT analysis of the company:1.Strength The strength of the company includes existing distribution channel and sales network which helps to provide a competitive advantage to the company. It helps to increase the sales volume of the company by reaching to the maximum target consumers. The company lies in the tobacco industry which has a large number of entry barrier due to which there is the limited number of competitors within the same industry. The companyhas the high quality of products and services in order to satisfy the needs and demands of
the consumers. The company has excellent research and development facilities which help to provide innovative products to its customers.2.WeaknessThe diversification in the various business segments is risky for the company. The steep increase in the taxation of cigarette has direct impacts on the revenue of the company. The hotel industry has not big share in the market.3.OpportunityThere are various markets which are untapped by the company in the retail garment, cigarettes, packaging and agricultural products. The company can achieve high growth potential which helps to generate higher profit within the specific period of time. The effective marketing and promotional activities can help to generate higher profits throughbuilding the brand image in the eyes of the customers.4.ThreatThe negative publicity regarding the smoking may impact on the revenue generation of the company. The government policies regarding the banning of tobacco products can adversely impact on the profitability of the company (Naik et al., 2015). Following is the PESTLE analysis of the company: 1.Political factorsThe political environment of the company is favorable because the government has removed expenditure tax in the year 2007-08 and the service tax assumption exemption is budgeted in the year 2008-09. The tax policies have increased the exciseduty in the cigarettes assumption which impacts on the overall sales of the company.

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