Role of Strategic Investment in Business Transformation - Greggs' PLC

This dissertation explores the role of well-developed strategic investment in transforming the business capacity of Greggs' PLC. It discusses the advantages of strategic investment in improving business capacity and the challenges faced by Greggs' PLC in using strategic investment techniques. The research aims to identify the impact of strategic investment on overall organizational activities.

Programme Title Business Management Extended Degree (QA)
Module Title Business and Management Dissertation
Academic Declaration:
Students are reminded that the electronic copy of their essay may be checked, at any
point during their degree, with Turnitin or other plagiarism detection software for
plagiarised material.

HOW A WELL-DEVELOPED
STRATEGIC INVESTMENT CAN
TRANSFORM A BUSINESS
INTO A COMPLETE SUCCESS

CONTENTS
1.1 Introduction....................................................................................................................................................4
1.2 Background of the Organization....................................................................................................................5
1.3Overview of the topic......................................................................................................................................5
1.4 Research Focus...............................................................................................................................................6
1.5 Research structure.........................................................................................................................................7
2.1 Introduction of the literature review.............................................................................................................9
2.2 Literature Gap................................................................................................................................................9
2.3 Strategic investment in context of an organisation.......................................................................................9
2.4 Advantages of strategic investment in improving business capacity of Greggs’ PLC..................................10
2.5 Challenges that may face by Greggs’ PLC while using strategic investment technique in transformation of
their business workings......................................................................................................................................11
REFERENCES.......................................................................................................................................................14

CHAPTER 1
INTRODUCTION
1.1 INTRODUCTION
In this competitive business world, a business survival depends mostly on how the
company learns and knows to adapt to continually changing market, customer behaviour,
economic and political environment. Retailer businesses are facing now big challenges and
has undergone significant changeswith consumers’ become more sophisticated in their
choices, competition get more intensified and new technologies.
A recentstudy made by PwC and the Local Data Company, shows that 1,234 stores of
the British first five hundred high-streets were closed in the first six months of 2019. Fashion
retailers, followed by restaurants and pubs, met the biggest decline (Akdil, Ustundag and
Cevikcan, 2018).Lisa Hooker, consumer markets leader at PwC, mentions that retailers
should make their stores more relevant to today’s consumer. It is a suggestion that there is
an increasing necessity for businesses to adapt to new market environment, and often this
involves making afferent investments accompanied by efficient long term business and
functional strategies.
Because cultural, technological and economical factors change, businesses must
accept these changes and adopt and follow a strategic plan. Johnson (2017) defines a
strategic planas asystematic analysis and exploration to develop an organization’s strategy.
A functional strategy is the one that defines how the components and resources of an
organisation to deliver effectively business level strategies in terms of resources, people and
processes. Effective strategies will imply, most of the time, some level of investment in
business’s capital or assets. Investment is considered to be a compulsory element of a
functional strategy. Kaplan (2001) describes investment as an input of resources with the
aim to gain future profits. It involves commitment of resources in the hope that some
benefits will arise in future.

1.2 BACKGROUND OF THE ORGANIZATION
Greggs’ PLC is the UK number one bakery and at the same time food on the go
retailer. Greggs’was first opened in 1939 by John Gregg. Initially it was operating as a
bakery. Only in 1951, first Greggs store was opened. Until 2013, Greggs’ main product line
was bakeries and pastries. Company mainly specializes in selling of savoury products such
as sausage rolls, sandwiches, backed goods and sweet items including vanilla slices and
doughnuts. The number of shops grew over time, but the main expansionwas as a result of
the acquisition of other bakery stores across in UK, including the purchase of Bakers Oven,
in 1994, company’sfirstcompetitor, Bakers Oven (Greggs, 2019). The downwards direction
of the company was changed in 2013, when Roger Whiteside became CEO (BBC, 2014).
Under his directive the company made a lot of amendments in its customer approach,
bychanging its specialization mainly as a bakery to “food on the go” market.
Now the company has 6 centers of excellence and the company has just inaugurated
its 2,000th store. The number of employees is over 22,000 and weekly 6 million customers
are being served (Greggs.co.uk, 2017). In 2013 Roger Whiteside was appointed as a new
Greggs’ CEO. Under his management Greggs has decided to undertake a £100 million major
investment program, lasting for the next 5 years. The scope of this investment was to
create a new Greggs and leave behind the decentralized traditional bakery into a new,
centrally run food-on-the-go business. The major purposes of this program were:
- Brand reposition. Creating a new image of the company, leaving behind the take-
home food position and develop a food-on-the-go strategy.
- Development and gaining the ownership of their supply chain. An important aspect
in business centralization program was the creation of centers of excellence both in
manufacturing and distribution channels.
- Changing and adapting Greggs’ range of products in line with the new consumers
preferences,
- Modernization and renovation of Greggs’ store.

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1.3OVERVIEW OF THE TOPIC
This project is based on strategic investment and its impact on business success.
Strategic investment introduces as a transaction that is directly related with joint venture. It
is an effective technique, in which an individual organisation makes an investment in
another organisation (Appiah-Adu, Okpattah and Amoako, 2018). These two organisations
enter into a written agreement to serve shared goals. In addition, strategic investment
means investment by an organisation that is planned to make it much more successful over
time, for instance investment in a new company that provides new market or that is
implementing new products. Investment is an essential modern technique that needs to use
Greggs’ range for expanding their business and raising capital. This is needed to enlarge the
business, to become competitive in term of quality of product, technology and to fulfill
customer’s needs and market demand.
There are different advantages and disadvantages of using strategy investment, and
their impact on overall success of Greggs’ range. One of the main benefits of well-
developed strategic investment is it decrease the risk and provides an effective chance for
diversification of capital. As it turn to support an organization by increasing their returns and
profitability. One of the biggest drawback of strategic investment is it tend to be large and
thus investment process consumes maximum time (Damhuis, 2019).
1.4 RESEARCH FOCUS
Aim of the research
Main aim of this research is to identify the role of well-developed strategic
investment in transformation of business capacity to accomplish overall organisational
activities. A study on Greggs’ PLC.
Objectives of the research
 To develop basic understanding about the strategic investment in context of an
organisation.

 To identify the advantages of strategic investment in improving business capacity
of Greggs’ PLC.
 To analyse the challenges that may face by Greggs’ PLC while using strategic
investment technique in transformation of their business workings.
Research questions
 Explain about the strategic investment in context of an organisation?
 How well developed strategic investment helps Greggs’ PLC in transformation of its
business capacity to high standard working?
 What are the several challenges that may face by Greggs’ PLC while transforming
their business workings through use of strategic investment technique?
1.5 RESEARCH STRUCTURE
This is an important part of project as it helps reader in identification of information about the
each chapters required to complete dissertation. These chapters will be explained as below:
Introduction: This is a first part of the report that includes overview of the topic, background of
the organisation, research aim, researcher objectives, research questions and many other sub
activities. These activities support reader in identification of main purpose and importance for doing
this investigation (Guadaim, 2019).
Literature review: This is another main activity that is completely based on secondary sources.
These sources are books, magazines, articles, journals, publication research etc. All these are
considering most useful sources under this section. As these provides detailed and in-depth
information about the topic. Main purpose of this section is to find out the gaps in previous study.
Research methodology: This section of the dissertation helps reader in identification of best method
and approaches of data collection. Under this part of the report, researcher will require number of
methods such as qualitative and quantitative method, primary and secondary sources of data
collection, sampling techniques, research approach, research philosophy, time horizon etc. These are
main layers of research onion framework that will be used by researcher for completing research
methodology section in systematic and effective manner (Li and et. al., 2019).

Data collection and interpretation: This activity of the report is based on data collection and
data analysis. For collecting information regarding the topic, questionnaire will be used because it
facilitate in collecting of valid and quantitative data. In order to analysis quantitative data coding will be
followed because it support researcher in making of patterns on each and every questions.
Conclusion and recommendation: This is a main part of the project that include entire
summary of the report. This section helps reader to identify research aim is achieved or not. Along
with this, conclusion and recommendation of the project is mainly related with the research findings
(data collection and interpretation). As it support in completion of each activities of dissertation in
effective manner.
Reflection and an alternative research methodology: Reflection statement will be develops
by an individual for exampling their experience and overall journey in performing current project.
Alternative methodology is a part of methodology that is suggested to the researcher to could use in
future. Interview is considered as an alternative methodology that will be used in further research (Ma
and Jin, 2019).

CHAPTER 2
LITERATURE REVIEW
2.1 INTRODUCTION OF THE LITERATURE REVIEW
This section contains a literature review of the main aspects that have defined
Greggs’ corporate strategies. The information has been collected from books, journals,
internet sources and defines the concepts of corporate strategy, vertical integration and
ownership of the supply chain, customer experience under store refurbishment strategy
undertaken by the company, product development, and new era technologies. With the
help of literature review, researcher can easily address each objectives and questions of the
project (Marinova, 2018).
2.2 LITERATURE GAP
Main reason behind doing this research is to fulfil research gaps. Main gap of this
research is to identify the role of well-developed strategic investment in transformation of
business capacity to accomplish overall organisational activities. According to the past data,
researcher is identifying the importation about the strategic investment but they not find
out its importance within an organisation. Therefore, with the help of this project,
researcher can easily analyse role of strategic investment and also challenges associated
with the strategic investment (Rodríguez-Pose and Wilkie, 2019).
2.3 STRATEGIC INVESTMENT IN CONTEXT OF AN ORGANISATION.
According to the Sequeira and et. al., (2018), Strategic investment is an effective
term that is applies to two distinct methods for interest in the monetary world. The first is
when an individual or a company invests with the goal of generating safe, steady returns,
usually with the advice of a consulting company, which keeps up with trends in the market
and addresses the needs of the customer. In the second instance, it applies to an
organization's choice to put resources into another, smaller organization, normally a start-
up, in view of long term strategy, instead of basic benefit. Strategic investment is frequently
used to raise capital and validity for new organizations which are struggling to advance in
the market. Bigger organizations make key interests in small ones for a variety of reasons
such as investment is made in light of the fact that the smaller organization makes

comparable items, smaller organization may in the long run become a customer of the
larger organization, small business may be taking a shot at new and creative innovations and
thoughts etc. These are biggest reasons for using strategic investment that helps an
organisation in development of its success and growth at marketplace.
Strategic investment provides the contributing organization access to assets or
resources at a genuinely minimal effort. For example, when the targeted organization's
business is to create technology or innovation, which the contributing organization find
helpful, the latter can create a strategic investment in the previous organization as opposed
to building up its own innovation. This will diminish the expense of building up that
innovation or technology to a better extent. For the contributing organization, an
investment is normally made in return for a portion of authority over the organization. This
permits the organization to ensure its venture, and to shape the way of the small business’s
and product offerings (Szilagyi and et. al., 2018).
On the other hand, the way toward recognizing and assessing different key strategic
investment could be costly, time consuming and complex. The larger organization may
communicate a wish to assume control over the littler organization at some point in the
future, when the small organization has proved itself practical and beneficial. On the off
chance that the smaller organization neglects to keep up to its understanding because of
any explanation, there is consistently the risk of the strategic investment being pulled out.
2.4 ADVANTAGES OF STRATEGIC INVESTMENT IN IMPROVING BUSINESS
CAPACITY OF GREGGS’ PLC.
As per the view point of Furtado (2016), strategic investment is an exchange which is
securely identified with joint venture. In this technique, one organization makes an interest
in another organization. These two organizations go into consent to serve shared objectives.
Strategic investment is needed or required by Greggs’s Plc for improving their business
capacity. As raising investment or capital is a significant up to date technique to open or
enlarge the company. This is necessary for company to expand their business
capacity, to stay competitive in form of technology, innovation, quality of goods & to
satisfy need and requirement of customer and market. Along with this, decision
making regarding strategic investment includes the process of finding, evaluating
and choosing among projects that are possible to have a positive impact on the

business. It is extremely competitive environment; globalisation is a particularly
attractive strategic investment for entire kind of organisation like Greggs’s Plc. On the
other hand, making the effective decision of globalisation, like many other investment, is
more risky because of high uncertainties involved it. Along with this, there are number of
advantages of strategic investment in enhancement of Greggs’s Plc business capacity. Some
advantages will be explained as below:
 Strategic investment isn't constrained to budgetary venture as here the financial
specialist searches for considerably more and it is a long haul vision and objective.
 The brand is acquired readymade and instantly.
 It encourages the Greggs’s Plc to get built up advertise, established market, ability
labour at removal and one can directly obtain the platform of set up innovation,
technology, customers and sellers.
 It diminishes the hazard and gives an open door for enhancement of store for
augmenting return for the Investing Company.
 It also supports Greggs’s Plc to enhance its value or importance in the case listed in
stock market (Appiah-Adu, Okpattah and Amoako, 2018).
 Strategic investment also assists Greggs’s Plc to acquire fund or capital for the
motive of enlargement of business capacity and profit.
 This technique also provides freedom to a Greggs’s Plc to enlarge and accelerate
their business capacity via the investor’s distribution network, infrastructure, sales
and marketing.
Therefore, above mentioned all these are determined as main advantages of strategic
investment that helps an organisation in improvement or enhancement of its success at
national as well as international level.
2.5 CHALLENGES THAT MAY FACE BY GREGGS’ PLC WHILE USING STRATEGIC
INVESTMENT TECHNIQUE IN TRANSFORMATION OF THEIR BUSINESS WORKINGS.
According to the Tu and et. al., (2018), the decision-making process of strategic
investment is one of the biggest challenges for the upper level management of Greggs’s Plc.
There is a significant requirement to obtain these decisions accurate. However, if the
decision of strategic investment proves successful or right, the organisation receives major

strategic as well as operational benefit. However, substantial resources and important
chance are gone if the decision is not accurate or wrong. There are common problems that
faced by an organisation while using strategic investment such as loss of money, lack of
capital, lack of market knowledge, stock market crash, high market volatility, poor
investment skills and many other. These problems have negative impact over business
growth and success of Greggs’s Plc. On the other hand, there are another different numbers
of challenges that may face by Greggs’s Plc while applying strategic investment technique in
transformation of their business working. Main challenges or risk will be described as below:
 It is seen that component of obligation and co-appointment between the key
investor and current organization is not evidently defined which on occasion end up
being unfavourable in light of a concern for Greggs’s Plc.
 It involves different number of factors such as environmental, legal and financial and
somewhere going incorrect may prove to an expensive affair later on and position
may even go out of hand.
 Investment can end up being a very bad choice if due productiveness isn't completed
correctly and the information sources are not analyzed basically.
 The decision process of recognition and evaluating the option of investment is
difficult, and it may go incorrect thereby future of all estimation.
 Local factors and conditions may not understand by the Greggs’s Plc that has
negative effect on its overall success and growth in marketplace (Tu and et. al.,
2018).
Therefore, above given all these are main challenges faced by Greggs’s Plc while
transforming their business through strategic investment. As these challenges or issues have
negative effect over business performance and success of company. It will also impact on
profitability and sales of company by reducing number of customers and increasing high
employee turnover.
As per the above mentioned literature review, it has been concluded that strategic
investment has both positive and negative impact on business success of Greggs’s Plc. Along
with this, literature gap has been fulfil with the assist of above mentioned information
(Akdil, Ustundag and Cevikcan, 2018).

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Available Through: <https://mariopeshev.com/the-biggest-business-challenges-
growing-companies/>