Nesbee Chocolate Factory Business Strategy

This assignment analyzes the business strategy of Nesbee Chocolate Factory. It examines their current market position, including factors like profitability, brand recognition, and target markets. The analysis also explores key challenges faced by Nesbee, such as rising production costs, water scarcity, and competition in the chocolate industry. Finally, it proposes recommendations for Nesbee to enhance its strategy, focusing on areas like cost reduction, marketing improvements, product innovation, and sustainable practices.

Running head: BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
Business Environment and Strategic Management of Nesbee Chocolate Factory
Name of the University:
Name of the Student:
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1BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
Table of Contents
Current Environment Analysis........................................................................................................2
Gaps in the Firm..............................................................................................................................4
Objectives for All Business Units....................................................................................................4
Corporate, Business and Functional Units Strategy........................................................................5
Action Plan and Recommendations.................................................................................................7
References........................................................................................................................................9

2BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
Current Environment Analysis
SWOT Analysis
Strengths
 Nesbee Chocolate Factory has solid
name and brand picture
 Nesbee Chocolate Factory delivers
differentiated items like gum and
chocolate (Bharadwaj et al. 2013).
 Nesbee Chocolate Factory concentrate
on numerous industry segment
(entertainment, resorts, restaurant,
commercial) with the goal that the
company’s name effectively spread on
expansive market regions
Weaknesses
 Nesbee Chocolate Factory has more
long haul obligation than major rivals
 Company is hard put to do organization
control in view of entering distinctive
geographic market.
 Advertisement costs expanded by 46 %
Opportunities
 Clients need to costlier items/changing
tastes
 Efficiency enhancements for
dissemination
 Nesbee Chocolate Factory has control
correspondence the two clients and
providers (Rothaermel, 2015)
Threats
 Nesbee Chocolate Factory , Mars and
Cadbury are essential power
contenders.
 Nesbee Chocolate Factory item request
diminish in light of expanding diabetes.
 Society hope to mindful more
prominent natural concern with the goal

3BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
 Company has various market ranges
because of expanding in worldwide
exchange.
that Nesbee Chocolate Factory set up
treatment office, which has high cost
(Chang 2016)
Porters Five Forces Analysis
 Threat of New Entrants: In consideration to fact that Nesbee Chocolate Factory has
finished a better name within market yet as nourishment, preparing industry is extremely
gigantic and suitable. So there are several companies that has now entered in market and
in certain manner or another accomplished within a place in market despite the fact that
they could not cross Nesbee Chocolate Factory regarding piece of the overall industry. In
common ways, Nesbee Chocolate Factory is tirelessly within board, and along these lines,
the risk of new participants is observed to be less.
 Threat of Substitute Goods- Substitutes is highly dependable in consideration to certain
point is discussed items showcase, all types of item has a product substitute which brings
it to the competitive position when considered vital. For the product is exceptionally
normal and every day utilize item so the threat of substitutes is extremely high.
 Bargaining Power of Suppliers- Dealing energy of providers is vital factor to be
considered in any industry, as they are the fundamental quality of the organization. Settle
is known for solid relations with the providers around the world due to high purchasing
power and furthermore in view of the way that in such dairy and rural items quality is
constantly vital (Wheelen & Hunger, 2017).
 Bargaining Power of Consumers- The bargaining power of consumers has dependably
been a critical factor regarding organization's manufacturing capability is considered

4BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
being within sensible esteem while remaining within position of a company. Consumers
convey gigantic amount of bargaining power along with usage of various Nesbee
Chocolate Factory items.
 Competitive Rivalry- Competition if high would bring high achievement yet in the event
that negative would demolish the entire business so it ought to be investigated for better
eventual fate of the organization. Nesbee Chocolate Factory has an exceptionally solid
position in the nourishment handling industry however; few noteworthy adversaries do
exist in the business like Kraft Foods and Groupe Danone (Peteraf, Gamble &
Thompson, 2014).
Gaps in the Firm
Certain gaps are identified in Nesbee Chocolate Factory’s strategy implementation and
effectiveness. It has been gathered that brand extension strategy implemented by the company
had several loopholes as this resulted in loss of decentralization benefits (Hill & Jones 2013).
The company is not capable to proximity within business sectors that offers a company to attain
capacity to develop items that is aligned within local client researchers, accessing geographical
factors of information development along with advancement attainment to some quality
researchers along with a company’s capability to gain from distinct market and societies. In this
way, based on the R&D methodology, it might be gathered that Nesbee Chocolate Factory might
experience problems maintaining its competitive advantages later on as an aspect of its future
procedure is to grow within distinct markets (Hill, Jones & Schilling, 2014).

5BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
Objectives for All Business Units
Nesbee Chocolate Factory has its business units in Australia and Africa and strategic
objectives for each business units of the company are stated under:
 For business unit of the company in Australia, Nesbee Chocolate Factory has strategic
objective of associating all its competitive strategies with its key business units (SBUs).
These have obligation considering abnormal state vital choices and participate in general
key business improvement, encompassing acquisitions and market passage methodology.
Parallel within structure, there is a territorial connection that partitions the universe
within five noteworthy topographical zones, for instance, Europe, North America along
with so on (Morecroft, 2015).
 Another objective that has been effective for Nesbee Chocolate Factory includes
targeting major companies with other extensive organizations. Nesbee Chocolate Factory
went into cooperation with leading chocolate companies in prepared to-drink teas and
espressos request to profit by Nesbee Chocolate Factory's overall packaging framework
and aptitude in arranged refreshments.
Corporate, Business and Functional Units Strategy
 Arenas: Nesbee Chocolate Factory utilize item publicizing in order to develop a picture,
highlights, uses, benefits and appropriation of items. They show their publicizing by
means of TV, magazines, radio, daily papers, open-air show and web. Along these lines,
purchasers might observe an item’s physical confirmation (Sakas, Vlachos &
Nasiopoulos, 2014).

6BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
 Staging- Nesbee Chocolate Factory has a solid marking, high calibre with sensible cost to
secure their market position. Use promoting to push the item's advantages for target
client. Keep up and control over item quality to guarantee consumer loyalty (Kew &
Stredwick, 2017). For instance, Nesbee Chocolate Factory gather the clients' input
through their client benefit line and email. Contact with key channel particularly retailers
to show signs of improvement rack space that effortlessly get clients' eyes.
 Economic Logic- Level local deals reflect stoppage in local economy along with changes
in purchaser spending conduct. The powerless market slants because of the worldwide
financial stoppage and changes in purchaser spending conduct (spending less and sparing
more), make them bear to the Group's household business, which stayed level for the
period under survey (Peppard & Ward, 2016).
 Vehicles- The Company utilizes the aberrant advertising channel with escalated
appropriation that makes an item accessible in the extreme number of vendors or outlets
in every zone to pick up however much presentation and the greatest number of offers
open door as could reasonably be expected.
 Differentiation- Product differentiation serves as a process of recognizing a product or
offering from others, to make it more alluring to a specific target advertise. This includes
separating it from competitors' items and in addition, a company's own particular item
offerings. Filtered water is not a substitute for tap water, or water conveyed by means of
people in general water distribution system. Filtered water gives a contrasting option to
different beverages.

7BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
Figure 1: Strategy Diamond
(Source: Jenkins & Williamson, 2015)
Action Plan and Recommendations
An effective action plan along with recommendations has been provided to the Nesbee
Chocolate Factory that can facilitate the company in addressing the gaps within the from in
attaining strategic advantages. Such recommendations are explained below:
 Nesbee Chocolate Factory’s strategy must be to get local companies having specific end
objective in order to prepare a collection of self-ruling territorial supervisors that reveals
the way of life within the closer markets than Americans or Europeans. Nesbee Chocolate
Factory’s high income and certain accepted value proportion does not consider it with
plentiful power for takeovers. In addition, Nesbee Chocolate Factory attained Indofood,
Indonesia's largest chocolate producer (Jenkins & Williamson, 2015). Their concentration

8BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
is on growing deals within Indonesian market and with years will hope to trade chocolate
products to different countries.
Recognizing the effect of developing demand for chocolates and escalating water shortages
in its future business, Nesbee Chocolate Factory looks to enhance providing profitability
practices and water use. As Nesbee Chocolate Factory is, the best company everywhere
throughout the universe however there are certain proposals and recommendations.
 Their expenses remain a bit increased so they should low their expenses to motivate the
Customers.
 Over 70 % people use certain items regarding reasons for which rest do not use them they
should direct study and centre on those certainties regarding the reasons for which they
are not using such items.
 They ought to enhance their promotion. Their promoting does not pay long haul impact
in the psyche of clients.
 Around 17% individuals are not fulfilled from the essence of Nesbee Chocolate Factory
so the company needs to enhance its taste.
 Due to an extraordinary demand of dark chocolate now days there is a deficiency of
Nesbee Chocolate Factory’s chocolates in shops some of the time they need to consider this
aspect as well.

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10BUSINESS ENVIRNMENT AND STRATEGIC MANAGEMENT
References
Bharadwaj, A., El Sawy, O. A., Pavlou, P. A., & Venkatraman, N. V. (2013). Digital business
strategy: toward a next generation of insights.
Chang, J. F. (2016). Business process management systems: strategy and implementation. CRC
Press.
Hill, C.W. & Jones, G.R. (2013). Strategic management theory. South-Western/Cengage
Learning.
Hill, C.W., Jones, G.R. & Schilling, M.A. (2014). Strategic management: theory: an integrated
approach. Cengage Learning.
Jenkins, W., & Williamson, D. (2015). Strategic management and business analysis. Routledge.
Kew, J., & Stredwick, J. (2017). Business environment: managing in a strategic context. Kogan
Page Publishers.
Morecroft, J. D. (2015). Strategic modelling and business dynamics: a feedback systems
approach. John Wiley & Sons.
Peppard, J., & Ward, J. (2016). The strategic management of information systems: Building a
digital strategy. John Wiley & Sons.
Peteraf, M., Gamble, J., & Thompson Jr, A. (2014). Essentials of strategic management: The
quest for competitive advantage. McGraw-Hill Education.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.