Understanding Business Strategy

Running head: BUSINESS STRATEGY
Business Strategy: A case study of Boost Guarana
Name of the Student:
Name of the University:

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Table of Contents
Task 2: Analyzing the internal environment and capabilities of Cadburys.....................................3
1. Introduction to SWOT analysis...............................................................................................3
2. SWOT analysis of Cadburys and Boost Guarana....................................................................3
3. Conclusion...............................................................................................................................5
4. Introduction to Mc Kinsey’s 7s model....................................................................................5
5. Advantages of the model- Mc Kinsey’s 7s model...................................................................6
6. Explanation of Mc Kinsey’s 7s model to Cadburys................................................................7
7. Conclusion...............................................................................................................................8
M2: Evaluation of the internal environment to assess strengths and weakness of Cadbury internal
capabilities, structure and skill set...................................................................................................8
Task 3: Evaluation of competitive forces of chocolate sector for Cadburys and Boost Guarana
using Porter’s five forces model......................................................................................................9
1. Introduction to Porters five forces model................................................................................9
2. Porters 5 forces model to Cadburys and Boost Guarana.........................................................9
3. Conclusion.............................................................................................................................10
M3: Strategies to improve competitive edge and market position based on outcomes.................11
1. Brand extension and strategic alliance..................................................................................11

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2. Use of brand extension or strategic alliance to counteract the threat of substitutes for
Cadburys Boost Guarana...........................................................................................................11
3. Defend against the threat of industry rivalry.........................................................................11
4. Conclusion.............................................................................................................................12
Task 4: Strategic planning for Cadburys and Porters Generic strategy model and the Ansoff
matrix to Cadburys Boost Guarana................................................................................................12
1. Introduction to Porters Generic strategy model.....................................................................12
2. Cost leadership, Differentiation and Focus...........................................................................13
3. Strategies to Cadburys Boost Guarana..................................................................................13
4. Introduction to the Ansoff matrix..........................................................................................14
5. Market Penetration, Product Development, Market Development and Diversification.......15
6. Two strategies from the Ansoff matrix and relate to Cadburys Boost Guarana....................15
7. Conclusion.............................................................................................................................16
M4: Strategic Management Plan...................................................................................................16
1. Mission statement for Cadburys............................................................................................16
2. Objectives for Cadbury Boost Guarana.................................................................................16
3. Segmentation, targeting and positioning strategies for Cadburys Boost Guarana................16
4. Marketing mix strategies for Cadburys Boost Guarana........................................................17
5. Definition of implementation................................................................................................18
6. Definition of control..............................................................................................................18

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References......................................................................................................................................19
Task 2: Analyzing the internal environment and capabilities of Cadburys
1. Introduction to SWOT analysis
SWOT analysis is a process which identifies the strength, weakness, opportunities and
threats of Cadbury and Boost Guarana. This analysis determines the factors which accomplish its
objectives, obstacles to overcome and minimizes to get desired outcomes. Strengths describe
what the company excels and distinguish it from their competitors. Weakness stops the company
to perform at optimum levels (Rothaermel 2015). Opportunities are external factors which the
company uses to provide competitive advantage. Threats are factors which have potential to
harm the company.
2. SWOT analysis of Cadburys and Boost Guarana

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Figure 1: SWOT analysis of Cadbury and Boost Guarana
(Source: Elbardan, Ali and Ghoneim 2016, pp-239)
Strengths of Cadbury and Boost Guarana are as follows:
Strong manufacturing process: Cadbury and Boost Guarana have stronger
manufacturing process that adapts to change the taste of customers and meet with the changing
demand of their customers.
Product range: Due to launching of new chocolate bar product, Boost Guarana has
diverse range of products enable it to compete the company into emerging markets.
Strong product brand: The launch of first chocolate bar for energy simulation of brain by
the company, Boost Guarana offers extra energy as the energy drink. This product meets with the
need of genuine customers for simulate their mind and complement of their busy lifestyle
(Djohanputro 2016).
Weakness of Cadbury and Boost Guarana are as follows:
Increase of cost: The Company is based on confectionary in their main product which
attempts to tax higher sugar as well as fat foods like chocolate. It results to increase of cost,
which may pass these to customers either by higher price or by production of smaller bars.
Lack of market research: Before launching the new product, Boost Guarana into the
market, Cadbury is required to consider undertake a market research to understand the
customer’s tastes (Bull et al. 2016).
Opportunities of Cadbury and Boost Guarana are as follows:

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Increase market share: The emerging market provides opportunities for Cadbury for
increasing their global market share within China, Russia.
Cheaper labour cost: The production of chocolate are moved to low cost countries,
where there is cheaper labour cost help to save cost and therefore Cadbury benefits from
economics of scale (Bull et al. 2016).
Threats of Cadbury and Boost Guarana are as follows:
Impact on profit margin: Due to increase into cost of fuel, packaging as well as sugar as
it impacts the profit margin of Cadbury. It impacts the aggressive price as well as promotional
activities from the competitors and retailers among increase cost conscious customers
(Djohanputro 2016).
Health consciousness on rise: The demand of the company’s products impact by
increase concerns regards obesity as well as the customers become health conscious.
3. Conclusion
It is concluded that new chocolate energy bar helps Cadbury to reach a peak of
achievement. The company is focused on global growth of their products. The company is also
looking for other countries to market their products globally. Finally, the company is required to
strengthen their brand name of Boost Guarana more in the UK market.
4. Introduction to Mc Kinsey’s 7s model
The model is described how efficiently one can able to organize the company holistically.
It is based on seven elements to improve performance of company and also examines future
changes into the company. The model is categorized as hard and soft elements. Hard elements