Organisational Strategy - Adnams Assignment
Added on 2021-02-20
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ORGANISATIONALSTRATEGY
Table of ContentsINTRODUCTION...........................................................................................................................................2MAIN BODY..................................................................................................................................................3Key challenges faced by Adnams in the external environment...............................................................3Explains the key internal factor regarding the situation of the business.................................................4Strategic Decision which can be taken by the ADNAMS to grow.............................................................5Recommendations for Adnams’ development over the next ten years..................................................6CONCLUSION...............................................................................................................................................7REFERENCES................................................................................................................................................9
INTRODUCTIONOrganizational Strategy is the set of action which are taken to improve the performance and to achieve the long term organizational goal. Adnams is a regional brewery founded in 1872 by thefounder George and Ernest Adnams. These report highlights the Key challenges which are faced by the Adnams in their external environment. Further these report explain the key internal factor of the Adnams. These report also contain the strategic decision which can help the business in growing the business in global market and in the end report recommend ate the development policy for ADNAMS. MAIN BODYKey challenges faced by Adnams in the external environment.Despite the regular research and development work carried out by the R&D department ofAdnams; the recurring changes in the market always presents challenges which have to be dealtwith in the external environment. Some of the key challenges faced are: -Strict Regulations: - Alcohol industry has always been the one which has been strictlymonitored by the government. The trade practices are not easy to carry out and the deals and thenegotiations carried out in this industry are always keenly scrutinized by the government, whichhas hampered the success of the Adnams as the company has to regularly evaluate thegovernment policy and need to change the function according to that which takes lot of timewhich has eventually becomes the big problem (Zokaei and et.al., 2016).Evolution in Consumer’s tastes: - Over the time, there has been a change in the idea behindrelaxation. Earlier people preferred a bottle of beer after a hard day’s work. Now a day, peoplehave refined their tastes and a glass of wine is a more preferred source of relaxation than a beerpint. This has affected the business as the Adnams was well known for the beer produce by thecompany and hence the consumption of the bear is lower down in the country it has force thecompany to change the operation but that have not proved that successfully. Preference for Drinks Containing Higher Alcohol: - People have shifted from Adnams’ lowalcohol containing beers to something stronger. Pubs have also reported increased sales of cask
ale and since it is more profitable, they have increased its supply. Though Adnams has venturedinto providing caked drinks, it has not been able to shake the image of its good old beer company(kellern, Markey and Thornthwaite, 2017).Discouraging Alcohol Consumption: - People have become wiser and more educated abouthow they should spend their hard earned money, especially after the recession period. Theincome generated by pubs has declined. The rise in the prices of beer at Adnams has also been amajor reason for the downfall in the sales of their beer. As promoting the alcohol is not permittedin the country it has affected the Adnams as the company is not able to communicate themessage of the company to the customer which is affecting the business in the negative way.Increasing Health Consciousness: - Due to so many health activists and health awarenessprograms being held, people now understand that beer is an extremely unhealthy drink. This hasbecome a major challenge for Adnams as it has reduced their sales drastically and their markethas been replaced slowly by wines and other organic drinks.Innovative Beer packaging strategies of Competitors: - Various competitors of Adnams haveevolved their beer bottles and the raw materials used to manufacture it making it more attractive.They have reduced the weight of the beer bottles and have replaced the glass used inmanufacturing earlier with the plastic and later Amcor used a material called Bind-Ox whichprevented the beer by blocking oxygen from reaching to it. This increased the shelf life of theirbeer which further increased the competition for Adnams. Adnams has gone with the traditionpackaging which is now not able to attract the customer and eventually resulting in loosing thecustomer to the other competitor (URVISH, 2016).Supply Chain Management: - Adnams need to improve their mechanisms which they use inproduction of beer and despite their Old Country vibes which their advertisements try to portray,their lack of interest towards CSR Activities and refusal of proper waste treatment have created anegative impact on its customers.Explains the key internal factor regarding the situation of the business.Human Resources: The main aspect of Adnams Internal business situation is there human manpower as the employee loves to work for the company as the culture of the company helps them to showcase their ability more proficiently as company also looks for the need and
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