Organizational Strategy

Organizational Strategy
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Contents
Introduction......................................................................................................................... 2
Conclusion........................................................................................................................... 7
References.......................................................................................................................... 8
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Introduction
In this short report, discussion is made by focusing on case study Adnams: a living company, which is
tradtionally a brewing firm that was established in Southwold, Suffolk, UK and manufatures ales and
bottled beers. In this report the key challenges faced by Adnams due to their external environment has
been explained along with discussion about significant aspects of their internal business. Also strategic
options and direction to sustain future growth has been presented in this report along with suggestion
that can be considered by Adnams in future.
Q1.
The key challenges that are faced by Adnams in the external environment are as mentioned:
1. The beer sector of United Kingdom had been witnessing greater power of bargain from buyers
because the prefernce of beer consumers have changed dynamically from earlier days an also
more of beer consumers have started to switch from local beers. As such there are ver less
consumers in beer market which have posed challenge for Adnams. This decline in consumers
have resulted as beer industry has been experincing low switching costs due to which beer
consumers find it convenient to switch from beer to other close or distant subsitutes (Khan and
Khalique 2014). This rise in bargain power of buyers and already saturated beer markets in UK
have limited scope of differentitaion of Adnams beer much from standardised beer products or
from subsitute products.
2. Also the suppliers of beer industry in UK had low bargain power and inspite of several beer
manufaturers the current suppliers in beer market of UK have been facing challenges. The main
cause behind inability to rise prices to extend profits is overall rise in rates resulting from
government taxes which has resulted several consumers to swicth to subsitutes (Gupta 2013).
As such any further rise in beer rates would further decline the number of buyers and hence
would decline profit levels. Also beer products cannnot be differentiated much as such supplier
are unable to charge consumers high, which has resulted in low supplier base in beer markets
and this situation has created a challenge for Adnams.
3. The beer sector in United Kingdom is encountering intense rise in competitive landscape as
exisitng rivals fight for gaining larger share of market in ever decling profitabiity pool and
saturated beer market in UK. Also the beer industry is experiencing decline stage in life cycle
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