Business Strategy Report: Apple, Woolworth, Coca-Cola, Pizza Hut

This report provides a comprehensive analysis of various business strategies, utilizing tools such as PESTLE analysis, SWOT analysis, Porter's Five Forces, and value chain analysis. The report examines the political, economic, social, technological, legal, and environmental factors affecting Apple, as well...Read More

Strategy

Table of Contents
INTRODUCTION...........................................................................................................................1
1. PESTLE analysis of Apple.................................................................................................1
2. Internal analysis of Woolworth..........................................................................................2
3. Porter Five Forces of Coca cola.........................................................................................3
4. Value chain of Pizza Hut....................................................................................................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
Business strategy is the process through which the company can achieve the objectives.
Report present different tools which help many companies to attain the goals as well as
objectives. Report present 4 tools such as PESTLE analysis of Apple Company , strength and
weaknesses of Woolworth, five forces of Coca- Cola and value chain of Pizza Hut.
1. PESTLE analysis of Apple
Political Factor:
 Apple is completely depend on lower cost manufacturing system of China and on the
other side by improving the trade policies will also affect the system business (Shtal and
et.al., 2018).
 Brand image of a company, also lead to some antitrust concern and due to political
pressure there is a chances to limit in market share.
Economical Factor:
 Strong economic condition of the company may increases the exchange rates and as a
result, the prices of the company's product increases.
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Illustration 1: PESTLE Analysis
(Source: PESTLE Analysis, 2018)

 If the labour cost of the country is high then it directly create impact upon company's
profitability.
Social Factor:
 Rising use of social media and mobile access can be create the opportunity for Apple to
expand the business. Moreover, the growth in consumer spending in upcoming years help
to maximizes the profit as in Africa people are unfamiliar with products of Apple.
Technological Factor:
 Because of Samsung and Google pricing strategy, Apple cannot acquire good market
share (Zhang and et.al., 2018). Even in growing usage market of smartphones as well as
tablets will also makes lower demand for Apple product.
 Because of higher cyber criminal affect company's system less secure and move away the
competitive advantages and as a result, Apple's product are no longer unique.
Legal Factor:
 As Apple, offer financial services, there is a increase chances of legal proceeding. As
company, is also planning to enter into highly regulated sector such as auto mobile
manufacturing and as a result, there is increase chances of insurance and litigation cost.
Environmental Factor:
 as the product is containing lithium battery and therefore, the apple is facing the
environmental issue for using such networking devices. And the climate change because
of global warming will also disrupt shipping transportation as well as supply chain in
adverse way.
2. Internal analysis of Woolworth
It is one of the oldest company in trading retail and have more than 900 stores with more
than 100000 employees. Company have brand image with effective operations and also have
strong commitment regarding to environment as well as sustainability (Thompson and
McLarney, 2017). Company have low international presence because of their rivals. The
growing presence of online brands also restrict the company for their further expansion. Another
weakness of the company is losing competitive advantages due to strong presence of its rivals.
Woolworth can promote their products through better promotion such as advertising and
sponsorship (Leiber, Stensaker and Harvey, 2018). By opening new business in new geographic
market can help a business to expand their existing market.
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Justification: For Woolworth, as the company operates in many countries then it shows
that there is huge employees force and as result they will work as a team and produces best
quality of products that will help to raise production level. because of growing market,
Woolworth is now oldest company and cannot provide products as per the need of their
customers hence it shows that it faces tough competition (Bull and et.al., 2016). Hence, it helps
to provide better opportunity for Woolworth.
3. Porter Five Forces of Coca cola
Threat of new entrant: Coca-Cola faces medium pressure for entrance of new company
or product because the entrance barrier are quite low for beverage industry (Hine and et.al.,
2018). As there is no switching cost of their consumer and have zero level investment and as the
company have strong brand image in market therefore,
Threat of substitute: There are so many brands or energy drinks which are available in
the market but Coca-Cola have its unique taste with flavour and hence, the customers did not try
another brand (McCarthy, 2018). This shows that company have no threat regarding substitution.
Therefore, it can be concluded that the threat of substitution in it is moderate but the switching
decision of their customer may also affect the financial performance of the quoted company.
Bargaining power of buyers: Coco-Cola have no pressure on individual buyer but on
the other side, the large retailers serve large amount of products to their customers. As the
company have brand image in entire world because of flavouring taste which lead to buyers.
Moreover, company also take different advantage of their other distribution options and as a
result it reaches their own target market (Prasad and Warrier, 2016).
Bargaining power of suppliers: the company have large suppliers because of the brand
image in market. As there are many suppliers of the company such as sugar, caffeine and thus
they have limited control over the price. Hence, the suppliers have to abide with different rules
and regulation and this suggest that Coca-Cola have low bargaining power and company also
have greater affecting suppliers contract as well as pricing too.
Competitive rivalry: Coco-Cola have the moderate intensity of rivalry as it faces tough
competition with Pepsi and on the other side, soft drinks, bottles water have limited market
share. Moreover, other company did not have the potential to affect the strong brand image in
market such as Coco-Cola but Pepsi can do (Eskandari and et.al., 2015).
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Justification: Among all, threat of new entrant is consider the the most difficult factor
because the entry of new company create tough competition in market and as a result, it also
affect the entire system into adverse way (Arslan, 2018).
4. Value chain of Pizza Hut
Value chain describe the activities which a business s perform in order to achieve the
objectives and also analysis the competitive strength too.
Inbound logistic: To buy all the ingredients which are used to make the product such as
Mozzarella Cheese, sauce, base, potato, some vegetable, wheat and babycorn, spices and many
more. This is the initial stage of the company in which the products are firstly arrange in such an
order so that it will be more beneficial for Pizza Hut to complete the process (Christian and
Gereffi, 2018).
Operations: Pizza Hut operates its business at global level and having a licensed model
it also target the areas in which there is attraction of Italian food. Through this, the company
operates its business at global level and operates its unit at vast level. It has been analysed that if
the operation are perfect then it also affect the overall performance level of the company.
Outbound logistics: There are two ways in which the Pizza Hut operates their services
such as present store dinning and their home delivery service when the product is offered. In this
way, the quoted company complete their outbound logistics (Hall and et.al., 2018).
Marketing and sale: Pizza Hut invest lot on their marketing such as advertisement,
social media in order to attract large amount of customers towards their new offers. It also done
campaigning and make their product differ from other so that customers attract towards their
products.
Customer service: It offer enjoyable pizza to their customers with least and affordable
price which shows that the company have effective customer service and the home delivery
system is also quite effective as it takes no longer time to deliver the ordered products (Value
chain analysis of Pizza Hut, 2018).
CONCLUSION
By summing up above report it has been concluded that marketing strategy do affect the
overall activity of the company. As report concluded that PESTLE analysis and SWOT analysis
affect company's internal and external factor while on the other side, through Porter five force
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model, company can determine the competition in market. Moreover, report also concluded that
effective value chain of Pizza Hut definitely sustain brand image in market.
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REFERENCES
Books and Journals
Bull, J. W. and et.al., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT
analysis of the ecosystem services framework. Ecosystem Services. 17. pp.99-111.
Christian, M. and Gereffi, G., 2018. Fast-Food Value Chains and Childhood Obesity: A Global
Perspective. In Pediatric Obesity (pp. 717-730). Humana Press, Cham.
Eskandari, M. J. and et.al., 2015. Factors Affecting The Competitiveness of The Food Industry
by Using Porter's Five Forces Model Case Study in Hamadan Province, Iran. Journal of
Asian Scientific Research. 5(4). pp.185-197.
Hall, A. and et.al., 2018, August. Exploring the Relationship Between Informal Standards and
Contributor Practice in OpenStreetMap. In Proceedings of the 14th International
Symposium on Open Collaboration (p. 10). ACM.
McCarthy, K., 2018. Surviving regulation: how European energy industries are adapting to new
rules. Journal of Business Strategy. 39(4). pp.28-33.
Prasad, A. and Warrier, L., 2016. Mr. Porter and the New World of Increasing Returns to
Scale. Journal of Management Research (09725814). 16(1).
Shtal, T. V. and et.al., 2018. Methods of analysis of the external environment of business
activities. Revista ESPACIOS. 39(12).
Thompson, J. and McLarney, C., 2017. What effects will the strategy changes undertaken by
next Plc have on themselves and their competition in the UK Clothing Retail
Market?. Journal of Commerce and Management Thought. 8(2). p.234.
Zhang, H. and et.al., 2018. Melatonin in Apples and Juice: Inhibition of Browning and
Microorganism Growth in Apple Juice. Molecules.23(3). p.521.
Leiber, T., Stensaker, B. and Harvey, L. C., 2018. Bridging theory and practice of impact
evaluation of quality management in higher education institutions: a SWOT
analysis. European Journal of Higher Education, pp.1-15.
Hine, K. A. and et.al., 2018. Too much or too little? Individual and situational predictors of
police force relative to suspect resistance. Policing and society. 28(5). pp.587-604.
Arslan, M. Y., 2018. Strategic business decisions for new business ventures. Michael Porter’s
series of strategy tools and frameworks.
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Online
Value chain analysis of Pizza Hut. 2018. [Online] Available through:
<https://blog.udemy.com/value-chain-analysis-example/>.
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