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Strategic Analyses for Bellamy | RMIT Assignment

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Strategic Analyses for Bellamy1STRATEGIC ANALYSES FOR BELLAMYBy (Name)Course TitleProfessorUniversity AffiliationDate
Strategic Analyses for Bellamy2Strategic Analyses for BellamyBellamy is an organic food manufacturer based in Australia. It was started way back in2004 by Tasmanian family. The main focus of the company is to provide organic alternatives aswell as formula products for young children. The organic food they produced are certified andare made from the raw materials obtained locally. The primary market for the range of productsthat the company produces is the Australian local market, where the company sales theirproducts to the retailers for distribution to customers. Apart from the local market, Bellamy also,sales its products to the Asian countries such as China and South East Asia through distributorsas well as the online sale through their portal(Bellamy's Resource Centre, n.d.). The companybelieves in providing natural organic food, which is cultivated by ensuring that there is noutilization of artificial manures, pesticides, added substances, and growth and developmentcontrollers. Organic nourishment is more advantageous than traditional food and in this way is,the most favoured food nutrients for toddlers and young children with age below five years.Macro-Environment AnalysisBellamy organic food limited is the ‘food bowl’ of the Australian as well as Asian marketin general. There are several factors that affect their operations and subsequently their success.The macro environment can be better analyzed utilizing the PESTEL analysis. These includeexternal factors that directly or indirectly affect the business operations of Bellamy. The factorsare not within the control of the firm. They include political, economic, technological, social,legal and environmental factors.Political FactorsThe factors give a reflection on the governmental influence on the business operation ofthe firm. The organic food manufactured by Bellamy are directly affected by the Australiangovernment regulations on organic food. This acts as an opportunity to the company as it givesroom for them to improve their standards on proper labelling of their products. Bellamy alsobenefits from the free trade agreements especially with new local locations apart from theoverseas markets. This acts as an opportunity which aids the firm in expanding its operationsregarding size and customers. The local trade agreements seek to create a market for the localorganic food which is certified and banded as safe for consumption. The government will haveadvertised on their behalf or created easy penetration and entry into new markets.
Strategic Analyses for Bellamy3The high labour standards in Australia is a threat to the company since the company willhave to utilize more capital on employing the qualified staff to work on various productionsections. This high cost of labour will be reflected on the cost of the end products which willlikely be high. Expensive products will mean less turnover because few consumers will affordthe firm’s products (Robins, 2015).On the other hand, the labour standards assure the localmarket on fair employment and labour opportunities which are an opportunity to Bellamy to getqualified staff.Economic FactorsDue to the presence of economic stability in Australia, Bellamy has an opportunity togrow steadily, and satisfy the demands of the local population. The high employment rates inAustralia acts as another opportunity to the company. The operations of the firm will flowsteadily due to the constant availability of labour. On the other side, the high cost of labour is athreat to the company. The firm will be forced to increase the prices of organic food in theirstores to meet the costs of paying the labour, and also remain with significant profits for thecompany. Bellamy has to develop well-structured strategies to ensure that this threat isneutralized and retain their market share regarding competitive prices of their end products.Socio-Cultural FactorsThese factors define the social characteristics that directly or indirectly influenceBellamy’s employees, investors and their customers. The ever increasing emphasis on the needto stay on a healthy lifestyle is an opportunity to the Bellamy organic food industry. Theiringredients are of high quality, and also, the fact that their products are certified gives thecustomers peace of mind. Most of the consumers will likely become potential customers for thecompany due to their need to satisfy their healthy lifestyle class (Aertsens, Verbeke, Mondelaersand Van Huylenbroeck, 2009). Another social opportunity for Bellamy is the ever increasingsocial diversity in Australia. There are a lot of immigrants in the recent years due to the country’seconomic, social and political stability. This cultural diversity is a potential market for thecompany. The product mix provided by the firm serves the culturally diverse market. The onlysocial threat to the company is the wealth gap, which has been increasing over the recent years.The middle class becomes weak such that, their ability to purchase Bellamy’s products willdecrease. Since middle class are the major consumers of the products, the company will likelylose a lot of revenues.
Strategic Analyses for Bellamy4Technological FactorsIt includes the effects of technology as well as the changes in technology. Bellamy hasembraced automation technology in their line of production. Automation increases efficiency inbusiness operation which leads to high production using reduced input costs. This will result incheap products. Also, Bellamy has mobile and internet technology to market and sell theirproducts. They have a fully operational website ( whichcontains all the information about the company, and the products they are producing. Throughtheir portal, the customers can access the information on the various available products andprocedures on how to use the individual product(Bellamy's Organic, n.d.). This is an opportunityto the company since it provides a platform where the firm can reach to a maximum number ofpotential customers possible.Environmental FactorsThese are the conditions of the natural environment, which have the capacity to influencethe firm directly or indirectly. Changes in climatic conditions for example, is a threat to Bellamyorganic industry since the supply of their raw materials directly from the farmers will be affected(Seymour and Ridley, 2005). The productivity will likely decrease. Bellamy can increase theirperformance in the waste disposal management section. This will boost their sustainability in themarket.Legal FactorsIt includes the effects of various laws on the business operation. Bellamy has always beenadhering to the environmental protection laws and policies. This has greatly boosted their brandimage, and thus an opportunity to the firm. There are also, rules and policies that seek to controlthe production of commercial baby foods(Neales, 2016). These rules may favour or cause anegative effect to Bellamy organic.The macro environment has a greater impact on Bellamy organic industry operation. Thegrowth of the firm largely depends on the external factors rather than internal factors.Unfavorable external factors may lead to the collapse of the business operation if they are nowwell analyzed to ensure harmonious interrelationship with the internal operations. The companyneeds to ensure that their internal operations are always in harmony despite the fluctuations orchallenges in the caused by the external environment. Bellamy should always utilize the
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