Strategic Analyses for Bellamy | RMIT Assignment
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Royal Melbourne Institute of Technology
Added on 2020-03-04
Strategic Analyses for Bellamy | RMIT Assignment
Royal Melbourne Institute of Technology
Added on 2020-03-04
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Strategic Analyses for Bellamy 1STRATEGIC ANALYSES FOR BELLAMYBy (Name)Course TitleProfessor University Affiliation Date
Strategic Analyses for Bellamy 2Strategic Analyses for BellamyBellamy is an organic food manufacturer based in Australia. It was started way back in 2004 by Tasmanian family. The main focus of the company is to provide organic alternatives as well as formula products for young children. The organic food they produced are certified and are made from the raw materials obtained locally. The primary market for the range of products that the company produces is the Australian local market, where the company sales their products 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 distributors as well as the online sale through their portal (Bellamy's Resource Centre, n.d.). The company believes in providing natural organic food, which is cultivated by ensuring that there is no utilization of artificial manures, pesticides, added substances, and growth and development controllers. 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 include external factors that directly or indirectly affect the business operations of Bellamy. The factors are 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 of the firm. The organic food manufactured by Bellamy are directly affected by the Australian government regulations on organic food. This acts as an opportunity to the company as it gives room for them to improve their standards on proper labelling of their products. Bellamy also benefits from the free trade agreements especially with new local locations apart from the overseas markets. This acts as an opportunity which aids the firm in expanding its operations regarding size and customers. The local trade agreements seek to create a market for the local organic food which is certified and banded as safe for consumption. The government will have advertised on their behalf or created easy penetration and entry into new markets.
Strategic Analyses for Bellamy 3The high labour standards in Australia is a threat to the company since the company will have to utilize more capital on employing the qualified staff to work on various production sections. This high cost of labour will be reflected on the cost of the end products which will likely be high. Expensive products will mean less turnover because few consumers will afford the firm’s products (Robins, 2015). On the other hand, the labour standards assure the local market on fair employment and labour opportunities which are an opportunity to Bellamy to get qualified staff.Economic FactorsDue to the presence of economic stability in Australia, Bellamy has an opportunity to grow steadily, and satisfy the demands of the local population. The high employment rates in Australia acts as another opportunity to the company. The operations of the firm will flow steadily due to the constant availability of labour. On the other side, the high cost of labour is a threat to the company. The firm will be forced to increase the prices of organic food in their stores to meet the costs of paying the labour, and also remain with significant profits for the company. Bellamy has to develop well-structured strategies to ensure that this threat is neutralized and retain their market share regarding competitive prices of their end products.Socio-Cultural Factors These factors define the social characteristics that directly or indirectly influence Bellamy’s employees, investors and their customers. The ever increasing emphasis on the need to stay on a healthy lifestyle is an opportunity to the Bellamy organic food industry. Their ingredients are of high quality, and also, the fact that their products are certified gives the customers peace of mind. Most of the consumers will likely become potential customers for the company due to their need to satisfy their healthy lifestyle class (Aertsens, Verbeke, Mondelaers and Van Huylenbroeck, 2009). Another social opportunity for Bellamy is the ever increasing social 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 the company. The product mix provided by the firm serves the culturally diverse market. The only social 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 will decrease. Since middle class are the major consumers of the products, the company will likely lose a lot of revenues.
Strategic Analyses for Bellamy 4Technological FactorsIt includes the effects of technology as well as the changes in technology. Bellamy has embraced automation technology in their line of production. Automation increases efficiency in business operation which leads to high production using reduced input costs. This will result in cheap products. Also, Bellamy has mobile and internet technology to market and sell their products. They have a fully operational website (https://www.bellamysorganic.com.au/) which contains all the information about the company, and the products they are producing. Through their portal, the customers can access the information on the various available products and procedures 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 of potential 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 Bellamy organic 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 their performance in the waste disposal management section. This will boost their sustainability in the market.Legal Factors It 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 brand image, and thus an opportunity to the firm. There are also, rules and policies that seek to control the production of commercial baby foods (Neales, 2016). These rules may favour or cause a negative effect to Bellamy organic.The macro environment has a greater impact on Bellamy organic industry operation. The growth 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 now well analyzed to ensure harmonious interrelationship with the internal operations. The company needs to ensure that their internal operations are always in harmony despite the fluctuations or challenges in the caused by the external environment. Bellamy should always utilize the
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