Strategic Analysis Report Assignment - Darrell Lea
Added on 2020-10-23
12 Pages3457 Words374 Views
Leadership ManagementMechanical Engineering
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Strategic AnalysisReport
Table of ContentsINTRODUCTION...........................................................................................................................1PART 1............................................................................................................................................1Business background...................................................................................................................1What industry is it.......................................................................................................................1General environment analysis.....................................................................................................1Industry environment..................................................................................................................2Competitive environment............................................................................................................4Opportunities and threats............................................................................................................5PART 2............................................................................................................................................5Firm’s resources, tangible and intangible...................................................................................5Identification of capabilities........................................................................................................6Core competency analysis...........................................................................................................6Suitable information system solution that meets the chosen company needs.............................7Evaluation of proposed system and recommendations...............................................................7CONCLUSION................................................................................................................................8REFERENCES................................................................................................................................9
INTRODUCTIONStrategic analysis means to research about an organisation and its operating environmentto plan strategies and policies. Business includes activities such as production, buying, selling ,marketing of product and services. There are many changes taking place in business environmentin order to make long run in industry it is important to accept these changes. Strategic analysismeans study of policies which are effective and significant for achieving targets, goals,objectives of business. There are some internal and external factors which has to be consideredso targets can be achieved (Amankwah-Amoah, 2015). This report is based on Darrell Lea whichdeals in Chocolate, Confectionery Food and Drink. In this report there is discussion aboutexternal and internal analysis of business. There are some techniques which is used in order todeal with external business changes is also covered in this reportPART 1Business backgroundDarrell Lea is an Australian company manufactures and distributes chocolate, liquoriceand other confectionery things. This organisation has headquarter in Ingleburn, New SouthWales. This organisation was under Lea family. This organisation was found by Harry Lea. In1927 in Sydney's Haymarket combined milk bar and confectionery shop. In 1935, theyestablished a factory at 1 York street. Darrell Lea has around 800 products such as chocolateboxes, sugar free chocolates, etc. They produce around 60 seasonal products at the occasion ofEaster, Christmas. What industry is itDarrell lea falls under Confectionery industry. The functions carries in this industry is artof making food items full of sugar and carbohydrates. In this industry, bakery products,chocolates, pastries, cakes and other related items are involved. These days there are someconfectionery items which are sugar free. These are effective for special category people.Confectionery items include sweet baked goods such as candies, dessert, cookies, doughnuts, etc.General environment analysisEconomic- Australia has largest economy in world. GDP rate, inflation deflation rate,taxes are included in economic factor. Revenue in the Confectionery segment amounts toUS$5,746m in 2018. The market is expected to grow annually by 4.0% (CAGR 2018-2021).1
(Confectionery, 2018)Australia has strong and stable financial system it helps in raising funds. Itis easy for managers of Darrell Lea to operate in Australia as there are less business restrictions. Physical- In physical component consist of natural and man made elements such asvegetation, land, air water, transport, etc. These factors get affected because of manufacturingunit, transport, etc. Hence managers of Darrell Lea have to frame policies in order to protectthem and use optimally.Sociocultural- In social factor people having different beliefs, custom, practices, areconsidered. Social culture has much impact on sales of chocolates and other confectioneryitems. Australia is a country where diverse population resides. But there is majority young andeducated generations, so they accept varieties of confectionery items, this is opportunity forDarrell Lea.Global- In global factor, possibilities of international trade are studied. There iscompetition in global market, hence there is requirement of accepting new challenge such asdifference in demand of consumers to make Darrell Lea brand at international level (Fleisherand Bensoussan, 2015). There are some competitors also at global level such as Mars, Cad-bury,etc. due to which international may get affected.Technological- There is more use of technological devices in Australia. In technologicalchanges machinery up-gradation, stock verification machinery are involved. These changes areimportant for growth and development of Darrell Lea but these might be costly, so this affectsprofits of association. Political/legal- Political factors includes role of government in effective running ofbusiness. While legal factors includes legal, ethical norms such as environmental protection act,safety and security act, etc. Australia has liberal capitalist policy which helps to perform businesswith less political interference. There are some legal laws which has to be followed by DarrellLea to perform business activities smoothly. Demographic- Age, Sex, religion, occupation, income, etc. factors are considered indemographical factor. In Australia diversified population is residing, so this is fruitful for growthand development of Darrell Lea business (Tan and Carrillo, 2014). Industry environmentIndustry environment can be understood with the help of Porter's Five forces model. Thismodel was established by Michael E. Porter for analysing competition for a business. 2
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