Strategic Management Strategic Management Executive Summary Report on Bellamy's Company

Running Head: Strategic Management
Strategic
Management

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Executive summary
The report is based on Bellamy's company, an organic company based in Australia. Bellamy’s is
specialized in selling the organic products for the babies and toddlers. The report is based on the
finding of the strategy that company should implement to establish the business in the Chinese
market. The strategy helps the company in achieving and maintaining the sustainable
competitive advantage in China. The paper covers the theoretical concepts and the analytical
tools such as PESTLE analysis, Porter’s 5 forces, Porter’s value chain, balanced scorecard and
the strategy map.
The paper includes a brief discussion and analysis of the Chinese market for the Organic
products. The company should implement product development as a new strategic initiative that
helps the company in establishing the business in China. To measure the suitability of the
strategic initiative for the China market, company utilize the analysis of the external
environmental factors. The external environment can take place in the form of the macro and
microanalyses. These analyses help in evaluating the factors that can affect the working of the
company. The Porter's 5 forces can help the Bellamy’s in understanding that the company should
continue implementing the strategy in the Chinese market. Further, the report consists of the
strategy that needs to be implemented and the implementation of the strategy conducted by the
company. At last, the report talks about the measuring the strategic initiatives that are measured
by the company with the help of the balanced scorecard and the strategy map.

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Contents
Executive summary.........................................................................................................................1
Introduction......................................................................................................................................4
Range of the products..................................................................................................................4
Current generic strategy of Bellamy’s.............................................................................................5
Porter’s value chain.....................................................................................................................5
Primary Activities....................................................................................................................6
Support Activities....................................................................................................................7
New strategy Initiatives...................................................................................................................9
Market analysis of China.................................................................................................................9
Organic products in China.........................................................................................................12
Growth in the China market......................................................................................................12
Product development in China.......................................................................................................13
Suitability of strategic initiative.....................................................................................................14
Macro analysis...........................................................................................................................14
Pestle analysis........................................................................................................................14
Microanalysis.............................................................................................................................18
Porter five forces analysis......................................................................................................18
Strategy implementation plan........................................................................................................20
Changes to implement the plan..................................................................................................20

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Implementation of the strategy..................................................................................................22
Measuring strategic initiatives.......................................................................................................23
Balanced scorecard....................................................................................................................24
Strategy Map..............................................................................................................................27
Conclusion.....................................................................................................................................29
References......................................................................................................................................30

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Introduction
Bellamy's is an organic company which is founded by a Tasmanian family in the year 2004. The
company provides a convenient nutritious choice to the children. The company offers a wide
range of the organic food and formula products for babies, toddlers and young children with
more than the 30 products in the range from birth to early childhood. Bellamy's natural was
obtained by Tasmanian Pure Foods Limited in 2007. It is an exclusive business whose mission is
to put resources into and develop the Tasmanian sustenance and agribusinesses. Tasmanian Pure
Food Limited was renamed to Bellamy's Australia Limited in June 2014 (Bellamy’s Organic,
2017).
The mantra of the company is mindful eating from the beginning. In simple words, the company
wants to bring the awareness of what we eat and teaching the children good eating habits from
the beginning. The company believes in continue to grow into healthy happy children and adults.
The report talks about the strategies that the company follows in expanding the business in the
Chinese market. The brief evaluations and analysis about the market of the china are discussed.
Range of the products
The company's range of products includes the infant formula, baby rice, toddler milk, cinnamon
breakfast, brown rice pasta, baby macaroni, and vegetable macaroni. The company manufactures
the product for the different categories of the people (Paull, 2017). The target of the company
consists of the new-borns (0-6 months), toddlers (1-3 years) and infants (6-12 months). In the
year 2014, the company expanded the range of the product, now the company started organic
milk drinks for the children of the age group of 3+ year’s age group. This shows the
differentiation of the products that the company is providing (Morgans, 2015).

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Current generic strategy of Bellamy’s
The Bellamy’s company follow the strategies to enhance the working and sales of the company.
Most of the Australian is now getting to know the benefits of the organic food for the children.
The generic business strategy that is used by the company is product differentiation; this is the
marketing strategy that is used by the company to distinguish the product from the similar
offerings in the particular market. The company follows the product differentiation to increase
the brand loyalty of the company by providing the different and high-quality products (Hoberg,
and Phillips, 2016). If in case the customer will get the cheaper product from the competitors
than also customer like to purchase the product with the Bellamy’s. The reason being customer
believes in the services provided by the company with the quality products.
Product differentiates change the customer perception for the single product. The product
differentiation doesn't mean that the company needs to bring the changes in the product but it
means that the company can bring the changes in the advertisement, promotion strategy or sales.
With the change in the packaging of the product, a company can attract the customers towards
the product. This is the strategy which is followed by the company in the Australian Market.
Porter’s value chain
The porter's value chain is used by the company to analyze the activities that an organization
performs. This helps the Bellamy Company in analyzing where the company activities are going
wrong and where the changes are required (Porter, and Heppelmann, 2015). These activities are
managed by the company for the evaluation of the performance of the company. The value chain
consists of the primary activities as well as the support activities.

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(Source: Miller, and Mork, 2013)
Primary Activities
Inbound logistics
The inbound logistics of the Bellamy’s include the selection of the raw material which is used by
the company to produce the organic products in the market. The raw material purchased by the
company going to be transported to the storage sites of the Bellamy's. After completing the
manufacturing of the organic products, the company sent the products for the packaging of the
product (Bharati, and Chaudhury, 2015). Once the packaging of the products finished then the
company send the product for the distribution at the different stores.
Operations
The main operations of the company take place in Australia itself. Though, the company exports
its product to the other countries and the company is also willing to expand the business in the
different places. In the year 2012, the company opened the new office in Shanghai and in the

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year 2014, the company opened the office in Singapore, the reason being the organic products
are high in demand in Asia (Christopher, 2016).
Outbound logistics
The company supplies its product range to the pharmacy chain, supermarket chains, and sells the
product directly to the customer, or provide the product online. The company maintains the
independent stores in Australia through which the company makes the products available to the
customers (Sandhu, 2015).
Marketing and sales
Bellamy’s invest in increasing the product range of the products and company invest in
enhancing the awareness about the organic products to the customers. This is possible with the
marketing and sales of the product. The company performs the marketing activities when the
company launches a new product in the market (Stadtler, 2015).
Service
The company believes in providing the certified organic products to the customers that help in
enhancing the customer experience and loyalty towards the company (Bornemann, and
Wiedenhofer, 2014). The certified organic product provides the peace of the mind to the
customers that they are feeding their child chemical free products. The company provides the
organic products online, so a company needs to provide the after sales and before sales services
to the customers.
Support Activities
Infrastructure