Strategic Management Analysis of Hubbard's Food in New Zealand

This report provides an intensive external, internal and competitive analysis of Hubbard's Food, a cereal manufacturing company in New Zealand. The report highlights the Porter’s five forces, the strength, weakness and competence of the company along with recommendations for the future. The report focuses on the strategies and other forces that were assessed in the whole scene of the company and made mandatory amendments of the company regarding the same matter.

Running head: STRATEGIC MANAGEMENT
STRATEGIC MANAGEMENT
Name of the Student
Name of the University
Author Notes

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Executive Summary
Hubbard’s Food was one of the largest and most effective cereal manufacturing company in
New Zealand which is the company for the given case study. The aim of the report was to do
an intensive external, internal and competitive analysis for the company using the forces of
SWOT analysis and other factors of the analysis. The factors related to the political and the
other factors of the company were assessed to make sure that the company is being sourced
and competitive forces are measured. The following paragraphs highlighted the Porter’s five
forces, the strength, weakness and competence of the company along with the
recommendations for the future for the company that was being addressed in the proper
manner. The whole report focussed on the strategies and the other forces that were to be
assessed in the whole scene of the company and made mandatory amendments of the
company regarding the same matter. Hubbard’s Food was surely one of the most celebrated
companies of the times and so the whole analysis of the company had been done.

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Table of Contents
1. Introduction............................................................................................................................3
1.1 Brief background of Hubbard Foods Ltd.........................................................................3
1.2 Brief overview of the FMGC sector in which the company operates..............................3
1.3 Objectives of case study...................................................................................................3
1.4 Expectations from the analysis.........................................................................................4
2. Discussion..............................................................................................................................4
2.1 External Environmental Analysis....................................................................................4
2.1.1 Reasons for the conduction of External Analysis.....................................................4
2.1.2 Hubbard Food general external analysis using seven elements................................4
2.1.3 Segments that has major effect on the company.......................................................5
2.2 Internal Environmental Analysis......................................................................................6
2.2.1 Reasons for Internal analysis....................................................................................6
2.2.2 Hubbard Food Internal analysis using strength, weakness and competences...........6
2.3 Competitor Analysis.........................................................................................................6
2.3.1 Reasons for the Competitor Analysis........................................................................6
2.3.2 Porter’s Five Forces Tool analysis on Hubbard’s Food............................................7
2.3.3 Attractiveness of the industry in which Hubbard Foods operates.............................7
2.4 Recommendations and Future Strategies.........................................................................8
2.4.1 Summary of Hubbard Food’s current strategies.......................................................8
2.4.2 Future strategies of Hubbard.....................................................................................8
3. Conclusion..............................................................................................................................8

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4. References............................................................................................................................10

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1. Introduction
1.1 Brief background of Hubbard Foods Ltd
Hubbard Foods Ltd which is presently known as Hubbard’s is a well-known cereal
manufacturing brand which was established in the year 1988. The former name of the
company was Winner Foods which changed to Hubbard in the year 1990. The company is
one of the most reputed brands that manufactures cereals of different flavours and names and
estimates about 21% of the share in the cereal market of New Zealand in the year 2008
(Hubbards, 2018). According to the case study, the company started the venture with NZ$38
and 128 employees and has reached great heights due to the goodwill and reputation of the
brand. The brand has three major competitors in the cereal market namely Sanatarium, Uncle
Toby’s and Kellogg’s.
1.2 Brief overview of the FMGC sector in which the company operates
The company operates in the fast moving consumer goods market also known as the
FMGC market which is one of the highly competitive markets in the global circuit
(Upamannyu & Mathur, 2013, January). The market in which the company operates is one of
the major markets that is prone to entry of new entrants on a major basis making the
industries already present striving for innovation and improvement in the extensive period.
The sector demanded Hubbard Foods Ltd to be competitive due to the competition levels in
the present times (Sacks et al., 2015).
1.3 Objectives of case study
The major objectives of the study can be seen as follows –
 To analyse the external environment in which Hubbard Foods Ltd operates in the
province of New Zealand.

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 To review and state the internal environment in which Hubbard Foods Ltd operates in
the province of New Zealand
 To state the competitor analysis for the company along with recommendations for the
future.
1.4 Expectations from the analysis
The analysis is expected to address the external, internal and competitive analysis
factor of the company and recommend various means for the betterment in the future. The
analysis is also expected to shed light on the various challenges that the company has faced
due to high competition and also the recommendations for overcoming the same.
2. Discussion
2.1 External Environmental Analysis
2.1.1 Reasons for the conduction of External Analysis
External analysis of a company is a strategic technique that is used to identify and
access all the factors that is needed for affecting the performance of the organization (Capps
III &Glissmeyer, 2012). The analysis of the external analysis is dependent on the tools like
PESTLE analysis to have an idea about the strategies of the firms along the environment in
which it operates.
2.1.2 Hubbard Food general external analysis using seven elements
Demographic – The demography of Hubbard’s Foods is situated at a favourable place of
New Zealand where the demand for cereals and the types is extensive (Rothaermel, 2015).
The demography is suitable for the company as a whole.
Economic –The country is economically stable providing ample scope for the company to
succeed and establish in the forefront (Rothaermel, 2015). According to the case study, the
company is also economically stable with the required amount of customer base and

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innovative products that are there in the company for the majority of the time. The economic
stage of the country is basically fulfilling for all the necessities of the company and provides
the basic economic stabilities for the overall company portfolio.
Political –The political situation of New Zealand is stable which gives the company the
required background for the establishment and success of the company. The inclusion of the
owner into the political election also affected the working of the company in the major times.
Sociocultural –The socio cultural aspect of the company is very practical and provides ample
scope for the betterment of the company due to the interest and family-like environment of
the company. The company works in a environmental structure that is affirmative for the
company in every social and cultural prospect and calls for the food company and the
products that they manufacture which makes sure that all the employees as well as the
authorities are there in the given structure with utmost regards and responsibility (De Charms,
2013). The unemployment and educated sector in which the company has the factories makes
sure to reach the audience and extract the best of work capabilities from them.
Technological –The technological aspect of New Zealand is very advanced given the fact
that it belongs to the first world country with a stable economic design made for the proper
technological advantage. Proper technical assistance is to be measured to make sure that the
company has the required technical assistance.
Global –The global reach of the company makes sure that the company is reached to the
maximum number of people in the cereal manufacturing sector and also to have the detailed
analysis of the scenario which is for the better working (Dobbs, 2014).
Physical – The physical environment of the country calls for the basic amenities of the
technology and the political affirmative scenario to make the whole company operate in a
proper manner (Dobbs, 2014). As stated in the case study, the workers as well as the

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management are cordial and proactive in doing the task and assigning required statements to
the company.
2.1.3 Segments that has major effect on the company
The political inclusion of the owner of Hubbard’s Food had a major effect on the
external analysis of the company and therefore had the most effect on the company. Other
than that, the major competition from all the companies had tremendous effect on the
company.
2.2 Internal Environmental Analysis
2.2.1 Reasons for Internal analysis
The reason for the internal analysis of the company is to explore the position of the
company in terms of cost, competitive vitality as well as the competency of the company in
the market in which the company is operating (De Charms, 2013). The internal analysis of
the company checks the ability of the company to have their own policies and priorities
sorted.
2.2.2 Hubbard Food Internal analysis using strength, weakness and competences
Analysis Details
Strength The strength of the company lies in the fact
that the company has major production and
market strength of innovative cereals in
New Zealand with a good customer base. In
addition, the environment of the company
and the owner’s association with the
company are some of the major factors

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affecting the company as a whole
(Upamannyu & Mathur, 2013, January).
Advertising and family environment among
the employees are some of the other
strengths.
Weakness – The weakness of the company is the
intervention of the owner of the company in
the local political scenario of the place
which in turn reduced the turnover and the
involvement of the owner with the
company.
Competences The Company is competent to the basic core
facilities provided by the owners of the
company (Upamannyu & Mathur, 2013,
January). The company has some of the
basic business and other kind of strategies
that help to make sure that the company has
the required HR and other policies for
proper working.
Table 1: Hubbard Food Internal analysis using strength, weakness and competences
(Source – As created by the author)

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2.3 Competitor Analysis
2.3.1 Reasons for the Competitor Analysis
The reason for competitor analysis is to find the strength and weakness of the
competitor to have the better marketing decisions for their own brand (Jobber & Ellis-
Chadwick, 2012). The SWOT analysis of the competitor brand is to make sure to have their
own strength and weakness in the brand focus.
2.3.2 Porter’s Five Forces Tool analysis on Hubbard’s Food
The Five Forces of Porter Analysis are as follows–
Figure 1: Porters Model
(Source: Dobbs, 2014)
According to the detailed case study and analysis, the following analysis of the Porters Model
can be done –

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Bargaining power of Buyers –The bargaining power of buyer is high in the case of
Hubbard’s Food as the buyers can choose to buy the products or choose to opt for other
breakfast options in the meantime (Nestle, 2013).
Bargaining power of Sellers –The bargaining capacity of the sellers in Hubbard’s Food is
low in comparison as the company has to attract the customers and retain them in order to
maintain their sales and profits in the longer period of time.
Threat of Substitution –The threat of substitution in the Hubbard’s Food is high as there are
already a number of competitors like Kellogg’s and Uncle Toby’s that can substitute their
sales at any point of time (Nestle, 2013). In addition, according to the case study, the
introduction of the new kind of products by them like Special K by Kellogg’s for the diet-
conscious people make the substitution rate high for the company.
Entry of New Companies –The entry of new companies is moderately chanced as there are
certain legal and financial formalities needed by the law and order of the country that are
needed for the new companies which is not achieved by new companies majorly.
Competitive Rivalry –The competitive rivalry of the Hubbard’s Food is high as there are a
number of companies in the realm that provide steep competition to Hubbard’s Food such as
Uncle Toby’s and Kellogg’s.
2.3.3 Attractiveness of the industry in which Hubbard Foods operates
The attractiveness of the industry which is the food and beverage industry in which
Hubbard’s Food operates is high as the sales of the products under the cereal brands are high
when compared to the other breakfast options (Nestle, 2013). These brands and their products
are a daily requirement for most of the people in the world which make the brand as well as
their products very highly demanded in the realm. The Hubbard’s Food makes sure that the
attractiveness of the company is high in comparison to the other industries in the arena.

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2.4 Recommendations and Future Strategies
2.4.1 Summary of Hubbard Food’s current strategies
The current strategies of Hubbard is to operate the company based on socially
responsible agendas and to have their corporate social responsibility on the level. In addition,
the company has seen increase in sales as well as their profit has seen a steep increase. The
working of the brand has been in the hands of the new appointed CEO who has succeeded to
manage the company and also gain the trust and reputation of the company in the prolonged
period (Hubbards., 2018). The current strategies of the company show the company in the
light of the successful cereal manufacturing company in New Zealand with steep competition
and successful organization.
2.4.2 Future strategies of Hubbard
The future strategies of Hubbard’s Food is to maintain the position of the company
and give steep competition to the major rival companies in the country. In addition, the
company is to make sure that their profit and sales are not affected by the other brands that
are being introduced or already in the competitive market. The company is there to maintain
the level of products and has to maintain the same in future by innovation and introduction of
new flavours and products into the market. The future strategies have to be in compliance
with the present strategies of the brand and also to be in accordance to the needs and
requirements of the customers.
3. Conclusion
In conclusion, it can be said that with the required strategies and competitor
perspectives that has been mentioned in the previous paragraphs and which make the whole
strategy of the company eligible for the development of the company in terms of the different
tools of analysis like SWOT, PESTLE and Porter. the company Hubbard’s Food is to be

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successful in the longer run. The company with the internal, external and competitor analysis
is to make great changes to the brand which is being analysed in the following terms and
develop the brand according to the needs of the company.

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4. References
Capps III, C. J., &Glissmeyer, M. D. (2012). Extending the competitive profile matrix using
internal factor evaluation and external factor evaluation matrix concepts. Journal of
Applied Business Research, 28(5), 1059.
De Charms, R. (2013). Personal causation: The internal affective determinants of behavior.
Routledge.
E. Dobbs, M. (2014). Guidelines for applying Porter's five forces framework: a set of
industry analysis templates. Competitiveness Review, 24(1), 32-45.
Hubbards. (2018). Retrieved from http://www.hubbards.co.nz/
Jobber, D., & Ellis-Chadwick, F. (2012). Principles and practice of marketing (No. 7th).
McGraw-Hill Higher Education.
Nestle, M. (2013). Food politics: How the food industry influences nutrition and health (Vol.
3). Univ of California Press.
Rothaermel, F. T. (2015). Strategic management. McGraw-Hill Education.
Sacks, G., Mialon, M., Vandevijvere, S., Trevena, H., Snowdon, W., Crino, M., &Swinburn,
B. (2015). Comparison of food industry policies and commitments on marketing to
children and product (re) formulation in Australia, New Zealand and Fiji. Critical
Public Health, 25(3), 299-319.
Upamannyu, N. K., &Mathur, G. (2013, January). Effect of brand trust, brand affect and
brand image on customer brand loyalty and consumer brand extension attitude in
FMCG sector. In PRIMA (Vol. 3, No. 2, p. 1). Publishing India Group.