Strategic Management: Concepts and Applications

This assignment delves into the core concepts of strategic management, examining various theoretical frameworks and their practical applications in business contexts. It explores topics such as competitive advantage, environmental analysis, decision-making, and implementation strategies. The assignment likely requires students to analyze case studies or real-world examples to demonstrate their understanding of strategic management principles.

Running head: STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
Strategic Management of Bellamy’s Organic
Name of the Student:
Name of the University:
Author’s Note:
Course ID:

1STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
Executive Summary:
The objective of the paper is to gather background information regarding Bellamy’s Organic
Company and carry out macro-environmental analysis for the industry. Moreover,
competitive analysis of Bellamy’s Organic using Porter’s five forces theory will be carried
out. The paper will also explain resources and competencies of the company through
employing VRIO framework. It was gathered from the paper that the company employs
innovation within certain business operations get an eliminated of chance to maintain the
databases with certain programming assistance. The company should take after such a
proverb, to the point that quickens development with the assistance of mechanical
progressions.

2STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
Table of Contents
1. Introduction:...........................................................................................................................3
2. Background information of Bellamy’s Organic:....................................................................3
3. Macro-environmental for the industry in the context of Bellamy’s Organic:........................3
PESTEL Analysis of Bellamy’s Organic Company..............................................................3
4. Competitive analysis of Bellamy’s Organic using Porter’s five forces framework:.............6
5. Resources and competencies of Bellamy’s Organic using the VRIO framework:................8
6. Conclusion:..........................................................................................................................11
References:...............................................................................................................................12

3STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
1. Introduction:
Bellamy’s Organic Company is an Australian baby food producer with organic instant
formula. The company offers a range of products such as toddler milk, baby rice, baby
porridge and many other baby meals (Bellamy's Organic, 2017). Moreover, organic milk
drinks are also offered by the company along with offering supplementary food needed to
address dietary needs of toddlers. The objective of the paper is to gather background
information regarding Bellamy’s Organic Company and carry out macro-environmental
analysis for the industry. Moreover, competitive analysis of Bellamy’s Organic using Porter’s
five forces theory will be carried out. The paper will also explain resources and competencies
of the company through employing VRIO framework.
2. Background information of Bellamy’s Organic:
Bellamy’s Organic Company is an Australian baby food producer with organic instant
formula. The company offers a range of products such as toddler milk, baby rice, baby
porridge and many other baby meals. Moreover, organic milk drinks are also offered by the
company along with offering supplementary food needed to address dietary needs of toddlers
(Bettis et al. 2016).
3. Macro-environmental for the industry in the context of Bellamy’s Organic:
PESTEL Analysis of Bellamy’s Organic Company
Political
 Australian economy considers altering direction including nourishment guidelines and
promotional activities

4STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
 Australian economy considers focuses on enhancing g`overnment strength in certain
economies Risk factor with feature of global procedure
 Australian economy considers altering worldwide controls and maintaining effective
practice along with adjustment with various political strengths
The company offers businesses in few nations. The guidelines and directions of
Australian economy developed by the administration are distinctive in certain locales.
Australian economy should concentrate on such political elements like tax collection,
import based obligations, government consent to remain within objective section along
with presenting hygiene items as guided by the supervisory bodies (Bryce 2017). Also in
contemporary patterns that exist within administration solidness, Australian economy
must consider and perceive certain related risks that might get included. Australian
economy might also consider the changing worldwide controls which are yet to receive
by the organization.
Economic
 Australian economy considers focussing on learning regarding evolving expansion,
financial development rates and pay levels
 Australian economy considers also focuses on altering consumer-spending plans,
ascent along with cost cognizant purchaser
 I Australian economy considers increasing crude material products costs in
connection for a source from economical providers
Distinctive nations have a level of advancement. Economy of Australian economy
contrasts within the place. Therefore, the Australian economy desires setting distinctive
monetary strategies for focused fragments. The cost of products is a vital choice in order
to strategize the financial strategies agreeing the expansion rate and purchasing energy of

5STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
fragments (Chen, Delmas and Lieberman 2015). The Australian economy considers
should make an examination provide details regarding successive premise to get learning
of swelling rates and income levels. The Australian economy has a considerable measure
in developing the financial value of agriculturists by creating the items at nearby level in
order to fulfil of the customer.
Social
 Australian economy considers altering buyer mind state and move towards more
beneficial products considering with government activities supporting adjusted weight
control plans and the threats of sugar.
 Australian economy considers changing life ways along with returning to home
cooking and development of family time within comfort
 The requirement to adjust various social settings in Australian economy considers
includes religious convictions along with family surroundings
 Comprehension of purchaser conduct in Australian economy is critical to guarantee
people certain ways to deal with showcasing.
 Buyers observing the Australian economy considers to maintain office control in
highly effective outer condition
Technological: With advancement of online networking in Australian economy, shoppers
connecting with Australian economy help in gathering capacity to do such things over
multiple stages
 Advancement in Australian economy fuelled by mechanical improvements.
 Online business in Australian economy at stage for advancement

6STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
Legal: Australian economy considers altering nature of control and need to stick to global
controls and changes all over various universal markets
Environmental- It is gathered that Australian economy is coordinated in the direction of
corporate social duty. Environmental concerns from shoppers that encompass worries with
bundling/reusing. Innovation offers numerous ways for the new product development or
change of the remaining ones. New strategies of promotion, for instance, web and internet
business are imperative to centre at the moment (Daspit et al. 2017). Hence the Australian
economy considers uses innovation in certain business operations get an eliminated chance to
maintain databases with programming. The widespread use of online networking in
Australian economy has decreased the gap between the immediate communication of
purchaser and the Australian economy. The Australian economy should take after such a
proverb, to the point that quickens development with the assistance of mechanical
progressions. The Australian economy is as of now utilizing the innovative innovation for the
generation of different items, they are meeting the worldwide models by introducing the
contemporary plants (Frynas and Mellahi 2015).
4. Competitive analysis of Bellamy’s Organic using Porter’s five forces framework:
The competitive analysis of milk industry in Australia has been conducted with the
help of Porter’s five forces framework, which are briefly described as follows:
Threat of competition:
It has been observed that the level of competition is intense in the Australian milk
industry. Due to the natural and organic specialisation of milk industry within the industry,
this portion of the industry tends to depend largely on conveyance of quality, education of
consumer base, health benefits of the products and store locations depending on the affluence

7STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
and level of education of the population (Wheelen and Hunger 2017). For instance, chains
like Safeway and Kroger have started to offer organic foods raising the milk industry. In
addition, the international market growth in milk industry has increased rapidly for natural
and organic goods and because of the small number of wholly natural or organic market
grocers, the profit potential associated with the competitive rivalry force for milk industry is
extremely high in the industry.
Threat of new entrants:
This force is extremely high in the milk industry because the group of candidates for
entering into the same is extremely big. This consists of present milk stores, big box
superstores and supermarkets (Vogel and Güttel 2013). Moreover, the barriers to entry into
the milk industry of Australia are highly minimal and the fast growth of the industry has
resulted in raising the threat of entry. Due to such high force of threat into the industry, milk
industry might encounter unattractive profit potential from this industry in future.
Threat of substitution:
As milk industry is involved in selling products as commodities and needed to sustain
life, there is only a single threat of substitution for the organisation. This includes the non-
organic products that the current grocery retailers are selling in the Australian milk industry
(Trigeorgis and Reuer 2017). However, this threat is highly strong in the milk industry due to
the fact that non-organic products are available at cheaper rates in the market. In addition, the
consumers could find it easily in contrast to organic products due to store locations and
widespread availability of the same. Hence, the profit potential for milk industry from this
force is not attractive as well.
Bargaining power of the suppliers:

8STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
The major suppliers in the milk industry of Australia comprise of ranchers, farmers
and organic firms. However, the bargaining power of these suppliers is extremely moderate,
since the supplied products are commodities (Stead and Stead 2013). In addition, the number
of suppliers is limited that could match with the desired standards of this industry. The profit
potential for milk industry could be attractive, as it has effective supply chain management
and communication with the suppliers.
Bargaining power of the buyers:
The bargaining power of the buyers is relatively weak, as they tend to buy in smaller
amounts due to the perishable nature of the organic goods. Moreover, the motivation of a
buyer to purchase organic products is driven through product quality and health
consciousness, while price is not the primary influence (Seyed-Javadin et al. 2014). Hence,
such effective buyer-seller relationship would help milk industry in increasing its profit
potential, as the buyers are ready to pay premium prices for health safety concerns to obtain
greater quality of products.
From the above evaluation, it has been found the profit potential for the organisation
in the milk industry is fairly attractive. However, this industry could not be seen as an entire
vacuum due to the expansion of conventional grocery chains (David and David 2015). This is
because this industry is still lagging behind the whole food market of Australia in the existing
era.
5. Resources and competencies of Bellamy’s Organic using the VRIO framework:
The main resources and competencies of Bellamy’s Organic have been identified as
follows:
Financial resources:

9STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
The organisation has earned sufficient revenues over the years, which has met its
financial needs to tap into the new market. The organisation has good credit rating in the
market, which could be utilised to borrow money from banks and financial institutions
(Rothaermel 2015). Despite such strong financial resources, the whole foods industry has
sufficient cash on hand in Australia. Such effective cash on hand has helped the industry in
responding effectively to both environmental weaknesses and threats.
Technological resources:
The existing technology that Bellamy’s Organic uses in manufacturing organic
products could be applied in Europe as well. Thus, the effective industrial practices,
processes and trademarks act as technological resources for the organisation.
Organisational resources:
The current strategic frameworks and the previous experience might fetch the needed
guidelines to enter into a new market. As the firm has been in the market of Australia for long
duration, there is immense value in its intellectual capital and learning.
Human resources:
Bellamy’s Organic has vast sets of knowledgeable and experienced employees in its
Australia offices having knowledge of each procedure and process to be followed in
maintaining the standards in any location. Hence, they are adjudged as the most valuable
assets of the organisation (Peteraf, Gamble and Thompson Jr 2014).
The application of VRIO framework could be made based on the above components
of framework, which is depicted as follows:
Value:

10STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
The strong financial resources might help Bellamy’s Organic in focusing on its
diversification plans for obtaining competitive supremacy. It could use its technological
resources in combination with human resources for setting up technologically advanced
stores in the cross-border nations. The technical skills of its employees would help in
recruiting local individuals along with providing effective training. As a result, the overall
operational process of the organisation would be standardised.
Rarity:
The organisation has few technological resources that are exclusive to Bellamy’s
Organic only. However, such exclusivity could not be ensured blindly due to the availability
of other big players in the market. Hence, it is necessary for the organisation to use these
technological resources in a sensible manner along with leaving the remaining to the
marketing activities. However, with the rapid growth of the whole foods industry in the
segment of organic food, Bellamy’s Organic could not enjoy little rarity of its resources due
to the fact that the others entering the market might face difficulties to obtain untapped
resources. As a result, the competitive advantage of the organisation might be lost in future.
Imitable:
Bellamy’s Organic could develop advanced processes in its stores in Australia, which
the other competitors might struggle to cope up with the same. At least, the organisation
could ensure to upgrade its technology in such a way that the current small local players
could not match up with the same in the upcoming years (Peppard and Ward 2016). The
organisational resources like the knowledge of the Australian market could be taken into
account as rare, since it might be the first firm in the industry to expand its business into
Europe.

11STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
Organisation:
Bellamy’s Organic has been operating in Australia for over many years. The
organisation could be assumed to be at the stage of its maturity. The inter-dependency of the
resources and its collaboration is guided strongly through the established procedures and
processes (Morschett, Schramm-Klein and Zentes 2015). The roles of the management could
be assumed to be clearly precise and thus, an effective utilisation of resources is highly
possible.
6. Conclusion:
The objective of the paper is to gather background information regarding Bellamy’s
Organic Company and carry out macro-environmental analysis for the industry. Moreover,
competitive analysis of Bellamy’s Organic using Porter’s five forces theory will be carried
out. The paper will also explain resources and competencies of the company through
employing VRIO framework. It was gathered from the paper that the company uses
innovation in certain business operations get an eliminated of chance to maintain the
databases with programming assistance. The widespread use of online networking has
decreased the gap between communication of purchaser and the organization. The company
should take after such a proverb, to the point that quickens development with the assistance
of mechanical progressions.

12STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
References:
Bellamy's Organic., 2017. Home. [online] Available at:
https://www.bellamysorganic.com.au/ [Accessed 16 Aug. 2017].
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13STRATEGIC MANAGEMENT OF BELLAMY’S ORGANIC
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