Strategy in Practice

STRATEGY IN PRACTICE

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
a) Growth opportunities and emerging threats for Associated British Foods..............................1
b) Industry Attractiveness............................................................................................................2
TASK 2............................................................................................................................................3
a) Analysis of Unique Resources of Associated British Food company through accounting
ratios and intangible resources.....................................................................................................3
b) Value chain Concept With Associated British Food ..............................................................4
Inbound Logistic .........................................................................................................................4
TASK 3............................................................................................................................................6
REFERENCES..............................................................................................................................13
APPENDICES...............................................................................................................................15
SWOT Analysis ........................................................................................................................15

INTRODUCTION
Strategy in business are regarded as the alternative to mainstream strategies through the
attempt of shifting the attention from mere focus on effects of the strategies over performance
alone for more comprehensive and the in-depth analysis that takes place in the strategy
formulation actually, its planning and the implementation and activities for doing and thinking of
the strategies. The present report would provide the analysis of the strategic position of the
organisation through the growth opportunities and the emerging current threats in the industry
and what are industry attractiveness. It would also discuss the unique resources, distinctive and
the core competencies of chosen company using the strategic tools such as the value chain
analysis, VRIO and SWOT analysis. Lastly it would conduct TOWS matrix to assess the
strategic options for organizations and selection of more appropriate strategies. The selected
strategy will be analysed using SAFE criteria that is very useful and helps in assessing the assets
and liabilities of the company. It will help in analysing the strategies that would help in having
appropriate strategy and provide how company should utilize the resources for competing
successfully in the business environment.
TASK 1
a) Growth opportunities and emerging threats for Associated British Foods
The growth prospects and the emerging threats as posed by the external environment of
Associated British Foods can be determined by using the PESTLE analysis. Such analysis done
by the management shall help in studying the elements in the company's external environment
which are impacting its business operations. Such factors are:-
 Political Factors- There are certain political factors that impacts the British Foods and its
profitability. One of the prominent element is the introduction of the sugar tax in UK.
Such imposition can be an emerging threat for the retailing foods business (De Paula,
2019). The tax liability shall be an additional burden which shall reduce the profitability
of the company. Apart from this the Brexit is also posing threat to the industry as it shall
separate UK from the European Union which leads lot of economic, customs, supply
chain issues. Also, the military invasion is a threat as it shall cause divestment from the
ventures.
 Economic Factors- The macro factors decides the operational efficiency of the business.
The GDP growth of the country, its financial markets, interest rates, employment level
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etc. forms part of the macro environment (Hirsch, Lanter and Finger, 2020). These
macroeconomic factors are favourable in UK so it can generate growth opportunities for
the British Foods. If the potential customers have higher disposable income then it shall
boost the revenues of the company. The tax policies also impact the business of the
company like the imposing of sugar tax.
 Social Factors- The social factors like the trend and the fashion impacts the business both
in positive and negative way. If the impact is positive it shall lead to developing growth
prospects for the company and if such impact is negative it shall drive threat to the
company (Nandonde, 2019). In UK the people have become more conscious for the
health and well being. This drives opportunities for the company to enter new market of
healthy and organic foods. Also, the popularity of the various substitutes for the meat
foods have given the company a chance to derive competitive edge.
 Technological Factors- Technological advancements are generating opportunities for
expansion like the genetically modified ingredients can lead to diversifications for the
industry and the British Foods can capitalize upon this to target new segments of
customers and deriving the competitive advantage. More involvement of the customer
technically help the marketer do the promotions of the company through the digital
marketing campaign and by optimizing the website to generate brand awareness.
 Legal Factors- The newly developed laws have always posed threat on the company and
its practices. Abiding by the laws snatches the freedom of the company like several laws
for the safety and security of consumers, quality standards etc. law to abolish the EU
sugar sales quota has developed expansion opportunity for the company as there shall be
no limit to export, and they are free to try new markets.
 Environmental Factors- Since the company has not got much of wastage generation so its
stands out over other competitors in the industry. The lesser use of plastic and its
recycling has certainly put some restrictions over the operations of the business which is
a threat. But for this if they change the packaging without use of plastic this shall help
them attract customers.
b) Industry Attractiveness
The porters five force model shall determine the attractiveness of the industry.
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