Organizational Strategy Report

Student’s Last Name 1
Organizational Strategy Report
By (Name)
Course
Professor
University
Date

Student’s Last Name 2
Executive summary
Adnams is a brewing company located in Southold, UK. The company’s positioning
strategies have assisted it to thrive despite many challenges in the market place. Some of the
challenges experienced include, increased competition, the availability of substitutes, including
the increased demand from the buyers. The report is divided into four sections: key challenges
experienced by Adnams, key aspects of Adnam’s internal business operations, and strategic
options as well as directions that Adnams can consider in sustaining its future growth. The last
part provides recommendations that can help develop Adnams over the next ten years.
Table of Contents

Student’s Last Name 3
Executive summary................................................................................................ 2
Challenges facing Adnams and its industry and sector analysis....................4
Industry and sector analysis....................................................................................4
PESTLE analysis....................................................................................................... 5
Key aspects of the internal business situation at Adnams..............................6
The internal business situation of Adnams..............................................................6
Generic strategy of Adnams.................................................................................... 7
Stakeholder analysis............................................................................................... 8
Strategic options and directions for future growth..........................................9
ANSOFF matrix........................................................................................................ 9
Strategic options................................................................................................... 10
Strategic method................................................................................................... 10
Evaluation of the strategic option.........................................................................10
Recommendations................................................................................................ 11
Bibliography........................................................................................................... 13

Student’s Last Name 4
Challenges facing Adnams and its industry and
sector analysis
Industry and sector analysis
In analyzing the external factors that affect the operations of Adnams, the report will look
at the industry and sector analysis by using Porter's five forces tools and PESTLE analysis. This
will include the whole industry including hotels and breweries and also the main sector of
operations for Adnams, which is the Brewing sector. Porter’s five forces is a tool that is used to
analyze the industry and sector environment of organizations and determine whether the
organization can achieve a competitive advantage. In Adnams brewery industry, such factors
such as economies of scale, huge capital investments, government regulations, lack of access to
distribution channels, and product differentiations could create a barrier of entry to new firms.
Brewing companies such as Adnams enjoy high customer loyalty making it hard for new firms to
establish a customer base. However, the initiative by the UK government to introduce the small
breweries relief scheme in 2014, gave the new entrants an advantage as they were allowed to pay
reduced tax (De Melo and Leone, 2015, pp.80). This initiative poses a great challenge to the
operation of Adnams as there was increased competition from these new entrants (Brennan,
2015). The bargaining power of suppliers in the brewing industry and sector in the UK is low
due to increase recycling of materials. Adnams, for example, is making use of light bottles that
can be recycled and cause the least pollution to the environment. Since beer is not highly
differentiated, the suppliers are not able to charge high prices to the breweries. Among the key
challenge facing Adnams is the threat of stiff competition from other players in the market. Huge
multinational brewing companies such as Heineken and Carlsberg are well positioned in the
market and enjoy huge economies of scale. These companies additionally have a global market
as compared to Adnams and, therefore, poses a great competitive challenge to Adnams. In the