Unit 32 - Business Strategy

Business Strategy

3Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1 Application of appropriate framework to analyse macro environment.................................1
M1 Critical analysis of macro-environment to communicate strategic decisions......................3
TASK 2............................................................................................................................................3
P2 With use of appropriate framework analyse internal environment capabilities.....................3
M2 Critical analyse of internal environment with assessing strength and weakness..................7
TASK 3............................................................................................................................................7
P3 With implementing porter's five force model evaluate competitive force.............................7
M3 Justify appropriate strategy to improve competitive edge and market position of an
association...................................................................................................................................8
TASK 4............................................................................................................................................9
P4 With applying different range of theories, conduct future growth planning.........................9
M4 Strategic management plan showing tangible and tactical strategic priorities...................12
D1 Critique and Interpret information with implementing directions for setting objectives and
tactical actions...........................................................................................................................16
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17

INTRODUCTION
Business strategies are the policies with the help of which organisation can perform their
operations in appropriate manner with consideration of external market. When there is proper
strategies, then it is easy for managers to get positive impact over it. There is requirement of
proper management of operations with the help of which workforce is able to understand policies
in better and effective manner. It is important and relevant for people to understand about
changes which are taking place, then it will be easy for organisation to deal with external
environment changes (Johnson, 016). This report is based on CADBURY which is one of the
well known organisation in chocolate sector. This is the organisation operating all over the
world, hence there is requirement of proper understanding about external environment. This
report covers which PESTLE analysis, SWOT analysis, VRIO analysis for internal capabilities
and external factors. With the help of porter's five force model information about competitive
advantage can be enhanced. Lastly different theories are used with the help of which strategic
future planning for launching Flavoured CADBURY shake can be done.
TASK 1
P1 Application of appropriate framework to analyse macro environment
CADBURY is the British multinational confectionery organisation. This is the
association who services chocolates, biscuits, beverages, etc. in specified quality with the help of
which people consider this brand and are more brand loyal. It is important for managers to plan
operations with the help of which they can get an synchronise way to conduct operations.
CADBURY is established in England in 1824 by John CADBURY, at that time this operation
deals in tea, coffee and drinking chocolate, etc. When success of business, their brother also
joined the organisation. Dairy milk chocolate was launched in 1905 which is prepared with the
help of good quality raw material (THE CADBURY STORY, 2019).
Mission: Mission is: Quality is the prime factors and regular improvement in products
with promise of assurance.
Vision: “Working together to create brands people love.”
Objectives: Objectives of CADBURY are as under-
 To enhance the working efficiency with the help of consumers get best quality products.
1

 To improve the marketing strategies for launching new product through which 5%
increment in sales within 1 year.
 To maintain positive and long relations with stakeholders, so market share of CADBURY
can be maintained.
For studying external market of UK and its impact on CADBURY, there is use of
PESTLE analysis. With the help of it, it is clear that external policies are favourable and non-
favourable for organisation.
Political: There are many taxes which is implemented by UK government for
maintaining quality of products. It is important for managers to understand and abide it because
this reduces government interferences. Hence this might give negative impact on sales of
CADBURY. When there is increment in taxes, then cost increase and consumers reduces
(PESTLE Analysis of Cadbury, 2019).
Economical: There is less economic stability in UK due to which income of people is
also unstable. When there is increment in tax rates, then managers of CADBURY does not want
to avail money from external sources and people also does not incur income on luxury products.
Hence due to less economic stability, there is possibilities of negative growth of CADBURY
business (Thompson, Strickland and Gamble, 2015).
Social: There are many people in UK who prefers to take alcohol, coffee, tea, etc. due to
which there are possibilities that people does not prefers to take chocolate. There are many
people who are suffering from obesity, so in this case avoids chocolates and beverages. Hence it
is essential that lifestyle and taste of consumers have to be analysed. As trends and taste of
consumers are changing with rapid speed, so in this case launching of new product by
CADBURY is expensive.
Technological: With the help of new and latest technology such as use pathogen systems
and filing patents for heat-resistant chocolates which maintains quality and provide provide
product is less time. Hence with technological changes, there is positive impact on consumer
satisfaction as well.
Legal: There are many legal factors such as laws related to hiring of employees,
protection of property, etc. are covered under legal factors. There are many laws in UK which
have to be followed by managers through which their operations are authentic, so possibilities of
growth are more of them (PEST Analysis of Cadbury, 2019).
2

Environmental: There are many environmental prospects which has to be considered
such as UV rays, fossil, smoke, etc. due to which environment gets affects negatively. Due to
excess use of technological machines, there is harm to environment which affects operations of
CADBURY negatively. So managers of CADBURY have to invest huge money in using eco-
friendly machines. This might affect cash flow of CADBURY.
M1 Critical analysis of macro-environment to communicate strategic decisions
After studying factors of PESTLE, it is clear that majority of components gives negative
impact so it is responsibility of managers to understand it. For instance: in case of political
factors, there are many taxes which has to be paid. So in this case managers of CADBURY have
to mange their cash accordingly and due to it, sales might get reduced. In case of technology,
there is use of new and latest technological which requires change in working style and requires
huge cost. Consumer taste and requirements are changing, so managers have to use pro- active
approach to deal with it. But in this case prediction might get wrong. Legal policies of UK are
tough and rigid, so in this case it is important to consider it other wise this affects brand image of
CADBURY. Hence it is clear that it is essential for managers of CADBURY to understand and
evaluate changes properly. There must be proper planning for finance through which business
operations of CADBURY does not get affected (Akter and et. al., 2016). There are some positive
aspects as well through which CADBURY can get positive outcome with making policies in lieu
of it. If there is change in operational efficiency because of technological changes, then
employees are also satisfied because their knowledge is up to the marks and they are in
comparison to other people.
TASK 2
P2 With use of appropriate framework analyse internal environment capabilities
CADBURY is the association dealing in confectionery items, there are many other
competitors which are dealing in similar sector and have strong consumer base. So CADBURY
have threat with such organisations so they have to change their operations as per consumer
demand or external market. In order to access internal environment, SWOT analysis is
performed, while in order to access and evaluate internal capabilities, VRIO will be done (SWOT
analysis of Cadbury, 2019.).
SWOT ANALYSIS
3

Strength Weakness
This is the organisation having good brand
image, so it is easy for association to distribute
product and services.
Promotional strategies of CADBURY is best,
so they can target consumers easily. This
increases sales and consumer base of
CADBURY.
Major weakness of CADBURY is that they
have weak distribution system in rural areas.
Apart from this they have some controversial
aspects as well due to which brand image
might get affected.
Opportunities Threat
Major opportunities for CADBURY is that
they can target rural areas, so consumer base
increase.
CADBURY can enter in new segment of
products and services which increase scope of
conducting operations.
Main threat is major competition among other
organisations. This affects working style
because managers have to regular research and
market new strategies which is time and cost
consuming activities (Higgins, Omer and
Phillips,2015).
Another threat is increment in cost of raw
material because operations are performed in
many countries.
VRIO ANALYSIS
VRIO analysis refers to the study in which organisation's resources are evaluated. There
are four factors which have to be considered i.e. value, rareness, imitability and organisation.
This model is propounded by Jay B. Barney which talks about resources of CADBURY. There
is study of mainly four resources i.e. Financial, human, material and non material.
4