Strategic Management Report: ABR Holdings Limited, Singapore Market

This report provides a comprehensive analysis of ABR Holdings Limited's strategic management within the Singapore market. It begins with an introduction and background of the organization, highlighting its establishment and business operations. The report then delves into a macro-environmental analysis, examining political, economic, socio-cultural, technological, environmental, and legal factors impacting ABR Holdings. A competitive market analysis is conducted using Porter's Five Forces to assess the competitive landscape. The core competencies of the organization are evaluated using the VRIO framework, followed by a discussion of the current business strategy, including SWOT analysis, value chain analysis, and Ansoff Matrix. The report evaluates the suitability of the current strategy and concludes with recommendations for improvement. The analysis provides a detailed overview of the company's position in the market, its strengths, weaknesses, opportunities, and threats, and offers insights into potential strategic adjustments for future success.

Running head: STRATEGIC MANAGEMENT
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Table of Contents
1. Introduction:.............................................................................................................................2
2. Background of the organization:..............................................................................................2
3. Macro-environmental analysis:................................................................................................3
4. Competitive market analysis.....................................................................................................4
5. Core competency of the organization by using an analytical tool:...........................................4
6. Identify and discuss the content of current business strategy:..................................................6
7. Evaluate the suitability of this strategy:....................................................................................9
8. Recommendations:.................................................................................................................10
9. Conclusion:.............................................................................................................................10
Reference List:............................................................................................................................12

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1. Introduction:
Strategic direction is one of the most significant forces of business, which directs the
employees towards researching a proper aims and objectives set by the organization. In order
to run the entire process of business the organization needs to make appropriate strategic
decision, which can ultimately helps the business experts in reaching the peak of success. This
very specific study has focused to make detailed overview about the importance of strategic
business decision, which can direct the organization in meeting the peak of success. However,
the primary purpose of this very specific study is to make critical analysis about competitive
market strategy by evaluating the environmental analysis of Singapore. The study has
highlighted the core competency of the organization based on which different analytical tool is
used. At the end of the study, major recommendations have been provided based on which
strategies implemented within organization can be improved for getting immense recognition.
2. Background of the organization:
ABR Holdings Limited is one of the most recognized food and beverage chains
occupying a predominant place in the market of Singapore (abr.com.sg 2018). Established their
journey in 1978, Singapore the organization has held its franchise for Swensen's Inc. in
Singapore. ABR has initiated their journey as Swensen’s ice cream restaurant. After that, this
group has expanded their business wings in different geographic areas of Singapore by
launching 25 restaurants. Providing superior quality of products in affordable price range is
the primary mission of this specific study. Foods and beverages are the core product with
which ABR Holdings is maintaining their business sustainability. By 2017, ABR has

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purchased 50% of Bintan Lagoon Resort, which implies S$65 million (abr.com.sg 2018). The
market scope of the organization is growing which has immense opportunity in holding
international fame and reputation. The service providers associated with this group are very
much well mannered and professionally trained. As a result, customers do not have to face
challenges in receiving the services from ABR. It has been observed however that this
particular organization has immense scope and opportunity to expand their business in
multinational countries.
3. Macro-environmental analysis:
Macro environmental analysis implies on how environmental factors leave a major
impact on the overall success of business. Environmental factors imply political,
environmental, social, technological, economic and legal (Hill, Jones and Schilling 2014). In
order to make effective business strategy the executives need to make environmental analysis
with the help of which people have to face immense challenges in dealing with the customers
effectively. Singapore is one of the most popular counties in terms of economic development
due to the rising growth of business industries.
 Political:
Political risk in the market of Singapore is low due to which the business experts do not
have to strive in running a smooth process of business. As stated by Tremewan (2016),
analysing the political environment in Singapore, it has been identified that after the
independence, political stability is being cherished by the people. Due to such opportunities,
living standard in this country has been developed (Yeung 2017). Due to stable political
environment, Singapore is being considered as the Asian country with lowest political risk.

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Therefore, in this situation it will be easier for ABR Holdings Limited to enhance its business
in an effective manner.
 Economic:
Analysing the economic situation in Singapore, it has been identified that the country
has slow economic growth. In the year 2017, the GDP rate in Singapore was 3.6%.
However, if the growth rate in previous years can be analysed, it will be identified that
comparing the previous years, the GDP rate much not increased (Focus-economics.com
2018). Therefore, it can be said that economic risk in this country is quite high for
expanding business. Due to the unstable economic situation, the rate of unemployment in
this country is increasing day by day (Friedman 2017). In this situation it is tough for the
ABR Holdings Limited to sustain in the Singapore market.
 Socio-cultural:
In the socio-cultural situational analysis, it has been identified that it is a high collective
society (Vertovec 2015). Near about 2 million others nationalities of people live in this
country, which has brought the diversified culture in Singapore. In the words of
Esmaeilpoorarabi, Yigitcanlar and Guaralda (2018), it is true that depending on the current
situation, the changing needs and demands of the customers, it can be said that social
cultural risk in this country cannot be ignored. However, it is also true that due to
availability of large numbers of customers, it will be easier for the company to sustain in
the market. Therefore, social cultural risk of ABR Holdings Limited in the Singapore
market is moderate.
 Technological:

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As stated by Gosens, Lu and Coenen (2015), Singapore is being considered as the first
ranked country in digital competitiveness. Due to availability of technology and knowledge, a
strong technological environment has been developed in this country. This situation has
brought various talent, training and development opportunities in the country. Therefore, it can
be said that technological risk in this country is very low, which can help to flourish the
business of ABR Holdings Limited. Technological environment can help the company to
sustain in the competitive business environment.
 Environmental:
According to Kim, Moon and Yin (2016), strict air and water pollution regulation are being
followed by the Singapore government. All the internal environmental agreements are being
followed by the government. However, it cannot be denied that increasing health disease in this
county, the government has become strict for maintaining the food standard in the food selling
organization. In this situation, it can be said that environmental situation is not in favour of
ABR Holdings Limited in the Singapore market. In this situation the pressure on the
organization to maintain the waste management standard will be high.
 Legal:
In order to bring business opportunities various trade regulations have been introduced by
the Singapore government. Maintaining the standard employment policy in the workplace,
different employment regulations as well as customer safety rules have been introduced in the
industry. However, most of the competitive regulations are hard to be followed by the
organizations. Therefore, it can be said that legal risk is moderate for ABR Holdings Limited.

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4. Competitive market analysis:
Porter’s Five Forces:
Situation Analysis
Bargaining power of the suppliers In the Singapore food market, bargaining power of the suppliers
is low. With increasing opportunities in the market, the numbers
of suppliers in the market have also increased, which has
reduced the bargaining power.
Bargaining power of the buyers Analysing the competitive business environment in Singapore
food industry, it can be said that bargaining power of the buyers
is high. After introduction of technological innovation, it has
become easier for the customers to compare the price before
experiencing the service (Flynn et al. 2016). Due to availability
of many options in the food market, customers get options
before purchasing products.
Threats of new entrants In the external environmental analysis it has been identified that
due to slower economic growth in the Singapore market, the
extreme competitive business environment in Singapore food
industry is the major concern for the organizations. In this
situation, most of the food markets are being ruled by the large
organizations, which creates tough situation for the new
entrepreneurs to develop their business in the Singapore food
market. Therefore, it can be said that the threat from new
entrants is low for ABR Holdings Limited.

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Threats of substitute products Threat of substitute products is high in the Singapore market. in
most of the cases, the small organizations provide same types of
services and foods to the customers in lower ranges, in this
situation, it is tough for the companies to maintain uniqueness in
the market.
Exiting rivalry Analysing the food market in Singapore, it has been identified
that Sheng He food Chain, Haji Kadir Food Chain and Dine in
the dark are the major competitors of ABR Holdings Limited.
These organizations have established its strong brand image in
the market, which can create tough situation for ABR Holdings
Limited to sustain in the competitive market. Therefore, it can
be said that threat from existing competitors is high for ABR
Holdings Limited.
Table: Competitive analysis in market
(Source: Flynn et al. 2016)
5. Core competency of the organization by using an analytical tool:
Core competency of an organization implies on how multiple resources and product
features can distinguish the business process at the marketplace based on which the business
experts can gain competitive advantages (Doz 2017). Before analysing the core competency of
ABR Holdings, the business experts have used three major analytical tools for evaluating
company’s internal and external structure. In order to evaluate the core competencies ABR has

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to analyse its resources. VRIO framework is one of the most systematic tools of analyzing the
cre competency level of ABR Holdings.
Valuable:
In this very specific phase, ABR holdings can decide on how expensive the resource is
in gaining competitive advantages in market (Meyer, Neck and Meeks 2017). As per resource
structure of this organization, it has been observed that resources are very much affordable for
the stakeholders with the help of which they do not have to struggle in using the services.
Rare:
ABR holdings resources are sufficient in fulfilling the needs and demands of the
customers. The stakeholders do not have show their dissatisfaction regarding the availability of
resources (Song, Sun and Jin 2017).
Costly to imitate:
ABR after being recognizable in the market has set their own market trends. Therefore,
it is very much difficult for the competitors for to imitate the resources created by ABR
Holdings.
Organized to capture value:
If the resources are not limited and it is valuable, the business experts do not
have to face challenges in capturing organization value in the market instead of having
innumerable competitors (Wheelen et al. 2017). On the other hand, it has also been observed
that the quality of products in affordable price range is the core competency of ABR Holdings
due to which the entire process of business has created a self-identity in market.

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Figure: VRIO framework for analyzing the core competency of the organization
(Source: Todorović et al. 2015)
6. Identify and discuss the content of current business strategy:
In order to gain competitive advantages ABR Holdings has implemented several
strategies and policies within organization. SWOT analysis is conducted for analyzing the
strengths, weaknesses, opportunities and threats of organization. Value chain analysis is
evaluated for maintaining the inbound and outbound procedure of organization (Hill 2017).
Ansoff Matrix is one of the most significant marketing strategies that is implemented for
forecasting future product growths and opportunities.

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 SWOT analysis:
Strengths Weaknesses
 Quality of products in affordable prices
 Good customer management system with
proper professionalism
 Operation system is slow due to limited
number of workforces
 Lack of balance between product supply
and demands
Opportunities Threats
 The organization has immense
opportunities in expanding the entire
process of business in multi-national
countries
 The organization can make more product
developmental growth
 The company has to face major threats
from the competitors due to its limited
workforces
Table: SWOT analysis of ABR holdings
(Source: Stark 2015)
 Ansoff Matrix:
Ansoff Matrix strategy primarily aims to evaluate the market scope and product
opportunity in future. This particular marketing strategy is of four major phases that include
marketing penetration, product development, market development and product diversification.
 Market penetration:

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This very specific phase occurs when a business organization seeks in achieving growth
in market with the existing products (Jarzabkowski and Kaplan 2015). In this very specific
stage, the organization does not have enough opportunity in expanding their products and
services due to economic constraints. Large number of small and medium enterprises after
launching their business in market tends to follow this phase.
 Product development:
Product development is the phase of developing new products in the existing market
segmentations (Miller, Merrilees and Yakimova 2014). In order to maintain market
sustainability the business organization intends to render development on their products so that
they can overcome customer complaints
 Market development:
Market development is the process of expanding target markets with the help of
existing products (Pike and Page 2014). In this very specific phase, the business experts aim to
increase their number of target market for expanding business in other geographic backgrounds
as well
 Product diversification:
Product diversification is the stage of rendering new products in new market. While
expanding the market the business experts have to make product diversification (Cardy and
Leonard 2014). Otherwise, the customers would not be able to get effective services from the
organization.