Adnams Brewery Case Study: Challenges, Strategies, and Recommendations

This case study examines Adnams, a UK-based brewery, analyzing its strategic business situation. It begins by identifying key external challenges, including political, economic, competitive, technological, and social factors impacting the company. The study then delves into Adnams' internal business elements, such as plans, policies, human resources, financial resources, corporate image, and relationship management, highlighting their importance for the company's success. Furthermore, the analysis explores strategic options for future growth, focusing on Porter's generic strategies, particularly cost leadership and differentiation. Recommendations are provided to enhance the company's development, including suggestions for navigating the external environment, leveraging technology, and motivating employees. The study concludes by emphasizing the significance of business strategy and its impact on the company's growth, summarizing the key findings and recommendations for Adnams' future.

Case study - Adnams
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Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Key challenges face by Adnams in external environment...........................................................4
The important elements of internal business situation for Adnams ...........................................5
Strategic options and direction to sustain future growth.............................................................6
Recommendation to develop company........................................................................................8
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10
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INTRODUCTION
Adnams is the midsized brewery company and business which is based on the Southwold
in UK. It is produces cask and bottled beers. The company established copper house distillery of
production of gin and whisky. This produces regular beers, seasonal, keg beers, bottles and
international beers. Those are the products which are produce by company. The present study is
based on the Adnams A living company and its strategic business situation. The study lays
emphasis on the key challenges face by company in the external environment. Report will show
the importance of internal business situation. It will show the strategic options and direction for
future growth. It will also recommend developing Adnams for next ten years in market.
MAIN BODY
Key challenges face by Adnams in external environment.
There are various key challenges in the external environment which are face by the Adnams at
market place. Those are gives negative and positive impact on the company and its growth power
(Ardjouman and Mingaine, 2017). That includes political, economic, competitive, technological,
social or cultural. Its description is as follows:
Political factor
The political factor is impact to business and its growth factors. This includes various
factors like taxation, government rules and regulations. Adnams is highly depending on the tax
rules and regulations because this industry is comply with both federal and state to legal produce,
advertise and distribute its products. Mainly company is face challenge which is permission by
government. Like company is use various ingredients for produce drink. In that they have to take
permission and government approval then they can produce their products. The second think is
that they are not advertising on TV and radio media. Those are the challenges which are faced by
the Adnams.
Economical factor
The economic factor is also key challenge which is face by company and its growth
factor. This includes the taxation rate, interest rate and inflation rate. There increases and
decreases are highly influences to Adnams which is a living and beer company. This industry is
highly competing with the liquor stores and customers attentions. Like inflation rate pulse
increases then it impact to company and peoples by higher rates. Because in that company pays
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extra amount and rate on its produces and customers are pay extra for its purchases. By this
company is face challenge by economical factor which is externally impact to company.
Competitive factor
The competition is must and highly impact to the company and in this sector has various
high brands with high goodwill which is highly impact to the Adnams. Competition is must
factor. The other brand and Adnams both produce federal drinks which are purchase by the
customers for high enjoy. In that other brand lunch new scheme and customers have trust on this
then it became a challenge for Adnams.
Technological factor
The technological factor is challenge for Adnams with the external factor. The beer
industry is lunched various technology for develop and refine their distribution channels.
Without any technology, beer is not on the shelves but in this case company have not leading to
technology in their distribution process which is leads for delaying (Bell, Dyck and Neubert,
2017). For the better production company have to use technology for that. It is best and effective.
This is also challenge which is faced by Adnams in the external environment.
Social and cultural factor
The social and culture factors affect to the sales of products and purchases which is the
key challenges for the Adnams. That is face by the company at marketplace. The Adnams is
constantly at odds with public opinion and result is likely to witness an opposite of sales. This
can impact to the company and its growth by creating challenge for that.
Those are the challenges of company which is face by the Adnams. This impact to sales
and purchase of company.
The important elements of internal business situation for Adnams .
The important aspects of internal business situation of Adnams are as here. There are various
internal elements which are important for the company. That includes human resource/employee,
financial resource, plant and machinery, relationship, plans and polices and most important
corporate image. Those are very important aspects which are impact to the company. Those are
as follows:
Plans and policies
Plan and policies are very important aspects and elements of Adnams which is help to
give proper direction to company work (Duncan, 2018). Here is need to properly framed for
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better consideration of objectives and resources of Adnams. Proper and effective plans and
polices are help to accomplishing goals and objective in order to achieve. This is very important
aspect of company at market place.
Human resources and employees
Human resources and employees are very important and effective aspects of the
company. They are given their hard contribution for achieve goals and objectives firm in
effective and correct manner. The social behaviour of employees is main reason and greatly
affects working of business. This includes skills; quality, commitment and morale which is
contribute by them for better success of Adnams.
Financial resources
Finance is the main and very important aspects of company because it is lifeblood of
every business and company. This will relate to the money and have need of proper management
of capital and fixed capital. This includes financial policies, status, capital structures which
influence the internal environment of company.
Corporate image
The corporate image is also great and effective which is effective and correct in manner
to achieve their goals and objectives (Liu and et.al., 2019). The Adnams is develop, maintain and
enhance good corporate image in mind of customers, employees and investors are help to
develop effective and valuable growth of the company. This is effective and best element of
internal environment of Adnams.
Relationship management
The relationship management is effective and valuable growth of the company. Positive
and effective relations between employee and management are creating the positive working
environment at company. For that company is give monetary and non-monetary incentive to the
employees. By this employees are highly motivated and create good and effective relations
between them.
Those are the important elements which are impact to the company and its growth at
marketplace for better growth and success of company.
Strategic options and direction to sustain future growth
An organisation is growing with hopes to sustain growth which is need to sets strategic
guide program for development for build strong financial foundation and ready for challenges
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ahead. This plan have aim make strong future of Adnams. The good and effective plan is
includes the goals and objectives of Adnams. For analysis the strategic options and direction for
future here is select the porter’s generic strategy are as follows:
Cost leadership
The cost leadership strategy is way of gaining competitive advantage in order to develop
competitive edge which is help to increase sales and take that form competitors. This hep to
increase profit by reduce cost of product (Marynenko, 2016.). This also helps to increase market
share by changing lower prices. This involves the various leaders of Adnams for the future
growth and respect of the company at marketplace with the help of the cost leadership strategy.
Differentiation strategy
The differentiation strategy is give new product as per innovate will good and effective
for the company and its growth factor. With the help of this Adnams is able to lunch new product
and services at marketplace. It will effective and help to compete with new market segment. This
will be effective and valuable for the growth of company at marketplace. To make success of
differentiation strategy Adnams need to be done good research, development and innovation.
Also ability develops and delivers high quality of products and services.
Cost focus and differentiation focus
The cost and differentiation focus is help to make effective development strategy for
developing growth factor at market place (Salavou, 2015). This help to develop market by
understanding dynamic of market and unique needs of customers within for develop low cost by
the well defining product for attract whole market towards it. Because most of the customers are
attract towards low cost product and well specified products. It is the important and effective for
define and decide what Adnams pursue cost leadership and differentiation. Both have their own
work and process for achieve growth at market place.
Cost leadership help to sets low cost of product and services other hand, differentiation
help to make unique product and services at market place. By this Adnams will able to develop
their products and services at market place. This will be effective and best for company and its
growth factor. This will give better opportunity to company for sustain their products and
services in future. Here is, strategic option and direction for company is cost leadership strategy.
It will help to company for produce their product at low market price and its growth.
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Recommendation to develop company.
The company is facing many of the key challenges for the company to develop their market. In
the external environment various factor are impact to the company and its growth. The key
challenges are political, technological, competition, social and cultural factor those are key
challenges of company. For that report show the main and important elements of the company
which are gives their hard contribution for achieve their goals and objectives of company
(Wicker and et.al., 2015). The internal environmental factors are employees or human resources,
financial resources, plans and policies, corporate image etc. those are important internal aspects
of Adnams.
For the sustain future of company will use the effective and valuable strategy which is
cost leadership and differentiation. Both are effective and valuable for the company and its
growth factor. It will consider the cost leadership strategy which is giving effective ow prices of
product with best quality of product. That is help to give best and effective competitive
advantage to company. It will highly effective and valuable for growth factor of company. With
the help of this Adnams will sustain their future with help of low product cost with best quality
of result.
For that here is recommendation for company are as here, company have to follow all
rules and regulations for compete with political and regulatory environment. For compete with
their competitor here is recommended the make best quality of the product with low price of its.
Adnams use new technology and services for better production of product and services at market
place (Zinovieva and et.al., 2016). It will effective for company and its growth at marketplace.
For best result of work, company can give motivation to their human resources like
employees because they are given their hard contribution for achieve goals and objective of
company at market place. For that recommend here, use non-monetary rewards system which is
effective and give long term effect on company. In order to sustain their future, Adnams will use
the cost leadership strategy which is effective and valuable for the company and its growth
factor.
CONCLUSION
From the above study it had been concluded that the business strategy has important for
the company and its growth. That had given positive impact on the company. The external
environment has the key challenges which has faced by the company like social, technological
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etc. the internal factor has most important for the company that had includes like employees,
financial resources, corporate image and plans or policies of company. An employee has given
their hard contribution for achieved goals and objective of company. Report had been covered by
the strategic direction for company which has cost leadership strategy of company. That has
given unique and effective image at market place by low cost of product with best quality of
result. Report has covered by the various recommendations for the company and its growth in
future.
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REFERENCES
Books and journals
Ardjouman, D. and Mingaine, L., 2017, July. An Investigation into External Environment
Factors Affecting Performance of Small and Medium Enterprises in Cote d'Ivoire.
In Proceedings of the International Conference on Business and Information
Management (pp. 138-143). ACM.
Bell, G. G., Dyck, B. and Neubert, M. J., 2017. Ethical Leadership, Virtue Theory, And Generic
Strategies. Radical Thoughts on Ethical Leadership, 113.
Duncan, T. W., 2018. Improving Intrinsic Motivation in Students: Leadership Practices and
Strategies (Doctoral dissertation, University of South Alabama).
Liu and et.al., 2019. Project external environmental factors affecting project delivery systems
selection. Journal of Civil Engineering and Management, 25(3), pp.276-286.
Marynenko, N., 2016. Regulators for Adaptive Enterprise Development.
Salavou, H. E., 2015. Competitive strategies and their shift to the future. European Business
Review. 27(1). pp.80-99.
Wicker and et.al., 2015. The effect of Porter’s generic strategies on organisational problems of
non-profit sports clubs. European Journal for Sport and Society 12(3). pp.281-307.
Zinovieva, C.G. and et.al., 2016. Study of external and internal factors affecting enterprise’s
stability. Advances in Systems Science and Applications 16(1). pp.62-71.
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