Case Study: Adnams Brewery - Strategic Analysis and Future Growth

This case study analyzes Adnams, a UK-based brewery, examining its competitive strategy and market position. The study begins with an introduction to organizational strategy and then delves into the external environment using PESTLE analysis, highlighting political, economic, social, technological, legal, and environmental factors impacting the business. It then describes the internal business situation, including value systems, mission, objectives, organizational structure, and corporate culture. The case study explores strategic options such as market penetration, market development, product development, and diversification. Finally, it recommends strategies for Adnams' growth over the next ten years, focusing on market penetration and product development to enhance market share and customer engagement. The study covers Adnams' challenges, internal aspects, and strategic choices to sustain future growth and profitability.

CASE STUDY: ADNAMS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Explaining the key challenges facing Adnams in the external environment..............................1
Describing the important aspects of the internal business situation of Adnams.........................2
Strategic options and directions could Adnams consider to sustain future growth....................4
Explains what would you recommend to develop Adnams over the next ten years...................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Organizational strategy is the sum of the actions a company intends to take the achieving
long term goals. Strategic plans take at least a year to complete requiring involvement from all
company levels. However the present study will be based on case study of Adnams which is a
publicly owned brewery based on East Anglia in the UK. Furthermore in the study will analyse
the competitive strategy and position. Their core business remains the brewery however the sales
of beer have been declining. Also it explains the company internal or external environment
analysis to understand the deep knowledge of the business. Report also outline the options and
directions could company can adopt to sustain the long term growth in the business. At the end
of this section study will recommend to develop Adnams over the next ten years.
MAIN BODY
Explaining the key challenges facing Adnams in the external environment
In order to examine the external environment and related factors affecting business
activities (Baumgartner and Rauter, 2017). The best model to analyse the business environment
is PESTLE that effectively interpreting data, gathering data and information about the strength &
weaknesses.
Adnams is the small scale business that core business is brewery because the revenue of
beer has been declining. However, the diversifying the concentrating on narrow niche markets
are remain order to gain the low profit market. However the PESTLE model helps to analyse
what actual issues company faced.
Political (P): The extent to which a government may influence the economy and affect
the business as well. Political factors may get influenced by policy changes, political stability,
and trade tax policies. Such as for Adnams' it is a more complex to conduct the business.
Political factors may get affected by the distribution of Beer to one place to another. Such as
Beer Adnams supply its Beer through the 50+ Adnams licensed pubs, direct through Adnams
shops and hotels and to independent free trade pubs in East Anglia and London. So as such this
factor might get affect the distribution process due to political circumstances (Bolisani and
Bratianu, 2017).
Economical (E): Economic conditions shift supply and demands to directly affect a
company. Economic factors can affect the Adnams business by inflation rate, saving rate, interest
rate foreign exchange rate. Such as Adnams expand its business into hotels, bars and restaurants
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where they supply beer. So for that Adams required to consider some factors before making such
as infrastructure quality in Beverages,skills levels of workforce in beverages etc. along with that,
Adnams also faced challenges of economic growth rate, unemployment rate. Also helps to brings
the main aim of the organisation and growth. This also helps to define the better goals and
organisations that brings different challenging and growth (Wiendels, 2019).
Social (S): Society culture and way of doing things impact the culture of an organisation
in an environment. However, it has been analyse that customer are very much conscious and
concern about the quality. They are serious about its quality and purity which is a hand crafted
product or services (Bossle and et.al., 2016). We have the space, the raw materials, distribution
channels and customers. Social factors is always belongs to the society and affected by the
people preferences. Adnams tries hard to keep close and tight connections with customers.
Technological (T): Technological is the highest and most effective factor that
contributes the best and leading effect on the businesses. However, the business get charges
about the effective learning opportunity and task to build-up the good image in the market.
Adams has now a leading company after its opening new outlet in international market with the
help of social media marketing and attained the customer satisfaction growth. As per the
analysation Adams is the first beer brand to go onto Twitter followers.
Legal (L): Legal is the another effective factor that allowances or requirements within
countries or territories in which an organization operates. This includes such factors like safety
requirements, labour laws, and consumer protection laws. Legal framework is highly essential to
be followed in order to protest the intellectual property rights of an organization. Anti trust raw
in beverages, discrimination law, data protection, health and safety law etc.
Environmental (E): Environmental factors might affect the business due to not
following the business standards. Like Adnams has strictly follow the CSR activities in order to
protect the business functions and activities ((Coetzee and et.al., 2019). However, Adnams has
talented employee who always brings their own intelligence for better development.
Describing the important aspects of the internal business situation of Adnams
Internal business environment of Adnams are very good and effective. However, the
study also explains the better growth and results to perform the task. Company also work a most
and leading and developing task results and growth. It has been analysed that Adnams having the
powerful communication between the company culture around. Internal business situation of
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Adnams is very much productive and leading within different context and goals. Adnams has
total 3000 lines of supplying the tied estate with all they need. So this is the positive sign for the
company to take out the best develop results and growth in different styles.
In other words, there are many factors that determines internal environment of a business
firm.
Key aspects of the internal environment
Value System : Value system is the key aspects of the internal environment of the
company that contains the ethical beliefs and the organisations in achieving its mission and
objectives. The value system of a business organisation also considers the behaviour of
employees, customer and aspects of societies, policies and practices. Sometimes to not following
the legal aspects company faced high low attention from the side of society and growth. In other
words it also less effective and less managing business growth in terms of managing the low
effective work goals (Cohen, 2017). Such as Adnams deals with beer so that they need to be
offer good quality of beer to the public instead of something which is unhealthy. The big key
aspect for the Adnams is sustainability, it is the biggest value of Adnams. However, the good and
positive values of the business has always be given goof impact on the business success. Such as
by 2014 Adnams has reduced their profit due to producing the carbon everyday. Company
should need to protect the environment to gain the positive public reviews.
Mission & Objectives : The objectives of all the firms are to earn profit maximization
that contribute long term growth. Company aim & objectives is to become a big dealer to
provides the ultimate local brewer pleasure that big brewers can never march.
Organization Structure : In terms of company structure so that Loftus and family
purchased the stake in Adnams in 1902 (Ulrich and Dulebohn, 2015). so this is the family owned
company that controlled the functions by those members.
Corporate culture and functions : However the new and leading target market can
helps to determine the product approach. In other words, company corporate culture or business
functions are highly affected factors to the company. Corporate culture and style of functioning
of top managers is important factor in order to determining the internal environment of a
company (Crowther, 2018). In terms of Adnams employees are proud to be with Adnams group.
However, the leading developing and however the new development growth.
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Strategic options and directions could Adnams consider to sustain future growth
Strategic business directions or action are very necessary for the company to be needed in
order to manage the business opportunity and gain huge profit outcomes. In order to suggest the
high growth in the business gain can help to focused firms present and potential product and
services. In order to that, study tale helps to analyse strategic marketing planning to gain the
revenue for a business through developing new products and services or tapping new business
idea.
Market Penetration : Market penetration is the first model or business strategy that
company gain to selling the business focus on selling existing products into existing markets.
Market penetration is the name that grow the business gain and objectives. Besides, securing
dominance of growth marketing material. On the other hand, marketing penetration is the best to
promote the working objectives and task into best performing manner. Maintain or increase the
market share of current products and services (Kluegel and Smith, 2017). Maintain the market
share of current products this can be achieved by a combination of competitive pricing strategies.
This is the most usual and common business as usual. This business is focusing on markets and
products it knows well.
Market Development : Market development is the given to a growth strategy where the
business seeks to sell its existing products into new markets. New product dimension or
packaging company can adopt to the business growth and making the work more reliable and
challenging. As compare to market penetration market development strategy is more risky
strategy that aims and objective is to gain the existing markets. Adnams can open their new
hotels, or bars into the new place with new targets and objectives. Market development is a more
risky strategy than market penetration because of the targeting new buyers.
Product Development : This is one another strategy that Adnams can adopt to enhance
the business position and growth. This strategy may require the developments of new
competencies. However, the new business opportunity purpose is to open up the new product
idea and growth to the business functions (Noe and et.al., 2017). Also company can modify
existing products with some innovation or the new concepts. This helps to deal with new exiting
products and managing the work more suitable and effective. A strategy of product development
is the effective strategy for those organisations who really become more competitive in the
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market. For this Adnams required to invest on research and development process, or may give
the detailed insights info customer needs and also being first to markets.
Diversification : Diversification is the most competitive and leading strategy goals that
makes the effective learning process and materialistic channel. Diversification is the method
through company either can earn profit or loss as well (Tulung, 2017). However, diversification
is the more risky strategy because where a business markets now products in new market. This is
the game or risky strategy because the business is moving into markets. Basically this approach
or strategy is the most complex and risky as compare to others.
Explains what would you recommend to develop Adnams over the next ten years.
In order to recommend the strategies or ways that company could adopt in order to gain
the market profitability. With that, from the above explained strategies company needs to adopt
either market penetration or product development (Rauter, Jonker and Baumgartner, 2017). Both
the strategies and tactics are effective for the Adnams to gain market approach. In order to be
more competitive in the market Adnams spread their businesses over three areas hotels, retail
outlets and a distribution centre.
Recommended
Market Penetration is one of the leading development task that company can adopt to
gain market growth. This strategy helps to focus on the selling existing product or services with
the aim of spreading market share of the company. In other words it helps to determine the long
lasting different opportunity and goals to gain the customer attention towards the company
objectives. However, this is the most common strategy and very useful to gain market growth
and customer attention towards the company product or services.
Adnams can achieve or implement this strategy by four ways such as to increase market
share of current products, enhancing usage by existing customer, dominate growth markets also
make the positive action plan to implement. However, Adnams can also gain profitability by
price adjustment, sale promotion, targeted promotions, targeted advertising and opening of new
distribution channels (Schaltegger and Burritt, 2017).
Market penetration is frequently adopts to measure the market gain which is capable a
fixed percentage of the market. Price adjustment is one of the frequent market penetration
strategy is price adjustment.
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Increased Promotion is the another most strengthen marketing activity that helps to grab
the customer interest towards the product or services. Also apart from this it helps to meet out the
business objectives and goals to gain the profitability for the Adnams. Also Adnams can adopt
the promotional activity which concept based on sustainability. Increased promotion is the
another most effective and learning outcomes that helps to make.
Distribution channels is the another way that helps to make the best idea and growth that
makes the long term process (Sekaran and Bougie, 2016). This is the most significant component
of market penetration strategy which is distributed channels. Adnams distribute is beer through
different manner such as retails, restaurants through bars etc. so it has been concluded that this
strategy is fruitful for the company growth.
CONCLUSION
Organisation strategy is the business plan that company adopts to gain the market
expansion and profitability growth within the business context. Present study based on
organisation strategy on Adnams. Study explained the different concepts of business and key
aspects of internal or external business environment in order to meet out the company aims and
objectives. Apart from that, it also helps to meet out the the best dealing material and effective
learning approach. Report supported theory by the help of different marketing models such as
PESTLE and Ansoff Matrix Model. Besides, study also recommended the strategies or models
that company could adopt in order to gain the market opportunities.
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REFERENCES
Books & Journals
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pp.233-253.
Bossle, M. B. and et.al., 2016. The drivers for adoption of eco-innovation. Journal of Cleaner
production. 113. pp.861-872.
Coetzee, O. and et.al., 2019. Where there is no evidence: implementing family interventions
from recommendations in the NICE guideline 11 on challenging behaviour in a South
African health service for adults with intellectual disability. BMC health services
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Cohen, E., 2017. Employee training and development. In CSR for HR (pp. 153-162). Routledge.
Crowther, D., 2018. A Social Critique of Corporate Reporting: A Semiotic Analysis of Corporate
Financial and Environmental Reporting: A Semiotic Analysis of Corporate Financial and
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Kluegel, J. R. and Smith, E.R., 2017. Beliefs about inequality: Americans' views of what is and
what ought to be. Routledge.
Noe, R. A. and et.al., 2017. Human resource management: Gaining a competitive advantage.
New York, NY: McGraw-Hill Education.
Rauter, R., Jonker, J. and Baumgartner, R. J., 2017. Going one's own way: drivers in developing
business models for sustainability. Journal of Cleaner Production. 140. pp.144-154.
Schaltegger, S. and Burritt, R., 2017. Contemporary environmental accounting: issues, concepts
and practice. Routledge.
Sekaran, U. and Bougie, R., 2016. Research methods for business: A skill building approach.
John Wiley & Sons.
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Tulung, J. E., 2017. Resource Availability and Firm’s International Strategy as Key
Determinants Of Entry Mode Choice. Jurnal Aplikasi Manajemen, 15(1), pp.160-168.
Ulrich, D. and Dulebohn, J.H., 2015. Are we there yet? What's next for HR?. Human Resource
Management Review. 25(2). pp.188-204.
Wiendels, S. L., 2019. Adolescents with FASD: Education-Based Strategies for Social Skills
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Online
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