Organisational Strategy Report: Adnams' Challenges and Growth

This report provides a comprehensive analysis of Adnams' organisational strategy. It begins with an introduction to organisational strategy and then delves into the key challenges Adnams faces in its external environment, utilizing PESTLE analysis to examine political, economic, social, technological, environmental, and legal factors. The report then assesses the internal business situation of Adnams through a SWOT analysis, highlighting its strengths, weaknesses, opportunities, and threats. Following this, the report explores strategic options and directions for Adnams' future growth, focusing on the Ansoff matrix and strategies such as market penetration, product development, market development, and diversification. Finally, the report offers recommendations for Adnams, emphasizing the importance of product line expansion, competitive pricing, and adapting to changing consumer preferences. The analysis aims to provide insights into Adnams' strategic positioning and future prospects within the UK market.

ORGANISATIONAL
STRATEGY

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Key challenges faced by Adnams in the external environment..................................................3
Important aspect of the internal business situation of Adnams...................................................5
Strategic options and direction for Adnams for future growth...................................................6
Recommendations for the Adnams.............................................................................................7
CONCLUSION................................................................................................................................8
REFERENCE...................................................................................................................................9

INTRODUCTION
Organisational strategy is a changing long term procedure and plans which provides the
path for reaching and accomplishing the organisations objectives and goals. In every successful
business enterprise, it is very crucial to have a set of definite tools and techniques which guides
the people in order to achieve the aims. Organisation undertaken in this report is Adnams which
is UK based SME and provides products of beverages like wine, bears, etc. and also the services
of hotels and pubs (Aldea and. et. al., 2015). This report will explain the challenges faced by the
company in its macro environment. It will assess the internal business environment. It will also
emphasis on strategic options and directions for the growth of the company and
recommendations for the organisation.
MAIN BODY
Key challenges faced by Adnams in the external environment.
External environment is the macro environment of the business organisation. It consist of
all those factors which have direct or indirect impact on the operations of the company. These
factors are generally uncontrollable in nature and have strong influence on the actions. For
analysing the key challenges faced by the company, the PESTLE analyses will be conducted by
the company.
PESTLE Analyses
This analyses is one of the most important concept of marketing. It helps in analysing the
evaluating the macro environmental factors which will have a crucial impact on the organisations
performance (Cacciolatti and Lee, 2016). In the marketing, before the execution and
implementation of any strategy, it is very crucial to conduct the situational analyses.
Organisations, which are successful in observance and reacts to the changes. The following is the
PESTLE analyse of Adnams company:
 Political factors: These factors are concerned with the interference and participation of
government of the country. It describes the manner to which the government and its
policies have an impact on the organisation and also a particular industry. It involves
factors like trade, taxation, commerce, fiscal and deficit policies, etc. If the rate of
taxation on beverages increase in the country then this will have negative impact on

operation of the company because then the price of the products will also increase which
will have adverse impact on the profitability and revenue of the company.
 Economic factors: These factors are concerned with the financial stability and
profitability of the company (De Baerdemaeker and Bruggeman, 2015). It helps in
assessment of the organisations profits such that the business goals and objectives can be
attained. It includes factors like inflation, deflation, recession, exchange rates, etc. This
factor will have a favourable impact on the Adnams. For instance, in 1960, the two
families who have jointly started the business of the company have faced the issue of
selling their products during the period of consolidation in the brewing industry and but
the increasing market demand has forced the company which has selected to carry on the
in-dependency of the company and the local identity as well. Furthermore, the shares of
the company are liquid in nature.
 Social factors: These environmental factors are concerned with the areas which involves
shared belief and attitude of the population. It includes factors pertaining to the
demographics, sex, age, gender, class, behaviour, attitude, lifestyle, purchasing power,
etc. For instance, the Adnams is working closely to build and maintain relations with
customers. Furthermore, the customer tastes and preferences changes very quickly and
this will have a favourable impact on the business enterprise as they will have to work
closely to meet the changing requirements of the customers.
 Technological: It is one of the most emerging factor in present business scenario because
every organisation is involved in technological aspects in order to build their company.
This involves factors like innovation, invention, research and development, etc. For
instance, this will have positive impact on Adnams and they will work closely because
the drinking habit of the people of the UK is volatile in nature. This has a significant
positive impact on the company and they will take regular steps for making their products
available (Heffernan and. et. al., 2016). Earlier it took eight pint of water to make a bear
but with the help of latest technologies, the company is able to reduce it to 3.2 pint.
 Environmental factors: These factors are concerned with the conservation and
preservance of the environmental factors. It involves to make the best possible use of
available and scarce resources. Thus, the Adnams is one of the most modern, energy
efficient and water effective brew streams in the UK. The company is highly involved in

adopting 90 per cent of their waste heat from recyclable materials. The concept of
sustainability is very important for the Adnams and it was adopted because it build a farm
in order to recycle the brewery waste in an environment friendly manner. The farm
produced high quality beef and pork. It has also concentrated on minimising the carbon
emissions and to attain this, the company opened the new plant, namely, Adnams Bio
Energy Site (Karami, 2016).
 Legal factors: These factors are concerned with the legislations and laws which are
required to be followed by the companies. It uses different laws like environmental,
consumer, employment, licensing, franchising, etc. For instance, this will have a crucial
impact on the organisation as Admans is involved in brewing business so it requires to
grant various licences from the government in order to commence the operations. If they
do not grant licensing and fails to operate within the legal boundaries then strict action
can be taken against the company which can even lead to dissolution of the business.
Important aspect of the internal business situation of Adnams.
The internal business environment is concerned with the happenings and occurrences of
the business fluctuations within the organisation. The internal business environment of the
Adnams is very comfortable and people have the feeling of proud being the part of the company.
For proper evaluation of this, SWOT analyses is to be conducted for the company's operation.
SWOT analyses
The full form of the term Swot is strength, weakness, opportunities and threats. It is used
by the companies in order to evaluate the internal strength and weakness and external threats and
opportunities for the company (Nankervis and. et. al., 2016). This will help in analysing and
interpreting the financial performance of the company. This further helps in evaluation and
assessment of the factors like risk, competition, performance, etc. The following is the SWOT
analyses of Adnams:
Strength
 Stable business in the market of UK
with strong brand recognition.
 The culture of the Adnams has
provided an excellent customer services
which will have an impact on the
Weakness
 The demographic shift has created a
strong influence on the alcohol
business. This is because majority of
the people are shifting in the UK from
different countries and some are highly

positivity of the company's brand and
market share.
 It has attained the approval from the
health conscious consumers.
 Strong portfolio and brand image
among the market.
strict towards the consumption of the
drinks.
 The ban on drinking at the workplace
and specially during the travelling has
affected the sale of the beer (Omotayo,
2015).
Opportunity
 It has an immense opportunity to enter
into new product line of non-alcoholic
drink for those people who does not
consume alcohol (Willis and. et. al.,
2017).
 It has also a greater opportunity to
make its products and services into new
market or enhances globalisation.
Threat
 The increment in the health conscious
people have restricted the consumption
of alcohol.
 It has a strong threat from competition
with global and international brands
like Kingfisher, Tuborg, etc.
 Unpredictable increment in taxes also
creates a threat for the company.
Strategic options and direction for Adnams for future growth.
Ans off matrix
This model is very crucial for any organisation in order to develop strategic marketing
plan for the company. It is useful for the business in determining the product and market growth
strategy (Paliokaitė and Pačėsa, 2015). This instrument is used by the organisations and Adnams
will use this so that they can analyse and make plan for the future growth of organisations
products and services. This model was developed by H. Igor Ansoff and with this, many
marketers have successfully understood the risk which is associated with their business for the
future perspectives of the company. It has four strategies and they are discussed below:
 Market penetration: Under this strategy, the organisation focuses on the existing
products in the existing market. It is a less risky strategy and the motive is to maximise
the market share. Therefore, Adnams will sell their present products in the same market
of UK and in this growing and developing market, the company will be able to maintain
their market share.

 Product development: Under this strategy, the organisation concentrates on selling new
products to the existing markets. This strategy is quiet risky but if products are
successfully marketed and liked by the customer then this will help in expansion of the
business (Wang, Liu and Mingers, 2015). For this, the company that is adnams will
produce new types of drinks which are non alcoholic for health conscious people and also
flavoured alcoholic drinks for giving new taste to the habitual drinkers.
 Market development: Under this, existing products of the company are sold to the new
markets. This is quiet risky strategy because the company will market its product in
entirely new segment where it has no idea about the people preferences and does not
know what will be the response of the people. Therefore, Adnam will markets its
products to the other countries because its operations are confined to UK only.
 Diversification: Under this strategy, the organisation aims to market new products into
the entire new market. This the most risky strategy because the company will be
investing their time, efforts and money in new product which it does not have any
experience and market the product at new location where people may not be aware of the
brand. For instance, Adnams will produce non-alcoholic drink and sell to the entirely new
market.
From this, the best strategy which will be best fit for the Adnams is product development.
Under this, they will produce new products for the already existing market and if they attain
success in it, then they can also adopt market development strategy for the future growth of the
company and through globalisation they can market their products in the new locations.
Recommendations for the Adnams.
From the above analyses and interpretation, it has been recommended that being the local
company the Adnams will surely face various challenges and obstacles in its future course of
actions. It will face various problems from the competitors and leading international brands and
to meet up with those problems the company should expand its product lines and categories. It
should concentrate on serving flavoured alcoholic drinks. Apart from this, it should focus on
several products like new gift pack or combo pack for gifting which will be used for gifting
people on different occasions. For sustaining the upcoming 10 years, it is very important for the
company to keep an eye on its pricing strategies because the premium pricing strategy may
create a disruption in the products and people may prefer to purchase competitors or leading

foreign brands rather than this local brand at premium price. So it is recommended that the
company should focus on lower pricing as well because customers are price conscious and for
coming 10 years the economy will boost and prices will increase so for this, the company should
maintain moderate prices and competitive pricing strategies. To attain and sustain for coming 10
years, the company should think of expanding its businesses to the different markets and
countries specially where the consumption of alcohol is highly preferred and where the cost
production and labour remains low. For this, they should also focus on Porter five forces model
which help them in analysing that whether the chosen location will be suitable for them or not. It
should also emphasise on different promotional tools which will be able to live for coming 10
years like internet, social media, television, etc.
CONCLUSION
From the above file it has been concluded that organisational strategy is one of the most
essential part of business enterprise. It helps in pre requisite and results of the different strategies
in the context of the organisation. They are required to define the different goals and set of
disciplines in order to frame a course of actions and plans. By analysing the macro environment,
it has been interpreted that Pestle analyses is very important framework for identifying the
different factors which have impacted and created the barriers for the company. The SWOT
analyses has been conducted so that they can identify and interpret the external threats and
opportunities and internal strength and weaknesses.

REFERENCE
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