Adnams Case Study: Challenges, Strategy, and Growth

This case study examines Adnams, a UK-based brewing and distilling company, delving into its business challenges, internal aspects, and strategic growth opportunities. It highlights volatile consumer behavior, competition from microbreweries, and changing market dynamics as key challenges. The analysis explores internal business aspects such as location, employee relations, and work culture, emphasizing Adnams' commitment to its people and sustainable practices. Strategic decisions for future growth are evaluated using the Ansoff matrix, considering market penetration, market development, product development, and diversification strategies. The study also outlines steps for development, including focusing on strengths, addressing weaknesses, identifying potential customers, and embracing innovation. The research emphasizes the importance of market analysis, investment in talent, and utilizing social media to promote products. The case study concludes by summarizing the key findings and the application of strategic tools for decision-making.

ADNAMS CASE STUDY

Table of Contents
INTRODUCTION...........................................................................................................................3
1. Challenges faced by Adnams..................................................................................................3
2. Important aspect of internal business of Adnams...................................................................3
3.Strategic decision and direction in order to get future growth ...............................................5
4. Steps for development.............................................................................................................6
CONCLUSION................................................................................................................................7

INTRODUCTION
The study is based on the case study of Adnam, which is involved in business of brewing
and distilling. The company is located in Southwold in Suffolk, UK. Around 435 people are
working in the company and 1500 shareholders. The case study highlights the key challenges
which Adnams is facing and important aspects of the internal business such as employee
relationship, work culture etc. The study also try to explains what strategic options company can
take to attain for future growth. In order to discuss the strategic options Ansoff matrix have been
used.
1. Challenges faced by Adnams
 The consumers in UK has the volatile behaviour towards the alcohol and drinking habits.
It is not easy to understand the market of UK. As there are many competitors in the
market which also affects the market movement. Similarly various governmental factors
also causes up and down movement in the market. In the year 2007 there was a sudden
decline in the sales of wet led pubs, in which high amount of revenue is from alcohol and
drinks.
 Another challenge which the company face is rise in micro breweries in 2014 which were
registered under the small breweries relief scheme, the breweries under which are
allowed to pay low income tax. As the Adnams is the mid sized brewer the company is
not eligible for the relief.
 One of the challenge which the company face is increase of consumption of alcohol at
home which causes decrease in revenue of the Adnams.
 Supermarket in the country is now acquiring a huge position in the wine, spirits and beer
sales which is causing negative impact on the Adnams sales.
 The awareness regarding health issues and alcohol misuse is widely spread which
decreases the sale of alcohol in the market.
2. Important aspect of internal business of Adnams
Location is one of the most important aspect for the company which the company should
consider. Location means to decide that where the product and services should be produced and
served. The main internal aspect of the company is that it is located in the heart of southwold,
The location of the company is close to the beach and is facing the sea with rows of brictorian it

is one of the advantage for the company , the Southwold is also known as the seaside town which
is rich in wildlife. The landscape and the flavour of Adnams product are much linked with each
other which provide a benefit to the company to automatically attract customers towards it.
The second most important aspect of the company is its people(The internal environment, 2019).
For every organisation it is necessary to have a good work culture, in order to do so the
organisation should take care of its people, customers, location and philosophy of the company.
The organisation should provide them a friendly work environment in order to achieve
organisational goal. The Adnams treat its people with care.
The people who are associated with the Adnams are proud to be their member. The
company ensures to promote their employees so that they feel more proud and remain loyal to
the Adnams. For example a cleaner who started to work with Adnams in 1990 has got promoted
in 1994 as a transport clerk and in 1996 as a transport manager. She was again promoted in 2000
as a head of logistics. She feel progress in the organisation and was proud to be a member of the
Adnams. There is low staff turnover in Adnams. Karen believes that good communication is the
key to organisational success. The company ensures to follow a good philosophy which is in
benefit of the employees as well as organisation. The bottles which is used by the company are
lightest and are eco friendly.
The company top management are the key to achieve success of the organisation(Dunne
and et.al., 2016.). The company performed a marketing campaign in year 2003 “ Beer from the
coast” they use the local paint artist for conducting the campaign. The company ensures to
introduce change in the work environment but the people in the organisation find it difficult to
accept change. The company believes that the best way to apply change in the organisation is to
make feel the people importance of change and should make them realize how important their
contribution is to the company.
The company also respects the idea which is presented to them by the tenants thus helps
to make healthy relationship with the peoples.
The company maintains the good relation with its customers. And also do the fair deals
with the suppliers. The company brings the customers and growers in contact with each other
This was the Simon idea for the wine business. The company also assures sustainability in its
process. To the company sustainability is not only limited to being green. In year 1981 Adnams

recycled the brewery waste by using the process which is environmentally efficient. In order to
reduce carbon emission the company opened anaerobic digester plant in year 2010.
The company is most modern and water efficient brewer in the UK. The company
recycled it waste heat which is generated from the process of brewing. With the help of latest
technology the company has efficiently recycled the waste heat. Earlier in order to produce 1 pint
of beer about 8 pint of water is needed but with the help of technology the company is able to
reduce use of water in the process of making beer. Now about 3.2 pint is enough to make 1 pint
of beer. The company has increased its production capacity with the help of new fermentation
tanks. The company make the efficient use of natural resources and also try to provide
environmental friendly products.
The company also open a new distribution centre in year 2006. The centre is known as
greenest warehouse in UK. The warehouse does not need conditioning and heating system in
order to keep the temperature of the room appropriate.
3.Strategic decision and direction in order to get future growth
In order to apply strategic decision and direction in order to achieve growth in future Ansoff
matrix is used
Market penetration :
The company should try to increase its market share. The company should try to sell the
existing products in the existing market it can be done with the help of applying combination of
various marketing strategies such as advertising, competitive pricing strategies and sales
promotion(Bang, Joshi, and Singh, 2016). The Adnams should try to increase its customer
base. The company should restructure its current market.
Market development :
The Adnams can also expand its business by selling the existing products in the new
market with new pricing and marketing strategies. It will help the company to increase its
customer base. It will help in increase of revenue for the company. The company can use
different pricing policy to attract new customers.
Product development :
Adnams should try to introduce new product in the current market. The company should
try to innovate new products and services by keeping in mind the changing needs of the
market(Shaorong, 2016). The company should develop new products by analysing the

opportunities in the current market. This will help the company to expand its business in the
related product and also in entirely different products which will help the company to capture
position in current market.
Diversification :
Adnams should try to capture new market by proper market analysis. It will help in
expanding the business overseas. The company should introduce new product in the new market.
As the company is facing huge competition in the market therefore the Adnams should expand
its business as it will help them to gain competitive advantage in the market. The company will
also get access to new technologies with the help of which the company can introduce new
products in the new market(Ansoff Matrix, 2019). As it will help the company to reach to the
large number of customers. It will also help the company to access greater talent. If the company
expand its business overseas it will help in improving the image of the brand and it will also help
in increasing brand awareness.
4. Steps for development
It is challenging for the companies to establish long term place in the market. The
company has to face challenges daily. Some steps which Adnams can do in order to achieve
growth in future are :
 The first step which the company should do for its development is focusing on its own
strength. The company should try to identify its strength and should take proper action to
hold their strength. Secondly company should try to focus on its weakness which will
help company to plan their growth strategies.
 The Adnams should identify its potential customer. The company should expand its
business and should provide or present the product to the customer according to them.
The company should apply the niche marketing strategy. It will help the customer to
reduce its cost on marketing and target the particular customer group.
 In order to see the impact of change the company should measure the changes they are
making in the organisation. In order to measure change the company should be able to
decide which factor is affecting the growth of business.
 The company should keep a close eye on the competition in the market. The company
should look at the market carefully. A proper market analysis should be done which will
help the company to identify opportunities and threats in the market. The company

should invest in new talents. The Adnams should identify the market share, and also try
to tap new market in order to expand their business.
 Adnams should determine its current products and services in order to analyse its current
business strategies. Which will help the company to analyse and evaluate its current
strategies and also make necessary improvement in its current strategies.
 The company can also make the use of social media in order to promote products and
services of the company. As the company currently focuses to make partnership with
other firms and opening mobile bars which help the company to reach out their products
to the various customers instead of all these the company should move its focus on proper
utilization of media. The company can use various social media platform such as
Instagram, Facebook etc. As now a days people are more socially active thus it will help
the company to promote its products and services on the wider platform and to the large
number of audience simultaneously.
Justin Doran, Geraldine Ryan performed the research which aims at finding the factors
which act as a drivers of innovation. In order to do the research the a sample of 2181 firms is
taken. As a result it was found that only two types of eco innovation among all the nine impact
the organisation performance. The regulations and customer pressure helps in encouraging the
firm for innovation.
However the Adnams should focus on innovation and should encourage the employees of
the company to present their new innovative ideas. As in order to survive in the challenging
market the company should constantly try to develop new technologies ass well as human
resources so that company can perform differently.
CONCLUSION
The study is the discussion about the Adnams a company in UK, about the innovation
they are making, internal culture of the company and people in the company. The study helps in
identifying the various challenges which the company is facing. The study helps in identifying
the strength of the company and various challenges which the company is facing. The study give
the understanding of Ansoff matrix. Ansoff matrix helps in decision making. It is a tool which
help in determining the products and strategies which should be adopted for market growth. The

study also helps in identifying the importance of change, innovation, customer and employee
retention etc.

REFERENCES
Books and Journals
Ainin, S., and et.al., 2015. Factors influencing the use of social media by SMEs and its
performance outcomes. Industrial Management & Data Systems, 115(3). pp.570-588.
Bang, V.V., Joshi, S.L. and Singh, M.C., 2016. Marketing strategy in emerging markets: a
conceptual framework. Journal of Strategic Marketing, 24(2). pp.104-117.
Doran, J. and Ryan, G., 2016. The importance of the diverse drivers and types of environmental
innovation for firm performance. Business strategy and the environment, 25(2). pp.102-
119.
Dunne, T.C., and et.al., 2016. The impact of leadership on small business
innovativeness. Journal of Business Research, 69(11). pp.4876-4881.
Shaorong, L., 2016. Economic Analysis of the" Belt and Road" Development
Strategy. Frontiers, (5). p.6.
Online
Ansoff Matrix. 2019. [Online] <https://www.tutor2u.net/business/reference/ansoffs-matrix>
The internal environment. 2019. [Online] <https://www.cliffsnotes.com/study-guides/principles-
of-management/managerial-environments/the-internal-environment>