Comprehensive Strategic Management Analysis of Bairaha Plc

This report provides a strategic management analysis of Bairaha Plc, a leading chicken processor in Sri Lanka. It assesses the company's internal and external capabilities through PESTLE and Porter's Five Forces analyses, evaluating the macro-environmental factors influencing its market position. The report outlines Bairaha's strategic direction, company objectives, and SWOT analysis to identify its competitive advantages and strategic capabilities. It also explores external growth strategies using the Ansoff Matrix, focusing on market penetration, product development, market development, and diversification. Ultimately, the analysis aims to identify needs for process improvements and strategic changes within the organization.

Running head: STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
Strategic Management Analysis of Bairaha
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1STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
Executive summary
The report aims at evaluating the market position of the Bairaha Plc through an assessment of the
internal and external capabilities and competencies. The report will be enumerating the
background, objectives and strategic direction of the organization, which is dependent on the
evaluation of the macro environmental factors encountered by Bairaha Plc. The purpose of
undertaking the report is to identify the needs of the organization in forging changes in the
processes.

2STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
Table of Contents
1. Company and SBU background statement......................................................................3
1.1. Company and SBU Overview..................................................................................3
1.2. Macro Environment Analysis of Bairaha.................................................................3
2. Evaluation of strategic position of the company.............................................................6
3. Company objectives.........................................................................................................8
4. Strategic direction of the company..................................................................................9
References..........................................................................................................................12

3STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
1. Company and SBU background statement
1.1. Company and SBU Overview
Bairaha Plc is positioned as a pioneer chicken processor in Sri Lanka and is famous for
offering quality poultry food products in the nation. Moreover, the company is also renowned for
developing innovative products for convenience of its consumers that ensures food safety along
with offering nutritional value (Bairaha.com. 2018).
1.2. Macro Environment Analysis of Bairaha
PESTLE Analysis
Political The political factor that affects business of Bairaha
in Sri Lanka includes tax rates and economic
condition of the nation. Tax was proposed from the
local council of the nation but the government
refused such initiative to avoid price increase.
Economic Labor cost is an important economic factor for
instance, annual wage rate increased by 4% that
resulted in increasing cost of Bairaha millions of
pounds in Sri Lanka (Ndungu 2014).
Social Consumers in Sri Lanka prefer one-stop shopping
and they are observed to be highly health
conscious. Bairaha must consider addressing
organic food demand.
Technological Sri Lanka retail markets are using RFID technology
for increasing consumer’s in-store experience.

4STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
Bairaha will also implement such technology that
can automatically count stock and remove it after
sales.
Legal Bairaha faced legal action for accounting fraud and
misleading investors and paid GBP 12 million to
address it (Moutinho and Phillips 2018). It must
conduct its operation in Sri Lanka complying with
strict guidelines of “Food Retailing Commission”.
Environmental Bairaha is facing increased pressure from Sri Lanka
government agencies to address environmental
concerns. Focused on same, the company will use
fuel-saving approaches along with using recycled
plastic bags (Dockalikova and Klozikova 2014).
Porter’s Five Forces Analysis
Figure 1: Porter’s Five Forces Analysis

5STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
(Source: E. Dobbs 2014)
Threat of substitutes This threat in the Sri Lanka poultry market is low
for food items. The poultry company is opening
express stores in local towns that will offer high
quality products at affordable process generating
hurdle for such substitute’s entry.
Threat of New Entrants This threat within the Sri Lanka retail industry is
low. It needs increased capital investments for
maintaining its competitive position along with
establishing a brand name (Jarzabkowski and
Kaplan 2015). As there are major Poultry
companies available, it is difficult for the new
entrants to produce something at drastically low
price and exceptional quality to maintain their
market value.
Industry Rivalry The intensity of competitive rivalry in this industry
is high. The slow market growth indicates that
increasing mark shares of the poultry chain from
competitors have increased market rivalry that is
threatening the company’s leadership position.
Bargaining power of Suppliers Suppliers bargaining power is low and it has also
been noted that suppliers are included towards
established food retailers along with losing
business contracts with the renowned supermarkets
(Dälken 2014).

6STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
Bargaining Power of Consumers This threat is high as switching cost is very low and
buyers can easily shift from one brand to another. It
has also been observed that consumers are attracted
towards lowest possible price from the suppliers.
2. Evaluation of strategic position of the company
The strategic position of strategic business unit of Bairaha in Sri Lanka is analyzed
through carrying out SWOT analysis. This evaluation will facilitate in analyzing the company’s
competitive advantage among its direct competitors along with attaining view of its strategic
capabilities (Blockeel et al. 2016).
Strengths
 Bairaha Sri Lanka has attained several
rewards for its retail excellence,
consumer service along with overall
shopping experience.
 The company has strong cash
researches and a broad variety of
portfolio within its offerings has
offered the company with effective
financial position in all types of
economic cycles
 Bairaha has effective brand equity with
increased global recognition along with
Weaknesses
 Certain subsidiaries of Bairaha Sri
Lanka those are not operating as they
are highly vulnerable to some external
factors. For instance, profit levels for
Bairaha were impacted because of
credit crisis (Phadermrod, Crowder and
Wills 2019).
 Competitive pressures has resulted in
price wars in Sri Lanka SBU that as
decreased profit margin of this retailer
 Consumers might not be purchasing as
many items because of having low

7STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
respect for what it stands for such as
quality, service and selection
(Phadermrod, Crowder and Wills 2019)
 Bairaha has advanced its technological
use in its operations through generating
increased cost efficiencies along with
improved consumer experience
 Bairaha has several store formats that
is appealing for cultural and local needs
that facilitates the supermarket in
offering more personalized experience.
disposable income and the retailers
have not adjusted its selection and
inventory resulting in high cost of
inventory
Opportunities
 Bairaha Sri Lanka has several
opportunities in private level market
 Strategic alliances with other brands for
business expansion is possible for
Bairaha in attracting more consumer
base (Blockeel et al. 2016)
 To attain competitive advantages,
Bairaha Sri Lanka might tap the
opportunity of increasing its online
presence along with introducing home
deliver services in few areas.
Threats
 Economic recessions along with credit
crunch is deemed to impact market
share and profitability of Bairaha in Sri
Lanka that can decrease amount of
consumer purchases
 Increased raw material costs are also
threatening profitability of Bairaha and
resulting it to expand its supplier
network for attaining better raw
material pricing
 Increased stakeholder pressure
associated with environment along with

8STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
 Emerging markets also hold an
increased opportunity for some retail
formats that is already offered by
Bairaha in Sri Lanka that can offer
increased access to the western goods
demanded by these regions
social responsibility has adversely
affected cost basis of Bairaha Sri
Lanka(Blockeel et al. 2016).
3. Company objectives
Quantitative and qualitative SMART objectives are set by Bairaha for attaining
competitive advantage in its strategic business unit of Sri Lanka. This will facilitate the company
in understanding the responsibilities and fit of its business in Sri Lanka market. SMART
objectives of Bairaha for Sri Lanka business unit are explained below:
 Specific- To maintain its leading position in the poultry industry along with offering
exceptional quality services and products at low cost so that they are cheaper than its
competitors (Chatterjee, Goharshady and Velner 2018).
 Measurable- To maximize sales by 6% each year by cutting prices and introducing store
deals that can lead to increase in profit by 8% a year
 Achievable- To decrease prices for its products by 2% than its competitors through
making shopping cheaper for average households and through discount deals
 Realistic- To introduce healthy product ranges that can be done through increasing their
product portfolio which can attract more consumers (Sharma and Saini 2015)

9STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
 Timely- To develop an efficient online shopping site in Sri Lanka that can attract more
consumers, particularly the ones those are unable to shop in stores. This can maximize
company’s profit by 10% in a year.
4. Strategic direction of the company
Bairaha Sri Lanka can implement external growth strategies that can serve as future
strategy direction for the company. For analyzing such strategies in supporting its competitive
position, ANSOFF matrix is employed.
Figure 2: Ansoff Matrix of Bairaha Sri Lanka
(Source: Ansoff et al. 2019)
 Market Penetration: Bairaha Sri Lanka is focused on long term growth strategy based
on four major aspects. The business expansion in several regions of Sri Lanka is

10STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
supported by their growth purpose in the region. The market penetration strategy of the
company is focused on expansion of international retail industry. Strong with food
services along with outstanding consumer services, Bairaha Sri Lanka employs
competitive pricing advertising and strategy (Kuimov 2017).
 Product Development: The risks of introducing new service or products in the existing
Sri Lanka market are numerous. For instance, for attaining increased market share in this
market, the company focuses on product development strategy based on which the
company attain competitive advantage. Bairaha Sri Lanka introduces certain other
services aside from food to their existing market. In the company’s market penetration
strategy several strategies such as pricing, sales promotions and advertising are
considered significantly.
 Market Development: The intention of Bairaha Sri Lanka is to expand beyond its
current business environment. In attaining such objective, the company is focused on
developing new distribution channels, product differentiation and certain other strategies
with having purpose in attracting consumers to develop a new market (Moutinho and
Phillips 2018). Moreover, in case of Bairaha Sri Lanka, producers are majorly the citizens
of the nation as they understand the needs of the market. In order to attain effective
market development a single unique strategy that developed new market is targeted by
Bairaha in Sri Lanka for existing services and products.
 Diversification: Diversification strategy is followed by Bairaha Sri Lanka in attaining
competitive advantage in this market. This strategy of the supermarket is focused on
investing within new markets through using its new services or products. Moreover, the
company must also consider realizing the risks in implementing this strategy in Sri Lanka

11STRATEGIC MANAGEMENT ANALYSIS OF BAIRAHA
market. To attain better diversification use of intensive Research and Development
efforts is observed in case of Bairaha in this strategy business unit.
From carrying out Ansoff Matrix analysis it has been observed that retaining industry in
Sri Lanka is observing over capacity and innovative services along with that products serve as
major competitive advantage for the company (Ansoff et al. 2019). For this reason, innovation
serves as the major driver for Bairaha products development in Sri Lanka. For instance, the
company can develop portfolio of varied formats of store in this SBU these are designed to offer
completely distinct shopping experience. The market penetration strategy of the company is
focused on expansion of international retail industry. Strong food services along with
outstanding consumer services, Bairaha Sri Lanka employ competitive pricing advertising and
strategy. While most of the poultry outlets are hypermarkets in Eastern Europe, the company can
also develop distinct store types within the Sri Lanka strategic business unit.