BeeNZ Functional Strategy: BSNS 7340 Organisational Strategies Report

This report provides an analysis of BeeNZ's functional strategy, focusing on the marketing, production, and financial aspects of the company. The marketing approach emphasizes identifying and satisfying consumer needs, particularly in the context of BeeNZ's high-end Manuka honey products, sold as an 'anti-bacterial agent' and health food. The production strategy highlights BeeNZ's unique position in managing the entire honey production process, from hives to packed bottles, utilizing the latest technology. The financial strategy underscores the importance of the finance department in managing spending, recording receipts, and providing financial data for decision-making. The report also delves into BeeNZ's strategic planning process, including consultations, objective setting, environmental analysis, and control metrics. The company's customer intimacy enterprise model, membership in the New Zealand UMF Association, and adaptation to free trade opportunities are also discussed. The analysis concludes by considering the challenges faced by the board of directors in implementing recommendations and the use of knowledge in functional strategic planning for personal career development.

Running head: FUNCTIONAL STRATEGY OF BEENZ 1
Functional Strategy of BeeNZ
Student’s Name
Institutional Affiliation

FUNCTIONAL STRATEGY OF BEENZ 2
Executive Summary
Functional strategy acts as an operational management area that focus on particular departments within a
firm such as marketing, finance, human resource, and marketing. Marketing approach identifies and
satisfies the consumer’s needs, which is an essential part of the functional strategy. Alternatively, the
production approach is vital as it is responsible for item development that satisfies consumers to make a
profit. In addition, the functional strategic plan prioritizes on the latest technology BeeNZ uses in the
harvesting, production, and processing of honey, which is a major operation for the company as it
invested a huge sum of money for the same.

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Table of Contents
Importance of Functional Strategy……………………………….………………………....4
Essence of the Functional Approach in Marketing Strategy…………………….………....5
Essence of the Functional Approach in Production Strategy………………………….…...6
Essence of the Functional Approach in Financial Strategy………………….……………..7
Functional Strategic Plan in the Production of BeeNZ…………………………………….7
Functional Strategic Plan Preparation of BeeNZ…………………………………………..8
Strategic Planning Start-up………………………………………………………...8
Preparing the Objective of BeeNZ…………………………………………………9
Conducting Environmental Analysis of BeeNZ………………………………...…10
Control and Evaluation Metrics in Implementing the Functional Plan……………………10
Challenges the Board of Directors Face in Implementing Recommendations……..……..12
Use of Knowledge in the Functional Strategic Planning in Personal Career…………......13
Conclusion………………………………………………………………………….…..…14
References…………………………………………………………………………….......15

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Functional Strategy of BeeNZ
Functional strategy acts as an operational management area that prioritizes on specific
disciplines, or departments within an organization such as marketing, finance, human resource, and
marketing. In spite of this fact, the strategy acts as a plan of action in strengthening an organization’s
functionality and resources, and its coordination capabilities that create core competencies. Thus, the
strategic objective of each function is to develop the core competence, which provides the company with
a competitive advantage. Alternatively, the strategy helps in achieving business and corporate unit goals
and strategy by maximizing resource productivity. Therefore, the strategy’s success mainly depends on
the functional level that checks the reality of business and organizational level strategies, and brings the
required results. In addition, the approach demonstrates how operational managers may proceed to attain
the set objectives.
The core competencies of the functional strategy focus on two significant areas: Firstly, the
capability of the firm to execute particular operational duties more efficiently and lower levy compared
to rivals “low-cost advantage.” Secondly, the capacity to perform appropriate operational
responsibilities in a manner that differentiates the services and products of the organization from those
of its rivals “differentiation advantage.” Notably, low-cost merit may be attained by minimizing the
production costs, which enables the firm to reduce its prices in connection with those quoted by rivals
(Gutterman, n.d.). In contrast, the differentiation advantage which is valued by consumers enables the
firm to elevate the profit margin on its items as it can charge and collect a higher price from consumers.
Unfortunately, it is challenging to differentiate items and minimize costs simultaneously, and functional
prioritizes must be guided by business-level strategies in promoting and positioning particular items.
Importance of Functional Strategy

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The functional strategy utilizes the market, production and financial approaches of a company to analyze
its respective departments, which affect its operations. The importance of the approaches are presented
as follows;
Essence of the Functional Approach in Marketing Strategy
Marketing focuses on identifying and satisfying the consumer’s needs, which is an essential part
of the functional strategy. Thus, the strategy consists of an integrated, but externally prioritized set of
decisions regarding how a firm address its buyers in the context of the competitive environment (Claver-
Cortés, Pertusa-Ortega, and Molina-Azorín, 2012). Hence, strategic marketing takes a comprehensive
portfolio of the organization’s markets, and deals with the portfolio that achieves the objectives of the
company (Bendeković, Simonić, and Naletina, 2014). Therefore, the marketing strategy may consist of a
long-term plan which focuses on appropriate resources allocated in the marketing department, and how
these resources are used to take advantage of chances that are expected to occur in future (Onwuegbuzie
and Agwu, 2017).
The BeeNZ Manuka sells its honey products at top end prices of the market. It is marketed as an
‘anti-bacterial agent” and health food. The prices of the company range from 12 dollars to 148 dollars,
while the retail prices range depends on the rating of products, and the quantity purchased (Llyod,
2017). Due to the big difference between retail and bulk prices of BeeNZ Manuka honey, the enormous
profits are made by processors of the beekeeping operation, and selling the honey products in New
Zealand and international markets.
The adoption of a consumer intimacy business enables BeeNZ’s in making flexible and
differentiated value propositions by ensuring they align with the organization’s target of international
consumer requirements and needs. The strategy needs close purchaser relationships that can give precise

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consumer and global market information. This enables the enterprise to seek new customers from both
local and international markets (BeeNZ, 2018). Importantly, the majority of BeeNZ’s customers are
based in Asia, which made the firm to learn and adopt new negotiation skills. Through this strategy, the
organization gains an understanding of marketing needs without incurring travel costs, which helps it
create solid relationships with customers.
BeeNZ also utilizes another marketing strategy that involves independent agents, distributors,
and wholesalers. Thus, by having strong ties with these international distributors offers BeeNZ with a
better understanding of the market. Notably, the Manuka is one of the most sought after item with
supplying struggling to meet demand. Thus, it is vital that BeeNZ’s distributors have a strong consumer
base from the mid to high-end income brackets, which can indicate strong sales and product knowledge.
Essence of the Functional Approach in Production Strategy
The production department is crucial as it is responsible for product creation that satisfies
consumers to make a profit (Jonsson, 2017). The operations and supervision of the functional
management area rely on the type of products the business deals in (Chang, 2016). Thus, the strategy
acts as a reliable pattern for decision making in the practical operations connected to the company’s
business strategy (Cant, Wiid, and Kallier, 2015). Alternatively, the approach serves as a device for
effective utilization of operation assets, and a competitive tool for attaining the organization’s business,
and corporate objectives. Onwuegbuzie and Agwu (2017, p.340) assert, “The definition distinctively
recognizes two unique properties of production strategy content; decisions that determine the
capabilities of the production system, and the existence of specific production objectives.”
The hive numbers and honey production by Beehive have progressively growing to capture the
Manuka opportunity. Annually, the number of hives grow at ten percent. BeeNZ operates with nature

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and the environment to bring its consumers the best quality of New Zealand honey. Importantly, BeeNZ
is unique as it manages the whole production process of honey; from the hives to packed bottles. This
means that BeeNZ is the beekeeper, extractor, processor, packer, and exporter. The organization
operates at least 1200 hives that are used for pollination, venom, and honey collection. Moreover, the
production strategy used by BeeNZ enables it to serve only in a high-spec honey processing, packing,
and labeling using the latest technology.
Essence of the Functional Approach in Financial Strategy
Finance occasionally consists of monetary terms. Thus, the finance department operates the
company’s spending and recording receipts, and obtains financial data from various business units in the
organization (Salazar, Soto, and Espinosa, 2012). Notably, the majority of entrepreneurs consider the
finance department as a vital function in any business. Additionally, finance staff are responsible for any
money spent or earned such that the higher level managers may always understand precisely how much
loss or profit is made by every business section (Onwuegbuzie and Agwu, 2017). Also, the finance staff
elaborates how much capital is presently held by the enterprise. This enables the organization to made
quick and precise decisions based on actual information (Alamin and Bakhit, 2016).
Functional Strategic Plan in the Production of BeeNZ
The operational strategic plan implemented by BeeNZ tends to focus on various areas as the
company is one of the few that manages the honey harvesting from packed bottles. Thus, the functional
strategic plan prioritizes on viewing the apiaries, extraction, processing, and exportation of BeeNZ
honey. Notably, the company is a member of the “New Zealand UMF Association,” and the “UMFTM
Honey Association” is an independent sector that was created to verify authentic and genuine Manuka
honey. This makes UMFTM the quality trademark that customers around the globe trust. Due to rising

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interests in the new international clientele, BeeNZ had to adopt free trade chances, and open new export
markets for its honey.
Most of the honey produced by BeeNZ is exported, although the demand is usually higher than
the supply. Thus, the latter adopted a customer intimacy enterprise model, which ensures the business
focuses on making differentiated and flexible value propositions that align with the need of customers.
Also, the company’s success is attributed to its effective functional strategic plan that offers the latest
processing and packing technology. Recently, BeeNZ noted the need for enterprise goals and primary
metric, which enable the brand to become an identifiable and dependable brand within its domestic and
international markets.
Functional Strategic Plan Preparation of BeeNZ
Strategic Planning Start-Up
During the preparation of an operational strategic plan, BeeNZ top official needs to conduct a
consultation with the board and staff members. This would enable the latter to prepare and circulate an
overview that outlines the steps and benefits of the strategic plan. Importantly, for the strategic plan to
proceed accordingly, there must be approval from the main board members of BeeNZ. Alternatively, the
board should outline the necessary time frame for the strategic planning procedure and associated
follow-up activities (Denzel, n.d.). In addition, BeeNZ may need to create a mini-work plan and budget
for the strategic plan, which may include the cost of the venue, fees for facilitators, and dissemination
meetings.
During the preparation, BeeNZ need to establish a “preparatory working group.” The group may
need to gather background information such as demographic data, “National Demographic and Health
Survey” (DHS) reports, and government policies governing beehive harvesting and processing of

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BeeNZ. Moreover, the organization may focus on group discussions, and its financial budget and
statements. Additionally, BeeNZ may ask senior managers at all levels to finalize a self-assessment
form. After the evaluation, the former conducts a meeting to discuss results filled out in the forms.
Conversely, BeeNZ may assist its “preparatory working group” in developing a background information
package, and select a facilitator who contributes inputs to the BeeNZ agenda.
To set the functional strategic plan in motion, the workshop should be presented such that the
relevant stakeholders at BeeNZ such as UMF, and HoneyVet are included. The invited participants may
outline their expected outcomes of the workshop, and list norms that govern the stakeholders’
interactions. The main purpose of the plan is to develop a conducive climate that unites all participants
in outlining prospects and problem-solving for the future.
Preparing the Objective of BeeNZ
The planning team of BeeNZ may begin the functional strategic process. Importantly, the
facilitator that was selected assists in finalizing the workshop agenda, procedures, and objectives.
Consequently, BeeNZ is a family operated business, which means that the family of David and Julie
undertakes the decisions regarding the plan (HoneyCity.hk, n.d.). In contrast, the norms and objectives
of the workshop include adopting the latest technology which is an importance resource in honey
harvesting, processing, and packaging. In spite of this fact, the company strategies on customer
requirements, which may boost its global market. This will enable BeeNZ to understand the market
requirements without incurring travel costs. These functional goals increase efficiency, productivity, and
profitability of BeeNZ.
When determining the objective of the functional strategic plan, the BeeNZ should present a
worksheet that assists participants in evaluating their shared values, and outlines the purpose statement

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for the company. Notably, the majority of the objectives of the firm are general as it may serve the
company for a while (Denzel. n.d.). Thus, an organization such as BeeNZ rarely change their missions
drastically. Occasionally, changes in initiatives are always in line with the goals of the company.
Therefore, BeeNZ understands the need to provide and maintain its quality Manuka honey production,
and adopting new strategies that may increase its production. For instance, the company identified that
financial, customer, and process metrics as essential facts that determine its local and international
markets. These KPIs help the firm to retain its robust and reliable supply chain, while increasing profits
and creating new global trade.
Conducting a Resource Analysis of BeeNZ
BeeNZ may need to analyze its external and internal resources that may affect its honey
production. These may include economic, political, technological, and social factors (external), and
resources, performance, and processes (internal). BeeNZ (2018) suggests that in 2015 the company
invested 3.8 million dollars in building new food-grade processing and packing facility, warehouse, and
storage facilities. The former further spent 1.2 million dollars in building packing and processing
equipment. Thus, the company relies on the latest technology as its main resource in producing the best
yield of honey starting from harvesting to processing. Another resource for BeeNZ is the Manuka tree
that helps in delivering the best honey quality.
Control and Evaluation Metrics in Implementing the Functional Plan
“Monitoring and Evaluation” (M&E) acts as a management tool for enhancing the current, and
future planning of an organization (CPD Unit, 2016). The structure of M&E should focus on the
programs of BeeNZ throughout the project. Notably, the use of one overall system in collecting,
analyzing, and applying M&E data is more efficient than utilizing numerous parallel systems to the

FUNCTIONAL STRATEGY OF BEENZ 11
various departments of BeeNZ. Conversely, the overall strategy is more cost-effective, and enhances the
consistency and accuracy of information. To support efforts in creating a better M&E system for
BeeNZ, the framework of the organization should prioritize on performance indicators.
The monitoring of the latest technology used in honey harvesting and production at BeeNZ may
be done periodically (medium and short-term assessments). Alternatively, the function of the approach
is to oversee if the adopted technology is assisting the company in achieving the desired outcomes.
These outcomes may include improving efficiency, productivity, and profitability of BeeNZ, which may
support the company in knowing if reprogramming is needed or not. Also, the outcomes determine the
value for money invested, and determine the future of the technology adopted by the company (The
GlobalFund, 2011). Therefore, the focus of the M&E is to assess the inputs, outcomes, work plans, and
processes, which impact on the efficiency of honey production at BeeNZ.
For the program monitoring of the BeeNZ’s functional plan, indicators need to align with
identified processes, inputs, and outcomes, which generally should correspond to the particular

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objectives. One approach used in indicator development is to consider each HR functional areas such as
HR management, and honey productivity. In addition, each main phase of the conceptual technique may
be done depending on the medium and short term frequency. This facilitates the exhaustive and
continuous assessment of the indicators. Unfortunately, including many indicators to address one
functional area may cause a cluttering risk in the plan. This may lead to confusing when adopting the
new production and harvesting technology, and also it may be very costly. For instance, BeeNZ invested
3.8 million dollars in constructing new food-grade processing and packing facility, administration
blocks, and storage facility. The firm spent an additional 1.2 million dollars in building packing and
processing equipment.
When identifying the HR indicators of the functional plan, one must keep in mind two attributes
of quality indicators; validity and reliability. The validity should measure what it is purposely meant to
measure. In this case, the functional plan focused on measuring the new technologies adopted by
BeeNZ, which may influence its productivity and profitability. Moreover, evaluators should take into
account how the indicator may not be valid. Hence, there may be biases that impact the measurement
(Fort and Nicholson, 2015). For instance, workload measures are influenced by the time of day the
analysis is conducted. Contrary, reliability affects the capacity in which the indicator produces the same
outcomes by repeated measurements of similar phenomena. Notably, unreliable indicators occasionally
imprecise.
Challenges the Board of Directors Face in Implementing Recommendations
In spite of the enormous amount of capital that may be spent on adopting current technology to
minimize extra costs, the board of directors at BeeNZ may find this technique challenging especially
after the government introduced new rules for the Manuka industry. The new guidelines provided by the
Ministry for Primary industries focus on both local and international Manuka honey. Additionally, the

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latter introduced a scientific definition for the Manuka honey of New Zealand. This requires the
products to be independently tested and attain five attributes before it qualifies as Manuka honey (RNZ,
2018). This may be labor, time, and money consuming. Notably, adopting the current technology was to
increase efficiency, productivity, and profitability of BeeNZ. Unfortunately, the board of directors may
find current technology a waste of resources as the company may still experience delays after the
introduction of such regulations. Contrary, BeeNZ’s board of directors are advised to focus on
delivering the Manuka honey on the various Ministry checkpoints on time to avoid any further delay of
the products. Fortunately, the 10 cents per kilogram of honey sold is an advantage as BeeNZ board of
directors are confident of their standards after passing the Ministry’s test.
Another challenge that the board of directors at BeeNZ may face is the lack of accountability
from the various departments. Importantly, BeeNZ is a family company owned by David and Julie,
which means that significant decisions often rely on the family leaving little control by the board on
company operation. Thus, the current model of the company’s governance positions the board in
between sponsors and the management. Therefore, BeeNZ’s board of directors may find it challenging
implementing the current technology proposed as some may not be on board regarding the technology
offered as most are not included in decision making. Fortunately, BeeNZ may be advised to add more
board directors in the decisions that affect the operation of the company. This will ensure that the
proposed strategies are employed efficiently with minimal resistance.
Use of Knowledge in the Functional Strategic Planning in Personal Career
The knowledge acquired from the functional strategy enables an individual to be analytical while
evaluating their skills. Hence, a person can critically and logically think about their working
environment, and how they can effectively improve their performance in the surrounding. Also, the
functional strategic plan may use technology in improving the performance of the firm (Doyle, 2019).

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The technology used in developing personal skills is vital in boosting their own performance.
Conversely, the individual may acquire problem solving skills that will assist in advancing their career.
This can be achieved when a person is stress tolerant, creative, and brainstorms frequently. Moreover,
strategic plans involve regular decision making, which assists the company in attaining its goals and
objectives. Thus, a person can examine the necessary information available, and make confident
decisions regarding the data.
The functional strategic plan assist a company to analyze its stakeholders and consumers (Pistol,
2010). Thus, an individual can study and evaluate his or her customer base, while looking out for the
potential stakeholders who may boost their business. In addition, the strategic plan enables a skilled
individual to always prioritize on the happiness of his or her stakeholders and consumers. Alternatively,
the functional strategic plan assist the firm in analysis its competitors, and the advantage they may have
against it. Thus, the person can identify the potential or existing competitors who may be doing a similar
business. This will enable the former to understand the present niches available in the business field he
or she is doing.
Conclusion
The practical strategy acts as a plan of action in strengthening a firm’s functionality and
resources, and its coordination capabilities that create core competencies. Consequently, strategic
marketing takes the overall portfolio of a firm’s markets, and deals with the portfolio that attains the
objectives of the company. Hence, the functional strategic plan implemented by BeeNZ tends to focus
on various areas as the company is one of the few that manages the honey harvesting from packed
bottles. The functional approach uses the strategic marketing to take a comprehensive portfolio of the
organization’s markets, and deals with the portfolio that attains the objectives of the company. In
addition, the functional strategy consists of a long-term plan, which focuses on suitable resources

FUNCTIONAL STRATEGY OF BEENZ 15
allocated in the marketing department, and how these resources are used to take advantage of chances
that are expected to occur in future.
Alternatively, the adoption of a customer intimacy enterprise allows BeeNZ’s in making flexible
and differentiated value propositions by ensuring they align with the organization’s target of
international consumer requirements and needs. In the production strategy, functional technique acts as a
reliable pattern for decision making in the practical operations connected to the company’s business
strategy. Therefore, the production strategy utilized by BeeNZ allows it focus only in a high-spec honey
processing, packing, and labeling using the latest technology.

FUNCTIONAL STRATEGY OF BEENZ 16
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