Strategic Analysis of Bellamy Company: Singapore Market Entry Report

This report provides a strategic management analysis of Bellamy Company, focusing on its entry into the Singapore market. It begins with an executive summary and introduction to strategic management. The core of the report comprises a PESTLE analysis, examining the political, economic, social, technological, legal, and environmental factors impacting Bellamy's operations. Following this, a VRIO analysis assesses the value, rarity, imitability, and organization of Bellamy's resources and capabilities. The report then offers strategic recommendations for enhancing Bellamy's business operations and concludes with a summary of findings. Key aspects include the impact of the political environment, economic conditions, social trends, technological advancements, legal regulations, and environmental considerations on Bellamy's business. The VRIO analysis evaluates Bellamy's competitive advantages, focusing on its valuable, rare, inimitable, and organizationally-supported resources. The report aims to provide insights into the company's strategic positioning and offer actionable strategies for sustainable growth in the Singapore market. The report references several academic sources to support its analysis and recommendations.

STRATEGIC MANAGEMENT
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Table of Contents
Introduction 4
PESTLE analysis 4
VRIO analysis 8
Recommendations 9
Conclusion 10
References 11
Appendix 13
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Executive summary
This present study highlights the impact of baby food products of Bellamy Company in
Singapore. In order to establish a business in Singapore, Bellamy Company has incorporated
many features and ideas for enhancing their business by increasing food products of baby milk
items. In addition to this, the current report study has also evaluated the strategic management
process for making Bellamy Company by focusing on more business operations. This report also
reflects on the PESTLE analysis and VRIO analysis in order to draw the attention of the readers
towards the external issues and its consequences made during the process of incorporation of
new systems. Finally, this report study seeks the attention towards the recommending strategies
for Bellamy Company in order to enhance their business operations more profoundly and
successfully.
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Introduction
Strategic management is a process of managing business operations successfully to reach
profound destination. The managers and other supervisors take the initiatives to implement
certain specialised technologies for the purpose of making their organisation a good one in the
market. Here, in this report it has been focused on the strategic management process of Bellamy
Company in order to specify their target market. Report also draws the attention towards the
PESTLE analysis and VRIO analysis of Bellamy Company for highlighting its factors and
technologies in the current market of Australia. Finally, this report seeks the attention towards
the strategies for recommending suitable steps for avoiding conflicts.
PESTLE analysis
Political
Bellamy Company is an inorganic food industry for infants and therefore it is necessary to look
into the standard of the location for maintaining good health of the children and infants. As
opined by Andreeva and Kianto (2016, p.1), non volatile political environment in Australia over
the past few decades, has contributed in a significant growth in the food industry of Australia
resulting 32% of total value of consumer foodservice. Bellamy thus operates in a stable political
environment, where their various business activities do not receive much hindrance in complying
with the government legislations.
However, Competition and Consumer Act, 2010 allowed ACCC in analysing prices of products
under guidance of government. Promotion of pricing, checking price rise and making
accountability of organisations for pricing policy are the different provisions of this act
(Legislation.gov.au, 2017). Federal tax incentives allow a successive growth in economy of
Australia. As a result, organisations like Bellamy that are operating in the country face much
convenience in gaining profit in its business.
The government of Australia has can formulate controls of exchange for currency protection as
stated by Reserve Bank of Australia. According to Booth (2015, p.521), Anti-money Laundering
and Counter-Terrorism Financing Act, 2006 provides financial intelligence in eliminating illegal
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financing and money laundering in the nation. This helps the organisations in the country to
operate their business activities in a corruption free environment. As per Chen and Kodono
(2014, p.429), the tax facilities such low tax income rates have successfully made this country a
profound and standard one to organise business operations.
Economical
Australia for consecutive three years is happiest nation of world among developed economies,
because of economical strength. As per Eden and Ackermann (2013, p.67), economy in Australia
portrays GDP growth rate annually of approximately 2.9% before 2009. Prevalence of such high
standard economic condition in the country have assisted Bellay to increase their profit are share
price in the stock market.
On the contrary, the nation faced an economic downfall of 0.8% in growth rate after the
international financial crisis in 2014 (Hill, Jones, and Schilling, 2014, p.52). In order to improve
and develop business organisations it is essential to make the financial growth stable, fiscal
properties strong, inflation rates and that is called the financial business framework and it is
available in Australian market (refer to appendix).
In current times it has been observed that government has invested huge facilities in order to
diversify the economic condition of Australian market for making it standard for developing
business organisations. Islam and Mamun (2017, p.4) stated that economy in Australia is
retaining a positive growth from 0.8% to 2.3% in 2015. This has affirmatively impacted on
Bellamy to increase their business in terms of profit. Food service market has faced a
considerable growth that has caused a high amount of customers to avail service of this sector.
This has acted as evidence that Australian population in no way is ready to compromise with the
culture of eating. As per latest consumer trend, most people are moving into fast food business
because of tough financial environment thus increasing business of organisations like Bellamy.
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Figure: 1 increasing price chart
(Source: Redwiretimes.com, 2017)
Social
Social life is preliminary composed of the lifestyle, trends, culture and living habits of the people
in nation. However, it has been found that the young generation people follows the western
culture and for those business organisations also follows their strategies to grab their attention
(Knott, 2015, p.1806). For the context of Bellamy Company, it has been observed that in order to
satisfy the need of the customers for adhering infant food materials in order to urge social factors
increasingly for good productivity.
However, the labour market is characterized with promotions that are based on income of the
evaluated on the basis of annual average. On the contrary, Kolios, Read and Ioannou (2016,
p.63) opined that the young generation is mainly focussing on the take away orders driven by the
culture and trends of the society. This has caused effectiveness in the business of Bellamy as
they have significantly restricted their business in the production of baby food and competition is
less in this sector.
Technological
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Proper application systems, blender, JBT technologies and automation technologies are required
to enhance baby food production. Information communication technology has been a driving
factor of economic and innovation growth of Australia. This drives the organizations to maintain
high budget range on information technology since their main aim is reaching online supplier
community and customers. As per Kolios et al. (2016, p.59), the most important technological
factors that is essential for the increasing productivity of the business organisation is the need of
increasing connectivity and social marketing facilities. Increasing connectivity improves
knowledge for production of baby food items and social marketing helps in exploring business
operations.
Technology is assisting in modifying the delivery process of food to customers that allows cost
effectiveness, competence in pricing and online shopping. This has cause a rise in burden for
different companies that are trying to match themselves with the up gradation of technology.
However, in the context of Bellamy Company, it is essential to produce good food products for
infants for their development and healthy growth and therefore organisations need proper
nutrients, processing applications and authentic products. Pestle et al. (2014, p.44) informed that
customers do not compromise with the quality of food when it comes to baby products. Hence,
Bellamy has chosen to upgrade them as per the technological advancements of the country in
order to produce high quality infant formula milk.
Legal
In the perspective of OECD, on aspects of market entry hindrances and foreign investment,
Australia ranks the least among the other OECD nations. In addition to this, Sakas et al. (2014,
p.187) opined that certain regulatory and business settings are required to develop the industrial
growth of organisations like Bellamy Company. There are several jurisdictions prevalent in the
country related to the misuse or low quality production of food especially when it comes to the
matter of baby food or milk. New entrants as well as existing organisations in Australian
economy, are obliged to register with Australian Securities and Investments Commission (ASIC)
in complying with Corporations Act, 2001 (Legislation.gov.au, 2017).
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However, in this context E-commerce programming plays a vital role in developing the service
quality of business organisations by introducing new policies in the year 1996. According to
Zalengera et al. (2014, p.341) the legal acts that are necessary for maintaining business
operations are transactions act 1999, intellectual property rights act 2015 and tax issues and
amendments act 2014.
Environmental
Environmental factors are the most important part of generating good health and better lifestyle
for people. As mentioned by Vestbo et al. (2013, p.367), in the context of producing baby food
items for their growth and maintenance it is necessary to crosscheck the environmental
provisions. For establishing business operations in Bellamy Company, it is necessary to be aware
of anti pollution works which plays a great role in baby food productivity. In order to produce
baby food products, there are inclusion of many things that should be kept in mind are proper
nutrition, good and healthy food ingredients, original materials and good quality products.
Sustainable consumption of various industrial products is a crucial environmental factor that is
needed to be considered by Bellamy.
In addition to this, Australian government focuses on the minimal emission as well as waste
production during manufacture of food in Australia. As per the government norms, companies
need to make maximum utilisation of their resources in order to prolong a health waste
management system. Emission control policies are also noted by the government order to
provide a clean and healthy environment to the citizens.
GOODS 2007 2016
Fresh milk $ 2.63 $ 2.81
Infant milk $ 25.42 $ 56.06
Cheese $ 3.89 $ 3.89
Hen eggs $ 1.69 $ 1.69
Ordinary white breads $ 1.21 $ 1.21
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Table 1: Increasing price rates
(Source: Zalengera et al. 2014, p.335)
Thus, from the above macro analysis of the Australian food sector, a conclusion can be drawn as
to what are the probable opportunities and threats Bellamy face otr might face in operating their
organisation related to baby milk production.
VRIO analysis
Valuable
The valuable products that are necessary for baby food production are proper nutrition, organic
healthy food items including iron and hygienic components of food (Zalengera et al. 2014,
p.335). In this context, Australia has made its country authentic in order to provide valuable
products by implementing maximum resource materials that are required for good production.
Food items that are rich in healthy food category are shortlisted in this context to make it more
valuable and authentic. Stark (2014, p.10) said that the price rates of valuable food items of baby
food products should be maintained at reasonable price so that it becomes affordable for all
economic classes. Price is not a much important factor in Australia as it is a developed country.
However, the preliminary need for Bellamy is to maintain high standard of production of baby
milk that is rich in all necessary proteins and vitamins required for an infant. The resources of
baby food products are also expensive however, resources include, dairy products pasteurised
products and infant cereals. Due to these issues identified from above discussion, it has made
Bellamy Company influenced to achieve their success by selling good food products for
attracting large number of customers.
Rare
Bellamy Company has innovative methods for preparing baby food products which are different
from others such as this company produces its products with high efficiency and taste. Andreeva
and Kianto (2016, p.8) opined that baby food products are very limited and rare as it is in high
need for the babies as well as requires much rare high quality resources to produce the food
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product. In this case, Bellamy Company produces its products through susie burrell’s cheesy
vegetable pikelets in order to make it delicious, stuffed tomatoes for new taste, green pesto for
healthy habits and fresh vegetables and fruits. Competitors of Bellamy like Blackmore and A2M
are not been able to produce such high quality baby food with the usage of the above mentioned
rare resources. In this way, baby food products of Bellany are different from other competitors
and they are gaining competitive advantage in the Australian market over the other rival
companies.
Inimitable
It has been found that the products that are made by Bellamy Company cannot be imitated easily
as it produces its products with high potentiality and efficiency and they also use a formula ADH
and DHA for their production and that cannot be easily imitated. Competitors of Bellamy in the
Australian market are not been able to gather information about the rare resources used by the
company as mentioned above as well as they are not being able to cope up with the affordable
price that Bellamy is offering in the market. Thus, it is very difficult to imitate the products of
Bellamy Company as it rich in high resources which help in better growth of baby such as
cereals, stuffed vegetables and fresh fruits. As per Booth (2015, p.55), to achieve competitive
advantage Bellamy Company should minutely focus on its productivity and also enhance their
resources for increasing high reputation in the market than the competitors.
PRODUCTS DUMAX
DULAC
NESTLE APTAMIL FRISALAC ENFAMIL
DHA (mg) 18.3 10.4 17 9.6 13.1
ARA (mg) 18.3 10.4 17 9.6 26
ADH (g) 129.4 80.4 57.6 70.9 54.1
OMEGA 6 (mg) 1.5 0.73 0.67 0.51 0.69
PREBIOTICS (g) 0 0 0.98 0.47 0.23
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Table 2: Infant formula
(Source: Knott, 2015, p.1806)
Organised
The existing management of Bellamy Company can achieve all the success in this regard by
maintaining high resources and high productivity senses for baby food production. As per Eden
and Ackermann (2013, p.67), it is necessary for an organisation to incorporate all the positive
factors of manufacturing a product, making it valuable, rare, inimitable as well as organised in
order to make it highly effective and potentiality in existing management system. Change in
processes as well as management system is always welcomed, therefore, a change in
management system of Bellamy Company is required in order to make it more specific and
authentic.
Recommendations
● Bellamy needs to incorporate sufficient waste management system in their organisation
in order to reduce waste production
● The company can implement the idea of recycling of waste products.
● Bellamy is not subjected to enough usage of technology in their organisation that has
caused immense pressure on workers. Use of advanced technology can help them in
reducing labour pressure as well as make the production time effective.
Conclusion
It has been analysed that Strategic management is a process of formulating and implementing
goals in order to achieve success. Furthermore, it has also been discussed above about the
systems and procedures of preparing baby milk products in order to make it distinctive from
other competitors’ of Bellamy Company. Hence, in order to maintain proper health of the
children and infants it is necessary to provide good and healthy food items for their proper
growth and development.
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Appendix
Figure: Monthly Income of the customers
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