Coopers Brewery: Business Analysis for Thailand Expansion Plan

This business analysis report examines Coopers Brewery's potential expansion into the Thailand market. It begins with an executive summary and proceeds to a strategic assessment of the firm, employing SWOT analysis and the McKinsey 7-S framework to evaluate internal strengths, weaknesses, and organizational structure. The report then delves into the external business environment through a PESTLE analysis, considering political, economic, social, and technological factors relevant to Thailand. A managerial evaluation of growth opportunities is conducted, focusing on generic business strategies, Ansoff's matrix, and SAFE criteria. The analysis identifies key opportunities and threats, providing recommendations for Coopers Brewery's expansion strategy and concluding with a discussion of Porter's generic strategies for market entry. The report provides a comprehensive overview of the factors influencing Coopers Brewery's internationalization strategy, offering valuable insights for decision-making and future planning.

Business Analysis Report
(Individual Assignment)
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Table of Contents
Introduction/ Executive Summary.............................................................................................3
Strategic Assessment of the Firm...............................................................................................4
SWOT Analysis.........................................................................................................................4
McKinsey 7-S Framework.........................................................................................................5
Strategic Assessment of the Firm’s External Business Environment........................................8
PESTLE analysis for expanding business in Thailand..............................................................8
Managerial Evaluation of the Growth Opportunities:..............................................................10
A) Generic Business Strategy.........................................................................................10
B) Ansoff’s Strategy.......................................................................................................12
C) Evaluation Using SAFE Criteria...............................................................................13
Synthesis/Conclusion...............................................................................................................14
References................................................................................................................................15
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Introduction/ Executive Summary
Business refers to a group of actions that are performed to attain profit by the exchange of
resources. There are many activities which are considered under business such as
manufacturing, marketing, research and development, sales, etc. As compared to older days,
there is much modification in the commercial activities of an organisation. These days, there
is a scope of developing and expanding business at the international level, so there is a
requirement of much knowledge and understanding about market trends (Appleyard, et. al,
2015). Organisations have some weaknesses as well as strong points because of their internal
resources which they can evaluate and improve. Similarly, the performance of association
gets affected by external market components as well that are not in control of managers
because of the dynamic and fluctuating market.
We are showcasing a business analysis report about Coopers Brewery which is Australia
based company serving alcoholic drinks in different parts of the country. This report will
disclose to Board members of Coopers Brewery because they are thinking to expand their
commercial activities in Thailand. So this study discloses the analysis of internal and external
factors through SWOT and PESTLE analysis. There is the disclosure of some
recommendations that must be considered for better results. Lastly, Porter’s Generic strategy
will be discussed showcasing the most appropriate technique with which it is easy to expand
in a new market (Bhattacharyya, 2015).
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Strategic Assessment of the Firm
The expansion of business is possible with the study of internal components of the
organisation because they place a crucial role. For instance: if technology and machines used
by the Coopers Brewery are obsolete or old, then it will affect the growth and expansion rate
of the company. There must be complete and specific information about internal resources,
capabilities weak areas, etc. through which it is easy to work over it and improvise them for
easy expansion of the business (Fleisher and Bensoussan, 2015). Coopers Brewery is working
in this industry for many years, hence they have some positive or strong points as well, hence
they can showcase them in limelight. The managers of Coopers Brewery have a view of
expanding their beer business in Thailand with a view of international expansion. It is tough
for managers to evaluate their resources, weak points, capabilities, etc. hence it is advised
them to use SWOT Analysis and McKinsey 7S Framework must be used (Mirkovic,
2019).
SWOT Analysis
SWOT Analysis refers to the study of internal strengths and weaknesses and external
opportunities and the threat of the organisation (Found and Tomlinson, 2018). Strengths and
weakness are associated within the organisation, while opportunities and threats arise because
of external forces but both these affects the working style and growth rate of Coopers
Brewery negatively.
Figure 1: SWOT Analysis
(Source- James, 2018)
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Strengths Weakness
The Coopers Brewery is covering a vast
area in geographical context serving a
variety of beer to consumers. They have a
wide range of products; hence if consumers
can satisfy their cravings, hence consumer
base is also wide. They have products that
compete for each other; hence consumers do
not have to switch another brand (James,
2018).
The networking of the social media
platform of Coopers Brewery is very
strong through which consumers can easily
be communicated by their products and
innovation in it.
The employees of Coopers Brewery are
from different places and regions; hence
they are maintaining workplace diversity
which provides an edge in the international
market as well.
The major weakness faced by the company
is poor wastage management
technology due to which they harm the
environment and political issues might arise.
Inventory and stock management process
of the organisation is not good which
results in over and under the stock of
material, which leads to improper use of
resources.
The workforce of the Coopers Brewery is
not satisfied with policies and workplace
policies; hence it might cause issues in the
smooth working style of the organisation
when they are expanding at the international
level (Gray, 2019).
Opportunity
There is the scope of innovation for
Coopers Brewery in taste, variety, etc. of
beer through which the consumer base can be
improved. With innovation, it will easy to
expand in a new market and satisfy the
cravings of consumers.
Threats
There is a change in rules and regulations
of government because the beer business
gives more revenue to the government as tax
and other legal charges. Due to which smooth
running of business is not possible.
Due to the fluctuating economy of the
country, people do not invest their
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The managers of Coopers Brewery
can invest funds in research and
development activities, hence it will easy to
determine the demand of consumers and
accordingly products and services can be
provided (Groenland, 2018).
disposable income in wine, beer, vodka, etc.
so this might cause a lower profit ratio for
Coopers Brewery.
McKinsey 7-S Framework
There are many processes, departments, etc. which are working to get a better experience to
consumers such as sales, purchase, production, marketing, etc The activities of these
departments are inter-related and connected. So when managers of Coopers Brewery are
thinking to launch their segment in Thailand, then they must determine the scope of
improvement and areas which are up to the work, so it is easy to expand internationally and
sustain properly (Hair, et. al., 2019). So with the help of Mckinsey 7-S Model internal aspects
components of the company can be known. This model was introduced in 1970 by Tom
Peters and Waterman presenting 3 hard elements and 4 soft elements. These elements are
discussed as under-
Figure 2: McKinsey 7-S Framework
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(Source: Hair, et. al., 2019)
Strategy refers to the planned procedure and systems through which association can gain a
competitive advantage in the industry. As Coopers Brewery is thinking to expand their
business in Thailand, hence they need to plan and conduct the market study properly to get
success in industry.
Structure shows the organisational structure of the company determining the systematic
performance of the actions. When organised structure of Coopers Brewery the activities of
internationalisation can be implemented properly. This communicates workers to complete
their tasks properly (Jaggia, et. al., 2016).
Systems include routine and daily operations performed by various departments in the
company. With the proper system, it will easy to schedule operations for expansion and this
will lead managers to be more focused and organise operations properly.
Skills include competencies and knowledge of the workers through which they perform
operations at the workplace. Managers of Coopers Brewery must identify the skills and
knowledge of workers, then assign them tasks accordingly. This assists in completing
operations with best and returns will be positive.
Staff refers to the workers who are working in the organisation. If Coopers Brewery has to
expand at an international level, then they have to select individuals from diversified sources
so they can select individuals from the geographical region as well. The training, reward,
compensation, etc. will also plan accordingly.
Style shows the way of top-level management to manage operations, communicate, deliver
information. When Coopers Brewery has an idea to operate and expand in Thailand, then top-
level personnel have set a specified way of communication, interaction with each other, etc.
for managing the whole association and successfully establishing the business in a new
market (Jarzębowicz and Marciniak, 2017).
Shared values show the protocols and strategies which must be followed for the successful
running of the business. As per the change in a geographical region, the policies get changed
as per legal norms, but Coopers Brewery must set their code of conduct and perform
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activities properly. With proper standards and norms, possibilities of legal interference do not
arise; hence the successful launch of business enterprises in Thailand is possible.
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Strategic Assessment of the Firm’s External Business Environment
The current environment of the market is dynamic; hence it is changing frequently due to
consumer desire, preference, competitors’ policies, etc. It is essential to understand it, hence
it makes organisational operations positive and directed towards success. There are some
competitors such as Thai Beverage PLC, San Miguel Corp, etc. which might affect the
expansion of Coopers Brewery in Thailand (Kung, et. al., 2015). As there is demand in this
country for beer and other alcoholic drinks, so market research and analysing consumer
demand is important. It is suggested to managers of Coopers Brewery to evaluate external
market factors with the help of PESTLE analysis because it covers all the components and
gave an idea about the planning of operations.
PESTLE analysis for expanding business in Thailand is as under-
Figure 3: PESTLE Analysis
(Source: Kung, et. al., 2015)
Political factor- This factor includes policies and rules of government policies regarding
tourism, corruption, etc. Thailand is a monarchy constitutional country where the
involvement of government is more. The political background is strict but there are fights
among government bodies, corruption, etc. This might affect the entering of Coopers
Brewery in Thailand because the association cannot work in between political
issues. Thailand is a member of Association of Southeast Asian Nations (ASEAN), hence
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protocols and rules are strict. Coopers Brewery might face the issue because of excessive
government involvement, registration and setting business might require more time and cost.
Economic factor- Economic component shows GDP, currency reserve, interest rates, export,
import, etc. which shows the economy of the country. Thailand has the 25th largest
economy in the world, hence their GDP is also high. There is much scope of international
trade in Thailand because of the easy availability of finance. In this country, many export
industries are working for improvement in economic development with employment
opportunities and a reduction in poverty. In Thailand, there are attractive investment
policies; hence funds can be collected through venture capital (Melloni, et. al., 2016). There
are frequent fluctuations in their economic rate as well. This country is working to reduce
poverty; hence there are some strict norms for business enterprises also. As the economic
growth rate of Thailand is slow, so ROI on invested money by Coopers Brewery will
recover in a longer duration.
Social factor- Social word defines society hence in this factor information about consumers’
perception, mindset, purchasing power, etc. can be studied. Thailand is one of the best
destinations for tourists; hence there is much demand for alcoholic drinks which is a
positive sign for Coopers Brewery. The population residing in Thailand is friendly and
hard-working, so they prefer to invest their disposable income for parties, outing, dining
out, etc. hence the demand for products offered by Coopers Brewery is always high. The
most important factor which managers of Coopers Brewery must undertake about the
population of Thailand is frequent change in their demand and they are more brand
conscious, hence ready to invest more money for favourite company. So this factor of
Thailand is positive for internationalisation of Coopers Brewery.
Technological factor- Technology is developing fast in the current era because of
development and innovations. This technological development affects business operations as
well such because it affects the use of machinery, pattern of communication, etc. Thailand is
much developed in the context of technology and there is an important role of government
as well in utilising the latest technology. The political parties of Thailand pay incentives and
rewards to the organisations that come with new techniques. So while operating and
expanding business in Thailand, managers of Coopers Brewery require investing more money
for using the latest technology (Rakshit, et. al., 2015). For making existence in Thailand,
there must be the use of social media platforms to communicate with consumers to
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communicate about their presence and brands offered. There must be a use of the latest
machines for production, packaging, supply chain, etc. which requires a huge amount of
funds.
Legal factor- In this factor, rules and regulations are covered associated with culture,
business, religion, etc. In Thailand, there are strict rules regarding respect for Royal
families, smoking, alcoholic drinks, etc. which must be followed to reduce any issue. The
Coopers Brewery serves beer, wine and alcoholic drinks, hence they have to understand and
evaluate working policies properly, so the situation of legal actions does not arise. For
successful operating in a new market, complete knowledge about rules and regulations must
be gathered.
Environmental factor- This factor contains natural resources, vegetation, forest, trees,
animals, climate, etc. of the country. In Thailand, the main source of income is tourism
business because of its rich vegetation, culture, beaches, etc. But there are some
environmental challenges as well such as water pollution, water scarcity, deforestation,
etc., so the government is taking strict actions to deal with it (Ransbotham and Kiron, 2017).
Managers of Coopers Brewery must take care of their operations and processes that might not
adversely impact the environment of Thailand. To control and care environment, machines
and types of equipment must be updated and well maintained, but this requires high
investment after approval of top-level managers.
From the above-discussed PESTLE analysis, it is clear that the external environment factors
of Thailand are positive as well as negative. For instance: political factors do not result in
positive for the growth of the company, but if they want to enter this market, then they have
to collect complete information and conduct regular market analysis regarding political
policies. The growth in the economic rate of this country is slow; hence return on investment
might be low. The social factor is positive in this country because people prefer to intake
drinks and invest their money in leisure things which is positive for their growth. As Thailand
is a technologically advanced country, hence it is advised to Coopers Brewery must set a
higher budget for the installation of new machines and equipment. There are strict rules
associated with alcoholic drinks, smoking, etc., hence they must be evaluated and understood
completely with the help of legal expert personnel. There are some environmental issues in
Thailand, so to reduce the possibility of legal action; it is the responsibility of managers of
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Coopers Brewery to maintain working style and techniques while expanding business
(Ransbotham, et. al., 2018).
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