Business Policy & Strategy: Corona Company Analysis Project

This project provides a comprehensive analysis of Corona, an Egypt-based chocolate and confectionery company, focusing on its business policy and strategy. It covers the company's background, mission, vision, and business model, along with an identification of its strategic group and a detailed industry analysis using Porter's Five Forces. The report includes a Strategic Factors Analysis Summary (SFAS) matrix to evaluate Corona's strengths and weaknesses, and identifies alternative strategies using the TOWS matrix. Finally, it selects an alternative strategy and analyzes its potential impact on various stakeholders, offering a thorough evaluation of Corona's strategic position and future opportunities. The analysis uses frameworks like Porter's five forces and TOWS matrix to provide strategic recommendations for Corona's growth.

Business policy and
strategy
Mariam Mounib
Zeina Mounib
Leila El Leithy

Introduction
The business policy describes the scope in which decisions can be taken by the subordinates in the organization. It
encourages the lower level management to deal with the difficulties and issues without referring to the top level
managers every time for the decisions. The business policies are actually guidelines developed by the organization to
regulate the actions of the subordinates. The limits are defined within which decisions are to be made. It also pacts
with the acquisition of the resources within which the organizational goals are mandatory to be achieved. This report
comprises the business policy of the Corona which is an Egypt based company. Corona is a chocolate and
confectionary company. The report defines the background of Corona along with the mission, vision, and strategy of
the company. The business model of the company is also defined. The strategic group of Corona is identified. The
report also includes the industry analysis of the company. The SAFS matrix is discussed and alternative strategies are
identified which were used in the TOWS matrix. Finally, the alternative strategy is chosen and its possible effect is
analyzed on the various stakeholders.

Background of the company
Corona was established in 1919. It is the first confectionery and chocolate company in the Egyptian market. The
company was get nationalised in 1963. Corona has established its image as a quality manufacturer. The company is
identified for its nostalgic portfolio comprising various categories of snacks by the famous brand names such as
Cocoa, bimbo, Biscuits, Wafers, Candies, Chocolate Rocket, Toffees, and Gum. On the other side, chocolate is one
of the popular consumer products around the world. The growth of the chocolate industry over the last years has
been caused in the eastern and western world. It is a popular ingredient for the desserts and meals (Ashish 7-25).
The local and global growth has made the price of the products sensitive. The company targets the people of
twenty-five years and more. The current target market of the company in Cairo, Alexandria and the countries
outside Egypt.
The company is passionate to make everyone happy by its wide range. The confectionery is growing at 5% on the
international level which is faster than other packed food markets.

Company’s mission, vision, and strategy
The mission of the Corona is to provide a high quality portfolio of the products like
chocolates, biscuits, cocoa, and jelly in the Egyptian market. The company believes in
promoting customers and build pleasant moments of joy.
The vision of Corona is to be the challenger as the Egyptian confectionary producer with
the deliberate role in the Middle East and Africa.

Continued...
The strategies employed by Corona are marketing penetration and product development strategy. The marketing
penetration strategy is used to introduce selected products like dark chocolate, white chocolate, light chocolate and
hazelnut chocolate in the current market of the company which is Egypt. On the other side, the product
development strategy is used by changing packaging materials of the previous products in order to make more
attractive and in the various sizes (Fiorino and Bhan 310-322). The objective of the Corona behind employing
strategy is to enhance the brand image by the quality improvement. The company also employ a strategy with the
aim of enhancing market share. The company even make use of the improved distribution channels in order to
enhance availability. The re-pricing method is also used by Corona. The strategies are employed with the aim of
making the company a mega brand in Egypt and in all over the world.

Company’s business model
Corona possesses an extensive portfolio which fulfills the expectations of the customers. The strong market position
gives company high flour. Corona possesses various product ranges. The products of the company are having a top
market share. The business model of the Corona comprises:
Key resources: Corona has a wide range of brands ranging from icons to local favorites. Corona has 40,000 employees
and ranks third among the top ten competitors. The key resources of Corona further comprise raw material,
manufacturing plants, production plans, brand portfolio, distribution channels, brand, recognition, and awards.
Key activities: The key activities comprise marketing, manufacturing, production, food processing, logistics,
networking, quality control, operations, innovations, research and development and producing seasoning ingredients.
Key partners: The key partners who are associated with the company are farming community, suppliers, retail shops,
cocoa producers, alliances, acquisitions, and sponsorships.

Continued...
Value propositions: The purpose of the Corona is to enhance quality of life with the contribution towards good
health. The company even aim to improve the livelihood of the communities connected with the company. It is the
leading beverage company in Egypt. It provides chocolates which are used as an ingredient by the cafes and other
companies (Deuscher 92-119).
Customer relationships: The company has attained effective relationships with customers. The company keeps on
innovating. It has gained the trust of the customers on behalf of the quality provided by the company.
Channels: The channels used by the company are retail stores, media, news, social networks, web sites, call center,
mail order and media contacts (Corné and Beukeboom 58-67).
Customer segment: The customer segment of Corona comprises individuals, families, communities, homes, offices
and massive market.

Identification of the company’s strategic group
Corona’s strategic group comprised of competitor identified as Kraft foods. Kraft food is part of Mondelez
international group of the companies. Kraft is the importer of the global products. The company made its presence
worldwide with the help of strong acquisitions. The biggest acquisition of the company is Cadbury which was made
in 2010. Currently, the company focuses on four categories and nine brands. The company is the market leader in
gum, chocolates, candy, beverages, and biscuits (Kimberly 32-42).
Mars is also identified as one of the strategic group of the company. The growth of the company is marked mainly
by the Egypt region. The bars of the company are sold in two different originations. There are British version and
the American version of the bars. The American version of the mars was stopped in 2002. Mars is liked more of the
youngsters. Twix is the popular chocolate product of Mars.

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Ganache chocolatier in Egypt offers delicious chocolates. The company also give chance
to the customers to make their own chocolates. The chocolates can be customized in the
form of color, flavor and shapes. The company provides unique kind of experience which
appeals to the customers. The premium chocolates of the company range from bars,
chocolates to the desserts. The company also makes delicious cookies. Agamya is more
preferred out of them.

Industry analysis
The industry analysis is possible with Porter’s five forces. The analysis comprises the five factors given below:
Bargaining power of the buyers: The main buyer’s segment of the confectionery in Egypt includes children and young teenagers. This
segment accounts for 85% of the sales. It sits eh target market of the Corona due to the demographics of Egypt.
Bargaining power of the suppliers: Kraft Cadbury Plc is the market leader in Egypt comprising 13% share in the Middle East. The
company provides eighty products comprising 50% market share of Egypt. On the other side, Mars Inc has attained sales of USD3Bn in
2011 and has a regional office in Egypt. Add on, Nestle, Unilever, and other multination corporations regulate 10% of the market share.
Industry rivalry: The Egyptian confectionery market is a greatly profitable and appealing industry. The demographics of the company
desire to target rural areas. The chocolate confectionery contains 18.5%. The Egyptian chocolate industry is highly productive in spite of
the 2011 stagnation. The Egyptian chocolate industry is desired by the investors as it is capable of maintaining growth. The 2% increase
in the population causes 85M demand for the products of the company.

Continued...
The threat of substitutes: There is an extensive range of the salty, sugary and low calories
confectionary which generates substitution possible. The chocolate substitute companies
hang around similar price and the consumers are quite pricing sensitive. An extensive
range of the products offered by the competitor prices creates high competition
(Davidovich-Pinhas and Marangoni 65-91).
Barriers to entry: The taxes applied to the imported products makes local products in
Egypt more desirable. The economies of scale are enjoyed by the main suppliers with the
Egypt based plants lie Mars and Cadbury. The natural barriers include an image of the
company and apparent satisfaction from the rival products.

Strategic Factors Analysis Summary (SFAS) matrix
The SFAS matrix includes measuring the strengths and weaknesses of the company’s
position. There are various tools which are used as the basis for the strategic analysis of
the business and SFAS is one out of them. It focuses on the internal strengths and
weaknesses along with the external environment of the company. There are various factors
which are critical to developing strengths into the competitive advantage over the
competition. It has a role in improving specific weaknesses which are equally helpful in
hindering efficiency and growth of the company. Corona is required to enhance its internal
operations before worrying about the external business environment (Mark 236-268).