Earth Natural Foods: Strategic Management, Market Analysis, and Growth

This report provides a comprehensive strategic management analysis of Earth Natural Foods, an independent wholefoods store. It begins by differentiating between intended, emergent, and realized strategies and then conducts both internal (SWOT) and external (PESTLE) environmental analyses. The report identifies the company's strengths, such as its flexible business strategies and its product offerings of fresh cakes, pastries, organic produce, and bread. It also points out weaknesses, like the limited distribution network. Opportunities include expansion through innovation and digital technology, particularly in the UK e-commerce market, and international expansion, specifically into the German organic food market. Threats include competition from established players like Whole Foods Market and changing government regulations. The report then analyzes factors critical to the company's success, such as increasing market share, service orientation, and employee performance. It also addresses potential issues related to customer demand, technological changes, and government regulations that could impact growth in international markets. Finally, the report provides recommendations on environmental analysis and strategic implementation, along with alternative solutions for the company's expansion and overall strategic direction.

Strategic Management

Executive Summary:
Strategic Management is continued planning, monitoring and assessment which is
necessary for company to meet its goals and objectives. It involves formulation and applies of
major objectives and initiatives taken by top administration of firm. It gives overall direction to
company and includes particular developing policies and procedures to achieve the objectives of
entity. Earth Natural Foods apply new business strategies to more flexibility that is strength of
business. Company sells fresh cakes and pastries, organic fruit and vegetables as well as fresh
bread. It is independent wholefoods store in London. It can be concluded from the report that
Earth natural food has various opportunities and threats available in the market and also has
number of strengths and weaknesses in their business. It is also concluded from the report that
organization can make the external analysis to find the opportunities and threats which are
present in the environment.

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
QUESTION 1...................................................................................................................................1
a) Distinguish between intended, emergent and realised strategies as well as undertake
external and internal environment analysis............................................................................1
b) Identify of opportunities and threats as well as success factors for firm...........................4
c) Foresee of issues to seek growth through international markets........................................5
d) Identified weakness by needs of strength of firm..............................................................6
Question 2........................................................................................................................................8
a) Should organization increase outlets in UK and/or should establish outlets internationally
based on the organizational resources and the market...........................................................8
b) Mintzberg and Lampel's Ten School of Strategies............................................................9
Question 3......................................................................................................................................11
a) Recommendations with regards to environmental analysis.............................................11
b) Strategic implementation and its limitations and alternative solution:............................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Strategic Management is continued planning, monitoring and assessment which is
necessary for company to meet its goals and objectives. It involves formulation and applies of
major objectives and initiatives taken by top administration of firm. It gives overall direction to
company and includes particular developing policies and procedures to achieve the objectives of
entity (Leitner, 2016). This study is based on Earth Natural Foods. It is the whole food groceries
and takeaway meals. It sells organic fruits, vegetables, bread from craft bakeries, grains to
chocolate and olive oil. This report will explain differentiate between intended, emergent and
realised strategic as well as utilizing proper analysis tools to tackle an external and internal
environmental analysis on company. In addition to this report will identify opportunities and
threats of company as well as critical factors success for firm. Furthermore, report will consider
changes in external environment to seek growth through international markets. It will identify
weakness to overcome strengths and justify use of tool to take it for organization. The report will
also be discussing about resource and market base view of considering available options of
expansion for firm.
QUESTION 1
a) Distinguish between intended, emergent and realised strategies as well as undertake external
and internal environment analysis
Intended Strategies:
It is the strategy that hopes to execute for company. It is usually described in detail
strategic plan within Earth Natural Foods. For example FedEx used the intended strategy to
explore the international market.
Emergent Strategies:
It is unexpected strategy that develops in result to unannounced chances and situations.
These strategies can also track to large success (Havenvid and etal., 2017). Like when FedEx
deviated from intended strategy it developed service called Zap Mail which involved documents
been sent electronically via fax machine.
Realised Strategies:
It is approach that actually follows by company. These strategies are product of intended
strategy and deliberate approach of Earth Natural Foods. For the Southern Bloomer
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Manufacturing company realise strategy will be shaping greatly by intended and emergent
strategies.
Difference between intended, emergent and realised strategies
Basis Intended strategy Emergent strategy Realised strategy
Meaning Intended strategies are
approaches that hope to
execute of Earth Natural
Foods.
Emergent approaches
develop in result to
unplanned chances and
situations.
Realised strategy is real
and practical strategy.
Flexibility It is largely advised to be
less flexible.
It is highly flexible for
organization (Bailey and
etal., 2018).
It is moderated
flexibility of
organization.
Utilization Intended strategy uses to
top-down approach to
management.
Emergent strategy
applies to bottom-up
approach to
administration.
Realised strategy
implement according to
situations.
Internal Analysis (SWOT):
Strength: Earth Natural Foods apply new business strategies to more flexibility that is
strength of business. Company sells fresh cakes and pastries, organic fruit and vegetables as well
as fresh bread. It is independent wholefoods store in London.
Weakness: Firm has limited and only localized distribution network, so that it is
weakness of business. In case, company sells products on online such as fresh bread, vegetables,
but they do not delivery on time to consumers. So that, there is no utilization of these vegetable
and breads. Thus, it is weakness of firm.
Opportunities: If Earth Natural Foods follow innovation and digital technology, so that
it creates chances to growth of business (Leitner, 2014). Firm can expand their business in UK
by online selling because of UK is third largest e-commerce markets. So that, it is opportunity to
Earth Natural Foods but company should be expanding its operation on international terms
which is regarded to as best growth opportunity for Earth Natural Food. So it is better that
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company is starting its organic food product in Germany which is growing international market
for organic food product.
Threats: Recent time, Whole Food Market which is the best international company for
selling organic food products also provides online groceries, so that it is threats to Earth Natural
Foods. Some changes in government rules and regulations affect both selling food products
based on physical and online stores that are also threat for firm.
External Analysis (PESTLE):
Political Factors: There are higher pressures of political factors on food business due to
stability of government which increases economic activity Germany. They want to create their
population healthy and policies for agriculture sector (Woodside, 2015). Some of legislation
effects on Earth Natural Foods.
Economic Factors: Due to interest rate, disposable income, inflation rate, growth of food
business effected as it could be included that Germany is the 4th largest economic of world. Earth
Natural Foods utilise various channels such as mail order, direct sale for selling of their goods so
that they could be able to grow their share of market in German market of organic food.
Social Factors: The changes in trends of foods, taste and preferences to people that
effects on Earth Natural Foods. People are thinking about healthy lifestyle and they turn to good
food that provide health and food needs. Germany is a multicultural country and the society is
moulded by variety of lifestyle and ethno-cultural diversity.
Technological Factors: Firm implement advance technology and innovation that has
increase online and physical sales of products as Germany is very much advance in technology
and research. This also helps in increasing sales and profits of business (Bull and etal., 2016). So
this will be helping Earth Natural Food Company in going online so that they could be able to
grab the German online organic food market as well.
Environmental Factors: Earth Natural Food has to take care that their foods product
must be safe, healthy and organic, as having concern over health of people. Therefore, firm
needs to follow all environmental laws for sales and profits. The environmental technologies of
Germany are reaching on higher sales volume than other automotive or mechanical engineering
till 2020. The industry is on international leading position as in field of air pollution control,
noise mitigation and recycling as well.
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Legal Factors: Earth Natural Foods must have followed legislation and regulations such
as labour laws, antitrust law for safety and protection of labour and consumers. This aids to
customer satisfaction and success of business. As per the legal system of private enterprise and
competition of Germany it is witnessing retention policy within major financial sector with use
of ownership of 2 banks. The legal system of country is very much stable and secure which is
one of the major factor that is attracting investors towards Germany
b) Identify of opportunities and threats as well as success factors for firm
Opportunities:
There are many opportunities such as advance technology, innovation, digital
technologies etc. to create chances by Earth Natural Foods. Firm increases their online sales in
Germany, because of, it is the largest e-commerce markets which are short term opportunity
(Havenvid and etal., 2017). Thus, they make chances for expansion by selling organic food
commodities in Germany that is long term opportunity for company. Earth Natural Foods can
utilize different distribution channels such as direct sale, online selling etc. for increasing sales
and customer satisfaction within Germany.
Threats:
The main threat of firm by existing competitor, because their sales effects on short and
midterm range. Some rules and regulation such as labelling and packaging of product,
production related regulations etc. effects on business of Earth Natural Foods indicating it to be
short term threat. If the Earth Natural Foods follow all regulations in business, so that they do not
faced any kind of threats and situations in business.
Factors of Success:
There are many factors of success such as sales target, profits, market share, and
employees etc. that help to Earth Natural Foods operating on international market like that of
Germany.
Increase market share with current customers: It is necessary to identify the
increasing market share is more essential part of success of Earth Natural Foods while they are
operating in German food market. With the help of it, firm satisfy with customer needs and
wants.
Be service oriented when working with customers: If service of firm is very good then
this will ultimately affect their profits has increased in both online and physical stores. It is also
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necessary to determine profits that is important part of success of Earth Natural Food (Bailey and
etal., 2018). It is very much important that Earth Natural Foods is maintaining their quality of
service in German as they are giving in UK to their customers.
Employees: The most important part of firm that is employees or labour. If workers are
effectively performed in relation to provide the best goods and services to customers, so that
Earth Natural Foods easily increase sales and profits of business in German food market. Firm
needs to create innovative ideas and adopt the advance technology for providing the organic and
natural food product to consumers of Germany.
c) Foresee of issues to seek growth through international markets
There are many changes in external environment such as customer demand, taste and
preferences, technological changes, modification in government rules and regulations that are
occurred issues effects on growth through international markets.
Customer demand: Consumer demand is always changed according trends and needs.
So that, Earth Natural Food make sure that provide the organic and natural food products
according to demand of customer. While changing in demand and need of consumer, it creates
issues which are effects on growth in international markets like that of Germany (Leitner, 2014).
This is the most important factor which is impacting growth of Earth Natural Foods in
international market. As if the company is successfully been identifying the need and demand of
customer then company will be able to grow in German food market just as it is doing in UK. It
is necessary for Earth Natural Food to provide the organic and fresh food product according to
taste and preferences of consumers. Therefore, firm make sure that follow the innovation to give
the better product and services to overcome this issues which directly effects on growth in
German markets.
Technological Changes: Changes in technology has effected on sales and profits of
Earth Natural Food. Firm is focused on online sales, so that they implement digital marketing to
increase sales and profits in Germany. The use of correct and latest technology like AI and cloud
computing in all sections and operation of Earth Natural Foods will help them to grow in
German food market.
Climate Changes: Changes in climate also creates issues which is directly impact on
growth of business when they are intending to operate within Germany. Firm face issue of
climate such as flood. Because of, flood is destroyed natural soil ultimately it directs impact on
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farming as well as manufacturing of organic food. Therefore, this issue impacts on growth of
Earth Natural Food in global markets.
Government rules and regulations: Some changes in government legislation such as
packaging and labelling, food production standards, registration process and certification etc. that
create issues to growth of Earth Natural Food (Bull and etal., 2016). Like while operating in
Germany it is important that Earth Natural Food is following ‘Green Dot’ within their food item
packaging and labelling. European legislation provides for specific labelling rules for certain
products such as foodstuffs, household equipment, sportswear, textiles, medicines, chemicals,
etc.
d) Identified weakness by needs of strength of firm
The weakness of Earth Natural Food has limited distribution network. So that, they focus
on digital marketing in relation to follow the new strategies for increasing sales of business. Firm
needs to overcome their weaknesses, so that they utilise different tools and techniques in
business.
For lowering down the longer delivery house it is important that Earth Natural Food is
always keeping their inventory and warehouse ready. Thus by keeping packaging material handy
and using tracking or automated logistic software also company could be able to decrease time
taken to deliver food products to customers.
Thus it will be helping them to explore more new supplies of their product in Germany
for this company should also avoid pricing conflict.
Other than above there are certain strategies with the help of which Earth Natural Food
will be able to lower down their weakness like that of longer delivery hours and limited
distribution network.
Know strength: First of all, it is necessary to know strength by Earth Natural Food. In
terms of employees, goods, customer loyalty, procedure and location. With this, firm easily
overcome their weakness and operate into Germany (HUI, 2007). Company try to evaluate
strengths as compared to their competitors.
Identified weakness: It is also necessary to identify weakness of firm. It includes
improve of product and services, reliable customer services and deliver exactly to consumers.
Therefore, Earth Natural Food needs to overcome these weaknesses by following innovation and
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technology in product and services. With this way, firm increase sales and profits by giving the
organic and natural food product to consumers.
Spot the opportunities: It is needed to spot the chances to grow and success the
business. In this context, Earth Natural Food creates chances by adopts innovation and
technology for improving product and services (Barney, 2017).
Tackle these chances: After spot chances then Earth Natural Food needs to adopt
different ways to tackle these opportunities such as innovation, digital technology etc. With this,
firm easily satisfy to customer needs and wants by supplying the organic and natural goods. By
this technique, firm try to overcome weakness of business.
Analysing the threats: It is needed to analysis threats through collect information about
market, different products, various existing and new competitors etc. With the help of it, Earth
Natural Food analysing threats for growth and success of business. By this technique to
overcome weakness of firm (Hitt and Duane Ireland, 2017). Through it, company easily supply
goods and services to customer and increasing sales of business.
Utilization of analysis: It is necessary to use SWOT analysis for business. It includes
build strengths, overcome weaknesses, capitalize opportunities and reduce threats. With the help
of it, firm minimize risk and increase strengths for business success and growth. This also assists
to overcome the weakness.
In this context, Earth Natural Food easily overcome their weaknesses and providing the
best organic food product to the customers.
Question 2
a) Should organization increase outlets in UK and/or should establish outlets internationally
based on the organizational resources and the market.
Based upon the resources and availability of the market of organic foods, Earth Natural
Food should start establishing outlets in Germany. As all over the world the sale of the organic
food is continuously rising and also brings huge income to the organic food companies across the
world.
On the basis of Market: Earth Natural Food should establish outlets in Germany
because in Germany turnover of organic foods have risen by 2.3% in the present year which
reveals that the market is increasing for the organic foods. Despite of the dry summer and cold
winter in Germany that resulted in the havoc with the crops but the organic fresh and dairy sales
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have been a main driver for the growth in the overall market in Germany and has set a new
record of worlds third largest importer and exporter of food by 2015 (Ginter, Duncan, and
Swayne., 2018). So the company has the great opportunity to increase the outlets in Germany as
the market is growing for the Organic food products in Germany. According to the data Germany
has very market for food and agricultural products, so the sale of organic food would is increase
in Germany and the company has a great opportunity to establish new outlets in Germany. Sale
of fresh organic food and vegetables has grown up to 5.3 percent in the current year (Strategic
Management, 2018).
On the basis of Resources: In Germany there has been increase in the organic farming
in the recent years but as per the report of the Soil Association, sales of the organic foods in 2018
are growing but the business is suffering from the drought and heat which has affected the
business in various parts of the globe. But Soil Association have certified more than 3,000 new
products and producers in the last year so there is the abundant resources availability for the
Earth’s Natural Food to increase the outlets in Germany. So the company has the great
opportunity to increase their outlets in Germany based on the availability of the resources and the
opportunities in the market.
Earth Natural Foods should also establish their outlets in Germany because the people
across the world are switching towards the organic foods because of the increase in chemically
produced fruits and vegetables. So the company has the great opportunities to establish new
outlets in Germany. Beside a growth in the global markets of organic foods and beverages is
expected to increase more than 15 percent from 2017 to 2015. Global organic foods and
beverages market in 2016 was worth more than 80 billion US dollars. There would be potential
growth in the Vegetation across the Germany because of the change in the quality life style of
the people across the world and people tend to choose fresh organic foods over chemically
charged food.
b) Mintzberg and Lampel's Ten School of Strategies
Mintzberg and Lampel's Ten School of Strategies can help Earth natural food in
increasing the outlets in UK and establishing new outlets internationally as these strategies will
provide a range of strategies for the company for increasing the outlets in UK and going
international (Hanson and et.al., 2016). These strategies can help Earth Natural Food as follows:
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The Design School: This strategy will allow Earth Natural Foods to attain and fit
between the internal capabilities and what are the external possibilities of the company. This
strategy will help to formulate the unique strategies for achieving the objectives of the
organisation while establishing outlets in Germany.
The Planning School: This strategy will help the company to make the analysis of
strengths and weaknesses of the organisation and what are the opportunities and threats present
in the German markets.
The Positioning School: This strategy will help the organisation to formulate the
strategies regarding the positioning of their products in the German markets. It will help the
organization when and how to positioning their products in the minds of the customers in
German markets.
The Environmental School: This will help the organization in formulating the strategies
depending on the events and trends which takes place in the environment and will help the
organisation in reaching these events and trends that takes place in Germany.
The Configuration school: This strategy helps in the transformation of the organization
from one type of decision making structure to another type of decision making i.e. it will help the
company in going international and also hep to increase the outlets in Germany (Haynes., 2018) .
This strategy will help in bringing the stability in an organization due to the changes that will
take place in strategies of the organisation for increasing the outlets and establishing new outlets
in Germany.
The Cultural School: This strategy will help various groups and and the departments of
the organization to work collectively and cooperatively towards the common objective of
expansion of the business internationally.
Earth Natural Foods can use this model to achieve the objective of establishing new
outlets in Germany before entering in the German markets Earth Natural Foods will determine
the possibilities of entering in the German markets and makes the company fit for entering the
markets. Before entering the German markets a company has to do proper planning before
entering the market. By using the positioning strategy Earth Natural Foods will position itself in
the main markets of the Germany to gain the attention and attract most of the customers. With
changing trends in the present world Earth Natural Foods can formulate the strategies to face the
changing trends and meet the requirements of the customers. To establish new outlets in
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Germany the cultural school strategy will help the employees to work together and also learn the
culture of Germany to better understand the customers. This will help the Earth Natural Foods in
establishing and growing the business in Germany.
Question 3
a) Recommendations with regards to environmental analysis
Sales in the organic food industry are booming, but the company is facing some risks
which are present in the external environments and there are some weaknesses in the
organisation which needs to be checked by the organisation for the growth of the business
nationally and internationally.
Recommendation for the identified risks is follows:
High costs of certification and risk from the farmers: Company is facing high risks of
cost because the farmers need to get certified from the government and this costs of certification
is proving expensive for the farmers and this will increase the cost of purchasing the resources
for the company (Karadag., 2015). Land used by the organic farmers in Germany is prohibiting
the farmers to use prohibited substances which includes many pesticides and in Germany farmers
must be certified and must adhere to the regulations of the government.
Risk in organic supply chain: In every supply chain there is a risk related either to the
chain itself or related to the products and also within the ingredients which move through the
supply chain. Food contamination in the supply chain is also another threat for Earth Natural
Resources. The recommendation for sustaining the supply chain in Germany would be that
company should map the supply chain and make its supply chain visible because it will offer the
opportunity of reducing the risks and costs related to the supply chain and also will help in
improving the sustainability and efficiency of the organization (Meyer, Neck. and Meeks., 2017).
Organic Legislation and Regulation: It is the another risk for Earth Natural Resources
to abide the organic rules and regulations of German governments in which a company is willing
to establish its outlets in the different parts of the country (Rothaermel., 2015). There are various
laws and safety regulations in Germany which may prove risk for the company. So the
recommendation is that a company should enter in German markets by properly analysing the
organic rules and regulations of Germany so that it should not face problems in establishing
outlets and operating business if future.
Weaknesses:
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Earth Natural Foods weakness is that it has limited and localized distribution networks so
the recommendation is that the company should improve and expand its distribution channels so
that it can fulfil the demands in Germany.
b) Strategic implementation and its limitations and alternative solution:
An organisations strategy to focus on online sales will prove successful for the
organization, so the strategy should be given approval by minimizing the risks attached to it. The
limitations of the top down strategies will be that team is not been involved in the planning
process and the employees may feel left out as they cannot voice their opinions (Simon,
Fischbach and Schoder., 2014). Sometimes top executives may take the decisions that may not
be practical or easy to implement which limits the employee’s participation and will create a
toxic work environment in the organization. So these are the limitations of top down strategy
makings within the organization which have a negative impact on the organisations performance
(Yorio, Willmer and Moore, 2015). The alternative process of the strategy making that is
available for the organization is two way process of strategy making i.e. the process in which the
strategy making process moves from top to down and down to top. By following this process all
the limitations in top to down strategy making process will be covered up and organisation will
be able communicate with lower end of the employees to frame the better strategy. It will allow
the employees participation in the decision makings and thus will improve the decision making
process of an organization (Strategic Management, 2018).
CONCLUSION
It can be concluded from the report that Earth natural food has various opportunities and
threats available in the market and also has number of strengths and weaknesses in their
business. It is also concluded from the report that organization can make the external analysis to
find the opportunities and threats which are present in the environment. This report also
concludes that there are various issues available in the international market which the
organisation has to face which establishing the business internationally. This report also
concludes that Mintzberg and Lampel's Ten schools of strategies can prove helpful for the
organization in establishing their business nationally and internationally and to be successful an
company should two way communication process which should move from top to down and
down to up.
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