Business and Management LB170: SWOT Analysis of Greggs Bakery

This report presents a comprehensive SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis of Greggs bakery, examining its internal and external factors to formulate strategic plans. The analysis delves into Greggs' strengths, such as its strong brand portfolio, efficient distribution network, and innovative product offerings like vegan options, while also addressing weaknesses like limited technological investment and infrastructure constraints. The report identifies opportunities like lower inflation rates and government free trade agreements, while also addressing threats such as increased competition and the impact of 'isolationism' trends. Furthermore, the report includes a reflection using Kolb's reflective model, discussing the learning experience and skill development in communication and research. The author also references the assignment brief from the Open University's LB170 module on Communication skills for business and management, which included a presentation and reflective writing components.

Running head: BUSINESS AND MANAGEMENT
BUSINESS AND MANAGEMENT
Name of the Student
Name of the University
Author Note

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SWOT analysis
SWOT analysis is a systematic approach for developing plans for a company by
analyzing its internal and external factors. The analysis of the factors includes examination of
strengths, weaknesses, threats and opportunities, which formulates the competencies of an
organization, eventually making pathways for handling future shortcomings and making strategic
planning.
According to Forbes (2020), SWOT analysis provides a strategic plan and competitive
edge to the company. This provides a conceptual framework to a company for understanding its
strengths, weaknesses, threats to understand and handle the future shortcomings that can topple
the organization; SWOT framework also helps in grabbing better opportunities. In this report,
there will be a SWOT analysis of the Greggs bakery of Gosforth described to understand its
strengths and weaknesses.
Greggs started in 1939, by John Robson Gregg, who initially started business by selling
eggs, later opened bakery in the year 1951, making it to 2000 bakery shops in the 2000’s, and
more than 20, 000 employees (Greggs.co.uk, 2020). Greggs headquarters situated in Newcastle.
SWOT analysis of Greggs of Gosforth
Strengths
 Good performance in new emerging
market
 Good track records in production of
quality products
 Free flowing distribution network
 Good cash flow
 Activities are automated and
synchronized
 Highly trained employees and
workforce
 Good records in keeping interactive
Weaknesses
 Infrastructure of the company is only
compatible with the present business
model
 Lack of investment in technologies
 Lack of investment in Research and
Development
 Increased Attrition rate in workforce
 Some failures in integrating with
companies
 Decreased food range or varieties and
lack of Gluten free products(Pellegrini

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relationships with other companies
 Increased Merger and Acquisition
 Strong Brand Portfolio
 Relationship with charitable
organizations
 Presence of a breakfast club
and Agostoni, 2015)
 Lack of expansion in International
Market
 Scandals related to pasty tax, Google
Threats
 The technologies adapted by
competitors can topple their business
operations
 Products of Greggs are easily imitated
 The lack of employees can disorganize
the operations
 Increased power of Distributors
 Cutthroat competition by new entrants
 Adaptation of the concept isolationism
 Ever-changing consumer demands,
shifting to different bakery
Opportunities
 The forthcoming decreased in
inflation rate can make the business
constant
 Decreased investment in
transportation
 Acquiring of more customer through
online media, websites
 New taxation policy can boost up their
performance by providing them with
more opportunities
 Entry into new markets
 Increasing their core competencies
SWOT analysis
Strengths
According to Annualreports.com, (2020), through it tenure Greggs has acquired 7.3
percent growth in their sales in the year 2018. Greggs have been going through low sakes, due to
the emerging new entrants, but recovered soon. The sales growth has been consistent for the past
2 years, increasing their sales to 1 billion to in the end of the year 2018 (Statista, 2020). The
strengths of the Greggs is that it has performance evolved in an increased rate from 2000 to

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2019, and have the expertise in developing market space in new markets. The expansion have
helped them to adjust in diverse culture and build a highly resourceful economic cycle, building
up a new revenue stream. The innovative products and low cost products have attracted all types
of customers to their bakery stores, which includes their vegan rolls, pastries and sausage rolls.
This have enables them to have a free flowing cash incoming through their sales. They have even
encountered an economic breakdown and decrease in sales by 0.2% in the year 2011, but they
recovered them quickly in the next year. For attending customers, they have trained their
employees with specific learning programs. Greggs have always maintained good training
programs for their employees and are investing in good training programs. Due to lack of
technological implementation, they have been slagging behind, and therefore, they have been
made successful merger and acquisition with many technologically oriented companies to
develop their operations, and even their success has become vaster due to the strategies of
keeping good relationship with their mergers and partners. Another extravagant feature about
Greggs is their breakfast club, which was started in the year 1999, which provides free nutritious
breakfasts. Many poor people used to come to have free breakfast, which attracted many
customers as it was considered an exceptional contribution to the society. The breakfast club
inaugurated by Greggs used to feed more than 18, 500 kids and 300 schools.
Weaknesses
The weaknesses of the company is that it does not have any flexible business model,
therefore limiting the company for further expansions to international markets. Lacking in
technologies, customer’s long queue outside London Bridge branch, has tended customers to be
more irritated and increased the employee attrition due to the lack of training provided to handle
so many customers. Research and development is comparatively less in Greggs, which has
tended in rising problems for serving the customers in a better manner. The scandal related to
pasty tax, have tended hundreds of bakers to strike for the cause of providing cold eateries or
baked items, and decreasing the VAT(dailymail.co.uk, 2020). The VAT OF 20% on takeaway
foods was tremendous and many people were unhappy with that.
Threats

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The lack of technological implementation will topple the operations of Greggs and it will
tend in their competitors to get more competitive advantage and market space, as customers re
looking forward to quicker and handier services using online channels. Instead, Greggs has
imposed 20% VAT tax on takeaway foods, which acted as another disadvantage to their success.
Another trend that will affect the company is the concept of “isolationism”, which have affected
adversely on stock market and it has resulted in decrease of economy (money.cnn.com, 2020 ).
The cutthroat competition is a major threat as new entrants are putting up more innovative
products along with recent technological services, have affected their stability and constant
quality processes to earn competitive advantage.
Opportunities
The lower inflation rate will open up more chances for the company to expand, as well
as, the decreased in shipping prices will compel Greggs to invest less on their transportation. Due
to their decrease in sales revenue, they have invested much more in technological
implementation as well as in more research and development to know the customer demands and
market vulnerabilities. Lastly, Government free trade agreement will provide easiness in entering
into new markets and expand in global markets.
Reflection
In this part of the study, there will be reflection based on experience by reading block 1,
using various online tutorials and tutor group forum. The use of Kolb’s reflective model will be
adapted to speculate the experiences in various steps. Kolb’s reflective model has four steps,
which are Concrete experience, reflective observation, active experimentation, abstract
conceptualization.
Concrete experience: Communication is the most important steps while working in a business
environment; it helps in gaining insight into the understanding and thinking of various people,
eventually helping in adapting to the workplace situations. I have adapted researching skills; I
have also understood the value of time management, as learning needs time and investment,
which will eventually help me in acquiring good communication skills. The further learning
helped me in developing my written and spoken communication skills.

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Reflective observation- I have observed that managing time helps in completing tasks in a much
easier and synchronized process (Morris, 2019). The online tutorials and attending the group
tutor forum has brought me much handier knowledge at times of holidays, but according to me
this type of techniques increases the dependency on technology, the research skills gets subsided.
Active experimentation: Therefore, in this case I would like to acknowledge that my
communication skills has quite upgraded by using the online tutorials and by the help of online
tutors (Musingafi et al., 2015). I would like to develop my research skills so that I can
deliberately make further developments to my skill development.
Abstract Conceptualization: I will implement my development in communicating with people
in workplace, develop my relationships to be acknowledged and be acquainted with every type
of people. The development of my research skills will helps me develop my existing skills as
well learn new skills.

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References
Abed, S., Al-Najjar, B. and Roberts, C., 2016. Measuring annual report narratives disclosure:
Empirical evidence from forward-looking information in the UK prior the financial
crisis. Managerial Auditing Journal, 31(4/5), pp.338-361.
Annualreports.com. 2020. [online] Available at:
<http://www.annualreports.com/HostedData/AnnualReports/PDF/LSE_GRG_2018.pdf>
[Accessed 28 March 2020].
dailymail.co.uk, 2020. The Return Of The Pasty Tax: Greggs To Put VAT On Hot Snacks After
Complaints About Food Being Cooled Down To Avoid Levy. [online] Mail Online. Available at:
<https://www.dailymail.co.uk/news/article-2280447/The-return-pasty-tax-Greggs-VAT-snacks-
complaints-food-cooled-avoid-levy.html> [Accessed 28 March 2020].
forbes.com, 2020 Gaining a Competitive Edge By Conducting A SWOT Analysis On Your
Workforce. Retrieved 28 March 2020, from
https://www.forbes.com/sites/scholleybubenik/2019/03/13/gaining-a-competitive-edge-by-
conducting-a-swot-analysis-on-your-workforce/#efcca0f380d7
Greggs.co.uk. 2020. Greggs. [online] Available at: <https://www.greggs.co.uk/> [Accessed 28
March 2020].
money.cnn.com, 2020 Trump's Isolationism Is Bad For Business. [online] CNNMoney.
Available at: <https://money.cnn.com/2017/01/30/news/economy/donald-trump-economic-risk-
isolationism/index.html> [Accessed 28 March 2020].
Morris, T.H., 2019. Experiential learning–a systematic review and revision of Kolb’s
model. Interactive Learning Environments, pp.1-14.
Musingafi, M.C., Mapuranga, B., Chiwanza, K. and Zebron, S., 2015. Challenges for open and
distance learning (ODL) students: Experiences from students of the Zimbabwe Open
University. Journal of Education and Practice, 6(18), pp.59-66.
Pellegrini, N. and Agostoni, C., 2015. Nutritional aspects of gluten‐free products. Journal of the
Science of Food and Agriculture, 95(12), pp.2380-2385.

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Simpson, O., 2018. Supporting students in online, open and distance learning. Routledge.
Statista. 2020. Greggs Sales Growth 2006-2018 Statistic | Statista. [online] Available at:
<https://www.statista.com/statistics/630696/greggs-sales-growth-united-kingdom-uk/>
[Accessed 28 March 2020].