Greggs PLC Strategic Analysis Report: Company Overview and Analysis

This report provides a comprehensive strategic analysis of Greggs PLC, a prominent bakery chain in the United Kingdom. The analysis begins with an overview of Greggs PLC, detailing its history, structure, products, commercial operations, and market presence. The report then identifies and analyzes key competitors such as Pret A Manger and Costa Coffee, examining their strategies and impact on Greggs' market share. A significant portion of the report focuses on the strategic positioning of Greggs PLC, employing both SWOT (Strengths, Weaknesses, Opportunities, and Threats) and PESTLE (Political, Economic, Social, Technological, Legal, and Environmental) analyses to evaluate the company's internal and external environments. The SWOT analysis highlights the company's strengths, such as its large market share and experienced management, alongside its weaknesses, like traditional business strategies and ineffective digital marketing. Opportunities include leveraging digital marketing and enhancing decision-making skills, while threats include increasing competition. The PESTLE analysis examines the impact of political, economic, social, technological, legal, and environmental factors on Greggs' operations. The report concludes that Greggs PLC holds an excellent strategic position in the market and provides recommendations for future growth.

STRATEGIC ANALYSIS

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Overview of Greggs PLC............................................................................................................3
Competitors of Greggs PLC........................................................................................................4
Strategic Positioning of the Company.........................................................................................5
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Strategic analysis is very necessary task to a venture, business or company, because strategic
analysis enables to a company for developing different productive business strategies within its
workplace. Currently top-level management within every company has focused on
systematically analysing own strategic environment as well competitors’ strategic environment.
According to various business experts, it is very necessary task to every company or business for
analysing own strategic environment, because analysing a company can simply identify various
weaknesses and strengths of own business strategies. This report discusses the strategic analysis
aspect of Greggs PLC. This is basically a popular bakery chain of the United Kingdom which
currently has very large market share within the United Kingdom’s bakery market. Headquarter
of this company is in England, United Kingdom.
MAIN BODY
Overview of Greggs PLC
Background:
Greggs Plc started 70 year ago with purpose of serving Newcastle people with fresh eggs
and yeast (Ajmal and ul Ain, 2017). In the span of seventy year it becomes one of leading
Bakery chain in UK with 1700 shop across the country.
Structure:
Company has more than 25000 employees trained staff with best management. With the
advancement of technology company delivered it services online to the customers. Company
staff includes IT engineer, workers, LGV drivers and to control all the workforce has Manger.
Products:
Company offers variety of product and services to the customer that includes breakfast,
sandwiches, bakes, sweet treats, drinks and snacks. Company sell fresh meals to the consumers
hence attract large number of customers.
Commercial operation and Market:
There are number of commercial operations of the Greggs PLC. Brand management is one of the
important commercial operation of the company, with the advancement of technology company
use digital marketing as we as media to attract large number of customer. With changing test and
trend company invested in innovation for example introducing fresh and organic meal increase
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the growth of organisation. Product management is one of the important part of commercial
operation in this organisation, in this organisation maintain quality of the product with the help
of feedback of customers and quality management team (Meena and et.al., 2019). Marketing
management helps in maintaining customer as well as investor relation, organisation
management team takes feedback and analyse competitiveness to suggest the organisation in
process change. Marketing team is mediator between customer and organisation so building
relationship through different loyal customer offers and discount given by the company. Training
and development program is time to time introduce in the organisation for skill and talent growth
of the employee hence increase efficiency, quality and productivity.
Competitors of Greggs PLC
Pret A Manger and costa coffee and Greggs Plc is one of the leading chains in UK.
Choosing Pret A Manger and costa coffee for the competitors is because of market share with
Greegs Plc and another reason is providing similar kind of products. In the globalization and
welcoming new company in the UK government gives opportunity to Pret, its primary Moto is to
sell fresh made food and organic coffee. Organic coffee concept increases its market value and
unique image across the concept of the country which influence large number of Gregg’s
customer and hence decrease its market share. Pret also created image of responsible company
by selling unsold food to poor people of the country and this concept again created unique brand
among the citizens of UK and hence such kind of concept again target large number of Greggs’s
customers (Felício and Freire, 2016). Company portray strong image among the citizen of UK by
providing funds to next generations of the farmers and hence gain loyalty of all class of United
Kingdom.
Another competitor of Greggs in the British market is Consta coffee. From the very
beginning consta attracted large number of investors in UK as well as different part of the world
whereas Greggs limited to United Kingdom and hence not able to become a global brand. Test
and Trend of UK changes with time, again consta take it as opportunity and design its product
according to young as well as old generation. It introduce different flavour of the same coffee so
customer has variety in choosing which was less available in Greggs and hence loss of large
number of customers. It created its premium image among customers hence increase it’s profit.
With the help of advancement in technology company provides best facilities to the customers
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and regular up gradation of it with trained staff. Company has a large capital hence invested in
digital marketing, media and other sources to attract large number of customers on the other hand
Greggs limited financial resources not give chance for growth.
Strategic Positioning of the Company
Greggs plc is one of the leading bakery firms within the United Kingdom which is
serving from the last 81 years to date in its home country United Kingdom. Most business
strategies which has adopted and used by this company are very effective in nature. Generally,
this company believes in providing the quality services to various customers in the market, this is
the main reason that from establishment to date, it is conterminously raising its profit margins in
its business environment (Werner, 2018). Top-level management of Greggs company has
succeeded in maintaining an excellent strategic position in the market. For systematically
analysing strategic position of the company, there are two appropriate models or tools has based
below called; SWOT analysis and PESTLE analysis. These both tools are fully efficient to show
the strategic position of Greggs plc in the market.
SWOT analysis
It is very helpful tool for different companies of businesses, because SWOT analysis tool
shows key internal factors of a company’s business environment. This tool generally shows four
internal factors called; strengths, weaknesses, opportunities and threats, so that all factors are
enough to a Greggs for properly systematically analysing own strategic position in the market.
These key factors of SWOT analysis have been mentioned below;
Strengths
Currently this company has very large market share within the United Kingdom’s bakery
market, so that it is the first strength of company. Top-level management of this bakery firm has
great experience of different organisational situations, because this company was established ion
1939, so that it has completed time period of over 81 years in the market. That’s why it
completely knows how to deal with different competitors in the market (Doktoralina and Apollo,
2019). On the other side, it has workforce of lots of effective employees, these employees have
different productive skills and talent which positively affect to the business environment of
Greggs in the UK’s bakery market.
Weaknesses
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Greggs’ bakery has different weaknesses as well. For example; existing management of
this company is efficient to take appropriate decisions in its business environment. Basically,
upper management of this company some times takes such decisions which negatively affects to
this company’s business operations. On the other side, top-level management of this company
still using various traditional business strategies within its workplace or business operations, so
that these business strategies are not providing much better results to Greggs bakery in the
market. The marketing team of this company using digital marketing strategy, but not in
effective manner, so that administration at Greggs should be taken some quick actions towards
removing these all weaknesses from its workplace.
Opportunities
Currently this company has various opportunities that top-level management of this
company should be considered for positively affecting own business environment. For example;
there are Greggs company has opportunity to adopt and use digital marketing strategy for
effectively influencing various customers or people within the market in this dynamic. Of course,
nowadays marketing team of this bakery firm considers this strategy but not in the effective
manner (Hu and Zhou, 2020). This is the main reason that, it has great opportunity to positively
affecting various customers in the market by using digital marketing strategy. The next
opportunity to Greggs plc’s upper management to take different effective decisions by
developing own decision-making skills. Existing management of this company should be fully
considered these all opportunities for effectively influencing own business operations.
Threats
Continuously increasing competition in the UK’s bakery industry or sector in the main
threat to Greggs company. It is really big threat to company, because this threat contributes in
decreasing the sales ratio of company in the market. Currently Finsbury food group, Pret a
manger, Costa coffee, Morrisons, Iceland foods ltd, Grupo Bimbo etc. companies are giving very
tough competition to Greggs in the market. Of course, top-level management of Greggs taking
various productive steps towards developing its business strategies for gaining excellent profit
and competitive advantage in the market.
PESTLE analysis
PSETLE analysis is also too effective framework or tool that supports to various
organisations or companies to perfectly analysing various market places. This tool mainly shows
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six main external factors of various venture’s business environment that influences a business in
both ways positively or negatively (Gendron-Saulnier and Gordon, 2017). So that, the
management of Greggs also need to take some proper decisions for using this tool in own
business operations to analysing six main external factors, like; social, political, legal, economic,
environmental and technological, so that these all six factors have been mentioned below.
Political factors
Political factors of the United Kingdom are too much favourable to the Greggs, because
government of this country mainly supports various businesses here. According to the
government, businesses always gives its great contribution in the development economy. That’s
why charges very less interest rate through different businesses, in which upper management of
Greggs also has not required to give very high fund in the form of taxation. However, this bakery
firm has required to fulfil different formalities which has offered by the local government of UK.
Economic factors
Economic factors of the UK also highly impact the business operations of Greggs within
the market. Suppose the Gregg’s home country United Kingdom is positively influencing this
company, because the UK has very well-developed conditions of economy (Luo, Chen and
Wang, 2016). Nowadays this bakery business can easily sale own various bakery products within
this market of own country, because many of people in the United Kingdom has very high
standard of living, and these people can be easily afforded services or products which has
provided by Greggs.
Social factors
Social factors of this country also too positively influencing this bakery firm in the
market place, because these factors of the UK are fully appropriate to Greggs. Most people of
this country mainly believe for purchasing only such services and products which has an
excellent quality. So that, company should be completely focused on developing quality products
and services to different customers or people. On the other side, it should be focused on fulfil its
CSR (corporate social responsibility as well.
Technological factors
Technological factors will support to Greggs for increasing its performance within the
market. Generally, technological factors are very appropriate to Greggs in this country, because
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by adopting many of technological gadgets and machineries this business can easily increase its
productivity & performance within the UK’s bakery industry or market.
Legal factors
Top-level management at Greggs responsible for adhering different legal & ethical
considerations in own workplace during running own business activities in this country
(Glushchenko, Yarkova and Kucherova, 2017). There are local government of UK has
formulated many legislation, regulations and standards which management of Greggs need be
adhere in own
Environmental factors
These environmental factors impact Greggs’ the management to take some productive
steps for protecting natural environment. Basically, Greggs’ existing management need be
ensuring that, it’s every activity of business is not harming natural environment. Through con
considering regulation of environment, Greggs can be simply protected natural environment.
CONCLUSION
It can be concluded that there is existing strategic position of Greggs company is very
excellent in the market. Top-level management of this bakery firm has succeeded in making its
various business strategic, and this is the main reason that, currently this company has very large
markets share within the UK’s bakery market. For analysing the existing strategic position of this
company there are two main tools SWOT and PESTLE has been used above in this report
(Ahammad, Glaister and Gomes, 2020). There are top-level management of Greggs should
understand one thing that, competition in the UK’s bakery market is continuously increasing, so
that existing management of company should be focused on making some productive business
strategies for gaining very highly competitive advantage and profit margins in the market.
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REFERENCES
Books and Journals
Ahammad, M. F., Glaister, K. W. and Gomes, E., 2020. Strategic agility and human resource
management. Human Resource Management Review. 30(1). p.100700.
Ajmal, W. and ul Ain, B. N., 2017. Role of strategic thinking in corporate identity. AARMS–
Academic and Applied Research in Military Science. 16(1). pp.89-97.
Doktoralina, C. and Apollo, A., 2019. The contribution of strategic management accounting in
supply chain outcomes and logistic firm profitability. Uncertain Supply Chain
Management. 7(2). pp.145-156.
Felício, J. A. and Freire, C. R., 2016. From customer motivation to corporate performance. The
role of strategic factors and distribution channels of financial service firms. Service
Business. 10(1). pp.135-157.
Gendron-Saulnier, C. and Gordon, S., 2017. Choosing between similar and dissimilar
information: the role of strategic complementarities. Working Paper.
Glushchenko, A. V., Yarkova, I. V. and Kucherova, Y. P., 2017, December. The Role of the
Ecologically-Oriented Accounting Systems from the Perspective of Minimizing the
Strategic Risks in Terms of Ecologizing the Production. In Perspectives on the use of
New Information and Communication Technology. (ICT) in the Modern Economy. (pp.
741-747). Springer, Cham.
Hu, F. and Zhou, Z., 2020. Monopoly or competition: strategic analysis of a retailing technology
service provision. Electronic Commerce Research. pp.1-39.
Luo, Z., Chen, X. and Wang, X., 2016. The role of co-opetition in low carbon
manufacturing. European Journal of Operational Research. 253(2). pp.392-403.
Meena, S. R., and et.al., 2019. Strategic analysis of the Indian agri-food supply
chain. OPSEARCH. 56(3) pp.965-982.
Werner, H., 2018. If I’ll win it, I want it. The Role of Strategic Considerations in Explaining
Support for Direct Democracy. In ECPR joint sessions, Location: Nicosia.
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