Strategic Investment Impact on Business Success: A Greggs PLC Study

This report analyzes the impact of strategic investment on Greggs PLC, a UK-based bakery and food-on-the-go retailer. The study explores the company's strategic decisions, particularly the £100 million investment program initiated under CEO Roger Whiteside, which aimed to transform Greggs from a traditional bakery into a food-on-the-go business. The report examines the advantages of strategic investment, such as brand repositioning, supply chain ownership, product adaptation, and store modernization. It also addresses potential challenges associated with implementing these strategies. The research employs various methodologies, including literature reviews and data analysis, to assess the effectiveness of strategic investments in enhancing business capacity and achieving overall organizational goals. The report provides insights into the strategic investment context, advantages, and challenges faced by Greggs PLC, offering recommendations for future strategic planning and investment decisions, with a reflection on the research process and alternative methodologies. The conclusion summarizes the findings, emphasizing the importance of strategic investment in adapting to market changes, improving competitiveness, and ensuring business success.

HOW A WELL-DEVELOPED
STRATEGIC INVESTMENT CAN
TRANSFORM A BUSINESS INTO A
COMPLETE SUCCESS

Table of Contents
CHAPTER 1: INTRODUCTION...................................................................................................................................3
1.1 Introduction...........................................................................................................................................................3
1.2 Background of the organisation............................................................................................................................3
1.3 Overview of Topic................................................................................................................................................4
1.4 Research focus......................................................................................................................................................5
1.5 Research structure.................................................................................................................................................6
CHAPTER 2: LITERATURE REVIEW........................................................................................................................8
2.1 Introduction of literature review...............................................................................................................................8
2.2 Literature Gap.......................................................................................................................................................8
2.3 Strategic investment in context of an organisation...............................................................................................8
2.4 Advantages of strategic investment in improving business capacity of Greggs’ PLC.........................................9
2.5 Challenges that may face by Greggs’ PLC while using strategic investment technique in transformation of
their business workings.............................................................................................................................................11
CHAPTER 3: RESEARCH METHODOLOGY..........................................................................................................13
Research Approach...................................................................................................................................................13
Research Philosophy.................................................................................................................................................13
Research Choice.......................................................................................................................................................14
Research Strategy.....................................................................................................................................................14
Time horizon.............................................................................................................................................................14
Data collection..........................................................................................................................................................17
Sampling...................................................................................................................................................................17
Ethical consideration.................................................................................................................................................17
CHAPTER 4: RESULTS/ FINDINGS.........................................................................................................................18
CHAPTER 5: RESEARCH OUTCOMES...................................................................................................................31
CHAPTER 6: CONCLUSION AND RECOMMENDATION....................................................................................33
Conclusion................................................................................................................................................................33
Recommendations.....................................................................................................................................................33
CHAPTER 7: REFLECTION AND ALTERNATIVE METHODOLOGY................................................................34
Reflection..................................................................................................................................................................34
Alternative Methodology..........................................................................................................................................35
REFERENCES.............................................................................................................................................................36

CHAPTER 1: INTRODUCTION
1.1 Introduction
In this competitive business world, a business survival depends mostly on how the
company learns and knows to adapt to continually changing market, customer behaviour,
economic and political environment. Retailer businesses are facing now big challenges and has
undergone significant changes with consumers’ become more sophisticated in their choices,
competition get more intensified and new technologies.
A recentstudy made by PwC and the Local Data Company, shows that 1,234
stores of the British first five hundred high-streets were closed in the first six months of 2019.
Fashion retailers, followed by restaurants and pubs, met the biggest decline (Akdil, Ustundag and
Cevikcan, 2018).Lisa Hooker, consumer markets leader at PwC, mentions that retailers should
make their stores more relevant to today’s consumer. It is a suggestion that there is an increasing
necessity for businesses to adapt to new market environment, and often this involves making
afferent investments accompanied by efficient long term business and functional strategies.
Because cultural, technological and economical factors change, businesses must accept
these changes and adopt and follow a strategic plan. Johnson (2017) defines a strategic planas
asystematic analysis and exploration to develop an organization’s strategy. A functional strategy
is the one that defines how the components and resources of an organisation to deliver
effectively business level strategies in terms of resources, people and processes. Effective
strategies will imply, most of the time, some level of investment in business’s capital or assets.
Investment is considered to be a compulsory element of a functional strategy. Kaplan (2001)
describes investment as an input of resources with the aim to gain future profits. It involves
commitment of resources in the hope that some benefits will arise in future.
1.2 Background of the organisation
Greggs’ PLC is the UK number one bakery and at the same time food on the go retailer.
Greggs’was first opened in 1939 by John Gregg.Initially it was operating as a bakery.Only in
1951,first Greggs store was opened. Until 2013, Greggs’ main product line was bakeries and
pastries.Company mainly specializes in selling of savoury products such as sausage rolls,
sandwiches, backed goods and sweet items including vanilla slices and doughnuts. The number

of shops grew over time, but the main expansionwas as a result of the acquisition of other
bakery stores across in UK, including the purchase of Bakers Oven, in 1994,
company’sfirstcompetitor, Bakers Oven (Greggs, 2019). The downwards direction of the
company was changed in 2013, when Roger Whiteside became CEO (BBC, 2014). Under his
directive the company made a lot of amendments in its customer approach, bychanging its
specialization mainly as a bakery to “food on the go” market.
Now the company has 6 centers of excellence and the company has just inaugurated its
2,000th store. The number of employees is over 22,000 and weekly 6 million customers are
being served (Greggs.co.uk, 2017).In 2013 Roger Whiteside was appointed as a new Greggs’
CEO. Under his management Greggs has decided to undertake a £100 million major investment
program, lasting for the next 5 years. The scope of this investment was to create a new Greggs
and leave behind the decentralized traditional bakery into a new, centrally run food-on-the-go
business. The major purposes of this program were:
- Brand reposition. Creating a new image of the company, leaving behind the take-home
food position and develop a food-on-the-go strategy.
- Development and gaining the ownership of their supply chain. An important aspect in
business centralization program was the creation of centers of excellence both in
manufacturing and distribution channels.
- Changing and adapting Greggs’ range of products in line with the new consumers
preferences,
- Modernization and renovation of Greggs’ store.
1.3 Overview of Topic
This project is based on strategic investment and its impact on business success. Strategic
investment introduces as a transaction that is directly related with joint venture. It is an effective
technique, in which an individual organisation makes an investment in another organisation
(Appiah-Adu, Okpattah and Amoako, 2018). These two organisations enter into a written
agreement to serve shared goals. In addition, strategic investment means investment by an
organisation that is planned to make it much more successful over time, for instance investment

in a new company that provides new market or that is implementing new products. Investment is
an essential modern technique that needs to use Greggs’ range for expanding their business and
raising capital. This is needed to enlarge the business, to become competitive in term of quality
of product, technology and to fulfill customer’s needs and market demand.
There are different advantages and disadvantages of using strategy investment, and their
impact on overall success of Greggs’ range. One of the main benefits of well-developed
strategic investment is it decrease the risk and provides an effective chance for diversification of
capital. As it turn to support an organization by increasing their returns and profitability. One of
the biggest drawback of strategic investment is it tend to be large and thus investment process
consumes maximum time (Damhuis, 2019).
1.4 Research focus
Aim of the research
Main aim of this research is to identify the role of well-developed strategic investment in
transformation of business capacity to accomplish overall organisational activities. A study
on Greggs’ PLC.
Objectives of the research
 To develop basic understanding about the strategic investment in context of an
organisation.
 To identify the advantages of strategic investment in improving business capacity
of Greggs’ PLC.
 To analyse the challenges that may face by Greggs’ PLC while using strategic investment
technique in transformation of their business workings.
Research questions
 Explain about the strategic investment in context of an organisation?
 How well developed strategic investment helps Greggs’ PLC in transformation of its
business capacity to high standard working?
 What are the several challenges that may face by Greggs’ PLC while transforming their
business workings through use of strategic investment technique?

1.5 Research structure
This is an important part of project as it helps reader in identification of information about the each
chapters required to complete dissertation. These chapters will be explained as below:
Introduction: This is a first part of the report that includes overview of the topic, background of the
organisation, research aim, researcher objectives, research questions and many other sub activities. These
activities support reader in identification of main purpose and importance for doing this investigation
(Guadaim, 2019).
Literature review: This is another main activity that is completely based on secondary sources.
These sources are books, magazines, articles, journals, publication research etc. All these are considering
most useful sources under this section. As these provides detailed and in-depth information about the topic.
Main purpose of this section is to find out the gaps in previous study.
Research methodology: This section of the dissertation helps reader in identification of best method and
approaches of data collection. Under this part of the report, researcher will require number of methods such
as qualitative and quantitative method, primary and secondary sources of data collection, sampling
techniques, research approach, research philosophy, time horizon etc. These are main layers of research
onion framework that will be used by researcher for completing research methodology section in systematic
and effective manner (Li and et. al., 2019).
Data collection and interpretation: This activity of the report is based on data collection and data
analysis. For collecting information regarding the topic, questionnaire will be used because it facilitate in
collecting of valid and quantitative data. In order to analysis quantitative data coding will be followed
because it support researcher in making of patterns on each and every questions.
Conclusion and recommendation: This is a main part of the project that include entire summary of
the report. This section helps reader to identify research aim is achieved or not. Along with this, conclusion
and recommendation of the project is mainly related with the research findings (data collection and
interpretation). As it support in completion of each activities of dissertation in effective manner.
Reflection and an alternative research methodology: Reflection statement will be develops by an
individual for exampling their experience and overall journey in performing current project. Alternative

methodology is a part of methodology that is suggested to the researcher to could use in future. Interview is
considered as an alternative methodology that will be used in further research (Ma and Jin, 2019).

CHAPTER 2: LITERATURE REVIEW
2.1 Introduction of literature review
This section contains a literature review of the main aspects that have defined Greggs’
corporate strategies. The information has been collected from books, journals, internet sources
and defines the concepts of corporate strategy, vertical integration and ownership of the supply
chain, customer experience under store refurbishment strategy undertaken by the company,
product development, and new era technologies. With the help of literature review, researcher
can easily address each objectives and questions of the project (Marinova, 2018).
2.2 Literature Gap
Main reason behind doing this research is to fulfil research gaps. Main gap of this
research is to identify the role of well-developed strategic investment in transformation of
business capacity to accomplish overall organisational activities. According to the past data,
researcher is identifying the importation about the strategic investment but they not find out its
importance within an organisation. Therefore, with the help of this project, researcher can easily
analyse role of strategic investment and also challenges associated with the strategic investment
(Rodríguez-Pose and Wilkie, 2019).
2.3 Strategic investment in context of an organisation
According to the Sequeira and et. al., (2018), Strategic investment is an effective term
that is applies to two distinct methods for interest in the monetary world. The first is when an
individual or a company invests with the goal of generating safe, steady returns, usually with the
advice of a consulting company, which keeps up with trends in the market and addresses the
needs of the customer. In the second instance, it applies to an organization's choice to put
resources into another, smaller organization, normally a start-up, in view of long term strategy,
instead of basic benefit. Strategic investment is frequently used to raise capital and validity for
new organizations which are struggling to advance in the market. Bigger organizations make key
interests in small ones for a variety of reasons such as investment is made in light of the fact that
the smaller organization makes comparable items, smaller organization may in the long run

become a customer of the larger organization, small business may be taking a shot at new and
creative innovations and thoughts etc. These are biggest reasons for using strategic investment
that helps an organisation in development of its success and growth at marketplace.
Strategic investment provides the contributing organization access to assets or resources
at a genuinely minimal effort. For example, when the targeted organization's business is to create
technology or innovation, which the contributing organization find helpful, the latter can create a
strategic investment in the previous organization as opposed to building up its own innovation.
This will diminish the expense of building up that innovation or technology to a better extent.
For the contributing organization, an investment is normally made in return for a portion of
authority over the organization. This permits the organization to ensure its venture, and to shape
the way of the small business’s and product offerings (Szilagyi and et. al., 2018).
On the other hand, the way toward recognizing and assessing different key strategic
investment could be costly, time consuming and complex. The larger organization may
communicate a wish to assume control over the littler organization at some point in the future,
when the small organization has proved itself practical and beneficial. On the off chance that the
smaller organization neglects to keep up to its understanding because of any explanation, there is
consistently the risk of the strategic investment being pulled out.
2.4 Advantages of strategic investment in improving business capacity of Greggs’ PLC
As per the view point of Furtado (2016), strategic investment is an exchange which is
securely identified with joint venture. In this technique, one organization makes an interest in
another organization. These two organizations go into consent to serve shared objectives.
Strategic investment is needed or required by Greggs’s Plc for improving their business capacity.
As raising investment or capital is a significant up to date technique to open or enlarge the
company. This is necessary for company to expand their business capacity, to stay competitive in
form of technology, innovation, quality of goods& to satisfy need and requirement of customer
and market. Along with this, decision making regarding strategic investment includes the process
of finding, evaluating and choosing among projects that are possible to have a positive impact on
the business. It is extremely competitive environment; globalisation is a particularly attractive
strategic investment for entire kind of organisation like Greggs’s Plc. On the other hand, making

the effective decision of globalisation, like many other investment, is more risky because of high
uncertainties involved it. Also, (SI) is able to help corporates so that they easily acquire efficient
resources and manpower which will help them in enhancing their productivity as well as
progress level of business in this era of competitive market. While going with SI, it is essential
that firm should be able to make effective decision making regarding investment and other
management concepts in firm so that acquired resources does not get wasted. Other than this,
when focusing on strategic investment HR manager of the company need to be able to identify &
examine the risk associated with investment and strategy so that money as well as time is saved
and which can be used in other areas. In relation with Greggs, they use this SI in order to achieve
goals & objectives in proper manner. Management and structure of organisation adopts the
change according to the demand and requirement of strategic investment. So, numbers of people
are involved to make this and achieve the result within a period of time. Along with this, there
are number of advantages of strategic investment in enhancement of Greggs’s Plc business
capacity. Some advantages will be explained as below:
 Strategic investment isn't constrained to budgetary venture as here the financial specialist
searches for considerably more and it is a long haul vision and objective.
 The brand is acquired readymade and instantly.
 It encourages the Greggs’s Plc to get built up advertise, established market, ability labour
at removal and one can directly obtain the platform of set up innovation, technology,
customers and sellers.
 It diminishes the hazard and gives an open door for enhancement of store for augmenting
return for the Investing Company.
 It also supports Greggs’s Plc to enhance its value or importance in the case listed in stock
market (Appiah-Adu, Okpattah and Amoako, 2018).
 Strategic investment also assists Greggs’s Plc to acquire fund or capital for the motive of
enlargement of business capacity and profit.
 This technique also provides freedom to a Greggs’s Plc to enlarge and accelerate their
business capacity via the investor’s distribution network, infrastructure, sales and
marketing.

 With help of strategic investment, business of Greggs is expanded at wider and broader
level which also leads to exploring of more opportunities and customers with new
methods and techniques.
 Also, to get the best investment strategy some firm hires the strategic investor which
helps them to make appropriate choice regarding the strategies which are to be applied
throughout in the functions as well as operations.
 Moreover, there are some investors who are ready to bear the profit as well as risk in
selected strategy and this result in positive relationship between both the parties.
 Strategic investment also helps in providing help of investors when needed and can be
used other activities of business too. (Steinbach, 2017)
 Further, in investment there are ample numbers of SI such as small cap investing, socially
responsible investing, growth investing etc. Hence, Greggs has different choices of
selecting the strategy which is suitable to entity.
 This also motivates corporation to find and explore more investors so that fund is raised
for business operations and functions.
 It also attracts other sources to invest in strategy investment because of better rate of
return and higher profit scale (Hermoso, 2017).
Therefore, above mentioned all these are determined as main advantages of strategic
investment that helps an organisation in improvement or enhancement of its success at national
as well as international level. Measurements are also done accordance with SI and which
managers and leaders of the company make ensures that everything is done in systematic & in
proper order. Thus, proper market research, techniques and approaches has to be used to select
the right strategic investment. It is a time consuming process and which is to be used and
operated by superior authority so that issues as well as challenges related to SI are handled and
managed easily.
2.5 Challenges that may face by Greggs’ PLC while using strategic investment technique in
transformation of their business workings
According to the Tu and et. al., (2018), the decision-making process of strategic investment
is one of the biggest challenges for the upper level management of Greggs’s Plc. There is a
significant requirement to obtain these decisions accurate. However, if the decision of strategic