Business Development: A Case Study of Home Foods in the UK Food Market

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PRESENTATION CASE STUDY – HOME FOODS (HF)
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Table of Content
Introduction......................................................................................................................................3
Background of the company............................................................................................................4
Market position................................................................................................................................5
Competitive analysis between Home Foods and Whole Foods Market in UK...............................8
Strategic Plans...............................................................................................................................10
Conclusion.....................................................................................................................................11
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Introduction
In order to operate any business it is important to maintain the positive position in the market.
This position enables an organization to operate with smooth functioning. Considering the
position that are required to be maintained in the market and the major factors that are essential
to follow while operating business in the competitive market is all discussed below with
reference to the company Home Foods, UK. The complete structure that serves as the essence of
the business unit is all explained. Competitive analysis stating the effectiveness of the business
unit and different options selected by the organization are clearly explained throughout this
presentation.
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Background of the company
One of the rapid growing food industries engaged within wholesale market and food distribution
in the entire Manchester is Home Foods in UK. The respective company deals in wide range of
homemade delicious scones and cakes. For the special occasions, cold and hot buffets are also
one of their specialities in this field. In additions to all this, they deal in sporting teas for the
evening presentations and matches. Many more are the services that are provided by the
company Home Foods, UK at a reasonable range. With respect to maintain the quality of the
products and services, Home Foods, UK is one of the best selling and demanded food markets in
the Manchester.
However, any issues related to external business and internal business environment can never be
predicted (Clapp and Scrinis, 2017). Economically the position is stable, if any kind of inflations
occurs there are a bit risk and a point of consult can be seen. The English cuisines that are
adopted are very traditional and are appreciated by all its customers. The quality of the food is
always maintained giving the priority to the hygiene. This feature of maintaining the quality of
the food for all the time is the huge reason for its success in the market. The demand
automatically increases on a regular basis if the company maintains its effective and efficient
method of productivity. Home Foods, UK understands how much food is crucial to life
(Bortolini et al., 2016). The waste foods are never supplied to the customer creating a loyalty
based relationship with the customer.
Market position
Home Foods has experience a tremendous growth in a sales volume during the period of 2005 till
2008. In order to meet the increasing demand of goods and services in the market they have
commenced a plan on ambitious expansion in 2009 (Veselovsky et al., 2015). Not only this, the
company has also formulated its website in a complete updated technology so that the people can
receive an exact knowledge of the goods and services they are dealing with.
Positive aspects
● Increasing demand
During the time of its formation, the suppliers were relatively low that leads to good monopoly
market between the time span of 2005 to 2009. The company enjoyed a tremendous growth to
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the overall economic market of the food distribution (Migliore et al., 2015). In addition to the
quality, service provided by the company, high scales of potential customers are engaged
towards Home Foods, UK.
● Quality product
The main objective of Home Foods, UK is to earn profit as well as expanding the food
distribution market by supplying quality products and services to potential customers. Hence, the
company focuses mainly to its quality that they supply to achieve its goal and target overall. Not
only earning profit but also the customer satisfaction was also the main aim of the company is
order to operate its business in the food distribution market.
● Quality services
As explained above about the aim and objectives that are crucially followed by the company,
Home Foods, UK highly maintains the quality of its products as well as services in the market
(Forssell and Lankoski, 2015). The company follows the strategy of increasing the standard of
goods and services that leads to high customer satisfaction in the market of food distribution.
● Advanced website
The company has also advanced its functions with aspects to the updated technologies that are
commonly followed by every business unit to expand its business. A high profile website is been
created that enables to get accurate knowledge to the potential customers about the kinds of
services Home Foods, UK deals in and the goods they supplies in the market. The website states
all the details that are crucially important about the company to be known by the ultimate
customers. Thus, in addition it served as the identity as well as invitation card to the company
that attracts the potential customer.
● Protective packaging
Although Home Foods, UK less focus on the formatting of the packaging and designing part of
the product. However, the packaging is done by taking in consideration to the protections of the
goods. The company for the packing unit takes basis initiatives but focus arises to maintain
quality based products and services (Giampietri at al., 2016). As Home Foods, UK has already
established a stable market in the field f food distribution the packaging designs does not really
effects their ultimate consumers as the main item that is the quality is checked to the high rate.
Negative aspects
● Increase of competition
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Due to the arrivals of the new fast foods companies the expansion growth of the Home Foods,
UK drastically reduced. The new suppliers and distributor of the foods market started overtaking
the major market using the strategies of fashionable packing that appears more attractive
comparative to the Home Foods, UK products. The quantity of fast foods suppliers and food
distribution market are highly dominated by the Home Foods, UK. Thus, the market growth of
these fast food suppliers increased steadily.
● Aggressive marketing strategies
The competitors in a very small span adopted aggressive methods to expand the market of food
distribution. Capturing the market shares was one of the strategies that are adopted by the
competitor’s in order to defeat Home Foods, UK growth in the food market. In addition to the
above point, the competitors started supplying their goods and services at the price that is below
the breakeven point. As the result the demands for the fast food market drastically increases, in
order of comparing the price from the Home Foods, UK. The qualities that are supplied by the
competitors were not upto the certain level (Imbert and Papp, 2015). However, due to less price
rate of the goods and services the business of the competitors rapidly increased.
● High rate of salary
One of the factors that are affecting to the profit of the Home Foods, UK is the rate of salary that
is paid by the Home Foods to their employees. The rate of the salary was respectively high
irrespective to the normal average salary. This leads to the increase in the cost of the productivity
overall, left with less profit by the company. However, the employees that are appointed by the
company are adequate in accordance to the requirement, and so the high charge of the salary is
not the major disadvantages to the company to the whole.
● Workers disabilities
Sometimes the conditions arises that the workers are not performing in their most effective and
efficient manner. This results in the decrease in the level of productivity of the operation in an
organization. The efficiency level of the employees have seen very enthusiastic at the beginning
of the company, but with the passage of time the level of energy within the workers are not
matching to level that are required to be maintained. Although the company tries it best to
maintain the level and standard of its products compare to its other competitors.
● Price of inputs
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The increasing price of the input has implemented profit reduction for the company. With the
passage of time the prices of the material as well as inputs keeps increasing which leads to the
increase in the cost of production. The main objective of every organization is to maximize their
profit by minimizing the overall cost of their productivity. In order to overcome this cost
company is required to alternate its planning process to the department of productivity.
Competitive analysis between Home Foods and Whole Foods Market in UK
● Variety of products
The number of varieties that are offered by the Whole Foods are relative high irrespective to the
Home Foods, UK (Belenzon and Tsolmon, 2016). In the broader market of food distribution, the
customers are very much attracted towards the varieties. The chance to choose lead the ultimate
customer fall for the company offering wide varieties of products and services to them.
● Quality maintained
No doubt, the quality that is maintained by the Home Foods is superb comparative to any of its
competitors in the food distribution market. Although the quality check results are not against the
Whole Foods but the top rank place is still occupied by the Home Food, UK.
● Market position
Due to the increase of the competition in the market, the Home Foods are running relatively back
to its other competitor market suppliers. Lack of variation to offer is one of the major cause
leading to the backwardness of the company Home Foods Compare to the Whole Foods market
in UK.
● Marketing location
Home Foods location is only stated to the Manchester, a part of UK. Whereas Whole Foods are
performing their business activities to Lavender Hills in UK, Parkway London, George Street
London and more four locations are occupied (Kharabsheh et al., 2015). Spreading of the
business is the important steps that are highly required to initiate by Home Foods.
● Financial position
The current financial position of the Home Foods is not good. Due to the new challenges that is
faced by the Home Foods and running bad position of financial impacting a negative remark of
the company in the food distribution market (Fleisher and Bensoussan, 2015).
● Promotional factors
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In order to promote the business Whole Foods took much initiative illustrating like distributions
of pamphlets, displays of posters and so on. However, no such measures are taken in respect of
promotion by the Home Foods. However, the Whole Foods website is more attractive
comparative to the Home Foods.
Home Foods, UK is running comparatively back in compare to the other food distributors in the
market (Noe et al., 2017). It is mandatory to gain its previous position in the market, which will
be possible only by adopting the new and advanced method of marketing.
Strategic Plans
Activities that are used by every organizations management in order to set priorities, resources,
strengthen operation, focus energy and so on are some of the part of strategic planning (Manning
and Soon, 2016). Strategic planning is structured to achieve the main object of the company.
Some of the strategy that is required to be followed by the Home Foods is:
● At first a proper plan need to be design in order to achieve the market of the food
distribution (Cohen and Ilieva, 2015). Home Foods need to set its level of priority and
apply it energy to the most required zone of the production.
● The company as whole needs to focus toward the common objective that is decided by
the organization during the time of its commencement.
● It needs to establish affective disciplined fundamental decisions in order to work
appropriately with the changing environment (Berti and Mulligan, 2016).
● Effective planning of strategies is not only to focus on the area where the progress is
required; rather it works on the overall activity of organizations.
● The proper management of resources, allocation of capital, effective labour force are
required to be maintained to succeed in the economic market (Ivert et al., 2015).
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Under laid is the estimated cost of the current pay bill that is budgeted for the respective
company:
Cost of current pay bill
Particulars Amount
(£)
Adjuste
d
amount
(£)
Total
amount
(£)
Co-Managing Directors (2)
Add: Bonuses (30% of £120,000)
£240,000 £144,000 £384,000
Directors (2)
Add: Bonuses (30% of £80,000)
£160,000 £48000 £208,000
Managers (4)
Base salary: £40,000
£160,000 £160,000 £160,000
Supervisors (4)
Base level: £30,000
£120,000 £120,000 £120,000
Operatives (45)
Base level: £7.70 per hour (for a 40-hour week)
£55440 £55440 £55440
Total
(salary+bonus)
£927440
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10% reduction by shareholders £92,744
Contribution of 10% of base salary to pension scheme
(10% of £735,440)
£73,544
Total
(reducing the pension scheme and shareholders’ share)
£761,152
Conclusion
From the above study, it has been concluded that Home Foods, UK is running relatively poor in
the field of food distribution market. The proper updating with respect to the effectiveness of the
employees, technologies, spreading of the market, promotional activity and so on is required.
The quality of the product and services are its prime goodwill, but with that, a proper promotion
may lead to attract people who are actually demanding products and services setting quality their
first priority. Home Foods follows traditional methods in the process of productivity but there are
still many steps that are required to be adopted by Home Foods to reach its previous position in
the food distribution market.
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