Business Analysis: Lion Nathan Company Performance Review

This report provides a comprehensive analysis of Lion Nathan, a beverage company operating in Australia and New Zealand. It begins with an introduction outlining the company's products and history, followed by a discussion that includes both external and internal analyses. The external analysis examines the business background, industry domain, and general environmental factors such as economic, physical, socio-cultural, global, technological, political, and demographic aspects, along with an assessment of the industry environment using Porter's Five Forces. The internal analysis focuses on the company's resources, both tangible and intangible. The report identifies opportunities and threats, evaluates the competitive environment, and concludes with recommendations based on the analysis. The report aims to assess the market position of Lion Nathan, identify areas for improvement, and suggest modifications to business functions to enhance its competitive advantage in the food and beverage industry.

Running head: ANALYSIS OF LION NATHAN COMPANY
ANALYSIS OF LION NATHAN COMPANY
Name of the Student:
Name of the University:
Author Note:

1
ANALYSIS OF LION NATHAN COMPANY
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
External Analysis:........................................................................................................................2
Part 2:...........................................................................................................................................8
Conclusion.....................................................................................................................................11
References......................................................................................................................................11

2
ANALYSIS OF LION NATHAN COMPANY
Introduction
Lion Nathan is a beverage company which has its base in Australia and operates in both
Australia and New Zealand. The main products of this company are wine, soft drinks, other kind
of beverages and sprits (Crossland et al. 2014). The company also produces flavored soft drinks.
At first the name of the company was Lion Nathan National Food. It has 7000 employees
working currently. The paper discusses the different business operation of the Lion Nathan. In
order to do this the internal and the external analysis f the company has been done in this paper
(Crossland et al. 2014). The discussion brings out the risks and the opportunities of the company.
The recommendations are made on the basis of the issues and the risks identified (McDonnell et
al. 2016). The analysis indicates the market situation and the position of the company. The paper
also discusses the strength of the organization and the opportunities for the organizations for
improvement of its position in the competitive market (Davis, Chelliah and Minter 2014). Apart
from that the evaluation and the identification of the risks will help the organization to identify
the scopes for the improvement and the modification of the business functions. The information
for the analysis has been gathered from the different sources. The recommendation has been
made on the basis of the identified threats and the opportunities in the discussion.
Discussion
Part 1:
External Analysis:
Business background:

3
ANALYSIS OF LION NATHAN COMPANY
Lion Nathan is an Australian company which operates in Australia and New Zealand.
The organization produces beverages of different kind. The main products of the company are
wine, soft drinks, different kind of flavored beverages. There are other companies which are the
shareholders of the Lion Nathan company. The business of the organization is going well and it
has become one of the famous local brands known in Australia (Martin-Rios et al. 2018). The
internal and the external analysis have been done in this paper in order to find out the business
situation of the company. The internal analysis is concerned with the management of the
resources of the organization while in the external analysis the position of the company with
respective the business situation and the scope for the improvements have been discussed.
The industry domain:
The industry where the Lion Nathan belongs to is the food and beverage company. The
company provides different types of drinks to the consumers. This also includes the alcoholic
and non alcoholic products.
General Environmental Analysis:
Economic:
The economic situation for the Lion Nathan company can be considered average. The
current situation indicates that the consumption of the alcoholic beverages has been decreased in
current times,while the consumption of the soft drinks has been increased (Mialon, Swinburn and
Sacks 2015). Apart from that the Australian Drug Foundation has put the restriction for the
alcohol producing companies to promote the alcoholic products thorough the educational or the
sports events. This may hamper the marketing of the alcoholic products of Lion Nathan
Company. Apart from that the current business situation indicates that the Lion Nathan should be

4
ANALYSIS OF LION NATHAN COMPANY
focused on the promotion of the different kind of soft drinks as the market of the soft drinks are
growing rapidly.
Physical:
The Lion Nathan is situated in Australia. The base of the company is in Australia
however, the company is becoming famous and has its branches at New Zealand. There are
different branches of the company throughout Australia. The supply chain of the products of the
organizations is available in different market and shops. In this case, it can be said that the
physical position of the organization and it’s different branches are in the favorable position.
Socio-Cultural:
The socio-cultural situation of the country has significant effect on the business of the
organization. Lion Nathan Company produces both alcoholic and non alcoholic drinks. It has
been seen that the people of both Australia and New Zealand are preferring soft drinks over hard
drinks. However, this situation may not be problematic for the Lion Nathan as the organization
also produces different kinds of beverages. However, the organization can put more focus on
bringing the variety off the soft drinks.
Global:
The Company initially founded in Australia. From that point of view it can be said that
Lion Nathan is a local company of Australia. However, the strategic business management and
the implementation along with providing the quality produces have helped the business
organization to expand the business. The business has been expanded in New Zealand. However,
the business of the organization is operated only in Australia and New Zealand. The organization

5
ANALYSIS OF LION NATHAN COMPANY
can expand the business in other continents. However, in order to do this the organization needs
more planning and the product needs to be more relevant in the business context of the other
countries in other continents. This will bring the true global status for the Lion Nathan.
Technological:
The technological aspects of the organization have certain significance on the
development of the business of the organization. The advanced use of technology helps the
organization to provide the quality service. Lion Nathan uses emerging technologies for
producing the quality products. Apart from that the organization is also using the technologies in
the different modules of the ongoing business functions (Haskelberg et al. 2016). The latest
technologies are used in the supply chain management for the organization. Apart from that the
use of digital media has been done for the marketing of the products of the organization. It can
be said the use of technology in the business process has been helping the Lion Nathan to gain
the competitive advantage in the food and beverage industry.
Political:
The political factor plays an important role for Lion Nathan Company. The government
of Australia has been imposed excise tax on the alcoholic drinks. It has been seen that the
tendency of the alcohol consumptions among the young people in Australia has been increased.
Imposition of the tax will reduce the tendency of high alcohol consumptions (Ariyawardana et
al. 2015). This will raise the price of the alcoholic beverages produces by the Lion Nathan
company. Moreover, people are getting interested about consumption of soft drinks. Lion Nathan
can put more focus on the producing of the soft drinks. The creation of the new flavored drinks

6
ANALYSIS OF LION NATHAN COMPANY
will help the Lion Nathan to do well in the competitive market. It can be said that the price of the
soft drinks will not be affected in this course.
Demographic:
The Company is currently operating in two countries. The current numbers of employees
are 7000 (Sacks et al. 2018). It can be assumed that with the expansion of the business the
number of employees can be increased. Moreover, there are lots of opportunities for the
company to expand the business outside of Australia (Ferguson et al. 2016). The expansion of
the business to the other countries will increase the numbers of employees from different parts of
the world. This will increase the diversity of the employees in the organization which will
eventually improve the working condition of the organization. It will also help to make the
organization truly global.
Industry Environment:
Power of the supplier: Supplier has the high bargaining power in this case. Lion Nathan
has the high switching cost as the company is regional and there are few suppliers of the
products for the company. In this case, the supplier can go for the other companies or the
international brands (Collignon et al. 2016). In this case, Lion Nathan has few suppliers for the
distribution of the products.
Bargaining power of the buyers:
The bargaining power of the buyers is high. There are lots of other companies in the food
and beverage industry. Some of them are international and famous brands. In this context the
buyers have various options for the food and beverages (Ridoutt et al. 2016). The buyers can

7
ANALYSIS OF LION NATHAN COMPANY
choose from various brands and selects one of them. The selection can be done on the basis of
the price of the products and the quality of the products. In this case, the price of the products
produces by the Lion Nathan company should be reasonable so that it can draw the attention of
the consumers.
Potential entrants:
The food and beverage industry has many companies. However, making a position in the
food and beverage industry is hard (Miller et al. 2015). In this case, there is a potential threat for
the Lion Nathan company from the existing companies in the food and beverage industry. In
order to mitigate the threat from the existing companies, Lion Nathan should keep the price of
the product reasonable along with maintaining the quality.
Substitute products:
There are many substitute products of the soft drinks currently available in the market.
The consumption of the alcohol is going down. People are getting more concerned about health.
In this case, the substitute products for the soft drinks are different health drinks with lower
calories. The organization needs to focus on the producing the health drinks.
Rivalry among competitors:
There are rivalry competitions among the different existing companies in the market of
the food and beverage industries. All the existing companies produce almost similar products.
In this case, the there is a competition among the companies regarding the selling of the
products.
Competitive environment:

8
ANALYSIS OF LION NATHAN COMPANY
The environment of the food and beverage industry in Australia is competitive. There are
other existing companies along with the famous brand names present in the market. The rivalry
can be in form of the pricing strategy of the products and the new innovation of the products.
Apart from that availability of the products plays an important role for gaining the competitive
advantage.
Opportunities:
There are lots of opportunities for the Lion Nathan company for the improvisation of the
business. The organization is currently holding a good position in the food and beverage industry
of Australia and New Zealand (Chen et al.2015). However, the innovation of the new products
can help the company to get more popularity. The organization can achieve this through the
emerging technologies used in the organization. Apart from that the company can expand the
business in the other parts as the food and beverage industry is booming throughout the world.
Threats:
Although the current business position of the company is in the favorable position, there
are other competitors in the market who are producing different kind of products (Hill, Jones and
Schilling 2014). The strict competition is creating the challenging situation for the organization.
Apart from that the company is not updating according to the dynamic situation in the market.
Part 2:
Internal Analysis and the proposal:
Resource of the organization:

9
ANALYSIS OF LION NATHAN COMPANY
The internal resource of the organization can be divided into two categories-tangible and
intangible.
Tangible resources: The tangible resources of the organization are the capital and the
profits of the organization (McDonnell et al. 2016). The tangible resources are the resources
which can be measured. The capital of the company is provided by the different stakeholders of
the organization (Lu and Zhang 2016). One part of the capital comes from the sponsorships and
the profit gained from the selling of the products. The other tangible resources include the
machines and the systems in the factories.
Intangible resources: The intangible resource includes the resources which are aesthetic
in nature. Some of the intangible resources of the Lion Nathan company are the good will of the
company and the brand name of the company (Jones, Hillier and Comfort 2015). The company is
running in profit and is delivering quality products. These are increasing the popularity and the
brand value of the organization. These intangible resources are helping the organization to
expand the business in large scale.
Identification of the capability:
The identification of the capabilities of the company indicates that there are lots of
opportunities for the Lion Nathan companies for the expansion of the business. The company has
gained a significant position in the food and beverage market (Fergusonn et al. 2017). Apart
from that the expansion of the business can be done in the near future. However, the company is
still in the growing phase and the lots of improvisation and the modification are needed to be
done to raise the position in the competitive market.
Recommendation of the suitable information system for the organization:

10
ANALYSIS OF LION NATHAN COMPANY
There are internal and external factors needed to be improved for the company. The use
of the information technology is needed to be done in order to enhance the flexibility of the
business process of the organization. The use of cloud computing can be done in order to
enhance the storage space of the organization (Green et al. 2015). On the other hand the
implementation of the ERP can be beneficial for the organization for the better management of
the organizational operations.
Evaluation of the proposed system:
The system regarding the cloud computing can be beneficial as it will help the
organization to mitigate the overhead cost of the organization for the maintenance of the
infrastructure. In this case Lion Nathan can use hybrid cloud model where the public and the
private cloud can be used. The public cloud will contain large amount of general data (Gianni
and Gotzamani 2015). On the other hand in the private cloud the confidential data will be stored.
This will also increase the security of the data storage. On the other hand the proper
implementation of the ERP system in the organization will bring the flexibility in the business
process along with that it will help in the synchronization between the different modules of the
process.
Recommendations
It can be recommended that the proper strategic planning and the implementation of the
advanced technology will be helpful for the Lion Nathan for achieving the higher position in the
market. In order to identify the scopes for the improvements and the analysis and the
identification of the issues the internal and the external analysis have been done. It can be said
that there are lots of opportunities for the company to expand the business (Renton et al. 2015) .

11
ANALYSIS OF LION NATHAN COMPANY
However, the update of the current working environment of the organization is needed the
situation of the market is dynamic and the demands of the consumers are changing rapidly.
Conclusion
The paper discusses about the internal and external analysis of the business situation of
the Lion Nathan company. This beverage company is getting famous in the food and beverage
industry of Australia and New Zealand. There are lots of scopes and opportunities for the
company to achieve the higher position in the market. Apart from that it is recommended for the
organization to implement more emerging technologies like cloud computing in order to make
the operations of the organization more flexible. There are certain issues regarding the business
of the organizations which can be regarded as the threats for the company. Those issues are
needed to be addressed in a proper way. It can be said that following all these things, Lion
Nathan can expand the business and make the suitable position in the competitive market.