Affect And Strategy Of Environmental Factors Marketing Essay

Affect And Strategy Of environmental Factors grocery storeing EssaySTEEPLE/PESTLE origin anyy designed as a course environmental s foundation buoy, the STEEPLE or PESTLE epitome is an analysis of the external macro environment (big picture) in which a p atomic number 18ntage ope grade. These be often factors which argon beyond the control or mildew of a contrast, however atomic number 18 important to be aw ar of when doing reaping development, business or strategy planning.Social Dlys is a coffee bean base cake and a bakeshop Producer and as work together body politic is angiotensin-converting enzyme of the highest consumers of the Chocolate product, it is easily accepted by the People. It nooky take a speed in a food market in very less time. On the different Hand as all(prenominal)(prenominal) person is busy, they prefer Baker Products which is more quick and easy to eat, all age, sex and of different geographical regions would easily adopt Dlys product. e xpert The most modern bakeries ar highly automatise. To track and service underwrite compliance with g all oernment regulation that affects bakeries, companies deploy software, some(prenominal)(prenominal) as environmental Quality instruction Program. Bakery Firms whitethorn use computer ashes to receive order, track gross gross sales and exchange the data with vauntingly customers. Dlys do non eat up its own distri stillion business and sell out(a)lets, gross revenue are through the main supermarket chains such as Tesco, Sainsburys, Asda and Morrisons. Some independent grocery chains alike pipeline Dlys products and the products also sold by Harrods and Fortnum and Mason. Which whitethorn affect the technologi call backy in the act of the Business.Economical Large economies of scale occur in achievement baked product, is manly of labour woo fuck be bring down dramatically in immense bakery facilities. A big automated bakery can produce a gazillion bread loaves a week with just 100 employees working two shifts. The size of issue facilities is limited by the need to distribute a highly spoil fit product to a large number of customers. Usually a large cook facility can service an area within a 300-miles radius. As Dlys has 60 employees it could reduce the cost of production. These may be the factor affection Economical environment of the Industry.Environmental Production is carried out at Dlys Ltds own factory and by one opposite food manufacturer in England that is non owned by Dlys Ltd. The factory must be environment friendly and should be cite around the reduction in pollutions that may effect in wellness of the person residing nearby. This may be the factor that may affect the operation of Dlys Ltd.Political As the Political mail of U.K is stable and that warm welcomes the entry of the new products inside the fall in kingdom market, the tax constitution of United kingdom is very producer friendly and conflicts is very often less wishly to occur in the production alike(p) Cakes and bakeries that may affect the operation of the Dlys Ltd.Legal The basic understanding of the g overnmental legal environment is when the government implements laws and or regulations which affect the way a business operate. Legal environment in a business are as following Statutory and regulatory conditions, corporate governance, compliance, international employment regulations, competition regulation. In the national of Dlys Ltd it has to be careful in food and hygiene regulation, employment policies, wellness and safety rules and regulation etc respectable The ethical factors includes Business ethics, Consent, Client confidentiality, Official Secrets Act, Security access, terms of business/trade, Trust, Reputation. As the national press has praised the quality of the products and a number of organisations abide determine some Dlys products as being the best of their shape in taste tests. Jo Brown has found fam e as a energetic entrepreneur and is a dragon on the BBC business scan Dragons Den. Jo is a hands-on managing director and would always want to be seen as such in any business she worked in. These could ethically effect the environment of the Dlys Ltd.Stake holder analysisInternal stakeholders and their interest in the play a big(a) Employees. Employees and their representative groups are interested in information about the stableness and profitability of their employers. They are also interested in information which enables them to appreciate the ability of the initiative to provide remuneration, retirement benefits and employment opportunities, in the case of Dlys Ltd 60 employees are the internal stakeholder of the Business.(b) Investors. The providers of risk outstanding and their advisers are concerned with the risk inherent in, and return provided by, their investments. They need information to do them determine whether they should buy, hold or sell. Shareholders are al so interested in information which enables them to assess the ability of the enterp compound to pay dividends. (Investors are owners of the co. It can be argued that they are external stakeholders, but its also hard to call your owners outsiders) In the case of Dlys Ltd its a Private Company so the investor is Dlys itself.(c) Management and those who appointed them. Financial statements also show the results of the stewardship of management, or the invoiceability of management for the resources entrusted to it. Those users who wish to assess the stewardship or accountability of management do so in order that they may make sparing decisions these decisions may include, for example, whether to hold or sell their investment in the enterprise or whether to reappoint or replace the management.External shareownerThe external stakeholders can be considered as anyone outside the implementing Organisations that could be affected by the externalizes results. STAKEHOLDER employmentIt is n ot commensurate to identify the relevant groups. Named individuals need to be identified within each group and more than one person may be required for any organisation or department. The selection of these individuals go forth depend on the role that they are to play in the project and the requirements in terms of knowledge, authority and level of involvement that this trueises. External Stockholder of Dlys Ltd is Tesco, Sainsburys, Asda and Morrisons. Some independent grocery chains also pullulate Dlys products and the products also sold by Harrods and Fortnum and Mason.Attitude toward the Strategy of Dlys would be positive by the internal and external stakeholders, as Sales of the beau mondes products surrender before long grown by more than 15% per annum all year since the company was founded and they currently numerate to 6 zillion annually. The solve profit on sales ratio is a very heavy 10% and at this level other businesses have been attracted to Dlys Ltds busin ess model. The company has a balance sheet that shows there are assets of 20 million funded by a mortgage of 7 million, a long term banking concern loan of 2 million and retained cabbage over the endure 10 years of 6 million. The residual amount comes from the shareholders equity. It employs only 60 people. Apart from one factory with attached offices, Dlys Ltd owns no distribution businesses and no retail outlets.2(a) determination appropriate tools to analyze and measure the effects and goodness of Dlys Ltds current business plans.2(b) tell the position of Dlys Ltds in its current market.2(c) Evaluate the competitive strengths and weaknesses of Dlys Ltds current strategies.Existing Business StrategyPorters Five Force analysis is important when trying to understand the competitive environment facing a given industry. It involves looking at internal competition barriers to entry, the profit appropriating major power of buyers and sellers, as well as substitutes to the bang -ups produced. Applied to the bakery industries like Dlys expressage it shows an average net profit that typically does not describe the cost of capital due to low barriers to entry, readiness of production and ease of access to ingredients.Internal RivalryThere are many players in the bakery industries like Dlys Limited. The top four companies are estimated to only account for 11.7 percent of the market. The industry is characterized by many small bakeries, but theres has been the recent trend towards consolidation and economics of scale. Businesses compare on price, quality, specialization and relationship with key suppliers.Barrier to entryBarrier to entry in this industry is low. Economics of scale are beneficial, but are not required for industrial success. As a result, small business can enter the industry with relatively small amount of Capital. The two main Determinant of New company successes is the leader ability acquire sufficient channels of distribution to cover an op erating cost and their ability to reinforced up Brand acquisitions and Loyalty. Distribution channels typically involve retail outlets, such as grocery stores and supermarkets and they can be easily acquired if the bakery brand is established or have market research to create one. Dlys Ltd Sales are through the main supermarket chains such as Tesco, Sainsburys, Asda and Morrisons. Some independent grocery chains also stock Dlys products and the products also sold by Harrods and Fortnum and Mason.BuyersBuyers of the bakery industry products like Dlys Ltd such as ASDA, Sainsburys, Morrison, Tesco are able to appreciate much of the industry profit due to large number of small bakeries that are get to find outlets for their products. As a result Buyers are able to command Low price and saturation discounts. Only a large player like have the power to level the playing palm and achieve a more balanced share of the profit.SuppliersSuppliers do not have much negotiating power in the bake ry business like Dlys ltd due to the well developed market for their products and their commoditized nature of what they are saying. Cakes and pastries and child bakeries of delays ltd can be affected by price golf shot of the raw input, but the changes are the result of the global supply and collect determinants rather than supply negotiating powerSubstitutesMany substitutes exist for bakery products. eat cereals, rice and potatoes are all viable alternatives and individual can also make all of the baked goods they want at home. Bakery relay race upon price and convenience to keep individuals switching to a substitute for baking what they need at home.Position of Dlys Ltd Product in MarketDlys Ltd is a private company that makes cakes under the brand recognize Dlys. It was founded in 2000 by Jo Brown who liked the chocolate based cakes and patisserie that was on sale in Paris. With 75,000 Dlys Ltd was founded. It makes a variety of desserts and sweets for the gift end of the market. All the output is of chilled products. Jo Brown has found fame as a dynamic entrepreneur and is a dragon on the BBC business show Dragons Den. Jo is a hands-on managing director and would always want to be seen as such in any business she worked in.Sales of the companys products have currently grown by more than 15% per annum every year since the company was founded and they currently amount to 6 million annually. The net profit on sales ratio is a very anicteric 10% and at this level other businesses have been attracted to Dlys Ltds business model. The company has a balance sheet that shows there are assets of 20 million funded by a mortgage of 7 million, a long term bank loan of 2 million and retained profits over the last 10 years of 6 million. The residual amount comes from the shareholders equity. It employs 60 people.The emergence in snacking and requirement for convenience foods has benefited both the biscuits and cakes and pastries sectors. Many industrially produ ced cakes are now available in wrapped single-portion sizes designed for snacking, while snack-sized packs of biscuits have also become more commonplace.The European market for bakery products amounted to 30.2 million tonnes in 1999, worth an estimated 45 billion ($73 billion or i68 billion). Given its size, the bakery sector can be considered to be one of the most important sectors of the food industry as a whole. scrawl remain a staple part of the diet, whilst cakes and biscuits can increasingly be regarded as regular snacking items rather than occasional carry ons.Bread is by far-off the largest sector of the bakery market, with sales of 24.45 million tonnes in 1999, equating to 81% of total bakery volumes. Sales of biscuits totalled 3.02 million tonnes, representing 10%, and cakes and pastries for the rest 9%, or 2.73 million tonnes.There are over 120,000 enterprises active in the European bread-baking sector, the vast majority of which are small craft bakers. fraud bakers are dominant in countries where there is a tradition of buying freshly baked bread every day, such as Italy, Portugal, Greece and France. This contrasts with the situation in the UK and Ireland, where some 80% of bread consumed is industrially produced.Overall, artisanal bakers and in-store bakeries currently account for 63% of all bread consumed in Europe, although industrial bakers, which account for the remaining 37%, are becoming more significant.Within the total European biscuits market, DANONE is market leader, with a 16% share of sales, While Sales of the Dlys Companys products have currently grown by more than 15% per annum every year since the company was founded and they currently amount to 6 million annually. beforehand of United Biscuits with 11%, Bailsmen with 8%, and Barilla with 6% own-label accounts for an estimated 18%.3(a) Use a trudge of tools and models to develop a range of strategic options for Dlys Ltd3(b) Analyse the comparative strategic position taken by competitors in the market and how it may affect the choice of future strategy by Dlys Ltd3(c) Create a range of feasible options as the buttocks of future organisational strategy for Dlys LtdDespite the ongoing trend towards wellnessy eating, and the added pressures from the credit squeeze, demand for epicurean chilled desserts detains to grow. Market value increase by 14% between 2003 and 2007, and is expected to grow by 4% in 2008, taking sales to 1,030 million.An internal shift within chilled pot desserts by from every day desserts in favour of premium lines is adding value, although overall volume growth has been subdued. Sales of other chilled desserts other than those in pots have been boosted by larger sharing formats, while a revival of family dining at the weekend has contributed to the growth of hot eating desserts.The outlook for the market remains positive, although in order to achieve longer-term growth, manufacturers leave need to further increase the participa tion of ABC1s and increase frequency of consumption beyond special occasions. disposition and on-the-go snacking, as well as the consumption of desserts away from main meals all offer further potential for growth.Mintel last examined the UK market for Chilled and Chilled Pot Desserts in March 2007 and July 2006 respectively.Mintel forecasts on the Bakery, cakes and pastry IndustryBread UK February 2007Between 2001 and 2006, the retail sales volume of bread fell by 14% to 1.8 million tonnes. Mintel forecasts slower decline between 2006 and 2011 of approximately 9%. Between 2001 and 2006, the value market grew by 14%, or 9% in real terms. Mintel also forecast that it will grow by an estimated 11% over the next five years to reach a value of 2.4 billion at current prices, which translates to a 2% rate of growth in real terms. Bread Cakes Ireland March 2006Retail sales of biscuits are determine at 252.4 million in RoI and have grown by 24% since 2000. Retail sales in NI rose from 88.4 million in 2000 to 114 million in 2005, representing a growth rate of 29% over the review period. Cakes and Cake Bars UK June 2006The UK ambient cake market comprises cardinal main segments whole cakes, occasion cakes and individual cakes. Sales increased by 11% from 2001 to reach a value of 1.47 billion by 2005. In order to progress, suppliers have had to develop products to deal with current eating trends that have shifted away from the role of cake as a teatime treat or celebratory indulgence. Morning Goods UK July 2007The morning goods market comprises a full range of bread rolls and bakery snack products. Most product categories continue to advance in value despite their maturity, while some notably bagels, muffins, brioche and doughnuts have been enjoying impressive rates of growth. Overall sales of morning goods increased by 11% between 2002 and 2006, to reach 1.18 billion. This compares with a 10% rise in bread sales (excluding rolls) over the same period in a market worth 2.11 billion. Growth has picked up since 2004, with morning goods sales increasing by 7.5% between 2004 and 2006, while sales of bread change magnitude by just 5.6%. Sweet Biscuits UK May 2007Sales of sweet biscuits stood at 1,462 million in 2006, having achieved 2.2% growth on the previous year against a prevailing trend of healthy eating. Over the 2002-07 periods, value growth has outstripped that of volume, signalling consumers igniter consumption habits but willingness to trade up to more expensive and indulgent products. Greatest growth over the previous year was in healthy and special treat biscuits, both of which tend to retail at the premium end. Mintel forecasts that both value (in real terms) and volume sales of sweet biscuits will increase by around 7% at current prices over the 2007-12 month period, increasing to an estimated 1.7 billion. Non-sweet Biscuits UK October 2007Sales of non-sweet biscuits have enjoyed slightly higher rates of growth (from a smaller starting point) due to their strong health positioning and the development of snacking variants. Snacking both at home and on the go is a key factor behind growth in sales of non-sweet biscuits. Manufacturers have already responded to this with snack pack and mini variants, but could do more to extend the relevance of non-sweet biscuits to the convenience-led on-the-go market.The newly released March edition of glacial Cakes, Pies, and Other Pastries Manufacturing Industry report is the comprehensive market research prevail for the industry. It has the latest information on the industrys key financial data, competitive landscape, cost and pricing, and trends during the current economic climateThe available options for the Dlys Limited are as followingExpanding the range of desserts and sweets it makes to include Viennese and Italian styles, Expanding the range of products to include ambient and frozen products, Producing healthier products to chime in with consumers ever-c hanging tastes and government initiatives on healthy lifestyles, Increase the number of retailers selling the Dlys range, Producing own label products for the supermarket chains, Expanding internationally, diversifying into other product areas such as bakery, qualification products for niche markets such gluten intolerants and products for specialized ethnic and religious groups who have limited dietary needs., Supplying mass-market caterers and airlines, Licensing producers to use the Dlys name on other food lines., Opening Dlys retail outlets in retail centres., winning over other businesses. Two local firms with good regional reputations which cogency be targets are Maggies Farm Breads, an artisanal bakery, valued at around 1.5 million, and Chocolaterie de Groote a company that hand makes Belgian style chocolates that is worth around 1 million. , and selling out to a large food producing business. Jo believes she could probably get 25 million for Dlys Ltd. and get a seat on the board with a view to moving up to be in charge of a FTSE listed company. Alternatively she could just walk away with the funds and find new businesses and ideas to develop. She also knows that Ben and Jerrys lost a lot of its conservatively developed image as a hippy ice rake maker when it sold out to Unilever and she does not want to lose the market image she has built up for Dlys Ltd by selling out. except she knows everything has its price.ConclusionAt the end, studying about several criteria of the Dlys Limited Production, Market and the product and looking over the diversified available strategic option we could conclude the assignment. Expending the range of desserts and sweets can be the good strategic option including ambient and frozen, as U.K person are health conscious so making the product may be the effective option for Dlys Limited. As Delays Limited has no any retail outlets its open to open the retail outlets may also be profitable, provide mass-market throu gh caterers and airlines may me seasonal options. Dlys limited if licence producer to use Dlys name on other food may be that suitable option in a United Kingdom market as it itself developed a good image and good will in a market. Diversifying into other product may also help in expending the market share. And Making product for niche market such as gluten intolerants and products for specific ethnic and religion groups who have specific dietary needs may not work in United Kingdom market. When expanding into new markets credit managers need to be concerned about the new client base, specific trade laws that may apply silver considerations and political risk. The treasury department may consider working capital concerns, advance rates from their traditional credit facility and loan covenants as part of the overall strategy. Selecting which country to sell into is often dictated by the products we produce. For example, lets say Dlys Ltd. provides Cake and Pastries that are ideal fo r economically challenged nations. They are low cost, light weight and easily produced worldwide. Companies such as Dlys Ltd may have expertise in foreign languages, laws and customs. They need a strategic partner who brings these skills to the table.