Environmental
analysis
SWOT
analysis
Strength
Established business of over 30
years
Strong brand association
Nationwide coverage
Entering European market
Unique products and ingredients
Growing profit, earning and
dividend growth
Sound reputation of quality
products
Featured the ‘Times 100 best
companies to work for’ in 2003
Ability to expand to supply
base to meet sales
Good product and market
knowledge
Strong market research team.
Weaknesses
Staff retention
Seasonal downturns (summer)
High product wastage
Poor peak time control
Decline in traditional staples
such as bread and rolls
Low skilled and trained staff
Lack of in- house design and
development
Weak information transfer
between front line staff and management
Inadequate training facilities
for staff
Late delivery arrival times
Lack of store managers
Can seen be as a minimal
rewarding job
Opportunities
Entry into European market (
Diversification (selling brand
foods in supermarkets)
Plans to add 45 more shops in
UK 2004
Plans to sell ice cream
products
Increasing adoption of market
research
Future outlook to include
seating
Possibility to extend to pre
order foods
Plans for EPOS (electronic
point of sale)
New refurbishment plans for
2004
Threats
Competitors
Hot weather
Increasing health cautious
society
Entry of supermarkets selling
ready made sandwiches and similar products
Increasing cost of ingredients
Bad media coverage of food
industry (e.g. TV programme restaurants from hell)
Increased concern for hygiene
Take away ready made foods(now
it is possible to eat spaghetti Bolognese cooked from frozen as ready meal in
less than 10 mins by microwave)
Increased government
regulations in relation to food hygiene and contents of ingredients.
PESTEL analysis
Political
Changes in government & law
Increased legislation on food
hygiene
EU laws, regulations &
political changes
Increased environmental
pressure
Major events (war and
terrorism)
Economic
Economic booms and slumps
High interest rates and
inflation
Disposable incomes and
unemployment levels
Euro effecting cost of
ingredients
Weak consumer expenditure
Social-
cultural
Changing consumer needs &
expectations
Increasing time cautious
society
Communication barriers between
staff and customers
Social responsibility
Increase in health and hygiene.
Technological
(EPOS) Electronic Point of Sale
advanced cooking and catering
equipment
more complex market research
tools
marketing (website & video
displays)
wider circle & future
developments
Environmental
high waste disposable
pollution (mainly rubbish)
building controls
environmentally friendly
ingredients and products
Recycling facilities.
Legal
Health and safety legislation
Employment law (minimum wage
& part time workers rights)
Food hygiene &product
safety
Consumer rights
Building controls
Porter Five
Forces
Potential
entrants
rivalry
Gregg’s current strategy
A great place
to work
To place a major
emphasis on promoting culture that encourages personal development, leadership
qualities and creativity.
Enjoyable
Experience
To deliver
customer satisfaction by offering great tasting food at unbeatable value and to
the highest standards of food safety.
Business
Excellence
For staff to seek
continuous improvement in their areas of responsibility enabling them to make a
real and lasting contribution to the objectives of the company.
Challenging
targets
To strive to
achieve a turnover of £1 billion by 2010 through continued core growth and the
acquisition of new units, taking to over 1,700 shops.
Caring for the
community
To place emphasis
on social responsibility to encourage an even greater involvement in local
charity activities and social projects.
The strategic options that I have chosen are:
Market penetration
Product development
Differentiation
Market development
Gregg’s
corporate objective
Objective 1- to remain the
retailer specialising in sandwiches, savouries and other bakery related
product.
Objective 2 – to strengthen and enhance the
profitability of Gregg’s through business activities nationwide
Objective 3 – to build on Gregg’s strengths
and reputation of bringing a new generation of unique bakery products
Objective 4 – to be
finest bakery related retailer
Evaluation
of strategic options
Market penetration relates to
objective 2
Product development relates to
objective 1
Differentiation relates to
objective 3 & 4
Market development relates to
objective 4
Conclusion
and recommendations
Gregg’s will remain the
bakery retailer because of their excellent quality and value for money unique
products
Gregg’s will be a successful
and established throughout
come.
Gregg’s will continue to build
and increase its profit, earning and dividend growth
Recommendations
Gregg’s
European markets
Gregg’s continue with their key
strategic developments.
Resources
Gregg’s annual report 2003
Gregg’s interim statement
2003-10-22
Gregg’s website
(www.greggs.co.uk )
Financial times websites (
Google search engine (
Johnson G & Scholes K
(2002) Exploring Corporate Strategy, Prentice
Thompson J (1997) strategic
management, Thompson Business Press,
government website (www.gov.uk)
No comments:
Post a Comment