Strategic Management report for Breadtalk

IntroductionFounded in July 2000, Breadtalk Ltd started off as a bakehouse that is based in Singapore and was listed in the Singapore Stock central three years later in 2003. Breadtalk Ltd aims to endeavor for modernism and creating single flavors to the civic and a dream of being a global grunge name. With these goals at hand, Breadtalk Ltd began to initiate a sassy food tradition that allows it to cast off a unique aggressive advantage, which has led to the growth of the bakehouse business, to food atrium and restaurant outlets. To date, they fork out more than 300 bakehouse outlets across 13 countries and territories, which imply franchises and 25 retail bakery outlets in Singapore. In provideition, it in any case has 33 food courts and 8 restaurants which be supported by oer 5000 staff worldwide (Bamburg, 2006)SWOT abstractThe Swot analysis refers to strength, weaknesses, opportunities and threats, and get out determine the challenges in the external milieu which the firm has less control and strengths that take in to hatch by the high society.StrengthsBreadtalk is able to have some internal strengths in which atomic number 18 beneficial to the company that includes Strong Breadtalk. brand name, ability to obtain economies of scale, sozzled human resource, strong R&D team to add innovation to intersection offerings and strong franchise relationships.WeaknessesBreadtalk faces some minor weaknesses like, over-reliance on the bakery sector, over-reliance on the Singapore region their product offerings are slowly imitated, there is limited control of flour since it is obtained from third party sources (Coyle, 2012). In addition, the franchise discrepancy requires high apostrophize involvement, and a constant need for the renewal of the franchise license to be franchising another(prenominal) brands. This is not a long term solution in terms of company expansion.OpportunitiesBreadtalk Ltd check its main weaknesses by expanding and me rge its market in china, Asian and other Vietnam countries with its low- tolld high volume breads and affordability.Threats Existing bread related firms and bakery shops will affect the revenue of Breadtalk.PESTEL ANALYSISPestel analysis is an important tool to stand by Breadtalk Ltd to assist monitor and detect all weak signals to recognize the fractures to avatar the environment or discontinuities.Political /Legal factorsPolitical factor constitutes all legal basic principle like taxation, legislation, deregulation philosophies and labor training (Anthony, 2008). Increasing trade barriers has created an opportunity and challenge to Breadtalk as it faecal matter penetrate the market by uphill companies in political stable countries to explore the new market oddly where bread could be luxury, and at the same time Breadtalk will have to challenge all images of sources to source for low cost high property from world over.Economic factorsThe growth of a financial structure will come advantage to industries, but its cause will differ according to which factors that are affected the most. (Anthony, 2008). Price fluctuations of commodity and raw material and rise in world fuel prices cause the rise of purchasing costs for Breadtalk and the otiose cost has to pass over the consumers by increasing the price of their products.Social factorsSocial factors include traditions, lifestyles, values, beliefs, tastes, attitudes and workforce diversity and will greatly influence the consumer spending patterns at heart the environment or a country. Breadtalk penetrates into the markets of other Asian continent countries, social factors come into consideration. Indian and Chinese customers have different culture in lifestyle, and have different opinions and needs on the current products offered.Technological factorsTechnological factors include product innovation, technologies in communication and application of knowledge. The rapid change in technology has allowed n ew entrants to enter the market at a low cost base. Current processes and equipment with many infrastructural strategies hatful be utilized by Breadtalk to stop the cost of labor and manufacture and orders toprocess faster overdue to globalisation and shifts in technical factors.Environment factorsAt Breadtalk, they know that they need to blend into any type of environment in order to be successful. They make use of resources that the environment can provide, and delivered the desired goods in return. Sometime the environment whitethorn stay put a threat in which may challenge Breadtalk or may in addition create fresh opportunities.PORTER 5 ANALYSISPorter five forces analysis was apply to study the long run projections for review. .Since it generates 45% of its revenue from the bakery labor and 49% from Singapore, heavy reliance on a single division is dangerous because the risk is heavily contained in a single segment. On the other hand, in the current time, Breadtalk tries to expand this by increasing profitability in the persistence of baking.Intensity of rivalry among competitors (High)The bakery business in commonplace is driven by cut-throat competition from companies producing equivalent products. Breadtalk has undeviating competitors ranging from large bakery contract brands to retail bakery outlets. These competitors offer analogous products but at a highly competitive prices. Moreover, prices offered by individual bakery outlets hardened at neighborhoods are commonly much lower than larger imprisonment of bakeries (Cassiman and Colombo, 2004).Threat of new entrants (High)Low entry barriers resulted in a high threat of new entrants in business a large segment still retails similar products and is able to emulate each others products quickly.Threat of substitutes (High)Products substitutes are usually a hazard in the bakery industry as their prices can be reasonably go down, and customers face low switch of using up for gaining utility of the same needs and wants. Substitutes like munchies and junk food can be an imminent threat. Substitutes may range from snack joints in the grease of the business.Suppliers (Low)Suppliers normally have low bargaining power in the industry as there are a number of them still in existence. The suppliers are not able to blotch up their goods radically as most of the customers more often than not, acquire in grand quantities. Furthermore, due to the fact that unprocessed resources like flour and wheat dont vary largely in excellence and in capacity, across suppliers, this advances barriers provide bargaining power of the suppliers.Customers (High)Customers are at liberty to make happy huge bargaining power, as they suffer low switching costs in the bakery industry, and in addition, the demand for food is highly price elastic, which bureau that most of the consumers will be price sensitive to any price adjustments and they wouldnt be hesitant to vary their tastes and preferences accordingly.INTERNAL ENVIRONMENT ANALYSISResourcesThis analysis seeks to review and summarize Breadtalks tangible and intangible resources at the end of the 2012 financial year (Halibozek, 2005).Tangible resources (assets) Breadtalks tangible resources (fixed assets) are land, buildings and equipment. The currents assets are current assets and inventories (raw-materials, semi-finished goods, consumables and base inventories (dining utensils and cutlery).Intangible resources (assets)Breadtalks intangible resources are trademarks, copyrights, and brand.Breadtalk Ltd capabilitiesBreadtalks next aspiration plan by 2015, is to double its revenue to $1billion and expand its outlets to 2000 by the year 2017. The targeted expansion market areas include U.S, Thailand, Japan, Korea, Singapore, India, Cambodia and Vietnam. The company is capable and has the emf because its brand name is recognized worldwide. In order to increase production, the company has pumped $10 million in mechanization and computerization. Breadtalk also build a ten storey building designed like a pastry structure and a central kitchen in its head accommodate which has aresearch lab and training colleges.CONCLUSIONStrategic management and constitution, is a requirement to every firm or company, and its a collective tariff of every employee from management to subordinate to play an active role in ensuring that the annual targets are met, this is important in determining the progress of organization on the basis of upward and downward trend in intact revenue annually. Every organization uses strategic management concepts and method to enjoy elevated levels of performance.RECOMMENDATIONThe recommendations made by Breadtalk will be used as a tool for coping with the addressed challenges in the process of variegation plan. The company should implement a slower diversification strategy in order to have a good understanding of the customers and competitors strengths and weaknesses. By doing so, Br eadtalk will be able to tackle the changes more effectively and precisely. Breadtalk can also espouse a branding strategy which will be extend to ensure reliability and manage the complexities of different consumer tastes and preferences in different markets globally.