Strategic Management report for Breadtalk

IntroductionFounded in July 2000, Breadtalk Ltd started trade name as a bakehouse that is establish in capital of Singapore and was listed in the Singapore Stock Exchange three historic period later in 2003. Breadtalk Ltd aims to goaleavor for contemporaneousness and creating idiosyncratic flavors to the civic and a vision of being a global check name. With these goals at hand, Breadtalk Ltd began to initiate a sweet food tradition that eachows it to ask a unique aggressive advantage, which has led to the egress of the bakehouse railway line, to food atrium and restaurant outlets. To date, they pee-pee more than 300 bakery outlets across 13 countries and territories, which entangle franchises and 25 sell bakery outlets in Singapore. In addition, it withal has 33 food courts and 8 restaurants which atomic number 18 supported by all over 5000 supply worldwide (Bamburg, 2006)SWOT outlineThe Swot analysis refers to strength, weaknesses, opportunities and affrights, and leave alone determine the ch every(prenominal)enges in the external surround which the star sign has less control and strengths that demand to address by the comp either.StrengthsBreadtalk is subject to contract some internal strengths in which argon beneficial to the troupe that overwhelms Strong Breadtalk. reproach name, ability to obtain economies of scale, operose forgiving resource, strong R&D police squad to add innovation to intersection point offerings and strong franchise relationships.WeaknessesBreadtalk faces some minor weaknesses like, over-reliance on the bakery sector, over-reliance on the Singapore character their product offerings ar easily imitated, in that respect is limited control of flour since it is obtained from terce party sources (Coyle, 2012). In addition, the franchise plane section requires broad(prenominal) cost involvement, and a uniform collect for the re sweetal of the franchise attest to be franchising other trade names. Th is is not a long term solution in terms of company expansion.OpportunitiesBreadtalk Ltd oppose its main(prenominal) weaknesses by fatten outing and merge its market in china, Asian and other Vietnam countries with its subaltern-priced uplifted volume kales and affordability.Threats Existing bread cerebrate firms and bakery shops bequeath affect the receipts of Breadtalk.PESTEL ANALYSISPestel analysis is an important tool to service Breadtalk Ltd to assist monitor and detect on the whole weak signals to recognize the fractures to shape the environs or discontinuities.Political /Legal featureorsPolitical factor constitutes all legal fundamentals like taxation, legislation, deregulating philosophies and labor training (Anthony, 2008). Increasing calling barriers has created an opportunity and challenge to Breadtalk as it green goddess penetrate the market by emerge companies in political stable countries to research the new market especially where bread could be luxur y, and at the same era Breadtalk will have to challenge all types of sources to source for low cost high quality from world over.Economic factorsThe growth of a financial structure will return advantage to industries, but its cause will differ according to which factors that are bear upon the most. (Anthony, 2008). Price fluctuations of commodity and raw substantive and rise in world force out prices cause the rise of purchasing be for Breadtalk and the extra 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 within the surround or a country. Breadtalk penetrates into the markets of other Asian continent countries, societal factors come into consideration. Indian and Chinese customers have different coating in lifestyle, and have different opinions and postulate on the curr ent products offered.Technological factorsTechnological factors include product innovation, technologies in communication and application of knowledge. The fast change in technology has allowed new entrants to enter the market at a low cost al-Qaida. Current processes and equipment with many an(prenominal) infrastructural strategies digest be utilized by Breadtalk to understand the cost of labor and reconstruct and points toprocess faster due to globalization 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 pose a threat in which may challenge Breadtalk or may in addition create fresh opportunities.PORTER 5 ANALYSISPorter five forces analysis was used to topic the long run projections for review. .Since it generates 45% of its gro ss from the bakery application and 49% from Singapore, rotund reliance on a exclusive division is dangerous because the risk is hard contained in a single segment. On the other hand, in the current time, Breadtalk tries to expand this by increasing profitability in the industry of baking.Intensity of rivalry among competitors (High)The bakery business in general is driven by cut-throat competition from companies producing akin products. Breadtalk has undeviating competitors ranging from mountainous bakery contract brands to retail bakery outlets. These competitors offer analogous products but at a super competitive prices. Moreover, prices offered by individual bakery outlets located at neighborhoods are usually much take down than larger chains of bakeries (Cassiman and Colombo, 2004).Threat of new entrants (High)Low institution barriers resulted in a high threat of new entrants in business a large segment slake 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 passably go down, and customers face low chemise of expenditure for gaining utility of the same necessitate and wants. Substitutes like munchies and junk food can be an imminent threat. Substitutes may mountain range from snack joints in the territory of the business.Suppliers (Low)Suppliers ordinarily have low bargaining motive in the industry as in that respect 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, exact in commodious quantities. Furthermore, due to the fact that unprocessed resources like flour and drinking straw dont vary more often than not in excellence and in capacity, across suppliers, this advances barriers supplying bargaining power of the suppliers.Customers (High)Customers are at liberty to enjoy huge bargaining power, a s they suffer low switching costs in the bakery industry, and in addition, the demand for food is highly price elastic, which means that most of the consumers will be price sensitive to any price adjustments and they wouldnt be indecisive to vary their tastes and preferences accordingly.INTERNAL ENVIRONMENT ANALYSISResourcesThis analysis seeks to review and summarize Breadtalks existent 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 future aspiration plan by 2015, is to double its revenue to $1billion and expand its outlets to 2000 by the year 2017. The ta rgeted expansion market areas include U.S, Thailand, Japan, Korea, Singapore, India, Cambodia and Vietnam. The company is capable and has the potential because its brand name is recognized worldwide. In order to increase production, the company has pumped $10 million in mechanization and computerization. Breadtalk too built a ten flooring building designed like a pastry structure and a central kitchen in its head quarters which has aresearch lab and training colleges.CONCLUSIONStrategic solicitude and organization, is a prerequisite to every firm or company, and its a incarnate responsibility of every employee from management to overcome 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 front in total revenue annually. all(prenominal) organization uses strategic management concepts and order to enjoy elevated levels of performance.RECOMMENDATIONThe recommendat ions made by Breadtalk will be used as a tool for coping with the intercommunicate challenges in the process of diversification plan. The company should implement a slower diversification dodging in order to have a good understanding of the customers and competitors strengths and weaknesses. By doing so, Breadtalk will be able to fishing tackle the changes more effectively and precisely. Breadtalk can also espouse a branding strategy which will be globalize to ensure reliability and manage the complexities of different consumer tastes and preferences in different markets globally.