Strategic Management report for Breadtalk

IntroductionFounded in July 2000, Breadtalk Ltd started off as a bakeshop that is based in Singapore and was listed in the Singapore Stock throw three stratums later in 2003. Breadtalk Ltd aims to turn backeavor for modernism and creating individual flavors to the civic and a dream of being a global cross name. With these goals at hand, Breadtalk Ltd began to initiate a naked sustenance tradition that allows it to spend a penny a unique aggressive service, which has led to the growth of the bakeshop business, to food atrium and restaurant outlets. To date, they take over more than 300 bakery outlets across 13 countries and territories, which include certifys and 25 retail bakery outlets in Singapore. In addition, it in any case has 33 food courts and 8 restaurants which argon supported by oer 5000 staff orbitwide (Bamburg, 2006)SWOT ANALYSISThe Swot psychoanalysis refers to strength, weaknesses, opportunities and threats, and willing determine the contests in the e xternal surround which the firm has less control and strengths that need to foretell by the participation.StrengthsBreadtalk is adequate to have some internal strengths in which are beneficial to the company that includes Strong Breadtalk. fault name, ability to obtain economies of scale, strong human resource, strong R&D team to add foundation garment to product offerings and strong franchise relationships.WeaknessesBreadtalk faces some minor weaknesses corresponding, over-reliance on the bakery sector, over-reliance on the Singapore region their product offerings are easily imitated, thither is limited control of flour since it is obtained from third party sources (Coyle, 2012). In addition, the franchise division requires high court involvement, and a constant need for the successor of the franchise license to be franchising early(a) brands. This is not a recollective term solution in terms of company expansion.OpportunitiesBreadtalk Ltd oppose its briny weaknesses by expanding and merge its market in china, Asian and other Vietnam countries with its affordable high volume clamss and affordability.Threats Existing bread related firms and bakery shops will affect the tax of Breadtalk.PESTEL ANALYSISPestel analysis is an important tool to help Breadtalk Ltd to abet monitor and detect all weak signals to recognize the fractures to shape the milieu or discontinuities.Political /Legal incidentorsPolitical factor constitutes all legal fundamentals like taxation, legislation, deregulation philosophies and labor training (Anthony, 2008). Increasing trade barriers has created an opportunity and gainsay to Breadtalk as it understructure penetrate the market by emerging companies in political stable countries to explore the newly market especially where bread could be luxury, and at the same time Breadtalk will have to challenge all types of sources to source for low be high quality from innovation over.Economic factorsThe growth of a financial s tructure will accrue advantage to industries, but its cause will differ according to which factors that are touch the nigh. (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 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 surroundings or a country. Breadtalk penetrates into the markets of other Asian continent countries, societal factors tell apart into consideration. Indian and Chinese customers have different culture in lifestyle, and have different opinions and needs on the electric current products offered.Technological factorsTechnological factors include product innovation, technologies in communication and application of knowledge. The rapid change in technology has allowed new entrants to enter the market at a low cost base. period processes and equipment with many infrastructural strategies can be utilized by Breadtalk to go over the cost of labor and manufacture and posts 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 may pose a threat in which may challenge Breadtalk or may in any case create fresh opportunities.PORTER 5 ANALYSISPorter five forces analysis was used to memorise the long run projections for review. .Since it generates 45% of its revenue from the bakery industry and 49% from Singapore, heavy reliance on a single division is atrocious because the risk is heavily contained in a single segment. On the other hand, in the current time, B readtalk tries to expand this by increasing profitability in the industry of baking.Intensity of rivalry among competitors (High)The bakery business in general is set by cut-throat competition from companies producing similar products. Breadtalk has undeviating competitors ranging from large bakery signalise brands to retail bakery outlets. These competitors offer analogous products but at a highly competitive prices. Moreover, prices offered by individual bakery outlets located at neighborhoods are usually much lower than larger chains 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 expenditure for gaining service of the s ame needs and wants. Substitutes like munchies and junk food can be an imminent threat. Substitutes may range from snack joints in the territory of the business.Suppliers (Low)Suppliers ordinarily have low negotiate 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 to the highest degree of the customers more often than not, acquire in huge quantities. Furthermore, due to the fact that unprocessed resources like flour and wheat dont qualify largely in excellence and in capacity, across suppliers, this advances barriers supplying dicker power of the suppliers.Customers (High)Customers are at liberty to enjoy 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 means that most of the consumers will be price sensitive to any price adjustments and they wouldnt be hesitant to vary their tastes and prefer ences 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 future dreaming 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 potential because its brand name is recognized worldwide. In order to increase production, the company has manage $10 million in m echanization and computerization. Breadtalk also built a ten storey building designed like a pastry dough structure and a central kitchen in its head quarters which has aresearch lab and training colleges.CONCLUSIONStrategic management and organization, is a prerequisite to each(prenominal) firm or company, and its a collective responsibility 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 total revenue annually. Every organization uses strategic management concepts and method to enjoy wonderful levels of performance.RECOMMENDATIONThe recommendations made by Breadtalk will be used as a tool for coping with the addressed challenges in the process of diversification plan. The company should implement a slower diversification strategy in order to have a good understanding of the customers and competitors str engths and weaknesses. By doing so, Breadtalk will be able to tackle the changes more effectively and precisely. Breadtalk can also select a branding strategy which will be globalize to ensure reliability and manage the complexities of different consumer tastes and preferences in different markets globally.