Strategic Management and External Business Environment free essay sample

This essay is a case study of analyzing the UK biggest chocolate company Thorntons’ existing strategy in current economic situation using different aspects from both external and internal business environments. In this report I will engage with the business frameworks that we learned in the first five weeks such as S. W. O. T analysis, Porter’s Five Forces, PESTEL analysis as well as Industry life cycle. Moreover the S. W. O.T analysis will be divided to tow parts, which are strength and weakness for internal business environment and opportunities and threads for external business environment. After the full analysis for the existing strategy, we can see whether the strategy is able to face many changes from macro environment or microenvironment in this ever-changing world. 2. Introduction When a new player wants to have business in a new industry, it would better to make a strategy to direct the right way to success. We will write a custom essay sample on Strategic Management and External Business Environment or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page Strategic planning is upward focused, looking at ensuring how tactics link up to corporate goals and strategies, strategic thinking is downward focused, looking to ensure that meaning and purpose are diffused throughout the organization so that appropriate goals and tactics can be developed to meet the real needs of the organization. (Shelton amp; Darling, 2001; Whitlock, 2003) 3. External Business Environment 3. 1 PESTEL analysis of chocolate industry As a matter of fact, a full PESTEL analysis can help organizations to protect or handle the unpredictable changes from external environment efficiently in this ever-changing world. Political factors Basically, there is just a few political factors will effect the companies which are having business in chocolate industry, because governments do not have to many limitations to the food industry. However, as the largest UK chocolate company, which has been exploring the foreign market outside EU, several uncertainties, has to be faced, su ch as the taxations in Asia are constantly changing. * Economic factors In this difficult economic situation, every organization suffers a heavy blow from financial crisis and Torntons is no exception. Normally, food industry can reflect the inflation most at the first time. Generally speaking, price of food is the first sign to be noticed when the financial crisis happened. Source: Based on information from http://www. thorntons. co. uk/content 2011 We can easily see that the sales performances of Torntons own stores and franchise decreased during 2010 to 2011. Conversely, the total retail sales had an increase by 8. 2% from 2010 to 2011, which means customers did not spend too much money on the regular price goods. However people bought more chocolate when goods were on sale. In other words, the inflation has a serious impact on people’s life and food industry. * Social Factors Social factors have an impact on the chocolate industry. First of all, in general, people do not think chocolate is a kind of healthy food at all. However, more and more people are seeking a healthy life style right now. So for these people, they would not take the chocolates into considered. On the other hand, due to increasing competition, Torntons has to face lots of challenges with them. * Technological Factors Technology always plays an important role in strategy, because lots of parts of process in organization base on the technology. For a chocolate company how to continuously improve the produce process have to be taken into account. Environment Factors For any food company, they are more dependent on raw materials. However, environment can decided whether companies are able to get good quality raw materials with reasonable price. So environment factor is one of unpredictable factors in PESTEL analysis and organizations have to prepare a back up plan to protect them. * Legal Factors There are two mains factors of legal problems related to Torntons, which are human resource legislation and food hygiene. First of all, the human resource legislation always changes including the working hours and insurance and taxation for the employees. It will affect the human cost directly. On the other hand, because the continually improvement of the food hygiene, the quality of the chocolate will be higher. Food safety is of paramount importance to our manufacturing processes and out single site production facilities at Thornton Park are regularly independently audited against the exacting requirements of the British Retail Consortium’s Global Standard for Food Safety and were reaccredited in June 2011 with its highest Grade A status. (Thorntons PLC 2011:13) 3. 2 Porter’s Five Forces Before a company start to have business in one area, it would better to analysis that this area whether easy to enter in and make profits among the competitors from different aspects including force of entrants, suppliers, buyers, substitutes and rivalry which called Porter’s Five Forces. Porter’s Five Forces framework identifies the attractiveness of an industry or sector in terms of competitive forces. (Johnson et al 2010) * Power of buyers Because of Thorntons’ pattern of distribution, they are only own stores and franchisees. Meanwhile, they do not have store in any large retail chains that can reduce the power of buyers. Thus, power of buyers for Thorntons is small and steady. * Power of suppliers Thorntons is not only has in-house supply, but also has several aspects need outside suppliers such as some raw materials (cocoa beans, sugar and milk) and service. But in terms of the big brand name, Thorntons still got strong supports from the outside suppliers with reasonable price. * Threats of substitutes For chocolate, only taste, form and packaging can be imitated, which means the there are a lot of threats of substitutes, because these three points are very easy to follow and copy. Moreover, not only traditional chocolate companies could produce substitutes products, but also some other snack food item could imitate the chocolate taste. * Threats of entrants Normally, entry into the chocolate industry or market would need a lot of requirements, such as investment for the manufacturing facilities and human resource. However the most important requirement is having a unique formula to produce chocolate, which is the value for a new brand just entered into this industry. Thus, for chocolate industry is quite difficult for the new players to entry into. * Intensity of rivalry The intensity of rivalry can be many types such as price competition as well as advertisement between the competitors. Fortunately, competitions in the Thorntons’ level just have a few competitors. However this will be a big threat to Thorntons because fewer competitors that mean new plays will locate their positioning in this level. 3. 3 Industry life cycle analysis Source: Johnson et al, Exploring Strategy, 2010 According to the sales performance of the UK chocolate industry, we can easily see that from 2005 to 2012 the performance of sales increases steadily at the shake-out stage in the industry life cycle. . 4 S. W. O. T analysis (Opportunities and Threats) Opportunities More and more people like to buy box chocolate as a gift. Easy trade outside EU. UK government has a strong support to import and export food. Increasingly mature E-market. Threats Many traditional chocolate companies start to transform their product to Thorntons’ level. Because of epidemic s pread in EU, it seriously affects the export trade. Inflation makes the price of store rent, raw materials and human resource increase. 4. Internal Business Environment After analyzing the external business environment of the Thorntons, we can take a look of the internal business environment. It is also quite an important part for an organization. 4. 1 Internal capabilities: resources and competences As the biggest chocolate company in UK, the main resource of Thorntons is its intangible resource especially the brand image actually. When people want to buy a box of chocolate as a gift, Thorntons will be the first brand come to mind immediately. This is the core of success of the Thorntons. As a matter of fact, Thorntons realized this intangible and intelligent using it. They put more and more emphasis on making the products unique with the strong brand image. That is why they still have a large group of target audience until now. On the other hand, competence for an organization has to be divided to two parts, one is threshold competence, and another one is core competence. Obviously, the requirements of threshold competence of chocolate company are not too much. Except the manufacturing of producing chocolate, the rest requirements are similar to the other industries. However, in order to gain more market share in the chocolate industry, the core competence has to be very unique. For Thorntons, they put much emphasis on different type of chocolate whether the form or topic of chocolates or unique packaging. 4. 2 S. W. O. T analysis (Strengths and Weaknesses) Strengths * High quality chocolate * Unique packaging design * Mature supply chain * Strong brand image among British Weakness * High cost for international buyers * Too much operating cost for the own stores * Don’t have enough breakthrough in future 5. Conclusion After a deep analysis of the Thorntons’ existing strategy, we can draw a conclusion that there are still having several elements from external business environment will affect the organization. However a perfect strategy plan could protect the organization to survival from the unpredictable changings of the world. Through the PESTEL analysis, for the food industry, the economic and social factors will affect it more than others. Moreover, the marketing positioning of Thorntons is between traditional chocolate and premier chocolate. So there are just a few competitors in this part of market. According to the Porter’s Five Forces analysis, we can also see that the intensity of rivalry is low which means Thorntons does not have too much competition. It is difficult for new players to entry into this industry.

Mussolini knew that he could never influence those with education and culture, so his propaganda was solely aimed at the ignorant masses Essays

Mussolini knew that he could never influence those with education and culture, so his propaganda was solely aimed at the ignorant masses Essays Mussolini knew that he could never influence those with education and culture, so his propaganda was solely aimed at the ignorant masses Essay Mussolini knew that he could never influence those with education and culture, so his propaganda was solely aimed at the ignorant masses Essay How far do you agree with this assessment of Fascist propaganda? (1924-1936)It is true to say that much of the fascist propaganda implemented during Mussolinis dictatorship was created for the ignorant masses. However, the propaganda cannot be described as being solely aimed at typical Italians as other forms were used to reach the high cultured and educated members of the public.The use of the term ignorant masses has a specific context within this assessment. As the text describes what Mussolini knew and how he acted, we can understand the words to be thought of as Mussolinis interpretation of the general public. He was known to describe them as stupid, dirty, do not work hard enough and are content with their little cinema show (Robson), thus beneath him. Mussolini knew that they were the easier option and more susceptible to propaganda, he was aware of the educated and cultured posing a difficult task and almost a threat. His appeasement with this higher cultured group determines the level of propaganda taken upon the ignorant masses. However there were still forms of propaganda that did contact the high cultured and educated, whether intentional or not, and some attempts to reach those slightly less educated and cultured than the intellectuals.Fascist propaganda had many forms and ways to affect people. As Robson comments one must strike the imagination of the public: that is the real secret of how to govern Thats what Mussolini felt Visually high impact and vocally arousing propaganda was the most useful to the Fascists as at least 17% of Italy was completely illiterate throughout 1924-1936. This propaganda could affect the emotive aspect of human nature rather than the intellectual features. The mass media such as posters and radio were a way to impose propaganda upon the completely uneducated. Words are not necessary to crate an immediate and strong impact where the use of colour and image are. The poster for the Olympic Games displaying a javelin thro wer in line with an Italian soldier launching a grenade links Italian prowess in sport with war (Hite). It encourages the fascist ideas of aggressive foreign policy and creates an image of the viewer himself also being capable of doing something great for his country, out on the battlefield instead of the sports field. Posters would contact all groups of people from housewives doing their daily groceries to southern peasant farmers. This particular tactic emphasises the intended audience as an educated and cultured person would be able to see the hidden message. It may also not be interesting enough to attract their attention in the first place as a poster cannot replace literature, art and other cultured interests. This Fascist propaganda was aiming at the most uneducated through the lack of text and use of image.In 1924 radio became state run and content controlled. Their stern, martial tone had as much of an impact as their content of music and ever increasing official broadcasts such as Mussolinis major speeches. Few people had radios although their numbers increased from 40 000 in 1927 to 1 million in 1938. This was renovated by the use of loud speakers in the piazzas and radios in village halls. Although disregarded by Mussolini at first, the radio became a favoured tool in reaching the ignorant masses whether at work, home or even school. Cinema also became a more popular device. Although it was lightly censored, a government agency LUCE was created to produce cinegiornali which were created to standardise cinema outings and indoctrinate viewers with images of a happy and successful Italy. Again the cinema was accessible to many as it was affordable e.g. working class, youth and so was often used for propaganda.Through mass activities such as parades and rallies, Fascism was able to gain support by representing itself through the spectacles themselves, and as Robson observes, striking the imagination. Mussolini obtained details from Stalin of Soviet May Day parades which he imitated, and by creating a bold and exciting atmosphere and strengthening this though large scale, people were enthralled by the new things set before them. At the same time Fascism could transfer values of discipline and collective identity upon observers. Many types of people would be affected by the spectaculars, by being in the presence of them or hearing the roaring crowds and charismatic Piazza Politics on the radio. In the South, radios would be stationed at village halls for the farmers and peasants to hear. This supports the idea that Fascist propaganda was aimed at the ignorant masses (the general public) as it reached out to many. It subtly imposed these ideas by striking patriotic feeling, implying the idea of restoring Italy to a powerful exciting nation.Sport, another mass activity, promoted national pride and the physical and emotional struggle for war. Again it brought about a sense of collective identity, social solidarity and discipline via e xcellent access, opportunity and provision. Many new stadiums were built and successful national teams were seen as a way to increase national pride and therefore support for the regime. E.g. Carnera became the heavyweight boxing champion from 1933-1935. Anyone could take part at low cost, however sport may have reached out to the higher educated and cultured as some may have had interests in sport before Fascists propaganderised it.In terms of culture, the Fascists simplified high cultural aspects such as art to incorporate it into every day life for the masses. Its use was to hark back to ancient Rome, which in itself was a powerful symbol of greatness and success. Art had greater provision such as through architecture so that it had a strong impact throughout day to day life. However impressive it may have been in the large towns and cities, the peasant southern towns saw little of this, only on posters which had a lesser impact. The expense was therefore questionable considering the overall impact. Other failure stems from cultural diversity in Italy. One Fascist style could not be decided upon, and to do this would appear far too obvious as indoctrination and control. Particularly with more educated classes, e.g. teachers- Mussolini classed as the ignorant masses, who may have seen through it and would retract their support. All other aspects of Fascist propaganda were tried to be subtle and so art was a tough area to settle on.Defining those with education and high culture needs to be in context of Mussolinis character. His view of those with culture and education will be in league with himself, the messiah or comparatively close in relation to the ignorant masses. With Mussolini as an arrogant and condescending leader, it is drastic for him to know that he could absolutely never influence those who are educated and cultured; therefore he regards them as an impossible task and possibly of concern. This is why he practically appeased this group of people so as not to loose support, disregarding the thought of ever gaining it from them, particularly through propaganda.Mussolini thought that the educated and cultured were unreachable through propaganda, but there were still attempts made to influence them through the likes of literature, music and drama. However it was considered less important as it would not gain as much support as easily as with the ignorant masses. For example Mussolini spoke of a theatre for twenty thousand, hoping to extend this art form to the masses. However it never happened as this area was such a low priority.Mussolinis appeasement of the cultured and educated arose from their presumed interest groups such as literature, art and the newspapers. As pre-mentioned, Mussolini could not heavily indoctrinate Italy as with Nazi Germany as he needed to keep elitists and the King on side. The Pope and religion was also too heavily influential in Italy to completely indoctrinate the nation, he would loose too much su pport. He kept the cultured groups support by not forcing anything on them and not taking anything away. In this way he kept their support instead of trying to gain more of it. A good example of this is within the media, particularly newspapers. The newspapers began to be censored in 1923 by Prefects and by 1926 the last opposition paper suppressed.However, although the only press agency was run by a fascist, the propaganda was extremely subtle. So much so, that some papers that remained were allowed to continue in growth such as the Vaticans paper which increased in circulation from 20 000 to 250 000 in the late 1930s. Some foreign papers were also allowed in Italy. The same system applied to the radio, where the cultured and educated were allowed access to alternative radio stations such as the Vatican broadcasts, the BBC and the Rosselli broadcast from Spain. This was all the more appealing as some luxuries were able to stay. Mussolini was not forcing the educated to read the pos ters and go to the cinema, he appeased them instead.Mussolini thought he could never influence those with education and culture and solely aimed specific forms of propaganda at the general public, he possibly did reach the cultured with it. He thought they were too clever to be influenced by propaganda aimed at who he thinks are the stupid masses (Robson) which actually reflects how he positions himself within society. He ranks himself at the top, intelligent, yet he has mistaken the cultured for having an emotive level that involves patriotism and pride. Through their failure during WW1, many Italians (irrelevant of education) will have felt shame and have hope of a rebirth of a greater Italy. Propaganda such as parades and national sporting events may have had an impact outside the ignorant masses, questioning the idea of never being able to reach the educated and cultured. It is questionable whether they realised they were possibly reaching this higher group, but as the assessmen t states that Mussolini KNEW that he could NEVER influence the probability is that they really knew they couldnt reach anyone cultured and educated at all by any means and that any success was by chance.In conclusion, I agree with this assessment of fascist propaganda to the extent that the majority of the propaganda was aimed at the general public or ignorant masses. However there were sub-classes which the propaganda did reach and exceptions to the statement of never influencing those with education, and solely aiming it at the masses. Educated and cultured members of the public may have had interests in modern day architecture, ancient Rome or sport that drew them to appreciate the Fascists regime and give it more support. It seems likely that propaganda played a major role in sustaining Mussolinis regime and making him an extremely popular leader. This in itself supports the idea that he had a majority of support of the masses, which was influenced by successful and subtle propa ganda.

Applying a culture awareness scholarship Essay Example | Topics and Well Written Essays - 500 words

Applying a culture awareness scholarship - Essay Example Therefore, different cultural groupings would have different values and norms. Because of this difference, there is need for cultural sensitivity. With cultural sensitivity, despite knowing the existing cultural differences and similarities, no values would be assigned to such differences. This understanding and sensitivity critically inform the tenets of cultural awareness. Thus, cultural awareness would mean the development of understanding of and sensitivity to another ethnic group. It involves appreciating one’s culture and accommodating with respect other people’s cultures. This would require continuous development of knowledge of other people’s cultures, especially by interacting with such people. Cultural awareness is an important attribute to cultivate because it fosters peaceful and harmonious coexistence in this multi-cultural environment. What is considered as appropriate in one culture could be interpreted as inappropriate in another. Thus, misunderstandings could arise if a person uses own meanings to make sense of the other person’s reality. Important to note is the argument by Picardo that cultural awareness is difficult as naturally, culture is not conscious to humans. From birth, humans have learnt to do things unconsciously. Our values, experiences and ethnicity cause actions in a specific way. It is important to get out of our cultural boundaries so as to realize the impact our cultures have on other people. Seeing both the negative and positive aspects of our cultural differences would be an important approach in fostering peace and harmony in our societies. This cultural awareness would particularly be important when an organization seeks to expand its s olutions and identity so as to take a different approach to its problem solving procedures. It not only promotes flexibility but also creates new valuable behaviors and skills. In business, cultural awareness