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Strategic Management Analysis for Thorntons, the UK's largest manufacturer and Retailer of specialist chocolates

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Strategic Management Thorntons Case Study THORNTONS PLC CASE STUDY STRATEGIC MANAGEMENT COURSE � OUTLINE EXECUTIVE SUMMARY 2 1.0. INTRODUCTION 3 1.1. HISTORICAL BACKGROUND 3 1.2. CURRENT STATUS 5 1.2.1 SALES BREAKDOWN 5 1.2.2 STOCK INFORMATION 6 1.2.3 CURRENT STRATEGY 8 1.2.4 IMPROVED MARGIN AND COSTS 8 1.2.5 THORNTONS CAFÉ 9 2.0. CASE ANALYSIS 10 2.1. SCOPE OF BUSINESS 10 2.2. THE FIVE FORCES FRAMEWORK 10 2.3. STRATEGIC CAPABILITIES 12 2.3.1 RESOURCES 12 2.3.2 COMPETENCIES 12 2.4. COST EFFICIENCY 13 2.5. COMPETITIVE ADVANTAGE 13 2.6. STRATEGIC CHOICE 13 2.7. THE VALUE NETWORK 14 2.7.1 SUPPLIERS 14 2.7.2 DISTRIBUTION 14 2.8. CRITICAL SUCCESS FACTORS 14 2.9. PESTEL ANALYSIS 15 2.10. STRATEGY DEVELOPMENT …show more content…

In 1982 they began selling outside UK (sales to Europe & Australia reached 300000 sterling) In 1988 their stock price was 130p per share with the offer of shares eight times over subscribed. EUROPEAN & UK DEVELOPMENT. Their business in USA was not profitable & was closed. They had the opportunity to grow in Europe which had similar markets. They had acquired a Belgium chocolate & fresh cream producer & 2 French confectionary retailers. Each of these acquired companies was contributing to the supply to the other countries. They had a problem with regards to the seasonality of the demand on their products. Most of their sales came through their own shops. they used some other forms of distribution, this included franchising though it couldn't provide same customer experience. They had a long standing supply arrangement with Marks & Spencer and later with Sainsbury's. Commercial customers products differed by style & recipe from those provided through Thorntons own shops & regular customers could not be sure they were made by thornston. Results of their business in Europe was disappointing as the different consumers tastes became apparent in UK & France . IN 1993 Thornton France made a loss of 1.8 sterling pounds. A CHANGE OF DIRECTION In

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