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
Its value is that they will be caring and considerate of their employees, customers, suppliers, shareholders, the community and the environment by showing respect to each other and valuing diversity, working together to achieve a safe, friendly and positive working environment, setting clear expectations, recognising contribution and developing their people, leading by example and taking responsibility for their actions, communicating clearly, inclusively, honestly and in a timely manner, having pride in their product and passion for the business, its heritage and its future and contributing to the community through corporate benevolence and environmentally sustainable practices (Haigh's Chocolates).
The basic characteristics of the marketing concept that could be identified in Clare’s Chocolates are as follows:
Mondelez International Inc. is a large manufacturer and marketing company with a variety of beverage products and snack foods. The company came into existence in 2012 when Kraft Foods Inc. went through a corporate restructuring in order to implement “high-growth global snacks.” (Gamble, 2016.) Nabisco, Oreo, Trident gum, and Oscar Mayer are a few brands that operate under Mondelez Inc.
owners have found that demand for their product has outstripped their ability to supply it. They
In order to for the company to expand, some changes had to be made. Rather than continuing to sell only closeout merchandise, the founders decided for their stores to be the equivalent of traditional variety stores, which had a large selection of basic goods priced at one dollar or less. In order for that to work they had to change the way they purchased their merchandise, which consisted on deals and novelties. They began buying directly from foreign manufacturers and manufacturers in the United States.
This is what differentiate them from their competitors and this is what will convince you to shop with Sainsbury’s.
Thornton’s, a premier chocolatier founded in the UK in 1911, is a High Street business operating solely in the United Kingdom with a single product in its portfolio: gourmet chocolates. Today, Thornton’s has annual sales revenues of £221 million which are provided by 350 different cafes and retail stores, consisting of over 200 franchises that offer products via the Internet, in-store, and mail order. Thornton’s is a publicly traded company on the London Stock Exchange, with a current stock value of £99 per share (Bloomberg 2014). The company has, between 2012 and 2013, seen basically flat sales (221M in 2013 and 222M in 2014), which is a problem for achieving growth for this High Street firm. The company was, however, able
In addition to actual product formulation, the positioning, size, and packaging were all issues to be addressed as well. In regards to positioning, health vs. taste needed to be considered. Given credibility issues due to the unfamiliarity of the Montreaux name in America, should brand be tailored more to the American consumer as well? In regards to size and packaging, would consumers have more interest in smaller squares in stand up package or a 3.5 ounce bar, given growing health and fitness concerns.
ABLE OF CONTENTS 1.0 EXECUTIVE SUMMARY3 2.0 INTRODUCTION3 2.1 Background to Organization3 3.0 ANALYSIS3 3.1 Porters 5 Forces (Model of Competition)3 3.2 PESTEL (External Analysis)5 3.3 SWOT6 4.0 KEY FINDINGS OF ANALYSIS/PROBLEM IDENTIFICATION/ KEY STRATEGIC CONCERNS6 4.1 Vertical Integration6 4.2 Diversification7 5.0 POSSIBLE SOLUTIONS & STRATEGIES.8 7.0 CONCLUSION9 8.0 APPENDICES11 Appendix 1: Porters 5 Forces11 Appendix 3: Luxury Goods Group & Brands Top Ten Competitors13 Appendix 4: Industry Map*.14 Appendix 5: Financial Performance14 Appendix 6: PESTLE Analysis15 Appendix 7: SWOT Analysis16 Appendix 8: Evaluating industry Attractiveness and Competitive strength19 Appendix 9: A Nine Cell Industry Attractiveness-Competitive
Founded in 1884, Marks & Spencer gradually transformed itself from a small booth to a global department store company with multiple channels,
The quality of the product was taken for granted by the customer and with competition heating up companies had to differ themselves from their
The company’s strategy is to be a market leader in the industry by expanding and developing the range of products and services. Two major ways in which the company grows and increases its revenue is by organic growth and by making acquisitions in Continental Europe and in the UK. (The Davis Service Group Plc Report and Accounts 2007)
In 1921 HMV opened its first store in London 's Oxford Street. Shopping in HMV 's first store was very different from today’s retailing experience. The shop sold mainly HMV branded goods. It was also fairly exclusive; some customers had accounts and were often served on a one-to-one basis. Outside London, HMV products could only be purchased from exclusively appointed dealers.
The regional-sales breakdown was 7% from Asia, 12% from Latin America, and 32% from Europe outside France. For Carrefour, 2001 was the first year that total sales outside France exceeded total domestic sales. Carrefour was the largest retailer in France , Belgium , Greece , and Spain. Exhibit 2 details Carrefour’s consolidated financial statements.
* Some of the products are seasonal: demand is higher than average at certain times.