Situational Analysis

Discuss About The Centre Promotion Invention In Thessaloniki.

The report aims to represent a marketing plan of the Lion Dairy and Drinks, earlier known as “national Foods”, an Australian-based dairy company. The headquarters of the company is located at Chelsea Heights, Melbourne, Australia. It is a major dairy company of Australia, a subsidiary company of its parent “Lion” which is originally owned by the Japanese company Kirin Holdings Co. Ltd. The company “National Foods” was founded by Adelaide Steamship Company in 1991. It was by merging several dairy and food manufacturing companies with good brand values and histories of the 19^th century. Dare is Australia’s the best brand to sell their iced coffee. Presently, in the year 2010, the company has launched a new product “dare iced coffee”.  The brand has a number of products including Dare Double Espresso, Dare Espresso, Dare Mocha, and Dare Raw ((Lionco.com, 2018).

The concept of situational analysis refers to the collection of the methods that are used by the managers of an organization in order to analyze the internal as well as the external environment of the organization. It makes one able to understand the capabilities, the customers and other aspects of the business or of the organization. The situational analysis consists of several methods of analysis. These include the PESTLE analysis, the Porter’s Model of Five Forces and the SWOT analysis (Fram 2013).

The term PESTLE stands for Political, Economic, Social, Technological, Legal and Environmental analysis. It provides a brief description of the whole environment of the company from all the angles. In marketing, before making any kind of strategy or before implementing some plans in business and in organizations, it is most essential to conduct the situational analysis. PESTEL is the part of the situational analysis that can be and has to repeated art regular intervals (preferably at an interval of six months) in order to identify the changes that has occurred in the macro or external environment of the firm (Mkude and Wimmer 2015). An organization that successfully monitors the changes in their external environment can distinguish themselves from their competitors and can establish them well in the market.

The major factor that affects a company is the source of raw materials.  This has combined a lot of politicians of the countries in the world especially of those from whom the main ingredient, coffee is imported (Aithal 2017).

PESTLE Analysis

The global recession that is presently seen has resulted in many people to opt for cheap products. Dare is comparatively cheaper than other coffee brands such as Starbucks. The company is using high quality ingredients but the costs of the product are kept low. As a result, the company does not have to deal with rising labor and operational costs.

Keeping high quality, Dare provides cheaper coffee to the people of Australia.  Moreover they are using the premium ingredients such as Robusta and Arabica coffee beans in order to produce their goods (Mighty 2015).

With the use of advanced technologies, companies can provide more information about the products. The companies can also establish better relationships with their customers. Moreover, if the modern technologies are used in manufacturing the products, there will be very less wastage, increasing the quality and quantity of the production.  

The company Lion drinks and Beverages must ensure not to dispute the laws of their home market and of those from whom they are getting their raw materials. The company should also keep in mind about the introduction and production of caffeine as well as its consumption related policies and regulations as stated by the health authorities.

As it is a beverage company, there is a high chance of the company to face certain problems with regard to the environment. The main cause of environmental pollution and environmental degradation ids the using and throwing off of the plastic cups and bottles.  The company can change its bottle and cups into reusable and recyclable items in order to reduce environmental pollution.

The Porter’s Model of Five Forces is a model that helps to analyze the strengths and weakness of a business. It provides a through explanation why different industries have the capability to sustain different levels of profitability (McLay 2014). The forces are often used to measure the intensity of competition, attractiveness and profitability of an industry. The forces include competition among the companies in the industry, potentiality of new companies to enter into the industry, power of suppliers to bargain, power of customers to bargain and substitution of products.

There is a very tough competition among the producers and sellers of the iced coffee. The French-based company Malongo also offers coffee pods to other companies. There are companies who use only one kind of coffee beans in a single cup of coffee. Dare uses both the kinds of coffee in the production of a single drink.

Porter’s Model of Five Forces

 Barista, Mr. Bean Cold Brew Coffee and many such companies that are producers of the cold coffee and iced coffee. The Lion Drinks and Beverages have no longer the monopoly for the production of the iced coffee. The new companies that are emerging are offering their new products in the national and international markets. Though the initial setup of the company is too high, the company must comply with the technologies and the norms which act as barriers for the new companies to enter.

The bargaining capacity of the suppliers of the organization, Lion Drinks and Beverage Company is very high. The company uses unique blend of the both the varieties of coffee- the Arabica and the Robusta along with fresh milk. Availability of both the varieties of coffee is very difficult (Matsuura 2014).

The customers of the Dare products do not have any bargaining power as it is decided by the company itself. The company does not sale their products in the traditional retail chain. Customers either have to visit their store or have to buy the products online.

Substitute for iced coffee include caffeine free and healthier products such as iced matcha latte, iced maca and iced dandelion coffee. The matcha latte is made from green tea leaves which are healthier. The maca is a root and a relative of the radish family. It contains high percentage of vitamins, essential minerals and fiber. The dandelion coffee is of totally herbal origin and is made from the roots of dandelion. There are other alternatives such as the yerba mate, which contains very low amount of caffeine in a single cup (Zalengera  et al. 2014).

The SWOT analysis is a technique of strategic planning. It helps a business or an organization to detect its Strengths, Weaknesses, opportunities and Threats related to the business competition or to plan a project. The degree to which the internal situation of the firm and external environment matches is expressed by the most important and essential conditions. It is very important to identify and understand the SWOT analysis as it provides a clear picture of the steps that can be taken in order to achieve the goals (Bull et al. 2016).

The major strength is that the company it employees around 7500 people across Australia and New Zealand.  It has a good portfolio of market leading. The company uses best qualities of Arabica and Robusta. It is a major contributor to the economies of Australia and New Zealand due to the purchase of agricultural products and its retail business. It has its market in every state of Australia and New Zealand.  It also operates in other countries such as Malaysia, Singapore and Indonesia.

SWOT Analysis

The brands like Prima Tricolor Twirler Fruit Drink have made competitive market. These products are healthier than the beverages like beer and coffee. The company operates in only a few countries of the world. As a result the revenues are very low as a compared to its competitors (Savvidis 2016).

It has greater opportunities to expand at a global level and to enter the emerging economies for better markets. The company can open more retail supermarket chains. It can also enter into joint ventures with other firms like Wallmart in order to develop its market. The company can focus on the supply chains and manage to reduce the costs.

The parent company of Dare has to face the controversy over launching the products that affects the business. There has been a huge issues related to the trust deficit among the customers. This is due to the fact that the parent company contaminated their products at some point of time (Beuchelt and Zeller 2013)

Conclusion

From the report, it can be concluded that the products produced by the company is not only the factors that can be considered. The company should also take into considerations the opportunities and try to take advantage of them. The company should hold its strength and work on its weaknesses. Like all the companies and businesses, the Lion Dare Iced Coffee also has some threats. The company should work seriously and steadily on its threats or else might lose its brand value.

References

Aithal, P.S., 2017. Industry Analysis–The First Step in Business Management Scholarly Research.

Beuchelt, T.D. and Zeller, M., 2013. The role of cooperative business models for the success of smallholder coffee certification in Nicaragua: A comparison of conventional, organic and Organic-Fairtrade certified cooperatives. Renewable Agriculture and Food Systems, 28(3), pp.195-211.

Bull, J.W., Jobstvogt, N., Böhnke-Henrichs, A., Mascarenhas, A., Sitas, N., Baulcomb, C., Lambini, C.K., Rawlins, M., Baral, H., Zähringer, J. and Carter-Silk, E., 2016. Strengths, Weaknesses, Opportunities and Threats: A SWOT analysis of the ecosystem services framework. Ecosystem services, 17, pp.99-111.

Fram, S.M., 2013. The constant comparative analysis method outside of grounded theory. The Qualitative Report, 18(1), p.1.

Lionco.com. (2018). 2000’s |Our History | About Us | Lion. [online] Available at: https://lionco.com/about-us/our-history/2000s [Accessed 30 Apr. 2018].

Matsuura, Y., Hosokawa, T., Serracin, M., Tulgetske, G.M., Miller, T.A. and Fukatsu, T., 2014. Bacterial symbionts of a devastating coffee plant pest, the stinkbug Antestiopsis thunbergii (Hemiptera: Pentatomidae). Applied and environmental microbiology, 80(12), pp.3769-3775.

McLay, A., 2014. Re-reengineering the dream: agility as competitive adaptability. International Journal of Agile Systems and Management, 7(2), pp.101-115.

Mighty, M.A., 2015. Site suitability and the analytic hierarchy process: How GIS analysis can improve the competitive advantage of the Jamaican coffee industry. Applied Geography, 58, pp.84-93.

Mkude, C.G. and Wimmer, M.A., 2015, May. Studying Interdependencies of E-government Challenges in Tanzania along a Pestel Analysis. In ECIS.

Savvidis, V., 2016. Business Plan: Centre for the Promotion of Invention in Thessaloniki.

Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T., 2014. Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.