Snowplanet Company

Discuss about the Situational Analyses of Snowplanet Company and Whittaker’s Artisan.

With the changes in economic conditions, the organization has been using the strategic business functioning with a view to meet their certain goals and objectives. In this report, situational analyses of two companies have been taken into consideration. It is evaluated that both companies have been running their business on the international level. The purpose of this report is to analysis both companies by evaluating strength, weakness, opportunity, and threats. 

Snowplanet Company

Snow planet is an indoor snow recreation center in Sliverdale on the Hibiscus coast in New Zealand. Snowplanet is the first indoor snow facility that was started in March 2005. The firm provides ski rentals and lessons and renders a wide range of programs for all capabilities and provides group bookings for business and schools. It also provides various types of off-snow services to the customers.

Whittaker’s Artisan

It is a chocolate manufacturing company. Whittaker’s Artisan collection is a range of six 100g blocks for chocolate lovers, featuring local ingredient sourced from the Pacific and New Zealand. Heilala provides vanilla chocolates and other products to the customers in New Zealand (Whittakers, 2018). Whittaker’s opened in 1920 to make their first blocks and now it has become the favorite blocks in New Zealand. It uses most significant precise machinery to deliver the most delicious and yummy chocolates in the market. There are many iconic collaborations and corporations with 100s and 1000s, all blacks, L&P and Jelly tip. Whittaker’s artisan uses various advertisement and promotion tools and techniques to attract more consumers in the marketplace (Whittakers, 2018).

Situation analysis is done by the company to examine and evaluates the strengths and weaknesses of the competitors. SWOT analysis, pestle analysis, and porter five forces analysis are done by Snowplanet to gain competitive benefits in the global market.

Internal Macro environment

An internal environment is encompassed by the various factors such as current employees, customers, and management within the organization. These factors also affect the growth and success of the firm. Snow planet uses marketing mix strategies to overcome the competitors in the market. The marketing mix for the company has been stated below.

Product- The product mix strategy plays a vital role to attract and retain the customers by providing innovative products. Snow planet provides Ski rentals and group bookings to the customers across the world. It has been designing perfect weakened and holiday packages for the clients through its amazing offers. The main weakness of the Snow planet is related to its financial constraints. Due to the high fixed investment, it has faced the complex issue in its cost of capital. The high legal compliance of New Zealand has also resulted in high penalties to the company.

Whittaker’s Artisan

Price- The people in New Zealand are highly attractive towards the offers and high discounts. The company has followed cost leadership strategy to attract more clients in New Zealand. It has been analyzed that due to low pricing for its products, the company has kept its profit very low which will eventually decrease the value creation capacity of the company.

Place- It has opened up its outlets in various places in New Zealand. It has also invested its capital in other countries with a view to attracting more clients. It has also set up two to five units in New Zealand to increase its overall return on capital employed. The main issue is related to increased employee turnover. It has also reduced its overall return on capital employed. It has also decreased its investment which will destruct the operating activities of its different business units.

Promotion- Snowplanet Company needs to promote its business by setting up seminars and online advertisement. It has also used search engine optimization to implement the effective promotional planning.   Snow planet has kept the price of its tickets very low with a view to attracting more clients. Therefore, it will eventually reduce the overall return on capital employed. It has invested the high amount of capital in its online advertisement plan which increases its overall cost of capital.

Strength	Wight	Rating	Weighted score
Product	.4	4	1.6
Price	.3	3	.9
Place	.2	5	1.0
Promotion	.1	4	.4
Total	1		3.9
Weakness
Product	.03	3	.9
Price	.2	4	.8
Place	.3	4	1.2
Promotion	.2	2	.4
Total	1		3.3

 

External Macro-Environment
Opportunity	Weight	Rating	Weighted score
Globalization makes it easy to enter the international market	.20	3	.60
People are looking for holiday packages and snow world	.20	4	.80
People are looking for Holiday packages and snow world	.10	3.5	.35
Demand for new products.	.15	4	.60
Increase in inflation rates creates a demand for lower-priced products.	.10	3	.30
Many other Snow business organizations are pricing their membership to attract the people.	.15	3.5	.525
Increase in the number of competitive fitness firms	.10	4	.10
Total score	3.275

An external environment is composed of all the outside factors and influences that have the direct impact on the operations and activities of the business. The macro environment factors include political, economic, socio-cultural, environmental and environmental factors. All the data has been collected by using the proper journal articles and statistics data from the web.

Socio-cultural forces

The Company can analyze and evaluate the custom, values, beliefs, and culture of the country to gain competitive advantages in the market. The social system of the country is wonderful and effective therefore Snow planet has been able to get competitive benefits in the market. With an effective socio-cultural system, the firm can use new technology and strategies. Snow planet has the threat of changing clients’ needs and demand in the market. It has to customize its offered products and services with a view to attracting more clients.
It will increase the overall cost of the business. The company needs to take proper government license at every time while changing its business units.

Economic forces

The GDP rate of New Zealand has increased 39,426.62 USD which is 10% higher as compared to last two year data. The increased inflation rate and purchasing power of people in New Zealand have shown a positive indicator for the increased overall turnover of the company. The competition of the Snow Planet is high in New Zealand which will impact the pricing policies of the company. The main threat of New Zealand is based on the rivals offering in the market. It is observed that company has to make consistent changes as per the demand and need of the clients. Economic, socio-cultural, environmental and environmental factors are highly based on the political condition of New Zealand. It shows that company has to consistently change its products offering with a view to attracting more clients.

SWOT Analysis

Strength- Snow Planet has created the strong brand image in New Zealand by offering its products in market by considering custom, values, beliefs, and culture of the country to gain competitive advantages in the market (Snow Planet, 2018). It has also used advanced technologies and system to establish the effective communication plan.

Weakness- The main weakness of Snow Planet is related to its less effective legal compliance program. The cost of its products and services offered in New Zealand is comparatively high as compared to other business rivals. It has also faced high penalties and issues due to its complex business structure.

Opportunity- the GDP rate of New Zealand has increased by 10% as compared to last three year data. It is analyzed that higher GDP rate will showcase the positive market outlook for the business expansion. In addition to this, use of advanced technologies and customization of its products will attract more clients and eventually increases the overall turnover.

Threats-The increased industry market return of company and fewer betas will highly attract the new rivals to enter this snow market. It has also entered into strategic alliance with other organization which will eventually decrease the overall profit.  However, Snow planet packages and business set up requires high fixed amount capital which may show less threat of new rivals. However, increased profitability of the business may attract other organizations to diversify their business in this business sector.

Strength ·         Strong Brand image ·         Unique offering ·         Core competency to offer product differentiation strategy	Weakness ·         less effective legal compliance program
Opportunity ·         Strong NZ $ value ·         Positive external environment	Threats ·         Highly profitable to attract other organization. ·         Innovative technologies used by others.

This analysis is used to evaluate the strength, weakness opportunity and threats of business.

An internal environment is encompassed by the various factors such as current employees, customers, and management within the organization. These factors also affect the growth and success of the firm. Snow planet uses marketing mix strategies to overcome the competitors in the market. The marketing mix for the company has been stated below (Fitzharris, 2007). Product- Company offers vanilla chocolates and other products to its customers across the world. It has followed the strategic innovative program to win over the market. The main weakness of Whittaker’s Artisan is related to its increased complexity and low level of market share. It has covered only 3% market share of its chocolate selling industry.

Price- The price reflects the managerial decisions and actions of the business pertaining to pricing strategies and policies in terms of margin of profit allowances and discount. The Snow planet offers the first indoor snow facilities in New Zealand. Therefore, the company should set the appropriate prices for snow facilities in the marketplace. The pricing policies of the company are too stable which shows the negative indicator for the business. The skimming pricing policies of Whittaker’s Artisan will eventually decrease its overall sales by 5% t0 15%.

Internal Environment Analysis

Place- It has established its several outlets in various places in New Zealand to grab more clients in the market. It has set up its business units in Crowd areas to attract more clients. The increased employee turnover cost of capital and less customized chocolate will eventually put the negative impact on company’s offering.  The retail outlets are not as per the required needs of the clients which will decrease its attractiveness toward clients.

Promotion- Whittaker’s Artisan could use advanced technical program and online systems to offer a different type of chocolates in the market. It could also use the online cyber chain to set up new communication method (Morello, 2014). The promotional mix includes advertising; personal selling, public relations, sales, trade fair, and exhibitions are initiated by Snow Planet Company to meet the long-term goals and objectives. The company made 12% of its investment expenses in its promotional activities which is comparatively too high (Beames, & Brown, (2014).

Source: https://theregister.co.nz/news/2016/05/hello-again-chocolate-lovers-nigella-comes-back-promote-whittakers-latest-four-artisan-flavours?page=39

Strength	Wight	Rating	Weighted score
Product	.3	3	1.6
Price	.4	4	.9
Place	.1	4	1.0
Promotion	.2	5	.4
Total	1		3.9
Weakness
Product	.03	3	.9
Price	.2	4	.8
Place	.2	3	1.2
Promotion	.2	3	.4
Total	1		3.3

 

The external factors of the company are related to its all the factors which are not in control of the organization (Larner, 2007).           

Social-cultural factor

The main client for Whittaker’s Artisan is Children who are very found to buy chocolates.  It has been selling customized chocolates either by changing their shapes, sweetness and other contents as per the clients. Changing clients’ needs and demand in the market is the biggest issue for the Whittaker’s Artisan business. It has to consistently chocolates either by changing their shapes, sweetness and other contents as per the clients which eventually increase the overall cost of the business.

Economic Factors

 The increased GDP rate of New Zealand and purchasing powers of clients have shown the positive market indicator for the growth of the Whittaker’s Artisan. The high competition will help Whittaker’s Artisan to follow cost leadership program to attract more clients. Currently, it has grabbed 4% chocolate industry market share which is very less. Whittaker’s Artisan by using the advance technologies, cost leadership strategy and customized chocolates could increase the sales of its products (McCulloch, & Weatherall, (2017). Economic, socio-cultural, environment and environmental factors are highly unstable in context with the Chocolate industry. The import of raw material required for preparing chocolate has become hard and increased tariff and traits show negative to the business of Whittaker’s Artisan (Dean, Mengüç, & Myers,. (2010).

External key factor
Opportunity	Weight	Rating	Weighted score
Globalization makes it easy to enter the international market	.20	2	.60
People are looking for high quality and cheap products	.30	3	.80
People are looking for cheap Chocolates and other products	.05	2.5	1.25
Demand for new products.	.20	3	.60
Increase in inflation rates creates a demand for lower-priced products.	.10	3	.30
Many other chocolate offering companies are pricing loyalty program to attract the people.	.15	3.5	.525
Increase in the number of competitive fitness firms	.10	4	.10
Total score	3.275

 

Strength

Whittaker’s Artisan has used systematic work chain in which advance technologies and machines are used for preparing the customized chocolates for clients in New Zealand (Liu, & Robinson, 2016). Product differentiation strategy- It has been offering the range of six 100g blocks for chocolate lovers, featuring local ingredient sourced from the Pacific and New Zealand which is highly different as compared to other rivals.  It has highly expert’s employees who are efficient in delivering the best results for the growth of the business.

Marketing Mix Strategies

Weakness

The main weakness of Whittaker’s Artisan is related to customization of its chocolate offering. It has to concisely change its work process (Sin, & Stillman, 2016). Another issue is related to legal compliance and the high cost of production. Whittaker’s Artisan focuses on keeping the quality of its chocolates high which eventually increases the overall cost of production by 12%.

Opportunity

The positive economic growth and increased purchasing power reflect that company will increase its overall turnover (Chan, Chen, & Wong, 2017). It could also integrate its business forward and backward to reduce the cost of capital.  It has also followed international work process which has resulted in the increased brand image in New Zealand.

Threats

The Increased profitability of the business may attract other organizations to diversify their business in this chocolate industry.  If employees leave the organization then it may hard for the company to continue with the business due to its complex value chain activities.  It will increase its business cost by 25% if employee turnover is increased to 10% of its overall employees (Dann, 2015). 

Strength ·         Systematic work chain and advance technologies and machines. ·         Product differentiation strategy ·         Highly expert’s employee’s growth of the business.	Weakness ·         Customization of its chocolate offering. ·         High legal compliance. ·         The increased cost of capital due to the high import tariff.
Opportunity ·         Economic growth ·         High Purchasing power ·         International work process	Threats ·         Increased profitability. ·         High Employee turnover.

This analysis has been implemented with a view to evaluating the difference and similarity in both companies. It has been observed that Whittaker’s Artisan has the strong brand image and as compared to Snowplanet, it has high growth and profitability at large (De Bres, 2015).

Commonalities

Social culture value- The value, perception, culture of the people in New Zealand is different than other countries which will be same for Whittaker’s Artisan and Snowplanet.

Economic value- The high purchasing power and increased GDP rate will show the positive outlook for both companies which will assist them to expand their business in determined approach (Leung, and Rioseco, 2017).

Value chain activities

Snowplanet has high expert’s employees which will increase the overall client’s satisfaction level. On the other hand, Whittaker’s Artisan has strong value chain activities and established advance equipment’s and machines to customize its range of six 100g blocks for chocolate lovers, featuring local ingredient sourced from New Zealand to attract more clients.

Organizational culture

Whittaker’s Artisan has focused to make its organizational culture more employees oriented with a view to increasing its overall turnover. It has been observed that Snowplanet has focused on following the international work chain in its all business units to create the international brand image in the business units of New Zealand and other places (Filippini, Greene, and Masiero, 2016).

Strengths, Weaknesses, Opportunities, and Threats Analysis

Capital investment strategies

Whittaker’s Artisan has used debt to equity funding in its business. However, the debt portion of the company is kept low with a view to reducing the overall financial leverage. At the same time, Snowplanet has also used bank loan and debt-equity funding to raise funds for its business activities (Jackson, and Cameron, 2017).

Conclusion

After analyzing all the details and data, it could be inferred that these both companies have the strong market position in the market. However, by entering into strategic alliance with other organization, these companies could increase their overall market share. Snowplanet needs to consistently change its products and holiday packages with a view to attracting more clients. On the other hand, Whittaker’s Artisan should focus on customization of its chocolate and other products to win over the competitors. Now, in the end, it could be inferred that if proper strategic policies and effective corporative strategic plans are followed then both companies could expand their business in international level.

References

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Fitzharris, B. (2007). How vulnerable is New Zealand to the impacts of climate change?. New Zealand Geographer, 63(3), 160-168.

Beames, S., & Brown, M. (2014). Enough of Ronald and Mickey: Focusing on learning in outdoor education. Journal of Adventure Education & Outdoor Learning, 14(2), 118-131.

Morello, L. (2014). Downhill forecast: winter sports face an uncertain future as the planet warms. Nature, 505(7486), 20-23.

Larner, W. (2007). Expatriate experts and globalizing governmentalities: the New Zealand diaspora strategy. Transactions of the Institute of British Geographers, 32(3), 331-345.

Dean, D. L., Mengüç, B., & Myers, C. P. (2000). Revisiting Firm Characteristics, Strategy, and Export Performance Relationship:: A Survey of the Literature and an Investigation of New Zealand Small Manufacturing Firms. Industrial Marketing Management, 29(5), 461-477.

McCulloch, A., & Weatherall, A. (2017). The fragility of de facto abortion on demand in New Zealand Aotearoa. Feminism & Psychology, 27(1), 92-100.

Sin, I., & Stillman, S. (2016). Economic liberalization and the mobility of minority groups: evidence from M?ori in New Zealand. IZA Journal of Migration, 5(1), 4.

Liu, J. H., & Robinson, A. R. (2016). One ring to rule them all: Master discourses of enlightenment—and racism—from colonial to contemporary New Zealand. European Journal of Social Psychology, 46(2), 137-155.

Chan, K. K. Y., Chen, L., & Wong, N. (2017). New Zealand State-owned enterprises: is state-ownership detrimental to firm performance?. New Zealand Economic Papers, 1-15.

Dann, C., 2015. Up from under: women and liberation in New Zealand, 1970–1985. Bridget Williams Books.

De Bres, J., 2015. The hierarchy of minority languages in New Zealand. Journal of Multilingual and Multicultural Development, 36(7), pp.677-693.

Leung, J. and Rioseco, P., 2017. Burnout, stress, and satisfaction among Australian and New Zealand radiation oncology trainees. Journal of medical imaging and radiation oncology, 61(1), pp.146-155.

Jackson, N. and Cameron, M.P., 2017. The Unavoidable Nature of Population Ageing and the Ageing-Driven End of Growth–an Update for New Zealand. Journal of Population Ageing, pp.1-26.

Filippini, M., Greene, W., and Masiero, G., 2016, February. Persistent and transient productive inefficiency in a regulated industry: electricity distribution in New Zealand. In Energy: Expectations and Uncertainty, 39th IAEE International Conference, Jun 19-22, 2016. International Association for Energy Economics.

Whittakers.,(2018). Our story, Retrieved from 27^th April 2018, https://www.whittakers.co.nz/en_WW/our-story/

Snow Planet, (2018). Products, Retrieved from 27^th April 2018,< https://snowplanet.co.nz/2018/04/