Essay about Strategic Analysis of Thorntons - 2285 Words

Strategic Analysis of Thorntons and the Confectionary Market This essay will discuss the problems Thornton’s has experienced over the last few years and what challenges they face in current period between 1997-2002, examining the competitive environment and internal analysis as well as external environment (Political, Economical, Sociological, and Technological - PEST). It will also identify and evaluate Thornton’s strategic development from set up to the present time using the relevant framework and strategic tools. The essay will conclude by identifying possible strategies that Thornton might pursue in the future with ambiguous reasons supporting these recommendations. Political Economical †¢ Mail order response†¦show more content†¦Through introduction of Thornton’s cafes introduction is weak as they have competition like Costa and Starbucks as demonstrated below in figure 3, Porter’s Five force model and hence its a threat and right measures required to be taken to make it into a strength and opportunity, providing an intense challenge to them and important as its an area along with gifts they will be looking at to gain non-seasonal market in. Thornton’s are facing challenges in the UK and French markets after the devaluation of the pound sterling and downturn in the French economy, where they will have to opt to the strategy of lowering the demand or prices to meet their targets, as these two markets have been the more influential markets in their success and are a strength for the company that is posing an external threat. Their previous strength has been their sales in seasonal period which has now become a threat as they have failed to meet the 15% target set on year on year profits. Figure 3: Porters 5 force Models As figure 3 (Porters five force model) demonstrates Thornton’s has competition threat from supermarkets such as Walmart Asda and Tesco, the Boots, Marks and Spencers and BHS retail chains and Woolworths, with their large range of confectionaries, offering some competing products, including imported chocolates, being large retail stores they have bigger buyingShow MoreRelatedThorntons Strategic Analysis4154 Words   |  17 PagesIntroduction Thorntons is the largest, independent chocolate and confectionery company in the United Kingdom, founded by Joseph William Thornton, in Sheffield. It is a public company with both retail and manufacturing business. The company grew up from a cabin shop in 1911 over the years. His intention was to offer the best sweet shop in the town and later on after hundred years now it is the best and largest chocolate company in U.K. Today , the company is based in Derbyshire ,with 4000employersRead MoreStrategic Management Analysis for Thorntons, the UKs largest manufacturer and Retailer of specialist chocolates5576 Words   |  23 PagesStrategic Management Thorntons Case Study THORNTONS PLC CASE STUDY STRATEGIC MANAGEMENT COURSE ï ¿ ½ 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 12Read MoreCompany Analysis: Thorntons1640 Words   |  7 Pagesï » ¿Running Head: Analysis of Thorntons Analysis of Thorntons [Name of Student] [Name of Institute] Executive Summary Thorntons is found to be following a strategy including the element of vertical integration through the ownership of manufacturing and retailing stages of their businesses. The paper is helping in understanding the implications of companys pattern of vertical integration for competitive advantage and strategic development. It can be said that the internalization and protectionRead MoreThe Company s Largest Manufacturer And Retailer Of Specialists Chocolates1121 Words   |  5 PagesInstructor’s Name University Name City, State Date of Submission Introduction Thornton plc is regarded as the U.K’s biggest manufacturer and retailer of specialists’ chocolates. Moreover, the organization has been successfully operating in the region, for over ten decades, thanks to its unique strategic decisions. This paper will discuss at length about the company’s history, mission statement, and its strategic decisions, which have made the organization, be a formidable business for such a longRead MoreThe Sales Market : The Total Boxed Chocolate Market1311 Words   |  6 Pagesoverall confectionery market remains robust and of significant size at  £3.9 billion and it maintained a 2% growth in value over the past year, driven by price rather than volume. Thorntons’ focus within this is the total boxed chocolate market, which grew 3% over the past year to  £748 million. In the UK Commercial channel, Thornton retained their position as one of the top three brands within the boxed chocolate market with an 11.5% market share (201 3: 11.9%) and also remained a clear leader in their coreRead MoreHuman Due Diligence1432 Words   |  6 Pagesmost mergers, while success and failure of consolidations are profoundly connected to people involved-so human due diligence is critical. In any business, the people in the organization are its primary asset. Human due diligence is an in-depth analysis of the management team, staff, structure, issues, and managerial capacity of a potential partner. Human due diligence lays the ground work for a smooth integration. During merger negotiations and integrations attention and energy must be devotedRead MoreHR and the Competiton for Talent Essay1574 Words   |  7 Pagesfor attracting, developing, retaining and utilizing people with the required skills and aptitude to meet current and future business needs† (Lockwood, 2006). This paper talks about the challenges faced by organizations and how organizations use strategic HR to overcome concerns regarding attraction, recruitment and retention of talented employees. A few HR executives have raised that â€Å"the single greatest challenge in workforce management is creating or maintaining their companies’ ability to competeRead MoreThorntons Strategy over the Yea rs4024 Words   |  17 Pagescontributed to the success and problems faced by Thorntons up until 2003. Over the years, the company seems to have lost focus on its original strategy based on product differentiation and spread itself too thin in pursuit of multiple objectives. It is clear that the values on which Thorntons was originally founded were the principal reasons for the company’s initial success in Britain. From the very beginning, a combination of the quality ingredients that Thorntons had used and the manufacturing expertiseRead MoreStrategic Planning : Strategic And Organizational Planning1661 Words   |  7 Pagesutilized to fulfill the company’s objective. Strategic and organizational planning is the cornerstone of developing a business strategy to attain an organization’s purpose. With the passage of the Affordable Care Act (ACA), strategic and organizational planning have become essential in a healthcare system’s ability to remain competi tive within their community, as well as remaining compliant with governmental standards. This paper will explore strategic and organizational planning with the purposeRead MoreMarketing Analysis : Ferrero International S.a2022 Words   |  9 PagesVALUE CHAIN Strategic Overview In all the different stages of its value chain, Ferrero uses different approaches influenced by the distinctive underlying strategic rationales which leverage the KSFs that create each stage’s competitive advantage. In order to give a context to what are the recommendable strategies and actions for Ferrero moving forward, three blocks along the value chain are analyzed – Raw Material, Production, Point of Sale. The analysis of the company’s strategic rationale will