Ab Foods Case Study
ABF is a diversified group of businesses which enjoy a high degree of autonomy in the running of their operations. Its business is split into five business segments: Sugar, Agriculture, Retail, Grocery and Ingredients. (1) Application of new technology research and development are vital to AB Foods, which is one of top five European companies by market capitalisation (3) to assess the internal and external environmental factors. Five forces and PESTEL are separately used in helping AB Foods assess the micro and macro factors, so that it can decide their strategic objectives definitely. Identifying its strengths, weakness, opportunities, and threats using SWOT analysis is a powerful tool for AB foods to improve their competitiveness and market share.
Changes in the macro environment bring both opportunities and threats to AB Foods in food service industry market. On the one hand, with the rapid development of technology, many companies get negative influences from it includes AB Foods. AB foods is one of top foreign investor in feed manufacturing, it puts a lot of efforts on pioneering animal feed and develop advanced technology to improve its agriculture productivity. AB Foods also dedicates itself in exploring sustainable solution for co-products utilized by food manufacturer and food processor to a great extent. Moreover, it helps local farmers to improve the capacity and quality of major crops like maize, soybean and sugar beet as well. Its high productivity and diversification of services make AB Foods has a strong competitiveness and its risk always at a low level. (2)
On the other hand, nowadays, the growth of world population is rising up quickly. It becomes an enormous stress to meet the demand for food. Though, it turns into an opportunity for AB Foods to make more profits. To meet the demand for food, the development of improving the productivity of food for AB Foods is at-the-minute. In addition, food safety becomes an emphasis for people after
Changes in the macro environment bring both opportunities and threats to AB Foods in food service industry market. On the one hand, with the rapid development of technology, many companies get negative influences from it includes AB Foods. AB foods is one of top foreign investor in feed manufacturing, it puts a lot of efforts on pioneering animal feed and develop advanced technology to improve its agriculture productivity. AB Foods also dedicates itself in exploring sustainable solution for co-products utilized by food manufacturer and food processor to a great extent. Moreover, it helps local farmers to improve the capacity and quality of major crops like maize, soybean and sugar beet as well. Its high productivity and diversification of services make AB Foods has a strong competitiveness and its risk always at a low level. (2)
On the other hand, nowadays, the growth of world population is rising up quickly. It becomes an enormous stress to meet the demand for food. Though, it turns into an opportunity for AB Foods to make more profits. To meet the demand for food, the development of improving the productivity of food for AB Foods is at-the-minute. In addition, food safety becomes an emphasis for people after
Bibliography: (1) ABF plc. (2013) http://www.abf.co.uk/about_us/our_group/our_businesses (2) ABF plc. (2010) http://www.abfchina.com/?action=sr&lang=en&root_id=4&class_id=18 (3) ABF plc. (2010) http://www.abfchina.com/?action=about&lang=en&root_id=2&class_id=27 (4) ABF plc. (2010) http://www.abfchina.com/?action=sr&lang=en&root_id=4&class_id=20 (5) ABF plc. (2010) http://www.abfchina.com/?action=sr&lang=en&root_id=4&class_id=21