Bread Talk Business Strategy

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BreadTalk Group Limited

Prepared by:
Pek Sin Yee (3156436)
Soh Mei Mei Bibi (3151012)
Tan Rui Lynn (3154118)
Yong Wei Ting (3152841)
Chandrika Sridhar (3088524)
Executive Summary

Bread is one of the most popular staple in the Asian food culture. In the years, BreadTalk has successfully expanded their influence and reputation to 16 countries with more than 500 bakeries all around the world. BreadTalk is known for their 'see thru' kitchen concept which enables their chefs a platform to showcase the skills and capabilities. This also allows interaction between customers and employees.

A comprehensive analysis of the business strategy of BreadTalk Group Limited for the Thailand market revealed that its strategic objectives are aligned to the company’s vision and mission statement: Vision Establish BreadTalk as the foremost international, trend-setting lifestyle bakery brand | Mission Leading a new lifestyle culture with new, innovative changes and creative differentiation to craft products with passion and vibrancy | Innovative improvement and design of their products increased awareness of the brand, BreadTalk, complimented with the use of locations with high human traffic are increasing the market share of its bakery arm within the Thailand market.

Lessons drawn from the analysis have shown that BreadTalk is consistently seeking improvement and reviewing their strategies to stay abreast. Being in a country with cultural differences in food preferences, working attitudes and lifestyle, BreadTalk’s adaptation and globalization strategies has proven to be effective. Success is reflected in the confident future investment promise and processes in place to overcome their strategic implementation issues.

Table of Content
TABLE OF CONTENT3
Introduction5
Strategic Analysis6
Strategic directions and strategic objectives13
Key broad business-level and international strategies14
Strategic implementation: General perspective16
Key strategic implementation issues16
Strategic evaluation18
Conclusion: Current and future prospects and recommendations (Lessons learnt)19 Appendices20
References28

Introduction

BreadTalk is aggressively expanding globally and leaves footprints in China, Indonesia and Thailand. With Singapore and China markets dominating the overall revenue for the bakery arm, a review on the business strategy for the Thailand market carried out. Strategies and implementation issues are identified to increase the market share and revenue for BreadTalk Thailand using the rational / formal model.

BreadTalk’s company history and background is attached in Appendix A.

With a strategic analysis on the external and internal environments using models / theories like PESTEL, Porters’ 5 Forces, analysis of turbulences and internal strategic competitive advantage, useful strengths and weaknesses, opportunities and threats are identified in this report. Strategic implementation and implementation issues are discussed further. Successful implementations are useful lessons for review.

Strategic Analysis

External analysis: General environment

PESTEL model

Political/Legal
Thailand has faced various political/government instabilities, such as the Thai coup d'état in 2006, the elections for a new constitution in 2007, a political crisis in 2008, and crackdowns and protests which involved violence from 2009-2010. Although the ruling of the July 2011 elections belonged to the Pheu Thai Party, the political situation was still shaky. There was a conflict between the “red shirts” (supporters of current ruling Pheu Thai Party) and “yellow shirts” (oppositions of the Pheu Thai Party), resulting in continuous tensions. All the bloodshed also damaged the economy, sinking the already suffering consumer confidence even more.

Besides this matter, Thailand's also having issues with its neighboring country, Malaysia. Both countries' relationships have soured greatly because of the...
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