This report discusses the analysis Hubbard Foods as a company competing in cereal industry. The main focus of the report is analyzing Hubbard's operating environment, evaluating strategic issues or challenges and recommending strategy to overcome company's current issues. Firstly, Hubbard’s operating environment is categorized into external and internal environments. This includes analyzing Hubbard's strengths, weaknesses, opportunities and threats in running and managing the business. PEST+ analysis and Porter's five factors are methods that are used to find the external factors that impact on Hubbard's performance. The result from this analysis shows that trade agreements, economic circumstances of New Zealand, eating habits in New Zealand society, advanced technology for Hubbard's research and development, and globalization aspect are used to determine the opportunities for Hubbard's strategy. Furthermore, the threats are identified through Porter's five factors that include an intense competition, weak barrier to entry, high level substitute products and strong power of supplier. In term of Hubbard's internal environment are analyzed using resources, core competencies and value chain. It summarized the strengths and weaknesses of the company. The strengths include unique innovative products and the implementation of family culture as their competent management system. From core competencies it is shown that the weakness of Hubbard is that the products are not a rare product as the product is similar to other competitors. Additionally, another major weakness is research from the value chain which is lack of advertising activity. Hubbard's current strategic issues and challenges are laid on a high cost of raw materials, lack of advertising activity and simplex distribution channel. This issues results on strategy recommendations which are to internationalize Hubbard's products to China market via export entry mode. This will helps Hubbard to gain a bigger market and investments. In planning the exporting strategy, market research should be done in advance to gain an insight of consumers in china and also to find local partner. Another action is to planning the budget also to find the trade agreement with China market.
1. Company Description
Hubbard foods Ltd is one of a successful cereal company which was found by Dick Hubbard. Headquartered in Auckland, New Zealand, this private company was incorporated in mid-1988 as Winner Foods Ltd, but decided to change its name to Hubbard Foods in 1990. Began with only 4 employees, this company slowly started to develop and compete amongst the three well-known companies, Sanitarium, Uncle Toby's and Kellogs. Today, the company employs approximately of 130 staffs produces a wide range of different products and sells its products in New Zealand and exports to Australia, UK and Asia. Hubbard produces 36 different product ranges from mueslis, bran flakes, oat-base cereals as well as gluten free cereals; Hubbard determined their price at both the high price assortment to the low end of the cereal market. The adoption of a strong and stable management structure within the organization has benefited Hubbard to be able to compete within a highly competitive environment of FMCG industry. Hubbard's policy required that the management within the organization should be commence without nonsense such as no management excesses, corporate ego trips, committee decisions, inter-company memos, buck passing, back stabbing, or any other dubious management decisions allowed on these premises (Hanson, Hitt, R. Duane, & Hoskisson, 2011). Hubbard tends to hold an open communication culture within the company to allow all employees in giving and sharing their ideas in order to succeed the company's strategy. Additionally, the distinct family culture within the company has become the foundation of Hubbard in creating positive management atmosphere to achieve company's goals....
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