Strategic Planning for Bakery Industry

Topics: Strategic management, Economics, Marketing Pages: 8 (2589 words) Published: December 6, 2010
Using some models of business environmental scanning, identify the environmental factors that affect Délys Ltd’s operations.

Environmental factors affecting Delys Ltd’s operation can be mentioned according to STEEPLE as one of the model for business environmental scanning. It is described as a seven factor. 1. Social factor:

Just reviewing the demography of United Kingdom according to census 2008, population is around 61.4 million. There is unsustainable population growth in this country since 2007 AD. Many immigrants from Asia especially south Asia came here and get reside. So to cover up those consumers, this company should have variety range of sweetness in their product ranging from younger to old. Considering the religion, U.K is diversified country inhabited with Christians, Hindu, Muslims and other minorities. So as seeing diversified population distribution, this company should focus on the mentioned ethnicity. Usually, Hindu and Muslims are fond of sweets including some spiciness in that product. Since this country is now mainly inhabited by Indians and other Asians.Considering income distribution, most of the people are out of job or working in very low wages. So, company should manufacture sweet as a basic. 2. Technological factor:

It should have new communication channels as link up with some advertising channels so as to promote its product. This may lead to uplift their business not nationally but also in international market. Some sugar reducing technology should be adapted to decrease the threats of some healthy disease like diabetes and obesity. It can be done by use of sucrose based sugar instead of glucose based sugar. There should be more efficient infrastructure including transportation either by air or by road. Although the manufacturing technique may be traditional but the distribution channel must be strong enough. 3. Economical factor:

Company seems to have good turn over. Similarly, net profit on sales ratio is also very healthy. So, it’s better to take attract other company to get merge. This will provide strong support to run company in international market. Since, the exchange rate of pound is not so strong, most of the investor from abroad would like to invest on this company seeing its progress. This gives good outcome in near future. 4. Environmental factor:

It is one of the most prior factors to be considered. Due to excessive violation of environment, global warming is increasing day by day. So to get away from any kind of environment offend, this company should use technology to reduce carbon emission. Quality control and management should be maintained with help of some experts. 5. Political factor:

Election is on hand. Although this country has stable political background. So, there is no necessary to be panic. The economy will inescapably be the primary battle ground for any political party. But certain awareness should be considered such as increase in tax or national insurance. This increases costs for employers and employees. 6. Legal factor:

In order to be perfect company, it should have certain standardization such as ISO based on food safety and management systems. International trade is a major source of economic revenue for any company. So, this company should build trade relation either in collaboration or as franchise. 7. Ethical factor:

The company has its own speciality and reputation. Although there are economists who claims ethics is irrelevant to the field of business. And CEOs have only one duty: to maximize the profit of a company. But to maximize the profit means not to degrade the quality, this is ethics.

Analyse the needs and expectations of all Délys Ltd’s stakeholders and how you will balance those conflicting needs. Stakeholders may be person, group or organisation that has direct or indirect link with an organisation. It can affect or be affected by organisation’s actions, objectives and policies. Stakeholders may be customers, shareholders...
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