Strategic Mgmt report for Breadtalk

Topics: Strategic management, SWOT analysis, Brand Pages: 5 (1449 words) Published: January 20, 2014
1.0 Introduction
Founded in July 2000, Breadtalk Ltd started off as a bakery that is based in Singapore and was listed in the Singapore Stock Exchange three years later in 2003. Breadtalk Ltd aims to endeavor for modernism and creating idiosyncratic flavors to the civic and a dream of being a global brand name. With these goals at hand, Breadtalk Ltd began to initiate a new food tradition that allows it to have a unique aggressive advantage, which has led to the growth of the bakery business, to food atrium and restaurant outlets. To date, they have more than 300 bakery outlets across 13 countries and territories, which include franchises and 25 retail bakery outlets in Singapore. In addition, it also has 33 food courts and 8 restaurants which are supported by over 5000 staff worldwide (Bamburg, 2006) 2.0 SWOT ANALYSIS

The Swot analysis refers to strength, weaknesses, opportunities and threats, and will determine the challenges in the external environment which the firm has less control and strengths that need to address by the company. 2.1 Strengths

Breadtalk is able to have some internal strengths in which are beneficial to the company that includes: Strong “Breadtalk.” brand name, ability to obtain economies of scale, strong human resource, strong R&D team to add innovation to product offerings and strong franchise relationships. 2.2 Weaknesses

Breadtalk faces some minor weaknesses like, over-reliance on the bakery sector, over-reliance on the Singapore region; their product offerings are easily imitated, there is limited control of flour since it is obtained from third party sources (Coyle, 2012). In addition, the franchise division requires high cost involvement, and a constant need for the renewal of the franchise license to be franchising other brands. This is not a long term solution in terms of company expansion. 2.3 Opportunities

Breadtalk Ltd oppose its main weaknesses by expanding and merge its market in china, Asian and other Vietnam countries with its low-priced high volume breads and affordability. 2.4 Threats
Existing bread related firms and bakery shops will affect the revenue of Breadtalk. 3.0 PESTEL ANALYSIS
Pestel analysis is an important tool to help Breadtalk Ltd to assist monitor and detect all weak signals to recognize the fractures to shape the environment or discontinuities. 3.1 Political /Legal factors

Political factor constitutes all legal fundamentals like taxation, legislation, deregulation philosophies and labor training (Anthony, 2008). Increasing trade barriers has created an opportunity and challenge to Breadtalk as it can penetrate the market by emerging companies in political stable countries to explore the new market especially where bread could be luxury, and at the same time Breadtalk will have to challenge all types of sources to source for low cost high quality from world over. 3.2 Economic factors

The growth of a financial structure will accrue advantage to industries, but its cause will differ according to which factors that are affected the most. (Anthony, 2008). Price fluctuations of commodity and raw material and rise in world fuel prices cause the rise of purchasing costs for Breadtalk and the extra cost has to pass over the consumers by increasing the price of their products. 3.3 Social factors

Social factors include traditions, lifestyles, values, beliefs, tastes, attitudes and workforce diversity and will greatly influence the consumer spending patterns within the environment or a country. Breadtalk penetrates into the markets of other Asian continent countries, societal factors come into consideration. Indian and Chinese customers have different culture in lifestyle, and have different opinions and needs on the current products offered. 3.4 Technological factors

Technological factors include product innovation, technologies in communication and application of knowledge. The rapid change in technology has allowed new entrants to enter the...

References: Anthony, H. (2008). Breaking bread at home and abroad: It’s not just a talk. Retrieved on April 21, 2010
Bamburg, J. (2006). Growing business without selling out. Carlifornia: Berrett koehler.
Cassiman, B & Colombo, M. (2004). The innovation impact of Breadtalk. Northampton: Edward Elgar Publishers
Coyle, B. (2012). Breadtalk: key business concepts: A concise guide: Singapore Catalogue guide
Halibozek, G. (2005). Business strategy management. New York: American management association
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