Thorntons Strategic Analysis

Topics: Chocolate, Middle East, Types of chocolate Pages: 14 (4170 words) Published: August 1, 2010
Thorntons is the largest, independent chocolate and confectionery company in the United Kingdom, founded by Joseph William Thornton, in Sheffield. It is a public company with both retail and manufacturing business. The company grew up from a cabin shop in 1911 over the years. His intention was to offer the best sweet shop in the town and later on after hundred years now it is the best and largest chocolate company in U.K. Today , the company is based in Derbyshire ,with 4000employers and 378 of its own shops and cafes with a further 222 franchises and making a turnover of £208 million[from peter thornton: My life in a family business; Chap #1]. Thorntons is vertically integrated company and believe in Product Differentiation. The basic activity of the comapny is manufacturing, retailing and distribution of quality confectionery products and other sweet foods. Branded products of Thorntons are Continental, Diabetics, Thornton's Special Toffee, Eden by Thornton, Thornton Classics, Origins and Dessert Gallery . Vast range of products include Celebration Cake and Bakery, Chilled Desserts, Ice Cream, Luxury Biscuits, Christmas puddings and Toffee Cream Liqueur. Also they do party favours, corporate gifts, seasonal cards, gift ideas and flower arrangements. Macro Environmental factors and Competitive Strategies Adopted By Thorntons

To analyse the macro-environment of Thorntons, we have to consider the macroeconomic factors which affect a business in different ways along with the improved industry structure to over come the issues and to meet the competencies of market in order to fulfil requirements of staying as the largest confectioner U.K. Political

Infltion and Tax Rates
Tax rates are increased over the year which really affect business . Company also paid a one-off deffered Tax charge of 2 million GBP or25.1 % of PBT as it is applicable by abiding the finance act 2008 The inflation in GBP has great impact on the organisational profits.

Health Issues Raised by Govt.
Thorntons is concern also with the growing Govt and consumer concerns over the increased levels of obesity and diabetics.It is must for thornton’s to alter brand image by developing new healthier products satisfying the issues raised by government . For this Thorntons has always been considering health issues of their customers and they have offered a number of products like dairy-free chocolates and chocolates for the diabetics as well. The company states in its annual report of 2009 “Thornton Park are regularly independently audited against exacting requirements of the British Retail Consortium’s Global Standard for food Safety and recently retained its highest Grade A status”


The whole world is suffering from the economic downturn and recession but thorntons generated a healthy revenue out of their business due to some strategies adopted earlier.

Cost Control Methods

Different cost control measures and focused management of balance sheets were adopted to survive in such a difficult environment. Number of techniques used to clear the stock during Pre-Christmas trading period to reduce the annual debt.

Investment in Future

Thorntons continued to invest in production, research and product range in order to secure the future. They also made substantial investments in their EPOS (Electronic point of sale) system and in manufacturing. Since the year end, the Company has agreed new committed bank facilities for three years. So the is on its way to make profitable business out of this environment.

Christmas,Easter Sales and Promotional Sales
The Company offers attractive sales on events to their customers and different promotional sales throughout the year.

Introducing New Flavours
Also company launched Different products ”Choc Block” and a range of chocolate boxes to refresh the Christmas and spring season ranges by introducing new ice cream flavours, which attracted the customers....
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