STRATEGIC ANALYSIS
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Introduction
Marston’s PLC is a British company that has been brewing beer, managing pubs, and providing restaurant services for more than one hundred and eighty years. The goods and services offered extend to both major and minor regions in Britain. Marston’s PLC was first founded when three operational breweries merged, resulting to Wolverhampton and Dudley Breweries. The original companies that merged were the Park, Victoria, and Fox Breweries. In the year 1947, Marston’s PLC venture into the London Stock exchange market to enable the public to acquire the company’s shares. As the years progressed, so did the success and expansion of the company. In 1992, the company purchased the Camerons Brewery, creating a greater market share control (Marstons.co.uk, 2015). The growth and development of the company continued as it grew popular as the years progressed. The invention of the Fastcasktm system 2009 enabled easier sell of casks ales by the chain of pubs own by the company. This also made the pubs to be able to sell a variety of ales to the different customers. Marston’s success can be attributed to the various business strategies that it has used over the years. The flexibility to employ different management strategies has enabled a smooth and solid expansion of the company. This paper will seek to show the various strategic and management tools that have led to the success of the Marston’s PLC. This paper will also analyze each strategic and management tool about the company's performance. It will also identify the possible recommendations for the company’s extended survival in the competitive market (Marstons.co.uk, 2015).
PESTLE Analysis
The PESTLE Analysis mainly focuses on Marston's ability to operate under the political, economic, social, technological, legal, and environmental managerial framework. The achievement of the organization can be credited to the application of this marketing tool (Academy, 2015). The political framework of the Marston's PLC involves the incorporation of the various steps in a bid to conform to the political structure of the country. The several government policies on alcohol and food consumption have pushed the company to follow the required duties. The British government has passed several laws to control the consumption and sale of alcohol and alcoholic products. It has also imposed a tax on the sell on food and safety of the food sold to the people. The Marston’s has to provide relevant documentation about its auditing after each fiscal year.
The economic aspect of the PESTLE Analysis entails how the various economy determinants of the country affect the operation of the Marston’s PLC. The fluctuations of the inflation rate compel the company to adjust to the relevant strategies to operate at optimum capacity. These strategic and managerial adjustments usually seek to push the company to meet its objectives and attain profits in any economic situation. The operations of the company must be in line with the consumers’ ability to purchase the various products and must accommodate the flexibility of the forces of demand and supply. Marston's PLC utilizes the PESTLE Analysis to control the social factors that revolve around its operations. The business is at the forefront of supporting drink awareness initiatives. It has provided financial support to various organizations that educate the public on the bad effects of excessive consumption of alcohol (Alcoholresearchuk.org, 2015). It has also controlled its advertising and marketing strategies that seek to provide responsible alcohol consumption. In 2013, the company reduced the alcohol content in some of the main products to show how it agrees with the provisions of the Government’s Public Health Responsibility Deal to lower the alcohol content in alcoholic drinks. The provision of healthful and safe food to the people has helped in maintaining consumer loyalty (BBC News, 2015).
The application of advanced technology in both production and distribution of the products has enabled Marston’s PLC to expand its market structure. The utilization of the internet and website in marketing is a good marketing strategy. The company has an online payroll system that manages easy payment of its staff members. Every successful company must base its operation on achieving its goals without harming the environment (Ias.org.uk, 2015). The environmental friendly activity of Marston’s PLC is the utilization of environmental friendly by-products in their entire production cycle (PESTLE Analysis, 2015). The company is in the forefront in the provision of green technology that is not only user-friendly but also environmental friendly. The Marston's PLC has limited its energy consumption levels, and it has combined various limitations on the high energy usage (Ukela.org, 2015). The legal requirements affect both the internal and external environments of Marston’s PLC. The company has to conform to the various consumer and health laws. It must also follow the labor laws that the government has set to protect the workers. The staff is well trained to serve the different customers (Gov.uk, 2015).
SWOT Analysis
The success of the Marston’s PLC can be attributed to the utilization of the SWOT Analysis. Every successful company identifies its strengths, weaknesses, opportunities, and threats in the business world. The strengths of the company can be seen through its rapid expansion growth. The Marston’s PLC has many outlets all over the country. The production of various products has helped the company to have a wide variety of customers and sources of income. The introduction of various technology systems in its operations has enabled it to survive in a competitive market. The Marston’s PLC has improved its operations by cutting off its competitors (Ctb.ku.edu, 2015). This has been made possible by the way the company has been buying and owning other breweries and restaurants in the different regions of the country.
The Marston’s PLC has also teamed up with other organizations within and outside its industry. This has helped in creating more profitable opportunities for the company. A strong management system has enabled the company to have successful strategic and managerial tools in its operations. The ability of the company to produce beer brands of high quality has enabled it to have a large local market. The company has a large pool of shareholders that finances its operations and prevents it from falling into debts. The Marston’s PLC has a wide reliable distribution channel that helps in the control of the forces of demand and supply. The main weakness of the Marston’s company is the ability to change with the various laws imposed by the government regarding the alcoholic products. This is because some of the laws and policies are harsh to the company. The strength of the firm can be connected to the good relationship between the company and its employees. This provides good communication between the employer and the employees, creating good work conditions and increase work output (Lexisnexis.com, 2015).
The opportunity aspect of the SWOT analysis can be seen when the company seeks to expand its market share. The introduction of better company team-up opportunities has given the Marston’s PLC a chance to have good business relationships with other companies. This creates better opportunities for the company to achieve its goals and objectives. The utilization of corporate securitization has provided better business opportunities for the Marston’s PLC. The threats that the company faces are the different types of competitors in the market. The Marston’s PLC biggest competitors are Heineken, Punch Taverns PLC, and Greene King PLC. There is also a threat of the emergence of new competitors in the market.
Porter’s 5 Forces
The Porter's five forces provide a company with the external perspective of the entire market structure revolving around it. The five forces are the competitive rivalry, bargaining power of suppliers, bargaining power of customers, the threat of brand-new entrants, and the threat of substitute products or services. The competitive rivalry force directly affects the Marston’s PLC. The stiff competition forces the company to apply various advertisement methods to attract more customers and retain the available customers. The Marston’s PLC has utilized various product differentiation strategies. This has helped it to achieve a competitive edge over its competitors. The production of wide range of products has enabled the company to have a wider market share compared to its competitors (Competition, 2015).
The bargaining power of suppliers controls the degree at which prices are set. The various distribution channels dictate the prices since each additional distribution channel always demands a certain amount of money. The final cost of the product is transferred to the final consumer. The bargaining power of customers allows the Marston's PLC to set prices that do not negatively affect the flow of sale of the products. The prices should be reasonable and at the same time not extremely higher than the competitors quoted prices.
It is very important for the Marston’s PLC to consider the threats of new entrants and competitors. The new entrants always come up with lower prices for their products to be able to break the entry barrier. This negatively affects the Marston’s market structure. Marston's PLC has made it a difficult entry of new companies into the market (Competition, 2015). This is due to the establishment of a strong market structure by the Marston's company. The well-organized brands and customer loyalty has also made it difficult for new entrants. The Marston's PLC is enjoying the advantages of economies of scale. Smaller organizations find it difficult to break the barrier to the market that has been established by the Marston's PLC. The bigger issue that the Marston’s company is facing is the threat of substitute products. This strategic analysis must be considered in the entire production process. The threat of substitute products makes the customers loyal to shift to the competitors’ products. Better strategic and managerial tools must be employed by the Marston’s PLC to deal with this issue.
Effects of the Reduction on the Drink and Drive Alcohol Limit
Different policies on the drink and drive alcohol limit can have either positive or negative effects on the Marston’s PLC. A reduction in the drink and drive alcohol limit would have adverse negative effects. The various strategic management tools and techniques can also be affected by the reduction on the drink and drive alcohol limit. The PESTLE strategic management made tool can be affected by this issue. The political, social, and legal factors must be attained by the Marston's PLC about the reduction on the drink and drive alcohol limit. The company must comply with the legal requirements as well try to manage its operations to meet its goals. The company must shift its production and marketing strategies to accommodate the reduction in the business opportunity.
Analysis of the Suitability of the Strategies
Both the SWOT analysis and the PESTLE strategy provide good strategic tools and techniques for the success of the Marston's PLC. The strategic tools and techniques cover the critical issues that aid in the company's attainment of the set goals and objectives. They provide clear and applicable guidelines that are necessary for the successful growth of the company. The SWOT analysis provides the company with the required information regarding its current production and marketing conditions. It also seeks to show the limitation and the challenges that the company faces. The SWOT analysis also provides solutions to the identified problems. The PESTLE analysis ensures that the Marston's PLC operates within the required conditions to attain the set objectives.
Conclusion
The strategic analysis on the Marston’s PLC shows how crucial the strategic tools and techniques are in determining the performance of the company. The company can not only be successful in the market industry but also perform well with the legal range. Companies must not be focused on making profits alone, but also seek to protect both the consumers and the environment. Every successful company has a cleared and well defined strategic tools and techniques. Most strategic tools and techniques are similar, but the best ones are usually customized to fit the organizational needs and wants (Marstons.co.uk, 2015).
Bibliography
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