Introduction

Business Strategy Analysis

Introduction

Business strategy is very crucial for better performance of an organization. Such strategies can be based on customer evaluation, financial growth, etc. Further, strategic planning is also helpful in determining the true potential of an organization’s performance. In relation to this, it must be noted that the senior managers are obligated to frame such strategies that can result in overall benefit (MacDonald & Redrup 2021). There are five major Ps of business strategy, i.e., pattern, plan, perspective, ploy and position. Moreover, other factors that influence the strategic choice of an organization are primarily the business environment that comprises of Pestel analysis and five force model of Porter. Blackmores Limited has been selected for this study so that it its business strategies can be recognized.

Value Chain Analysis

This strategy is crucial for Blackmore’s Limited as it is a procedure wherein a business firm can recognize its support and primary affairs. These can add value to the final product, thereby assisting in cost reduction and differentiation. This model comprises of primary affairs like marketing, operations, sales, etc. Moreover, the support segment of this model comprises of film infrastructure, management of human resources, etc. Overall, value chain analysis is relevant for establishing the cost advantage. It has also assisted Blackmore’s to recruit professional and experienced employees. The effective application of the Value Chain analysis of Blackmore’s can enhance the material, as well as product flow due to the enhances demand followed by the forecasting of the sales. The inventory management even enhance a Blackmore’s can limit the delay through the activities of tracing throughout the supply chain. Modern customers place due emphasis to the quick response and convenient access to the vital information that is product related. The blockage in the flow of information can impact the relationship of customer and supplier. Hence, the value chain analysis can help and remove the information flow bottleneck.

Senior manager’s quality

Top executives of Blackmores are continuously dedicated for enhanced improvement and they do not settle for good. Further, the senior managers indulge themselves in holding them liable for learning, improving, and growing. They also appreciate this type of behaviour of their team members. In contrast to this, the senior managers are also involved in making decisions with limited number of information and resources. Furthermore, the top quality of senior managers is that they are risk lovers and make errors unhesitatingly.

Capabilities of Blackmores Limited

The business strategies of Blackmores comprise of ability to attempt with the resources. In other words, the company can alter its commitments to yields. For instance, a marketing ability of the company can be created on the business firm amongst its resources and information that is reliant and inhabitant in a specific limit.

PESTEL Analysis (Macro)

In Australia, people are very focused on their safety and health aspects and hence, it is crucial for Blackmores to supply and distribute their goods whenever needed. This is one of the most important social factors that must be accounted by the company. In relation to political factors, one segment is to alter to the liberal government, i.e., lesser taxes and business deregulation (Singh-Ruru, 2019). This means that in the future, there will be massive changes in the political environment. Besides, potential alteration can also create disapproving factors in the global market with massive involvement of the Australian government.

In relation to legal factors, the pharmaceutical market has several legislative and authoritative controls. The updation of internet is also enhancing with patient’s demanding for additional rights in the social safeguard measures. In terms of technological factors, Blackmores must enhance its technical department because online trend has been increasing with due course of time and hence, online customer experience must be granted by the company.

When it comes to environmental factors, pharma companies are bound to observe their marketing plans contrast with the environmental issues. However, there remains an opportunity to admix the same in their Corporate Social Responsibility Programs. Lastly, in relation to economic factors, the depreciation of Australian Dollar is more concerning as it has made it cheaper for consumers from all over the globe to buy any product (Singh-Ruru, 2019). Hence, the prices must be built in a way that Blackmores can easily compensate the figure. Moreover, a lesser price can make its products more competitive in the market, thereby assisting in attainment of competitive advantage on a whole.

Micro Analysis

In terms of media, Blackmores can undertake marketing by adhering to social media tactics that is a powerful tool in the current scenario for reaching a wide range of consumers. Further, consumers are also one of the most significant revenue sources in the business and Blackmores must make strategies to attract or retain them (Chuchrova, Vilamova, & Kozel 2016). In other words, winning their satisfaction and loyalty must be the primary goal of the company. This can assist in strengthening of relationship betwixt the company and its consumers.

In relation to competitors, the competition is very intense in the pharma industry and currently, people are more focused on their safety and health. Therefore, it is the responsibility of the company to transform its name to the name of a renowned pharma brand so that people are attracted and rivals are pushed back. Blackmores must also retain professional employees so that it can enhance the production of its manufacturing segment and thereby maximize its overall state of affairs.

In relation to suppliers, providers of companies like Blackmores are involved in offering wide variety of resources. The main work of a business is that the managers must undertake the duty of searching a potential supplier who can provide the best admixture of credit, quality, low cost, warranties, and delivery effective services. Lastly, when it comes to shareholders who are considered to be the owners of an organization, must also feel confident of the investment they are about to make in a company (Chuchrova, Vilamova, & Kozel 2016). Hence, Blackmores must ensure that it develops a market wherein it can attain the maximum goodwill in terms of every aspect so that the shareholders can trust the efficiency of its working and thereafter, start investing their funds into it.

Hence, Blackmores Limited being a manufacturer of health products must follow the strategic analysis of a business to recognize the business environment in a better way that includes technical issues, political issues, legal issues, social issues, and economic issues on a whole.

Conclusion

In each of the above-mentioned strategic analysis of Blackmores, it can be seen that the company has been doing well in every aspect. Further, in terms of business strategies, the organization has clearer business points and all its objectives are time related in nature. Moreover, it focuses on establishing an upper hand through its segments for development and clients. The company also guarantees that the general working population for the market have satisfactory probabilities to develop. Additionally, the company also meets all the holes in the ability of the employees to convey its strategies through building and preparing present individuals. Lastly, the company has been performing quite well in the market as it is capable of holding its aptitudes and thereafter, offer appealing and attracting chances to new faces that has allowed it to flourish with due course of time. Overall, the business strategies of Blackmores have been appropriate in nature.

References

Chuchrova, K., Vilamova, S., & Kozel, R. (2016). Strategic analysis as a tool for strategic decision-making processes at industrial companies. Actual Problems in Economics, (176), 180-191. Retrieved from https://www.proquest.com/scholarly-journals/strategic-analysis-as-tool-decision-making/docview/1781637342/se-2?accountid=30552

MacDonald, A and Redrup, Y. (2021). Blackmores tests defence strategy, as M&A lights up ASX. Retrieved from: https://www.afr.com/street-talk/blackmores-tests-defence-strategy-as-m-and-a-lights-up-asx-20210713-p5897p

Singh-Ruru, S. (2019). Market Analysis of Blackmores. Retrieved from: https://cookmyproject.com/blog/market-analysis-of-blackmores/