Harvard Business Review: Strategic Planning, How Competitive Forces Shape Strategy. Gross profit margin (GPM):it is also referred to operating profit margin. These factor includes the consideration of the following: The cost includes if the option proposed is cost effective or can be afforded easily by the company without effecting the overall profitability and other operations of the company. Hence, they should be taken into consideration when coming up with the Lion Nathan and the Chinese Beer Industry case solution. Day’s receivables: it is the measure of how long will it takes for an organization collecting bills owing to it. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. The second step of the solution is to come up with a business level strategy. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Lion Nathan and the Chinese Beer Industry operates in. SWOT analysis is a process that include four areas that are further divided into two dimensions i.e. The case solution first identifies the central issue to the Lion Nathan and the Chinese Beer Industry case study, and the relevant stakeholders affected by this issue. Consumer Enquiries Check your email to get Coupon Code. The cost of switching is comparatively low. $5.00 - $81.99. The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. strength, weakness, opportunities and threats. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix. It defines the characteristics and situations of an organization which makes it more effective and efficient when compare with its competitors. Lion is New Zealand’s largest alcohol beverage company. The value chain and competitive advantage. Free Management E-Books. If the participants in the industry have to incur high cost for switching suppliers or the firms are located adjacent to the suppliers manufacturing facilities. Bringing SWOT into Focus. It emphasizes more on external factors and ignore the specific factors that are more specially related with the firm. Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not. The timeline also helps in understanding the continuous challenges that are being faced by the organisation. The conciseness of the problem statement is the key, as it allows the reader to quickly understand the issue. In addition time required has to be mentioned. New customer registration. Lion Nathan today revealed details of a new marketing campaign to support the Natural Beer Promise initiative. Additionally, the attention can be paid to certain weakness and strengths through seeing the appropriate changes over the period of time. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Stars are those strategic business units with high market share and high market growth rate. In 1998, the Suzhou brewery came online, and the company rolled out the Rheineck brand throughout the Lower Yangtze Delta region. Because adopting or proposing an alternative that is difficult to implement or takes a lot of resources with no definite outcomes is vain. The process scan the financial statement to evaluate the relationship the disclosed items. SWOT analyses and SWOT strategy formulation for forest owner cooperations in Austria. Each resource is assessed whether it could be imitated by competition easily or not. This is shown through a proper implementation framework. The consideration of cost is important in the alternative generation in order to attain the maximum feasibility with overall business strategy and the budget allocated. In addition, the imitable factor also outlines the factors that are inimitable by the other organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. The customer are assumed to have strong buying power in case: Though the model from a strategic point of view is an important tool but there are certain limitation associated with the application of the porter five forces model. In these cases, recommendations need to be made for these people. It is considered as the best model as it does not reveal anything regarding the liquidity of an organization. In fact, the analysis of the environment needs to feed all planning aspects as well as it should be continuous. The particular decision criteria incorporates all the factors that the company aims to archives. Under the VRIO analysis, the following steps are carried out: The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. It is due to the fact that such analysis allow the organization to see, if the option will remain strong in future or not. Until& unless, the organization critically examine the attributing factors, the analysis’s findings does not seem to be of greater value or consideration. hence ins uh cases, the direct problem is no the ultimate organization factors but the process implementation that is needed to e in lace, in order to bring change , avoiding the upcoming risk and hence sustaining the competitive edge in the market (Spradlin, 2012). It is important to note, that the problem statement can cover tangible or intangible issue but it needs to have a clear relationship with the organization end goal. Also it likely reveals about the organization’s expense. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products. It is an unfavorable situation that exist in the environment making it difficult for the organization to achieve its defined goals. It referenced ABS statistics that showed beer volumes have declined 20 per cent in this time. It is effectively used in building strategies for the organization to maintain its competitiveness in the market. Lion - Dairy & Drinks … It’s time to team up with one of our experts. Since 2009 it is a wholly owned subsidiary of Kirin of Japan. These in-imitable factors allows the organization to developed the sustained competitive edge in the market and hence enhances the chances of sustainability ion the long-term. Theratios are sub-divided into the major groups that tend to cover the financial areas. By having a closer look over the matrices used for financial analysis, it is to say that the financial statements holds notable importance because it evaluates the management performance, plans and corporate strategy for future. Locked Bag 14, Royal Exchange Sydney, NSW 1225 . Also, it offers the benchmark to match the desired condition of the organization, hence putting the efforts of the team in the right direction. The sales implications for the selling and purchasing power, economies of scale and amount of market share. Moreover, it also determines the Imitable factors. Powerful buyers could flip the side of the powerful supplies by forcing the prices to move downwards and by demanding high quality and services by creating a competition between the participants in the industry on the basis of price and quantity. Liquidity: it is the ability of an organization satisfying immediate obligations, maintaining positive cash flows and it most likely based on the balance sheet of company depicting the financial condition of organization. Pearson education. Yet, it is important to note that, the good problem statement does not delineates the solution or the symptoms of the problem, but it clearly states the gap that lies within the organization. In Addition it is also needed to be considered, if the given option or the alternatives have the right alignment with the organization and re offering value. Lion noted that the Australian beer market has been in long-term decline for the past decade as Australian drinkers choose other beverages such as wine over beer. The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Lion Nathan and the Chinese Beer Industry Case Study Solution that the business unit should focus on costs. New Zealand Customer Portal . It identifies the issues or gap between the current and desired type of the organization, and thus requires to be stated in order for the management to look for change. The solution consists of recommended strategies to overcome this central issue. Our writers are all set to help you with Essay Homework. It is most common use with the objective of assessing the business model and financial health of company through revealing the remaining portion of money from revenues after deducting cost of goods sold. Consumer Enquiries AU: 1800 308 388. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used. Online and hassle-free. The firm’s primary and support activities are listed down. It is simple yet powerful tool that help the organization in identifying its existing resources, capabilities, deficiencies, the existing opportunities and threats prevailing in the market. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. Sign in or Create an account; Search. A rare resource is one that is not commonly used by competitors. The next step is of understanding the company; its people, their priorities and the overall culture. Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. The option has to be realistic and should have imperative results on the organization. Individual expenses or cost items are associating to gross sales revenue adjusted for all allowances and returns. In particular section, the management/teams develops different options through which the problem can be resolved. Academy of Management Journal, 25(3), 510-531. It is important to have more than one solution to the case study. Consumer Enquiries NZ: 0800 835 554. Lion Beer Australia We are the largest brewer in Australia, bringing together four large and four small breweries across the country – from the iconic XXXX Brewery in Queensland and Boag’s Brewery in Tasmania to craft breweries such as Malt Shovel Brewery in Sydney and Little Creatures in Fremantle and Geelong. One of the unavoidable advantage of this model is thatit has begun establishing benchmarks – across companies and over the period of time which can be used for flagging the potential issues areas where more than one ratios are reflecting the key problem or issue. Question Marks are those strategic business units with high market share and low market growth rate. This is known as market development strategy. The underlying objective of the financial analysis is organizing the financial statement as well as other accounting data of an organization enabling the comparisons with other companies, also enabling to accurately evaluate raw data. Relative movements in price: targeting for the purpose of creating the shareholder value depends on the relative performance of price. Though in many cases, it is difficult to analyze the feasibility of the options especially the intangible factor, however, quantifying the maximum option is important, in order to develop a clear image and understanding of option that will address the problem. European Journal of Forest Research, 126(3), 413-420. Lion Nathan and the Chinese Beer Industry should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis. Lion Nathan's beer brands include XXXX, Tooheys and James Boags. Which areas are in need of immense attention? Management Decision, 50(8), 1396-1411. Lion is a beverage and food company that operates in Australia and New Zealand and produces and markets a range of beer, wine, cider, RTDs, spirits, plain and flavoured milks, yogurts, cheese, juice and soy products.Lion was formed in October 2009 under the name ‘Lion Nathan National Foods’, when Kirin Holdings Company Limited purchased brewer Lion Nathan and merged the business with National … Production was concentrated at the original Hindley Street brewery until 1980, when operations moved to the current site on Port Road at Thebarton. Lastly, Organization factor includes the resources and functions that are offering certain value to the company. Lastly, while developing the options/alternatives, it is important to consider the nonrealistic factors that may make the alternatives complicated, leading to poor implementation, time consumption and other related issues. The Lion Nathan and the Chinese Beer Industry case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. : A review of academic research from the last decade. 27 Napier Street, Freemans Bay, Auckland, 1011 . (2013). An organization should consider the influence of the national and international laws where the organization would originate the business operations. Therefore choosing clients often become crucial for the organizations as to avoid the situation of being highly depended on the buyers. Lion Nathan and the Chinese Beer Industry should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL. The macro environment includes legal and political factors, it etc might defeating prime... 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