Soya Bean Food Products: MNGT1001

Soya Bean Food Products: MNGT1001

1.0 Description of company

Mr Bean Group Limited is a Singapore based retailer company. This company is a part food and beverage retailer industry and mainly known for producing soya bean-based drinks and food products. The company is situated in more than 65 locations across the globe and they majorly deal in South-east Asian countries. Mr Bean was founded in 1995 and currently the company is managed by the Super Bean International. The company was founded by Kang Puay Seng and Loh Jwee Poh and today it is one of the leading manufacturer and retailer of soya bean beverages and food retailers across the Singapore. Company is now planning to expand its operations in the international market and for the same reason, they have asked their management team to analyse the organizational pestle analysis and the competitive analysis in order to determine the strengths and the capabilities in relevance with the external business environmental conditions.

The report will include the competitive analysis, pestle analysis and the impact of those factors over the performance of the organization. With the help of analysis, organization could easily determine the requirement of the strategies through which the performance could be increased along with the expansion related objectives would be attained (Mr Bean, 2018).

2.0 PESTLE analysis

This is the tool through which organization could be able to analyse the external environmental condition of the industry. This technique consists of various factors such as political, economic, social, technology, legal and environmental. Analysis would be made in relation with the factors which could affect the functionalities of the organization (Chung & Parker, 2010).

2.1 Explanation of PESTLE analysis

Political: National political frameworks and rules and regulations developed by government authorities are the major factors which affect the functionalities of the organizations. Mr Bean Group Limited is engaged in providing soya bean beverages and food products, thus, political barriers will not affect their functionalities. In order to increase the efficiency, organization is required to consider all the regulations and the frameworks described by the government in relevance with smooth functioning of the organization (Baakile, 2011).

Economic: People are becoming more aware about the health conditions and with the effect from this, diamond for the soya products are increasing in the international market. Thus, Mr Bean has great opportunities to set up their place in the emerging markets with its soya products and beverages (Massoud, Fayad, El-Fadel & Kamleh, 2010).

Social: Consumers’ demand and the requirements are changing constantly and with the introduction of soya based products and beverages, organization could increase its effectiveness along with the fulfilling the demands of the consumers. It is crucial for Mr Beans to produce soya products as per the taste of customers along with the business functionalities to remain successful in the global markets (Tamang & Kailasapathy, 2010).

Technology: Technology is changing rapidly and organizations are required to adopt those changes in their functionalities with the motive to increase the efficiency of the organization. Demand for soya products are increasing and with the increase in the demand, production should also be increased and this could easily be done with the help of technological improvements in order to bring the technological up gradation in the workplace (Damron & Damron, 2013).

Legal: Soya products produced by Mr Beans should be done on the basis of consumer’s requirements as well as on the basis of laws and regulations. Non-fulfilment of the laws may generate issues for the organization and it may also lead to shut down of the business. Thus, all the laws in relation with the production of the soya products need to be considered for conducting the smooth functionalities (Ho, 2014).

Environmental: Mr Beans is following the rule of art of sharing and giving. With this rule, organization is required to precede its functionalities through considering all the environmental aspects. Along with this, it is required to adopt certain steps by the organization through which environment do not get affected. Company believes production through recycling, adopting the strategies for saving the energy and water resources and with the help of eliminating the waste from the production process (Morden, 2016).

2.2 Impact of PESTLE factors on company

Political: Non-fulfilment of the political policies and the framework will affect the functionalities of organization and this will affect the effectiveness and efficiency of the organization. Mr Beans is engaged in the food and beverage industry and it is required for them to adopt certain strategies through which quality standards and the ethical practices must be followed in relevance with producing the appropriate qualitative soya based products and beverages (Peppard & Ward, 2016).

Economic: With the increase in the demand for soya products and drinks, Mr Beans needs to fulfil those needs in an appropriate manner through maintaining the same level of quality. Along with this, all the nutritious ingredients should be used in order to satisfy the consumer’s needs. Price of the product should also be set on the basis of effective pricing strategy which could increase the effectiveness of the organization (Srdjevic, Bajcetic & Srdjevic, 2012).

Social: Social factors such as consumer’s demand, their taste, preferences and other attributes have huge impact over the organizational performance. Ignorance of these factors may lead to decrease in the demand of the products and beverages (Zalengera, Blanchard, Eames, Juma, Chitawo & Gondwe, 2014).

Technological: Amendments in the technology should be adopted on the basis of environmental conditions. This helps the organization to increase its productivity and the level of customer satisfaction could also be increased. Non-adaptation of the technological factors may affect the efficiency of the organization (Kolios & Read, 2013).

Legal: Legal factors such as policies, laws, regulations and the frameworks developed by the legal authorities may affect the organizational performance. Thus, it is required to perform the functionalities on the basis of rules and regulations in order to attain the desired goals and the objectives (Chen, Chiang & Storey, 2012).

Environment: Environmental conditions are being affected rapidly and this is the primary reason, people are concentrating towards saving the environment. Thus, it is required for the organizations to initiate certain projects through which environmental conditions could be improved and with the help of these projects, organization will be able to develop a positive image in the consumer’s mind-sets (Quer, Claver & Rienda, 2012).

3.0 Porter’s five forces

This technique is being used for analysing the competitor for the company in the target market and determination of the competitor’s strategies are also analysed from this technique. Apart from this, this technique helps the organization to develop and adopt certain advanced strategies through which organization could be able to uplift the performance along with gaining the adequate competitive advantage (Martin & Swank, 2012).

3.1 Porter’s five forces

Threat of new entrants: Mr Beans is a food and beverage retailer brand based in Singapore. They are known for producing soya beans products and drinks in order to provide healthier drinks and food items to its target audience. Organization has set up an effective goodwill in the market and in these scenarios; entries of new companies in the same industry will affect the business functionalities of the existing organizations along with the functionalities of Mr Beans (Dobbs, 2014). 

Threat of Substitutes: This factor does not have huge impact over the performance of Mr Beans because they deal in health conscious products while its substitutes will be cold drinks, fast food items, etc. which are totally unhealthy. Apart from this, Mr Beans concentrates over the demands of the consumers and then delivers them the products on the basis of their requirements. Organization needs to maintain the quality of its products along with the taste in order to gain the advantage in the market otherwise, substitutes of soya bean products and beverages will overtake the current position of the organization (Yunna & Yisheng, 2014).

Bargaining power of suppliers: Suppliers to this industry are limited and in order to maintain the same position in the target market and to expand the business, it is required to adopt certain strategies through which effective relationship could be developed amongst the suppliers. Apart from this, suppliers plays crucial role in the success and failure of an organization in the business market. Regular switching the suppliers may affect the quality of the products and services delivered by the company; thus, it is required to deliver the appropriate quality and quantity of the products in order to retain the consumers and to attain appropriate goals and the objectives (Dobbs, 2014)

Bargaining power of customers: Customers does not have huge choices in terms of soya bean products and beverages in the Singapore. Thus, this factor’s impact over the organization is quite weak and in order to enhance the performance of the organization and to retain its consumers, it is required for the organization to uplift the quality of its products in relevance with the developing and maintaining an effective image of the organization in the competitive business environment (Dälken, 2014).

Industry Rivalry: When huge number of companies is available in the market, rivalry is intense. In order to gain the competitive advantage, organizations are required to adopt the innovative and effective strategies in relevance with fulfilment of the target audience’s demands along with developing a unqiue position in the target market (Perdana, Roshetko & Kurniawan, 2012).

3.2 Impact of porter’s forces over organization

Impact of these forces may affect the organizational performance and it may lead to decrease in the efficiency of the organization. Following are certain elements which could affect the performance of the organization:

Threat of new entrants: New organizations in the food and beverage industry may provide better quality and wide range of products which could attract the target audience. With the effect of this, existing organization’s functionalities and performance may get affected. Thus, it has been recommended to the existing organizations to adopt dynamic strategies which could help the existing companies to maintain their effective image in the competitive business environment along with gaining the competitive advantage in the target market (Vanthoor-Koopmans, Wijffels, Barbosa & Eppink, 2013).

Threat of Substitutes: Substitutes will not be able to create much impact over the demand of the soya bean products and beverages. Apart from this, introduction of other healthy drinks may generate negative impact over the soya bean products. It has been reviewed that consumer’s taste, preferences and demands are changing constantly as per the dynamic business requirements. Thus, it has been recommended to the Mr Beans that they needs to adopt innovative and advanced strategies through which the demand for soya bean products could be remained constant.

Bargaining power of suppliers: Suppliers plays vital role in the success and failure of the organization and in order to increase the efficiency of the organization, relationship amongst the suppliers should be developed in order to gain the positive results from the organization. In order to get the materials from the suppliers at affordable prices, positive relations should be developed amongst them (Jiang, Cai & Xu, 2013).

Bargaining power of consumers: Bargaining power consumers may affect the business performance when the organization will fail to adopt the strategies on the basis of business requirements. Along with this, it is essential for the organization in order to uplift their performance and the efficiency in the target market. Management of the organization is required to adopt the techniques in relevance with the business environments and target audience’s demand.

Industry Rivalry: Impact of industry rivalry on the Mr Beans’ performance will be huge. New comers and the existing organizations will adopt unique strategies for increasing the effectiveness and the efficiency in terms to attain their desired goals and the objectives. While, it is also necessary for the Mr Beans to adopt the same in order to maintain their effective image as well as to uplift their performance through which the expansion and growth related objectives could be enhanced.

4.0 Strategic Recommendations

4.1 Expansion

It has been recommended to the company to adopt certain innovative and dynamic strategies and tools through which the desired goals could be attained easily. Apart from this, it is also crucial in order to uplift the organizational performance in the target market along with expansion related objectives in the overseas as well as in the domestic market could be done easily. 

4.2 Merger and Acquisition

In order to enhance the organizational performance in the international and in the domestic markets, it has been recommended to the company to adopt the strategies of partnership and making a joint venture type of firm with the highly reputed and well-known brands. This will help the company to develop a positive goodwill in the target market. Apart from this, organization could also utilise the merger and acquisition strategy in order to set up an effective image in the target market. Merging with a reputed brand or acquiring a domestic brand in the target market will help the management to understand the market environment. This strategy will help them to attain the goals and the objectives in relation with the expectations of the management. Joint venture is another form of effective business and with the help of this, two companies can simultaneously work upon the desired project for accomplishment of targets.

4.3 Modifications in organizational structure

For increasing the organizational effectiveness along with increasing the efficiency of the organization, it has been recommended to the organization to amend or to improve the organizational structure in order to improve the functionality of the organization. Apart from this, innovative marketing activities and the strategies could also be utilised in order to spread the awareness amongst the target audience in relevance with the organizational products and services.

4.4 Introduction of new product or service

Along with the above strategies, Mr Bean could introduce certain improvised and innovative soya based food items and the beverages with good taste and on the basis of its target audience’s requirements. This will help the organization to increase its effectiveness along with the development of unique image in the target market. Introduction of the new products and services will help the organization to gain the market share along with development of the effective goodwill in the market.

5.0 Conclusion

From the aforesaid discussion, it can be concluded that the Mr Beans is a company engaged in the production of soya bean food products and beverages through which the consumer’s requirements are fulfilled in relevance with healthier cum tasty drinks and food items. In order to analyse the organizational effectiveness, this report concluded the various aspects such as macro environmental factors and competitive analysis and its factors have been discussed in relevance with expanding the business in the overseas markets. The last part of the report included the recommendation part through which the desired goals and the objectives could easily be attained.

6.0 References

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