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UK Baby care products report

UK Baby care products report


Baby care products report

Introduction

There are many companies in the UK providing baby care products. Examples of such companies include Beaming Baby Company, Johnston Baby Skincare, Water Wipes Pure Baby Wipes and Mum and Me Little Explorers. The skin of a child is sensitive thereby requires best and quality products. The companies provide the skin care products since the children’s skin is delicate. Healthy competition exists between these companies with Johnston being the leading company in the UK. The companies provide products useful to small infants of below the age of four. In addition they provide products for pregnant mothers which can be used before and after the pregnancy period. Examples of baby products produced by this company include food, shoes, clothing, lotions, baby bedding toys, playing games, bottles, gifts and other baby care products used to maintain good hygiene to the delicate children. Other products are produced especially for pregnant mothers which include maternal clothing, nutritious food supplements and other products related with mothers hygiene. This report will give an outline on how leaders should use the right strategies in order to enhance success of the baby care products companies.

The usefulness of achieving strategic fit

Strategic fit is the process used by a company to ensure that both capabilities and resources comply with the factors affecting the business externally. Beaming Baby Company uses resource based theory in order to ensure that both capabilities and externalities are available and utilized for success of the company. Strategic fit is used to analyze the current strategy used in the company and ensure that the right strategies are used to bring success to the company. For example Beaming Baby uses the strategic fit to analyze its products and advance the products in accordance with the current technology (Jolly, 2012, p.341). Resources utilize application of modern technology which contributes to success to the organization. One cannot measure capabilities since they are intangible. Capabilities are shown through given employees, resources and technology used in that company. Capabilities are therefore important towards success of the company and should be considered.

Organizations should ensure that resources are enough and available in order to attract investors thus generating profits. Modern technology should be used in terms of machines. Beaming Baby should use modern software thus boosting the IT department. Strategic fit entails use of the resource based theory thereby ensuring that capabilities and resources are used in a maximum way. Organizations should apply various resources in accordance with resource based theory (Jolly, 2012, p.341). Resources in given companies impact positively and in some cases negatively towards the company. Resources should therefore be utilized in an efficient manner. The Beaming Baby ensures that through the strategic fit resources impact positively to the success of the company. In addition strategic fit entails the company to develop and utilize the available raw materials by enhancing modern technology. This brings success to the baby care company which is useful in keeping hygiene of small babies and pregnant mothers (Truss et al, 2012, p.254).

Strategic fit helps the company plan long term successful plans. It helps companies get reliable supply chains where the products get to reach the customers in a good time. This advantages the baby care company since customers can access the product at different stores and supermarkets. Strategic fit ensures that the company uses modern technology and efficient communication strategies (Blundel & Lockett, 2010, p.213). It ensures that the company uses corporate strategies in its activities. The manager ensures that the employees follow the requirement of company. The manager ensures that competition is healthy thereby looking for effective methods of maintaining strategic fit in that company. Use of a corporate strategy ensures long term plans are made towsrds success of the company for future purposes. The manager ensures that the prices of products are affordable to the customers who are mainly mothers. Strategic fit ensures that the working environment is convenient for employees (Blundel & Lockett, 2010, p.213).

Employees should remain motivated in order to support the company. Managers should look for markets for the products. The Beaming Baby Company being an international company ensures that products are distributed globally (Lockwood, 2007, 312). This ensures success since globalization is possible which creates good trading interactions between different countries globally. Managers should be flexible in order to change with the changing strategies and technological changes. Managers should ensure that the company is not outdone by its major competitors. Managers should identify the problems faced by the company and come up with reliable and efficient solution to ensure success of the company (Lockwood, 2007, 312). The objectives and aims the company should be achieved by managers applying their management skills. Mangers should make sure that the plans are well implemented and that the set goals and objectives are maintained. This makes the company remain strategically fit thus ensuring success in that company.

Porter’s Five Forces framework as a tool of competitor analysis

Competitive rivalry

There are four largest baby care companies in the UK such as; Johnston Baby Skincare, Water Wipes Pure Baby Wipes, Beaming Baby Company and Mum and Me Little Explorers. These companies are operating by applying advanced approaches to please and attract customers. Baby care companies are therefore urged to remain technologically advanced in order to gain significant amounts in the large share (Osterwalder & Pigneur, 2013, p.234). Competition implies that the business is growing and thus the company should remain competitively advantaged. In order to reduce the competition, the company should lower its prices, give discounts and promotions to its customers and practice advertisement as a way of attracting customers who are mainly mothers. The company should differentiate its entire goods and service in order to survive in the competitive environment.

Threat of substitute products

High threat of substitute is prone to occur within the baby care market. Consumers hold great power to substitute to the other dominant retailers. Many baby care companies contain variety of similar and close substitute products. It causes price elasticity of demands since the market is sensitive to price and accordingly price will be increase or decrease in terms of their competitor attitude towards the product pricing (Osterwalder & Pigneur, 2013, p.234). UK baby care industry always tries to increase the product quality and services to make them less price sensitive. Beaming Baby Company provides high quality products which will attract the targeted customers.

Threats of new Entrance

A new company faces several challenges and difficulties when venturing in to the baby care industry since competition is stiff. When new markets enter, the existing ones are as well challenged. New markets enter with improved products which are advanced in technology thereby posing as a threat to existing companies. New companies in order to attract customers at first lower their prices and thus will be preferred by most people (Tilmouth & Quallington, 2012 p.236). This challenges the existing markets that will be forced to lower their prices in order to compete with the new markets. This means that new manufacturers’ faces stiff competitions from existing ones. New manufactures should be financially stable and technologically advance in order to compete in a healthy manner with the initial companies.

Bargaining Power of suppliers

The baby care industry holds low Power of suppliers since leading markets deal with different consumers. There is a little threat as large baby care companies dictate the price they pay to their suppliers. Thus, small businesses are not able to compete with big rivals, equally suppliers are left with Beaming Baby Company and they have to provide material in the right time as well as lower their prices in order to attract customers (Tilmouth & Quallington, 2012 p.236). The necessary raw materials and resources should be maintained. The suppliers decide on the prices of their products. It is not the responsibility of buyers to decide but the prices should remain affordable to the targeted buyers.

Bargaining Power of buyers and customers

To some extent there can be several producers but few buyers. This is disadvantageous to the Beaming Baby Company. The buyers can therefore dictate the price they want by bargaining in that favorable environment. This advantages the customers but poses as a threat to consumers. Buyers will go for the best and quality products thereby disadvantaging the producers. Companies are left with no choice but to reduce the prices of their products so that customers can buy their products. In this case the consumers dictate their prices and the industry are affected negatively (Tilmouth & Quallington, 2012 p.236). Power of buyers is high threat for businesses since customers dictate their prices.

The rationale for adopting a revolutionary as opposed to an evolutionary approach to Change

Managers face difficulties in their business activities. Managers should ensure that the company remains competitive advantaged. This implies that the manager should look for opportunities and markets for the products of the company (Ray, 2010, p.204). The manager should ensure that strategic changes are implemented in order for the company to remain successful even though competition exists in the industry. They should come up with skills, inventions and ideas on how to manage the company in accordance with improved strategic changes. Evolutionary approach should therefore be changed and revolutionary approach maintained. The new and reliable opportunities should be utilized in order to maintain success of the company. Managers have a big role in defining the opportunities necessary to enhance continuous growth and development of the company (Ray, 2010, p.204). Resources and capabilities should be well utilized in accordance with the plans made by the company. The set goals and objectives should be achieved through use of revolutionary approach. Raw materials and necessary resources should be maintained in order to enhance a smooth flow of activities in the company. New strategies should be implemented which will contribute to success of the business. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. Managers should motivate their employees and provide quality wages to them. This ensures that they remain motivated and work hard to ensure success of the company (Ray, 2010, p.204).

 

Evolutionary approach deals with developing the already existing strategies. This approach is rather not preferred by companies. Revolutionary approach is highly preferred since it guides managers on what to do and how to utilize resources, available raw materials and new opportunities for success of the company. Managers should therefore utilize the new ideas and technology in order to enhance success of the business. Managers should be keen in making decisions since they affect the entire activities of the company. Decisions should be clear and transparent and should also involve employees (Ray, 2010, p.207). Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees. Decisions should be effective and well planned strategically. The company should be led by highly qualified staff members whose aim is to contribute success to the businesses. Employees should ensure that they employ good and reliable skills in order to promote success in the company. A good revolutionary approach employed by staffs of the company should entail maximum use of the given resources. Strategic planning is a key contributor to success of the company (Ray, 2010, p.207). Aims and objectives should be clearly laid down and employees given the guidelines on how successfully achieve the set standards. The management of organization should be enhanced in a way that capabilities are utilized in order to achieve set goals and objectives. Resources should apply modern technology which contributes achievement to the organization. This is in accordance with the revolutionary approach adopted by managers in the company.

The concept of strategic drift and how it might be avoided

Strategic drift refers as a steady revolutionize that takes place delicately that they are not easy to be noticed until it is too late (Dziri, 2011, p.66). This situation arises in instances where company steadily creates strategy in a manner that does not match with the altering external environment (Melin, 2010, p.45). Strategic drift is known to have adverse effects to a firm, for example, it causes the Beaming strategies to be unproductive when tackling the strategic situation. Assuming that beaming baby Care Company is extensively known company in United Kingdom, the occurrence of strategic drift may cause adverse effects on their strategic stance. Normally, a strategic drift can result from the organizational history and culture that in turn obstruct organizational change (Dziri, 2011, p.66). It is believed that the concept of strategic drift can occur even in a company that has ever enjoyed a momentous success. This is because most of the companies tend to respond too slowly to changes that take place in the external environment and they continue using certain approach that has ever served the firm very well (Dziri, 2011, p.66).

Different research that were carried out due to this concept of strategic drift asserts that most of the causes of the strategic drift are appreciative to lack of ownership of the policy by staffs of a certain firm (Melin, 2010, p.45). This means that the members of the organization assume strategic drift as they thought that it is caused by the failure of the people who are accountable for change organization. This is because it is too gradual to an extent they cannot be able to recognize it. It is clearly known that strategic drift can arise when an organization strategy fails to comply or to fit the operating systems as it was earlier planned (Melin, 2010, p.45). Various ways that can be used to help baby care industries to evade the idea of strategic drift includes:

Growth

Beaming baby care companies must develop a fit defined growth strategy that may be in a position to address all need for future growth. An informed strategic growth can help this company to invent a guideline that works as a road map for Beaming Company to attain their objectives (Melin, 2010, p.45). When companies tends to have a reliable strategies, it can be in a position to achieve its’ objectives in quicker management of the entire employees. This in advance may help them to avoid the emergent need for altering their officially designed strategies and therefore, evade strategic drift.

Leadership

It is believed that a nice designed leadership strategy is essential to a firm. This is because it functions as an important element that assists in determining the feasibility of any firm operations (Dziri, 2011, p.66). In addition, high-quality leadership is accountable for development of the entire organization whereas unplanned leadership is accountable for drift in an organization. Therefore, a well planned leadership can help an organization to avoid strategic drift.   There is a certain procedure used to plan the style of leaders. This assists to determine the pathetic positions of the entire leaders and therefore, avoiding strategic drift.      This means that when Baby care industries will develop well defined rules, they will be in a position to notice the drift and thus, they will fix it easily.

New technology

When the technology is first introduced in any organization, there is a need for the entire company to have an appropriate planning technique that will facilitate its employee to adjust the changes. On the other hand, lack of appropriate scheduling will consequence to a drift that can be rigid to recuperate. This means that it is essential for these companies to recognize some strategies that can be pursued          thus, lessening occurrence of a drift (Dziri, 2011, p.66).

Human resource

The fact that human resource has become one of the most vital aspects in running a business, it is essential for companies to have a competent work force. This helps them to create a competitive advantage which other companies may get hard to copy in the market. For a company to have a competent and motivated work force, they should have well planned and skilled personnel (Dziri, 2011, p.66). This will reduce the incidence of strategic drift.

The involvement of administrative management to implementing strategy in accordance with strategic change

Administrative execution is of importance in ensuring success of the company. Information is delivered throughout the company from the administration department. Communication strategies are implemented from the administrative management downwards to the employees. The decisions of managers contribute great effect to the running of the whole company. A mistake committed by the manager impacts negatively to the running of activities in the organization (Henry, 2011, p.94). All employees should be included in the decision making and implementing scheme and process. Involving employees creates good employee-employer relationship. Managers should not make long lasting decisions without consulting employees as a way of showing respect and value they have for employees (Keating & Moorcroft, 2006, p.211). Managers should make decisions which will contribute success to the business. Decisions should be effective and well planned strategically thereby contributing to positive results in the company. Administrative managers should have the necessary skills to ensure smooth flow of information from one department to the other. Employees should be highly trained as a way of improving their skills and knowledge. The manager should ensure that plans are planned strategically in order to achieve the set goals of the company. Managers have a role of identifying problems within the organization and outside the organization since the problems affect the organization directly or indirectly. Managers should ensure that both external and internal factors affecting the business are catered for in the best way. Through use of SWOT analysis and the BCG matrix of the company administrative managers should ensure that marketing strategies are well implemented (Keating & Moorcroft, 2006, p.211). The managers should work out on the weaknesses of the company and transfer them in to strengths thereby making the company successful. The price of products should remain affordable in order to outdo competitors and remaining advantaged.

Conclusion

From the above discussion it is clearly evidenced that baby care industry is highly competitive. Through implementation of the porters five tool, the industry can be successful. Prices of products should remain affordable to mothers. Through use of modern technology and online marketing strategies, the Beaming Baby Company will increase its sales thereby remaining successful. Managers have the responsibility of promoting success of the company through utilizing their position in guiding other employees to undertake the strategic changes in the company. This ensures managers to come up with new and modern strategies in order to promote success to the business. It is thus evidenced that Beaming Baby Company produce products for babies and their mothers which is an effective business plan. Managers and employees should work hard to ensure that the set goals and objectives are achieved. This makes the company successful and more advantaged.

 

 

 

 

 

References

Blundel, R., & Lockett, N. (2010). Exploring entrepreneurship. Oxford, Oxford University Press.

Dziri, R. 2011. Avoiding strategic drifts in a hypercompetitive market Analysis of Nokia's position in the mobile phone industry and suggestions. München, GRIN Verlag GmbH.     

Henry, A. 2011. Understanding strategic management. Oxford, Oxford University Press.

Jolly, A. (2012). The growing business handbook: inspiration and advice from successful entrepreneurs and fast growing UK companies. London, Kogan Page.

Keating, I., & Moorcroft, R. (2006). Managing the business of schools. London, Paul Chapman.             http://site.ebrary.com/id/10218294.

Lockwood, G. (2007). Fertility & infertility for dummies. Chichester, John Wiley.             http://www.contentreserve.com/TitleInfo.asp?ID={087EF6EB-018C-4876-B819-            A40C04731CD7}&Format=410

Melin, M. H. 2010. High-performance managed futures the new way to diversify your portfolio.Hoboken, N.J., John Wiley & Sons.        http://public.eblib.com/EBLPublic/PublicView.do?ptiID=588946.

Osterwalder, A., & Pigneur, Y. (2013). Business model generation a handbook for visionaries, game changers, and challengers. Hoboken, N.J., Wiley. http://rbdigital.oneclickdigital.com.

Ray, C. I. (2010). Extreme risk management: revolutionary approaches to evaluating and measuring risk. New York, McGraw-Hill.

Tilmouth, T., & Quallington, J. (2012). Level 5 diploma in leadership for health and social care and children and young people's services. London, Hodder Education. 239

Truss, C., Mankin, D., & Kelliher, C. 2012. Strategic human resource management. Oxford, Oxford University Press

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