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The Global Business Environment Meeting Challenges - Essay Example

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Greggs_Business Introduction Greggs, the pioneering hub of fresh baking in the United Kingdom (UK) has been engaged in the incessant delivery of extravagant products including freshly baked products stuffed with magnificent food quality and unparalleled taste for nearly 70 years…
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The Global Business Environment Meeting Challenges
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Download file to see previous pages The company presently has a central savoury production unit and an armada of 375 delivery vehicles present throughout the day for ensuring the punctual delivery of the fresh food to the customers. The company also is the leading employer of approximately around 20,000 people and has a future dynamic plan of installing 500 new shops in the near future and generating 6,000 new jobs. The regional bakeries prepare baked food for the daily delivery shops with expert advices and under strict supervision from the skilled bakers from 90 in- store bakeries responsible for the provision of ultimate fresh baked food (Company Overview, n.d.). Growth potential-present scenario The analysts have established the facts with their sophisticated statistical forecasting tools and inferred that around 50% of the population of UK currently is devoid of access to Greggs shops. Thus they state that there is a boosting potential for the establishment of an additional 600 shops in the United Kingdom in the next few years (Growing Greggs, n.d.). Fig. 1. Dynamic Growth Potential (Growing Greggs, n.d.) The above diagram depicts the positive and rising growth potential forecasted by the analyst. Focus of the paper The paper emphasizes on the analysis of several factors affecting the financial health of the company initially with the macroeconomic environment analysis with respect to the famous PESTEL analysis and subsequently the microeconomic variables including customers, competitors and collaboration. Having a transparent insight about the factors affecting the company the focus will be shifted on the SWOT analysis in order to analyze the strengths, weaknesses opportunities and threats the company faces with an endeavor to formulate optimal strategies to ensure the forecasted escalating growth potential and reaping huge revenue generation along with the spreading of the reputation of the company to an all new dimension. A short insight on the financial health and performance of the company Before entering into the detailed analysis a short glimpse of the financial operations of the company needs to be mentioned. The year 2011 was indeed a challenging year for the company with respect to the economy and the consumers. The performance of the company was noteworthy in 2011 and has maintained the pace of progress towards the attainment of the strategic objectives with the record number of openings of shops across UK as well as investment in two major bakeries in Newcastle and Cumbria. A five period analysis (2006-2010) of the company’s financial health with respect to the key performance indicators (although trhere are many four of them are discussed) can be seen from the graphical analysis provided as below: A) Like-for-like sales growth Fig.2 The Like-for-like Sales growth figure (Annual Report & accounts, 2010, p. 18) The variable Like-for-like sales growth performs the comparison of year on year cash sales in the core shops of the company and is not distorted by the opening or the closure of the shops. The refitted shops are included in the like-for-like comparison unless there have been significant changes in the trading space. The growth of the Like-for-like sales also incorporates the selling price inflation. Year 2009 was a 53 week year affecting the total sales growth for that year and also ...Download file to see next pagesRead More
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