Managing Organisational Strategy - Essay Example

 Global Tea Trends 4 Strategies 6 Porter’s Generic Strtegy 14 Strategy Clock 14 Ansoff Matrix 16 SAFe Framework 18 Recommendations 20 Conclusion 20 References 21 Introduction Since the eighteenth century the United Kingdom has been one of the biggest for every capita tea customers on the planet, with every resident devouring on normal 1.9 kg for every year. Tea, which was a high society-drink in Europe, turned into the implantation of each class in Great Britain sometime during the eighteenth century and has remained so. In Britain, the drinking of tea is varied to the point that it is difficult to sum up, however generally it is presented with milk and some of the time with lemon. Yorkshire Tea is a leading tea brand of United Kingdom which is quite popular for their product of black tea blend. The family of Bettys and Taylor of Harrogate runs the business and it was initially founded back in 1886. It is one of the few companies in England that is left with name of family name in the tea industry. The purpose of this assignment is to analyze the strategic moves by the company Yorkshire Tea that have enabled them to sustain in market with a very good position. And on the basis of those strategies and market trends, the future strategic alternatives will also be discussed for the purpose of growth of the company. For instance the current strategy of the company is to serve the customer with highest value and engaging the company in a number of social activities that helps the firm in building a positive image and position the brand as the one who feels responsible towards the society. Background The family business of Bettys and Taylors is based on the set of several values. All these values are quite clear for the employees of the firm as well from their first day at work. All the practices that are observed in the company are highly qualitative maintaining the standard of the brand and the family name behind the management of the company (Allen, n.d.). Yorkshire Tea is a separate collection of black tea from Taylors of Harrogate. Taylors of Harrogate is a family business located in the Yorkshire Dales of England, which has a century of experience making tea and tea blends the highest quality. The family business Taylors of Harrogate has become the benchmark of excellence and respectability higher skill making tea blends, aristocratic design and its traditions are the pride of the family and its excellent reputation. Since 1990 the company has planted over two million trees worldwide. For their work in the social sector and contribute to the protection of the environment, they have been awarded the prestigious Queen's Award for Enterprise in the field of sustainable development. Global tea trends World dark tea handling is anticipated to build to 2.4 million tons in 2010.According to the studies of 2000; an estimated amount of rate of normal development is 1.2 percent on yearly basis from 2.15 percent million tons. The change in yield is majorly considered as the basic reason behind this development. Most of the African makers are prone to observe huge creation development because tea hedges achieve ideal preparation age, and processing aptitudes of little producers make strides. For instance, the generation in Kenya is said to be developed by 2.3 percent on yearly basis from the amount of 236,300 tons to 304,000 tons. This period of development was estimated from 2000 to 2010. On the other hand the rate of development in Tanzania and Uganda are estimated to be 1.7 percent and 2.7 percent respectively. The three biggest dark tea processing nations, India, Kenya and Sri Lanka, are relied upon to record for 70 percent of the world tea creation in 2010, contrasted with 63 percent in 2000. One of the most significant teas sending out nations in the region of Asia should better encounter minor decreases in fares that should also be in accordance with the usual developments in wage and populace that might cultivate down home utilization. For instance, we can observe the case of Indian and Indonesia that it might diminish by the rate of 2.4 percent to 150 890 tons and also some studies reveals the figures of 1.1 percent to 87 000 tons, separately. In addition to that, the case of srilanka is also there to be observed closely that might experience expansion from 281,000 tons to 293,400 tons with a yearly normal development rate of 0.4 percent. According to the statistical data of 2010, world net imports of Black tea, which has a number of substitute available these days, is said to have the addition of up to 1.15 million tons reflecting a normal yearly expansion with a rate of 0.6 percent from the average estimation of about 1.08 million tons back in 2000. The expansion in the imports of United states is estimated to be increase by 1.4 percent on yearly basis to 94,300 tons and on the other hand Japan is there building their net imports with 22,000 tons with a normal rate of development of about 1.8 percent. Despite what might be expected, net imports by the United Kingdom are relied upon to decline by 0.6 percent every year to 125 500 tons. These significant shippers together might represent about 60 percent of worldwide net imports. Strategies Bettys and Taylors don't simply deal with their staff but they take care of suppliers as well. They never compromise on the quality of their product but maintaining the standards of their quality still they make attempts in order to utilize little organizations. Abroad, firm is quite competitive and holds a strong feasible sourcing system and a 'moral champion' that is there to assist and co-ordinate work with various developing groups of tea and espresso. Back in 1990, as a part of the company’s plan to once again give something to the various groups o which they, the Bettys and taylors took a vow and the vow was about working with foundations that are working for some social cause in the society. For instance, we can take the example of Oxfam which was being done to plant one million trees far and wide. Here the reason behind picking up the trees was that trees are one of the most profitable assets and are fundamental for the presence of man. Due to this project or activity, there are about three million trees that have been planted till date in various geographical locations like India, Ethiopia, Brazil, Kenya and a number of other countries. Customers can easily observe the token of trees for life on every item of Bettys and Taylors. With the backing of clients they have replanted local forest, repaired pathways and dry-stone dividers in the Yorkshire Moors and Dales with the National Trust; worked with the Woodland Trust to plant 10,000 trees and protect some of Britain's aged forest; and upheld individual tree-grower and neighbourhood preservation bunches with 'Trees forever' bursaries and recompenses (Allen, n.d.). Not only with social organizations, but the company has a long history of working in alliance with nearby groups like schools, trusts, neighbourhood foundations and etc. They have started establishing a prompt trend of applying their perceived values through their schools of Bettys Cookery and other tutoring activities (Allen, n.d.). They also indulge their staff and employees in their causes and motivate them to participate in various social activities to keep the good nerve in the environment of the firm. For the purpose of charity the employees of the company vote for a representative from the company who is effective for the period of 12 months (Allen, n.d.). The past activities of the company such as the straight children’s foundation and the multiple sclerosis society have added a great deal of profitability in to their business and have also leveraged the name of the brand in the market in a positive manner. The Staff is additionally permitted to do magnanimous work inside organization and within their working hours. In fact, more than 10 percent employees of the company avails the opportunity of being a part of something really good. All the employees are well aware of the fact the prizes of all these noble duties is intangible and all such activities motivates them to feel good about themselves and stay positive towards the hardships of life. This attitude helps the employees to be proud of them and make them think that they are a part of a good cause that eventually results in high confidence high self esteem. A £2 million TV fight will push the item's three items: Yorkshire Tea, Yorkshire Tea for hard water and Yorkshire Gold and with that the budget amount invested in the advertising campaigns was about £3 millions (Beckett, 2011). In 2003, the Bath-based promoting office South created a TV advertisement for Yorkshire Tea that was enlivened by the youngsters' book and vivified film The Snowman. The business took the manifestation of an enlivened excursion through the Yorkshire Dales and emphasized a percentage of the celebrated northern points of interest that are depicted on Yorkshire Tea's bundling. According the marketing manager of Yorkshire Tea, Kevin Sinfield, the market of tea is declining in terms of volume and money and the market is not going to experience new customers anytime sooner (Joseph, 2013). The brand supported the Itv1 show Heartbeat until 2001 in an arrangement that was worth £1.6million. Taylors of Harrogate is the fourth-biggest maker of tea and espresso in the UK. Its adversaries are Tetley, Unilever Best foods, Premier Foods and Associated British Food. Yorkshire Tea has flourished in Britain, and its prominence and achievement was established in 2005 when it turned into the third smash hit tea brand, equalling top of the line enormous company's brands, for example, PG Tips and Tetley. Buyers traverse an expected 10m glasses of Yorkshire Tea consistently. In the start up of the business, the Yorkshire Tea adopted the strategy of limited time offers that was back in 70s. They had introduced a number of tea related items and offered them as limited editions. The company issued items like teapots, mugs, model toys and tea caddies. The company of Yorkshire Tea which is still known and claimed as a family business has expanded their selling regions outside the boundaries of United Kingdom successfully and till now they have expanded their business operation in nearly 30 countries. The pastoral packaging style of Yorkshire packaging is quite attractive it gives a touch of the hopeful picture of England ad there is also a shade of the green lank and countryside areas of England that helps in maintaining the touch of traditional heritage (anon, 2012). The packaged picture on the label of the Yorkshire tea helps an English person in making him feel near to his home place and providing him the sense that he is not long away from his homeland. Yorkshire tea is considered as one of the democratized and practical for the consumers of a particular country, whereas on the other hand there are many brands that prefer to stay national with some selectiveness. The name of the brand itself contributes in playing the part of an affirmative brand of the company. Many of the people are unable to notice the royal crest and one of the main reasons for that can be that Yorkshire Tea does not really cohort themselves with any of the grounded brands present in the market and in order to keep the realness of their brand and to keep the brand as a genuine English tea, this step is significantly important. To keep and maintain the level of genuine English tea brand, Yorkshire Tea has engaged itself in the idea of being quick in the case of planning and as well as for executing their plan. The idea of Charles Taylor was basically to bring a taste of Yorkshire in to any of the things that is left of Britain. And Michael Peters was the man who interpreted the thought very accurately with the addition of his own compositions. Undoubtedly the man is a champion because he implemented his ideas successfully (anon, 2012). The US has begun numerous tea patterns, from the tea sack in 1904 to canned frosted tea in the 1950s. From that point forward Unilever spearheaded the pyramid molded tea sack. However in spite of its present day showcasing routines, Yorkshire Tea will hold its square sacks. "We don't accept it changes the taste," says Mr. Eyles. "Brands need to have qualities and identity. Yorkshire Tea is practical and clear." To contend in the business, Taylors is depending on its enthusiastic emulating and premium item. Simon Hill, a senior tea purchaser, says: "Tea is similar to wine. Every district is diverse and in a few regions each one enclosure has a different taste." Yorkshire Tea turns out to have various big name fans. Sigourney Weaver has presented co-stars to it on set, and when Hurricane Sandy hit New York last October, Russell Crowe, Noel Gallagher and Madonna are additionally fans. Brand interchanges administrator Dom Dwight clarifies that Yorkshire Tea is one organization that has long taken a mindful methodology to the Facebook numbers diversion: "Where it counts down most individuals know harshly what the worth of a like is on account of they've either got a large number of individuals however no one ever reacts or they've got a huge number of individuals who say stuff while never being asked on the grounds that they are so captivated." The British tea brand has taken various diverse methodologies to publicizing throughout the keep going couple of years some key and purposeful with a goal to measuring outcomes (Brandweiner, 2012). Anyhow with a whopping measure of consideration paid to cash used and ROI, Dwight contends there's still a great deal of different perspectives to publicizing that need to be recognized. He says: "No one is truly discussing the other cost which is the man hours you put into creating the substance. In case you're not going to promote however you are going to be in the business of attempting to gain likes and drive engagement that is something that consumes many individuals time" (Brandweiner, 2012) . Dwight clarifies that Yorkshire Tea is utilizing the informal community as a listening gadget or "a magnifying instrument" to investigate what its clients are stating. "One of the huge things we need to track is something as essential as the measure of times that we're said internet, seeing whether we are discussed more than PG Tips, Tetley or Twinings is a helpful metric for us. Yorkshire Tea saw an open door to utilize Facebook as a component of a coordinated multi-channel battle (Brandweiner, 2012). With such a variety of Brits over the lake griping about low quality tea, the brand took a tea van, named 'Little Urn', over the States to serve containers of tea in LA, San Francisco and Florida. Yorkshire Tea had an objective to turn into the no. 2 brand in the tea market. To attain this, they required to draw in new clients to the brand past their conventional heartland. In the discussion between Yorkshire Tea and its fans on social networking they uncovered the crude materials for their crusade: Brit's abroad unable to get a legitimate blend. The procedure was to utilize the energy of Yorkshire Tea fans surrendered by condition to fuel a more extensive discussion with new clients. Little Urn, Yorkshire Tea's spunky little tea van was sent to the tea desert of America on a salvage mission, taking a 'fitting blend' to the individuals who need it most. Television was utilized to convey this escapade to the country back home and bring new clients to the brand at scale, which in turned fuelled new discussions on social networking. In one year alone esteem deals expanded in Yorkshire from 8.58m to 9.373m, an ascent of 9.5%. In whatever is left of the nation, deals climbed by 11.6% - from 46.1m to 51.45m. Broadly, Yorkshire Tea piece of the overall industry rose from 12.06% to 13.79%. Little Urn not just did the key occupation of drawing in new clients to the brand additionally hoisted Yorkshire Tea into the 'major association' of built tea publicists. The company has invested huge amounts in their marketing plans and has gained a lot from it. It is one of the fastest growing mainstream brands of tea worldwide. They have successfully managed to sponsor the English Cricket team as well and this has brought a new life in their marketing campaigns. Their strategy to infuse their brand in every part of a nation’s culture has served them well. One of the basic reasons for choosing sponsorship for the national cricket team is this that cricket is the only game that has got tea breaks in it and it helps the firm in connecting their message to their targeted audience. Yorkshire tea is brands that have positioned themselves as one of the brands that can be consumed for the celebrations and consumer can actually enjoy having this product. Their strategy of marketing themselves as a product that gives joy has provided fantastic results (Charles, 2013). They have kept their new flavour of celebrations in their marketing plans incorporating the heritage of England by providing the same old traditionalized packaging pictures that most of the tea brands have (Charles, 2013). The time for tea brands is real bad nowadays, because there have been hundreds of substitutes available for tea and most of the people now prefer to have something else instead of tea to refresh them and this situation has been prevailing from last four to five years. Most of the consumers are now inclined towards consuming coffee because the market and the industry of coffee is much more dynamic and there are various varieties of coffee that companies are offering. In addition to that, the café culture has also hit the sales of the tea companies tremendously and the young generation even the adults who are the working class of the society is now prefer to have a cup of coffee with their mates and colleagues in a coffee lounge instead of having a relaxing cup of tea in their homes. According to the statistics, the market of the black tea is nowadays experiencing a decline of 3-4% on daily basis. And on yearly basis the decline is getting higher and higher with a current rate of 15%.A company like Yorkshire tea is not at all huge like Unilever and Tetley but still they are there in the competition nd still gaining popularity just because of their strategic decisions. Amy Price, senior nourishment and beverage investigator at Mintel says while conventional tea still delights in large amounts of entrance in the UK, the development of espresso chains and rise of healthier sodas throughout the years has put the aggregate tea class in "long haul" decrease. There is a drive from brands to take the "solid plot" of claim to fame teas, for example, home grown and products of the soil mixes and make an interpretation of it into deals for their "regular" ranges, she includes. Standard tea creator Yorkshire Tea is taking off a brand building battle, nearby comparable deliberations from adversaries PG Tips and Tetley, in the trusts of drawing in strength tea consumers, it claims are progressively prone to supplement green, products of the soil teas with conventional variants likewise. Yorkshire Tea also strategizes along with the social media company of wildfire in order to target the younger generation of their target market (wildfire, 2013). The tea brand is setting out on a computerized charge, made in organization with org Limehouse, that will utilize Facebook and Youtube to help entice passed PG Tips and Tetley consumers to switch over. It is likewise increase its speculation on in-store advancements and inspecting movement in accordance with its extending vicinity in retailers across the country. The brewer says the point is to help it contend on an "actually balance" with its opponents and help break down observations of Yorkshire Tea being a "territorial brand with national appropriation". Porter’s Generic Strategy Differentiation Strategy The differentiation strategy is adopted by companies who have been successful in gaining some competitive advantage over their competitors in the industry and hence they provide sell their product marketing that particular point. This type of strategy is mostly useful for the target market of those customers who are not sensitive over the price issues and are ready to pay moderate prices for a better product. In the same way Yorkshire Tea also implement the differentiation strategy as they promise to deliver the best quality tea. Also, they claim themselves different from others as they are socially responsible and keep participating in various social bustles. Strategy Clock This is the Bowman’s model of strategic clock and this model is usually used in assessing the performance of a company on the basis of its strategic decisions. Focus differentiation Focused methodology is the way an organization contends, or the methodology taken by organizations to offer its items and administrations. Bowman's Strategy Clock is an instrument to recognize the aggressive position of the organization, or how the organization persuades the client to purchase its items as opposed to that of a contender. In 1996, Cliff Bowman and David Faulkner created Bowman's Strategy Clock. According to this strategy clock, Yorkshire Tea pursues a differentiation strategy that incorporates provision of high perceived value to the end consumer on moderate prices. The firm is inclined towards providing the best experience and value to their consumers but they tend to grab their market with relatively higher prices than the lower pricing companies. This adds value in their brand as they are just not selling their product for the sake of monetary benefits but they are also dedicated in keeping up with the consumer’s expected satisfaction level. Yorkshire is aware of their target audience and the people that they serve are the ones who prefer to have a traditional and valuable product instead of going for any random product that is available in the market and that is the reason that to cope up with the expectations of their consumers, Yorkshire Tea has always maintained a moderately higher strategy of pricing rather than any of the other ones. And this is the prime reason for the creation of their goodwill in the market which is eventually resulting in higher popularity margins. In addition to this strategy clock, there are various other strategic options available for Yorkshire Tea. For instance, they can now gear up to be differentiated and focused company of the tea industry because of their good image in the market. But they should not just run for it, instead they should better apply it slowly and grab the market. Because as we can see the global trends of the black tea shows that there are so many markets in which Yorkshire can enter and target their audience. So it would be beneficial for them if they would enter those markets with their current strategy and after a while they can shift their pricing strategy to a little higher. Ansoff Matrix Market Penetration This strategy refers to the growth strategy of a particular business that they might have adopted. In this strategy the business focuses on selling their product in the existing markets with adopting the options like low prices. This strategy works in achieving dominance in the market. Market Development In this type of strategy of the Ansoff Matrix, the business chooses to sell their products in newer markets and start expanding in other locations and regions of the world. The products can be sold on the basis of new geographical location, new demographics or via different distribution to reach the new targeted customers. Product Development Under this strategy the companies choose to sell in the existing markets with the introduction of latest and innovative products. This type of growth strategy is mainly associated with the creativity of the product. This strategy is mostly suitable for those businesses who have to stay competitive in order to sustain in the industry. Diversification It is also one of the very important growth strategy in which businesses start selling their newer and innovative products in the newer markets. The risk involved in this strategy is also very high because not only the product is new for the customers but the target market is also new for the company and they usually do not have any prior experience in that market. The Ansoff matrix is a marketing tool that helps firms in identifying the potential growth strategy for their companies. The most suitable strategy according to this Ansoff matrix for Yorkshire tea can be the penetration strategy and the market development strategy. These two can serve the idea of growth for the Yorkshire well because a tea is a brand in which there cannot be any modifications done and in the case of Yorkshire Tea, their heritage is their selling point, so they cannot change. That is the reason that they should try penetrating in other and newer markets by introducing their brand in various geographical locations. This idea had already worked for a number of companies in the past and the rising graph of the popularity of Yorkshire Tea indicates that by opening up in newer places, their profits will definitely increase and it will do well for them. SAFe Framework It is important for businesses that whenever they plan out something for their business then they should better get it done with the SAF framework as well so then they can realze that their proposed plan can be implemented or not. This SAF framework is the analysis of suitability, acceptability feasibility and endurable nature of the plan or the strategic choices that a firm may have made (Anon., 2014.). Suitability If Yorkshire decides to penetrate in other markets globally then it is important for them to keep in mind the thing that they cannot globalize keeping their heritage of England throughout the world. They should understand that in order to meet the expectations of their global audience, they would have to change certain things in their packaging and marketing plans. The same marketing plans cannot work for every other region. Their decision of penetrating in the global market should go with the global trends and the trend of that particular region in which they are starting up otherwise they are just going to make a mishap. So according to the Suitability factor of this framework, the most suitable strategy for Yorkshire will be penetration but there is a risk of affecting the brand image as lowering prices can lead customers thinking that the quality of the product have also been decreased. Acceptability Yorkshire Tea should also take in consideration that their decision of taking their brand to other markets can affect their current customer base because it is essential that in order to penetrate in other markets, Yorkshire will have to make some changes and this can affect the current consumer that their favourite brand is also available in some other country with so many changes. The psychological affect on the minds of consumer can make them go away from the brand and affect the sales of the product. So to overcome this issue, Yorkshire should make sure not to make huge changes in the marketing strategies, packaging and pricing strategy otherwise this would not be a good thing for the brand loyalty. In my opinion, the strategy of differentiation would suit best for Yorkshire Tea because they can come up with something innovative in their product or may introduce the same product with some innovation in a different market. Hence product development can also work for Yorkshire Tea. Feasibility Yorkshire should assess that whether they have enough funds within the company that they can go global and can expand to that much area. This is highly significant as to ensure that their taken decisions make sense or not. So a thorough analysis of the company’s resources that are available would be good to do that. In my opinion, Yorkshire Tea does have resources enough to penetrate a number of other regions because they have got a good graph of popularity and good will in the market. So according to the feasibility factor, it will not be that hard for the company to adopt the diversification strategy and take there brand to some other location. Enduring In order to penetrate in various other markets of the world, it would be good if the firm would do a survey of not only the place that the firm is going to start up their business but the firm should also take a survey regarding the decision from the employees of the firm and other important stakeholders of the firm. By analyzing all these factors Yorkshire can ensure that their proposed decisions for the growth strategy can prove to be profitable or not. Recommendations Yorkshire Tea should work on diversification and product development in order to gain new customers because plainly following the market development strategy have higher risks of losing the current market and it will not be any good for the company. The market trends of the beverages industry can help them analyse the gaps of the tea market, on the basis of which they can identify new product or some flavoured tea. Conclusion Yorkshire Tea is a famous tea brand of United Kingdom and they are nowadays experiencing a great deal of goodwill in the popularity of their product. It is black tea brand that has chose to set them as the moderate product of the market with a differentiation strategy. Even though the availability of so many other substitutes in the market has affected the sales of the tea brands and many smaller companies have been shut down due to the huge popularity of the coffee café trends, still Yorkshire is there with increasing goodwill. This can be taken to another level if the firm takes on striking the correct strategic moves just like the ones they have doing in the past. References Palmer, M. 2007, Are you ready to order? 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