Opportunities of the Organization of Froto in the Market of the United Kingdom - Case Study Example

The paper "Opportunities of the Organization of Froto in the Market of the United Kingdom" is a wonderful example of a case study on business. In this age of competitiveness, it’s extremely essential for any entrepreneur to retain its market share for long. This is mainly due to the presence of a wide range of competitors. However, in order to retain its position and brand image in the market, a newly opened organization ‘Froto’ decided to introduce a new product named, Creamy milk for the customers of the United Kingdom. The product of Creamy milk mainly targets youths and small children with age-group 5-15 years. In addition to this, the organization of Froto developed the products of Creamy milk in such a way that it includes coating chocolate at its outer surface. So that it might be highly preferred by its young customers that may increase its total sales as well as total revenue in the market of the United Kingdom. In addition to this, such a feature of the product of Creamy milk might also prove effective for the organization of Froto to beat its biggest competitor, Cadbury, and Nestle as compared to others.   

In the most essential opportunities of the organization of Froto in the market of the United Kingdom is that it may attain a wide range of customers of varying lifestyles and cultures. As a result of which, its brand image and prosperity might get enhanced to a certain extent as compared to its other rival contenders. Other than this, the organization might also attain the facility to increase its product Sku’s by evaluating the features of the products of its competitors. Along with this, the organization of Froto might also accomplish the facility to expand into numerous new regions or markets thereby amplifying its market value and profitability.

But on the other hand, the organization of Froto also needs to cope up with the challenges of substitute products of Cadbury and Nestle. Along with this, it also needs to cope up with the high bargaining power of the suppliers and the customers. Not only this, but the organization of Froto also needs to tackle the threats and risks posed by the new entrants. Therefore, in order to do so, it needs to offer a high concentration over the quality of the product rather than price. Only then, the organization might retain its dominance and position.

In order to open a new business, it might be best to maintain a divisional organizational structure. This is because, in this type of organizational structure, the enterprise might easily delegate various functions to varied departments. As a result of which, each team focuses on its issues in an effective way that helps in the accomplishment of the final objective in a very easy way. Moreover, in this type of organizational structure, the leader or the senior manager is the main authority to present varied types of decisions to its employees. All these decisions and policies are effectively obeyed by the employees of the organization thereby developing a unique culture. As a result of which, the organization attains a distinct image and position in the market among others. However, such type of organizational structure also includes a vital weakness. Due to the presence of numerous departments, the rate of politics is extremely higher in this structure. As a result of which, the rate of conflicts and attritions is also quite higher in this type of organizational structure.