Frylight – Company Overview
The purpose of this following paper is to describe the entire business environment of an organization. The organization that has been chosen to compose this report is Frylight in United Kingdom. One of the most important aspects of analyzing the business atmosphere of this organization is to discuss about the challenges and opportunities the organization faces in this competitive business environment. It is also very important to have an in-depth analysis on the internal and external business environments of the organization. The most essential things about the organization like the financial performance of the organization, the ownership structure of the organization and the current international structure of the organization would be discussed as well. The different segments of the business environment of the organization like the political, economic, social, technological, environmental and legal issues would be discussed in this report as well. The business scenario of the organization will be discussed here. These issues are very significant to assess the business opportunities and environments for the organization. The details about the organization and its operations would be discussed as well. The Pestle analysis of the chosen country Finland will be discussed because the selected organization will be looking to expand their business operations in Finland.
The chosen company MH food organization is generally considered to be one of the companies in the food industry located at Erith in Kent in the United Kingdom (Dairycrest.co.uk 2018). They are the subsidiary company of the Dairy Crest. They have been constantly serving the needs of the people about nutrition for more than 30 years now. The company always insists the people for healthy eating and therefore healthy living. This is why they have been the most preferred brand among the customers. They have been keen on innovating new types of products in their fields that would be helpful for them indeed.
They have produced the first soy sauce, salad dressings and many others. The employees in the organization are very much trained and they always look for the betterment of the skills so they can serve the customers in a better way. They have gone on to innovate new products and gain the trust of the customers. One of their most important products they have innovated in this section is the Frylight i.e. generally a one calorie cooking spray used for cooking purposes (Dairycrest.co.uk 2018). This brand has been noted as the primary oil brand in the United Kingdom. The invention of this product has taken the reputation of this company to a grand place as well. The company has always tried to produce new types of food with low sugar and low salt. It has been calculated from the reports that Frylight has occupied the 14% of the market share. They have collected the sales revenue of £150.7 million. It has also been viewed that the annual performance of the sale of Frylight oil has grown up to a large extent. The volumes of Frylight have been increased by 23%. The sales of Frylight have also grown up to around 19%. After the acquisition merger with the Dairy Crest in the year 2011, the sales of Frylight has completely doubled as well. This is the reason why the organization is being able to perform much better in the last few years. They have won the IGD of the year as well.
Analysis of Frylight’s Business Environment
The vision of the company MH foods is the fact their success has been built for their links in the countryside. Their past heritage on dairy business and the efficiency of their people has also impacted largely on this business as well (Dairycrest.co.uk 2018).
They will look to innovate new and exceptional food for the entire generation that they would love. They want to bring the best quality food to the people or their customers (Dairycrest.co.uk 2018).
- They always learn. They take their time to listen understand and then learn.
- They respect the people with whom they work with and grow stronger together (Dairycrest.co.uk 2018).
- They care for the people as they act with responsibility to make the people do the right thing (Dairycrest.co.uk 2018).
- They create. They always seek new ideas and suggestions to grow their business.
- They lead in their way to gain the success and deliver the products with pace (Dairycrest.co.uk 2018).
Some of their important strategies are to generate the growth by building the strong positions in the branded and added value markets, to simplify the process, decrease the costs and make sustainability, to generate the cash and decrease the business risks and to make acquisitions where they would be able to generate the value. They will loom to co-operate with the wider industry at the larger prospects (Dairycrest.co.uk 2018).
One of their main aims is to build a strong reputation for their Frylight product in the industry and reduce the risks. This will help them to serve the customers in a better way indeed. If they can simplify their products and imply the cost effective strategies, the trust of the customers on Frylight will increase as well (Dairycrest.co.uk 2018).
The trading environments in the United Kingdom have been very much critical. In spote of these complexities, Frylight has done quite a good job in the last few years. They have taken some important steps that could help them to stay ahead of their competitors indeed (Dairycrest.co.uk 2018). This can be taken as a long term strategy for them. The different transformational sales have given them the scope for the simplified branded and value added business probabilities that has the correct amount of potential for the growth. The entire financial performance of the company has very good indeed despite there have been some price deflations. This has decreased the sale revenues as well by 5.8% to £422.3 million (Dairycrest.co.uk 2018). The company has faced the increase of the sales volumes by 1.7% across their most used brands including Frylight.
One of the most important contexts that could be highlighted in this part of the report is the fact that they have decided to venture into Finland. It is very important to understand the geographical conditions of the country since they cannot deliver the best efforts without having the knowledge about the country. The country of Finland is located in the Northern part of Europe. The bordering countries of Finland are Norway, Sweden and Russia (Myerson and Bichard 2016). The total area of the country is 338,145 sq km. The total population of Finland is 5,518,371. The country of Finland is considered to be a free market economy indeed. The government is responsible for the foreign direct investment by the international organizations. The recession in the year has impacted on the economic growth of the country but they have begun to reorganize themselves in terms of the economic context. The total GDP growth rate of the company has been 2.8% in the year 2017. The GDP rate can also grow up around 2-3% in the upcoming years as well. The total inflation rate of the country is around 0.8%. The unemployment rate of the country is around 8.9%.
Opportunities in Finland
It is indeed important to analyze the business environment of the organization in the best ways to consider the opportunities that will be needed by the organization to discover. These things would have to be kept in mind by analyzing the six external conditions of the country in which they are venturing.
Political
Finland is considered to be a parliamentary republic country. All the citizens have their proper rights to caste the votes in the municipal elections. The country can be taken as a cooperative model state. The political system of the country is therefore stable and it can attract foreign investors indeed (Newton 2014). If the investors are ready to put their money in Finland, both the parties can benefit a lot. They are keen on reducing the political risks in the country indeed. They have a good and peaceful international relationship with the neighboring countries. Thus they can give bright opportunities to the investing organizations (Hamilton and Webster 2015).
Economic
It is very important to assess the economic risks of the country by making an important evaluation on the various aspects. One of the most important things for the economy of Finland is the exporting of the goods to many countries (Wild, Wild and Han 2014) The entire world is suffering from the recession and this caused a slowdown in the Finnish economy as well. The loss of profitability has caused severe impacts in the economy of Finland in the most ways. However, the economic risk of Finland is not that much compatible with the other markets (Cavusgil et al. 2014).
Social
Finland is socially very much secured. The living condition is quite decent and safe over there. So if the MH foods decide to venture into the Finnish market with Frylight, their employees could lead a better life indeed (Morrison 2017). The healthcare and education system is very good and satisfactory indeed. These are the reasons they are one of the most socially secured countries in the world. If the MH foods gets to venture into Finland, their employees can also get the advantages of the healthcare system in the countries (Hamilton and Webster 2015). The different things like the transportation, social security and others are provided in the best ways in this country (Wild, Wild and Han 2014).
Technological
The implementation of technology is at the very high level in all over the world. Finland is considered to be the technological leaders in the entire Europe. This is why there are huge chances of advancement for the country in the technological sects (Morrison 2017). The multinational companies always like to recruit and expand because of the technological brilliance of the employees (Armstrong et al. 2015). The government and local entrepreneurs are giving their best for the improvement in the technological fields. There is a very good relationship between the public and private funding in the country. The R&D technology has been implemented in this country for better benefits (Chang, Hwang and Peng 2013). MH foods can implement these technological advancements into the preparation of the Frylight. They can also use the social media and technology for arranging the marketing campaigns.
Pestle Analysis of Finland
Environmental
Finland has been designated as the most sparsely populated country in the entire Europe for its location. The government of Finland can provide the people within the country with many important protection policies for the nature and the environment. The functioning of these policies are very much sincere and effective as well (Morrison 2017). As this is a great industrial country, many industrial wastes are originated and they take care of these things in the best ways indeed. They have enough resources to contribute into the investment of the environmental policies. They are very much active on solving the pollution problems indeed (McQuivey 2013). The air quality in the industrial areas has been developed so MH foods will find it easier indeed. These things would be very much influential for them to set up the factories. They will have to abide by the policies related to the greenhouse gas emissions (Armstrong et al. 2015).
Legal
The laws of Finland give the same rights to all of the people in the country. There are no imposes on the foreign investors or the foreign levies that can be applied to the business sectors. The firms are able to acquire the shares indeed. This is why they will be able to venture into Finland without any worries (Newton 2014).
Supplier power
The supplier power of the product is very low since there are very few suppliers in the market. This is quite a unique product and there are very limited suppliers for this product. This is why the company can change its prices in the countries they will expand into (Dobbs 2014).
Buyer power
The buyer power is very high as MH foods have the copyrights to these Frylight oil sprays (Dälken 2014). There are many buyers because most of the health conscious people are ready to buy these kinds of products. However, in the country like Finland, the costs are not needed to be kept down as the economic condition of the country is quite stable now. (Morrison 2017).
Threat of new entries
The food industry has some new companies who have also promised to provide the customers with the health friendly cooking oils. This is why the new startup companies can prove to be real threats to MH food (Dobbs 2014).
Competitive rivalry
The competitive rivalry for Frylight is very high enough because of the presence of the new companies in this business. This is why they need to find some strategies that could make their businesses sustainable (Rothaermel 2015).
External Business Environment Analysis
Threat of substitution
As of now, there are very few options that can work like the alternatives for this product. So, the threat of substitutions is not that much present at the moment (Rothaermel 2015).
Business opportunities
There are certain opportunities that could be attributed to the operations of this business. These opportunities will help to grow the expanse of the business
- This spray is very useful for the health as it is beneficial for the health as well (Smith 2013).
- There are several varieties of the Frylight like the Golden Sunflower Oil to the Creamy coconut oil.
- The customers can save up to 100 calories for their health which will keep themselves fit.
- Frylight spray oil can expand into Finland very steadily as it is very cold over there and the people look for good quality cooking oil all through the year (Tokic 2012).
- The expansion of Frylight into Finland will help the organization better social security.
- The people in Finland will be helped in great ways and thus they will be able to gain the trust of the customers for their advancement in the business (Ritala 2012).
Challenges
MH Foods might face some challenges as well when they will venture into Finland for their business expansion. These challenges are:-
- If the packaging of the bottles is not done properly, it could cause severe impacts in the quality of the oil (Tokic 2012).
- The economic deflation could result in the less transaction of the Frylight sprays.
- If the environmental policies are not carried out properly, this could impact the business of Frylight in great ways as well (Johnson 2016).
Conclusion
This paper could be concluded by saying that the business analysis of the chosen company i.e. MH foods has been done in this paper by explaining the business environments. As the company has chosen to expand into Finland the basic things like the pestle analysis of the country has been discussed. Apart from that, The overview of the organization has been including the vision, mission and strategy of the organization. The financial performance of the organization has been discussed as well. The porter’s five forces has been applied to the organization. Other important things like the business opportunities and challenges have been discussed here as well.
References
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Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014. International business. Pearson Australia.
Chang, R.Y., Hwang, H. and Peng, C.H., 2013. Technology licensing, R&D and welfare. Economics Letters, 118(2), pp.396-399.
Dairycrest.co.uk (2018). [online] Dairycrest.co.uk. Available at: https://www.dairycrest.co.uk/~/media/Files/D/Dairy-Crest-Group/documents/annual-report-2017-strategic-report.pdf [Accessed 17 Apr. 2018].
Dairycrest.co.uk (2018). Erith – M H Foods. [online] Dairycrest.co.uk. Available at: https://www.dairycrest.co.uk/who-we-are/our-locations/erith.aspx [Accessed 17 Apr. 2018].
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