General Environmental Analysis
Lion Nathan is a beverage company which has its base in Australia and operates in both Australia and New Zealand. The main products of this company are wine, soft drinks, other kind of beverages and sprits (Crossland et al. 2014). The company also produces flavored soft drinks. At first the name of the company was Lion Nathan National Food. It has 7000 employees working currently. The paper discusses the different business operation of the Lion Nathan. In order to do this the internal and the external analysis f the company has been done in this paper (Crossland et al. 2014). The discussion brings out the risks and the opportunities of the company. The recommendations are made on the basis of the issues and the risks identified (McDonnell et al. 2016). The analysis indicates the market situation and the position of the company. The paper also discusses the strength of the organization and the opportunities for the organizations for improvement of its position in the competitive market (Davis, Chelliah and Minter 2014). Apart from that the evaluation and the identification of the risks will help the organization to identify the scopes for the improvement and the modification of the business functions. The information for the analysis has been gathered from the different sources. The recommendation has been made on the basis of the identified threats and the opportunities in the discussion.
Lion Nathan is an Australian company which operates in Australia and New Zealand. The organization produces beverages of different kind. The main products of the company are wine, soft drinks, different kind of flavored beverages. There are other companies which are the shareholders of the Lion Nathan company. The business of the organization is going well and it has become one of the famous local brands known in Australia (Martin-Rios et al. 2018). The internal and the external analysis have been done in this paper in order to find out the business situation of the company. The internal analysis is concerned with the management of the resources of the organization while in the external analysis the position of the company with respective the business situation and the scope for the improvements have been discussed.
The industry where the Lion Nathan belongs to is the food and beverage company. The company provides different types of drinks to the consumers. This also includes the alcoholic and non alcoholic products.
Economic:
The economic situation for the Lion Nathan company can be considered average. The current situation indicates that the consumption of the alcoholic beverages has been decreased in current times,while the consumption of the soft drinks has been increased (Mialon, Swinburn and Sacks 2015). Apart from that the Australian Drug Foundation has put the restriction for the alcohol producing companies to promote the alcoholic products thorough the educational or the sports events. This may hamper the marketing of the alcoholic products of Lion Nathan Company. Apart from that the current business situation indicates that the Lion Nathan should be focused on the promotion of the different kind of soft drinks as the market of the soft drinks are growing rapidly.
Economic
Physical:
The Lion Nathan is situated in Australia. The base of the company is in Australia however, the company is becoming famous and has its branches at New Zealand. There are different branches of the company throughout Australia. The supply chain of the products of the organizations is available in different market and shops. In this case, it can be said that the physical position of the organization and it’s different branches are in the favorable position.
Socio-Cultural:
The socio-cultural situation of the country has significant effect on the business of the organization. Lion Nathan Company produces both alcoholic and non alcoholic drinks. It has been seen that the people of both Australia and New Zealand are preferring soft drinks over hard drinks. However, this situation may not be problematic for the Lion Nathan as the organization also produces different kinds of beverages. However, the organization can put more focus on bringing the variety off the soft drinks.
Global:
The Company initially founded in Australia. From that point of view it can be said that Lion Nathan is a local company of Australia. However, the strategic business management and the implementation along with providing the quality produces have helped the business organization to expand the business. The business has been expanded in New Zealand. However, the business of the organization is operated only in Australia and New Zealand. The organization can expand the business in other continents. However, in order to do this the organization needs more planning and the product needs to be more relevant in the business context of the other countries in other continents. This will bring the true global status for the Lion Nathan.
Technological:
The technological aspects of the organization have certain significance on the development of the business of the organization. The advanced use of technology helps the organization to provide the quality service. Lion Nathan uses emerging technologies for producing the quality products. Apart from that the organization is also using the technologies in the different modules of the ongoing business functions (Haskelberg et al. 2016). The latest technologies are used in the supply chain management for the organization. Apart from that the use of digital media has been done for the marketing of the products of the organization. It can be said the use of technology in the business process has been helping the Lion Nathan to gain the competitive advantage in the food and beverage industry.
Physical
Political:
The political factor plays an important role for Lion Nathan Company. The government of Australia has been imposed excise tax on the alcoholic drinks. It has been seen that the tendency of the alcohol consumptions among the young people in Australia has been increased. Imposition of the tax will reduce the tendency of high alcohol consumptions (Ariyawardana et al. 2015). This will raise the price of the alcoholic beverages produces by the Lion Nathan company. Moreover, people are getting interested about consumption of soft drinks. Lion Nathan can put more focus on the producing of the soft drinks. The creation of the new flavored drinks will help the Lion Nathan to do well in the competitive market. It can be said that the price of the soft drinks will not be affected in this course.
Demographic:
The Company is currently operating in two countries. The current numbers of employees are 7000 (Sacks et al. 2018). It can be assumed that with the expansion of the business the number of employees can be increased. Moreover, there are lots of opportunities for the company to expand the business outside of Australia (Ferguson et al. 2016). The expansion of the business to the other countries will increase the numbers of employees from different parts of the world. This will increase the diversity of the employees in the organization which will eventually improve the working condition of the organization. It will also help to make the organization truly global.
Industry Environment:
Power of the supplier: Supplier has the high bargaining power in this case. Lion Nathan has the high switching cost as the company is regional and there are few suppliers of the products for the company. In this case, the supplier can go for the other companies or the international brands (Collignon et al. 2016). In this case, Lion Nathan has few suppliers for the distribution of the products.
The bargaining power of the buyers is high. There are lots of other companies in the food and beverage industry. Some of them are international and famous brands. In this context the buyers have various options for the food and beverages (Ridoutt et al. 2016). The buyers can choose from various brands and selects one of them. The selection can be done on the basis of the price of the products and the quality of the products. In this case, the price of the products produces by the Lion Nathan company should be reasonable so that it can draw the attention of the consumers.
Socio-Cultural
Potential entrants:
The food and beverage industry has many companies. However, making a position in the food and beverage industry is hard (Miller et al. 2015). In this case, there is a potential threat for the Lion Nathan company from the existing companies in the food and beverage industry. In order to mitigate the threat from the existing companies, Lion Nathan should keep the price of the product reasonable along with maintaining the quality.
Substitute products:
There are many substitute products of the soft drinks currently available in the market. The consumption of the alcohol is going down. People are getting more concerned about health. In this case, the substitute products for the soft drinks are different health drinks with lower calories. The organization needs to focus on the producing the health drinks.
Rivalry among competitors:
There are rivalry competitions among the different existing companies in the market of the food and beverage industries. All the existing companies produce almost similar products. In this case, the there is a competition among the companies regarding the selling of the products.
Competitive environment:
The environment of the food and beverage industry in Australia is competitive. There are other existing companies along with the famous brand names present in the market. The rivalry can be in form of the pricing strategy of the products and the new innovation of the products. Apart from that availability of the products plays an important role for gaining the competitive advantage.
Opportunities:
There are lots of opportunities for the Lion Nathan company for the improvisation of the business. The organization is currently holding a good position in the food and beverage industry of Australia and New Zealand (Chen et al.2015). However, the innovation of the new products can help the company to get more popularity. The organization can achieve this through the emerging technologies used in the organization. Apart from that the company can expand the business in the other parts as the food and beverage industry is booming throughout the world.
Threats:
Although the current business position of the company is in the favorable position, there are other competitors in the market who are producing different kind of products (Hill, Jones and Schilling 2014). The strict competition is creating the challenging situation for the organization. Apart from that the company is not updating according to the dynamic situation in the market.
Resource of the organization:
The internal resource of the organization can be divided into two categories-tangible and intangible.
Global
Tangible resources: The tangible resources of the organization are the capital and the profits of the organization (McDonnell et al. 2016). The tangible resources are the resources which can be measured. The capital of the company is provided by the different stakeholders of the organization (Lu and Zhang 2016). One part of the capital comes from the sponsorships and the profit gained from the selling of the products. The other tangible resources include the machines and the systems in the factories.
Intangible resources: The intangible resource includes the resources which are aesthetic in nature. Some of the intangible resources of the Lion Nathan company are the good will of the company and the brand name of the company (Jones, Hillier and Comfort 2015). The company is running in profit and is delivering quality products. These are increasing the popularity and the brand value of the organization. These intangible resources are helping the organization to expand the business in large scale.
Identification of the capability:
The identification of the capabilities of the company indicates that there are lots of opportunities for the Lion Nathan companies for the expansion of the business. The company has gained a significant position in the food and beverage market (Fergusonn et al. 2017). Apart from that the expansion of the business can be done in the near future. However, the company is still in the growing phase and the lots of improvisation and the modification are needed to be done to raise the position in the competitive market.
There are internal and external factors needed to be improved for the company. The use of the information technology is needed to be done in order to enhance the flexibility of the business process of the organization. The use of cloud computing can be done in order to enhance the storage space of the organization (Green et al. 2015). On the other hand the implementation of the ERP can be beneficial for the organization for the better management of the organizational operations.
The system regarding the cloud computing can be beneficial as it will help the organization to mitigate the overhead cost of the organization for the maintenance of the infrastructure. In this case Lion Nathan can use hybrid cloud model where the public and the private cloud can be used. The public cloud will contain large amount of general data (Gianni and Gotzamani 2015). On the other hand in the private cloud the confidential data will be stored. This will also increase the security of the data storage. On the other hand the proper implementation of the ERP system in the organization will bring the flexibility in the business process along with that it will help in the synchronization between the different modules of the process.
Technological
It can be recommended that the proper strategic planning and the implementation of the advanced technology will be helpful for the Lion Nathan for achieving the higher position in the market. In order to identify the scopes for the improvements and the analysis and the identification of the issues the internal and the external analysis have been done. It can be said that there are lots of opportunities for the company to expand the business (Renton et al. 2015) . However, the update of the current working environment of the organization is needed the situation of the market is dynamic and the demands of the consumers are changing rapidly.
Conclusion
The paper discusses about the internal and external analysis of the business situation of the Lion Nathan company. This beverage company is getting famous in the food and beverage industry of Australia and New Zealand. There are lots of scopes and opportunities for the company to achieve the higher position in the market. Apart from that it is recommended for the organization to implement more emerging technologies like cloud computing in order to make the operations of the organization more flexible. There are certain issues regarding the business of the organizations which can be regarded as the threats for the company. Those issues are needed to be addressed in a proper way. It can be said that following all these things, Lion Nathan can expand the business and make the suitable position in the competitive market.
References
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