This unit examines about case of SSP Group Plc that is having their operation in UK and examine impact of external component that take effective decision.
- Briefly describe about SWOT Analysis of SSP group Plc
- Conduct PESTLE Analysis for analyzing factors affecting business environment.
- Describe Porters five force model used by SSP group
- Evaluate value chain analysis of SSP Group.
Every business organization have to operate in dynamic environment which keeps on changing with time. Therefore it is necessary to examine all internal and external factors that are present in surroundings in order to estimate its effect on the functioning of the business. The essay highlights the case of SSP Group Plc., a catering company that operates in many places at UK. This report highlights the external analysis of the company which is done through SWOT, PESTLE. This process helps the organization to determine the impact of number of external component so that management could take the effective decision.
SWOT Analysis of SSP Group Plc.
Strengths: SSP group Plc. is a well-established business organization and enjoys number of strengths that include, it has strong distributions channel system as well as well experienced staff members that work in the company and help them to achieve sustainable growth and image.
Weaknesses: Company have several weaknesses and that is why they have to face number of problems in this regard. Some of its weaknesses include ineffective research and development department which lacks number of process hence company do not able to maintain its competitive edge in the business environment. On the other hand, company do not make expenditure on adopting number of modern technology system into the business hence, have to face several difficulties in this regard (Sternad, Gradisar and Bobek, 2011).
Opportunities: It is consider external factor in SWOT analysis in which company have to evaluate these opportunities and garb it for their benefits. As there is low transportation cost of shipping company can take the advantage of establishing high market share in the business world. Due to introduction of new and advanced market place by the government SSP Global Plc. enjoy the opportunity to enter into this market.
Threats: SSP Global Plc. have to face number of external threats on which there is no control. For instance, increase in cut throat competition in the market place have a pose a huge threat in front of the company. Regular changes in customer preferences and demands will result in increase of problems in front of them.
Political Factors: As it is a catering company that operates in food and beverage outlets in different part of the world. Therefore they have to face number of political factors that include corruption level, number of trading rules and regulations that have to be implemented in the organization to operate in successful manner.
Economic Factors: The SSP Group Plc. have to consider several economic factors that include inflation, exchange rates that directly impact the operation of the company. On the other hand rate of economic growth, level of productivity in the particular market place impacts in several ways (Rahbek Gjerdrum Pedersen and Sudzina, 2012).
Social factors: the culture of society directly impacts the overall organization system of SSP Group Plc. It include educational standard present in the society, culture of people and other aspects.
Technological factors: This element involve several aspects of cost structure, advanced and modern technological process that will increase the overall efficient and effectiveness of the business organization.
Environmental Factors: SSP Group Plc. have to consider several aspects of environment that include climatic alterations, waste management system, laws framed by the government in respect to the environmental protection and must be adhere by the company.
Legal Factors: SSP group Plc. have to take into account legal factors while making decisions, which include intellectual rights regarding property that has to be adhered by the business.
Porter’s five Force Model
Threats of New Entrants
SSP Group Plc. have to face number of challenges and issues related to new entrants in to the market place these aspects are related to pricing methods, cost strategies, customer’s preferences thus, they have to manage all these aspects in effective manner.
Bargaining Power of Suppliers
Companies operating in food services have to purchase various amount of raw materials from the suppliers hence, organization may face number of aspects from the actions carried out by the suppliers. Therefore, it may minimize the profit ratio of the company.
Bargaining Power Of buyers
The bargaining power of buyers is directly linked with the creation of customer framework that are present in the market place. Consumer always seek for best quality of products and services that will lead to the satisfaction of their demands and needs (Gozgor, 2014).
Threat of substitutes
There are number of options of same products and services are available with the customers, this lead to the creation of threat in front of the company. Similarly, SSP Group Plc. have to supply quality products to their customers in order to stand apart from others.
Rivalry Among the existing Competitors
It has been observed that if there are firms from the same industry than it results into decrease of overall price as well as revenue of the company. Therefore, SSP Group have to carry out their operations in effective manner.
It consists of distribution channel that the company follows in its business in order to make their products and services available to final customers that are present in market place. There are certain policies and procedures that have to be faced by the company in order to perform their work process in adequate way. They always aim to supply best quality products in the market and that is why they can able to maintain their value for longer period of time. Management of the company always focuses on continuous improvements in their working condition and strategies that only concentrates in establishing their sustainable image as well as goodwill (Lynch, Marschner and Rengel, 2012).
From the above discussed essay it has been concluded that there are number of internal and external factors that are present in business environment and has to be examined by companies in order to work in effective manner. They regularly have to analyze its results through SWOT and PESTLE analysis. In order to determine the industrial analysis porter’s five force model has been evaluated in this regard.
You may also like the below sample:-