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Strategic Management - Internal and External Factor of Godiva Chocolatier

University: University of West London

  • Unit No: 4
  • Level: Diploma
  • Pages 14 / Words 3500
  • Paper Type: Dissertation
  • Course Code: L/616/1805
  • Downloads: 113
Question :

Analysis regarding strategic management in context of Godiva.

  • Examination of existing strategic positioning of Godiva.
  • Recommendation to strengthen strategic position of Godiva.
Answer :
Organization Selected : Godiva Chocolatier


Strategic management is define as the continues monitoring, planning, assessment and evaluation of entire necessary for an enterprise in order to meet its targets and goals. Given organisation is Godiva which is a Belgian manufacture and produce different kinds of confectionery goods to the customers at reasonable price. It is important for the Godiva in order to identify their internal and external factor. Main aim and motive of this study is to develop awareness about macro and micro factor of environment. In this assignment different factors are used by the Godiva with motive to accomplish their long term and predetermined objectives in allotted time duration. 5 Force frameworks, PESTLE Analysis,  Porter's Generic strategies,VRIO mode and  strategic direction methods are used by the organisation to gain competitive edge in limited time period.

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Strategic management is the implementation and formulation of the major goals or objectives and initiatives taken by an organisation's upper level administration on behalf of owner. It is mainly supported on consideration of resources and an categorisation of the external and internal environments in which enterprise competes (Ackermann and Eden, 2011).  Strategic management process support business leaders evaluate their company's actual position, strategies and measure the effectiveness of the developed strategies. In this assignment, given organisation is Godiva Chocolatier, it is a Belgian manufacture and retail company which is deals in chocolates and many other related products. It was founded by the Joseph Draps in 1926 at United Kingdom. This report is based on two parts which are cover internal and external factor of the company. Macro factor includes PESTLE and Micro factor cover 5Force Framework. On the other hand, internal factor cover VRIO model., it is determined in this assignment. Identification of competitive strategies like Porter's Generic strategies which is also determined in this study. Beside this strategic direction including products, services, markets and many other expansion methods also determined in this report.            


Q1. What is Godiva UK’s current strategic positioning in the UK FMCG confectionery market?

Godiva is the chocolate company which mainly produce the Belgian manufacturer of chocolates. This company was mainly established in late 19th century and thus this company has mainly emerged with the global trend with the many of retailers along with thousands of outlets  along with offices within the United Kingdom along with many of the countries like Europe, Canada and Asia (Boyd and et. al., 2012). In 2007 , this kind of brand was being purchased by Turkish Yıldız Holding, owner of the Ülker Group, on November 20, 2007.  Following below is the PESTLE analysis for  the Godiva which will in turn will help out in drawing the attention towards the various kind of external factors which in turn can mainly put an impact upon the chocolate Industry. This in turn  will make the special kind of emphasis on Godiva UK, as this is the place from where the company has took birth. 

  • Political Factors: There  are various kind of Govt. concerns which has mainly lead to proposals for the sugar tax along with pressure which is being given to the manufacturers which in turn can mainly reduce the sugar amount within the factors (David, 2011). There are various other purposes regarding the political responses for the business activities after the hostile takeover of the Godiva by the Yıldız Holding.  Number of political decisions which are being made such as austerity along with subsequent falls within the disposable income which can lead to the company to take the Shrink-flation where the size of the chocolates product has been reduced instead of reducing size along with passing up of improved cost for the customer. This kind of process has been mainly started after the 2008 recession within marketplace and Brexit taking place. Opportunity for the company  is to resolve the issue of the sugar tax and thus produce the goods in effective manner. Weaknesses can be the taxes which they have to follow along with rules which can hinder the production.   
  • Economical Factors: Due to the weak position of the company within marketplace,  Yıldız Holding were able to purchase the Godiva company which enabled the company to borrow the loan from the bank from securing the sales (Eden and Ackermann, 2013). Moreover, there are various kind of economical costs which are being mainly included for the relocation for the manufacturing the Poland which in turn was cheaper and thus the company which was being purchased was to be focused upon the along with profit which can be obtained. Opportunity for the company can be like after having better position within marketplace this will allow to company to rise price of products.    
  • Social Factors:  This company has been mainly facing the changing consumer demands  and thus due to that company has taken partnership with other firms where they have outsourced their certain activities. However, this can create threat of hindering the production in negative way.  There are various kind of campaigns which has been conducted by the company to reintroduce the chocolate Bars in many flavours. Due to the health concern of the people, this company has reduced to have smaller bars and thus they can reduce the level of sugar within products.
  • Technological Factors: There is the advancement which can be done by technology by the help of research and development which in turn can provide help in rising cost of the  raw ingredients along with transportation and this can include the innovation like the heat resistant chocolate which in turn can be used within hot climate (Ginter, 2018). Social media is the tool which can be utilised by company to communicate within the customers. There are various application which are being used by company to engage consumers for certain kind of activities which can draw the attention.      
  • Legal Factors: There are various kind of legal issues which are being faced by company like company has to give out its ingredients to the customers by making choice based on fat content. There are various type of other legal issues which has the potential of making impact on the process of company within future time (Hair and et. al., 2012). This is the weakness which company faces and thus that can be turned into the strengthening up of regulatory framework which can mainly improve the EU membership terms and which in turn can reduce up the prices   
  • Environmental Factors:  There are another issues which are being faced by company Godiva like packaging amount which in turn can be utilised by company band thus reduce the amount and produce the organic Green and Black Chocolate. Further plans include supporting farmers who grow cocoa beans to ensure that this is carried out sustainably (Hill Jones and Schilling, 2014).

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