Analysis Is an Important Part of Business †Myassignmenthelp.Com

Question: How To Analysis Is an Important Part of Business? Answer: Introduction This report basically discusses about the environmental analysis of famous company of the health sector named Blackmore limited. The objective of this report is to analyze the internal business environment of the company including external operating environment in the market. Blackmore Limited is the famous Australian company which is involved in the manufacturing of Vitamin supplements and the Dietary supplements. In the present time, the company is operating in many countries in all over the world. The company is involved in the production of vitamin supplements which are the main product of Blackmore Limited. The supplements products made by Blackmore are very popular among the customers of the Australia. In the healthcare sector, Blackmore is operating since last 80 years so, it is the oldest company in the industry producing vitamin and dietary supplement. The vitamin supplements are very famous and the company is the most trusted brand for the customers in the market. One of ke y factor of success the company is that prices of the products are not too high and they are affordable for everyone (Blackmore, 2013). It is well known that there is the strong competition in the healthcare sector. There are many competitors for the Blackmore Limited in the Australian market i.e. Swisse, Natures way and Cenovis Berocca etc which are in the good position and giving strong competition to the Blackmore. These companies also provide the vitamin and dietary supplements and popular among the customers. So, there is the need to do the effective analysis of the internal and external environment of the company to stay competitive in the Australian market. Along with this, the competitors are trying to achieve the first position in the healthcare industry. Based on a survey done in 2014, Blackmore is considered as the most trusted brand by the people of Australia. Now, company is targeted almost 76.5% of the total population in the Australian society. Along with this, company is also focusing any other countries i.e. Malaysia, New Zealand, Thailand and many other countries in the Asia specific reason (Ibis wo rld, 2016). External environment analysis There are some environmental factors which are not in control of the company. These environmental factors affect the performance of the company and its strategies. The factors also affect the decision making process of the company. Basically, the external environmental factors include all those factors which affect the company by the outside factors. These external factors affect the objectives, business model, direction and the strategy of the company in the operating market. The external environmental analysis of Blackmore Limited based on macro and micro analysis is described below (Lovelock, 2011). Marco Analysis PEST analysis Political Factor- There is the strong impact of government rules and policies on the business of Blackmore. The company operates in various countries and there are different rules and regulations in the countries. Those rules impact on the business of the company. There are some political factors such as exchange rates, political stability, inflation rate, unemployment rate, tax policies, and international trade regulations which affect business operations of the Blackmore Limited (Gilligan Hird, 2012). Economic Factor- GDP is the key factor which affects the economic and financial performance of the company in the international market. Another key factor is the inflation rate which has been increased over the last 7 years. The inflation rate is dramatically high due to the combination of various local and global factors. The Blackmore is affected by the inflation rates including high prices. Unemployment rate is relatively high in some countries because of high population rates. So, sometimes Blackmore has to face wrong distribution of working power in the labor market. Social Factor- The age-structure and education system also play an important role in the business of the Blackmore Limited. More educated people are able to understand the need of dietary and vitamin supplements in the regular life. Further, age structure and life expectancy improve the quality of the business of Blackmore (Casimir, 2009). Technological Factor- Having strong RD and advanced technology, Blackmore is able to gain competitive advantage in the market. Implementation of communication technologies in the business, Blackmore is able to reach each and every customer in the market. Blackmore is spending lots of amount in the RD department for effective business. Porters five forces Rivalry with the competitors- There is aggressive competition in the market of Australia. There is the strong competitor of Blackmore Limited i.e. Swisse Vitamins. Along with this, there is highly fragmented marketing having strong competition in which the product can be easily reformulated by the competitors. So, it can be said the rivalry of Blackmore with other companies is on high level. Threats of new entrants There are many restrictions for the new entrants in the market. There are barriers to enter which are restricted by the high requirements of CAPEX and various legal restrictions. In the current state, it is not easy for the companies to enter in the VDS market. So, the threats of the new entrants are relatively low in the market. Threats of substitute- There is the minimum threat related to the substitute products because customers always trust on concentrated nutrients which are lacking in their diets. Along with this, customers always trust on the old brands so the substitutes provided by the new companies are not so effective for the customers. Although there are many Chinese medicines available in the Australian market which can be the significant threat for the Blackmore Limited. But, it can be said that the threats of substitute is relatively low for the Blackmore Limited (Sullivan, 2012). Bargaining power of suppliers- The bargaining power of the suppliers is relatively low in the healthcare sector. Most of the inputs used by Blackmore Limited are not highly specialized and that is the reason the bargaining power of the suppliers remain weak in the company. The choices of the suppliers can be expanded by the expansion of the company into Asia Region. Bargaining power of buyers- Due to the launching of online sales of the products by the Blackmore limited, the company has got strong position in the market. Online sales are the only direct selling channels and by this, company is able to maintain good relationship with the major buyers in the market. Those buyers are important for the company because they generate more than half of the revenue. Further the supermarket chains also have significant power over the Blackmore Limited because of their economies of scale. So, it can be sail the bragging power of the buyers is relatively high in the Blackmore Limited. Micro Analysis SWOT analysis SWOT analysis is the important factor in analyzing the internal and external factors of the company in the market. SWOT analysis basically includes Strength, Weakness, opportunities and threats of the Blackmore Limited in the operating market (Taylor, 2016). Strengths- Brand name is the strong factors which must gain by each and every company in the market. So, Blackmore has the positive and strong brand name in the Australian market which is very helpful for the company in attracting the customers for the dietary and vitamin supplements. Blackmore is considered as the most trusted and famous brand for the vitamin and dietary supplements by the customers. Along with this, the prices of the products in the company are not so high. It means the company has set the affordable prices so that every person can get the benefit of these supplements and stay healthy. Further, it is well known that in terms of dietary supplements, Blackmore is recognized as the one of the oldest brand in the Australian market which is operating from last 80 years. Effective supply chain is also the key strength of the Blackmore Limited. In its supply chain, customers are able to deal directly with the warehouses of the company. Now, the company has gained number one position in the Thailand and Malaysia in terms of Vitamin Supplements (Stapleton, 2016). Weakness- Having much strength in the business operations, Blackmore Limited has some weakness also which must be addressed by the company effectively. The operational strategy of the Blackmore Limited is not defined clearly as the company is using common operational strategy for its business. Further, Blackmore Limited has very limited distribution channels. There are only three retail stores of the company that sell only 57% of the Blackmore products. The business model of Blackmore Limited is not so effective in the Australian market. The company is relying on the partnership with the many local companies for the Asian expansion which can affect its brand image in the market. Opportunities- Blackmore Limited has the opportunity to open the retail stores. By this opportunity, company will be able to increase the sales of its products in the market. Along with this, Asian market can be the biggest opportunity for the Blackmore. For this, company has launched its dietary and vitamin supplement products in the Mainland China. Further, Blackmore is planning to launch new types of products related to the pet care (CFA Institute, 2012). Threats- There are many hurdles for the company while operating the business in the Australian market. In the business of diet and vitamin supplements, there is very strong competition in the Australian market. The competitors in the market are trying to improve their market position and their marketing activities to stay competitive in the market. There is one more threats i.e. chemist in the country may ask for the lower prices to adopt the discounted strategy in the business (Uweguro, 2014). Internal environment Analysis Internal Environmental analysis can be described as the factors of the company which can be controlled by the company itself. Senior manager quality Managers play an important role in the growth and success of Blackmore Limited. Blackmore is now operating in the 11 markets of Asia-Pacific Region. The long-term growth of the company depends upon the creative 10 years vision. There are highly qualified managers in the company who diversified the business and built new sources of growth. The managers in the company are supporting in the Australian business to connect with the customers for improving profitable growth, innovation and building an effective leadership position in Blackmore Limited. The managers are continuously improving the operational effectiveness and cost profile of Blackmores business. The priorities of the business are communicated clearly with the every staff members. According to a recent survey, in Blackmore Limited, 95% of the employees are aware about the goals of the company (Donaldson, 2015). Resources Blackmore is the powerful brand in the pharmaceutical industry having long lasting reputation. By the analysis of resources of the company, the core competencies and the strategy of the company can be analyzed (Fifield, 2012). Core strategy- The aim of the Blackmore Limited is to provide vitamin and health supplements to the every person who needs extra diet. The policy of the company is maintaining strong relations with the customers. So, company is focusing to provide quality products by working closely with the suppliers and the customers. The strategy of the company is to improve the share prices of the company in the market and company is successful in doing so. The success of the company can be seen in graph. Figure 1: Share Prices of Blackmore (Source: Grioli, 2015) There are some innovative strategies used by Blackmore i.e. responding the preferences of the customers, introducing new products of pet care and vitamin supplements to provide extra health support to the customers (Johnson Scholes, 2002). Competency- By the core competency, the aim of Blackmore Limited is to maintain the strong brand image, provide effective customers services and excellent quality control as compared to the competitors. Blackmore limited has competitive advantage in terms of shareholders equity, return on asset and in cash conversion over the competitors which can be seen by the graphs. Figure 2: Growth of Blackmore Limited (Source: Blackmore, 2016) The development of quality of vitamin supplement will be very helpful for the company to identify new resources. Along with this, Blackmore Limited has rigid management structure which is helpful in handling the change market conditions (Armstrong Cunningham, 2012). Capabilities Due to top-down management structure, Blackmore Limited is capable to find out new business opportunities for the success and growth in the market. There are many new resources for the company i.e. self-sufficiency for store managers, and various buying procedures which are helpful for the company in dealing in various markets. Restructuring of the business is also key capability of the company which is designed to reposition the company in the market. By these capabilities, company is able to improve the key resources of the business. By the restructuring of business, company is also able to maintain good and strong relationship with the customers and suppliers (Turnbull Valla, 2013). Physical- Blackmore is engaged in the development, sales and marketing of the health related products including herbal, vitamin and nutritional supplements. The resources are its products catagories i.e. pet health, super foods, bone and muscles, cold, flu and immunity and everyday health etc. the company understands the needs of the people and provides the best health supplement according to that. Financial- Blackmore has got strong financial position in the market. The growth of the company can be seen by the income statement of the company. Figure 3: Income Statement (Source: Blackmore, 2013) The company is enjoying sales growth continuously in the market. In the financial year 2013, company had launched 50 new products in the market. The company has 11 years of record sale. Blackmore holds leadership of 24% of market share (Blackmore, 2013) Human- As discussed above, the human resource managers are engaged with the strategic priorities, profitable growth, innovation and building the product leadership in the company. Along with this, HR also plays an important role in helping the local workforce. HR plays a leading role to make to employee comfortable within the company. HR team has play a crucial role in the 13 years of strong sales growth of Blackmore by ensuring right people in the company. Conclusion This report describes the environmental analysis of famous Australian pharmaceutical company Blackmore Limited. By the above discussion, it is observed that the company Blackmore limited is the trusted brand among the customers and serving the pharmaceutical industry from last 80 years. The company is doing well in the market. From the external and internal analysis, it is observed that famous brand for the vitamin and dietary supplements by the customers having low cost of the products. Along with this, due to effective supply chain customers are able to deal directly with the warehouses of the company. References Armstrong, G., Cunningham, M. 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