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Business & Marketing
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Corporate Analysis Report: Analysis of Taste of Europe (Research Paper Sample)

Instructions:

This is a corporate analysis of Taste of Europe, a leading big food corporation operating in many European countries. 1

source..
Content:

Corporate Analysis Report
Student's Name
Institutional Affiliation

Background
Founded in early 1980s, Taste of Europe is a leading big food corporation operating in many European countries. With an employee base of 18,500, the company runs a chain of restaurants, wine manufacturing plants and cooking schools. After years of unmitigated success, the corporation has faced tougher conditions within the last few years resulting in a decline in its revenue. Economic troubles in the European continent, mounting competition and a generally saturated market have all contributed to the company's declining performance. To combat these forces and remain competitive, the company proposes to expand its operations into a foreign country with a fast growing economy and new potentials. Expansion is motivated by both cost and revenue benefits including demand for growth in the foreign country, access to new markets, and benefiting from economies of scale.
Purpose of the report
Using the relevant business models, the report purposes to provide a comprehensive corporate analysis of Taste of Europe's business, examining its prospects in expanding into foreign markets. Both the internal and external business environments are evaluated using SWOT and PESTLE models respectively. The report also purposes to analyze the industry using Porter's Five forces model to evaluate its current position and future prospects. Based on the corporate analysis, a number of strategic options from which final recommendations are outlined to inform the company's planning, marketing, expansion, competitor intelligence and strategy functions.
Content of the report
The report Contains:
Background
External Business Environment Analysis using the PESTLE model
Internal Business Environment Analysis using the SWOT model
Industry analysis using Porter's Five Forces Model
Strategic Options and
Final Recommendations
PESTLE Analysis
PESTLE analysis evaluates the external micro and macro environment in which a business operates. The model analyzes the political, economical, technological, legal, environmental and social factors.
Political and Legal issues
Government control for health reasons
Restrictions in Licensing for franchises
Consumer taxation
Different political infrastructureEconomical issues
High taxation in the European Market
Inflation and fluctuating exchange rates
Economic decline in Europe Social issues
Changing Lifestyles in Europe
Cultural Sensitivity
Technological and environmental issues
Technological:
Need for technological integration in operational management
Evolving technologies
Environmental Factors:
Criticism from Environmentalists Political and Legal issues
The continental operations of Taste of Europe is highly influenced by each country's policies outlined and enforced by the respective governments. Respective European governments have enforced restrictive policies with regards to the health implications associated with specific foods. Reportedly, harmful elements such as cholesterol have been associated with increases in incidents of cardiovascular diseases and obesity in children (Enz, 2010). Governments are also imposing restrictions for issuing licences for foreign companies for reasons such as worker protection, health issues and environmental concerns. Increases in taxes across Europe also impact the company negatively since it increases its expenses reducing its profitability. Since Taste of Europe is operating in many countries, differing political infrastructure and legal environments further affects its operations. Its long term success in foreign markets is dependent on its relationship with existing governments and its compliance with taxation regulations and government policies. Additionally, the company should satisfy all the prerequisites for operating in the foreign market and comply with the legal operational requirements (Hassanien, Dale, Clarke and Herriott, 2010).
Economical issues
Inflation and fluctuating exchange rates
High inflation and fluctuating exchange rates affect consumer's disposable income. Since Taste of Europe operates in the food market segment, customers are faced with a stalemate of taking meals at home or eating out. Hence, consumer's disposable income directly affect the company's economic environment particularly with respect to their general sales (Ritzer, 2011).
High taxation in the European Market
Higher tax rates, especially within the Eastern European market have also had an impact on the company's external environment. In addition to having to pay higher taxes as stipulated by individual governments in which they operate, the company also has to pay more to the international suppliers.
Economic decline in Europe
The general economic decline in Europe have greatly impacted the smooth operations of Taste of Europe's franchises. The decline has resulted into slower economic growth rate, yet, the rate at which a country's grows directly determines the country's consumers' purchasing power. Weakened economies have, therefore, necessitated certain adjustments in order to maintain economies of scale.
Social issues
Changing Lifestyles in Europe
Changing lifestyles in Europe as a result of different concerns influences the company's operations. Majority of European's who eat out are often financially able hence have higher expectations preferring more convenient and quality services. The younger urban generation also prefer technology in their day to day life hence the need to integrate facilities such as wireless internet, relaxing and cozy ambient environment and credit card payment.
Cultural Sensitivity
There is also the need to consider the different cultures between the company's home UK and other countries. Ensuring cultural sensitivity will increase Taste of Europe's customer base. In the European continent for example, Germans are known to like beers while Finnish prefer fish in their food which Muslims and Hindus do not take pork and beef respectively (Enz, 2010). Taking such specific nationalities' interests into consideration will help the chain better understand its customers and come up with the best products for them.
Technological and environmental issues
Technological Issues
The Taste of Europe needs to integrate technology in both its operational management and generating demand for its products. It is, however, imperative to note that technology does not have very high impact on big food industry hence is not a very significant macro environment variable (Wheelen & Hunger, 2012). Nonetheless, the existing technology marketing tools such as Google ads and online Facebook in addition to websites such as Timesdeal and Snap deal should shape the company's marketing strategy. The company should also consider integrating systems such as supply chain management and inventory system to manage its operations. Since an increasing segment of its customers are technology savvy, inclusions such as use of credit cards in payment, wireless internet access and a remote ordering system for its customers are critical for its competitiveness. Such measures increases customer satisfaction while saving costs further contributing to price reduction (Hassanien, Dale, Clarke and Herriott, 2010).
Environmental Factors
Being a major big food corporation with over 18, 500 employees, Taste of Europe is a major consumer of potatoes, chicken and beef. This has, generally, resulted into criticism from environmentalists who consider high consumption of beef products as linked to the green house effect resulting from the methane gasses from cows' ranches, (Ritzer, 2011). The big food industry has also been criticized for cruelty to animals, besides, its use of paper packaging for take away negatively impact the environment since most of the packages are hard to recycle.
SWOT Analysis
Strengths
Strong European Presence
Cost Reduction via Economies of Scale
Strong Estate Portfolio
Strong Brand Recognition in Europe
Strong Financial Position Weaknesses
Saturated Market
Price competition
Poor product innovation Opportunities
International Expansion
Modernization
Introducing New Products
Changing trends in eating habitsThreats
Changes in Global Economy
Foreign currency fluctuation
Increasing competition in the big food industry
Inability to differentiate 
Strengths
One of the key strengths of taste of Europe is its strong presence in the European Market. The company is both a market leader in its domestic UK market and in other markets across Europe. Secondly, with 18,500 employees, the company's enormous size and huge European presence allow it to reduce cost hence benefit from economies of scale Its operations in multiple countries further allows it to diversify risk which may arise from the economic performance of individual countries (Murray-Webster & Williams, 2010). Another key strength is its real estate portfolio which allows it visibility, ease of access and traffic volume. The company's strong brand recognition not only increases its sales volume, but create additional opportunities such as capturing the youth and family market segments.
Weaknesses
The key major weakness faced by the Taste of Europe is the saturation of the food industry. The industry is so saturated that the company may find it difficult in expanding to new markets or adding new outlets within the existing markets. Secondly, the food industry has seen an increase in price competition as a result of too many competitors. This has, not only reduced the company's ability to increase revenue, but is also interfering with its operations since it has to focus on a more diverse menu. Another key weakness faced by the company is lack of product inn...
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