Strategies & grow business Essay
Strategies play a vital role to run and grow any business. So it is very important to develop a strong and unique strategy to compete the market. In this article, we are going to highlight the strategies of development of “Greene King plc. ” First of all we are giving an introduction of “Greene King plc”. This company has been operating brewing and pubs for over two hundred years. This company has grown up from its foundation in Bury. St Edmunds, Suffolk to become a great and leading brewer and pub retailer. The pub company is the managed division of Greene King, which covers both Hungry Horses and Old English inns.
It is the 3rd fastest growing managed business of Pub in the United Kingdom. Brewing company is the division for the sales, production, marketing and distribution of quality range of ales and beers of Greene King, including the best known 4 cask brands namely Abbot Ale, Ruddles County, Old speckled Hen and Greene King IPA (Peters, and Waterman, 1982). The Greene King company has a remarkable impact in the business. In late 90s, the company embarked on a number of acquisitions. The company purchased Magic Pub Company in 1996, Beards
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During the same year, the company bought Morland which had a reasonable tenanted and managed pubs estate and which brews including Rruddles County and Ruddles Bitter. Later on they closed Morland’s Abingdon in brewery, transfer of production to Bury St Edmunds. Due to which their acquisitions provided 903 pubs to Greene King (Walsh, 2007). In 2000s, the company acquired 136 pubs in purchasing of Old English Inns. In April 2002, the company acquired the 8 properties of Dalgety Taverns and in June, the company purchased Morrells of Oxfords by purchasing 107 outlets.
In July 2004, the company bought 432 pubs from the Laurel Pub Co in ? 654m. This purchase boosted the company’s premises over 2100. In June 2005, the company bought 73 pubs from Essex-based T J Ridley & Sons. After two months, the company showed its interest to acquire the Scottish group Belhaven in ? 187m, which increased 300 pubs in its estate. In September 2006, the company purchased Midlands-based (Kimberly) Hardys and Hansons including 268 pubs in ? 270m. Every company has to prepare some strategies so they can get the success and growth by using pre determined measures.
The following are the strategies for the company. Market Development Market developments means having the same or existing product in new markets. So detailed analysis are needed to identify the new markets for the existing product. The company may adopt the method i. e. to evaluate new markets in different regions. A company do it by sending their representatives to the different countries to evaluate and analyse the market condition and then prepare the feasibility report (Lynch, 2006). Product Development Product development means new products in the same market.
Through a survey, there is a need to identify the preferences of the consumers and introduce new product in the same market. A company may adopt a method that is to identify the preferences of the customers as well as other people so the company can design a new product for them. Advertisement Advertisement is the core factor of ant business. Through a heavy and strong advertisement we can attract the customers. There are different methods for the advertisement. TV adds, billboards, magazines etc. Merger The strategy of merger is useful to reduce the competition in he market.
Mergers can be obtained by analyzing the performance of different companies in the market then track the companies which can enhance the performance of our companies then deals with them. Increase Sales to Reduce Cost Cost reduction is necessary for any business of organization. We have to adopt some useful measures to increase sales then cost will be automatically reduced. Sales can be increased by promotions, efficient use of resources, use idle resources, and assign cost to products according to the activity performed on it (Lynch, 2006).
Online Services for the Customers The world is becoming technology oriented. It is very useful strategy to sell our product online and provide home deliveries for our valuable customers. A method available for it is to design a website for the orders of the customers. If company website exists, then introduce a separate portion regarding the customers by providing them an online account to the website. Branding Understanding wants and need of the customers is very important to succeed. Brands capture the hearts and minds of the client, customers and consumers.
Strong branding can influence the mind of others so they can rely easily on the product. Packaging Packaging is a major part in selling a product. So a company should adopt the best packaging to attract the customers and in different seasons the company can change its product’s packaging according to the season of cricket, football etc. A useful method for packaging requires the detailed knowledge of the product, so while designing the logos and other things of the packaging there should be a link regarding the concept of the product in the packaging (Lynch, 2006). Merits of Increase Sales
First advantage is related to the scale of economies, which increases the number of units or products so the company can sell more products means more profitability. Second advantage is product mix. The company usually focus on those products which earns more profit than the other products of the same company and the company eliminate those products which are in loss. Third advantage is that a beer brands can achieve efficient and effective distribution on sales and can have much more influence with the strong retailers for their sales off which leads to the increase in profitability and yield.
Fourth advantage is an increase in the company’s core competencies in beers by using best bottles and other cost of distribution which can be reduced. Key Issues in Implementing the Strategy While implementing the strategy regarding the increase in sales, the company has to focus on the • Market trend, • Collection of information of the existing and new customers, • Identify needs and wants of an individual, • Cost of the product, • Gather data of the customers outside the region, • Law and order situation of a country,
• Policies regarding the export of product References Peters, T. , and Waterman, R. , 1982, In Search of Excellence, New York, Harper & Row, pp 292–305 Lynch, R. , 2006, Corporate Strategy 4th ed. , Harlow, FT Prentice Hall, pp. 466–469 Greene King Media Release ‘Integration Plans for Hardys and Hansons announced’ www. greeneking. co. uk retrieved May 25, 2010 Walsh, Dominic, ‘Punch calls time on 1,000 pubs ahead of smoke ban’ The Times 21 March 2007, p. 44 Porter, Michael, 1980 Competitive Strategy, New York, Free Press, pp. 199–214