Management Of Bellamy Company Essay

Question:

Discuss about the the impact of baby food Products of Bellamy Company in Singapore.

Answer:

Introduction

Strategic management is a process of managing business operations successfully to reach profound destination. The managers and other supervisors take the initiatives to implement certain specialised technologies for the purpose of making their organisation a good one in the market. Here, in this report it has been focused on the strategic management process of Bellamy Company in order to specify their target market. Report also draws the attention towards the PESTLE analysis and VRIO analysis of Bellamy Company for highlighting its factors and technologies in the current market of Australia. Finally, this report seeks the attention towards the strategies for recommending suitable steps for avoiding conflicts.

PESTLE analysis

Political

Bellamy Company is an inorganic food industry for infants and therefore it is necessary to look into the standard of the location for maintaining good health of the children and infants. As opined by Andreeva and Kianto (2016, p.1), non volatile political environment in Australia over the past few decades, has contributed in a significant growth in the food industry of Australia resulting 32% of total value of consumer foodservice. Bellamy thus operates in a stable political environment, where their various business activities do not receive much hindrance in complying with the government legislations.

However, Competition and Consumer Act, 2010 allowed ACCC in analysing prices of products under guidance of government. Promotion of pricing, checking price rise and making accountability of organisations for pricing policy are the different provisions of this act (Legislation.gov.au, 2017). Federal tax incentives allow a successive growth in economy of Australia. As a result, organisations like Bellamy that are operating in the country face much convenience in gaining profit in its business.

The government of Australia has can formulate controls of exchange for currency protection as stated by Reserve Bank of Australia. According to Booth (2015, p.521), Anti-money Laundering and Counter-Terrorism Financing Act, 2006 provides financial intelligence in eliminating illegal financing and money laundering in the nation. This helps the organisations in the country to operate their business activities in a corruption free environment. As per Chen and Kodono (2014, p.429), the tax facilities such low tax income rates have successfully made this country a profound and standard one to organise business operations.

Economical

Australia for consecutive three years is happiest nation of world among developed economies, because of economical strength. As per Eden and Ackermann (2013, p.67), economy in Australia portrays GDP growth rate annually of approximately 2.9% before 2009. Prevalence of such high standard economic condition in the country have assisted Bellay to increase their profit are share price in the stock market.

On the contrary, the nation faced an economic downfall of 0.8% in growth rate after the international financial crisis in 2014 (Hill, Jones, and Schilling, 2014, p.52). In order to improve and develop business organisations it is essential to make the financial growth stable, fiscal properties strong, inflation rates and that is called the financial business framework and it is available in Australian market (refer to appendix).

In current times it has been observed that government has invested huge facilities in order to diversify the economic condition of Australian market for making it standard for developing business organisations. Islam and Mamun (2017, p.4) stated that economy in Australia is retaining a positive growth from 0.8% to 2.3% in 2015. This has affirmatively impacted on Bellamy to increase their business in terms of profit. Food service market has faced a considerable growth that has caused a high amount of customers to avail service of this sector. This has acted as evidence that Australian population in no way is ready to compromise with the culture of eating. As per latest consumer trend, most people are moving into fast food business because of tough financial environment thus increasing business of organisations like Bellamy.

Figure: 1 increasing price chart

(Source: Redwiretimes.com, 2017)

Social

Social life is preliminary composed of the lifestyle, trends, culture and living habits of the people in nation. However, it has been found that the young generation people follows the western culture and for those business organisations also follows their strategies to grab their attention (Knott, 2015, p.1806). For the context of Bellamy Company, it has been observed that in order to satisfy the need of the customers for adhering infant food materials in order to urge social factors increasingly for good productivity.

However, the labour market is characterized with promotions that are based on income of the evaluated on the basis of annual average. On the contrary, Kolios, Read and Ioannou (2016, p.63) opined that the young generation is mainly focussing on the take away orders driven by the culture and trends of the society. This has caused effectiveness in the business of Bellamy as they have significantly restricted their business in the production of baby food and competition is less in this sector.

Technological

Proper application systems, blender, JBT technologies and automation technologies are required to enhance baby food production. Information communication technology has been a driving factor of economic and innovation growth of Australia. This drives the organizations to maintain high budget range on information technology since their main aim is reaching online supplier community and customers. As per Kolios et al. (2016, p.59), the most important technological factors that is essential for the increasing productivity of the business organisation is the need of increasing connectivity and social marketing facilities. Increasing connectivity improves knowledge for production of baby food items and social marketing helps in exploring business operations.

Technology is assisting in modifying the delivery process of food to customers that allows cost effectiveness, competence in pricing and online shopping. This has cause a rise in burden for different companies that are trying to match themselves with the up gradation of technology. However, in the context of Bellamy Company, it is essential to produce good food products for infants for their development and healthy growth and therefore organisations need proper nutrients, processing applications and authentic products. Pestle et al. (2014, p.44) informed that customers do not compromise with the quality of food when it comes to baby products. Hence, Bellamy has chosen to upgrade them as per the technological advancements of the country in order to produce high quality infant formula milk.

Legal

In the perspective of OECD, on aspects of market entry hindrances and foreign investment, Australia ranks the least among the other OECD nations. In addition to this, Sakas et al. (2014, p.187) opined that certain regulatory and business settings are required to develop the industrial growth of organisations like Bellamy Company. There are several jurisdictions prevalent in the country related to the misuse or low quality production of food especially when it comes to the matter of baby food or milk. New entrants as well as existing organisations in Australian economy, are obliged to register with Australian Securities and Investments Commission (ASIC) in complying with Corporations Act, 2001 (Legislation.gov.au, 2017).

However, in this context E-commerce programming plays a vital role in developing the service quality of business organisations by introducing new policies in the year 1996. According to Zalengera et al. (2014, p.341) the legal acts that are necessary for maintaining business operations are transactions act 1999, intellectual property rights act 2015 and tax issues and amendments act 2014.

Environmental

Environmental factors are the most important part of generating good health and better lifestyle for people. As mentioned by Vestbo et al. (2013, p.367), in the context of producing baby food items for their growth and maintenance it is necessary to crosscheck the environmental provisions. For establishing business operations in Bellamy Company, it is necessary to be aware of anti pollution works which plays a great role in baby food productivity. In order to produce baby food products, there are inclusion of many things that should be kept in mind are proper nutrition, good and healthy food ingredients, original materials and good quality products. Sustainable consumption of various industrial products is a crucial environmental factor that is needed to be considered by Bellamy.

In addition to this, Australian government focuses on the minimal emission as well as waste production during manufacture of food in Australia. As per the government norms, companies need to make maximum utilisation of their resources in order to prolong a health waste management system. Emission control policies are also noted by the government order to provide a clean and healthy environment to the citizens.

GOODS

2007

2016

Fresh milk

$ 2.63

$ 2.81

Infant milk

$ 25.42

$ 56.06

Cheese

$ 3.89

$ 3.89

Hen eggs

$ 1.69

$ 1.69

Ordinary white breads

$ 1.21

$ 1.21

Table 1: Increasing price rates

(Source: Zalengera et al. 2014, p.335)

Thus, from the above macro analysis of the Australian food sector, a conclusion can be drawn as to what are the probable opportunities and threats Bellamy face otr might face in operating their organisation related to baby milk production.

VRIO analysis

Valuable

The valuable products that are necessary for baby food production are proper nutrition, organic healthy food items including iron and hygienic components of food (Zalengera et al. 2014, p.335). In this context, Australia has made its country authentic in order to provide valuable products by implementing maximum resource materials that are required for good production. Food items that are rich in healthy food category are shortlisted in this context to make it more valuable and authentic. Stark (2014, p.10) said that the price rates of valuable food items of baby food products should be maintained at reasonable price so that it becomes affordable for all economic classes. Price is not a much important factor in Australia as it is a developed country. However, the preliminary need for Bellamy is to maintain high standard of production of baby milk that is rich in all necessary proteins and vitamins required for an infant. The resources of baby food products are also expensive however, resources include, dairy products pasteurised products and infant cereals. Due to these issues identified from above discussion, it has made Bellamy Company influenced to achieve their success by selling good food products for attracting large number of customers.

Rare

Bellamy Company has innovative methods for preparing baby food products which are different from others such as this company produces its products with high efficiency and taste. Andreeva and Kianto (2016, p.8) opined that baby food products are very limited and rare as it is in high need for the babies as well as requires much rare high quality resources to produce the food product. In this case, Bellamy Company produces its products through susie burrell’s cheesy vegetable pikelets in order to make it delicious, stuffed tomatoes for new taste, green pesto for healthy habits and fresh vegetables and fruits. Competitors of Bellamy like Blackmore and A2M are not been able to produce such high quality baby food with the usage of the above mentioned rare resources. In this way, baby food products of Bellany are different from other competitors and they are gaining competitive advantage in the Australian market over the other rival companies.

Inimitable

It has been found that the products that are made by Bellamy Company cannot be imitated easily as it produces its products with high potentiality and efficiency and they also use a formula ADH and DHA for their production and that cannot be easily imitated. Competitors of Bellamy in the Australian market are not been able to gather information about the rare resources used by the company as mentioned above as well as they are not being able to cope up with the affordable price that Bellamy is offering in the market. Thus, it is very difficult to imitate the products of Bellamy Company as it rich in high resources which help in better growth of baby such as cereals, stuffed vegetables and fresh fruits. As per Booth (2015, p.55), to achieve competitive advantage Bellamy Company should minutely focus on its productivity and also enhance their resources for increasing high reputation in the market than the competitors.

PRODUCTS

DUMAX DULAC

NESTLE

APTAMIL

FRISALAC

ENFAMIL

DHA (mg)

18.3

10.4

17

9.6

13.1

ARA (mg)

18.3

10.4

17

9.6

26

ADH (g)

129.4

80.4

57.6

70.9

54.1

OMEGA 6 (mg)

1.5

0.73

0.67

0.51

0.69

PREBIOTICS (g)

0

0

0.98

0.47

0.23

Table 2: Infant formula

(Source: Knott, 2015, p.1806)

Organised

The existing management of Bellamy Company can achieve all the success in this regard by maintaining high resources and high productivity senses for baby food production. As per Eden and Ackermann (2013, p.67), it is necessary for an organisation to incorporate all the positive factors of manufacturing a product, making it valuable, rare, inimitable as well as organised in order to make it highly effective and potentiality in existing management system. Change in processes as well as management system is always welcomed, therefore, a change in management system of Bellamy Company is required in order to make it more specific and authentic.

Recommendations

  • Bellamy needs to incorporate sufficient waste management system in their organisation in order to reduce waste production
  • The company can implement the idea of recycling of waste products.
  • Bellamy is not subjected to enough usage of technology in their organisation that has caused immense pressure on workers. Use of advanced technology can help them in reducing labour pressure as well as make the production time effective.

Conclusion

It has been analysed that Strategic management is a process of formulating and implementing goals in order to achieve success. Furthermore, it has also been discussed above about the systems and procedures of preparing baby milk products in order to make it distinctive from other competitors’ of Bellamy Company. Hence, in order to maintain proper health of the children and infants it is necessary to provide good and healthy food items for their proper growth and development.

References

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Bellamysorganic.com.au, (2017) Bellamy Organic Food Products 2017, Available from [Accessed on 16 Aug 2017]

Booth, S.A.,(2015). Crisis management strategy: Competition and change in modern enterprises. London: Routledge.

Chen, F. and Kodono, Y., (2014). Fuzzy VRIO and SWOT Analysis of Chery Automobile. Journal of Advanced Computational Intelligence and Intelligent Informatics, 18(3), pp.429-434.

Eden, C. and Ackermann, F., (2013). Making strategy: The journey of strategic management. London: Sage.

Hill, C.W., Jones, G.R. and Schilling, M.A., (2014). Strategic management theory: an integrated approach. London: Cengage Learning.

Islam, F.R. and Mamun, K.A.,(2017). Possibilities and Challenges of Implementing Renewable Energy in the Light of PESTLE & SWOT Analyses for Island Countries. In Smart Energy Grid Design for Island Countries, 74(2), pp. 1-19.

Knott, P.J.,(2015). Does VRIO help managers evaluate a firm’s resources?. Management Decision, 53(8), pp.1806-1822.

Kolios, A., Read, G. and Ioannou, A.,(2016). Application of multi-criteria decision-making to risk prioritisation in tidal energy developments. International Journal of Sustainable Energy, 35(1), pp.59-74.

Pestle, W.J., Hubbe, A., Pourmand, A., Arienzo, M., Swart, P., Sharifi, A. and Peterson, L.,(2014). Multi-Proxy Elemental and Isotopic Analysis of Toxodon Sp. Dental Enamel: Climate, Diet, Growth, and Mobility. The Paleontological Society Special Publications, 13, pp.44-49.

Redwiretimes.com (2017) Increasing Price Rates 2017, Available from [Accessed on 16 Aug 2017]

Sakas, D., Vlachos, D. and Nasiopoulos, D.,(2014). Modelling strategic management for the development of competitive advantage, based on technology. Journal of Systems and Information Technology, 16(3), pp.187-209.

Sheng, C.C. and Kodono, Y.,(2014), December. The management strategy of master kong based on fuzzy VRIO analysis. In Soft Computing and Intelligent Systems (SCIS),(2014) Joint 7th International Conference on and Advanced Intelligent Systems (ISIS), 15th International Symposium on, pp. 1382-1385.

Simon, D., Fischbach, K. and Schoder, D.,(2014). Enterprise architecture management and its role in corporate strategic management. Information Systems and e-Business Management, 12(1), pp.5-42.

Stark, J.,(2015). Product lifecycle management. In Product Lifecycle Management , pp. 1-29.

Vestbo, J., Hurd, S.S., Agust?, A.G., Jones, P.W., Vogelmeier, C., Anzueto, A., Barnes, P.J., Fabbri, L.M., Martinez, F.J., Nishimura, M. and Stockley, R.A.,(2013). Global strategy for the diagnosis, management, and prevention of chronic obstructive pulmonary disease: GOLD executive summary. American journal of respiratory and critical care medicine, 187(4), pp.347-365.

Zalengera, C., Blanchard, R.E., Eames, P.C., Juma, A.M., Chitawo, M.L. and Gondwe, K.T.,(2014). Overview of the Malawi energy situation and A PESTLE analysis for sustainable development of renewable energy. Renewable and Sustainable Energy Reviews, 38, pp.335-347.

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