caseism

Gregg’s: Food on the GO Case Solution & Answer

Gregg’s: Food on the GO

Area 03: Internal Analysis

Financial Analysis

For understanding the internal performance and position of company, some calculations are to be done from the Annual report of Gregg’s 2020.

Ratio Analysis

The debt-to-equity ratio is greater in 2019 as compare to 2020. It means in the year 2020 the company pays the debt which is good for the company. In both years the current ratio is the same. The Quick ratio is high in 2019, it means the company’s own assets in 2019 more quickly compare to 2020 because of Pandemic. The Working capital, Total Asset Turnover and Gross Profit Margin of the company is higher in 2019, which is good for the Gregg’s which reduce in 2020 because the Pandemic completely disturb the market and business shows losses in the year of 2020.

Graphically Representation of Sales and Gross profit

As shown in the graph, the sales and the gross profits of the company are higher in 2019 and it decreases in 2020 because of the Pandemic in the entire world. The company faces many challenges in the time of Pandemic and now again the company grows and making plans for increasing sales and revenue by expanding more business.

Graphically Representation of Assets, Liabilities and Equity

In the 2019 the Total Assets, Total Liabilities and Total Equity of the company is high because company was growing constantly and expanding its markets. In 2020 the company shows decrease in assets, liabilities and equity because the Pandemic stops the operations of company for a limited time.

Synergy

In the start of 1972, the expansion of the business start and the Greggs moves towards his vision. In 1972, 1974 and 1976, Greggs moves for acquisition with Glasgow, Leeds and London Bowketts respectively. These initial acquisitions increase the value and worth of the company by expanding the products and markets. In the year 1994, the Greggs Company gain the chain of oven bakers’ shops from the Allied bakeries.

Benefits of Synergy

  • With the acquisition, the Revenue of the company increases, which increases the working capital, and the company moves through other opportunities like more expansion of business on global level.
  • The Manufacturing and transportation costs also reduce by acquisition.
  • With the acquisition, the company gains more talented employees with experience in the food industry.
  • With the Acquisition of the risk also decreases by portfolio.
  • Increase in intellectual property by acquisition because Gregg’s and other companies have different property which together generate more efficiency.

SWOT Analysis

Now the question 01 is concluded by giving the SWOT Analysis of the Company.

Strengths

The company has some many strengths. The company has competitive advantage, strong market share and brand recognition. The portfolio of the company is also very good. The company arranges extensive training agendas for the employees and the company done the business in a whole Nation of United kingdom.

Weaknesses

The company has few weaknesses which they try to overcome. The prime weakness of the company is the less variety of products and the very exclusive training agendas. On both these weaknesses, the company is working.

Opportunities

The current opportunity for the company is to increase the Number of products and also increase the business through international level.

Threats

The major threat which company face was Pandemic situation but now the company has the threat of changing government policies which increase the rates of raw materials and the threat of competitors because they offer more variety of products.

Question: 02

Area 01: Strategic Intent

For making the New Strategy Statement more persuasive, the comprehensive strategy statement is to be used.

Comprehensive Strategy Statement

A strategy statement is basically a statement which makes a linkage between top management to bottom line management. The whole communication regarding operations of business is discussed through the strategy statement. A comprehensive Strategy Statement comprises three components. Competitive Edge, Organizational Objectives and Scope of business. All these components are equally important for designing a strong strategy statement, so all three components must be expressed clearly. A comprehensive strategy helps the organization and Employees to better understand the roles and tasks of them regarding growing the organization.

Competitive Edge

The competitive edge is the heart of the strategy statement. Competitive advantage makes differentiation between Gregg’s company and other competitors. Competitive advantage states why the customers purchase the product from our company rather than competitors. Through Competitive Advantage, the company offer superior Value Propositions. The Competitive edge of the company must match the customers’ expectations of value proposition from the product.

Strategic Aim

The strategic aim is a detailed aim which is focused for a few years to attain the organizational goals. In strategic aim, the outline is to draw about organization that at what place we are today and at what place we want to reach in the future. In strategic aim, the vision statement, mission statement, values and policies of the organization are to be involved. The aim of the organization must be smart means it should be clear, attainable, measurable and time limited. As the new strategy Statement is designed for the future of Gregg’s it is necessary to understand the worth of stockholders and focus on how to increase the profitability for stack holders.

Scope of Business

For defining business, the company has arranged three dimensions in scope which is target market, market segmentation and whole integration. Through this arrangement, the company easily follows a map for whom we should target and what’s our product is offering for the market. This strategy also helps employees to reduce wastage of raw material during bakery products production.

Comparison with the Existing Strategy

The new strategy statement is focused on customer’s satisfaction and stakeholders’ profitability by understanding the growth of a company by stakeholders’ investment, whereas the existing strategy was only oriented towards the customers. In the new strategy we well defined business that the company must introduce additional products and target those products to a particular segment of market which generates more profit. In the new strategy, the aim of the organization is updated through increase values in vision and mission statement whereas existing strategy follows a starting point vision and mission without adding other values in it.

Things Need to be Changed

The company must increase the product portfolio because no doubt the products of the Gregg’s have high quality and freshness, but the variety is very limited. The customers want more products from the Gregg’s bakers for satisfying their utility. The company also needs to think about market expansion on worldwide because the brand image of the company is strong and the people of other countries also like to consume the products of Gregg’s…..

This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.

Share This

LOOK FOR A FREE CASE STUDY SOLUTION

JUST REGISTER NOW AND GET 50% OFF ON EACH CASE STUDY