PRUDENCE AND AUDACITY: THE HOUSE OF BERETTA Case Solution & Answer

PRUDENCE AND AUDACITY: THE HOUSE OF BERETTA Case Solution

Weakness

      As the company has several strengths it also has some weaknesses which also hinders the company to perform its operations successfully. The main weakness of the company is that the company is bearing a high overall operational cost which hits it overall margins. The reason behind this increased cost is that the company is performing all the activities in house and even those activities which are not the core competencies of Beretta. Moreover, the American market represents almost 75% of the overall revenue and the tax rate is very high in this region therefore, the company is paying a very high amount of tax which also disturbs its capital structure.

            Furthermore, the company aggressively  pursues innovation and process improvement which incurs a very high cost and the company is still stick with the same strategy which also increases its overall cost. Finally from the internal analysis it can be said that the company has more strengths than weaknesses. Therefore, it can be summarized that the company can easily overcome its weaknesses while using its strengths.

Organizational Culture

            The organizational culture of Beretta group is quite impressive since, the company welcome every opportunity and focuses on improvement and innovation in every key area of the company. Moreover, the culture indicates that the company is following culture which welcomes innovation and new ideas. However, this culture was founded by the first owner of the company who founded the company when he first appreciated the idea of an employee to innovate the production facility and changed a bit process in the same area. Moreover, the first owner passed this trend to his two sons, who further continued the business and when one brother among them died the second one became the owner of the company. However, these two brothers didn’t left any legal heirs and therefore, the company was taken over by some of their relatives. Finally now the company is being ran by their legal heirs. Furthermore, it can be analyzed that the company is now following a trend which was followed by the founders of the company. However, this same trend is running in the company nowadays but with a different style. The main difference is that previously the employees were directly permitted to submit their ideas but now the company wants them to make sure that the idea will work or not by making a pilot test. Therefore, it can be summarized that the culture of the company is to welcome innovation and to adopt new and innovative ideas and hence, the company is said to be an innovator.

Another aspect of the company’s culture is that the firm aggressively focuses on its competitors and their moves while making sure that the company has a terrific strategy to overcome those competitive threats and if the company fails to do so and aggressively face competition by a single competitor the company tries to acquire that competitor. This diversification strategy allows the company to stay competent while making sure that it has the most innovative and advanced technology and business processes.

Tangible and Non Tangible Resources

            There are numerous resources which the company has in terms of tangible and intangible resources. The most solid and substantial tangible resources which the company has is its capital structure, strong backward and forwards channel allies. Moreover, the other tangible resource which the company has is itsmost advanced and innovative production facility. Furthermore, the company has tremendous production facility which is able to produce a variety of products ranging from a pocket pistol to a fully automatic machine gun. Therefore, it can be said that the company has numerous tangible resources which allows it to stay in the market………….

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