HP Strategic Analysis Flashcards
What is HP’s purpose?
- Exists to provide high quality packaged bread to retailers across Keeland
- No.1 choice for packaged and sliced bread in Keeland
What is HP’s strategy?
- Competes through brand strength and reputation
- Operational efficiency, control cost and innovation
- Strong retailer relationships
What are HP’s values?
- Commitment to quality and consistency, sustainability and innovation
- Environmentally conscious - carbon neutral by 2040
What are HP’s policies?
Aligns with values - focus on ethical sourcing and sustainability in supply chain
What are HP’s inferred objectives?
- Expand and maintain market leadership
- Enhance operational efficiency and innovation whilst maintaining stability
- Achieve carbon neutrality by 2040
What are some potential KPI’s for HP?
- Market share and revenue growth
- Profit margins
- Sustainability metrics
- Customer satisfaction and product quality measures
What if new strategies are recommended in the unseen?
- If they support CSFs, then support
- If they contradict CSFs, question
What are HP’s CSFs?
- Product innovation
- Sustainability leadership
- Brand recognition and loyalty
- Tech investment
- Strong logistics
How are stakeholders analysed in the exam?
- Consider new issues that relate to key stakeholders
- Use mendalows matrix, treat each stakeholders as a box
How should HP treat each stakeholder?
- LI/LP - End consumers - min interest
- HI/LP - Employees - keep informed
- HP/LI - Key suppliers, retailers, lenders - keep satisfied
- HP/HI - Owners, directors - Key players
What is the leadership and board structure of HP?
- Concentrated within senior management team
- No mention of independent directors/non-executive oversight
What is HP’s level of transparency and disclosure?
- Financial transparency is strong
- Stakeholder communication could improve
- Greater disclosures could be helpful
How does HP handle risk management and accountability?
- Family ownership involves possible conflicts of interest
- Opportunity to introduce internal audit/risk committee
How does HP handle ethical and sustainable governance?
- Strong commitment to sustainability
- Could formalise CSR initiatives
What are the key ethical and CSR issues for HP?
- Sustainability and environmental responsibility
- Ethical sourcing of raw materials
- Food safety and transparency
- Employee health and safety
- Employee wellbeing
- Marketing ethics and integrity - no false promises made
What are the political factors for HP to consider?
- Gov may offer subsidies to help sustainability
- Trade and tariffs may limit international expansion
- Public health laws may impact recipes
What are the economic factors for HP to consider?
- Brand as a staple makes consistent demand more likely
- Wheat price fluctuations huge risk
- Retailer pricing power a major force
What are the social factors for HP to consider?
- Health conscious consumers may increase demand for healthy bread
- Growing demand for artisan bakery
- Growing expectation of ethical and sustainable practices
What are the technological factors for HP to consider?
- Advances on automation and efficiency
- Advances in baking methods
- Supply chain and inventory optimisation (AI)
What are the environmental factors for HP to consider?
- Impact of global warming on crops
- Sustainable packaging is increasingly important for brand rep
What are the legal factors for HP to consider?
- Strict food safety regs can increase costs
- Labour laws and fair play compliance
- Environmental regs
What is HP’s product?
- Sliced and packaged bread/rolls
- Features - limited variety and flavour range
- Emphasis on quality ingredients and sustainability
What is HP’s price?
- Tiered pricing strategy - large retailers get lower prices (bulk discount)
- Competitive pricing strategy - small margins
- Some products have more premium prices (rustic)
What is HP’s promotion?
- Brand heritage and rep as a well established brand
- Website with key info - no mention of social media
- Some 3rd party media engagement
What is HP’s place?
- B2B - 80% to large retailers
- National reach
- No D2C
What is HP’s primary activities in the value chain?
- Inbound logistics - sustainable and strong relationships with limited no. of suppliers
- Operations - in house production using machines ensures high quality control and very high level of automation
- Outbound logistics - distro is direct to retailers and is entirely in house
- Marketing and selling - B2B model so strong major retailer relations, no obvs digital marketing presence
- After sales service - consistent quality and self life, no obvs customer support
What is HP’s supporting activities in the value chain?
- Firm infrastructure - family owned = stability, lack of independent oversight
- Tech development - investment in production efficiency and automation, slow investment in R+D for new products
- HR - high emphasis on employee motivation, large low-skilled workforce
- Procurement - sourcing high quality, local sustainable ingredients, relations with limited no. of suppliers
What must the strategy that a company develops do?
- Capitalises and builds upon strengths
- Overcome/mitigate weaknesses
- Acts on suitable opportunities
- Overcome/mitigate threats
What are HP’s strengths?
- Strong brand heritage
- Large market share
- Sustainability commitment
- Centralised production and in house distro
What are HP’s weaknesses?
- Reliance on major retailers
- Slow to expand into healthier breads
- No social media
- Low profit margins
What are HP’s opportunities?
- Sustainability as a competitive advantage
- Expand artisan range
- AI in distro and logistics
- Possible expansion into new markets (exporting?)
What are HP’s threats?
- Declining demand for packaged bread
- Rising raw material costs
- Economic downturns
- Own brand supermarket products
How can HP capitalise on its strengths?
- Promote sustainability more effectively in its marketing
- Review large retailer contracts for potential improvements
- Continue to invest in automation
How can HP overcome its weaknesses?
- Seek to increase no. of smaller retailers for better pricing power
- Innovate/adapt existing products
- Address products with lower profit margins by using efficiency/changing costing
How can HP take advantage of opportunities?
- AI driven logistics to improve distro costs
- Expand into new markets in surrounding countries
- More artisan style products
How can Hp deal with threats?
- Leverage convenience of sliced bread
- Explore re-negotiated, fixed price contracts with suppliers
- Explore providing own brand bread to supermarkets
