Microsoft PowerPoint - SM AssignB Presentation Draft v5 2010521

7/31/2019 Microsoft PowerPoint - SM AssignB Presentation Draft v5 2010521

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MBA Semester 2 : Strategic

Management Assignment B - GroupPresentation

Group Members

SID: 1221278

SID: 1163321

SID: 1129870

Module Code: BC415041S / AS1 / 2011/2 /011


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2

Topic: Fraser and Neave - BusinessLevel Strategy for Food & Beverage

Segment


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Agenda

Introduction

Analysis

Conclusion & Recommendations


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Fraser & Neave

Company Overview

Founded in Singapore by John Fraser & David Neave in 1883

Started with printing & diversified to aerated water, F&B &

Properties

Conglomerate listed in SGX & headquartered in Singapore 13000 employees in 20 countries

USD 5.69B Revenue in Fiscal 2011 with USD 584M profit

Current Chairman : Lee Hsien Yang


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Fraser & Neave (F&N)

Food & Beverage BusinessAsia Pacific Breweries Limited

F&N Holdings Bhd

F&N Foods Pte Ltd

Soft Drinks

Breweries

Dairies

Glass Containers


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History of F&N

Founded in 1883

Printing to Aerated water business

Listed in SGX

Diversification

Brewing business in 1931 Dairies in 1959

Property in 1990

Publishing & Printing in 2000

JV with Heinekan (Holland) in 1931 for brewing

Malaysian Breweries -> Asia Pacifc Beweries in 1990

Acquired majority control of Time Publishing in 2000


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History of F&N

Financial Trend


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Fiscal Year 2011 Financials


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Awards


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Vision & Mission

Vision - To be a world-class multinational

enterprise with an Asian base, providing superiorreturns with a focus on the Food & Beverage,

Properties and Publishing & Printing businesses.

Mission - To be a world-class multinational

enterprise providing superior returns to our

shareholders, excellent value for our customers anda rewarding career for our employees.


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Agenda

Introduction

Analysis



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New

Entrants

Suppliers

Substitutes

Power of Suppliers - Strong

Direct negotiation withsuppliers

Abundance of supply in the

market for inputs

Barriers to Entry - Low Low Barriers to Entry

(Except Regulation)

Power of Buyers -Moderate

Main distribution channels

(supermarkets, retail chains,vending machines and

convenience stores.

Buyers

Rivalry Amongst Competitors

Growth Prospects Vary By

Markets

Fast respond to consumer

trends and demands

Availability of

Substitutes

Several Substitutes(Soft drinks, Beers, etc)

Porters 5 Forces - Assessing F&B Industry

Attractiveness

Industry

Competitors

Intensity of

Rivalry

Assets Are Product

Quality, champion

brands Intense Rivalry of productsavailable in the vending

Machines

Competitive Price


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SWOT Analysis F&N

Well known brand

Strong Financial performance Singapore based (next food hub)

Customer Loyalty

Strong portfolio on Non

carbonated drinks

Health concerns that affect mainly

the soft drinks market Some of the brands are not

popular

Venture in to new emerging

markets

Leverage the Singapore Brand

New strategies of reformulation

for more natural drinks

Many successful brands to pursue

Competition From Coke, Pepsi &

local brands in other countries

Currency fluctuations

Geopolitical Adversities

Regulations

Opportunities Threats

Strengths Weaknesses


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F&Ns Four Criteria of

Sustainable CompetitiveAdvantages

2. Rare Capabilities Execute Dual Strategy to Neutralize Threats

or Exploits Opportunities

1. Valuable Capabilities Create Business Ecosystems Rather

Than Value Chains Which Are Linear

3. Costly-To-Imitate Capabilities Rivals Cant Easily Copy

People & Organizational Culture ?

4. Non-Substitutable Capabilities Fostering Both Centralized &

Decentralized Innovation ?


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F&Ns Focus areas

Management Development Programme

(MDP)

Quality Team

Dedicated team to create newProducts & Services every year

Innovation


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The three levels of strategy


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17

Business-level

Strategy

Which Good or

Service to Offer

Customers?

How toManufacture or

Create it?

How to

Distribute it?

Business-level Strategy Key Issues


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Types of Business-Level Strategy

Each Business-Level Strategy Involves aParticular Competitive Scope:

Broad Target (Industry Wide)

Narrow Target (Particular SegmentOnly)


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Business - Level: Porters Three Generic

Strategies

Overall Cost

LeadershipDifferentiation

Focus

Uniqueness Perceived ByThe Customer

Low Cost Position

Competitive Advantage

Strate

gicTarget

Industry Wide

Particular

Segment Only


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Porters Three GenericStrategies

Overall CostLeadership

Low-Cost-PositionRelative to a FirmsPeers

Manage Relationships Throughout the

Entire Value Chain


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5-21

Porters Three Generic Strategies(contd.)

Differentiation

Create Products and/or Services That areUnique and Valued

Non-priceAttributes For WhichCustomers Will Pay aPremium


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Narrow Product Lines, Buyer Segments,

or TargetedGeographic Markets

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Porters Three Generic Strategiescontd.

FocusStrategy

AttainAdvantages Either ThroughDifferentiation or Cost Leadership


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Integrated Cost Leadership/Differentiation

Strategy

Uniqueness Perceived ByThe Customer Low Cost Position

Competitive Advantage

Strate

gicTarget

Industry Wide

Particular

Segment Only

Overall Cost

LeadershipDifferentiation

Focus

Integrated Cost

Leadership/DifferentiationStrategy


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Combination Strategies: IntegratingOverall Low Cost and Differentiation

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How Firms Can Effectively Combine

the Generic Strategies of Overall CostLeadership and Differentiation.?


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Invests Heavily InPeople

EverythingBehind The Scenes IsSubject ToRigorous Control

A Leading F&B Provider in Asia


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F&N spends considerably in the following

areas:

Buying New Aircraft

Training

Marketing

Innovation

Dedicated funding for


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F&Ns Pursuit of Multiple Value

Disciplines

Product

Leadership

Operational

Excellence CustomerIntimacy

F&NsStrategy


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Key Drivers of F&Ns OperationalExcellence

Operational

Excellence5. Culture 1. Products

4. Comparative

Advantage2. Labor Costs

3. Productivity


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What Factors Can Explain F&Ns

Success?

Products

Incentives

Marketing

Owns

Breweries

TechnologyDeployment

Internal

Policies

Strategy

Consistent Performance

Top Management

Related

Operations Distribution

Comparative

Advantage

Legal

Systems

Unions

Low Costs Regulation

Cash Flow

Opportunistic

Purchasing


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Forces Shaping F&Ns Future

Strategy

FutureStrategy

Enhance Operations

Continued

Opportunities

EnhanceProducts/Services

Maintain Low Costs

Acquire leading players in

emerging countries & expand

Greater Use of Technology

Alliances

Extend Reach

Reduce Geographic

Dependence


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Agenda

Introduction

Analysis



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Conclusions & Recommendations

Lowering the cost of products while

maintaining quality

Form Joint Ventures to enter in to untapped

markets with huge potential, starting with

African countries.

Knowledge Management

More distribution channels for easy access

Continuous innovation


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Documents

Microsoft PowerPoint - SM AssignB Presentation Draft v5 2010521