The business strategy used in Capilano Honey limited is essentially brand development which involves promoting the brand and creating a good name that att5act many consumers. The quality of their products is guaranteed and high. The company logo is highly recognizable to the consumers and this makes it easy for them to trace and buy their products. Recognisable and complex logos have major impacts on the way the business operates and the attraction it has on the consumers (Van Grinsven, and Das, 2016). The yellow label makes their products easily recognizable in the supermarket shelves. The company has also reduced their production costs which help them to have low prices for their products. The marketing strategy has also been unique as Capilano has repositioned their products as energy products for athletes and children. High innovation and diversification are also used in Capilano and it helps to attract a wider range of consumers. The profits generated in the company can be sustained in the future through continued innovation and marketing to sell to a wider range of the market. The main risks facing the business are threats of new entrants, increased competition and changing government policies. However, the future forecast is that it will have operations in more countries in the world and make higher profits as well as have a wider range of products.
Key Success Factors
The success factors are the ones that can lead to success in the business and it increases the ability to plan the future of the business. One of the key success factors is the human resources or the people that the business has employed. Capilano Honey Limited has a large number of employees who operate the business both locally and in the rest of the world. The strategic focus set by the management and the planning is also essential to the business. Suppliers have a major impact on the way the businesses operate. Capilano requires suppliers to get the materials they use in their production process. One of the advantages is that it leads to reduced costs of operation. When the supplier is consistent, it is possible to negotiate the prices and to ask for extended time to make payments. It can also help to have continued improvement needed to increase the performance of the business (Luo, Liu, Yang, Maksimov, and Hou, 2015). The company uses the strategy of ensuring that all suppliers are known and have a close relationship with the company. The other strategy to ensure success is that the company has ensured there is product leadership. The products of the company are branded to attract people from far and the leadership of the products is essential to the success of the company. The third one is differentiation and the company ensures that its products are unique in appearance and quality.
Key Risks in the Company
The risks that face Capilano Honey Limited are related to the nature of the business, the industry and the general business environment in Australia. The need to have a risk analysis is to help in setting up strategies to avoid and mitigate the risks (Aven, 2015). The use of information from past experiences and other companies helps to understand the risks that face the business. One of the risks is the changing government policies. Compliance risks are likely to arise if there are changes in government policies. Legal compliance battles are some of the major challenges that face international businesses (Kurer, 2015). The other risk is increased new entrants that have new and innovative products and production methods. The management in Capilano uses differentiation to minimize the risks posed by the new entrants and also invests more in research and development to get information on the changing tastes and preferences. The other risk is that the country's culture is changing and beekeepers may reduce in number. The increased innovation and technology have changed the farming methods and many people have opted for other types of farming and this will reduce the supply of honey. The strategy used by the company is supporting farmers and encouraging new ones to start the farming.
Future Forecasts of the Company
The company plans to increase its operations and to anticipate the changes likely to affect the business. The forecasting methods used include the Delphi technique, which compares questionnaires from different experts and subjective approach which allows people to make their predictions based on their feelings and personal judgments. The forecasts made are for the financial performance and industry changes. The main challenge in forecasting is the presence of invisible factors and barriers that reduce the effectiveness of the planning process (McLean, 2018). The business expects to have more diversification in the future, to increase the number of products they have. The plan is to use all available resources and chances to expand their operations and include new innovative products and services. The other one is to have higher profits and operations in more countries. The strategy used is more research and development activities and benchmark from other companies in the industry.
Aven, T., 2015. Risk analysis. John Wiley & Sons.
Kurer, P., 2015. Legal and Compliance Risk: A Strategic Response to a Rising Threat for Global Business. Oxford University Press.
Luo, Y., Liu, Y., Yang, Q., Maksimov, V. and Hou, J., 2015. Improving performance and reducing cost in buyer-supplier relationships: The role of justice in curtailing opportunism. Journal of Business Research, 68(3), pp.607-615.
McLean, M., 2018. Understanding your economy: Using analysis to guide local strategic planning. Routledge.
Van Grinsven, B., and Das, E., 2016. Logo design in marketing communications: Brand logo complexity moderates exposure effects on brand recognition and brand attitude. Journal of marketing communications, 22(3), pp.256-270.
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