Evaluating Dusty Knuckle Market Position and Strategic Growth Case Study

Task 1: Part 1

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Introduction: Evaluating Dusty Knuckle’s Market Position and Strategic Growth

Dusty Knuckle is one of the leading bakeries and cafes located in London United Kingdom. The company provides freshly baked food to different places such as restaurants, shops and cafes. The revenue f the company is enough to boost smooth production and better consumer service to the people of London. The firm has a single distribution channel known by the Dalton site original home and the headquarter is located at Haringey at Green Lanes site. The sales and net profit of the company are analyzed below for better production in future. The competition in the industry is high although it maintains its legacy by providing dynamic services in different sectors that help to leverage the economy of the organization. Porter's five forces have been analysed to discuss the company's strategic factor that helps to boost the company's performance in future and gains a competitive advantage in the market. The impact of the budget on social, economic, political, legal, technological and environmental factors of the company has been analysed and depicted.

Strategic Framework of the Company

The company had to set a strategic framework to identify the relevant problems that behold the organization's success and so Porter's five forces and 3 C's has been analysed to discuss the financial crisis and upliftment of the company.

Porter's five forces

Table 1: Porter’s Five Forces

Porter’s five forces have been analysed above indication the top competitors of the firm in the market that has huge loss in terms of finance to the company. The company has a 29% rival in the share market located in North London followed by third and fourth rivals fixed at 7 and 2 per cent respectively. The new threats of entrants for the baked company have analysed and concluded that similar products and types of services B2B and B2C are being provided by the competitors at very low costs. This gradually increases the bargaining powers of the organization leading to less amount of customer flow in the organization. The selling of pastries online was discontinued as the organization faces a loss in accessing online delivery to the customer due to high pricing in the delivery fee. The firm had less number of suppliers with a weak supply chain that put the company to buy their raw materials at high prices leading to their low profitable margin. The different measures have been analysed to increase the purchasing power of suppliers.

The company's gross profit financial year ended on 31 March 2022

The company have two types of business such as retail which provide dining spaces for the customers directly and wholesale business is also provided by delivering services to nearby restaurants and shops. The unsustainable cost-to-revenue ratio during the last year the company had to close the online sales of pastries. However, the company still maintains the website to take pre-orders from customers and provides takeaway services. This is a note that the restaurant sales aremuch less than the Dalston bakery direct sales. The Bakery sales are less than the dining sales that offer major products such as pizza. The company profit margin is 70.2 per cent and so the customer low is less and this can affect the net revenue in future. The other competitors have high overturns than the selected organization. So, it is recommended that the sales value of the products and services need to reduce by the organization to attract a large base of customers and increase the overall revenue of the firm despite losing the marginal profit of the organization. The supply chain needs to be strong enough with a great number of suppliers so the cost of the raw materials is low. Decreasing the rivals in the market by increasing the inflation rate helps to foster the business and increase the finance of the organization.

Feasibility of the profit target in the current environment

The next sales target of the organization is about 3500000 European dollars and feasibility is described by pestle analysis.

PESTLE analysis

Table 2: PESTLE Analysis

Conclusion

The chosen organization porter five forces and pestle analyzes has been done and it is infer the organization aims can be fulfill and revenue can be generated following the recommendations. The organization environmental and legal factors draw positive impact and the political and economic shows negative impact. Social factors affect moderately on the organization.

Task 1: Part 2

Oduntol UK Limited is a private company that seems to operate in the healthcare sector. The company specializes in providing a range of dental products and services that might include dental equipment, consumables and laboratory supplies. The company is committed to serving customers with high-quality service in order to meet the needs of the people. The services include dental practices, hospital engagements and universities. The company also encourages a team of professionals who are liable to work closely with the customers in order to identify their needs and pReferences based on that they will be treated accordingly.

A, B. Overview of the market entry framework

The market entry framework states the ways through which a company enters the market. It considers the arrival on the basis of entering into a new market or else introducing a new product in the existing market. There is further assessing of capabilities, opportunities and challenges in order to have marketing analysis for the new entrant. If the market entry of the company is based on introducing new products into the market then it can be said that there is a need to have an internal and external analysis of the location. As per the case study, Oduntol is investing in food and drink retailing in the existing market and thereby needs to have external analysis for the launch of new products into the market. Porter's five forces analysis will be helpful in analysing the opportunities and challenges for the company launching new products in the existing market.

C. Porter’s five forces analysis

• Threat to new entrants: There can be threats of new entrants as they will enter the market with full research and mitigation measures for the risks that have been identified by them. In order to sustain itself in the market Oduntol needs to use its market position for the new product launch.
• Power of buyers: The power of buyers will be more as they will have access to buying a new product of their choice.
• Power of suppliers: The power of suppliers will be more as they will have access to providing raw materials to the company at the time of requirement. The supply will be provided by the suppliers if they seek that there are chances of getting a return on investment.
• The threat of substitutes: Threat to substitutes will be there as there are many brands leading in the supply of food and drinks. In comparison to those the power of Oduntol will lack and hence, requires mitigation measures for facing the risks that will be associated with the risk factors.
• Competitive rivalry: Competitive rivalry will be at a high edge as entering into the existing market can have several benefits for the existing company but also has significant challenges in terms of competitive rivalry. There is a need to implement risk management strategies with innovation measures in order to have access to the market.

D. i. calculates the projected percentage market growth rate (revenue) between 2020 and 2021 and provides an estimate of the projected growth rate between 2021 and 2025.

Answer: Total revenue in the year 2021 = £112 billion

Revenue in the year 2020 is £104.7bnless than in 2021

Therefore, the projected percentage market growth rate between 2020 and 2021 will be

(Ending value/beginning value)^(1/n)-1*100

= (112/104.7) ^(1/1)-1*100

= (1.07-1)*100

= 7%

Therefore, the projected growth rate between the years 2021 and 2025 is

(Ending value/beginning value)^(1/n)-1*100

= (230/112) ^(1/4)-1*100

= (1.718-1)*100 = 71.8%

ii. Calculate the expected annual growth rate (CAGR (2021 – 2025) between 2021 and 2025

Answer: CAGR = (Ending value/beginning value) ^(1/n)-1

Beginning value= 182.4/ ((1+CAGR)⁴

=> (1+CAGR) ⁴= 182.4

=> 1+CAGR = (182.4) ^(1/4)

=> 1+CAGR = 1.153

=> CAGR = 0.153 or 15.3%

E. what percentage should revenue grow each year to reach the target?

Oduntol had the plan to leverage its revenue by 250000 Euros dollars in the next three years by entering into a new era of the market of processing packaged food materials. The growth of revenue as a percentage is calculated by providing basic formula such as subtracting the revenue of the previous year from the current year and then dividing the resulting amount by the previous year's revenue.

Formula = (750000-500000)/ 500000

=250000\500000

=2/5*100= 40 %

Growth per year =40 / 3 = 13.30%

The growth revenue per year is 13.30 per cent to reach the target sales of 750000 by the year 2025

Conclusion

Oduntol analysis has been done and the inferences is drawn that it can leverage the targeted economy by the coming years. The packaged food materials serve to boost the economy of the organization in future.

Part 2: Task 1

Table 1

Analysis: The above table states that the validation of the proportion using the loyal app with the response of NO for 200 frequencies is equal to 69.4% and the valid percentage is the same as the per cent. The number of frequencies with a Yes response is 88 whereby the per cent is 30.6 per cent and the valid per cent is the same as a per cent. This implies that the number of customers engaging in the loyalty program is less than the number of non-interested candidates. This implies that there is a lack of awareness.

Table 2

Analysis: The above table states that the proportion for using the loyalty app has a response with a NO is 200 whereby its 2-tailed exact signature is 0.001 and the response with YES is 88 whereby its 2-tailed exact signature is 0.001 again. Therefore, the probability of the success of this binomial test is positive as p is equal to p (p=p).

Table 3

Analysis: The above table shows there is a Pearson chi-square value is 49.709 and df is 1 with an asymptotic significance <0.001. The number of valid cases is 288. Stating the symmetric measures it can be said that nominal by nominal phi and Cramer's V values are .415 and the approximate significance is <0.001.

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