Acquisition of weetabix by post holding

1 Stakeholder analysis……………………………………………………. 0 External analysis ………………………………………………………… 7 3. 1 PESTEL analysis …………………………………………………………. 1 Political ……………………………………………………………………. 2 Economic……………………………………………………………. 0 Conclusion and recommendation………………………. 15 References…………………………………………………………………… 17 1. 0 Introduction Due to increased globalization and well-established technologies, most of the companies are the world are nowadays faced with competition. In order to cope with the situations firms, need to be more agile and fostering their growth through smart strategies which will make them relevant. Most of the firms have embarked on new acquisitions, venturing into new markets and specialization which will assist them in consolidating their share of the market. The continuity of the business will require the objectives of strategic positioning. The mission and vision of the company’s position in the future inform the choices and the strategies which are incorporated by the company towards achieving their objective.

For this reason, it should then make one of the companies more competitive than the competitors. An important contributor in the strategic positioning and knowledge is Michale porter who described the competitive strategy genetic which he claimed to be fit for the incorporation by the company to achieve competitive advantage. Generic strategies, according to Michel porter (1980), firms will have a cost leadership in which they will put their prices lower than those of the rivals, focus and provide differentiated products. In this case, the model assumes competitive advantage in relation to differentiation or cost advantage which is contained in four quadrants with eight possible strategies which are defined by perceived added value and the axes of the price. This, when presented graphically, means that with increasing price a consumer expects a value addition.

in reference to Rogers (2017) with regards to bowman’s model, Weetabix has been in the forefront in increasing the value of the company’s products for the consumer’s part by establishing peculiar products which will meet the requirements of their breakfast and also be assisting in suiting their lifestyle (Williamson 2016). This is the reason which has made Weetabix be an outstanding rival among the breakfast and cereal market. In 2014, at Go, the starting of breakfast is a significant example of adding value to fit the lifestyle of clients who are busy and who cannot make their own breakfast in the morning and this is also coupled with the product content of being rich in protein. These are, for instance, shareholders, employees, investors, and shareholders while the external stakeholders are not involved in the running of the business but have vested interests with the company.

These include the general public, suppliers, and regulators. By acquiring Weetabix, post holdings different concerns will be raised by the stakeholders. taking into consideration the internal stakeholders, post holdings company is more concerned about the price of the products whilst the stakeholders in Weetabix will be more concerned about reaping high on the output. The concerns of the employees will be their job security, salary pegs, and transfers that may differ within these two companies. 1 PESTEL Analysis. 1 Political. Post holdings limited is an American company. On the other hand, Weetabix is a UK company which have followed the employment and labor laws in the United Kingdom. Minimum wages, labor laws, legal employment ages, income taxes differ from a country to a country.

3 Social In terms of market share, Weetabix is second to Kelloggs which are both the trusted UK breakfast brands. Nevertheless, the cereal market share is decreasing in the UK and this is according to Williams (2015). This could as well be offset by the united states market which has a leading market in cereal breakfast. This is a significant social consideration since the preference and culture of breakfast is a beneficial strategy to be considered. Wrap and go breakfast markets will offer competition to the cereal breakfast. Through the internet, technology has assisted e-commerce. This is a great asset during the acquisition and after the acquisition which will enable the transactions and communication and will reduce the traveling hours and costs associated with the traveling.

5 Environmental. When it comes to sustaining the environment Weetabix has been on the forefront. Due to this, the company commits, according to the company’s website, the what for farmers in Burton Latimer, Northamptonshire. Fig. 3 Michael Porter's Five Forces (New York: Free Press, 1985). 1 Industry (competitive) rivalry This competitive force consists of strength and number rivals in a particular industry. An industry is said to be ineffective if there are a lot of producers offering undifferentiated products and there exists an exit barrier. These rivals will often target the same consumer. Retailers and chain stores are regarded as the main outlets or breakfast cereals and they will be dependent on the single breakfast cereal. Customers, in this case, are price sensitive because of the wide variety of choices.

4 Threat of new entrants This is the force which represents otherwise or the ease for new entrants in the market. This could be dictated by the cost of capitalization gain market share, government policies and the ability to edge out existing brands. According to many people, it is a low threat to the industry because of o existence of established brands that will hold consumer loyalty and market shares. Though Weetabix has aimed at producing food for the Chinese markets besides producing goods which will add value to the consumer’s satisfaction. Despite all these undertakings, post holdings limited will have to negotiate for favorable trade with the European Union however, it may be affected by Brexit and thus will affect the marketing of their products in the United Kingdom.

The firm also has an objective of changing the preferences and taste which would answer the increasing traditional family and pack- and go breakfast. An innovation which may allow clients to be enjoying both the Weetabix as well as those of pack-and –go will help post holding in innovation development that will also assist in changing tastes and preferences. In order to reduce the supplier bargaining force, leverage production in order to increase profitability. Chinese FDI in Europe and Germany: Preparing for a new era of Chinese capital.  Mercator Institute for China Studies and Rhodium Group. Keulertz, M. , & Woertz, E. 2 States as Actors in International Agro-Investments. Chinese Foreign Direct Investment in the EU. In CESifo Forum (Vol. 19, No. 4, p. Institut für Wirtschaftsforschung (Ifo).