Analysis of kerry group business and finance management
The report covers the Kerry Group Company exclusively. It studies the eternal environment by analyzing PEST of the company. Besides, the SWOT analysis of the company will provide valuable information that can leverage the process of decision making. Company reports, Secondary data such as economic books, reports, journals, and official government websites are used to gather the findings of the report. It is significant because it offers a detailed explanation of the business and finance environment, informing the decision made by the management. About Kerry group Company The shares for the company are traded publicly; thus, it is a multinational public limited company. According to the companies’ acts, the share of a public limited company can be traded in the stock exchange market or sold by the shareholders.
The company act guides the company in its operations. Because the company operates in a competitive environment, it has specialized in the provision of great taste and nutrients to its customers. The company has three different plants that are the manufacturing, technical and sales plant employing approximately 25,000 workers. PEST Analysis Political environment Kerry group operates in the environment with varying tax policies, safety laws, legislative bills, government stability and health. These factors are beyond the control of the company; therefore, they affect the whole economy. It is the responsibility of the company to adapt to the variant government environments (Rothaermel, 2017). On its own Kerry group cannot introduce new policies or reduce the taxes that influence the whole economy. Political instability, inadequate policies and high taxes affect the operations of the Kerry group in different regions.
Ranging from developing to developed countries inflation exchange, interest rates, credit available, GDP and gap between the rich and the poor continues to affect the Kerry group (Davis et al. According to the reported volatility of the currency, macro-economic and currency instability continues to impact business operations. According to Rothaermel (2017) Post, Brexit is unknown; therefore, the company continues to operate with uncertainty. The company is not sure what should be done toad pat to the market. Brexit poses a severe economic challenge to the company is one of the leading indicators of the changing economies. The array of 9 international culture also has a significant effect on the company. Some foods are specific to a particular culture; therefore, the company must provide a diet that will suit such lifestyles and maintain the brand.
By blending brand and culture, the company manages to establish the link because the company always focuses on the consumers. Kerry Group has grouped its customers into five different categories of youths, infants/toddlers, seniors, ageing and early adults. The products are doing well in the market as people have accepted them and have a positive message about the company (Kerrygroup, 2016). The feedbacks are essential in customizing the processes and improving services delivery to meet the needs of the clients (Rothaermel, 2017). Other technological factors affecting the company are demand for innovation, market intersection, enhancing food safety and health (Sterns, 2015). Legal environment Jenkins and Williamson (2015) the company should keep up with the act of courts because they vary from different countries. Having the company aware of legal provision can help the company ensure compliance.
Kerry group operates a model that ensures they are in compliant with all legal requirements. SWOT analysis is a prerequisite for effective decision making. Example of elements that form microenvironment is media, employees, shareholders, suppliers, competitors, media and customers. All these elements regularly interact with the business; therefore, their moves affect the company directly. By analyzing microenvironment, the company can position itself in the market and strategize a plan to acquire a broader market (Rothaermel, 2017). The SWOT analysis can determine the internal, external, present and future ability of the company because it is data-driven, fact-based and realistic. • Through the team of experts, the company has developed key success factors that enable successful entry into a new and existing market. The strategies of the company have proven to be successful as the company puts customers at the center of every operation.
• Kerry group have a fully dedicated customer care department that offers a customized response to all its customers without biasness. The company is always willing to respond queries to all the customers through the support team. • Kerry group team is highly qualified and up to the task assigned. • Low uptake of modern technology may affect the operations of the company is present and in future. The company lacks a research and development program on the latest technology. Technology is changing each day, and the company require technology to meet the current business and market demands. Technology is a prerequisite for cost-effective production • The company has a weak market branding and promotion strategies that are unclear to the customers. Kerry group requires a brand that will quickly create a uniqueness of the brand to the customers.
Technology offers cost-effective strategies implementation and better customer services. Kerry group can take up the advantages of new technologies to maintain a competitive advantage and acquire new markets. Technology is also essential in maximizing customer satisfaction. • The company can improve its performance by cutting the cost of expenditure on transport. Establishing new means of transportation for their products will lower the cost added by the value chain hence become the leader in the market price. Company will only require stores and sorting warehouses. This is a threat to the company physical assets and the future of the employee. • Climate change is a threat to the prices of products offered by the company because it uses climate-sensitive materials. In future, the effects of climate change cost of primary raw materials will escalate due to unavailability.
• Currency fluctuation is a threat in different countries. The success factor of the company is acquisition contribution, neutral pricing and favourable currencies translation (Kerrygroup, 2016). According to the interim report, the company continues to experience growth, and the CEO is pleased with the progress made by the company. Further, the company maintain a cash flow of 161% conversion and +7. 5% earnings per share. It indicates healthy and robust finance if the company can manage such positive finance ratios. Every day fresh, Denny brand and Richmond are doing well in the market, but the traditional spreads are still picking. The business continues to be guided by innovative approaches in delivering nutrition and taste evident from the recent introduction of the plant-based diet (Kerrygroup, 2016). Recommendation Though the external environment continues to be hostile, affecting the economy, Kerry group is changing the food and beverage industry consumers’ status quo.
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