Whittakers Business Strategy

By developing and targeting key areas for sustainable value chain, Whittaker’s is committed to reducing its environmental impact over the next ten years. In the usual annual conference, the management of Whittaker’s revealed some of the specific strategies that will enable the organization to achieve sustainability. Among the top strategies include reducing greenhouse gas emissions, reducing water consumption, boosting a significant support for cocoa farming, providing renewable processes, adopting United Nation’s Sustainable Development Goals and establishing social investment fund to support the surrounding communities (Whittaker, 2018). Technology and innovation, overall low cost leadership strategy, and broad differentiation are the latest strategies to be put forward by the management of Whittaker’s to enhance sustainability. This report evaluates these new strategies and it will figure out on how they help to meet the key role and responsibility of environmental sustainability.

Whittaker’s Brand Internal Environment: 15 3. Key success factors and strategic challenges 16 3. a) Sources of Key Competitive Advantages for Whittaker’s Brand 17 3. a/b) In light of all analyses done so far, the following highlights the key challenges Whittaker’s Brand is facing: 18 4. Strategic options and plans 18 4. H. Whittaker and Son’s Limited in full is a confectionery Chocolate manufacturer based in Porirua, New Zealand. Whittaker’s becomes the second largest chocolate brand in the country after Cadbury. Being established in 1896, the family owned company is known for crafting the finest chocolate brands in the world. Whittaker's is a much-loved Kiwi brand in New Zealand and a genuine family business going back to four generations of J. Some of the ways include committing to getting their ingredients fairly; support the Porirua Youth Awards i.

e. taking care of the community around them, starting the Whittaker’s Cocoa Improvement Programme and using renewable energy sources. Strategic influence Sustainability is one positive way of impacting the environment. It forms the basis for evolution of Environmental Policy in New Zealand. It ensures that several conditions on this planet support the project of civilization and the global communities do not slip into deteriorating the environmental conditions and the resources. Human and technical sustainability also addressed the dramatic environmental changes on this planet that can influence policy making and the natural web. Droughts, rising sea levels and floods causing damages on property, taking lives, reducing production and creating environmental refugees has been well addressed and their impact reviewed. With the review, sustainability in the 21st century is certain that nations and the community will both mitigate the declines of the ecosystems and adapt them.

One recent sustainability policy is that of striving to avoid the unmanageable and the unavoidable. Starting in 1896, Whittaker’s expanded its operations to more countries and it is now one of the 90 members of the World Cocoa Foundation providing its products to several locations in the world. In June 2014, Whittaker's expanded its market to Malaysia. This entry mode made Whittaker’s one of the world’s most successful global source of quality chocolate, trusted local and international ingredients for cocoa products (Daniels & Insch, 2006). It serves and wholly owns shoppers in several parts of New Zealand and offers products at low-prices and elegantly designed fascinating merchandise in well displayed large warehouses to offer its product offerings. Factors that facilitated entry of Whittaker’s into the foreign market Strong brand image; Whittaker’s chocolate products has a large public acceptance as compared to its competitor products.

Whittaker’s main business strategy is to satisfy customer needs by providing high quality nutritional chocolate products and excellent services to chocolate lovers. To achieve this, Whittaker’s Company has to assess global tastes and preferences of customers in the global market and produce goods and products that are in line with the tastes and preferences in relations to quality and standards. Another goal is adoption of new technology and innovation to increase the company profit and market share in the market (Gary, 2015). Another business strategy was product diversification. In 1978, Whittaker’s Company produced four signature products – the K-Bar, Sante Bar, Toffee Milk, and Peanut Slab (J H Whittaker & Sons Ltd. The privacy policy sets out Whittaker’s information collected and information handling. The company as well uses social media applications and websites to communicate and enhance their daily business operations.

All the company stakeholders’ disclose personal information relating to Whittaker’s in accordance with privacy policy and applicable privacy legislation. The company management expects that every employee should be honest and straightforward in offering professional services. A professional employee should not only be honest but also fair or truthful in business relationship dealings. Change of the plans in the business increases the disagreements between the owner and the contractor given that the contractor had scheduled its work to suit to a particular period. b) Managerial Decision-Making Style: Shared management and decision making-style: Whittaker’s sons share decision making roles while executing and planning the top management roles. In innovating their frequently introduced strategies, the sons combine their efforts to develop a successful idea that will boost the company to the next level.

The shared decision making style incorporates an interactive process engaging the executive members, directors and junior workers in Whittaker’s. In the interactive process, the partners at Whittaker’s don’t necessarily look for a single best solution but they frame any situation broadly by taking into account multiple elements of success they overlap (Galotti, Ciner, Altenbaumer, Geerts, Rupp, & Woulfe, 2006). Delegation management and decision making style: The top management as well delegate some decision making roles to the individuals working in the operational level and the business level. Some of the roles and decision making activities include supervision roles of checking on junior employees and ensuring that all activities are accomplished accordingly to avoid inefficiency in the company. The effect of delegation is that the executive management will have a reduced workload in execution of duties involving long-term strategies such as international or global market entry (Heller, 1971).

Chapter 2. External and Internal Environments of Whittaker’s Limited For a business strategy to succeed and sustainability to be achieved, an internal environmental analysis is required. PESTEL is a strategic tool to analyze the macro environment of the organization. Macro- environment can be analyzed using other strategic tools like Porter’s Five Forces which is quite different form PESTEL analysis. PESTLE ANALYSIS PESTEL analysis describes the framework of macro-environmental factors used in environment to scan the parts of strategic management for instance like when conducting market research thus giving an overview of the various factors that have to be taken into consideration (Team, 2013). External Macro Factors Impact on Organization’s Business Situation Impact on Organisational Sustainability Impact on Organisation’s Future Outlook Political: The New Zealand government plays a fundamental role in the trend of regulations and deregulations.

Effects of change in business regulations and change in Legislation and taxation effects on the Whittaker’s Brand Company. These factors undermine its progressive role in maintaining the environment and managing physical resources such as water, air, climate and the vegetation. The following are the identified sustainability issues. Legal policies damage the consistency of Whitter’s Brand. Increased level of regulation and government oversight it faces thus facing increased level of litigation. Economic Expectations of a growth rate of 2. Technological Technology incentives, technology level in the industry and also access to new technology promotes the continuous innovation at Whittaker’s Brand (Gary, 2015). Its competitors like Cadbury have demonstrated a great ability to duplicate chocolate products thus making Whittaker’s products not to be unique as anymore. Also their new products they bring through new technologies will have an expanded market and excellent competitive advantage.

Scientific Revolution from technological advancement marks the beginning of tremendous upheaval in impacting the societies and even the environment. It is significant to make changes in philosophy, literature, economy, and politics in most societies to enhance sustainability and transform the environment through technological reform. Socio-cultural environment impacts on the sustainability of the company because countries’ state of education, health consciousness and the attitude of customers determine the state of relating with the surrounding community and promote continuous medical education in case of need. Good socio-cultural strategies promote corporate social responsibility which will boost the company reputation. Environmental The environmental factors include climate change, weather, waste management and laws regulating to environment pollution and legal factors includes the consumer protection, copyrights and patents and data protection (Carter & Swinburn, 2004). New Zealand effort to cut greenhouse gases could increase manufacturing and electricity costs of Whittaker’s in the country.

The climate change due to global warming could disrupt shipping and Whittaker’s supply chain. Large number of customers protect the market share of the company and many rivals delivering quality products and services than Whittaker’s makes the position and overall strategic success of the company to be little and vice versa (Gary, 2015). Threat of substitution: it is the competitors’ capability to find a new way of doing what J. H Whittaker and Sons Limited is doing. If the swap process is easy the power and the position of Whittaker’s can be easily weakened by the opponents and if the changeover is not easy, the power and strength of the company will retain (Porter, 1990). Power of buyers: it is the position of Whittaker’s Brand Limited customers to drive prices of the chocolate products and services delivered (Neal, 2015).

Secondly, product differentiation with Whittaker’s selling over 70 brands of chocolate in its stores (Nz Herald, 2015) Strengths Offering quality products makes Whittaker’s to be the destination for Chocolate lovers. As for this, sales increase and the company profitability increase as well. With diversified product portfolio, the revenue streams of Whittaker’s increases thus making the market share of the company to increase in the domestic market. Technology: New e-commerce and mobile purchase adoption where the company sells chocolate products through an online selling means that involves the use of video screaming and use of cellphones. The technology that Paradise Kings has introduced like use of cellphone is used to reach customers in distant places (Einav, Levin, Popov, & Sundaresan, 2014). Intellectual: Innovation Award: being continuously awarded as the best quality serves of chocolate In New Zealand (Gary, 2015 ) Opportunity The continuous innovation associated with company promotes a good opportunity to differentiate itself from the competitive environment of Food industry at New Zealand.

Table No: 04 (Examination of Internal Environmental Factors for Whittaker’s) x Value Chain analysis This is a strategic tool used to analyze internal activities of Whittaker’s Brand with a purpose of reducing costs or increasing product/service differentiation. Value chain of Whittaker’s represents the internal activities of this New Zealand firm while engaging in the transformation of inputs into outputs (Mudambi & Puck, 2016). Internal Organizational Factors Analytical Tools Impact on Organization’s Business Situation Impact on Competitiveness Impact on Sustainability Product: Whittaker’s has high quality products and they offer good services to their customers (Gary, 2015) According to SWOTT analysis, Whittaker’s brand has succeeded in the industry because of high quality chocolate products. Out of the high quality products, the business situation of Whittaker has improved tremendously The high quality products will reduce the competitive pressure from such companies as Cadbury i.

e. Ghana, Fiji and Carbon, at the right price, in the right quantity, from the right supplier, with the best quality and at the right time. The above elements are considered when rightfully setting an inventory management plan for the New Zealand chocolate brand (Arora, 2015) The perfect distribution plan helps in conveniently getting the high quality products to the customer efficiently and effectively. Marketing-related 1 The destinations of the chocolate items promotion are to build deals, pull in clients, enhance item acknowledgment and improve brand personality. Item promotion benefits organizations by providing things to create customer request, and advantages buyers required data about items accessibility and employments. Strong marketing and promotional activities: Whittaker’s has become well known turning into a pioneer in the market with each one of their items acquainting something new and energizing with the world.

Distribution related – Good inventory and distribution plan to acquire cocoa products from other countries like Fiji, and Carbon. Skills- high skilled personnel Location – convenient location in different parts of New Zealand, Malaysia and Middle East countries. a) Sources of Key Competitive Advantages for Whittaker’s Brand To analyze J. H Whittaker and Sons Limited sources of competitive advantage and sustainability has been used VRIO, that is a tool that allows an internal analysis of the sources of the company through specific metrics to identify the competitive advantage of these sources, such as value, rare and costly (Ramraika & Prashant, 2016). b) Employee-resistance on new technology introduction Lower speedy execution of duties thus hindering and expansion in the company. c) High cost of innovation Whittaker’s use more of its resources to introduce innovative products thus lowering the size of the company.

Table No: 09 (Identification and Impact of Key Challenges for Whittaker’s Brand) The key strategic challenges presented above directly affect the company's potential growth, because Whittaker’s depend on investment resources, and human creative capacity, collaborators and partners, to develop products and services that maintain the company's brand power as an innovative company that is focused on the customer’s satisfaction (Bryson, 2018) 4. Strategic options and plans 4. a/b) Strategic options are plans that will put Whittaker’s into a good position in the market. Identified challenges Recommended solutions (Strategies) Implementation of solutions (Plans) High cost of innovation Seek financial assistance for innovation of the Kiwi for Kiwi products and services Developments in product quality, product installations, manufacturing and distribution system after getting the finances Employee Resistance to change Diversification and collaboration Engaging the employees in product diversification and collaborating them while developing the new technology Table No: 11 (The recommended solutions and plans for implementation) 4.

c) Developing performance measures The Balance Scorecard is extremely applicable for measuring the performance of Whittaker’s Brand in New Zealand, by demonstrating the goals and strategies used, and to gain results concerning the performance of the strategies used by the company (Kenny & Bourne, 2015). Whittaker’s management will identify the current company position and focus a better performance using the four perspectives of a company balanced scorecard i. e. financial perspectives, Customer perspectives, Internal business perspectives and Learning and growth perspectives x Key Performance Areas Key Performance Indicators Target Organisational Performance Implementation of plan monitoring Financial • 20% Growth between 2010 to 2015 • 25% growth at the end 2015 • Increased sales units to 2 million chocolate bars 30% growth at the end of 2018 More chocolate bars to increase sales to up to $ 600 million turnover per year 38% market share Net profit is $400 million annually Explore other target markets to increase sales and increase profit Customer • Customer satisfaction • Customer loyalty Profit to be raised through customer satisfaction and customer loyalty Strong established customer relationships Brand loyalty Create close relationships with the regular customers to ensure that they are happy with the products Introduce a customer follow up process Internal Processes • Satisfaction of the workers • Introduction of innovation technology solutions 100% workers satisfaction Efficiency and effectiveness Ensuring these would lead to business growth Introduce a employee welfare policy New policies and innovative strategies Learning And Growth • Investment to train specialized employees at Whittaker’s • Programs to implement the training strategies To get total trained personnel on the areas of specialization High trained personnel on production, processing and development of Chocolate products Set the programs into action Enhance customer satisfaction through good training programs Table 12: Balance Scorecard for Whittaker’s Brand 5.

One of the programs involves supporting the Porirua Youth Awards to reward the inspirational, honest, hard-working, friendly, talented and visionary young people around the community. Secondly, they use the benefits they get to benefit the community by developing a sustainable market for their cocoa, and also help educate the farmers on the systems and techniques needed to grow export grade cocoa and increase employment in northwest Savai'i. This as well is good for environmental growth and management for long term sustainability. Among other programs include helping 12 Commerce students from Samuel Marsden in 2012 and 2013 to develop and sell their own White Raspberry Chocolate block in order to raise money for New Zealand Breast Cancer Foundation (Whittaker, 2018). Critical examination of five Business Practices The following section critically examines five business practices the organisation engages with and discusses impacts of these practices on the environment and sustainability.

J. H Whittaker and Sons Limited have been using in the annual sustainability reports the GRI standards framework. The company has been showing in detail the challenges, aspirations, goals and activities related to the themes of quality, products and sustainability. ISO14000 Series They are a set of standards with specifications and guidelines for various environmental management disciplines created by ISO Technical Committee ISO/TC 207, with the aim of providing environmental management tools for companies and organizations interested in managing their environmental and sustainability responsibilities (ISO, n. d. Recommendations Transformation of the society through scientific revolution to enhance further sustainability Resolving sustainability issues means transformation of various societies in both developing and developed countries. Scientific Revolution changes the way people thought about the physical world around them. The theories introduced in the scientific revolution period will be used to challenge the traditional beliefs about the environment and sustainability of the world.

Scientific methods initiated will be used to bring transformations in various world societies and ended up causing tremendous upheaval in sustainability thus causing enlightenment in environmental protection and sustainability enhancement (Simon & Julian, 1995). Emphasize on effective Waste management Management of waste in Whittaker’s Brand promotes sustainability in the environment since it is associated to resolving problems associated with waste damaging the physical resources such as water bodies which hosts marine life and it also focuses on water safety used in consumption by human beings and animals. com/sop_ufk2t-ub/whittakers/ Bitektine, A. Haack, P. The “macro” and the “micro” of legitimacy: Toward a multilevel theory of the legitimacy process. Academy of Management Review, 40(1), 49-75. Breton, A. Bartlett, V. Environmental policy in New Zealand: the politics of clean and green? (No.

Oxford University Press, USA. Carter, A. Swinburn, B. Participative leadership by American and Chinese managers in China: The role of relationships. Journal of Management Studies, 43(8), 1727-1752. Daniels, C. Daniels, E. Performance management: Changing behavior that drives organizational effectiveness. American Economic Review, 104(5), 489-94 Floyd, W. Wooldridge, B. Henry Mintzberg. Handbook of Middle Management Strategy Process Research, 177. Galotti, M. Gao, S. Page, L. Managerial ties and product innovation: The moderating roles of macro-and micro-institutional environments. Long Range Planning, 50(2), 168-183. Gary, F. Heller, A. Managerial decision-making: A study of leadership styles and power-sharing among senior managers. Taylor & Francis. co. nz/news/2015/09/whittakers-stays-top-spot-nzs-most-loved-brand https://www. Our story, products, Recipes and Whittacares Retrieved from https://www. whittakers. co. nz/en_NZ/our-story/ Jenkins, W. Williamson, D. Lee, S. Y. Klassen, R. D. Drivers and enablers that foster environmental management capabilities in small‐and medium‐sized suppliers in supply chains.

Tarí, J. Pereira, J. López, D. Pertusa, M. The effects of quality and environmental management on competitive advantage: A mixed methods study in the hotel industry. De Souza, M. Making the link: population. Health, Environment. NZ Herald (2015). Whittaker's brand we trust most. Strategic Planning: Readings, 102-117. Ramraika, A. Trivedi, P. Sources of Sustainable Competitive Advantage Register Nz (2015). Whittaker's stays in top spot as NZ's most loved brand. Retrieved from http://www. scoop. co. nz/stories/BU1406/S00666/whittakers-chocolate-expands-into-malaysia. htm Schwartz, S. Milne, J. From sustainable management to sustainable development: a longitudinal analysis of a leading New Zealand environmental reporter. Business Strategy and the Environment, 15(4), 219-241. Walter, U. Edvardsson, B.