Beyond Borders: Unveiling Growth Strategies for Alba Bed Ltd in the Dynamic UK Business Landscape

1. Introduction

In such globalisation era, there is rapid growth of the small and medium sized business in the UK. Growth in the economy in the UK and the government collaboration and support for the small and medium sized business firms which are beneficial or the organisations to expand their business and improve their business performance for long run. The study focuses on analysing the internal and external business environment, which are playing crucial role in managing the business. In the internal environmental analysis is conducted through the SWIT analysis, where the organisational strengths and weakness as well as future opportunities and threats in the market will be analysed properly. On the other hand, the external business environmental analysis is also necessary, where it is possible to apply their theoretical models such as PESTLE analysis and Porter five forces model are necessary for the organisations to evaluate the external; environment to run the business efficiently. The study also focuses on the strategic planning of the business of the organisation Alba bed ltd after conducting the risk analysis and opportunity analysis. In the recent years, there are several opportunities in the market, where the small and medium sized business can expand their operational activities efficiently. The report is hereby effective to analyse the business internal and external environment, identifying the risk factors and conducting strategic analysis, for understanding the business planning of the firm Alba bed ltd in running their operations in the UK market. The study also provides a scope to recommend some suitable suggestions and strategies for market growth, where the firm would be able to establish the business and expand it further in near future and in this regard the recommendations would be beneficial for the business to manage corporate social responsibility so that the organisation can secure future sustainable development for successful establishment of the business.

2. Background of the organisation

Alba bed ltd is a manufacture of bed, sofas, mattresses and other furniture which is operating across the UK. It is a UK based small and medium sized organisation, where the company is efficient to deliver high quality furniture, mainly bed and mattresses which satisfy the customers and fulfil the customer’s values. The mission of the company is to establish the business in the market by delivering high quality furniture with good design and comfortable materials. The customers in the recent era of globalisation aim at getting high quality products and services at affordable price and it further influence the company Alba bed ltd to improve their strategic planning to manufacture the quality furniture so that it would be possible for the organisations to fulfil the expectations of the customers and satisfy them by delivering quality products. The chosen is appropriate to conduct in depth analysis about the strategies planning, internal and external environmental analysis, so that it would be possible to identify the business opportunities and recommend some suitable suggestions for market growth and establishing the business efficiently in the market. In this regard, the company Alba bed ltd focuses on creating values for the stakeholders by managing respect and dignity, providing high return on investment to all the stakeholders, managing customer values, managing transparency and accountability to run the business in long run and corporate social responsibilities. These are the major values, where the organisation focuses on maximising the performance of the firm in the market. It is necessary to conduct the internal environmental analysis and external business environment valuation to understanding the business capabilities and upcoming market structure and opportunities for the company Alba bed ltd, where it would be possible to develop effective strategic planning to run the business sustainably.

3. Research aims

The aim of the research is to manage small business and conduct the environmental analysis for successful business management.

4. Objectives of the research

The objectives of the research are,

To analyse internal environment for the business Alba bed ltd

To assess the external environmental analysis of Alba bed ltd

To understand the strategic planning of Alba bed ltd

To recommend some suitable suggestions for managing the business operational activities of Alba bed ltd in near future

5. Research questions

The research questions are,

How does the internal environment of the business Alba bed ltd affect the business management?

What are the external environmental factors influencing the business operational activities of Alba bed ltd?

What is the strategic planning of Alba bed ltd to run their business in the market?

What are suitable recommended suggestions for managing the business operational activities of the organisation Alba bed ltd in order to gain high competitive advantage in near future?

6. Literature review

Environmental analysis:

Internal analysis can be done through SWOT analysis, where the strengths and weaknesses of the organisation will be evaluated as well as the market opportunities and threats in future. The internal strengths and weakness need to be evaluated to understand the major strengths of the organisations and utilise the strengths for further establishment of the company. The weakness evaluation will provide a scope to the company Alba bed ltd to develop effective strategic planning for better performance. In addition to this, the future market opportunities and threats as require being evaluated in order to identify the market opportunities and acknowledge the risk factors for successful expansion of the business.

For successful external analysis of the business, it is effective to apply the PESTLE analysis and the Porter’s five forces Analysis in order to identify the circumstances, in which the Company Alba bed ltd can run their business. The evaluation of the external business environment is also effective to identify the forces in the market and the opportunities and threats in near future.

7. Analysis

9.1 Internal analysis

The SWOT analysis can be conducted further,

Strengths:

The major strengths of the company are financial stability and the production and manufacturing unit, where the company is able to stabilise their financial position in the market. It is possible for the company to establish the brand by manufacturing good quality of products and provide efficient services to the customers. The production site s effective and there is proper availability of the organisational resources for manufacturing the furniture products. There are variety of options in the company which are sofa, mattress, bed and other furniture, which may attract the audiences in the UK. In addition to this, the organisational infrastructure is also strong, which provides a scope to the company to manage their manufacturing practice to produce quality furniture, mattress etc. to run their business efficiently. Moreover, the organisation has the capability to manage the employees, where there is strong team who can manage the production and manufacturing unit for producing the mattresses and bed and other furniture efficiently. In addition to this, efficient employees, product portfolio management and management team are efficient through which the company is able to expand their business efficiently. There is other strengthen which are strong supply chain and distribution network and effective pricing policy. The company focuses on developing supply chain and distribution network to manage the warehouse and distribute the products with safety and within effective time, so that it is possible to create values for the customers.

Weaknesses:

The weakness are poor expansion strategy, shortage of labour, lack of market expansion strategy and poor market promotional activities or which the company fails to gain high competitive advantage in the market. The company lacks to develop appropriate marketing strategy, where poor promotional activities and placing strategy further deteriorate the chance of the company to establish the business. Additionally, the company fails to manage the shortage of labour and this further delays the manufacturing and production and distribution of the furniture in the market. It is difficult for the organisation Alba bed ltd to manage the organisational activities and expand the business efficiently. The organisation fails to retain the efficient workers for long run and due to absence of adequate staff; it becomes difficult for the company to increase their production units in the market. Lack of market expansion strategy is another weakness, for which it is also difficult for the company to expand their business efficiently in the market. Lastly, there is lack of placing strategy, for which he organisation Alba bed ltd aims to improve brand image and place the organisational products at the market.

Opportunities:

The major opportunities in the market are such as, market growth, digital market growth, Information Technology (IT), technological advancement, ecommerce market growth, customers buying behaviour. In the recent era of digitalisation, there is strong growth in the business, where the organisations utilise the latest technical innovation and improve business creativity for better performance. There is strong market growth with economic development, where the organisation will have the scope for successful expansion. Additionally, the growth in e-commerce business and online activities are other opportunities to run the organisational operational activities more efficiently for gaining high competitive advantage. On the other hand, the customer’s demand for the innovative products is increasing over the years which provides another opportunity to the company to develop he business creatively and establish the firm efficiently in near future.

Threats:

The major threats of the organisation Alba bed ltd in near future are, intense competition, threats of substitute products in the market, threats of new entrants, low market share, changing customer’s needs and preferences as well as climate change. These are the major threats, for which the organisation may face difficulties to run their operational activities smoothly. The company has the threats of substitute products and new entrants where it is a small and medium sized firm and there is high threat of new entrants in the market. Presence of substitute products in the market is another threat, where the organisation Alba bed ltd will face problems in attracting the audiences in the market with their products and services. There is also intense competition in the retail market where the firm will face high competitive threats due to presence of other competitive firms in the market. The growth in the small and medium sized forms and expansion of their business firms increase the competitive threat for the company Alba bed ltd.

9.2 External analysis

PESTLE analysis:

PESTLE analysis is effective to identify the external environment to run the business efficiently and in this regard through the analysis, it is also possible to analyse the political factors, economic growth and social development in the UK market, technological advancement, legal framework and environmental circumstances. The PESTLE analysis in the UK retail market will be represented for understanding the external environment to run the business of Alba bed ltd.

Political stability:

Political factor is necessary to reshape the organisation and in this regard there is political stability in the UK retail market and it provides an opportunity to the firm Alba bed ltd to run their business efficiently. There is growth in the small and medium sized busyness, where the government is collaborative and provide subsidy to the business firms for running their operational activities efficiently. After BREXIT incident, the UK market has been slowed down, but over the period of time, it is recovering and enhancing the economic performance for stashing the country in the global economy. This actor is also beneficial for Alba bed ltd to run their business successfully in near future.

Economic:

There is economic growth in the UK which is sustainable with 1.3% and there is also increase in the National Income. The country is efficient to raise their Gross Domestic Product by 0.3% as well as manage moderate rate if inflation with 1.81% and interest rate in the market, which in turn stabilise the economic condition of the country in long run. over the time, the personal incomes of the employees is increasing with the employment opportunities and it further enhance the purchasing power parity of the customers in the UK and thus is also another influencing factors in the market which provide a scope to the company to expand their operations across the country.

Social:

There is social development in the UK where the population is 66.87 million and this provides a strong customers base. Additionally, there is high literacy rate in the UK which indicates that there is social development and the people are upgraded with latest news and technology. In the recent years, the people are willing to gather new information through online searching and activities and it further influence the business firms to adopt new technology for promoting their operations in the UK for strengthening the customer’s base in long run.

Technological:

Technological advancement is playing crucial role in managing the business. There is growth of e-commerce activities through which it s possible to retain the customer and attract more audiences in the market. There is IT infrastructure and other application which are also useful for the organisations to run their operations efficiently such as ICT framework, GPS system and ERP. Additionally, the companies try to develop effective website for running their business efficiently and in this regard technology plays a crucial role to design the web page and attract the target audiences at the market. Moreover, technology is an important facto where the people can gather more information and connect with the world successfully.

Legal:

Legal framework is also effective factor which is useful to reshape the business in the recent competitive market. The organisations follow the rules, copyrights, intellectual property rights and other business license to establish the business ethically in the market. Apart from that, the other legal compliances related to the employment rules, Minimum Wage Act 1948, equality Act 2010, health and Safety at Workplace 1974 are effective to hire the employees and retain them for long run. Hereby, legal compliances are effective for the business to reshape their activities in an ethical manner.

Environmental:

Environmental factor is also another crucial factor in reshaping the organisational activities and developing proper strategic planning and in this regard it becomes a concern for the organisations to provide green environmental footprint in near future so that it would be possible to develop pollution green environment and protect the natural resources. The organisations in his regard aim to manage green environmental footprint by reducing greenhouse gas emission, utilising the renewable resources and other active pleasures to protect the environment. On the other hand, the UK government is responsible to raise concerned about environmental protection and it further influence the organisations to develop effective strategic planning for running the business sustainably and secure future sustainable development.

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