Adnams – a living company Julie Verity and Kim Turnbull James
This is a case about the long-term survival and evolution of a UK-based SME, one that has an iconic brand and a strong local position. It covers all aspects of the company, providing an opportunity to discuss competitive strategy, corporate governance, core competences, customer and brand value, culture, innovation, leadership and strategy process and decision making. Adnams is a unique company and this can make for interesting and probing discussions about the nature of strategy and strategy making.
Adnams is a mid-sized brewery business based in Southwold in Suffolk, UK, with a turnover in 2012 of about £50m ($ 75.8m; €59.2m).’ Adnams also owns and operates hotels and pubs mostly in and around Suffolk and Norfolk. Roughly 420 people work at Adnams and there are 1,200 shareholders. Andy Wood joined the company in 1994 with responsibility for developing customer service and supply chain operations. He joined the Board in 2000 with the additional responsibil-ities of sales, marketing and the wine business; he became Managing Director in 2006 and Chief Executive in 2010. Andy Wood describes himself as a guardian of Adnams who is privileged to share in its history and development.
He does not believe in ‘white charger leadership’: ‘Instead, I want to celebrate others and push them to the front.’ At the time of writing, he was also aware of significant challenges:
`There is a lot going on — a lot of the business is moving on-line and we need to spread the net as a defence mechanism. We will always be a manufacturer . . . but we are stretching the brand into long drinks and food and leisure; becoming more of a broad church. The com-petition are demanding this, we can’t compete with the macro- or micro-brewers.’
This case was prepared by Julie Verity and Kim Turnbull James and was made possible because of funding from the Cranfield/ Thurnham legacy. It is intended as a basis for class discussion and not as an illustration of good or bad practice. Thanks to people at Adnams who generously gave their time for interviews. © Julie Verity and Kim Turnbull James 2013. Not to be reproduced or quoted without permission.
P58881 Global Strategic Management Semester 1 Assignment P58871 Business Strategy Assignment
NOTE: Your assignment is linked to the Adnams case study, which you can find in the core textbook (Johnson et. al. pp. 606 — 611.) The Adnams case study provides you with a ‘platform’ on which to develop your knowledge. It is your responsibility to explore additional material on the case study company and the business environment.
Conduct a strategic analysis of the case study company. Your submission should be in the form of a business report and must not exceed 2000 words in length (minimum length 1800 words). There should also be an executive summary (maximum 1 page) which is not included in the word count. There may also be appendices which are not counted either and these will always include a reference list but may include other appendices too. However an excessive use of appendices is a sign of poor report writing technique and will be penalised in the marking criteria.
Your report should include at least the following elements: 1. Using the case study and other research material identify the key drivers for change and the critical success factors in the industry and critically evaluate how the company has responded to these. To undertake this task you should include the following:
(a) Identify with evidence and critically evaluate the core elements of the company and its operations including their market share and that of key competitors as well as the level and intensity of market competition. (b) Identify and critically evaluate the key drivers of change — this should be a synthesis of the most important factors from your external environment analysis. (c) Identify and critically evaluate the critical success factors for the company to prosper.
2. Identify with evidence and critically evaluate the key business strategies of the company over the past ten years. Use either Porter’s generic strategies or Bowman’s strategic clock and critically discuss why this strategy was pursued or changed.
3. Identify with evidence and critically evaluate the resources and capabilities of the case study company over the past ten years (including the VRIO framework), and conclude to what extent the company has aligned its resources and capabilities to its business strategies.
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