KOL659SAM Principles of Assignment Individual Assignment Sample
1. Introduction
In this report, the John Good Shipping company has to state the strategic methods the companies take in order to expand the company in the new market of France.
2. Problem proposal
The problem which the company may face in order of the expansion of the company and the kind of competitors the company may face in order to expand in the global and especially in the market of France.
Moreover, the company has to make sure of the kind of competitive pressure and even the market share which the company might face in order to expand.
3. Internal analysis
3.1 Description of the company
The John Good Shipping company is a goods and service company which helps in supplying goods to other places from one place through ships and other transportation. Moreover, the company has extended to a logistics company as well as a travel company since 1800 and also making sure about the safety and security in the sea (Johngoodgroup.co.uk. 2021). http://KOL659SAM Principles of Assignment Individual Assignment Sample
However, the company is situated in the United Kingdom (UK) and in the initial years the company was a shipping company and later the company introduced tourism and logistics.
Additionally, the company maintains the value of supporting one another and also working as a team and providing effective services to all the stakeholders of the company. Therefore, the company makes long term decisions so that it helps the company in mitigating problems and also by incorporating various types of innovation. Thus, it helps the company to improve and make the company a responsible member.
3.2 Business Model Canvas
| Key partners
British Airways, Lufthansa City Centre, Cargo Agent, Institute of Chartered ShipBrokers and many more (Johngoodgroup.co.uk. 2021) |
Key activities
The company besides in shipping also have flourished in travel and tourism and even in logistics |
Value proposition
The company helps in retaining customers as well as employees which helps the company sustain longer |
Customers relationship
With the help of Matthew Good Foundation, the company has donated more than 500,000 Euros to charitable causes so far, with a record 85,000 Euros in 2020 (Johngoodgroup.co.uk. 2021) |
Customers segments
The customers of the company expand widely from cargo shipping to even normal customers who may use the company’s logistics system |
| Key resources
The company maintains good Corporate Social Responsibility among the employees |
Channels
Trans-European Port Services (TEPS), Good Travel Management, Bay Shipping, DAN Shipping |
|||
| Cost structure
Operational costs including distribution, environmental sustainability, waste management and logistics |
Revenue stream
The company gained a revenue of about 866,000 Euros which has helped the company to and widely (Business-live.co.uk 2021) |
|||
Table 1: Business Model Canvas
(Source: Self-created)
3.3 Financial analysis
The company being a long standing company has made quite a good profit and even have been able to withstand it because of good collaboration and also due to the loyalty of the customers. Moreover, the revenue of the company is 866,000 Euros which even employs over 200 people making the company a vast logistics company making it quite well-known (Business-live.co.uk 2021).http://KOL659SAM Principles of Assignment Individual Assignment Sample
Furthermore, the company has been able to expand the business in such a vast
arena and even has helped the company to even think of extending the company to France. Moreover, the increase in the revenue structure of the company allows the company to extend widely in the travel and tourism business which too is flourishing quite well. Therefore, with the help of good opportunities and even with strong values of the company made the company to grow good connections and even attract customers worldwide.
4. External analysis
4.1 PESTLE
Political factors
It has been observed that the political situation of France is stable and forming friendly behaviour with the neighbouring country and the other economies of the world with consolidated business tie ups. However, these strongholds of politics may enhance the fortune of John Good shipping company where the seafarers have ample opportunity in France to grab the market share positively.
On a contradictory note, the global recession due to the Covid-19 outbreak has adversely impacted the business atmosphere of the country with the strict measures of lock down. In order to bounce the factors of the Covid-19 Government of France has taken several measures to support the economy with access to finances and protection of jobs and skills.
Economical factors
Figure 1: GDP of France
(Source: Data.worldbank.org. 2021)
From the above figure it has been clear that France is an economically prosperous country where the market expansion plan of John Good Shipping Company will be fruitful with business opportunity and increased buying behaviour of the citizens.
Figure 2: Unemployment rate
(Source: Jany, 2018)
Moreover, the unemployment rate of France is around 8% which was less than the other developed countries of the world which will be beneficial for the business context of the company. The high Consumer price index (CPI) is indicating inflation with high price levels of goods and products which will suffice the business function of the company (Jany, 2018).http://KOL659SAM Principles of Assignment Individual Assignment Sample On the contrary this rise of inflation is temporary due to the Covid-19 crisis which is supposed to alter with time and harbouring the opportunity more conveniently.
Social factors
The economy affected the country’s social sector of France which is seen as the increasing rate of youth crime and socially divided groups are dominating the county social segment. The immigrant issues also concern the country’s social Diaspora which witnessed in the form of protest and crime rate.
On a brief note the social demography structure of the country shows the highest percentage of youth and aged people who are living secure lives and boosting the economic activity of the country. The division of labour and social capital are influencing the sustainable consumption behaviour of the population which is affordable for the company to expand the business over the country (Lazaric et al., 2020).http://KOL659SAM Principles of Assignment Individual Assignment Sample
Figure 3: Demography of France
(Source: Lazaric et al., 2020)
Technological factors
Being a developed country the technological factor remains the aspect of business transactions where people are more reliable on the internet and Smartphone for daily activities. The advancement in technology will be helpful for the company to support the increasing online traffic in the country through business up gradation and digitization.
It will be helpful to expand the business of the John Good shipping company in France with technological advancements and attract the consumer’s attention more frequently. The technology friendly atmosphere of the country gave immense opportunity to grow and expand the shipping business with sustainable effort.
Legal factors
The business friendly law of the country has several benefits for the company where the country will be the gateway of the European Union and huge possibilities lie further. More specifically, The Plan for business growth and transformation law (PACTE law) 2019 simplifies the business set up with the opportunity to grow, transform, innovate and create jobs and improve accessibility to the financial market (Trade.gov. 2021).http://KOL659SAM Principles of Assignment Individual Assignment Sample
The French laws and regulations are positively influencing the business structure of the country to enhance the economical growth of the country. On the other hand the shipping company will be able to access the market variations over the country and do a regular and fruitful business through cooperation and collaboration of policy. The Covid-19 measures are also taken care of in daily operation to win the consumer confidence and increase the business perspective in the country.
Environmental factors
Environment remains the close concern of the society where any business outlook without environment friendly behaviour may suffer due to increased consciousness of the population of the country. The French government has regularised renewable energy for the business purposes which will shape the future of the business paradigm of the world.
The global climate change policy and oath of global leader are pledged to take utmost care of the business doing with consumption of energy with factors of social distancing and hygiene maintenance with frequent sanitization might give positive result to the operational activity of the country.
4.2 Porter Five Forces
Competitive Rivalry
It may be argued that the competitive rivalry in the shipping market is high enough for business expansion where every organization relies on core competency and strategic difference to secure the competitive advantage in the market.
The access of sea ports and terminals are the same for all the competitors and companies are taking the strategy of alliance and merger to survive in the competitive market. On the contrary strategy of integration of services will be fruitful for the business transaction and grow along with high profit margin.
Supplier Power
It has been observed that the bargaining power of suppliers in the shipping industry is low with the availability of suppliers in every region, continent and the same country used to contribute the industry with fuel, paint, surveying and crew.
The supplier power has a low impact in the business operation with the availability of a large number of suppliers and companies are not reluctant to partner with new supplier firms for business competition and smooth functionary. On a specific note, the inter-organizational dynamics of the supply chain often depends on the power leadership, conflict and cooperation which limit the conflict and encourage the interdependence of the organization (Fulconis and Lissillour, 2021).http://KOL659SAM Principles of Assignment Individual Assignment Sample
Buyer Power
Figure 4: Porter’ five forces
(Source: Fulconis and Lissillour, 2021)
The bargaining power of the buyers is extremely high in the industry which comprises the exporters, importers, manufacturers, freight agents and brokers who control the business and shipments through negotiation and bargaining of prices.
It has remained crucial to choose the right freight carrier, transit time, provided services and destinations in response to customer needs. The degree of buyer bargaining power highly influences the business achievements of the organization and varies according to choices made by the buyer.
Threat of Substitution
Threat of substitution has low impact in the operational activity of the shipping industry as it becomes the cost effective choices of the consumer where other transportation mediums are involved with high cost and low volume.
On a contradictory note, shipping containers may be able to transport a large volume of goods and products whereas the air freight carrier has high cost and limited capacity and thus negligible in the account of the shipping industry.
Threat of New Entry
Threat of new entrants is low in this industry where the capital investment is quite high to start the business and enter the market operation. Moreover, with the need for high capital and assets in vessels, port terminals, equipment and warehouses which acted as potential barriers to the new entrants?
It may be noted that, the market opportunity for the new entrants are cost sensitive which marks the low degree of the threat of new entrants for the organizational operation activity.
5. Competitor analysis
The John Good Shipping company has a good reputation in the UK as it started long back and also it helped the company to even expand and flourish both economically and socially. Moreover, in order to expand the company in France, the company has to make sure that it becomes well aware about the companies in competition in France.
Therefore, in order to expand the company, the company has to be well aware about the Chargeurs Group which has a long establishment since 1872 and also the company may become quite a good competitor as it has good and trusted customers in France (Chargeurs. 2021).http://KOL659SAM Principles of Assignment Individual Assignment Sample Additionally, the Fabre Line is another shipping company in France which too makes a good competitor for the company as the Fabre Line too has been in existence since 1902 (Archives, 2021).
6. SWOT
| Strength
1. Effective professional relationship with customers, suppliers and colleagues is one of the major strength of the company 2. Teamwork with mutual understanding create flexible working environment 3. Arranging program of competitive rewards and benefits provide employees’ motivations towards the work activities 4. Recycling and waste reduction provides strength to the company to sustain in competitive world |
Weakness
1. The company may face internal challenges such as financial misunderstandings and conflicts being a prolonged family business back to 1833 (Johngoodgroup.co.uk. 2021) 2. Moreover, the company may face a challenge about the environmental sustainability and even inner challenges (Suriyanti et al., 2020)
|
| Opportunities
1. Bay shipping provides opportunity to expand the business globally 2. Trans-European Port Services of the company fulfil distribution needs in order to spread customers internationally 3. Focusing on environmental sustainability such as solar energy gives scope the company to gain more investors |
Threats
1. High competition is one of the main reason for threat as due to competition, the company may face quite a challenge in order to expand the company in the huge competitive market where the company may face lack of customer attraction and also shortage of suppliers in France |
Table 2: SWOT analysis
(Source: Self-created)
7. Growth Strategies
The company has to make sure to maintain good strategies in order to expand the company in the new market and also which might help the company to gain profits from the markets. Moreover, the company has to look after the sustainable growth of the company which may occur with the help of collaboration with various agencies in France.
However, the company may make a joint venture with Paris Authentic by expanding in already existing tours and travels which might help the company to expand well in the country (Parisauthentic.com. 2021).http://KOL659SAM Principles of Assignment Individual Assignment Sample Moreover, the company has to maintain the work culture, salary and benefits and even career opportunities in the company for the new market (Refer to appendix 1).
Furthermore, the company has to be careful regarding market penetration as the company may face certain challenges in the new market and even diversification may make the company explore new products and even to face new opportunities although the company has to handle them strategically.
8. Logical next steps
The company has to make sure that the company is well aware about the market conditions of France so that it may help the company to take valid steps. Furthermore, the company too has to give discounts and even give out certain privileges to the new customers in the expanding country so that it may help the company to flourish well.
Moreover, the company too has to make sure that the company collaborates with the locals and even with the domestic suppliers in order to expand the market in the country profitably.
Therefore, the company has to make sure that the company may be able to spend less money and make more profits from the given market. Therefore, the company has to make sure that the new market in France may gain profits with the help of understanding the cultural background and also the needs and requirements of the people according to which the company may expand the business.
9. Conclusion
It may be concluded that in order to expand in France the company has to make sure that the company follows certain strategies so as to expand in the new market. Furthermore, the company too has to make sure that the company looks out about the competitors which might become a threat and also boon for the company.
10. References
Archives, 2021. Fabre Line History and Ephemera | GG Archives. [online] Gjenvick.com. Available at: <https://www.gjenvick.com/OceanTravel/SteamshipLines/FabreLine.html> [Accessed 9 December 2021].
Business-live.co.uk 2021. [online] Available at: <https://www.business-live.co.uk/ports-logistics/john-good-groups-77m-logistics-21522100> [Accessed 9 December 2021].
Chargeurs. 2021. History – Chargeurs. [online] Available at: <https://www.chargeurs.com/le-groupe-2/history/?lang=en> [Accessed 9 December 2021].
Data.worldbank.org. 2021. France | Data. [online] Available at: <https://data.worldbank.org/country/france> [Accessed 9 December 2021]
Fulconis, F. and Lissillour, R., 2021. Toward a behavioral approach of international shipping: a study of the inter-organisational dynamics of maritime safety. Journal of Shipping and Trade, 6(1), pp.1-23.
International Trade Administration | Trade.gov. 2021. France – Market Overview. [online] Available at: <https://www.trade.gov/country-commercial-guides/france-market-overview> [Accessed 9 December 2021]
Jany-Catrice, F., 2018. Conflicts in the calculation and use of the price index: the case of France. Cambridge Journal of Economics, 42(4), pp.963-986.
Johngoodgroup.co.uk. 2021. John Good Group | Leading the way in Logistics and Travel. [online] Available at: <https://johngoodgroup.co.uk/> [Accessed 9 December 2021].
Lazaric, N., Le Guel, F., Belin, J., Oltra, V., Lavaud, S. and Douai, A., 2020. Determinants of sustainable consumption in France: the importance of social influence and environmental values. Journal of Evolutionary Economics, 30(5), pp.1337-1366.
Parisauthentic.com. 2021. Homepage | Paris Authentic. [online] Available at: <https://www.parisauthentic.com/en/> [Accessed 9 December 2021].
Suriyanti, S., Firman, A., Nurlina, N., Ilyas, G.B. and Putra, A.H.P.K., 2020. Planning Strategy of Operation Business and Maintenance by Analytical Hierarchy Process and Strength, Weakness, Opportunity, and Threat Integration for Energy Sustainability. International Journal of Energy Economics and Policy, 10(4), p.221.
Best best best..