SG7001 Managing Strategy, Operations and Partnerships Assignment Sample 2024
Activity-3
| Identification of the industry in question | Kakira Sugar Works is a sugar production industry for the Ugandan market since the 1930s and they utilise exporting strategy to serve the regional export market (Wotali, 2018). The analysis of external environmental factors plays a critical role as various companies are operating in the market. | |
| Environmental factor | Issues pertinent to the industry | Implications for the industry |
| Political factor | The company faces challenges due to trade policies in Uganda. It involves all the policies that have a direct impact on the flow of goods and services between diverse countries. These trade policies can affect import tariffs, voluntary export restraints, export subsidies, and export taxes (Byasharova and Achalova, 2021). It can affect their export strategy they use for exporting the products to regional export market. | The company must analyse the impact of diverse trade policies on its business operations so it can identify the strategies to overcome those challenges. For instance, the export taxes implemented by countries will increase the world price of the taxed commodity, hence; it will enhance the related price on products in comparison with imports. Therefore, they must identify these prices so they can plan strategically. |
| Economic | An economic downturn can be observed in the market of Uganda since the pandemic and that is also responsible for affecting the economies of the company. But the impact on the agriculture sector was low as food was the basic need of the company. The agriculture sector of Uganda contributes around 71% to the entire GDP. | The company can take advantage of local economic development policies to enhance the growth and success of its company. Other than that, they must focus on analysing their sales and revenue monthly to identify any changes in their growth in comparison with the previous month. |
| Social | The demographics and tastes of customers change frequently which can affect the sales and revenue of the company (Martiniello, 2021). Other than that, diverse sugar works company operates in the Uganda market that can also attract Kakira Sugar works consumers. It is necessary to meet customer satisfaction to hold the potential customers and attract new consumers. | For attracting new consumers and hold a customer base, it is must that the company brings product innovation and keep observing the changes in preferences of the customer to meet them. Further, they must analyse the new demands of the customer utilising various customer review technologies to keep them attracted to the company’s products. |
| Technological | The technologies are developing rapidly and that impacts the company’s business operations to a great extent. For instance, if any other company in this industry brings technological enhancement for increasing productivity can affect the business operations at Kakira Sugar Works. | The company must focus on the latest technologies that can help them in improving their productivity and targeting more consumers regularly. With the help of technologies, they can also collect customer responses that can help them in analysing customer demands and bringing improvement continuously. |
| Environmental | Environmental concerns are increasing and the utilisation of harmful chemicals and pesticides for increasing productivity impacts the soil fertility along with releasing harmful gases (Yiheyis and Musila, 2018). | It has become necessary for the company to research agricultural practices that can help them in decreasing the use of harmful fertilisers and pesticides along with increasing productivity. Other than that, they can use renewable sources of energy for operating their machinery. |
Table 1: Environmental factor analysis
| Porter’s force | Strength | Justification |
| Bargaining power of buyers | Strong | The market trends and demands of the consumer are changing frequently and at any point, if the products developed by the company are not meeting those demands then the switching power of customer will increase. |
| Bargaining power of suppliers | Moderate | The company operates in the market since the 1930s and they have a dominant position in the market keeping the power of suppliers low (Bruijl, 2018). |
| Competitive rivalry | Strong | There is various other sugar works company serving the market that increases market competitiveness in the local market to a great extent. They face competitive force from companies like Kinyara Sugar Works Limited, Sugar corporations of Uganda Limited, and more (Mpapalika, 2019). |
| Threat to new entrant | Low to moderate | The company operates in the market for a long time and reaching the market position of Kakira Sugar Works requires huge investment by a new company planning to establish. |
| Threat of substitution | Strong | Various other sugar companies can substitute the products served by the company and the product innovation in sugar products can also affect the sales and revenue of the company. |
Table 2: Porter’s five forces analysis
Table 3: Life-cycle stage
References
Bruijl, G.H.T., (2018). The relevance of Porter’s five forces in today’s innovative and changing business environment. Available at SSRN 3192207.
Byasharova, A.R. and Achalova, L.V., (2021). Uganda: socio-economic development, trade, international regional cooperation. International Trade and Trade Policy.
Lu, X. and Wang, J., (2018). A review of the classification of Enterprise life cycle. Modern Economy, 9(07), p.1169.
Martiniello, G., (2021). Bitter sugarification: sugar frontier and contract farming in Uganda. Globalizations, 18(3), pp.355-371.
Mpapalika, J., (2019). The Regulation of Sugar Market Price in Developing Countries. Available at SSRN 3471629.
Wotali, F., (2018). Effects of Working Conditions on Labour Productivity in Sugar Factories (A Case Study of Kakira Sugar Works Limited).
Yiheyis, Z. and Musila, J., (2018). The dynamics of inflation, exchange rates and the trade balance in a small economy: The case of Uganda. International Journal of Development Issues.
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