Organizing Human Capital Business Strategy Analysis ***I am including Projects 1 & 2 to facilitate project 3.*** Purpose In this project, you will comple

Organizing Human Capital Business Strategy Analysis ***I am including Projects 1 & 2 to facilitate project 3.***

Purpose

In this project, you will complete Phase 3 of the Business Strategy Analysis. Drawing from the course material, you will

Use the course material through week 7 and your research to complete Phase 3 of the Strategy Analysis.
Learn and apply concepts concerning human resources. You will also write an Executive Summary.

Skill Building:

You are also completing this project to help develop critical thinking and develop part of a management plan.

You will be required to research the infant formula industry as a continuation of Project 1 and Project 2. Do not take the research lightly as you are required to do significant research to answer the requirements of the project.

Skills: Research, Critical Thinking, Write a Strategy Analysis

Outcome Met by Completing This Assignment

employ effective planning processes to develop strategies, goals, and objectives in order to enhance performance and sustainability
organize human, physical, and financial resources for the effective and efficient attainment of organizational goals
demonstrate leadership skills by communicating a shared vision, motivating and empowering others, and creating a culture of ethical decision-making and innovation
develop measures and assess outcomes against plans and standards to improve organizational effectiveness

The Executive Director for the new Asia Division, has been asked by Max Barney to put together, and present in a report to him, a business strategy that will be a guide for the next year as the new division moves forward. The Executive Director will be working with the consulting group and they will assist with putting together this plan. The final plan will be laid out as outlined below and developed in three phases.

You have successfully completed Phase I and Phase II and it is now time to complete Phase III. In the third phase, Section I and Section VII will be completed.

Section I – Executive Summary

Section II – Goals and Objectives

Section III – Competitive Analysis

Section IV – Description of Organizational Structure and Culture

Section V – Breakdown of Product and Services

Section VI – Communications Plan

Section VII – Human Resources Plan

The business strategy will provide the organization an opportunity to explain the goals and objectives of the new division and help with the development of the strategy to achieve them. The plan will allow the company to gain insight into the current status of the industry it is venturing into using internal and external analysis tools, and then use this analysis to design its division’s business environment. In addition, the plan will be used to form the team that will bring the vision for this division to reality.

Instructions for completing Phase III

These two sections will finalize the strategy the group from Expert Foods Consultants has been assisting the Executive Director with. Although you typically would be combining all three phases into one document, for the purpose of this work, you will on present the two parts identified above.

You will need the Biotech Company Profile (see attached) to complete the analysis.

Step 1: Human Resource Plan

A human resource plan will allow the director of the new Asia division to identify the future human resource needs for the organization. The director has asked Expert Foods Consultants to evaluate the product line identified and conduct market analysis to determine possible man power needs for the product manufacturing and all management and supervisory roles (to include all levels of management). The management levels should have been identified in the Description of Organizational Structure and Culture section of this strategy, but the resource needs in manufacturing will need to be considered. Remember the only person currently hired for the new facility is the Director so there will need to be Assistant Division Directors (ADD) for the other areas identified in the Structure such as Marketing, R&D, Sales, etc. Each of the ADD’s will need to have staff as well; you will need to identify how each ADD will be provided staff. Will they identify and interview themselves or will HR be a part of the hiring process. The Organizational Chart is also a part of the HR plan so ensure that a revised organizational chart is also placed in this section for reference.

Training is a key to retention in business today; employees like to feel they are important to the organization and investment in their competencies shows commitment to them. So, consider what the new division will need to do to ensure they are keeping the best talent they find.

Evaluation is another way organizations can show their commitment to employees. How will the new division conduct employee evaluations based on what is common in the area that the Expert Foods Consultants identified? This will require a level of research in common HR practices in that region.

You needs to remember that this is a brand new division that will be selling products that Biotech currently is not involved in so all aspects of business will need to be considered such as marketing, etc. Remember there is no perfect HR Plan, just plans that work and plans that do not. Good plans consider the employee and the culture around them just as important as the organization itself.

Step 2: Executive Summary

The Executive Summary will be the first section of the paper but should be written last since it will highlight what is intended for discussion in the rest of the strategy. A good executive summary is compelling. It reveals the company’s mission statement, along with a short description of the products Biotech will provide at the launch of the new division. It is also necessary to briefly explain why Biotech is starting the new division and include details about Biotech’s experience related to the industry the company is entering.

Step 4: Review the Paper

Read the paper to ensure all required elements are present. Use the grading rubric to ensure that you gain the most points possible for this assignment.

Proofread the paper for spelling and grammatical issues, and third person writing.

Read the paper aloud as a first measure;
Use the spell and grammar check in Word as a second measure;
Have someone who has excellent English skills proof the paper;
Consider submitting the memo to the Effective Writing Center (EWC). The EWC will provide 4-6 areas that may need improvement.

How to Set Up the Paper

Create a Word or Rich Text Format (RTF) document that is double- spaced. Use 12-point font. The final product will be 3-5 pages in length excluding the title page and reference page. Write clearly and concisely. The Infant Formula Industry and Biotech Company
Introduction
The business internal and external environment will impact biotech expansion to
the infant formula industry. The organization wishes to expand its product line into infant
formula. It intends to open a range of infant formula products, conduct marketing,
differentiate its new product and improve the technology to expand into the new industry
successfully. The political, economic, social, environmental and legal factors of the
infant formula industry can influence the success of anticipated establishment of Biotech
in the sector. Therefore, the company will need to consider all the elements when
strategizing. The company has strengths and opportunities that promote its plan to
expand to the infant formula sector. It also has weaknesses and threats that impact its
intention to increase its product line. The organization has three major competitors,
Nestle, GNC holding and Hain Celestial Group in the new industry. They have strong
brands and financial capability. Nevertheless, these firms also have weaknesses. This
paper examines Biotech and the infant formula industry.
PESTEL Analysis
Biotech General Environment
The CEO, Maximillian Barney heads Biotech. He is in charge of the whole
organization, and all the other managers’ report to him. The organization is divided
geographically where various each region operates independently. Nevertheless, each
geographical division has a functional structure with an executive director, IT manager,
R&D, HR, and Sale manager. Biotech has enough employees who operate in its various
branches across the globe. Biotech Company Profile (p. 3) asserts that it has 38, 000
employees in 6 states. In addition to workforce capability, the organization has
adequate fund and cash inflow. Therefore, it is capable of meeting operation and
unexpected expenses. It records huge sales; particularly in 2016 the sales were $ 45
billion.
The organization has multiple suppliers who provide the company with relevant
materials and machinery needs to manufacture its products. Some of the suppliers are
global leaders in their field that partners with an organization in research and
development of its products. Examples of the suppliers are Thermo Scientific Pierce
Antibodies, BNR, Whatman and Randox Life Sciences. The organization has good
relationships with its supplier, which it has fostered long-term contract with.
Biotech Company has strong competitors in its market. Its prominent competitor
is Amgen, which specializes in producing two drugs, and competes on price. Biotech
Company Profile (p. 3) indicates that Nestle, Hain Celestial Group, GNC and Idec are
the other competitors who have strong capabilities in research and development and
cost control. There are also other multiple small competitors who are making an effort to
increase their customer base. Pharmaceutical companies, Laboratory, and individual
people are target clients of Biotech. Therefore, the organization has a broad line of
customers. As for the company demographics for its target market, it constitutes of both
female and male. It similarly represents young children and infants of various age
groups
PESTEL Analysis of the infant formula industry
Multiple environmental and market factors of the infant formula industry have an
impact on the Biotech company. The first element is the political factor. The infant
formula sector is a vast market that constitutes different countries with diverse political
characteristics; political stability, trade regulation, and food standard guidelines. Some
states have favorable political factors while other have unfriendly laws. These distinct
political factors influence the decision of the organization concerning the international
market it will operate in and its sustainability. This element has an impact because
countries with political stability, unchanging regulation regarding food standards, and
standardized practices will support the operation of Biotech Company. The organization
will have certainty on the kind of law to adhere to and will have little risks. Nevertheless,
if the nations have political instability, changing food and global regulations, then the
organization will find it challenging to start and expand the new infant formula product.
This is the case because it will be hard and expensive to start a business legally.
Additionally, the risks will be huge.
The second element that can influence the organization is economic. As earlier
discussed, the industry constitutes a range of countries across the world. Therefore,
different countries have dissimilar economic level which influence the operation of any
business in the industry. Developing countries have economic instability with low GDP,
slow economic growth and high inflation. They don’t encourage business growth.
Contrary, the developed nation have high GDP, economic growth and slow inflation.
They support businesses and promote companies profitability. Similarly, the economy
of the country will determine biotech growth and sustainability; if it is economically
developed, it will help the company and vice versa. Besides, the economic level, the
other economic issues in this industry that can affect Biotech are the price of raw
materials and shifting of customer budget. The cost of the raw materials is paramount in
this industry. It influences the sustainability of all companies. Notably, the price of the
infant formula is influential in its purchase. Therefore, it will affect Biotech as it needs to
identify how to maintain low cost despite the changes in the raw material rate. The
consumer budget as well can impact the company since it determines the sale of its
products.
The third factor in the industry that can affect Biotech Company is social. It is the
customer characteristic of the industry. The consumers in this industry have a changing
attitude towards health initiated with the government. They also have a lifestyle of using
healthy products that are friendly to the body. This includes a preference for goods that
have little additives or natural. The religious and cultural beliefs of the consumers in the
industry determine the purchase of the infant formula. Nonetheless, culture and spiritual
practices differ from one region to another in this sector. The consumer attitude
influence Biotech to be concerned with the changes especially those suggested with the
government so that it does not offer products consumer don’t want. As for a healthy
lifestyle, it influences the organization to strive in delivering healthy products that match
the healthy consciousness of the world. Finally, the matter of religious and cultural
influence on the consumer affects the company in that it will need to put into
consideration different cultural and religious practices when producing the infant
formula. For instance, in the region full of Muslims people, Biotech needs to create
infant formulas that don’t contain pork
The technological factor is the next element present in the industry and has an
impact on the company. High technology is needed in developing infant formula. The
steps or procedure of creating baby formula is complex as the composition of the right
ingredient is necessary. Additionally, the infant formula needed is for different with age
range. This will influence the organization to develop its technology, so that align with
the level required in the industry. Furthermore, it can cause the end of the organization
as soon as it begins if it is incapable. The other thing to note regarding the technology in
the sector is it fueled with innovation. Therefore, the organization will be forced to be
creative and innovative.
The fifth element in the industry is environmental. It affects the corporate social
responsibility the organization will engage in and its operation. In the infant formula
industry, there is increased attention on companies toward corporate social
responsibility especially promoting the health of children and infant mothers. There are
also environmental concerns with the government and the public regarding recycling of
the packages. The environmental conservation concern with the government and the
customer will influence the organization to produce environmental friendly packages.
Otherwise, consumers will refrain from using its products as intrinsic motives affect their
purchase process. Biotech also has to engage in corporate social responsibility in the
market it operates as the consumer will only promote companies that give back to
society. Moreover, the government will only offer support to companies that contribute
to improving the life of the people.
Lastly, the legal issues in the infant formula industry have an impact on Biotech
Company. The legal requirements involving infant formula are strict and compulsory.
Additionally, they are multiple. Infant formula is a sensitive product that requires high
sanitary practices. Standardized production procedures are also tight. The other
mandatory regulations are high microbiological and nutritional quality. This means the
organization will have many rules to adhere to. It is, in turn, expensive and can affect
the continuity of the company. The other legal issue is changing regulation across
countries. Various countries in this industry have different laws. Therefore, it will be
expensive and difficult for Biotech to expand international since it would mean it has
many rules to understand and follow.
SWOT Analysis
Strengths
? Biotech has a high financial
capability which it can use to
Weaknesses
The company doesn’t have a strong brand.
It has not invested in creating the image of
?
?
expand its business, finance its
operation and take advantage of
any unexpected emerging
opportunities. The financial ability is
evident in the record of its sales as
from 2000. It increased its sale
exponentially. Biotech Company
Profile (p. 2 para. 7) reveals that in
2000 it reported sales of 1.1 billion,
2012 a revenue of 25 billion and in
2016 the sales was 45 billion. This
demonstrates it has high cash
inflow.
The organization has a strong
corporate culture with great value
that has roots from the history of the
company. Biotech Company Profile
(p. 5 para. 2) illustrates that its
culture is family, and one of the
value is customer-centric.
Therefore, the culture promotes
customer satisfaction as it puts the
interest of the customers first and
making their experience with the
company exceptional.
Consequently, it fosters customer’s
loyalty.
It similarly has excellent leadership
and organization structure that
promote high productivity, great
communicating, job specialization
and staff commitment. Biotech
Company Profile (p. 5 para. 2)
elaborates that it is divided
geographically where each region
has a functional arrangement with a
manager for each role like finance.
This structure removes the barriers
in the bureaucratic structure where
power is limited at the top.
Additionally, it promotes
specialization since each task is
headed with an expert.
Furthermore, with the structure, the
staffs have the freedom to explore
and hence job satisfaction.
the company and a unique identity that will
assist the organization in differentiating
itself. Therefore, competitors will have a
definite competitive advantage against
Biotech (124). The infant formula industry
has strong competitors with a strong brand
like Nestle.
Biotech products’ packages are not
environmentally friendly. They cannot be
reused and also are not decomposable.
Therefore, they are not in line with
increasing awareness and attention
among consumer in need of products that
conserve the environment.
?
The organization participates in
corporate social responsibility.
Biotech Company Profile (p. 4 para.
4) affirms that the company is
building houses in regions like India
and Brazil. This fosters public,
consumers and government
support. The consumer will be
encouraged to purchase the
company product. The government
will boost the growth of the
company in terms of subsidiaries
and tax credit. As for the public,
they offer workforce
Opportunities
? The company has the ability of
technology advancement needed in
the infant formula industry.
Therefore, it will have a high
competitive advantage in the
industry that will make it gain a high
market share. This is featured in the
organized effort to promote
innovation. Biotech Company
Profile (p. 4 para. 5) claims that it is
making efforts in changing the
culture of the company and
developing its organizational
structure so that they encourage
creativity and generation of new
ideas by staffs across overseas.
Moreover, it has a department, R&D
which specializes in innovation.
? The organization has multiple
international operations that are
known as the market for infant
formula and hence has an easy
chance to expand to the new
industry. Biotech Company Profile
(p. 3) illustrates that it has
operations in USA, Europe, Asia,
Canada, and the Caribbean. These
are regions with high economic
freedom and support open trading.
Thus, it will be easy to start the
infant formula.
Threats
Inconsistency and high prices of raw
materials in the infant formula will
influence the biotech ability to offer
products at a favorable rate and as a
result, undermine its competitive
advantage and market share (124). The
economic factor of the industry is
characterized by the rising in raw material
which can influence the cost of production.
The other threat that faces the company is
high technology demand and change
which create a high expectation for
creativity and innovation for the
organization. In the case where the
company does not meet the requirement, it
risks being absolute
High change in quality standards, global
regulations, and food standards regulation.
This makes it hard for the organization to
be compliant and also expensive since it
needs to keep hiring consultants to aid in
understanding those regulations.
?
Biotech has a strategic plan aligns
with the infant formula industry.
Biotech Company Profile (p. 3)
asserts that it has a business
philosophy that promotes
adaptability to change and put into
account that the business
environment is continuously
changed. It has long term plans for
three years to ensure it is flexible. It
as well promotes innovation and
creative ideas.
Porter’s Five Forces Analysis
Competitive rivalry
Biotech Company will face intense competition in the industry. The key players
are Meiji, Abbott Nutrition, Nestle, and Friesland Campina companies. They own the
most significant market share of the industry. These firms as well have high financial
capabilities a strong brand, and innovative capability. Their products have a high
preference among consumers due to their brand name. They are also able to produce
quality infant formula compare to other companies because they have high technology
and know-how.
The aggressiveness of the competition is evident in advertisement and
marketing by the companies in this industry. They offer similar products, infant formula
for young children and newborns. The top companies have the funds to create
awareness of their products through huge television ads, posters, and brochures. They
offer discounts and promotional free sample. As a result, it builds their brand and
customers’ loyalty. The dominant companies also compete with cost. They have the
capability of manufacturing infant formula at a low cost. Therefore, they can sell their
product at a low price compared to other companies. Their products have high demand
over other infant formula companies as they are cheap and of excellent quality.
Bargaining power of supplier
Biotech will face a great force of bargaining power of suppliers in the infant
formula industry. The supplier can change the price of raw material to the extent it
affects the cost of producing infant formula. The industry is highly regulated with high
standards that extend to the supplier. Therefore, there is a shortage of suppliers. This
creates the issue of high demand for the resources since the buyers are more than the
supplier. They can raise prices as wish without any repercussion or negative impact on
their side. This implies the organization will face the challenge of high costs of raw
materials.
The suppliers also have the power to lower the quality of their product and
create a shortage of raw materials. They are likewise limited and hence have higher
bargaining power; the suppliers are in the position of lowering the quality of the material
to reduce cost and increase their profit. They also tend to limit the supply of resource to
increase the demand and as a result, shoot the prices. Shortage of raw material affects
the companies in the industries since it curbs their production. Additionally, it has
increased the competitive advantage of prominent companies since they are the one
who can have the benefit of saving cost. Most of them have partnered with suppliers
and so have an advantage of purchasing materials at a lower price compared to the
other organizations.
Bargaining power of buyers
The bargaining power of buyers is strong in the infant formula industry.
Therefore, Biotech will experience a lot of pressure from the customer. The buyers can
determine the price they purchase infant formula. Consequently, they will influence all
companies including Biotech to lower the price for their products. The sellers are more
compared to the buyer since not all the parents are warming toward the idea of using
infant formula. Consequently, the present customers have the power of switching from
one buyer to another. This creates competition particularly in price since each seller will
lower the price to garn more sales. Therefore, biotech will face the risk of reducing its
profit.
In addition to the price, they have the power to influence quality products and
excellent customer service. The buyers’ power challenges the companies to improve the
quality of their infant formula product. This is to boost their competitive advantage. The
buyers are also informed on the standard of the product and hence increased demand
for quality products. This benefits the customers while disadvantages the companies
since they increase their cost. The competition in the industry will also translate to
excellent customer service concerning addressing their concerns and meeting their
needs.
The threat of new entrants
Biotech will exert little threat to the existing organizations in the industry. This is
because the infant formula sector has a low threat of new entrants. It is not easy for
new companies to enter the market and profit. The primary cause for barriers for new
entrants is strong competitors in the industry that have substantial market shares. The
industry is dominated by strong organizations like Nestle, which can produce product at
a low cost. They can as well launch great marketing and have a strong brand.
Therefore, most customers have vested their loyalty in these countries, and if any
companies enter the industry, it is not easy to gain market share and make a profit.
High demand for advanced technology as well as influences the low threat of
new entrants. The infant formula industry requires advanced technology to produce the
product. These are expensive and require creativity and innovation, which is challenging
for most companies. Therefore, most companies find it hard to meet this requirement.
The high government policy is another block for new entrants. Various states have
different regulations, and the quality and food standard are strict. This is challenging for
any aspiring companies including Biotech since it expensive, require experts and time to
understand a country’s law. Lastly, the high initial capital needed to start an infant
formula company has as well discouraged entry into the industry. Therefore, it is
unfavorable for Biotech, which intends to enter this market since it will have several
obstacles…
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