Environmental Analysis Blackmores Limited †Myassignmenthelp.Com

Question: Discuss About The Environmental Analysis Blackmores Limited? Answer: Introduction Blackmores Limited has emerged as a leading player in the pharmaceutical industry. The company has confirmed capability based on the exemplary research and natural health. In fact, it has based its principle activity on marketing and development of health products are related supplements as explained by Brennan (2015). For more than its eighty years of operation, the company has remained the industry leader in this region. Blackmores is headquartered in Sydney, where it has operated since 1932. Blackmores Ltd is an indisputable brand in the countrys consumer health industry. Based on the findings of Stapleton (2016), it controls over 7 percent and 17 percent of the consumer healthcare and dietary and vitamin supplements respectively. According to KPMG (2013), Blackmores is known for marketing and developing the products that befits the health needs of customers across the Asian region including Malaysia, Thailand, and Singapore. Today, Asia is becoming the best performing Blackmores Ltd.s market. Apart from the prospect in the Mainland China, the company anticipates strong growth potential in the region to benefit. Following the companys move to acquire Fit-BioCeuticals, the company has ridden on the growth potential of the BioCeuticals business to dominate the market (Euromonitor 2013). However, it is possible to understand the business potential and prospects based on the environmental analysis as evident in this article. Internal Analysis Management team Blackmores Ltd boasts of qualified management team who have enabled it to dominate the Australian health industry. As the centre of every operation is the Chief Executive Officer, who is answerable to the board of directors. The shareholders of the company entrusts the board of directors to see through the activities and operations of the organization. The board of directors, the CEO, and the executive leadership teams are essential in the legitimization, regulation, and compliance. The sustainability manager is also important in the organisation (Blackmores 2016). The sustainability manager is meant to facilitate and govern the organization. Blackmores human resource department has played a crucial role in strengthening the firms sales growth. This has been achieved by ensuring that places the right people at the right place and the right time. The CEO is the overall manager of the organization. Christine Holgate is the CEO and MD of the organization. She boasts that over thirty years experience in diverse international leadership in various regulated industries, such as finance, telecommunication, media, and healthcare (Blackmores 2016). She has held this position since 2008. Before her appointment, she had held public board experience of about twenty years around the world including Asia, Australia, and the Americas. She has the mandate to lead the teams through change thus enhance the organizational growth and expansion into the region. Currently, the CEO holds three post-graduate diplomas and Masters in MBA (Blackmores 2016a). Braun Lesley is also a director, Blackmores Institute. She is acting as an adjunct associate professor specified in integrative medicine at Western Sydney University. Professor Braun is an adjunct senior research fellow and who has held various research positions at the Monash and Alfred Hospital (KPMG 2013). Nathan Cheong is the managing director at the BioCeuticals is a highly experienced individual in contemporary medicine. Since joining the company in 2012, Nathan has served as the companys Sales and Marketing directors. He earned promotion to become the MD in 2014. The management team also have strong personalities such Peter Osborne, MD, Asia, Aaron Canning, CFO, Richard Henfrey, COO, central services, and David Fenlon, MD, Australia and NZ. Cecile Cooper the companys sectary and doubles as the corporate affairs director. Financial Resources Blackmores is the leading Australian largest supplement and vitamin company. Given its dominance in the industry, it has marshalled enough resources to faceoff with other rivals in the market. In 2016, the companys sales doubled thus show its book rapidly grows. At the same time, Blackmores profitability has grown for more than 300 percent from 2013 up to 2016 (ASX 2013). Indisputably, growth management and control have proved difficult to manage. In the financial year 15 and 16 saw, the company improve its sales growth thus reflecting an increase in gross profits. The high and improved volumes of the sales confirm the company has incessantly reported improved gross profits. Regarding the liquid aspects of the company, Blackmores reported 0.55 as its operating cahsflow ratio in 2013 (World Economic Outlook 2013). This justifies that the firms short-term liquidity is strengthening as it reports growth in cash ratio, quick ratio, and current ratio. The solvency ratio, especially following the acquisition of the BioCeuticals. The 2012 acquisition show it experience high solvency ratios and reduced interest coverage ratios due to the increased debt levels (Vita Life Sciences 2012). Blackmores also reported increased rate of solvency risks. However, the insolvency risk has no significance because the acquisition was performing beyond the expectations. In fact, the BioCeuticals was already contributing profits to the parent company (ASX 2013). Other resources The company has also established a strong infrastructure to support its operations and activities beyond the reproach. With the new environment embracing technology, the organization has invested significantly into achieve unique and quality health products. Through the HR department, it has maximized the productivity and performance of workers (World Economic Outlook 2013). Based on its exemplary efforts to serve the interests of customers, Blackmores has invested heavily quality health products to maintain strong image. Capabilities Blackmores is a real force to reckon in the Asian pacific region as it dominates the natural healthcare industry. It continues to operate product formulation and innovation by sourcing the best quality ingredients and programs thus complies with the standards of marketing and manufacturing practices. The operations such as distribution and sales have ensured it meets the expectations of consumers and customers (Vita Life Sciences 2012). In fact, it has aligned its strategic priorities to the activities. The consumer centricity is one of the most important operational plans that the firm has continued to use to promote quality products as supported by access and evidence to its trusted advice. Recently, the organization doubled its brand investment based on the understanding of the consumer in the pacific region. The company has further focused on the numerous opportunities available, especially in the healthcare industry and inherent risks. The company continues to take make positive changes and transformation because of its robust risk governance framework (Blackmores 2016). The companys vision is inspiring, educative and informative. It has this used it to ravel the quality, innovative, and new healthcare solutions. External Analysis Macro-environment Global This company a leading organization with a strong brand image in Australia and overseas. Apart from the strong roles abroad, the company has intensified its high-level sales and activities domestically thus making it difficult to effectively compete. The company also operates in New Zealand, Malaysia, and Singapore. By 2011, the comp any had made deliberate efforts to enter Korea. In 2012, the company was affirming its ability to stretch the operations beyond few locations. This saw it acquire BioCeuticals at $40 million. This made the company a significant player in the Australian market. The Blackmore can never compete effectively in the high levels of activities. This makes it impossible for it competes in the global medical care. Economic The Australian domestic economy was stable. The economy experienced a growing demand for its commodities, especially in some industries like mining (World Economic Outlook 2013). The economy was also booming as employment rates improved. According to Vita Life Sciences (2012), the companys nominal income reached about 10 percent thus increasing the consumption rates in the economy. Accordingly, the interest rates in this country have not changed long. It remains at 4.7 percent and the government has projected as positive interest rates. With the continued expansion experienced in the global economy, the Australian government can sustain its employment growth rates as explained in Vita Life Sciences (2011). Unfortunately, Blackmores was a victim of the recent economic crisis. However, it benefited from high consumer confidence levels that saw the household incomes improve. Political The changes experienced in the political environment where a new government was elected. Such changes could bear economic impact on the society (Donaldson 2015). For instance, with the defeat of the liberal government, the lowering of taxes and deregulation in the economy would favour economic growth and development. Socio-cultural Australia is a multilingual society with over 20 various languages. Interestingly, sixty percent of their workers are non-English speaking communities. It is important consider them for frontline jobs. Blackmores has further respected the Equal Opportunity for Women (Blackmores 2016a). Of the employees who never report about the gender rule are in Asian region. The company has initiated various strategies to help the organization defeat Serenda Waterfall project. The company has further introduced campus there its customers or students can acquire relevant indoor landscape training programs (Cutler 2015). This compass has the breakout spaces with rooms for naturopathy, massages, and gym. The gym facilities encompasses the pirates areas, yoga, and lap pools. Demographics The companys products target nearly everyone, who aspires to use them. The company has designed products that meet the expectations of everyone. Both male and females aged 18-99 years would prefer the organizations products (Blackmores 2016a). Nonetheless, this comp any targets the mothers aged 19-49 years. For Blackmores, ageing is never an issues because its uses the natural vitamin product. This ensures that the product it offers is safe for use and healthy. These products thus improve the welfare of the society. Technological Technological advancements have come to salvage the global business environment. With the new technology, the company has staged social media as part of its camping mechanism (Donaldson 2015). With social media platforms, Blackmores stands a better chance to expand its market. Microenvironment These are important business factors affecting the organization negatively and positively within its environment (Blackmores 2016a). These factors include employees, suppliers, competitors, and consumers. Importantly, good relationship between these stakeholders would benefit them. Competition In Australia, the company faces little completion, especially from Australian fresh food. This is evident because the market remains fragmented to leave the large suppliers to control the market activities (Bartlett, Butler, Rogan 2016). Legal The Australian government has adopted stringent control measures thus limits growth and development in the country (Blackmores 2014). With the Pharmaceutical Benefits Scheme in Australia, the expenditures in the country were kept under the watch. Demand The demand for these products had increased with ages. The elderly were vulnerable to risk diseases as explained by Global Economic Prospects (2013). The market demand is essential in determining the market price of the natural health products offered by Blackmores. Conclusion Blackmores 80 years of ostensible campaign has proved to be a livelier. Based in this environmental analysis, the company is appealing to younger generation and it has considered the loyal customers. Blackmores can be viewed is undervalued business thus makes it possible for it to be a strong buy depending on the valuation. Regarding the environmental analysis, it is evident that its expansion and diversification strategy will offer it the best capability that can sustain growth. Without a doubt, Blackmore can utilize its current strategy to maintain its market leadership roles in the pharmaceutical industry in Australia. In fact, the strategy has ensured it overcome fierce competition evident in this industry. Indisputably, the Chinese market offers the best growth opportunity. Conversely, the pharmaceutical company should overcome the anticipated setbacks that are evident in the Chinese market before maximizing the opportunities. Therefore, the environmental analysis has offered th e best opportunity for the company to deliver the natural care services and products efficiently. It has thus emerged as the natural health solution provider. References ASX. 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