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Strategic Analysis Of Thorntons

Strategic Analysis of Thorntons and the
Confectionary Market

This essay will discuss the problems Thornton’s has experienced over the last few years and what challenges they face in current period between 1997-2002, examining the competitive environment and internal analysis as well as external environment (Political, Economical, Sociological, and Technological - PEST). It will also identify and evaluate Thornton’s strategic development from set up to the present time using the relevant framework and strategic tools. The essay will conclude by identifying possible strategies that Thornton might pursue in the future with ambiguous reasons supporting these recommendations.

Political

Economical
• Mail order response provided an economic response to seasonal pattern of demand. Thornton cafes introduced twist to the seasonal based Thornton’s.
• Downturn in French economy.
• Devaluation of pound sterling.
• Not achieving profit and demand targets.

Sociological
• Reduction of labour through manufacturing automation by up to 80% and helped to reduce the use of temporary employment.
• Seasonal Demand (in particular Easter, Christmas, Valentines Day and Mothers day).
• male customers, children and teenagers lowering the overall age profile of customers

Technological
• 1998, Thornton’s went on a £3m programme to install EPOS (electronic point of sales).

• In 1999, launch of an Internet and interactive television sales operation. Thornton had to invest a total of 53m in new factory, warehousing and till systems.
Figure 1: PEST factors for Thorntons (Jennings, 2000)

Thornton’s have received numerous other problems other to those stated above in figure 1 of the PEST analysis ‘Some franchisees had been very committed other operated units had come very run down’ (Jennings, 2000), hence creating a very noticeable impact on Thornton’s image as a specialist business. Thornton’s efforts were aimed at providing the franchises with a structure...