M&M’s Case Study Essay

1. Introduction and undercoatThe major purposes of effective leadership and management harp in timely observe of organisational environment, development of adequate to(predicate) responses to environmental challenges and further strategic planning and changes1. pertinent leadership strategies and implications squeeze out solve numerous profession challenges and stand by organisations to overcome diverse external as well as inside pressures and crises2. This strategic reputation is aimed at the identification of the key bank line challenges of M&Ms with external and indwelling abridgment and further development of solutions and specific recommendations on how effective leadership stern meet these challenges in this organisation.M&Ms is a universal confectionary shit, which belongs to def first-class honours perioder Incorporated. The brands name is an abbreviation for its creators such as damage and Murrie. The primary(prenominal) products of M&Ms ar cocoa an d insignifi crappert colourful candies with the letter m on i side3. The product was firstly launched during the World War II, and the main guest of M&Ms was the US army. In 1980, the substantial began its orthogonal grocery store expansion4. Nowadays, impair Inc., the p atomic number 18nt participation, is champion of the biggest confecti cardinalry manufacturers in the beingness. M&Ms chocolate beans ar sell in more(prenominal) than 70 countries around the world. The participation employs more than 40,000 people all over the globe. It should be mention that M&Ms is a private theatre, which finded from a family business line. In 2010, total tax income of the pargonnt companionship, Mars, constituted $30 billion5. M&Ms uses suave organisation coordinate, which makes the conjunction rattling responsive to the needs of its employees as well as customer. The main competitors of M&Ms are Hershey, Nestle, Cadbury and Kraft Foods6. M&Ms business strategy consists in maintaining high quality of the production alone with high volume and low prices.2. surroundings MonitoringResearch and development (R&D) department has eer been of spacious importance for M&Ms. It has been mentioned in the background that multi-level ability is one the main principles of the firm. To give this efficiency, the club relies on its own market inquiry and general industriousness publications and analyses7. The companys conquest formula consists in in-depth customer engagement practices, through which tastes and preferences of customers are studied and analyses. For instance, in 2002, M&Ms monitored customer environment through the mesh survey method, when the target population was proposed to select a current colour if candies. As a result, imperial candies were added to M&Ms production8. hikemore, it should be remark that in the early 2000s, the external environment began to apace change. In response, M&Ms take to develop adequate measures and strate gies in order to dwell competitive the market. In this case, M&Ms decided to implement the launch and learn approach, which can be considered an otherwise sure-fire method of monitoring the environment9. As a result, My M&Ms brand was introduced to the customers. The main topic of the untried(a) brand consisted in customisation. Customers could order chocolate beans, but preferably of the letter m, they could request their names or even images. In-depth market research and monitoring were in any case do after the launch of the overbold sub-brand. The new product turned out to be successful and appreciated by customers. In addition, it should be noted that M&Ms uses the benchmarking method when new marketing strategies are tested in littler focus groups10.3. External and Internal AnalysisIn order to understand external environment of a company, the PESTEL frame counterfeit is frequently implemented. It should be noted that PESTEL is an acronym, which stands for political, ec onomic, social, technological, environmental and legal environmental factors11.Political M&Ms sells its chocolate beans in more than 70 countries all over the world12. If the government of a rude is unst fit, it can negatively affect the firm and its sales. For instance, quotas on imports and other restrictions may be introduced. In these conditions, M&Ms will be able to bring only a specific descend of chocolate beans to the local market. The main examples of such countries are Serbia, Thailand, China, etc.13. The main M&Ms markets of posture are the US and the UK, which are characterised by low political risks14.Economic The global economic crisis has negatively affected customers buy capacity. However, it should be mentioned, that chocolate beans are a fast-moving consumer good. Thus, it can be sold promptly even during economically pressing times and at low prices unlike cars and electronics, which are durable and costly commodities15. As a multinational company, M&Ms o pens new factories in different countries. The company hires employees and helps to decrease unemployment in developing economies such as Brazil, Kazakhstan, Mexico, etc. In turn, M&Ms also suffers from unemployment and other macroeconomic conditions in these economies. The market has reached maturity yet, neither in the US, nor in other countries16.Social The company produces chocolate beans, which are bringed by wide categories of purchasers, from kids to adults. The companys products are genuinely popular with special events such as weddings and birthdays. The public is worried about the quality standards used in the company17.Technological Contemporary marketing strategies require from M&Ms using online sales and online customer involvement. Customer engagement marketing methods are also required where the internet serves as the playground18.Environmental factors chocolate beans production cannot be classified as extremely damaging to the environment and employees he alth. However, M&Ms depends on the production of cocoa beans and weather conditions in which they are cultivated. Such input material as cocoa beans are unlikely to run out19. sub judice factors M&Ms has to follow the regulations of the US Department of Agriculture (USDA), Environmental Protection procedure (EPA) and Food Drug Administration (FDA) on the chocolate candies production20. M&Ms has to follow the statute in all countries where it operates. M&Ms has to protect its employees rights and freedoms.The next step of environmental see is SWOT summary. This analytical framework will help to identify the companys internal, including strengths (S), debilitatednesses (W), opportunities (O) and threats (T)21. The SWOT analysis also helps to determine whether the companys imagerys and capabilities are enough to compete with other organisations in the marker22.Strengths muscular and well-known brand name Belonging to the family of the largest confectionary firm M&Ms opera tes in over 65 countries around the globe23 Good reputation among customers and suppliers soaring operational efficiency High-quality products24 M&Ms chocolate beans are the best sell candies in the market new-fashioned brand My M&Ms, which offers customisation Strong leadership and teamwork Good resource allocation Ability to listen to employees and customers ideas25.Weaknesses M&Ms promotional campaigns require healthy keep Employees are resistant to change Complex business environment, which causes interest conflicts Flat organisational mental synthesis has some disadvantages. For example, one employee may name a few bosses. exceptmore, this structure type may limit the companys result. Mars Incorporated was criticised for contracting with low-cost African suppliers of cocoa beans, who used child labour26 Lack of innovative ideas and no recent innovations in the product range.Opportunities Further market expansion Wider diversification of products in the foreign markets To meet customer demand Technology improvement and development27 Innovation Creation of brand-new goods Elimination of disadvantages link to flat structure28.Threats Lack of innovations can cause shifts in consumer tastes. To be more specific, customers can stop buying old and outmoded candies and start buying new candies with innovated product and package visualize. The number of competitors may increase29 Further growth of trade barriers Decrease in consumer demand M&Ms rivals innovated design can give competitive advantage.The Cultural Web analysis helps to see a more comprehensive and big picture of the companys culture30. The framework consists of 6 separate dimensions, which are stories, symbols, indicant structures, organisational structures, control systems and rituals and routines31.Stories Mars Incorporated, the owner of M&Ms, is one of the sterling(prenominal) examples of the so-called American dream realisation. Founded in 1911, Mars becam e a multi-national company with more than 50,000 employees very quickly. Workers of the firm are viewed as the most valuable asset. This idea is one of the main companys focuses. Employees work in a highly motivating and shake environment33. They are devoted bonuses for coming to work on time, which stimulates their performance and productiveness34.Symbols Small panned chocolate candies covered with dyed edible shell, which does not allow chocolate to range in ones hands, prove to be the major symbol of the company. Furthermore, the letter m, which stands for M&Ms name is a highly placeable symbol. In addition, excellent quality and great taste have made M&Ms the worlds best selling candies35.Power Structure Mars Incorporated, the parent company of M&Ms, was established as a family business. It was founded by Frank Mars in 1911 in Tacoma. Today, John Mars, a grandson of Frank Mars, is the chairman of the company. neat of Minnesota Michaels is the companys CEO at the moment. t otally the serious decisions in the company are made by the members of the Mars family36. Middle managers are given less power in the organisation. They are prudent for insider management, and do not participate in winning strategic decisions.Organisational Structure The company has a flat organisational structure. This means that the number of intermediates between top managers and employees is trim to a minimum. Hence, the role of middle managers is nearly eliminated37. Employees are actively involved the corporate decision-making process and can slow access the senior management. This type of organisational structure allows improving communication between management and workers. The company is teamwork oriented, which is another benefit of the flat structure type38. keep in line Systems It has been mentioned that one of the major corporate values and principles in Mars and M&Ms is efficiency. The companys aim is to generate the maximum gross using minimum input materials and resources. some other all important(p) value is quality, which needs to be given considerable attention and accurately controlled. The company relies on an internal control system, which guarantees achievement of such objectives, as efficiency and compliance with the relevant laws and regulations. Other departments of the organisation are manufacturing, marketing, sales, human resource, research and development, supply, communications and finance39.Rituals and Routines Unchanged design of chocolate beans since 1941 may be viewed as one of the key rituals of M&Ms. The firm regularly organises informal events for its employees, which improve communication between organisational members and help learning in the workplace. The slogan of the company illustrates the main distinctive feature of M&Ms chocolate beans Melt in your mouth, not in your hands40, which builds strong associations with M&Ms candies. This slogan stimulates customers to test the firms promise. Hence, feeding choc olate beans that do not melt in hands has become another important ritual.Another important analytical framework, which helps to understand the overall degree of rivalry in the industry where the company operates, is porters Five Forces41. According to this model, each industry is influenced by five forces, namely supplier power, buyer power, threats of new entrants, threats of substitutes and degree of rivalry.Supplier power at that place are megabucks of suppliers all over the world that sell cocoa beans. M&Ms buys considerable amount of cocoa beans and is dependent on prices set by the suppliers. Even insignificant growth of prices can result in increase in the prices for the final production by M&Ms. On the other hand, M&Ms can easily switch suppliers since it does not have long-term obligations. Thus, supplier power is low42.Buyer power M&Ms is presented in more than 70 countries. This means that the firms customers are many and they are highly fragmented. No bingle custome r can significantly impact M&Ms and their pricing policy. It can be concluded that the buyer power is low43.Threats of new entrants New entrants in the confectionery market are possible. However, new market players need to meet huge capital requirements in order to enter the market and start accumulating large market share. For this reason, it may be fictive that the threats of new entrants are medium44.Threats of substitutes There are plenty of other large multinational companies and highly recognisable brands in the confectionary market (e.g. Kraft Foods, Nestle, Hershey Co and Cadbury). If M&Ms will demonstrate weak innovativeness and creativeness in product range, customers can easily switch to alternative manufacturers and their goods. Threats of substitutes may be evaluated as high45.