Bush Boake Allen Marketing Essay Case Study

Bush Boake Allen Marketing Essay Introduction

Business environment analysis helps an organization like Bush Boake Allen to study its internal and external strengths and threats. It also helps a company scan the areas of growth and improvement. SWOT and PESTEL are two tools used for this purpose. It helps the company to scan the problems within and outside the company, improve its strengths and grab the new opportunities available. The following study focuses on the SWOT and PESTLE analysis of a US based company, Bush Boake Allen. It manufactures flavour and fragrance and aroma chemicals. This study will shed light on the internals am external factors of Bush Boake Allen Company with relation to its SWOT and PESTLE analysis.

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Bush Boake Allen Marketing Essay SWOT

Bush Boake Allen Marketing Essay Analysis

Strengths

Bush Boake Allen operates in 39 countries (1998) and hence a stronghold in the market. As per the case study of Bush Boake Allen, it has a strong hold in the market and delivers Quality products. It operates in around 60 countries in 38 locations. It is the 6th largest company in the world. 

Weakness

Even though the company has a strong hold in the market it has been under the threat of being purchased by its immediate competitor IFF. The main reason being that the company does not have a consistent growth of revenue and net income due to customer dissatisfaction as the company’s quality products have decreased over the years. 1997 revenues rose to $491 million, but its net income slipped slightly to $31 million (Company-histories.com, 2019). In 1998, although revenues dropped to $485 million, net income was a record $33.7 million. As per the case study of Bush Boake Allen, it has also been observed that the company spends a lot of its revenue earned in research. This has been one of the major reasons of the company’s downfall. The company also has little to no online presence and information. This has affected it sales as less information is available to the customers.

Opportunities

Online marketing and social media advertising can help the company cut on its marketing cost. As the company has worldwide connections it can tie up with local business to expand and increase its revenues (Wicaksono et al. 2016). Globalization and liberal laws available worldwide can help the company gain more market value and expand at different locations. 

Threats

The company faces major threats from its two competitors International Flavours and Fragrance (IFF) and Givaudan Roure from. As per the case study of Bush Boake Allen, it has been observed that Brexit and increasing choices available in the market has affected the international sales of the company. High costs of running the company in the developed countries and government laws that impose high environmental and import taxes has been one of the major threats faced by the company (Tuba, 2016).

Bush Boake Allen Marketing Essay PESTLE

Political

High tax rates up to 24% have negatively affected the sales and revenue, leading to IFF consider its acquisition, its main competitor in 2000 (Niculescu et al. 2015). Mandatory benefit laws by the government like allowing unions, minimum wage and safe working environment loads the company with a lot of responsibility as the company works with a lot of chemicals.

Economic

Economic factors such as low GDP and high inflation in 2017 can have a negative impact on the company. In countries with low GDP, Bush Boake Allen has to provide with low cost materials has hence, cutting down on its income. Bush Boake Allen can benefit a lot in countries like India as the labour cost here is less.

Social

As per the case study of Bush Boake Allen, the company has been unable to provide high quality products which have lead to customer dissatisfaction leading to loss of customers and revenue. As consumers now have more options to choose from, they have been using less of Bush Boake Allen products.

Technological

Bush Boake Allen has been lagging behind in the technological aspect and has failed to cope up with the changing technological advancement. As per the study of Bush Boake Allen it has less online appearance and thus being unable to provide with relevant information for new and old customers (Cen and Wang, 2019). This has forced the consumers to other companies. Also as the company has been facing financial problems the cost of keeping up with the technological advancement in machinery sector has pulled the company’s finances further down.

Legal

Legal laws provide safe and fair working environments for the employees. The Fair Labours Standards Act of 1938, states that the employees have to be paid a minimum wage that has been set by the government. These laws do not allow the company to cut down on wages at time of emergency and thus, affecting the company’s finances.

Environmental

The company has to take into consideration the environmental factors. As the company uses a lot of chemicals it has to have waste management and recycling strategies. As per the views put forward by Wicaksono et al. (2016), different countries have different laws related to environmental protection. However, not being accountable towards the environment has caused the company low brand image in the market which on the other hand affected its profit making aspect. As per the case study of Bush Boake Allen, climate change also plays an important role. Bush Boake Allen has to develop a flexible supply chain. If not so, a sudden change in the climate can delay its shipments.