Strategic Analysis of NutriNut 2

Contents
List of Tables 2
Introduction 3
Gap analysis: Capability Gap Analysis 3
Introduction 3
Capability narrative 5
Gap analysis: KSF – Capability Analysis 7
Introduction 7
Capability/KSF narrative 8
Strategy development 10
Introduction 10
Corporate-level strategies 10
Generic Business-level strategies 11
Strategies narrative 12
Strategy Evaluation 13
Introduction 13
Evaluative Models 13
Predictive Financial Indicators 14
Contemporary strategy evaluation 15
References 15
Appendices 20
Appendix 1 Resource Based Value 20
Appendix 2 Porter’s Five Force Model 21

List of Tables
Table 1 Capability gap analysis: NutriNut 3
Table 2 Capability rating by resource 5
Table 3 KSF Capability: NutriNut 7
Table 4 Rating KSFs Capabilities: NutriNut 8
Table 5 Product-market Matrix 1: NutriNut 11
Table 6 Product-market Matrix2: NutriNut 12

Strategic Analysis of NutriNut 3

Introduction
This critically analytical paper is in reference to the gap analysis made towards business and
corporate level strategies of NutriNut, the selected case study. In this paper the Capability
Gap Analysis, Capability Analysis of Key Success Factors, developmental strategies and
evaluation of the same by NutriNut are initiated for appropriate business development.

Gap analysis: Capability Gap Analysis
Introduction
The role of resources and their capabilities at NutriNut, concentrates in terms of creating
competitive advantage in the current market of Australia and its plan to be a part of
international business community. According to resource-based view (or the RBV), NutriNut
is very valuable as it has the R&D accumulated components of Macadamia oil. The
components of this oil are Palmitoleic and Oleic Acid that comes in combination with
Phytosterols and Linoleic Fatty Acid properties, whereby a unique skin care product gets its
shape. This is the ultimate strength of this company and the combination of the same is
restricted to its owner, Tracey Newman.

Table 1 Capability gap analysis: NutriNut
Functional area Capabilities
required

NutriNut
capabilities

Competitors’
capabilities

Operations Capability to
manufacture in
volume
Adding continuous

The manufacturing
units are limited to
Australian market, as
of now.

Red Earth Natio: has
the reputation of
growing faster with
appropriate service

Strategic Analysis of NutriNut 4

development to
operations
Prompt Services

Newman is particular
about the operational
developments
Services are already
prompt

responses

Neek Skin Organics:
is very popular and a
brand representing
extensive
manufacturing units
as per increasing
demands

Pricing Following income of
the targeted
consumers
Price ranges should
vary as per
manufacturing costs

High fixed costs of
the Nutri-Nut
products
Low level differences
among the products

MooGoo: Prices vary
as per the currency of
the respective nation
Iluka: Variations in
quantity and pricing
of the product for
different classes of
society
Mukti Organics: Got
fixed price as it
concentrates in upper
class of the society
for maintaining brand
image.

Strategic Analysis of NutriNut 5

Source: Adapted from Grant et al. (2014)

Table 2 Capability rating by resource

Source: Adapted from Grant et al. (2014)

Capability narrative
Based on the aforementioned status of the capabilities of NutriNut in comparison with its
competitors, this report lay focus on five basic capabilities that will assist the company in

Strategic Analysis of NutriNut 6

achieving better position amidst highly competitive market. These capabilities are discussed
hereafter.
Tangible resources, as in physical capability: In this analytical domain of assessing the
capability of NutriNut, it has bene discovered that the company is better than its competitors.
Its role is very clear in offering absolute organic product with excellent physical appeal
(Teece, 2007; Ichrakie, 2013).
Intangible resources, as in branding domain: Here, the position and role of NutriNut appears
same as Neek Skin Organics. However, it is important to note here that all the other
competitors are performing much better in establishing their brand image in the market.
Davila, 2009; Ichrakie, 2013)
Processes and systems, as in the selection of decision tools: According to the research
initiatives of Teece (2009) and Broadbent & Laughlin (2009) the business proceedings of a
company must have firm decisive tools. In this case NutriNBut relies absolutely on the
decision of its owner, whereas all the other companies follow the decision of the Board of
Directors, who are experts in diversified fields of manufacturing and marketing.
Organisational culture, as in the maintenance of workplace attitude: The competitive edge in
terms of workplace attitude has been widely discussed by Summers and Smith (2014) who
laid emphasis on transparency of communication among every section of the organisation.
NutriNut acts with excellence in this domain and this is better than its competitors.
Organisational culture, as in the maintenance of ethics & values: in terms of maintenance of
ethics and values, Bisbe & Malagueño (2009) and Schiller and Perera (2012) marks that an
organisational culture should be well established as per the selected marketing domain. The
role of NutriNut in this approach is remains average as it is also ready to take on adaption of
different cultures as per the targeted market in international expansion process.

Strategic Analysis of NutriNut 7

Gap analysis: KSF – Capability Analysis
Introduction
In order to develop organisational status the implementation of key success factors from the
external environment and the internal industry conditions must get the necessary competitive
capabilities for gaining sustainability and growth (Grant, et al. 2014). According to the
interpretations of Wu, et al (2010) for attaining regular growth, an organisation must have
adequate amount of understanding about its activities, skills and resources. These are the
aspects that must get analysd and reviewed in accordance to the competitive trend of the
market. There are some relevant resources and professional skills among the employees of
NutriNut that remain liable to get noted when it comes to the analytical platform of
understanding the market positioning of NutriNut.

Table 3 KSF Capability: NutriNut
Key Success Factors Capabilities
Research and Development Unique use of Macadamia Nut Oil
Innovation The management in particular ask for new ideas
and innovative approaches to extend marketing
expansion of the company

Communication Transparency All the employees and staff members are
comfortable in getting communication with the
owner of the company

Workplace Attitude At NutriNut there is a positive vibe in the

Strategic Analysis of NutriNut 8

workplace and there is no trace of discrimination
at any ground

Adaption The company is well prepared to adapt every
possible change that the new market demands

Source: Adapted from Grant et al. (2014)

Table 4 Rating KSFs Capabilities: NutriNut

KSF’s 1 2 3 4 5
Capabilities          
Research and Development          
Innovation          
Communication Transparency          
Workplace Attitude          
Adaption          
Technology          
Price          
Delivery Services          

Source: Adapted from Grant et al. (2014)

Capability/KSF narrative
Research and Development: The R&D of NutriNut is very highly sophisticated. Its optimum
and unique way of extracting the Macadamia Nut Oil is the strongest point of the
organisational business of the company.

Strategic Analysis of NutriNut 9

Innovation: Pollock, et al (2009) considered the essence of innovation as the key to the
success of any organisational strategy. In this case, NutriNut is very open to suggestions from
the employees and the staff members. It even encourages innovative ideas and changes for
organisational development.
Communication Transparency:This is sector that is in great demand for international
expansion of any firm or organisation (Felice and Petrillo, 2013). For NutriNut the
transparency within the organisation is very visible and the same is assured to reach the
consumers for building customer loyalty in the market.
Workplace Attitude: Positive workplace attitude is the key to organisational growth of
NutriNut in Australia. However, the company should also need to accept changes in its
workplace attitude as it decides to expand markets in Asian nations (Bentes, et al 2012). It is
here that the company must have resistance the risks and demands of the competitive market
abroad.
Technology: Currently, NutriNut is in demand of highly sophisticated technological backs up
for managing the extensive online selling in the European nations. This is a domain that must
get well nurtured and monitored with regular upgradation (Sara and Michael, 2007).
Price: The current pricing strategy of NutriNut is very fixed. This must be changed to more
flexible status as the company decides to cross borders (Kotler, et al., 2013).
Delivery Services: Based on the speculations of Poveda-Bautista (2012) on international
expansion, it is important that NutriNut organise its delivery proceedings as per the
favourable services in every particular country. In case, there is a delay the possibilities of
losing the client gets high.

Strategy development
Introduction

Strategic Analysis of NutriNut 10

According to the research led by Bogomyagkov and Machulskyi (2012), the corporate-level
strategies concentrate in the process of identifying the core competitors of a company, along
with the kind of businesses that can create threat for the company. It is also a strategic
management level, whereby the headquarter must remain efficient in handling all the other
business corporate units of the company. On the other hand, business level strategies is about
the adopt of the appropriate strategic structure to meet the competitive demands of the
company. This is about the process of making decisions in favour of eeting business oriented
competitive edges for a company (Bogomyagkov and Machulskyi, 2012).

Corporate-level strategies
In order to meet the current organisational demands, NutriNut must follow Resource-Based
View, in combination with agency theory for its global expansion. As marked by Daniel
(2015) the implementation of ‘agency theory’ concentrates in ‘value creation’ among the
consumers, and targets towards ‘wealth creation’ for the shareholders. An addition of RBV to
this theory can add the elements of innovation and uniqueness of the products of NutriNut
(see Appendix 1). As noted by Kraaijenbrink, et al (2010) the formulation of RBV can offer
room for new ideas in the new markets. This is something that can combine with agency
theory and will assist in the growth of NutriNut as shown in Table 5 below:
Table 5 Product-market Matrix 1: NutriNut

Strategic Analysis of NutriNut 11

Source: Grant, et al. 2014)

Generic Business-level strategies
For NutriNut, it is important to consider the cost leadership strategy and unlimited resources
model under Porter’s generic strategies. According to Drnevich and Croson (2013) the
generic strategic approach assists the company in pursuing the competitive advantage over
the targeted market. Since NutriNut is very fixed with its costing strategy, the generic
approach to the same will add consumer-oriented effectiveness to the prices of the products.
A detailed assessment of “advantage or necessity” led by unlimited resources model will
create demand oriented channel in terms of manufacturing the products for the respective
market as noted in Table 6:
Table 6 Product-market Matrix2: NutriNut

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