Associated British Foods

444 Words2 Pages
What would see as being the advantages and disadvantages of ABF’s strategic Approach (with multiple SUBS working in a number of industries) The demand, on each line of production of ABF, helps it to grow faster while most of the products remain seasonal. If one product fails or goes into recession, the other products will maintain the group financial statement. On the other hand, the external environment affects each product separately, especially with the financial crises in Europe. ABF realized that and kept each business independent, which is one of the strength of ABF. However, holding multiple SUBS is one of their major threats. Takeover of other companies is possible for the sub independent businesses. ABF should work to avoid this scenario. Another disadvantage is the prevalence of new private companies in different sectors. Such companies would not only be a threat to the independent business but to the group as a whole. 2) ABF does not market its corporate brand. Rather, it promotes the brands of its SUBS. How would you evaluate this approach? Would it be easier to simply name all of its products “ABF”? Understanding the market and the consumer is not that easy, each sector needs different explanation and approach. One name could be related to different sectors and that can affect the user perception and his/ her ability to link the name to the sector or product. For example, it would be hard to link between food and fashion under the same name. In marketing, the focus should be on the needs of the consumer. Reading what the user wants is the key to success. A brand reminder needs to target the right audience; sending information to wrong audience means waste of effort with zero revenue. In both cases, the group needs to use different channels for each product and each sector. 3) Having a major retailer (Primark) in the portfolio of what is
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