Storck is a medium-size candy company headquartered in Berlin, Germany. Few years ago, Storck moved there from their original place of foundation, Halle/ Westfalen, Germany, where they still have located a vast majority of the production process.
21 years ago , they actually went international by selling their products, with strong brands domestically, to new markets abroad. These products today are Werther’s Original, Riesen, Campino, Toffifee, merci, and Mamba, among others.
In the following analysis, the whole “going international” process shall be simulated with the aim at a perfect internationalization of Storck’s. A focus within this comprehensive procedure will be laid at Storck’s entry into the Swedish candy market.
First of all, a strategy formulation will be carried out via both an environmental scan and an internal resource analysis. The environmental scan is put into effect with the help of a PEST analysis in order to identify opportunities and threats awaiting Storck. The internal resources will be analyzed with the object of discovering the company’s strengths and weaknesses.
After generally formulating the strategy, goals will be set with regard to Storck’ s strategy and performance in general. To achieve the goals set, the implementation of that strategy should be thoroughly thought through. The perfect implementation of an internationalization strategy manifests itself by choosing the correct entry strategy and the organizational structure most suitable to Storck’s needs.
At last, recommendations shall be given to Storck in terms of dealing with internationalization as a medium-size company with limited personnel, knowledge, and financial leeway.
Since the home market is exhausted, internationalization makes sense to Storck. Although the foodstuff industry often being equipped with a high national responsiveness, the strategy that should be formulated for Storck’s entry into Sweden should be the international strategy as the need for global integration is low, so is the one for national responsiveness.
Storck is right at the beginning of its internationalization, therefore the first entry strategy should be an import and export facility, whose main advantage is the perfect suitability to SMEs because of the “minimum of investment” required. But this means also a strong need for trustworthy foreign distributors. For the case of Sweden, this may not be a problematic issue as the legal surroundings are safe.
Table of Contents
1. Introduction to Storck and the Internationalization Process
2. Strategic Formulation and Market Entry
3. Environmental Analysis of the Swedish Market
3.1 Political and Legal Framework
3.2 Economic Conditions
3.3 Infrastructure and Logistics
3.4 Labor Market and Social Environment
4. Target Group Analysis and Product Adaptation
5. Organizational Recommendations and Future Outlook
Objectives and Core Topics
This essay examines the internationalization process of the German candy manufacturer Storck, with a specific focus on its market entry strategy for Sweden. The analysis aims to formulate a viable entry strategy based on environmental scans and internal resource evaluations, considering Storck's status as a medium-sized enterprise.
- Application of PEST analysis to evaluate the Swedish market environment.
- Evaluation of the international strategy vs. global integration needs.
- Assessment of logistical, economic, and political factors influencing FDI in Sweden.
- Strategic recommendations for organizational structure and target group marketing.
Excerpt from the Book
Storck’s entry into the Swedish candy market
Storck is a medium-size candy company headquartered in Berlin, Germany. Few years ago, Storck moved there from their original place of foundation, Halle/ Westfalen, Germany, where they still have located a vast majority of the production process.
21 years ago, they actually went international by selling their products, with strong brands domestically, to new markets abroad. These products today are Werther’s Original, Riesen, Campino, Toffifee, merci, and Mamba, among others. In the following analysis, the whole “going international” process shall be simulated with the aim at a perfect internationalization of Storck’s. A focus within this comprehensive procedure will be laid at Storck’s entry into the Swedish candy market.
First of all, a strategy formulation will be carried out via both an environmental scan and an internal resource analysis. The environmental scan is put into effect with the help of a PEST analysis in order to identify opportunities and threats awaiting Storck. The internal resources will be analyzed with the object of discovering the company’s strengths and weaknesses.
After generally formulating the strategy, goals will be set with regard to Storck’ s strategy and performance in general. To achieve the goals set, the implementation of that strategy should be thoroughly thought through. The perfect implementation of an internationalization strategy manifests itself by choosing the correct entry strategy and the organizational structure most suitable to Storck’s needs.
Summary of Chapters
1. Introduction to Storck and the Internationalization Process: Provides an overview of Storck as a company and outlines the objective to analyze its internationalization strategy focusing on Sweden.
2. Strategic Formulation and Market Entry: Discusses the choice of an international strategy and recommends an initial import and export facility due to Storck's limited capacity as an SME.
3. Environmental Analysis of the Swedish Market: Analyzes the political, legal, economic, and infrastructural stability of Sweden, highlighting it as a favorable location for foreign investment.
4. Target Group Analysis and Product Adaptation: Examines Swedish consumer habits, including the trend toward healthier products and the necessity for culturally adapted marketing.
5. Organizational Recommendations and Future Outlook: Proposes future transitions from an international division structure to global area divisions as the company grows and matures internationally.
Keywords
Storck, Internationalization, Swedish candy market, SME, PEST analysis, Import and Export, Global strategy, Local responsiveness, Foreign Direct Investment, Brand value, Corporate governance, Market entry, Consumerism, Strategic management, Logistics.
Frequently Asked Questions
What is the core focus of this study?
This work examines the strategic internationalization of the German candy producer Storck, specifically focusing on how the company can successfully enter the Swedish market.
What are the primary thematic areas of the analysis?
The study covers strategy formulation, environmental scanning (PEST), internal resource evaluation, logistical assessments, and marketing considerations regarding local cultural adaptations.
What is the primary objective of this research?
The goal is to simulate a "going international" process for Storck, providing concrete recommendations for market entry and organizational structure suitable for a medium-sized enterprise.
Which scientific methods are applied in this work?
The author employs an environmental scan via a PEST analysis, an internal resource analysis to identify strengths and weaknesses, and strategic framework mapping based on international management theories.
What is discussed in the main body of the text?
The main body evaluates Sweden’s economic and political stability, labor conditions, and infrastructure, while also addressing target group specifics and the need for localized marketing.
Which keywords characterize this analysis?
Key terms include Internationalization, SME, PEST analysis, Market Entry, Local Responsiveness, and Foreign Direct Investment.
Why does the author suggest an export strategy for Storck?
Given Storck's status as an SME with limited personnel and financial leeway, an export strategy minimizes investment risks while allowing the company to test the market effectively.
What is the significance of the Swedish labor market for Storck?
The study notes that while labor costs are competitive, Storck must consider the high influence of labor unions and the high productivity levels of the skilled Swedish workforce.
How should Storck address the Swedish consumer?
The author suggests that Storck should translate all packaging, incorporate humor, and potentially adapt products to meet the rising demand for healthier options with less sugar and fat.
What is the author's long-term outlook for Storck's structure?
The author anticipates that as Storck grows, it should transition from its initial international division structure toward a global area division, potentially moving into multi-domestic or transnational strategies.
- Quote paper
- Dipl.-Kfm. B.B.A. Cyril Alias (Author), 2005, Storck’s entry into the Swedish candy market, Munich, GRIN Verlag, https://www.grin.com/document/89968
