The aim of this paper is to analyze the different strategy management approaches of the company Josef Manner & Comp AG – from now on shortly referred to as the Manner AG. Therefore, we are going to look at the Austrian family business as a whole, as well as the five best-known and well-liked confectionary brands it unifies: Manner, Casali, Napoli, Ildefonso and Victor Schmidt.
In order to gain an understanding of the company, the history of and key facts for Manner AG are described in chapter 2. After that, we analyze the business strategy in chapter 3 to become aware of its specific business objectives: First of all, it is necessary to describe the umbrella branding strategy for the public company (chapter 3.1.). Then we look at the generic competitive strategies (chapter 3.2.) and Strategy Clock (chapter 3.3.) for the five different brands and Manner AG as a whole. In chapter 3.3. we are trying to describe the Business Model Canvas for Manner AG. Afterwards, we are doing the same for the main competitors in the Austrian confectionery market: Milka (chapter 3.4.), Lindt & Sprüngli (chapter 3.5.) and Zotter (chapter 3.6.). In chapter 4 we look at the culture of Manner AG in combination with the Austrian culture. Chapter 5 is about the innovation strategies of the confectionary company so far, as well as what could be done in the future. As a significant part of the business strategy, chapter 6 is about business growth. Therefore, we look at Manner AG’s growth strategy (chapter 6.1.), expansion (chapter 6.2.), modernization (chapter 6.3.) and external growth (chapter 6.4.). After that, we give recommendations for future growth in chapter 6.5. At the end of the paper in chapter 7 we summarize the main points of our findings.
Table of Contents
1. Introduction
2. History and key facts of Manner AG
3. Business strategy
3.1. Umbrella branding
3.2. The generic competitive strategies
3.3. The Strategy Clock
3.4. Business Model Canvas for Manner AG
3.5. Business Model Canvas for Milka
3.6. Business Model Canvas for Lindt & Sprüngli
3.7. Business Model Canvas for Zotter
4. Culture
5. Innovation
6. Business growth
6.1. Manner AG’s growth strategy
6.2. Expansion
6.3. Modernization
6.4. External growth
6.5. Recommendations for future growth
7. Conclusion
Objectives and Research Focus
This paper aims to analyze the strategic management approaches of the Austrian confectionary company Josef Manner & Comp AG (Manner AG). The primary objective is to evaluate how the company maintains its competitive position by examining its business strategy, organizational culture, innovation efforts, and growth patterns in comparison to key market competitors like Milka, Lindt & Sprüngli, and Zotter.
- Analysis of Manner AG’s umbrella branding strategy and market positioning.
- Evaluation of competitive strategies using Porter’s framework and the Strategy Clock.
- Comparative analysis of business models across the confectionary sector.
- Examination of the impact of organizational culture on international operations.
- Development of strategic recommendations for future growth in international markets.
Excerpt from the Book
3. Business strategy
A business strategy must be developed by a company in order to decide how to operate in a particular market. It is therefore important for a company to choose the right generic strategy and adjust it in the light of the competitors' moves. There are two famous generic strategy models: The generic competitive strategies of Porter and the Strategy Clock (Johnson et al. 2012, 110). In this chapter, we therefore focus on the generic strategy of Manner AG. But before, we take a look at the umbrella branding concept.
When you look at Manner AG you will recognize that this company follows the strategy of umbrella branding: This concept represents a marketing practice which involves selling many related products under a single brand name. Umbrella branding can be challenging since all individual brands have to be coordinated efficiently. Companies decide to follow this strategy to enhance marketability of products by creating a huge brand equity for a single brand. This should lead to a competitive advantage since new product launches become easier and cheaper as brand recognition is high and the market is already set up. The psychological concept behind the umbrella branding is the main idea that any product that carries the same brand name is produced using the same high standards of quality (Marketing91 2018). The Manner AG has 5 individual brands: Manner, Casali, Victor Schmidt, Ildefonso and Napoli.
Summary of Chapters
1. Introduction: Outlines the scope and purpose of the paper, specifically the analysis of Manner AG’s strategic management and its position within the competitive Austrian confectionary market.
2. History and key facts of Manner AG: Provides a comprehensive overview of the company’s evolution, from its founding in 1898 to its current status as a successful Austrian family business.
3. Business strategy: Discusses the theoretical framework for competitive strategies, including umbrella branding, the Strategy Clock, and a detailed Business Model Canvas analysis of Manner AG and its main competitors.
4. Culture: Explores the influence of organizational and national culture on strategic success, specifically referencing Hofstede’s dimensions of national culture.
5. Innovation: Analyzes the company’s approach to product and process innovation, suggesting potential improvements based on current industry standards.
6. Business growth: Reviews the internal and external growth strategies employed by Manner AG, including expansion, modernization, and historical mergers and acquisitions.
7. Conclusion: Summarizes the key findings and provides strategic recommendations for the future development of Manner AG, particularly regarding international expansion.
Keywords
Strategic management, Manner AG, umbrella branding, competitive strategy, business model canvas, confectionary, innovation, organizational culture, market growth, internationalization, Austrian business, corporate strategy, sustainability, product development, Hofstede.
Frequently Asked Questions
What is the core focus of this research paper?
The paper focuses on analyzing the strategic management approaches of Manner AG, evaluating its competitive stance within the confectionary market.
Which key topics are covered in the analysis?
The study covers business strategy, organizational culture, innovation tactics, and various growth strategies including mergers and international expansion.
What is the primary objective of this work?
The main objective is to understand how Manner AG leverages its historical branding and strategic management to remain competitive against global giants like Milka and Lindt.
Which scientific methods are utilized in this paper?
The authors utilize Porter’s generic strategies, the Strategy Clock, Business Model Canvas, and Hofstede’s six dimensions of national culture for their analysis.
What does the main body of the paper discuss?
The main body breaks down Manner AG's specific business operations, including its umbrella branding, competitive landscape, innovation culture, and growth history.
How can this paper be summarized by its keywords?
It is characterized by terms such as strategic management, Manner AG, competitive strategy, innovation, business growth, and international market expansion.
How does Manner AG apply umbrella branding specifically?
Manner AG uses the umbrella branding strategy by grouping its five distinct brands—Manner, Casali, Victor Schmidt, Ildefonso, and Napoli—under a single parent brand image to ensure consistent quality standards.
Why is the Strategy Clock used to analyze Manner AG?
The Strategy Clock is used to gain a clearer understanding of Manner AG's pricing and competitive positioning compared to market rivals, focusing on visible price-quality relationships.
What specific growth recommendations do the authors suggest?
The authors suggest pursuing further growth by expanding into Asian and US markets, potentially opening flagship stores in China or Japan, and diversifying into the hospitality sector with a "Manner Hotel."
- Quote paper
- Katharina Feigl (Author), Maria Pulay (Author), Marlene Reumann (Author), Martina Zuber (Author), 2019, Analysis of the strategic management of Manner AG, Munich, GRIN Verlag, https://www.grin.com/document/925398
