The Role of the Environment on the Impact of Product Strategy
The business environment was defined at the outset of the discussion with particular emphasis on its impact on product strategy. A Singapore-based company named BreadTalk Group Limited was used as a case study in order to illustrate how the environment affects product strategy. Several tools for strategic management analysis were discussed, with particular emphasis on the PESTL model of analysis. SWOT Analysis was also discussed to differentiate it from the PESTLE model. The PESTLE model was eventually used to showcase how the environment affects product strategy, using BreadTalk as a concrete example. Each PESTL element as described in relation to BreadTalk’s product strategy.Before any business enterprise is undertaken, an environmental scanning must be conducted to assess how such elements can affect the goals and objectives set by such business enterprise.A business enterprise produces a commodity, either a tangible product or a service, which it sells for a profit. In today’s modern world, such a product requires careful planning from the time a product or service is conceived to the time it has been rendered obsolete by competition or technological innovation, taking consideration of the prevailing business environment in which the product is to be marketed. How such a plan will transform such a product into a profit-making machine is what is referred to as a product strategy.In order to illustrate how the environment affects or impacts on product strategy, this paper analyzes the Singapore-based BreadTalk Group Limited, with a particular focus on its product management strategy for BreadTalk bakery boutiques. A strategic management tool called PESTLE will be used to concretize the impact of the business environment on product strategy using BreadTalk as the case in point.BreadTalk Group Limited is a publicly listed company based in Singapore (“Rolling in dough”, 2007). Its main businesses are in the manufacture of bakery products, operation of restaurants and food courts, and investment holdings.