Environmental Analysis Assignment: Expansion of Beechworth Honey In UK

Question

Task: Prepare environmental analysis assignment illustrating an environmental analysis report for initiating a market expansion for Beechworth Honey in UK market.

Answer

Introduction/Background
The concept of environmental analysis has always been considered as a viable strategic tool that aids the decision-making process of an organization by determining the impact of the internal and external factors (Nguyen et al., 2019). It is by depending on the potential impact of these factors that the managers of an organization form the structure and assists the employees into working accordingly. Multiple environmental factors can affect a firm's behaviour, but the well-recognized factors comprise of political or regulatory, economic, competitive, technological, social or cultural and consumer behaviour. Meanwhile, the sustainability concern has grown to be an equally important factor for determining the functioning of an organization. The discussion provided below is intended towards focusing on the international expansion of Beechworth Honey into the UK market. The discussion would explore the environmental factors and their impacts on raising opportunities and threats for the decision undertaken by the organization.

Overview of Beechworth Honeyselected in the context of environmental analysis assignment
The organization Beechworth Honey is known for producing good quality honey with the help of sophisticated beekeeping since 1880 and has been considered as one of the most beloved brands in Australia (Beechworthhoney.com.au, 2020). The organization and its business function have always been a family affair, and within their 130 years of knowledge about apiculture, they have never been known to expand their business overseas. Some of their popular products comprise of classic honey, bee cause honey, Australian varietal honey and speciality honey. As a part of the discussion presented below, the company is willing to expand its business in the UK and support the fundamental objective of introducing the population towards the importance of beekeeping for assuring food security.

Can you identify the environmental factors in the present context of environmental analysis assignment? Explain.
According to Letková (2018), the use of environmental factors and their analysis is essential for an organization because it permits in the proper evaluation of present strategy, settling of strategic objectives and in formulating strategies for major decision making. The environmental factors provided below would permit in determining the opportunities and threats available for the company during their expansion.

Political
The bee colonies in the UK has been facing the severe problem of decline due to the lack of government intervention in using relevant measures in tackling this particular issue. If the government fails to acknowledge the challenge that exists in the continuation of apiculture, then most of the businesses operating in this industry would eventually face extinction. Also, for a company like Beechworth honey, it would be not easy to continue the expansion of their business in the country if the sustenance and livelihood of the bees have not been assured. As mentioned by Lamiri (2018) with regards to the case scenario of environmental analysis assignment, about 24% of the bee population in all of Europe is subjected to extinction, and it is because of extensive farming methods, climate change, loss of biodiversity and the extensive use toxic pesticides in the farming methods. It is the reason why the number of beehives is also consistently declining. However, it is mainly the non-governmental organizations and the already established honey companies that are offering solutions to tackle this particular problem, whereas the government is reluctant in banning the use of toxic pesticides that is responsible for causing the decline (Gabbatiss, 2018). However, there is a constant initiative undergoing to ban such usage across Europe, but due to the UK's involvement in the stance of Brexit, there is a much lesser possibility of the ban being implemented in the country. Besides, the lockdown restrictions put out by the government to tackle the community transmission of the Covid-19 virus has reduced the level of productivity among the majority of the businesses in existence.

Economic
The beekeeping industry is responsible for a massive contribution to the economy of the UK. According to Knapton (2015), there has been a legitimate comparison between the beekeeping industry and the tourism revenue generated by the monarchy, and it showed that bees contribute £651 million annually in revenue to the UK economy which is £150 million more than what the royal family generates in the case of tourism. Meanwhile, the UK being the fifth largest economy in the world has to majorly focus on the aspects of the business that is responsible for contributing to the GDP of the country. However, the challenges faced by the UK economy have been raising major concerns with the business decisions that might be undertaken by the companies. According to Pettinger (2019), the economic growth is immensely low, and there has been a consistency in poor productivity, along with the impact of Brexit has made it difficult for the majority of the industries to sustain their businesses. Meanwhile, the impact of the pandemic Covid-19 has further reduced the growth rate of the economy because of the functionality of the businesses entrusted upon government decisions.

Figure 1: List of Economies Hit by the Pandemic
(Source: Walker, 2020)

From the figure 1 provided in this environmental analysis assignment, it is evident to consider that the condition of the UK economy has been heavily impacted because of the lockdown restrictions imposed by the government and it has severed the condition of almost every business operation.

Financial
According to Cbi.eu (2016), the UK is the second-largest producer of natural honey in all of Europe and is known for exporting honey all across Europe, and it is considerably increasing, but there has also been a substantial decline in the operations because of the challenges of extinction faced by the beekeeping sector. Thus, despite the potential that the entire sector has in providing a subsequent range of value in the production and sales of honey, it can open doors for the international companies to expand their businesses in these areas as well. However, it has been highlighted significantly by Knapton (2015), that the honeybee colonies have reduced in the UK from 250,000 from the 1950s to less than 100,000 as of 2015, which has been heavily impactful in the financial contribution made by the sector in the national GBP. However, the demand for natural honey is continuing to increase all across the UK and Europe as well, which indicates that the business of Beechworth Honey would be financially stable if expanded the operations in the specific country. The country has always been filled with opportunities in the case of FDI (Foreign Direct Investment) in every sector and the reduction in the corporate tax would make the business more viable in all across the country and for assuring their functionality as well.

Legal
According to Bbka.org.uk (2020), the set of directives that are intended to direct the majority of the businesses into doing the beekeeping for their honey business has been considered effective enough and yet heavily flawed. Also, the legislation would be successful in posing major challenges in terms of garnering a subsequent range of imports of the bees because it is limited to prevent the brooding of bacterial infections among the hives. There is a list of countries that are permitted for ensuring the import of bees and Australia is not one of them. According to the Bee Diseases and Pests Control Order (2010), only packaged bees from New Zealand are allowed in the UK, which should include a queen and 15,000 worker bees (Bbka.org.uk, 2020). It indicates that for Beechworth Honey, it would be immensely difficult to import the bees and would have to associate themselves with existing beekeepers and farmers to continue with their business accordingly. However, it has been claimed by Beefarmers.co.uk (2020), that the bees are not accurately protected under the legislation of the UK and the only intention is to tackle with the swarms of bees and not assure the protection of the different species that exist. There is no specific legislation that highlights proper inspection of the farms and the conditions in which they are bound to live. There is also no requirement of keeping a license for keeping bees in the UK, but it is often considered effective to stay in touch with the local associations, who can convey their expertise and highlight the key problems prevailing in the areas. One such example is that of British Beekeepers Association (BBKA), which is known for providing with a third party and honey insurance. For Beechworth Honey, it will be less havoc in setting up their business in the UK. Social

It is evident in the environmental analysis assignment that the demand for natural honey has been consistently growing in all of the UK because most of the population resonates with the benefits that are being provided by this product. Besides, the population of the UK is constantly growing and continuously understands the promising attributes of organic food consumption and are constantly eager to immerse themselves in garnering knowledge about the nutritional value of food items. According to García (2018), the demand for natural honey is a good sign because it would eventually allow the businesses to flourish, which in return would result in a genuine consideration of the companies and legal authorities involved in the preservation of the beehives. It is due to the demand for the natural honey that the exports to the UK have subsequently increased.

Figure 2: Export of Natural Honey to the UK
(Source:Wunsch, 2020)

Figure 2 provided in the above context of environmental analysis assignment insists on the demand for natural honey that has garnered prominence over the years and has equally witnessed turbulent behaviour from the business relations established with the other companies. Germany has always been the major exporter of natural honey to the UK, but due to changing norms and contradictions of the UK with EU (European Union), it can be said that the ecosystem of this particular industry is getting more challenging. However, the population of the UK has always been open to foreign brands with popularity and a substantial brand image. Thus, it would be effective to say that Beechworth Honey would have to option to garner a sufficient range of prominence among the population of the UK and thrive better in terms of their business sales. Beechworth Honey would have the possibility to garner a subsequent range of success in the UK because of the prevailing consumer demand.

Sustainable
Honeyassociation.com (2019), claims that there has been a subsequent shortage in the quantity of the world honey produced, which would lead to an increased cost of the raw honey. The worldwide shortage has been acknowledged mainly due to the lack of consideration from the side of the beekeepers and the farming techniques employed that have resulted in a honey shortage. For keeping up with the consumer demand for all kinds of food items, the farmers are often resorting to the use of multiple pesticides infused farming methods, which would eventually have a negative prospect on the pollination process enabled by bees. Since the year of 2007, there has been a constant debacle in the production of honey, and the climate change or the severe impact of human activities on the biodiversity is to be equally blamed for the puzzle that has been considered in this particular outlook of the majority of the operations. In the words of Heuër& Ehrensperger (2015), it is mainly the natural conditions that are responsible for heavily impacting the process of acquiring honey because of aspects such as colony collapse disorder (CCD), poor crop and more. In the UK, however, the declining population of the bees have raised more concerns because without their existence there is a possibility of losing fresh produce completely and the nutritional value of the food would eventually decrease (Sustainweb.org, 2020). The sustainable keeping of bees is something that is rarely encouraged in the UK, and the flaws existing in the legislation makes it even more challenging for foreign companies to continue with their business perspective. Thus, considering the readings developed in this section of environmental analysis assignment, it can be stated that Beechworth Honey would be negatively impacted due to the lack of sustainable methods employed in beekeeping.

Ethical
According to Friendsoftheearth.uk (2020), there is a subsequent degradation of ethical beekeeping in most of the countries, where the industries are extensively profit-driven and are more tended towards a commercial value generated from the functionality. Thus, the employment of an ethical outlook in the beekeeping for generating natural honey would be considered highly effective and beneficial for nature. Given that in the UK, the bee population is constantly declining due to a lack of sustainable and ethical outlook, for a company like Beechworth Honey that has been in the business for more than 130 years, it would be effective to be ethical in terms of increasing consumerism in the country. A balanced 'beekeeping approach' promotes a centralized approach to the entire system of hive management.

Meanwhile, Sances, Day-Watkins & Connell (2019), mentions the practitioners of ethical beekeeping ensure that the honey has been extracted from the hives during the Spring, which is after the bees have already eaten what they need for surviving the winter. The remaining amount is considered as an excess item and is not known to inflict harm on the bees. However, in some of the beehives existing in the UK, the honey extraction process begins before the end of spring itself. Thus, if Beechworth Honey associates themselves with the beehives and keepers existing in the UK, then there is a lesser possibility of acquiring unethical raw honey which would blunder the existing reputation of the organization overseas and in the home country as well.

Impacts on International Marketing Decisions: Opportunities and Threats Opportunities
From the environmental factors analyzed, it was mainly the financial factor; social factor and the legal factor are the ones that can be considered responsible for providing genuine and better opportunities for Beechworth Honey to initiate their business in the UK. These factors would ensure that there is a demand for their products in the market, and the legal jargons would make it convenient and easier to assure the continuation of the business operations of the company. Also, the profitable stance of the industry prevailing in the UK makes the opportunities extremely lucrative for the business operations of the company.

Threats
The political, economic, sustainable and ethical factors are mainly the ones inflicting threats on the company's operations in the UK. It is because of the pandemic and the initiatives undertaken to tackle this situation, and at the same time, the unethical approach taken by the beekeepers have resulted in the decline of the bee population. The falling GDP growth rate and a lack of consideration for prevailing climate change or keeping the biodiversity thriving challenges the existence of bees, which in return impacts the business as well.

Conclusion
This report on environmental analysis assignmentpermitted in the effective analysis of the environmental factors of the UK to determine a strategic direction for an organization named Beechworth Honey. This report eventually entailed in the genuine understanding of the prevailing situation for the companies working in this industry and the uncertainty they face due to the lack of ethical and sustainable approach for beekeeping. Besides, the number of the bee population is constantly declining and the UK has barely undertaken any major decision or caused a change in the legislation that would allow the population to survive and continue pollination.

References
Bbka.org.uk. (2020). Beekeeping Legislation. Retrieved from https://www.bbka.org.uk/beekeeping-legislation Beechworthhoney.com.au. (2020). Our Story. Retrieved from https://www.beechworthhoney.com.au/our-story/ Beefarmers.co.uk. (2020). What is Bee Farming? Retrieved from https://beefarmers.co.uk/about-bee-farming/what-is-bee-farming

Cbi.eu. (2016). What is the demand for honey in Europe?Retrieved fromhttps://www.cbi.eu/market-information/honey-sweeteners/trade-statistics

Gabbatiss, J. (2018). Bee-harming pesticides could face complete Europe-wide ban after EU report confirms threat. Retrieved fromhttps://www.independent.co.uk/environment/bees-pesticides-eu-ban-europe-threat-pollination-food-shortage-agriculture-clothianidin-imidacloprid-a8232671.html

García, N. L. (2018). The current situation on the international honey market. Bee World, 95(3), 89-94.

Heuër, A., & Ehrensperger, C. (2015). How the business of bees contributes to sustainable development? Retrieved from https://seed.uno/articles/blog/how-the-business-of-bees-contributes-to-sustainable-development

Honeyassociation.com. (2019). World honey shortage causes increase in raw honey costs. Retrieved from https://www.honeyassociation.com/world-honey-shortage-causes-increase-in-raw-honey-costs

Knapton, S. (2015). Bees contribute more to British economy than Royal Family. Retrieved from https://www.telegraph.co.uk/news/earth/wildlife/11679210/Bees-contribute-more-to-British-economy-than-Royal-Family.html

Lamiri, J. (2018). National Honey Bee Day 2018: What's Being Done To Save The Species In Britain. Retrieved fromhttps://www.independent.co.uk/life-style/food-and-drink/national-honey-bee-day-save-species-decline-pollinators-environment-pesticides-a8461426.html

Letková, N. (2018). Macroenvironmental Factors Affecting Human Resource Management-Case Of Slovak Republic. Social & Economic Revue, 16(3).

Nguyen, T. L., Tai, D. H., Quynh, D. M., & Giang, P. X. (2019). Macro factors affecting human resource quality in Dong Nai industrial parks. International Journal of Advanced and Applied Sciences, 6(7), 1-9.

Pettinger, T. (2019). Main Problems of UK Economy. Retrieved fromhttps://www.economicshelp.org/blog/5962/economics/main-problems-of-uk-economy/

Sances, J., Day-Watkins, J., & Connell, J. E. (2019). Teaching an adult with autism spectrum disorder to use an activity schedule during a vocational beekeeping task. Environmental analysis assignmentBehavior Analysis in Practice, 12(2), 435-439.

Sustainweb.org. (2020). UK bee keeping in decline. Retrieved from https://www.sustainweb.org/foodfacts/bee_industry/

Walker, A. (2020). Coronavirus: UK economy could be among worst hit of leading nations, says OECD. Retrieved fromhttps://www.bbc.com/news/business-52991913#:~:text=The%20UK%20is%20likely%20to,Spain%20and%20Italy%2C%20it%20said.

Wunsch, N. (2020). Value of natural honey exported to the United Kingdom (UK) from 2001 to 2019. Retrieved from https://www.statista.com/statistics/512754/natural-honey-export-value-united-kingdom-uk/