Blackmores Company Analyses Essay Example
Blackmores Company Analyses Essay Example

Blackmores Company Analyses Essay Example

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  • Pages: 10 (2561 words)
  • Published: February 4, 2018
  • Type: Research Paper
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While the company was founded in Australia it has since expanded into the New Zealand and Asian markets. For the past five years Blackmore has been voted Australia's 'Most Trusted Brand' for health supplements, securing its position as an industry leader. They believe in growth by acquisition and diversification of products and market channels, ensuring their ongoing success in a volatile and evolving world market. Blackmore has been a biblically listed company since 1985.

The company is managed by its board of directors under the guidance of Chairman Marcus Blackmore and CEO Christine Woolgather. In 2012 Blackmore expanded its operations by acquiring 100% ownership in Biochemical's, a leader in practitioner exclusive products provider. As with many large corporations, Blackmore has a significant amount of stakeholders which both affect and are affected by the company, the extent of whic

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h will be investigated in this report. The company's media presence will also be explored in relation to its financial sustainability and public perceptions.

The company has a very prominent and well- structured corporate identity which it has achieved through a number of corporate strategies. The strategies that have been addressed in this report include corporate design, communication and culture in regards to image, advertising, CARS and public relations. Blackmore has been a trusted name in health food supplements for over 80 years and they have retained their position as an industry leader through their values and commitment to quality and innovation. Their continued expansion and diversification will continue to see them succeed on a global scale.

Part 1 From its humble beginnings in the sass's, Blackmore has grown to be Australia's leading natural health brand, achieving thi

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by translating their extensive knowledge 938 Maurice Blackmore started Australia's first health care store in Brisbane, as well as collaborating with colleagues to establish the first naturopath associations and colleges in the country (Blackmore, 2014). In 1975 America's son, Marcus inherited control of the company and currently resides as chairman of the board (Blackmore, 2014).

In 1985 the company became publicly listed and currently has 16. 97 million shares trading at $26. 44 per share (Australian Securities Exchange, 2014). The current Head Quarters of the company is the Blackmore campus, located in northern Sydney. While the company was founded in Australia it has expanded into the international market holding strong positions in New Zealand and Asia. In Malaysia 1976, Blackmore opened its first base of operations in the region. They now have significant sales Thailand, Malaysia, Singapore, Hong Kong, Taiwan, South Korea and China.

They accomplish this by sourcing the highest quality ingredients from around the world, combined with innovative research and development to deliver products that have become industry standards in the health supplements sector (Blackmore, 2014). Blackmore manufacture, wholesale, distribute, market and retail their products creating a stable and reliable environment for the company to operate (Blackmore, 2014). While Blackmore does retail some of their products the majority is distributed to naturopath, pharmacies, health food stores, supermarkets and mass merchants (Blackmore, 2014).

Blackmore is also committed to a strong business performance, with a strategic direction concentrated on delivering growth and continuous improvement to increase and maintain their leading market position and to achieve continued success for the company and its stakeholders. (Blackmore, 2014). They believe in growth by acquisition and diversification of products and market

channels (Annual Report, 2013). By diversifying, Blackmore ensure their many does not become reliant on a single product or line which can affect the stability and sustainability of their business.

The largest shareholder and predominant stakeholder is Marcus Blackmore with 4,449,318 shares (Annual Report, 2013). Marcus has served on the company's board of directors since 1973 and currently resides as he chairman of the board for Blackmore as well as the spokesperson and face' of its corporate identity. The board comprises of six directors, including Chairman Marcus Blackmore and Chief Executive Officer Christine Woolgather (Annual Report, 2013). Ms Woolgather was promoted to her position in 2008, and under her guidance Blackmore as continued improve and maintain its leading market position. As CEO, Ms Woolgather is responsible for the direction of the company as well as the corporate governance it managers such as the Chief of Operations, Lee Richards, and managing director for Australia & New Zealand, David Felon.

In July 2012, Blackmore acquired 100% ownership of Biochemical's, a leading manufacturer of practitioner products in Australia (Pharmacy News, 2013). Biochemical's reflected Blackmore views on high quality and innovative supplements (Biochemical's, 2014) though opened up a new market for the company. Blackmore have chosen to operate Biochemical's as a stand- alone business, committed to preserving the practitioner only range of products (Annual Report, 2013). 1.

Media Presence In this section the report will provide an overview of recent news stories in regards to Blackmore and its industry practices. Controversial Blackmore pharmacy deal withdrawn' In 2011, Blackmore was the subject of wide spread criticism after it partnered with The Pharmacy Guild of Australia to implement a computer program that would prompt

pharmacists to promote Blackmore supplements when retailing certain prescription drugs. The deal was quickly denounced by the AMA and Pharmaceutical Society forcing the program to be withdrawn (Collect, 2011). Blackmore sales strong In the first half of 2013, Blackmore reported a $164 million in its group sales, a year- on-year increase of 29%.

The company also reported a 10% increase in its invoice ales, totaling $108 Million. (Pharmacy Daily, 2013). 'Blackmore 80th anniversary celebration' To celebrate their 80th anniversary, Blackmore pledged ARMS,OHO worth of supplements to old folks homes and underprivileged children's homes in Borneo. In conjunction the company also launched their CARS initiative, the 80 Deeds Campaign 2012 (Borneo Post Online, 2012) 1. Stakeholder Theory Table 1. 1 Authors Theory Attributes College et al. (2011) Stakeholders are key individuals or groups of individuals with vested interests or 'stakes' in a given decision or project. The stakeholders can be direct or indirect stakeholders. A nice overview of stakeholder theory that clearly defines who stakeholders are and how they can be affected. Solomon et al., (2011). Stakeholders refers to buyers, sellers, investors in a company, community residents and even citizens of the Nation where goods and services are made or sold.

This theory takes a good look at stakeholders from a marketing aspect though neglects stakeholders such as competitors, suppliers, distributors etc. Passion, (2012) Stakeholder theory advocates that firms bear responsibility for the implications of their actions. However, while a firm affects or can affect stakeholders, stakeholders an also affect the corporation.

A theory that addresses the often overlooked fact that stakeholders can have a significant impact on organizations and are not Just affected by them. Freeman (1984) Any group

or individual who can affect, or is affected by the achievement of a evolved and expanded upon. Jones & Wicks (1999) Stakeholder theory is a potential foundation for growth of the social science based research. This theory looks at the endless research possibilities and avenues to explore within stakeholder theory. Jones & Wicks (1999) Stakeholder theory is an umbrella term describing a class of narrative accounts, each eased on its own moral principles The theory looks at the different principals involved in defining stakeholders and their attributes to the overall concept of stakeholder theory.Associated Events Associates which have partnered with or receive sponsorship from Blackmore Sydney Running Festival, Quest for Life, etc. Charities Non for profit organizations which receive donations from Blackmore 12 different organization in past year including Red Cross, McGrath Foundation and WFM Employer Associations Organizations supporting Employers Trade Unions Organizations representing Employees Research Centers Commissioned by Blackmore to conduct research as well as affected by any in-house research done Australian Southern Cross University Media Influence public perceptions of Blackmore.

Also used as a medium for Blackmore to convey their corporate communication Fairfax, BBC, etc. . 7 Corporate Identity theory Corporate identity (C') can be seen as a firms planned presentation of its internal personality, behavior, culture, structure and strategy to its stakeholders (Amoco & Outbound, 2010). CLC is important to strategic marketing as it is the representation of a company that is perceived by both its internal and external stakeholders (He, 2012).

Perceptions of a company can vary, even between internal members of the organization such as employees and senior managers which can cause implications for the implementation of corporate strategy (He &

Blamer, 2007). Corporate identity immunization can be formal controlled strategies designated by the company as well as informal or unintended and non-deliberate representation of a company, particularly through the behavior of its employees (Amoco & Outbound, 2010). Formal company communication (Blowback & Ramirez-Pastilles, 2012).

An important aspect of CLC is a company's implementation of its Corporate Social Responsibility (CARS) strategies. CARS is the promotion of a business's orientation that takes into account stakeholder interests and is driven by the idea that companies are part of society and ought to contribute to social aspirations and goals (Outbound, 2013). This involvement in social, cultural and environmental aspects of the community plays a large part in how stakeholders view a company's identity.

A successfully implemented CLC plan can give companies a competitive advantage as it is a key differentiating factor between corporations and therefore is of strategic importance (He & Blamer, 2013), thus a company is more likely to be successful if its CLC is perceived better than its competition. However corporations face an increasing consumer skepticism towards responsible corporate initiatives, communication and identities (Huskiness & Kettle, 2012) 1. Blackmore Corporate Identity When analyzing Blackmore corporate identity, this report will focus on three key areas, all of which reflect and influence a company's image.

The Key areas are; Corporate Design Corporate Communication Corporate Culture Corporate design is essential for any company as it represents the business and is the first element of corporate identity that influences the public.It includes components such as logo, typography, colors, website banners, letterheads and physical elements such as uniforms or car detailing. Figurer . 1  Blackmore have selected a simple yet elegant logo design (figure

1 . ), choosing to use the company name as their logo. The word Blackmore appears in a serif font, with tight tracking in a shade of white on a cyan background.

The choice of font reflects Blackmore heritage and gives a subtle indication of its long term history in the industry as serif fonts are traditionally older type' based fonts compared to newer San-serif fonts designed for screen viewing. Cyan is a combination of blue and green, and along with its other variations such as turquoise is often associated with communication, self-awareness and initiative (The Design Manual, 2009). The use of which by Blackmore in its logo is a clever representation of the values of the company and the business it strives to be.

The white font of Blackmore creates a clear contrast, making it visually appealing as well producing a sense of purity (The Design Manual, 2009), representative of its focus on natural remedies. The use of these colors and font style are evident throughout their corporate communication providing a consistent identity for the company. Corporate Communication A company's communication is essential to create, improve or maintain a corporate identity in today's society.

The brand then becomes more attractive to the consumers as they are able to connect and understand the products (Kettle, 2010). Blackmore places significant emphasis on its corporate social responsibility, believing that a good CARS program not only benefits the community but company itself. During the previous year, the company supported 12 different charities as well as partnering with organizations such as quest for life and supporting programs like the Football initiative where they donate vitamins and supplements to those

in need (Annual Report, 2013).

The company also encourages its employees to participate in a matched donations scheme, whereby Blackmore matches a percentage deducted from their taxable pay hat is then donated to charity (Annual Report, 2013). One of the company's biggest initiatives is their partnership with the Blackmore Sydney Running Festival, a charity run that raised over $2 million for charities last year (Annual Report, 2013). As well as their community and charity work, the company prides itself on its environmental sustainability and its proud history of being a pioneer in the industry.

In 1978 Blackmore was the first company to produce a hair and skin range that was 'cruelty- free' (Annual report, 2013). Other initiatives include partnering with the World Wildlife Fund (WFM) and ensuring Blackmore CEO Krill is only sourced from fisheries that are sustainable (Annual Report, 2013). Public relations are an important aspect of Blackmore communication strategies, ensuring that their stakeholders perceive the company in the way they wished to be viewed.

The company achieves this through its industry practices as well as its communication to the public.For the past 5 years Blackmore has won the Readers Digest Award for Australia's 'Most Trusted Brand' when it comes to vitamins and supplements (Readers Digest Australia, 2013). This conveys an extremely positive perception of the brand that the company has used this to its advantage by numerously promoting it to its stakeholders. The products. Blackmore furthermore conveys perceptions of itself through other slogans such as 'Unrivalled Quality and 'Be your Best' (Blackmore, 2014).

Corporate Culture Blackmore takes great pride in the corporate culture which they have based on their five key principals, known as PURLS. These

Values are; Passion for Natural Health; Integrity; Respect; Leadership and Social responsibility (Blackmore, 2014). These aspects of their culture are both behavioral and aspiration, are supported by procedures and legal policy and form the foundation of the company's work practices (Blackmore, 2014). The company has created a culture of honesty and fairness where employees are treated with dignity and compassion as well as recognize experience and wisdom and how to use this to inspire and influence people to be their best (Blackmore, 2014).

As previously mentioned, Blackmore takes great pride in its social responsibility and this is reflected in its treatment of its employees and workplaces it provides. In 2009, the company opened the Blackmore Campus, a new generation workplace that demonstrates the company's approach to life, work, health, and the environment (Blackmore, 2014). The campus proudly reflects the company's values and commitment to quality with an extensive array of features that benefit not only the employees but the environment as well (Blackmore, 2014).

The Campus boasts features such as temperature sensitive windows, operable facades and access floors allowing the building to run air-con free for two third of the year and a water recycling system to name but a few of the environmental benefits of its sign (Blackmore, 2014). For its employees, the campus boasts an array of features like massage rooms, modern gymnasium, lap pool, yoga and Palates areas as well as a discounted health orientated staff cafe.

(Blackmore, 2014). 1. Corporate Identity Interpretation Blackmore have created a specific and strong corporate identity which they have conveyed and reinforced through their corporate design and communications, CARS, public relations and advertising strategies. Their emphasis on

natural health solutions, unrivalled quality and heritage are successfully conveyed to the public and TTS stakeholders through an array of mediums. This allows consumers to positively associate with the company's naturopath views and know they can trust Blackmore quality products.

While their message has varied slightly, their ideology and values remain clear to its consumers and stakeholders. This consistent implementation of communication strategies has allowed Blackmore to become an industry leader and to repeatedly claim the title of Australia's 'Most Trusted Brand' when it comes to vitamins and supplements. 1. 10 Conclusion For over 80 years Blackmore has been a trusted name in health food supplements. They have retained their position as an industry leader through their commitment to quality and innovation as well as their focus on CARS and creating a positive corporate culture.

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