Business School
MSc International Business & MBA (Graduate)
Module: Strategy and Globalisation
Name: Phillip Shannon
Tutor’s Name: Dr. Colm Fearon
Assessment Type/No: 2
First Submission Yes
Submission Date: 18th January 2019
Word Count: 2200. Excluding quotes, references, grids, pictures and diagrams.
P.shannon Students must sign here to show that they have read and adhered to the University
plagiarism regulations as stated in the student handbook.
,1 CONTENTS
2 Introduction .................................................................................................................................... 3
2.1 English Tea Shop ..................................................................................................................... 3
3 Tea industry trends ......................................................................................................................... 4
4 Competitive Position: Internal Environment .................................................................................. 5
4.1 Dynamic Capabilities ............................................................................................................... 5
4.2 Porter’s Value Chain................................................................................................................ 5
5 Competitive Strategy ...................................................................................................................... 7
5.1 Competitive Advantage: Generic Strategies ‘Hybrid’ ............................................................. 7
5.1.1 Cost leadership ................................................................................................................ 7
5.1.2 Product/ process design .................................................................................................. 7
5.1.3 Differentiation ................................................................................................................. 7
5.1.4 Revenue ........................................................................................................................... 7
6 External Business Environment ...................................................................................................... 9
6.1 Porter’s Five Forces Framework ............................................................................................. 9
6.2 Shared Value Concept ........................................................................................................... 11
6.3 Blue Ocean ............................................................................................................................ 11
7 Internationalisation: Global Strategy ............................................................................................ 12
7.1 Entry mode strategy.............................................................................................................. 12
7.1.1 Timing of market entry ................................................................................................. 12
7.1.2 Mode of entry: ‘Born global’ ......................................................................................... 12
8 Recommendations ........................................................................................................................ 13
9 Conclusion ..................................................................................................................................... 13
10 Appendix 1 ................................................................................................................................ 14
10.1 Dynamic Capabilities Model ................................................................................................. 14
11 Appendix 2 ................................................................................................................................ 15
11.1 PESTEL Framework ................................................................................................................ 15
12 References ................................................................................................................................ 17
, 2 INTRODUCTION
2.1 ENGLISH TEA SHOP
'We have authentic provenance from farm to cup. Celebrating Sri Lankan tea
industry. Core.'
The English Tea Shop was launched in 2010 and serves 50 markets globally.
Supplies sustainable and ethical artisan teas, blends and packs it at the facility it owns
in Sri Lanka.
350 million tea bags sold annually.
Ranges of 100% organic teas distributed through high-end outlets: Selfridges,
Debenhams, The Grange Hotel, Strand Palace and Wesley (Ogleby, 2017).
Now the brand source organic teas, herbs, flowers, fruits and spices from small organic farmers
in 20 countries. A variety of 400 different packs created in a manufacturing facility in Colombo,
Sri Lanka, then ship to 50 other countries (ibid). The company employ 400 people in its owned
factory in Colombo, headquarters are based in London and offices in the United States (Nair,
2018).
• ‘Love, Care, Change’
Is the initiative and manifesting value sharing; putting employees and suppliers’ livelihoods
first. Providing financial and community enterprises enhancing farmers and the factory workers
lives (Nair, 2018).
English Tea Shop has achieved an average year-on-year growth of more than 20% since its
founding in 2010. The customer segment has evolved, in addition to its rise from humble selling
at independent retailers and hotels to multinational organisations (Tea and Coffee Trade
Journal, 2018).
MSc International Business & MBA (Graduate)
Module: Strategy and Globalisation
Name: Phillip Shannon
Tutor’s Name: Dr. Colm Fearon
Assessment Type/No: 2
First Submission Yes
Submission Date: 18th January 2019
Word Count: 2200. Excluding quotes, references, grids, pictures and diagrams.
P.shannon Students must sign here to show that they have read and adhered to the University
plagiarism regulations as stated in the student handbook.
,1 CONTENTS
2 Introduction .................................................................................................................................... 3
2.1 English Tea Shop ..................................................................................................................... 3
3 Tea industry trends ......................................................................................................................... 4
4 Competitive Position: Internal Environment .................................................................................. 5
4.1 Dynamic Capabilities ............................................................................................................... 5
4.2 Porter’s Value Chain................................................................................................................ 5
5 Competitive Strategy ...................................................................................................................... 7
5.1 Competitive Advantage: Generic Strategies ‘Hybrid’ ............................................................. 7
5.1.1 Cost leadership ................................................................................................................ 7
5.1.2 Product/ process design .................................................................................................. 7
5.1.3 Differentiation ................................................................................................................. 7
5.1.4 Revenue ........................................................................................................................... 7
6 External Business Environment ...................................................................................................... 9
6.1 Porter’s Five Forces Framework ............................................................................................. 9
6.2 Shared Value Concept ........................................................................................................... 11
6.3 Blue Ocean ............................................................................................................................ 11
7 Internationalisation: Global Strategy ............................................................................................ 12
7.1 Entry mode strategy.............................................................................................................. 12
7.1.1 Timing of market entry ................................................................................................. 12
7.1.2 Mode of entry: ‘Born global’ ......................................................................................... 12
8 Recommendations ........................................................................................................................ 13
9 Conclusion ..................................................................................................................................... 13
10 Appendix 1 ................................................................................................................................ 14
10.1 Dynamic Capabilities Model ................................................................................................. 14
11 Appendix 2 ................................................................................................................................ 15
11.1 PESTEL Framework ................................................................................................................ 15
12 References ................................................................................................................................ 17
, 2 INTRODUCTION
2.1 ENGLISH TEA SHOP
'We have authentic provenance from farm to cup. Celebrating Sri Lankan tea
industry. Core.'
The English Tea Shop was launched in 2010 and serves 50 markets globally.
Supplies sustainable and ethical artisan teas, blends and packs it at the facility it owns
in Sri Lanka.
350 million tea bags sold annually.
Ranges of 100% organic teas distributed through high-end outlets: Selfridges,
Debenhams, The Grange Hotel, Strand Palace and Wesley (Ogleby, 2017).
Now the brand source organic teas, herbs, flowers, fruits and spices from small organic farmers
in 20 countries. A variety of 400 different packs created in a manufacturing facility in Colombo,
Sri Lanka, then ship to 50 other countries (ibid). The company employ 400 people in its owned
factory in Colombo, headquarters are based in London and offices in the United States (Nair,
2018).
• ‘Love, Care, Change’
Is the initiative and manifesting value sharing; putting employees and suppliers’ livelihoods
first. Providing financial and community enterprises enhancing farmers and the factory workers
lives (Nair, 2018).
English Tea Shop has achieved an average year-on-year growth of more than 20% since its
founding in 2010. The customer segment has evolved, in addition to its rise from humble selling
at independent retailers and hotels to multinational organisations (Tea and Coffee Trade
Journal, 2018).
