Case study on kerry group Essay

Introduction As part of my business management assignment I have been asked to investigate and evaluate the internal and external environment of an organization and the impact of change on an organization I intend on outlining the purpose, mission, vision , objectives and structure of this organization, explain the relevance of the type of structure. Do a pest and swot analysis and evaluate the impact of change on the organization , I will be completing this assignment with the aid of the website , Kerryfoodgroup.com the internet and my class notes. Aims The aims of this assignment are to ensue I cover the following aspects: Relevant information appropriately presented  Understanding and knowledge of chosen topic clearly demonstrated Present relevant data and statistics that support my work  Comprehensive evaluation of topic clearly demonstrated  Conclusions and recommendations bibliography Organisation types I am going to explore the following organisation types: Sole Trader Private limited Company Public limited Company Co-Operative Sole trader A sole trader is a type of business entity that allows one person to be solely responsible for the financial dealings of the business. The benefits and disadvantages of being a sole trader Advantages You are your own boss . Set your own working hours. Pick your rate of pay. Easy to set up. This form of business ownership has fewer regulations than other systems of ownership do. And another major benefit of operating as a sole trader is the ability to exert full control over the business Disadvantages Unlimited liability No sick pay. All pressure and responsibility is on you. No one o cover you if something happens Income tax 20-41% No one to share decision’s Suffer all losses Private Limited Company Private limited companies are viewed as corporations under the law and share several common characteristics with all corporations. However, private corporations are owned and operated by a small group of people. Because of their structure, private limited corporations operate under a set of limitations not imposed on public corporations. Advantages A private limited company is run by a small group, Many of them members of a single family, that wishes to limit the influence of outsiders on its company. Because private limited companies are run by a small group, they are usually not subject to takeovers and other challenges faced by public companies. The minmum required to set one upis 1 person and the max is 99. Disadvantages Profit Sharing Taxes Lack of privacy, information concerning the company is made public. Public limited company A company whose shares are traded on a stock exchange and can be bought and sold by anyone. Public companies are strictly regulated, and are required by law to publish their complete and true financial position so that investors can determine the true worth of its stock . Also called a plc Facebook is a reality formed plc . Advantages There is limited liability for the shareholders. The business has separate legal entity. There is continuity even if any of the shareholders die. These businesses can raise large capital sum as there is no limit to the number of shareholders. The shares of the business are freely transferable providing more liquidity to its shareholders . Disadvantages There are lot of legal bits and pieces required for forming a public limited company. It is costly and time consuming. In order to protect the interest of the ordinary investor there are strict controls and regulations to comply. These companies have to publish their accounts. The original owners may lose control. Public Limited companies are huge in size and may face management problems such as slow decision making and industrial relations problems. Co-Operative  A co-operative is a group of people acting together to meet the common needs and aspirations of its members e.g the Credit union, sharing ownership and making decisions democratically. Co-operatives are not about making big profits for shareholders, but creating value for customers this is what gives co operatives a unique character, and influences our values and principles. Advantages It is usually inexpensive to register a cooperative. All members and shareholders must be active in the cooperative. Shareholders have an equal vote at general meetings regardless of their shareholding or involvement in the cooperative. Members, other than directors, can be under  18, though these members cannot stand for office and do not have the right to vote. Shareholders, directors, managers and employees have no responsibility for debts of the cooperative unless those debts are caused recklessly, negligently or fraudulently. A cooperative is owned and controlled by its members, rather than its investors. Disadvantages There must be a minimum of five members. There is a usually a limited distribution of surplus (profits) to members/shareholders and some cooperatives may prohibit the distribution of any surplus to members/shareholders. Even though some shareholders may have a greater involvement or investment than others, they still only get one vote. Active and direct involvement of members/shareholders in the cooperative. These bullet points and definitions where all found in my class notes and I also used www.cro.ie Kerry Foods Group The company I am going to focus on will be Kerry foods group the history of the organisation traces the evolution and growth of Kerry Group from its modest beginnings in the south west of Ireland some 30 years ago into a successful, publicly traded, multinational corporation and leading player in the global food industry. Having commenced operation from a green field site in Listowel, Co. Kerry in 1972, the Kerry organisation has realised sustained profitable growth with current annualised sales of approximately â‚ ¬5.8 billion, Kerry Group today is a world leader in food ingredients and flavours serving the food and beverage industry, and a leading supplier of added value brands and customer branded foods to the Irish and UK markets. Kerry has grown to become one of the largest and most technologically advanced manufacturers of ingredients and flavours in the world. Spanning all major food categories, Kerry’s core technologies and global resources in culinary, dairy, lipid, meat, cereal, sweet and beverage systems and flavours provide innovative, practical product solutions to food manufacturers and food service companies. Purpose Kerry Foods operates in Ireland and the UK. they market there own brands across a wide range of categories and supply supermarket private labels in selected areas. they also have become one of the leading chilled foods companies in the geography through: A strong portfolio of brands, in which they continue to invest and grow Close working relationships with retail customers to develop mutually successful, private label business An unrivalled national service to the independent convenience sector, in both the UK and Ireland Mission statement Kerry Group will be: – the world leader in food ingredients and flavours serving the food and beverage industry, and – a leading supplier of added value brands and customer branded foods to the Irish and UK markets Through the skills and wholehearted commitment of ther employees, we will be leaders in our selected markets – excelling in product quality, technical and marketing creativity and service to our customers We are committed to the highest standards of business and ethical behavior, to fulfilling our responsibilities to the communities which we serve and to the creation of long-term value for all stakeholders on a socially and environmentally sustainable basis. Vision Group Goals & Long Term Targets †¢ Group revenue: +2% to +4% (LFL) volume growth †¢ Margin: 10% Group margin in 5 years †¢ Adjusted EPS* 10%+ †¢ ROAE* 15%+ and CFROI 12%+ Objectives Kerry’s Sustainability Programme represents a journey of continuous improvement – an ongoing process and strategy to secure sustainable growth. Sustainability is at the heart of our business strategy and enshrined in our corporate mission statement.As a world leader in ingredients & flavors and as a major consumer foods organization in Europe, Kerry aims to conduct its business in a responsible and sustainable manner. This demands a holistic approach to Group activities involving close liaison with our customers, suppliers, regulatory authorities, employees and other relevant stakeholders.Our Kerry Group Sustainability Council appraises, directs and provides leadership in promoting industry best practice sustainability program throughout the Group. Its membership includes Directors of Group functions with responsibility for all pillars of Kerry’s Sustainability Programme. Structure of the organization Business structure The Group is divided into several divisions: â€Å"Kerry Ingredients & Flavours† is the largest division producing over 15,000 ingredients, flavours and integrated solutions from more than 125 manufacturing sites worldwide. It claims to have become the largest and most technologically advanced provider of technology-based ingredients, flavours and integrated systems. â€Å"Kerry Foods† supplies added-value branded and customer branded food products to supermarket chains, convenience stores and independent retailers across the UK and Ireland. It has 15 manufacturing facilities all in Ireland and the UK. Products include sausage, sliced bacon, sliced meats, pastry products, ready meals, ready-to-cook products, savoury snacks, cheese, cheese snacks, dairy spreads, low-fat spreads, UHT products, home-baking products, salads, sandwiches and fruit juices. Consumer branded products include – in Ireland: Denny, Galtee, LowLow, Dairygold, Cheestrings, Charleville Cheese, Shaws, Coleraine, Golden Cow, EasiSingles, Dawn, Roscrea, Kerrymaid, Golden Olive, Mitchelstown, Calvita, Ballyfree, Move over Butter and Freshways – in the UK: Richmond, Wall’s,  Mattessons, LowLow, Cheestrings, Pure, Mr. Brain’s, Porkinsons, Bowyers, Lawsons, Green’s and Homepride. â€Å"Kerry Agribusiness† is headquartered in Charleville, Co. Cork, and works with the Group’s 4,000 milk suppliers in Ireland, to produce milk and related dairy products. Why have structures? Because it allows each sector to oranise itself. All businesses have to know what to do A clear structure makes it easier to understand the organisations objectives Organization chart What is a organisation chart? Companies use the organizational chart to pictorially depict their prevailing hierarchies, work flow and authority-responsibility diagrams. Small companies use flat organizational charts and large companies use tall organizational charts. Function The main purpose in drawing an organizational chart is to visually represent employee structures of the organization. One glance at the chart tells the viewer of all reporting to a particular employee and to whom he is answerable for work-related matters. Features A tall organizational chart is one that is shaped like a pyramid. There are several layers and tiers of employees. This structure is narrow and the top and broad at the bottom. A flat organizational chart is wide and expansive all throughout. More often than not, the employees report directly to the top management. This is pictorially depicted by a flat organizational chart. Considerations The type of organizational chart that the company draws must be based on the type of trade it is into. It is not practical and feasible for large  companies to have a flat organizational structure and chart. Large companies tend to centralize authority and departmentalize their strategic functions. Likewise, when small companies use the tall organizational structure and chart, they have to deal with greater bureaucracy and middlemen’s salaries. Is Kerry food group a flat or tall organisation? Swot Analysis of Kerry Group Kerry Group, Plc. Category Food Processing Sector Food and Beverages Tagline/ Slogan Brands that deliver USP Its worldwide facilities and unrivalled technical support network guarantees that its highly acclaimed ingredient systems and technologies are available to food processor or foodservice companies in all markets. STP Segment Business segments: Ingredients incorporating Culinary, Flavours and Bio-Science, Consumer Foods, Agribusiness and Dairies Target Group Agribusiness: Food sector, Animal feed sector, Drinks sector Consumer Foods & Dairies Consumers of branded & private labeled food products Positioning Committed to evolving food and developing brands that deliver, time and time again SWOT Analysis Strength 1. Established global processing and technical network with an ingredients portfolio extending to some nine thousand products to food processor and foodservice markets in over 120 different countries 2. Core technological strengths in savory ingredients, sweet ingredients, food coating systems, nutritional systems and specialty protein applications 3. An unrivalled national service to the independent convenience sector, in both the UK and Ireland 4. Close working relationships with retail customers to develop mutually successful, private label business 5. One of the leading consumer brands in Ireland and Europe Weakness 1.Input cost volatility due to raw material pricing being impacted by adverse crop production conditions 2. Limited market share and Pressure from competitive markets 3.Ingredients and Flavours market is highly fragmented Opportunity 1.Growth in demand for convenient ‘ready-to-use’ foods to match modern lifestyles and for fresh natural food products 2.Growing Ingredients and Flavours market 3. Tapping global capability via emerging markets & global customers Threats 1.Food industry supply and demand issues 2.Commodity cost inflationary momentum 3.Impact of foreign exchange fluctuations Competition Competitors 1.Associated British Foods Plc. 2.Greencore Group Plc. 3. Westbury Dairies Limited Pest analysis