Management Group Assignment

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INTRODUCTION TO MANAGEMENT Group Assignment Group 7

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Transcript of Management Group Assignment

Page 1: Management Group Assignment

INTRODUCTION TO MANAGEMENT

Group AssignmentGroup 7

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GROUP MEMBERS – GROUP 7 IS 016 E. K. A. Anuradha Edirisuriya IS 037 Minura M. Jinadasa IS 067 T. H. N. G. Randeniya IS 088 G. W Dimuthu Surangi IS 073 H. A. Sanda Mihiri

Samarasinghe IS 093 T. M. Oshan Tennakone

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HOW TEA BEGAN….

“The story of tea begins in China. According to legend, in 2737 BC, the Chinese emperor Shen Nung was sitting beneath a tree while his servant boiled drinking water, when some leaves from the tree blew into the water. Shen Nung, a renowned herbalist, decided to try the infusion that his servant had accidentally created. The tree was a Camellia sinensis, and the resulting drink was what we now call tea….”

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HOW TEA BEGAN….- JAPAN

“Tea was first introduced to Japan, by Japanese Buddhist monks who had travelled to China to study. Tea drinking has become a vital part of Japanese culture, as seen in the development of the Tea Ceremony, which may be rooted in the rituals…”

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HOW TEA BEGAN….- BRITIAN

“It was the marriage of Charles II to Catherine of Braganza that would prove to be a turning point in the history of tea in Britain. She was a Portuguese princess, and a tea addict, and it was her love of the drink that established tea as a fashionable beverage first at court, and then among the wealthy classes as a whole. Capitalising on this, the East India Company began to import tea into Britain, its first order being placed in 1664 - for 100lbs..”

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COMPANY PROFILE

Company Background – Expolanka Teas Ltd..

Tenth largest exporter of all varieties of Ceylon Tea since year 2005.

Established in the year 1989 (25 year of existence). Posses

modern technology including a tea bagging unit well-equipped tea tasting grading rooms.

Possesses its own estate and factory, Expolanka Plantations with Galaxy tea factory.

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COMPANY PROFILE

Vision “To be ranked as the fifth largest exporter of tea

in Sri Lanka by the year 2015”

Mission A specific mission statement not defined;

however, the company is a key player in the tea export industry of Sri Lanka and this is the main purpose of the company.

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COMPANY PROFILE

Products Tea bags Packets Black tea in bulk Green tea in bulk Specialty teas in bulk

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COMPANY PROFILE

Products Value added tea

In consumer packs between 90 - 1000g Black, green and flavored tea bags in envelopes Specialty tea bags (in envelopes with string and tag) Tea packed in exclusive packaging such as jars, wooden

boxes and canisters A variety of value added specialty teas such as

flavoured teas, fruit teas and herbal teas packed in attractive printed aluminum canisters.

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COMPANY PROFILE

The highest volumes are exported to the Middle Eastern markets:

Main markets United Arab Emirates (U.A.E) Jordan Syria Iran Russia Saudi Arabia Qatar

Other Markets Canada Australia Malaysia Libya Turkey

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COMPANY PROFILE

ETL is certified for ISO 9001:2000, Quality Management System and ISO 22000:2005, Food Safety Management System.

Expolanka Teas (Pvt.) Ltd. were the recepients of 3 awards at the prestigious NCE Awards held at the Hilton, Colombo on the 25th of September, 2009. The awards received included:

The Gold Award in the category "Tea Value Added - Extra Large"

The Gold Award in the category "Tea Value Added Sector - Most Outstanding Exporter"

The Silver Award in the category "Most Outstanding Exporter for year 2008 - Runners up"

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KEY SECTIONS OF THE ORGANIZATION1) Blending Division Flavour of tea varies continuously even

in the same factory Blending ensures consistence in

flavour and quality Considerable amount of expertise is

required for this process Highly profitable stage in the supply

chain of tea Not exploited as much as the tea

processing industry due to relatively higher start up cost and level of expertise

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KEY SECTIONS OF THE ORGANIZATION2) Packaging and Tea Bagging Division Receives the tea sent by the

blending division Prepares the tea for dispatch Produces for both self brands and

external brands Other brands - either packaged

loose in sacks and dispatched or packed directly in to tea boxes to be sold to consumers under the relevant brands.

Company brand - Packed for the final consumer in either the local market or foreign market.

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KEY SECTIONS OF THE ORGANIZATION3) Research and Development division The industry demonstrates high rivalry Differentiation and widening the choice to

customers provides a competitive advantage Improvement of quality and efficiency increase

value to the customer.

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KEY SECTIONS OF THE ORGANIZATION4) Plantation Division Consists of the Galaxy Tea Factory and

its estate in addition to the previous estates owned by the company.

Tea produced is sold at the auction. The company separately purchases its

requirement of tea from the Colombo tea auction: the largest tea auction in the world.

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KEY SECTIONS OF THE ORGANIZATION5) Marketing and Sales division The company produces for foreign brands such as Monzil, Apple

and Barari This division organizes promotions, maintains communication

with the companies to ensure satisfaction of the need. The division plays a significant role in managing the brand

(from normal products for super markets to high end products for exclusive stores.)

The division will play a significant role in the new market in Australia where the company hopes to sell under its own brand.

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Purchasing Involves all purchases related to

production Includes all relevant amounts of

different type of tea at the auction

Includes other materials essential for production.

Quality controls ensure reliability of material purchased to ensure high quality of output.

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Marketing Responsibility - held by the

marketing & sales division. Customer preference changes

& customer requirements closely monitored.

Assists the company to develop its own brand

Maintains a sound relationship with foreign corporate customers, buyers of loose tea or branded, packed tea.

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Logistics management Includes the transport of all material required for

production A critical part of the business since the clientele of

the company is wide.

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Finance Responsibility of the

finance department Involves formulation of the

financial strategy & the management of all expenses and revenues of the company.

The management of costs is significant part of this function.

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Human resource Management Responsibility of the Human Resource

Management Division. Involves

Selection Recruitment Training (in house or out-source) Succession planning Determination of benefits Promotions Other relevant activities

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SUPPORTIVE BUSINESS PROCESSES TO THE PROCESSING AND BLENDING

Human resource Management Support meeting of company goals,

while maintaining its functional strategy in line with the corporate strategy of Expolanka Holding Ltd.

Has a clear HR policy integrated in to its corporate values.

Honesty, reliability, credibility and innovativeness are core values of the company

Succession planning and determination of benefits play a critical role in retaining key staff and maintaining a low labour turnover.

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ANALYSIS OF THE MARKETING STRATEGY OF THE COMPANY THROUGH THE 4P’S APPROACH OF PHILIP KOTLER

Product Products developed with focus on

the customer needs. Predictable level of quality

maintained. Quality control mechanisms

implemented at various stages of the production process.

Larger choice to customers (availability of a choice to each range of customers local and international (organic/normal, flavoured, herbal, green tea, different leaf sizes, different flavour strengths)

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ANALYSIS OF THE MARKETING STRATEGY OF THE COMPANY THROUGH THE 4P’S APPROACH OF PHILIP KOTLER

Price The pricing of the products differ on the product and market. Loose, unblended tea sold by the plantation at the auction :

determined at the auction while cost of the company and any minimum margin of the company is satisfied.

Specifically made loose blended tea to large scale foreign customers for their own brand : mostly sold at a price negotiated between the customer and the company.

Tea made for the normal market; (tea bags or loose) sold at the going rate since competition is high.

Up market, branded tea: sold at premium price due to differentiation (revenue percentage is lower but, margin is much higher)

Many other factors such as company strategy and long term objectives require specific prices and quantities

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ANALYSIS OF THE MARKETING STRATEGY OF THE COMPANY THROUGH THE 4P’S APPROACH OF PHILIP KOTLER

Place Company offices and its agents

worldwide ensure efficient distribution and wider reach.

Constant communication and tracking of shipments enable the company maintain predictability of supply to clientele.

Super market brands are directly sold to supermarket companies.

Specialized tea outlets including the company owned Bistro at the halfway stop of expressway E01 used for sales as well as promotion.

Boutique hotels and high end stores such as ODEL buy specific, up market teas.

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ANALYSIS OF THE MARKETING STRATEGY OF THE COMPANY THROUGH THE 4P’S APPROACH OF PHILIP KOTLER

Promotion Main focus is the export market A major percentage of the sales are

to the Middle East and a Lesser quantity is exported to other countries such as Russia Canada, Australia, Malaysia, and Libya.

Foreign brand owners such as Monzil, Apple and Barari, who buy loose tea or tea packed under these brands, conduct their own promotions.

The t-sips brand, the brand of the company, is managed by the marketing division which is responsible for promoting its local product range.

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THE PHILANTHROPIC ACTIVITIES OF THE COMPANY THAT HAVE ENABLED IT TO ADOPT A SOCIETAL MARKETING APPROACH

The company has a strong sense of being a good corporate citizen. As well as emphasis on ethics, philanthropic activates are emphasized.

Recent initiatives taken by Expolanka teas Ltd. Sold off a 100 g lot of

Silver Tips tea for Rs. 1 million at a Charity Auction of Limited Edition Silver Tip tea to raise funds for the National Cancer Institute of Maharagama.

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THE PHILANTHROPIC ACTIVITIES OF THE COMPANY THAT HAVE ENABLED IT TO ADOPT A SOCIETAL MARKETING APPROACH

Recent initiatives taken by Expolanka teas Ltd. Sponsored the annual Royal-Thomian

Regatta for three consecutive years from 2009-2011.

Provided oarsmen with state-of-the-art sports gear and facilities to perform at optimum levels.

Sponsors International rowing events such as the Far East Asian Rowing Association Championship (FEARA), in an attempt to boost the sport in Sri Lanka.

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THE PHILANTHROPIC ACTIVITIES OF THE COMPANY THAT HAVE ENABLED IT TO ADOPT A SOCIETAL MARKETING APPROACH

Recent initiatives taken by Expolanka teas Ltd. It sponsored the visit of London-2012 Olympic

Gold-Medallist Rower Mahé Drysdale. Expolanka teas has been a patron of the sport for years and inviting Mahé Drysdale to Sri Lanka was yet another undertaking to uplift rowing in Sri Lanka by inspiring local youth towards better performance.

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THE PHILANTHROPIC ACTIVITIES OF THE COMPANY THAT HAVE ENABLED IT TO ADOPT A SOCIETAL MARKETING APPROACH

Recent initiatives taken by Expolanka teas Ltd.

CSR initiative for Cerebral Palsy Creating awareness about Cerebral Palsy

and creating better living condition for affected children

Around 40,000 children in the Sri Lanka are affected by Cerebral Palsy, with many unreported cases.

t-sips supports the Cerebral Palsy Lanka Foundation under the brand’s flagship CSR initiative, to assist the country better understand

the condition and create a better environment for

children with Cerebral Palsy. A percentage is allocated to the cause

from every kilo of tea sold by the company.

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THE PHILANTHROPIC ACTIVITIES OF THE COMPANY THAT HAVE ENABLED IT TO ADOPT A SOCIETAL MARKETING APPROACH

Corporate social responsibility initiatives taken by the holding company (Expolanka Holdings Ltd) in association with its subsidiaries including Expolanka teas Ltd. 'Expo - Medix' – Subsidized or free

medical services for the under privileged

Dengue Eradication Programme Free Medical Clinic Programme Combating Pollution with Natural

Air Filters Global Warming Awareness

Programme Flood Relief Programme in

Polonnaruwa and Elahera Commemorating World Health Day

with the SOS Children's Village

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ANALYSIS OF MOTIVATIONAL STRATEGY …..ARE THESE STRATEGIES IN-LINE WITH THE TWO FACTOR THEORY BY FREDRICK HERTZBERG?

Focus on Hygiene Factors A salary above the industrial average to ensure financial stability. Welfare benefits such as healthcare and medicine and other

benefits Clear policies established & supervision to maintain standards. A genial setting exists in the work areas Effective communication to maintain positive relationships Proper equipment with reasonably new technology Required level of training are provide. Safety and cleanliness of working areas as well as other basic

facilities including rest rooms, canteen facilities

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ANALYSIS OF MOTIVATIONAL STRATEGY …..ARE THESE STRATEGIES IN-LINE WITH THE TWO FACTOR THEORY BY FREDRICK HERTZBERG?

Focus on Motivational Factors Commemoration of all religious and cultural events

together with all levels of staff Relationship building and acceptance that motivates staff

due to the sense of belonging generated. Comprehensive evaluation schemes, both team-based

and individual to recognized and rewarded exceptional performance.

Succession planning and timely promotion Delegation of responsibility and empowerment to provide

challenges are practiced to facilitate more independence.

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ANALYSIS OF MOTIVATIONAL STRATEGY …..ARE THESE STRATEGIES IN-LINE WITH THE TWO FACTOR THEORY BY FREDRICK HERTZBERG?

Inference: The policies of the company and its

activities are closely in-line with the components of the Two Factor Theory by Fredrick Hertzberg and this can justify the conclusion that the company has a highly scientific and rational approach towards prevention of dissatisfaction and promotion of motivation.

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ANALYSIS OF MOTIVATIONAL STRATEGY …..ARE THESE STRATEGIES IN-LINE WITH THE HIERARCHY OF NEEDS THEORY BY MASLOW?

Fulfillment of basic, security and social needs of employees is ensured by the company at all levels.Eg:-

A salary above the industry average for basic need satisfaction Benefits such as healthcare, medicine, insurance for stability &

security Sociable environment with mutual respect horizontally and

vertically. Social events such as Annual get together’s involving all staff Commemoration of all cultural and religious events together w Work-group based performance evaluation schemes that

facilitate teamwork.

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ANALYSIS OF MOTIVATIONAL STRATEGY …..ARE THESE STRATEGIES IN-LINE WITH THE HIERARCHY OF NEEDS THEORY BY MASLOW?

Special attention given to higher level need of executives and office staff,Eg, where Esteem needs are concerned: -

Succession planning, training and timely promotion Professional or relevant academic achievements recognized to motivate

achievement. Delegation and empowerment are also for capable staff to allow more

independence and release of potential. In the case of self-actualization however, identification or

satisfaction of such a need does not appear reasonable here. This would be a personally identified and satisfied need than one

in which the organization has a key role Inference: The motivational strategy is a consistent and rational

one as it is somewhat aligned with the Hierarchy of Needs Theory by Abraham Maslow to a reasonable extent.

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EVALUATION OF THE LOCAL PROCESSES AND COMPARISON WITH OTHER REGIONS OF THE WORLD

Orthodox Process Predominantly used in processing low

country tea in Sri Lanka. Brewed tea

dark brownish much stronger flavour than other teas.

Processed tea dark black has a range of leaf sizes generally larger than others.

High demand in the Middle East and Russia.

More expensive than other teas. A core competence of Sri Lanka and in

this range, Sri Lankan tea fetches the highest price in the world market.

Expolanka tea, focuses mainly on this and their plantation and factory are also in the low country region.

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EVALUATION OF THE LOCAL PROCESSES AND COMPARISON WITH OTHER REGIONS OF THE WORLD

Rotorvane process A process mainly used in the up country

of Sri Lanka. The tea leaf is grinded using rotor vanes

instead of the rollers used in the orthodox process.

Brewed tea: Lighter appearance than orthodox processed tea Strength of the flavour is lesser.

Processed tea: - Size of the tea leaf is much smaller than orthodox

tea Colour of leaf is browner.

Main markets are Europe, Japan and USA. Sri Lankan tea is the most expensive in

the world in this range as well and has enabled it to be positioned as a luxury.

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EVALUATION OF THE LOCAL PROCESSES AND COMPARISON WITH OTHER REGIONS OF THE WORLD

CTC Process Involves grinding the tea in to very

small particles to brew more tea from a unit of processed tea.

The strength of the tea is stronger and brewed tea has a brownish appearance

Focusses on efficiency with more output of prepared tea per unit of processed tea.

More emphasis on cost reduction than quality, flavour and fragrance.

Sri Lanka does not focus much on this area and this is followed by Kenya, Malawi, India and South African nations.

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EVALUATION OF THE LOCAL PROCESSES AND COMPARISON WITH OTHER REGIONS OF THE WORLD

Evaluating the local processes with the foreign processes, it would be advisable for Sri Lanka to focus on its current competences while maintaining a safe share in the CTC process since it already caters to the upper markets with the best quality in the world market & so positioned.

However, Sri Lanka can develop its own processes with regard to value for money.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Threat of new entrants Tea blending and packing industry: inherently a capital

intensive process. Higher level of sophistication than the tea processing industry. The stage where tea is primed for the consumer and attention

to detail is necessary. To survive in this industry,

skilled labour (eg:- expert tea tasters and quality controllers) an established network of clients sophisticated machinery and thus a high level of capital is a necessity.

Export requires a license and the industry is regulated. This has the effect of creating barriers to new entry increasing

the attractiveness of the industry.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Threat of substitute products Threat of substitutes can be assessed in two ways If considering tea purely as a beverage

Certain products can be cited as substitutes such as coffee, chamomile, cocoa and cappuccino

These products also have various ranges to cater to different customers as in the case of tea.

This may be interpreted as a threat to the loose tea market. Considering the exclusive products such as flavoured tea and

green tea Cater to a particular market emphasizing on the ‘tea drinking

culture’ in some countries Focus on particular health benefits such as in the case of Green

Tea. Differentiation enables the company to enter into markets to which

there is no direct substitute.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Bargaining power of customers Key customers are corporate customers & they purchase in

bulk. The number of customers is few in number and this increases

the bargaining power. The company is currently expanding its clientele such as by

entering the local market and foreign markets such as Australia.

This enables the company to mitigate the adverse effects of high customer bargaining power.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Bargaining power of suppliers The company sells its own plantation tea at the tea auction and

purchases majority of tea from the Colombo Tea Auction. This is the largest tea auction in the world offering plenty of

choice of a variety of suppliers. Enables the company to obtain a range of quality products at

an attractive price. Therefore, the bargaining power of suppliers is low.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Rivalry among competitors The industry is one with a high degree of competition. There are over 400 companies in the business with 20

significant players in the market. There is high degree of rivalry among the 20 key players. The company is currently in the 10th position. The company attempts to reduce the affects of competition by

differentiating certain products and exploiting new markets such as Australia.

The high degree of rivalry lowers the attractiveness of the industry.

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EXTERNAL ENVIRONMENT –INDUSTRY ANALYSISMICHAEL PORTER’S FIVE FORCES

Inference:- Despite the relatively high bargaining power of

customers and high degree of rivalry, the industry has a wide choice of suppliers, lower direct substitutes and higher barriers to new entry.

This is also the industry with the highest return of investment in the tea industry and this makes the industry attractive.

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Political Policies of the government have various affects

industry. Subsidizing of fertilizers has provided major

benefits for the company The tea industry gains the support of the

government being a major export of the country & the company benefits from this since government plays an active role in protecting the industry such as tax benefits.

The development in infrastructure such as the road network has helped the country to obtain fresh, loose tea expeditiously.

Eg: The government of Libya is directly purchasing tea from the company to overcome the severe shortage of tea in Libya at the moment.

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Economic The recession caused a drop in

the demand but now recovered.

The company has been adversely affected by inflation in Sri Lanka due to increase in costs.

The increase in the dollar increased in the import cost of certain flavor and packaging material.

There is a significant increase in revenue due to increase in the value of the Dollar and devaluation of the Rupee.

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Social Increasing number of the health

conscious groups increase sales of herb tea & green tea.

The tea industry of Sri Lanka is a reputed industry considering its contribution to the economy through exports

Hence, there is a positive attitude towards it from society

The welfare of the estate staff is monitored and improved by the company in order to maintain a decent standard of living.

This benefits the company as the company believes that "a happy worker is a productive worker"

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Technological Increasing level of mechanization in

the industry Utilization of a pyramid tea bagging

machine which is a very rare machine in the country producing an exclusive type of tea has further enhanced the company to consolidate its competitive advantage.

High level of technology needed in the industry serves as an entry barrier.

Acquisition of new technology has also enabled the company to increase research and development enabling continuous improvement in quality and efficiency.

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Environmental Temperate climate of Sri Lanka is

ideal for tea and all companies in the industry capitalize on this

Tea plantation is heavily dependent on weather (output and flavor

Each quarter of the year has its unique flavor and strength of tea.

This affects seasonal demand depending on consumer preference.

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EXTERNAL ENVIRONMENT – ANALYSIS OF THE COMPANY ENVIRONMENT (PESTEL ANALYSIS)

Legal The company works within the

export regulations and the regulations on the industry.

There is a code of best practice in the company

This maintains standards over and above minimum requirement of labour laws of the country as well as health and safety laws.

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INTERNAL APPRAISAL – SWOT ANALYSIS

Strengths the company can emphasize on The company is

ISO 22000 and GMP certified - international standards in food manufacturing practices

ISO 9001:2008, 22000:2005, GMP, HACCP for standardized business processes -ensuring quality control in every aspect of business, (focusses a satisfied client.)

Won several prestigious awards that establishes it in a significant position in the industry. Recipients of 3 awards at the prestigious NCE Awards held at the Hilton, Colombo on the 25th of September, 2009. The awards included The Gold Award in the category “Tea Value Added – Extra

Large” The Gold Award in the category “Tea Value Added Sector –

Most Outstanding Exporter” The Silver Award in the category “Most Outstanding

Exporter for year 2008 – Runners up”

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INTERNAL APPRAISAL – SWOT ANALYSIS

Strengths the company can emphasize on Close to three decades of experience in the industry with many

staff members who have been with it since its inception with a clear vision loyalty.

Posses a rare Pyramid Tea Bagging Machine (less than ten machines exist in Sri Lanka) , enables catering to an exclusive up-market strata through silk wrapped pyramid tea bags.

Has access to more finance if necessary since it is listed in the Colombo Stock Exchange.

Elaborate network of agents & clients helps to cater to needs at a global scale.

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INTERNAL APPRAISAL – SWOT ANALYSIS

Weaknesses the company wishes to resolve. The cost structure of the company has been

somewhat inflexible, which is a competitive disadvantage Automation of certain processes has supported this.

Although the company possesses several information systems, they are not fully integrated and so, the company cannot make the maximum use of all the information contained in or through its various parts in various branches.

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INTERNAL APPRAISAL – SWOT ANALYSIS

Opportunities the company can make use of Resurgence of demand for tea overall after the recession. The subsidization of fertilizers. The Australian market is an opportunity for expansion. Although not in a significant scale, the new Bistro in

Expressway E 01 declared open by HE President Mahinda Rajapakse recently has provided the company with further opportunity to increase visibility in the local market.

The company sees Sri Lanka and its climate itself as an opportunity since it is the ideal situation for tea plantation whether considering the stronger low country teas or lighter up country tea.

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Threats the company needs to mitigate Continuous increase in costs is a threat to meeting

its objectives. Increase in electricity & labour costs is a significant component of this.

Despite the climate being ideal for tea plantation, the unpredictable changes in weather is seen as a threat since the tea plant is affected continuously by the weather changes which maybe a change of flavour or a threat to its survival depending on the weather changes.

INTERNAL APPRAISAL – SWOT ANALYSIS

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INTERNAL APPRAISAL – SWOT ANALYSIS

Threats the company needs to mitigate Intense degree of competition in the industry is seen as a

threat by the company continuous research increase in quality differentiation are some of the company’s strategies to

mitigate the effects of competition. The inability of the political system and its policies

relevant to the industry are further threats the company faces

The high taxes and other charges such as the high harbor charges, container handling charges pose a significant threat to the tea industry as whole.

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THE INDUSTRY AND THE STATE

Regulated industry with state intercession.

Government tax policy affects the industry since it affects cost of production

Subsidies have lowered the production cost due to drop in tea leaf prices.

Labour laws of the country are highly tilted towards the employee against the employer.

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THE INDUSTRY AND THE STATE

Does not influence pricing to a great extent as there is an extensive product range in the tea industry within a wide price range to cater to all types of markets both globally and locally.

Increased competition has enabled the firms to be competitive in the global market due to increased quality and better management of costs. This may be the reason the government does not exert too much control.

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IMPACT ON THE ECONOMY BY THE INDUSTRY

The following graphs show the contribution of the tea industry to the total exports of Sri Lanka (made using information extracted from the reports and website of the Central Bank of Sri Lanka).

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IMPACT ON THE ECONOMY BY THE INDUSTRY

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RECOMMENDED STRATEGIES FOR COMPANY TO EXPAND, IMPROVING QUALITY OF SERVICE AND PRESERVING THE BRAND OF THE COMPANY

Integrate the entire information system of the company in all regions in order to make affective use of information to take better informed decisions through up to date and dependable information.

Enable the company to use advanced software such as a decision support system to make use of better use of the information available and use the facilities of such a system to preview the possible results of their decisions.

Use of an executive information system as a further development to the current management information system to monitor the actives of the entire company despite its size. Active monitoring and control by the management is critical to preserve

Quality of output Predictability of service Value of the brand

Integration of the information system with corporate clients’ information system to develop a comprehensive ERP to enable active involvement of the client with the policy making. This would enable significant level of automation and lower dependence on manual labour to increase speed and reliability while reducing cost in the long term.

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RECOMMENDED STRATEGIES FOR COMPANY TO EXPAND, IMPROVING QUALITY OF SERVICE AND PRESERVING THE BRAND OF THE COMPANY

Automation of the company processes using machinery such as conveyors or office automation systems to reduce the impact of increase in labour cost that is a threat to the company. (adverse economic condition in Sri Lanka with high inflation, high cost of living that drives up labour cost: a significant portion of the total cost can be, thus controlled.)

Use the networks of the mother company; Expolanka Holdings to increase access to markets since the mother company is the leading exporter of fresh coconuts, desiccated coconut, fresh fruits and vegetables from Sri Lanka

Consider forward rate agreements and hedge agreements or even direct foreign customer to foreign supplier payment to minimize the impact of fluctuating foreign exchange to increase financial stability.

Outsource non-core business activities such as IT management, inland transport to external parties under clear service level agreements to reduce cost due to economies of scale & receive experienced superior service.

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Thank You….!

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Questions….??

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EVALUATION OF ASSIGNMENT & ASSESSMENT CRITERIA - AREAS OF POSSIBLE IMPROVEMENT

The assignment was comprehensive and enabled us to obtain an extensive insight and develop a wider perspective of the practical aspects of the concept.

The functions of the different areas of the company, their integration through the corporate strategy, the effectiveness of the strategy and possible modifications to the strategy were given special consideration and this added to the knowledge gathered.

The comprehensive research based analysis with focus on application and analysis than theory, provided us with an opportunity to gain a far-reaching knowledge of the subject while empowering self-learning.

However, the time provided to present a comprehensive analysis of a large organization is highly limited and supply driven (dependent on time available) than demand driven. (dependent on time needed) acknowledging the importance of time management.

Also, while 120 minutes are allocated for 60 marks, the proportionate value for 20 marks would b 40 minutes, Non adherence would possibly limit the ability meet the objectives.