INTRODUCTION TO MANAGEMENT

Management Process of Tetra Pak

Final Project

Presented By:

Rohafa Babar
Iraj Sohail
Jawad Raza
Moeed Farooqi

Tetra Pak Pakistan 316 Upper Mall, 54000, Lahore, Pakistan Telephone: +92-42-111-222-232 www.tetrapak.com
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CONTENTS
ACKNOWLEDGEMENTS V
1. INTRODUCTION

1.1 The company 4

1.2 TetraPak in figures 5

1.3 History 6

1.4 Prodcuts/services 9

1.5 Organisation chart 10

2. Planning

2.1 Obejctives 12

2.2 Decision making process 14

2.3 Strategic Planning 16

2.4 SWOT analysis with respect to 5 P’s 17

2.5 Planning tools and techniques 19

2.6 Techniques for allocating resources 20

2.7 Corporate strategy 22

3. Organizing

3.1 Purpose of organizing 24

3.2 Organization design 26

3.3 Contingency factors 27

3.4 HR planning 28

3.5 Compensation benefit 30

3.6 One TetraPak one team 31

4. LEADING

4.1 What is leading? 33

4.2 Effective leadership checklist 34

4.3 Work group behavior in TetraPak 35

4.4 Leadership styles and behavorial dimension 36

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5. Controlling

5.1 What is controlling? 38

5.2 Characteristics of controlling 38

5.3 Control and Planning in TetraPak 39

5.4 Control and protection of workplace in TetraPak 40

5.5 The Control Process 42

5.6 What is organization performance? 45

5.7 Organization effectiveness 46

5.8 Control Process 46

6. Suggestions and Recommendations

6.1 Planning 49

6.2 Organizing 49

6.3 Leading 49

6.4 Controlling 50

7. Conclusion 52
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Module 1: INTRODUCTION

1. Introduction

Tetra Pak is the world's leading food processing and packaging solutions company.
Working closely with our customers and suppliers, we provide safe, innovative and
environmentally sound products that each day meet the needs of hundreds of
millions of people.
1.1 The company:
“Tetra Pak was founded by Mr. Ruben Rausing.
Tetra Pak works with our customers and suppliers to deliver the best solutions
wherever and whenever food is consumed. Our heritage, innovation and
understanding of consumer needs are second to none.
We believe in helping our customers create profitable growth while sustaining the
environment. We are a responsible industry leader that believes in good corporate
citizenship.
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We supply hundreds of different types of carton packaging that suits the needs of
our customers. We also develop our own state-of-the-art processing solutions and
design and service complete plants.
Tetra Pak is one of three companies in the Tetra Laval Group – a private group that
started in Sweden. The other two companies are DeLaval and Sidel. Tetra Laval is
headquartered in Switzerland.”

Our Core Values

“Values in a company form the foundation upon which employees perform their
work and conduct themselves. Values have been part of the spirit of Tetra Pak
since the very beginning. A shared set of values helps guide our behavior in a
consistent way across the ever-diverse array of people, cultures and organizations
we have around the world.
Tetra Pak’s core values form and shape the essence of our company culture. They
serve to keep us all together as a team and re-affirm what Tetra Pak stands for
everywhere in the world. Our core values build on our heritage and provide an
aspiration for the future. It is up to each one of us to be a role model in applying
our core values everyday in everything we do.
Our core values consist of four pairs:

• Customer Focus & Long-Term View

• Quality & Innovation
• Freedom & Responsibility
• Partnership & Fun

1.2 Tetra Pak in figures

“Working closely with our customers and suppliers, we provide safe, innovative
and environmentally sound products that each day meet the needs of hundreds of
millions of people in more than 170 countries around the world.
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Packaging machines in operation 2010: 9,048

Packaging machines delivered in 2009: 351

Processing units in operation 2010: 51,859

Processing units delivered in 2009: 1,699

Distribution equipment in operation 2010: 16,641

Distribution equipment delivered in 2009: 1,113

Factories for machine assembly:

11
(Packaging: 2; Processing: 9)

Production plants for packaging

material and closures:
42
(Converting factories 36;
Closure factories 6)

Countries where Tetra Pak packages are

>170
available:

Market companies: 41

Sales offices 78

Number of employees: 21,672

Net sales in 2009 in MEUR: 8,955

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1.3 History
Dr. Ruben Rausing was the founder of Tetra Pak. He was born in Raus, near
Helsingborg, Sweden. He graduated from the Stockholm School of Economics in
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1918 at the end of World War I. By 1920, he had earned his Master of Science
Degree from Columbia University, in New York.

During his studies in the USA, Ruben Rausing received his first exposure to “self-
service” stores. He could see that this concept would be adopted in Europe, thus
increasing the demand for pre-packaged goods. In 1929, the year of the Wall
Street stock market crash that triggered the Great Depression, he and Erik
Åkerlund founded Scandinavia’s first specialised factory for packaging in Sweden.
The firm, Åkerlund & Rausing, was to become one of the largest packaging
manufacturers in Europe, and it was within this company that the first steps in
development of a carton for milk took place.
Following are the main course of events that took place in Tetra Pak’s history
from 1943 till 2009
 1943 Development work begins on creating a package for milk that requires
a minimum of material whilst providing maximum hygiene.

 1946 The first Tetra Pak model to demonstrate Dr.Ruben Rausing’s idea.
 1954 The first machines for the packing of milk in 500ml tetrahedron
cartons are installed at Mjölkcentralen in Stockholm and Eskilstuna,
Sweden. The first Tetra Pak machine to be exported goes to Alster
Milchwerk in Hamburg, Germany.

 1957 The first machine for milk in one-litre cartons is installed at the
Linköping dairy, Sweden.

 1959 Development work begins on the Tetra Brik package.

 1961 In September, the first machine for aseptically filling bacteria-free

milk is presented at a press conference in Thun, Switzerland.

 1975 A major contract is signed with Iran, within the framework of an

extensive social programme highlighting the protein supply. In Moerdijk,
Holland, and Romont, Switzerland, production of packaging material
commences in two new plants.

 1982 A new method for offset printing is developed by Tetra Pak.

 1983 On August 10, Dr. Ruben Rausing, founder of Tetra Pak passes away.
Tetra Pak Commences production at new packaging material converting
plants in Pakistan, Kenya and Finland. A technical training school is opened
at Tetra Pak in Lund, Sweden, for the training of staff from customer
plants. The school can accommodate 600 students per year. The production
capacity amounts to 33 billion cartons annually.
 1991 Tetra Pak’s acquisition of Alfa-Laval, one of the world’s largest
suppliers of equipment and plants to the food industry, processing industries
and agriculture, is finalised.

 1997 Seven new factories were opened in 1997.The factories are located in
China, Colombia, India (two), Italy, Mexico and the UK. Three new
packaging systems are launched: Tetra Prisma Aseptic, Tetra Wedge Aseptic
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and Tetra Fino Aseptic. The production capacity exceeds 82 billion cartons
annually.

 2000 Tetra Pak publishes its first Corporate Environmental Report (CER) for
its global operations. An external organisation benchmarks the CER against
other companies’ reports and rates Tetra Pak among the reporting leaders.

 2002 Tetra Pak celebrates its 50-year anniversary.

 2003 During 2003, the Tetra Laval Group is extended with a third industry
group, Sidel, which is one of the world’s leading companies in machinery for
plastic bottles. A new packaging system has been born. The production
capacity amounts to 105 billion cartons.

 2006 Tetra Pak A1 filling machine is the world’s most cost-efficient one
with a capacity of 9,200 Tetra Fino Aseptic packages per hour for the 250ml
size.

 2009 New packaging material manufacturing plant starting up in Hohot,

China, to support the country’s growing dairy and beverage industry.

Their Vision:
“We commit to making food safe and available, everywhere”

Their Mission
“We work for and with our customers to provide preferred processing and
packaging solutions for food.
We apply our commitment to innovation, our understanding of consumer needs and
our relationships with suppliers to deliver these solutions, wherever and whenever
food is consumed.
We believe in responsible industry leadership, creating profitable growth in
harmony with environmental sustainability and good corporate citizenship.”

Their motto
“Our motto, "PROTECTS WHAT'S GOOD", includes the entire value chain – from
suppliers to customers, distribution, employees, consumers and society. We
protect the food in our packages and do our best to help protect the environment.
This starts with the renewable material we use as the main component of our
packages – wood fibre”

Suppliers
“Our partners are suppliers that are innovative, financially solid and, like us,
committed to product innovation. This enables us to ensure the high quality of our
suppliers’ materials”
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Employees
“We are a family company with strong core values. Our staff turnover is low. We
encourage a professional and respectful company culture by helping our employees
develop.”

Customers
“By investing in an extensive range of innovative solutions, we help foster a long-
term relationship with our customers. We do our best to earn respect through our
profound knowledge of the food industry in every step from processing to
consumption.”

Retailers
“Our efficient packaging distribution solutions protect profitability for retailers.
We make sure that packaged products are well protected on shelves, and help
distributors brand their products, helping protect and increase retailers’ image.”

Consumers
“We are committed to making food safe and available, everywhere. Our processing
and packaging protects the nutritional value and the original taste of food.”

Society
“We have started school feeding programmes in more than 45 countries. We also
help with disaster relief projects worldwide and support programmes for children
in underprivileged areas.

We believe in responsible industry leadership, creating profitable growth in

harmony with environmental sustainability and good corporate citizenship.”

1.4 PRODUCTS/SERVICES

Packaging
We offer you the most attractive and complete carton packaging range for
consuming fresh products. All our packages offer consumer convenience, easy
opening, optimal shelf life – and the ability to give your brand maximum exposure.
They protect flavours, protect brands, and protect the environment.

Processing equipment
We provide complete solutions for dairy, cheese, ice cream, beverages and
prepared food. You provide old favorites or new recipes filled with your own brand
of passion and uniqueness. That’s a great way of creating success together.

Filing Machines
We supply a complete range of flexible and reliable filling machines that go
beyond your expectations.
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The extra value chain:

Our complete range of distribution equipment includes conveyors, accumulators,

cardboard packers, crates, roll containers and film wrappers. They are specially
developed for our packaging lines and packages.
Our equipment is easy to operate and provides you with cost effective solutions for
all parts of your production chain.
Our secondary packaging solutions give you several ways to cluster primary
packages in different packaging constellations such as 4-pack or 6-pack.
Many products are transported over long distances and they need protection
against extreme conditions. We offer you different distribution unit solutions to
give your goods the best possible protection on their way to retail.
Multi-packing offers a cost-effective way to “beacon your brand”, drawing
attention to your products. Multi-packs are excellent for promotion, giving you a
large printing surface to make your message as visible as possible.
We would be proud to be your partner in setting up complete lines that cut out
hard work for your staff, reduce costs and help you streamline your distribution.

Service products:

Our services and solutions help you reduce downtime, decrease costs and improve
overall performance. The service product portfolio is divided into four areas:

• Pre-production services
• Production services
• Improvement services
• Training services
We support you throughout the lifecycle of your operation. We sell service
products as stand-alone or together as a solution.

1.5 Organization Chart

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Module 2: PLANNING

2. PLANNING
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Planning means looking ahead and chalking out future courses of action to be
followed. It is a preparatory step. It is a systematic activity which determines
when, how and who is going to perform a specific job. Planning is a detailed
programme regarding future courses of action. It is rightly said “Well plan is half
done”. Therefore planning takes into consideration available & prospective human
and physical resources of the organization so as to get effective co-ordination,
contribution & perfect adjustment. It is the basic management function which
includes formulation of one or more detailed plans to achieve optimum balance of
needs or demands with the available resources.

Tetra Pak is in a unique position in our industry - a successful, profitable company,

privately held, with the resources to invest in the future. Company vision - We
commit to making food safe and available, everywhere - is powerful and
challenging. To achieve this vision, Tetra Pak requires a strategy with a strong
customer focus and clear, prioritized objectives to ensure that we satisfy our
customers' needs and support our goal of sustainable, profitable growth.

2.1 Objectives

Focus on and grow the core means that we are driving to secure we allocate more
of our resources on activities related to our core business. Focus on the core is
doing what we do best
Tetra Pak focuses on its core values to grow. The core values of TetraPak are:

CORE VALUES

“CUSTOMER FOCUS & LONG-TERM VIEW

We ensure we add value and inspire our customers because we recognize that they
come to us by choice. We dare to lead with a focus beyond tomorrow and take
opportunity to learn and grow.

QUALITY & INNOVATION

We do not compromise on quality. We relentlessly drive for better, fit for-purpose

solutions and breakthrough innovations

FREEDOM & RESPONSIBILITY

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We have the freedom to take initiative and act decisively in the best interests of
Tetra Pa and our customers. We take responsibility for our actions and contribute
to the communitites in which we operate.

PARTNERSHIP & FUN

We respect and rely on one another and all our stakeholders for exceptional
results. We enjoy working together and celebrating our achievements.

Emphasize cost driven innovation is about improving our and our customers
competitiveness as well as regaining our technology leadership. It is doing more for
less.

Drive operational performance is about securing that we are doing things better,
faster and cheaper. Our ambition is to be the undisputed cost and quality leader in
all that we do.
Customers need faster, better and cheaper developments to reduce their
operational costs and to increase their performance in order to remain
competitive. Tetra Pak invests in technology and new products in response to
customer, consumer and market dynamics.
Deliver value for money

• Maintain customer system cost advantage vs. competition

• Continuously improve system performance and cost position

• Increase value by better reliability and functionality

• Secure technology leadership

Renowned for its flexibility and cost effective solutions, Tetra Pak has been
delivering cutting edge processing solutions for over 80 years. The company prides
itself on developing bespoke systems that are robust and use only the highest
quality components to ensure continual operation, reliability and efficiency.
Tetra Pak has a global reputation for delivering value for money, quality service
and equipment.

Prove undisputed quality leadership

• Make Tetra Pak the undisputed industry leader in quality

• Drive flawless operation reducing cost of quality

• Increase speed and effectiveness of issue resolution

Tetra Pak ambition is to become the undisputed leader for quality. Tetra Pak plans
the following steps to achieve this objective
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• Data extrapolation and interpretation, statistical analysis, forecasting and

trending, and report production including the development of professional-
level graphs and charts.
• Utilize data quality tools to determine root causes of data quality issues

• Collaborate directly with the business data owners to continuously improve

data collection and analysis procedures. Provide quality data analysis
training

Improve productivity and customer service

• Increase operational effectiveness via process optimization

• Improve cost/expense and capital efficiency continuously

Tetra Pak has always been keen on employee behavior and customer service.
Customer satisfaction is the major focus of Tetra Pak.

2.2 Decision making process

Identification of a problem

Identification of decision criteria

Allocation of weights to criteria

Development of alternatives

Analysis of alternatives

Selection of an alternative

Implementation of the alternative.

The steps are explained with the help of the following example:
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Identifying a Problem:

Every decision starts with a problem, a discrepancy between an existing and a

desired condition.
Pakistan’s large indigenous consumer market and rapid growth in the dairy and
beverage industry has encouraged Tetra Pak to invest €90 million in a new plant at
the Sundar Industrial Estate in Lahore. The 42-acre facility will produce eight
billion packages per year that could be doubled to 16 billion. The need for the
factory was felt as TetraPak realized the increasing amount of customers and that
they were not able to fulfill the customer’s needs.

Identifying the decision criteria:

Once a problem has been identified the next step is to identify the decision
criteria. TetraPak’s criteria involve customer satisfaction, to meet customer
expectation and to stay ahead of the other competitors existing in the market.

Developing Alternatives
• Increase the capacity of the existing factory
• Import packaging material from other factories of the world
• Introduce latest machinery to the factory for a better enhanced final
product
• Improve their service products such as the pre-production services,
production services, improvement services and training services.

Analyzing the alternatives:

All of the above alternatives are equally important.

Implementing the Alternative:

Managers need to assess the environment for any changes especially in a long term
decision and since this is a long term decision the entire environment factors
should be evaluated again. All the risk factors, uncertainty should be considered
before implementing the alternative.

Evaluating decision effectiveness

The company is soon to be starting to operate and since it’s a vast company it will
surely solve the problem TetraPak is facing. They will be able to fulfill customer
expectations as the existing factory was not sufficient to fulfill the needs of the
customers and the competition was rising.
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2.3 Strategic Planning:

Strategic Management:
The strategic management process is a process which describes planning that must
take place, implementation and evaluation.

Identifying the Organization’s current Mission, Goals and strategies:

TetraPak has set goals for continuous improvement in their development, sourcing,
manufacturing, and transportation activities.

Every organization needs a mission or purpose

TetraPak’s mission
‘We believe in responsible industry leadership, creating profitable growth in
harmony with environmental sustainability and good corporate citizenship’

TetraPak has a Climate Goal

Tetra Pak has set an aggressive climate goal. By 2010, we will achieve a 10%
reduction of CO2 emissions compared to 2005, in absolute terms.

2.4 SWOT Analysis with respect to 5 P’s

Product

Strengths
Their biggest strength is that they have the complete monopoly in
Pakistan. There is no other packaging company in Pakistan.
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a. Their other strength is getting ISO 9001 and ISO 14001 accreditation,
making it the first and only packaging company in Pakistan to achieve
the honor.
b. Their biggest strength is their goodwill and old name because it is the
only packaging company in Pakistan.
c. It is the most trusted company in Pakistan. They offer packaging to
products of 18 companies in Pakistan.

Price

Strengths

Their price depends on their customer’s price. Their mostly

customers are targeting upper and upper middle class. So they
did packaging on their customer’s demand.

Weaknesses

Mostly customers of Tetra Pak targeted toward upper and upper

middle class and their prices are somewhat higher. So, this also
affects their sales.

Opportunities

They have the price according to their customer demands. They

have their customers from all classes i.e. from upper to lower.
So they have different price levels for all the classes.

Threats

They have the threat that in future may be their new

competitors target all classes at lower prices.

Place

Strengths

a. They have their sales offices in the major cities of Pakistan. They
first introduced Tetra Pak in collaboration in packages in Pakistan,
so their main office is in Lahore. Also, they have their other offices
in Islamabad and Karachi etc.
b. Their packaging is well known and distributed in almost all the
big
and small places in Pakistan.

Weaknesses
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They don’t have any sales offices in small but rich industrial
cities like Faisalabad etc. This may have a negative effect on
their sales in future.

Opportunities

It is their opportunity that they have sales offices in major cities

of the country like Lahore, Islamabad and Karachi.

Threats

They have the threat that new competitors enter at any time in
the market. As Tetra Pak has no sales offices at small cities, so
may are new competitors will target those small cities. So this is
the main threat for them.

Promotion

Strengths

a. Although their ads are not regularly presented in television,

yet they have the successful ad campaigns due to the presence
of the well-known personalities.
b. They have the good relationship with wholesalers, retailers
and dealers.
c. They also promote heavily by arranging seminars, functions,
and press conferences.
d. They also launched their new techniques by first introducing
them through.

Weaknesses

Tetra Pak’s advertising is not frequent enough to attract

people.
Their ad though successful but should be changed now.

Opportunities

They have very good image in the market as they arrange

seminars and campaigns on launching of their new products.

Threats

They have the threat that may be their new competitors think of
any new and challenging campaign just to increase their
popularity.
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Positioning

Tetra Pak have positioned their packaging world wide as:

“Protects what’s good”

In Pakistan, the milk is more used than juices, so they are creating
the image of their product (packaging) by using the slogan

“Doodh, Aur Kiya!”

2.5 Planning Tools and Techniques

Now we look forward to see which techniques have been developed to help
managers in planning.

Environmental Scanning

“The screening of large amounts of information to anticipate and interpret

changes in the environment”

It involves two basic parts:

• Competitor Intelligence

“Activity to identify who competitors are, what they are doing and
how their actions will effect the organization”

As there is no competitor of Tetra Pak in Pakistan, so they have no need of

Competitor Intelligence and Reverse Engineering.

• Global Scanning

“Screening of information on global forces that might affect an

organization that has global interests”

It is important for Tetra Pak to globally scan its organization, as it is a

very huge industry. Also because world markets are complex and
dynamic, managers have expected the scope of their sacking effort to
gain vital information on global forces. Tetra Pak use information
networks and computerized systems to monitor global changes.

Forecasting

“Forecasting is the process of predicting organization’s outcome”

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In Tetra Pak, both the methods of forecasting are used:

• Quantitative Forecasting

Tetra Pak applies a set of mathematical and statistical rules to a series

of past data to predict outcomes.

• Qualitative Forecasting

As Tetra Pak has very qualified managers and employees, so they used to
make their organization’s decisions on the basis of their experience,
intelligence and judgment.

Benchmarking

“The search for the best practices among competitors or non competitors
that led to their superior performance”

In Tetra Pak, benchmarking is not used, as there is no competitor. Yes, to

overcome the threat of competitors in the futures, they change according to
the new market and current demand and also according to their customer
requirements.

2.6 Technique for allocating resources

“Resources are the assets of the organization and include financial, physical,
human and intangible resources”

There are number of techniques to allocate resources. In Tetra Pak, following

technique is used.

Budgeting

“It is the process of building a numerical plan for allocating resources to specific
activities”

Tetra Pak used this method to allocate resources to specific activities

performed in the organization. Managers typically prepare budgets for
revenues, expenses, and large capital expenditures such as equipment.

Tetra Pak’s Budgeted Sales-2010

2004 Total net sales (bio Euro) 7.3

Packages delivered (million) 104,975
Liters of products delivered in Tetra Pak packages 58,820
(million)
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Employees 21 100
Machine assembly plants 15
Packaging and packaging material plants 65
Number of markets 165
Market companies 58
Sales offices 47
R&D centers 20
Service centers 59
Packaging machines in operation 8,702
Packaging machine deliveries 768
Processing units in operation 20,730
Processing units deliveries 2,630
Distribution equipment in operation 12,332
Distribution equipment deliveries 1,501

2.7 Corporate strategy:

A corporate strategy is one that specifies what businesses a company is in or wants
to be in and what it wants to do with those businesses. It is based on the goals and
missions of the organization.

Growth Strategy:
With a growth strategy an organization expands the number if markets served or
products offered, either through its current business or through new business.
Because of the growth strategy an organization may increase its revenues, number
if employees, or market share. TetraPak is using the growth strategy and is
expanding its business and as well as in innovating new prodcuts. TetraPAk focuses
on concentration strategy. An organization that grows using concentration focuses
on its primary line of business and increases the number of products offered or
markets served in that primary business. TetraPak’s launch of a new factory in
sunder area in Lahore will boost its sales and revenue as well as fulfill the
customer’s needs.The methods adopted by TetraPak are appropriate in the view of
their environment and strategy.
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Module 3: ORGANIZING

ORGANIZING

WHAT IS ORGANIZING?

Arranging and structuring work to accomplish an organization’s goals.

3.1 PURPOSES OF ORGANIZING

• Divides work to be done into specific jobs and departments.
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• Assigns tasks and responsibilities associated with individual jobs

• Coordinates diverse organizational tasks

• Clusters jobs into units

• Establishes relationships among individuals, groups and departments.

• Establishes formal lines of authority

• Allocates and deploys organizational resources.

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WORK SPECIALIZATION
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The degree to which tasks in an organization are divided into separate jobs.

Tetra Pak has veryHigh work specialization. The departments being made
according to the different work activities. For example, there are different
departments of Management Technical, Processing, Marketing, Finance, Human
Resource and many
more. So, in this way work is being specialized in Tetra Pak.

Departmentalization
“The basis by which jobs are grouped together”
In departmentalization, Tetra Pak uses Functional Departmentalization. In
Tetra Pak, jobs are being divided according to the function they perform. For
example, all the finance people come under finance department.

Chain of Command
“The continuous line of authority that extends from upper organizational
levels to the lowest levels and clarifies who reports to whom”
There are three things in chain of command for Tetra Pak. Tetra Pak uses
Authority that gives to the top management to tell all the people what to do
and expect them to do it. Then there comes,R es pons ibility, now after getting
decisions from the top managers, it is the duty of all the employees to perform
their assigned tasks. Then last but not the least, comes, Unity of command, it
is also present in Tetra Pak, each person or first line manager reports to
middle manager and middle manager and middle manager then reports to top
level manager.

Decentralization
“The degrees to which lower-level employees provide input or actually
make decisions”
In Tetra Pak, there is a concept of decentralization. Every person from upper
to lower level is involved in making organization’s decision.

Formalization
“The degree to which jobs within the organization are standardized and the
extent to which employee behavior is guided by rules and procedures

In Tetra Pak, formalization isLow. Employees have a great deal of freedom to

work in what the ways they like and job behaviors are relatively unstructured.

3.2 Organizational Design

Organic Organization
“An organization design that’s highly adaptive and flexible”
Tetra Pak uses this organic structure because of its extremely dynamic
environment. There is a high work specialization, low formalization, and they
change rapidly as need requires. Employees are highly trained to handle all kind
of jobs that are assigned to them. There is high decentralization andcr oss -
functional team to perform certain duties of the organization.

3.3 Contingency Factors

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Strategy and Structure

At Tetra Pak , both organic and mechanistic structures exist which enable work
efficiency. At the factory, mechanistic structure is followed strictly. Quite a few
predefined procedures are followed religiously and deviation from them is not
allowed. However at the market company organic structure exists. Teams are
given a goal which they try and achieve with their own innovation and creativity.

Size and Structure

There’s considerable evidence that the size of the organization affects its
structure. Tetra Pak is a flat organization because it is essential for a company like
tetra Pak to have smaller levels of command. There are generally just 3 levels in
single market company i.e executives, directors and managers. Having said 7that,
as the size of the organization is flat , the structure prevails accordingly.

Technology and Structure

Envoirnmental Uncertainity and Structure

Employee’s Motivation
“Motivation is the willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s ability to satisfy some
individual need”
Tetra Pak use two theories to motivate its employees.
 Herzberg’s Motivation-Hygiene Theory
“The motivation theory that intrinsic factors are related to job
satisfaction and motivation, whereas extrinsic factors are associated
with job dissatisfaction”
Tetra Pak uses this theory because they believe that an employee’s relation to
his or her work is a basic one and that his or her attitude toward work
determines success or failure. So, it is very important to know that what people
want from their jobs. Tetra Pak is very much concerned by this factor, it always
gave incentives to its employees as well as observed that whether this employee
is suitable for this job or not and if he or she is suitable and working better then
sees that is he or she is happy to be on this post or not

3.4 HR Planning:

The information which we received from the HR manager of Tetra Pak

Pakistan is that they only recruit people from outside (external hiring)
because of specialization in engineering and process. They need high caliber
engineers, operation managers, supply chain managers and marketing and
finance managers. They also require blue collar employees.
Recruitment Planning:
Tetra Pak’s official recruitment channel is its website (www.tetrapak.com
). On
the website you will find all available positions and work opportunities in our
group. Please register your curriculum vitae in our electronic database.
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According to most recent calculation, thousands of workers are working in

Tetra Pak. This is a rough figure as more hiring has been done in the fresh
past. Tetra Pak follows a set process for hiring more employees. The major
document in this connection is the "Recruitment Requisition Form". This
document is used in all three instances; such as for:

Replacement:
An employment opportunity may arise either after discussing or budgeting a
situation on the resignation of some employee or on an imperative need
basis. In all three situations, the department head has to attain support from
the Managing Director (MD). If the demand is budgeted, then the Divisional
Head fills up a "Recruitment Form". This form contains the complete
information; i.e.
• Date of initiation
• Date the employee is needed Profile
• Job description

After receiving the document the human resource department puts up an

advertisement in the newspaper or it directly associates placement officers at
a range of institutes. Approximately few of the resumes are selected and
accessible to the divisional heads. On their approval the candidates are
called for interviews and the most appropriate are in conclusion chosen.

Management trainees:

The procedure for selecting fresh graduates at Tetra Pak is bit different as
the trainees cannot be diminutive scheduled during their CV's. Management
trainees are fresh alumnae or they have one year understanding at the most.
Management trainees are not called directly. They are contacted through
their placement officers. Salaries or profit of the management trainees do not
ebb and flow with their specialization. Similarly the preparation phase is the
same, whether they are chosen for marketing or finance.

Succession plan:

The sequence plan at Tetra Pak is made by the department head. He chooses
his possess descendant. It is the duty of the departmental head to train
someone for his work, so that there is a person to takeover in case he is
transferred.

Job assessment:

There is a classified system of job measurement at Tetra Pak answerability

incentives in the form of business or services are make available to
employees the theater well. Employees form the domestic impartiality of the
company. Therefore, equally justifying measures are taken to satisfy and
motivate the employees.
 29

Selection Process:

All of the work information we have provided is the part of recruiting process,
following information is the minimum criteria that Hr managers hire for
specific job.

Required Degrees:
All University Degrees with a focus on:
• Engineering (Mechanical, Mechatronic, Electronic, Electric,
Management, and Material).
• Economics, Marketing, MBA.
• Chemistry, CTF, Food Sciences and Technologies, Food Engineering.
Mandatory skills:
Since Tetra Pak is an international company, a good knowledge of written
and spoken English is a must as well as the ability to work together with
other team members.

Training and Development

Performance Appraisal:
Tetra Pak have different criteria’s for selection of manager and employees
performance assessment.
For managers they use:
•
Paired comparison analysis
•
Behaviorally anchored rating scales
•
Performance ranking method
For employees they prefer:
•
360 degree performance appraisal
•
Behavioral Observation Scales

3.5 Compensation Benefit:

Tetra pak provides with 3 main types of compensation benefits to their

employees which are listed below:

• Voluntary Benefits:
Retirement benefits
Insurance benefits

• Mandatory Benefits:
 30

workers' compensation
family and medical leave

Motivational strategies:

Pick and Drop Facilities:

Tetra Pak provide their employee pick and drop facility, the timing of
employee come in to the workplace is also not disturbed. All employees are
relatively on the time in their workplace.
Good Working Environment:
Working environment is very suitable for employees. Tetra Pak is multi
national company so they provide their employees effective working
environment that encourage employee to done their work continues
effectively.

Voluntary Benefits:

Tetra Pak makes a number of voluntary benefits available to you through an

outside service provider, including auto and home insurance, prepaid legal
services and pet insurance
Tetra Pak culture is driven by fundamental core values, which keep our team
together and give us a true competitive advantage.
They are:
• Freedom with Accountability
• Partnership with Customers, Suppliers and Colleagues
• Long-Term Perspective
• Innovation and Creativity
• Commitment and Fun
We believe in good corporate citizenship and responsible industry leadership.
Our motto "protects what's good"™ reflects the philosophy upon which we
conduct our business in order to make food safe and available, everywhere.

3.6 ONE TETRA PAK, ONE TEAM:

We are looking for talented young persons, who are motivated, enthusiastic
and willing to learn. Our people are team players, results-oriented and have a
strong desire to work in a diverse and stimulating environment alongside
colleagues of many different nationalities. Our minds are organized,
proactive and innovative, while our characters are communicative and
entrepreneurial.

» TETRA PAK PEOPLE:

The continuous improvement of personal knowledge and skills is the base of

our employment concept. As we believe that people make the difference we
increase personal competences by building up a development plan
formulated on the specific needs of our organization and of our employees.
 31

Module 4: LEADING
 32

Leading

4.1 What is Leading?

Leading is a process in which an individual is influencing others and has managerial
authority. Leaders help themselves and others to do the right things. They set
direction, build an inspiring vision, and create something new. Leadership is about
mapping out where you need to go to "win" as a team or an organization.
Leadership is dynamic, vibrant, and inspiring.

Who are Leaders?

Leader is someone who can influence others and who has managerial authority. All
managers should be Leaders. Leadership is what leaders do.

Traits of Leadership
• Drive. Leaders are ambitious and take initiative.

• Motivation. Leaders want to lead and are willing to take charge.

• Honesty and integrity. Leaders are truthful and do what they say they will
do.
 33

• Self-confidence. Leaders are assertive and decisive and enjoy taking risks.
They admit mistakes and foster trust and commitment to a vision. Leaders
are emotionally stable rather than recklessly adventurous.

• Cognitive ability. Leaders are intelligent, perceptive, and conceptually

skilled, but are not necessarily geniuses. They show analytical ability, good
judgment, and the capacity to think strategically.

• Business knowledge. Leaders tend to have technical expertise in their

businesses.

4.2 Effective leadership checklist

1- able to handle the boss or other managers

2- able to manage time wisely- can establish priorities and not get swamped down
by minor details
3- Results oriented: “I do not care how you do it. Just do it.”
4- Able to read between the lines. People do not always tell you everything-how
they say something is often as important as what they say.
5- A good example of employees. They can not break the rules and expect
employees to adhere to them
6- Able to handle emergencies.
7- Firm, yet fair-a very difficult combination.
8- Able to be close to employees and still be the boss- particularly difficult when
managing friends and former peers
9- Effective at handling problem employees. These tough cases will consume great
amounts of supervisory time and energy.
10- Decisive even in highly ambiguous situations. Supervisors should not be
paralyzed into inaction due to a lack of information.
11- Politically skilled
12- Able to use authority wisely. Too much use of authority and you are a tyrant:
too little and you are a cream puff.
13- Patient
14- Good at handling stress. They must resist taking job-related stress home since
this can damage ones family/social life.
15- Motivated. They have to like the supervisory job in spite of all its problems and
have the will to manage

In this report, we sought to discover what leadership techniques and group skills
are actually practiced by Tetra Pak’s employees.

4.3 Work Group Behavior in Tetra Pak

When analyzing an organization’s leadership and teamwork skills, it is useful to
first analyze the organization’s work culture and how this culture is maintained.
The work culture of Tetra Pak seems highly dependent upon the line managers at
any given point in time. One would imagine that the manager would almost always
use position power and would use a telling style of leadership .However, in the
majority of cases the managers are relatively relaxed and sometimes are
indistinguishable from the other employees. In general, the managers dont try to
 34

put any strong vertical barriers between themselves and their employees.
Managers display real concern and interest in the emotions and well being of their
employees.
By addressing employees higher needs by providing training they make employees
feel important and valuable. Training also serves to reinforce the culture at all
levels through education and fostering a positive image of the employees’
importance to the company.
Tetra Pak’s Motivating Factors

Tetra Pak’s culture is generally inviting for new employees. A primary motivation
for working in Tetra Pak is that it presents a laid back environment. But this does
not mean that they are not being monitored. Proper controls are in place so that
the employees do not forget their goals. But at the same time they are relaxed and
for the most part dont seem to fear their managers or other bosses. Fear can
weaken trust and communication, and usually impedes employees rather than
motivates them.
“Motivation is the willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s ability to satisfy some
individual need”
Tetra Pak use two theories to motivate its employees.
Herzberg’s Motivation-Hygiene Theory
“The motivation theory that intrinsic factors are related to job satisfaction and
motivation, whereas extrinsic factors are associated with job dissatisfaction”
Tetra Pak uses this theory because they believe that an employee’s relation to his
or her work is a basic one and that his or her attitude toward work determines
success or failure. So, it is very important to know that what people want from
their jobs. Tetra Pak is very much concerned by this factor, it always gave
incentives to its employees as well as observed that whether this employee is
suitable for this job or not and if he or she is suitable and working better then sees
that is he or she is happy to be on this post or not.
Three-Needs Theory
“This is the motivation theory that says three needs – achievqement, power,
and affiliation – are major motives in work”

Tetra Pak uses this theory to motivate its employees. First is need of achievement,
this is necessary for personal achievement of employees because then they think
of their accomplishments and not on the rewards. Then comes, need for power,
they need to make others behaved a way that they wouldn’t have behaved
otherwise. And the last is need for affiliation, means the desire for friendly and
close interpersonal relationships.

Tetra Pak also arranges different events and rewards to motivate its employees
like:

• Trips

• Concerts

• Annual Employees Day

 35

• Employee of the month

• Bonus

• Parties
Tetra Pak is present in 165 markets every day, normally on call around the clock.
That wouldn't be possible, of course, if it weren't for committed employees.
Working is a big part of life. Sometimes you probably spend more time at work and
with your colleagues, than with family and friends. Therefore it's so very important
that you feel not only satisfied but also challenged by your daily tasks - and that
your work allows for personal space and leisure activities in between. Only then
you can perform well in the long run.That kind of working environment is what
Tetra Pak is trying to provide; part of a culture that flows through all levels and to
each individual in the organization.

4.4 Leadership Styles & Behavioral Dimension

The managers’ leadership behavior reflects a task-oriented style for the
subordinates. The commitment and positive attitude towards a given task are
derived from the employees’ motivations and leader behavior. According to the
Path-Goal Theory, for tasks which are characterized as repetitive, unchallenging,
mundane and mechanical, the group members tend to be unsatisfied and in need
of affiliation and human touch. Therefore, the most suitable leader behavior for
this type of environment is the supportive leadership that provides nurturance and
makes the work pleasant for subordinates.
“It is the process of influencing a group toward the achievement of goals”
Democratic Style
In Tetra Pak, democratic style is used for leadership because all the managers and
leaders involve every single person in decision-making and also encourage
participation in deciding the work activities, methods and goals.
Because in Tetra Pak they believe in giving their employees the combination of
freedom with accountability in their experience results it is the one of the best
solution. They want their employees to make the most of what they have got.
They also expect their employees to work in partnership with all other colleagues
in all parts of the company, focusing at all times on finding the best solutions.
 36

Module 5: CONTROLLING
 37

Controlling
5.1 What is controlling?

Controlling is a process of monitoring, comparing and correcting work

performance. All managers should control, even if they think their units are
performing as planned; they can’t really know how units are performing unless
they’ve evaluated what activities have been done and compared actual
performance against desired standard. Effective controls ensure that activities are
completed in ways that lead to the attainment of goals. Whether controls are
effective, then, is determined by how well they help employees and managers
achieve their goals.

5.2 Characteristics of Controlling

• Control is a continuous process

• Control is a management process

• Control is embedded in each level of organizational hierarchy

• Control is forward looking

• Control is closely linked with planning

• Control is a tool for achieving organizational activities

Why is control so important?

Control helps management because it helps managers know whether organizational
goals are being met and, if they’re not being met, the reasons why. The value of
the control function can be seen in three specific areas:

1. Planning
2. Empowering employees
3. Protecting the workplace

5.3 Control and Planning in Tetra Pak

As already discussed in ample detail in the previous parts of the report, Tetra Pak
has a very efficient way of how planning is done. It includes the setting of mission,
goals, objections, strategies etc, but just stating the goals, or having the
employees accept the goals doesn’t guarantee that the necessary actions to
accomplish those goals have been taken. As the old saying goes, “the best-laid
plans often go away”. In Tetra Pak the process of control starts from the very
 38

process of planning. “Follow up” is the word used religiously in Tetra Pak. It’s
understood by each and every employee religiously. The managers ensure very
close follow up so that employees are clear about what they are supposed to do
and have clear directions towards achievement of the set goals. Control works as a
critical link back to planning. Tetra Pak ensures appropriate controls so that there
are no deviations from the long term and short term planned goals.

In Tetra Pak, as main and strategic planning is done by the Global Hub Team and
other diluted parts of planning are done by the Market companies, thus different
kinds of control are required. In case of strategic planning, the controls are set up
by the Global Team itself, and then further controls are placed down in the Market
companies.

Control and Employee Empowerment in Tetra Pak

As Tetra Pak is a “flat” organization, and has both organic and mechanistic
organizational structure prevailing in the organization. Having said that, both
“types” of structures have different kinds of requirements and prerequisites. If we
talk about the factory side, the processes are well defined and deviations from
them are not possible and are very limited. Therefore, in those parts of the
organizations are employees are not “expected” to contribute a lot in terms of
decision making etc. They are required to follow the defines SOPs and procedures
and deviations from them can be dangerous as when as may hinder in the
productivity and efficiency. Thus, here the empowerment is limited.

On the contrary, in the market company side, or in other words, the support
departments, there is a great deal of employee empowerment. Tetra Pak believes
that empowered employees are motivated employees. It lets the best to come out
of them, when people are given the freedom to act as per their mental capacity
and when they are themselves able to identify how and what processed can be
improved. But this does not mean that they are not being monitored. Proper
controls are in place so that the employees do not forget their and direction
towards the same, common goal of company’s overall interest. The Managers at
Tetra Pak are expected to both; let their subordinates have the freedom of being
creative and let them use their skills fully; and on the same side keep close check
and follow up on the designated tasks. They help their subordinates in being
creative and asking for periodic reports on the to-date performances.

5.4 Control and Protection of Workplace in Tetra Pak

Tetra Pak strongly believes in security of its employees. It has always been its
foremost priority that its employees are safe and protected when at work,
travelling or otherwise as well. Proper security process have been set in place
which ensure that people are not only protected, but are also aware of the
importance of being alert and careful. Many trainings have been conducted to
guide employees of procedures like fire drills, how to use extinguishers, what to do
if there is any terrorist threat, strikes, blasts etc. Employees are given proper list
of hotels they may stay in when travelling, which are ensured to be the safest.
 39

They are informed on day to day security conditions of the country and intimated
immediately incase of any mishap. A team of wardens works all the time to ensure
that people are protected and feel that way as well.

Similarly, along with people, the assets of Tetra Pak are also protected. Car
insurances, company insurances etc are available and kept up to date. Employees
are given lavish health facilities, including health insurance etc, which is yet
another facility that makes employee feel protected,

In factory, very strong controls are put in place so that there are minimum threats
to the people working in the factory. The results have always been very positive.
Tetra Pak, has no doubt always gone an extra mile to make its people feel
protected and taken care off.

Plannin
g
Goal
s
Objectiv
es
Strategi
es
Plan
Controlli s
ng Organizi
Standar ng
ds Structu
Measureme re
nts Huma Resourc
Comparis n e
on
Action Managemen
Leadin t
s
g
Motivati
on
Leadersh
ip
Communicati
on
Individu an
al Group d
Behaviour
 40

5.5 The Control Process

Tetra Pak follows the following control process in its monitoring:

STEP 1: Measuring

As per the basic concept of measuring the actual performance, manager needs to
have detailed knowledge and information about it. So if we talk about how Tetra
Pak Measures performance, depends on which part/process is being measured. This
measurement can be figured out through different way like statistical, oral and
written reports along with personal observation. Tetra Pak uses combination of
different approaches varies from product to product.

Along with how we measure another critical element is what we measure. As

selecting the wrong method can create real problems. Besides what is measure
often determines what employees will do. What control criteria might managers
use?

Like if we want to control the waste of packing material, we need to have a clear
idea for total number of packs we are producing on daily basis along with it
percentage ratio of waste. Keeping costs within budget is also a fairly common
control measure. Other control criteria should recognize the different activities
that managers supervise. So a manager should understand

Total number of packs we are producing per day

Average waste
Maximum production capacity plant
Consumption/Requirement

Graph

Advantages Drawbacks
Personal Observations Get firsthand knowledge Subject to personal biases
Information is not filtered Time consuming
Intensive coverage of work Obtrusive
activities
Statistical Reports Easy to visualize Provide limited
information
Effective for showing Ignore subjective factors
relationships
Oral Reports Fast way to get Information is filtered
information
Allow for verbal and non Information cannot be
verbal feedback documented
 41

Written Reports Comprehensive Take more time to

prepare
Formal
Easy to file and retrieve

Most work activities can be expressed in quantifiable terms, but when they cannot
manager should use subjective measures. Although such measure may have
limitations, having them in better than having no standards at all and doing no
controlling.

Step II-Comparing

Comparing step determines the variation between actual performance and a

standard. Although some variation in performance can be expected in all
activities, it’s critical to determine an acceptable range of variation, Deviations
outside this range need attention. Like if we discuss quality of the packaging
material being made in the factories, the element of deviation is zero due to the
criticality of the product.

Similarly, there could be a great deal of variation in actual and standard

performance in support departments. But, in Tetra Pak, such deviations are also
considered a Taboo. We are required to plan such critically, that deviations are
minimum. The targets, even if qualitative, need to be chalked out after extensive
planning, and are almost in all conditions achieved. Exceptions do come in when
there are acute conditional changes, for eg. The security conditions in Pakistan.
Only then the targets may be revised, and accordingly the standards are adjusted.

Acceptab
Upper
le
Limit

Standa Acceptab
rd Range
le
Variati
of
on
Acceptab
Lower
le
Limit

+ + + + +
t t t t t t
1 2
Time 3 4 5
t)
Period (
 42

This graph shows the realtionship between the time period and the overall goal
achievement so far. In case of Tetra Pak, almost NEVER the unacceptable is
accepted.

Step III-Taking Managerial Action

Managers can choose among three possible courses of action: do nothing, correct
the actual performance, or revise the standard. “Do nothing” is self-explanatory,
so let’s look at the other two.

Correct actual performance:

Manager could take different corrective actions depending on what the problem is.
For instance, in case of Tetra Pak, if unsatisfactory work is the reason for
performance variations, the managers correct it by implementing training
programs, taking disciplinary action, making changes in compensation practices,
and so forth. Trainings are given extreme importance in Tetra Pak primarily
because below standard work is not accepted at all. Global sync is expected and
worked upon accordingly, such that there are no deviations in work standards all
over the world, in between Market Companies.

Revise the Standard:

In some cases, variance may be a result of an unrealistic standard – a goal that’s

too low or too high. As discussed earlier, revision in standards ONLY takes place in
Tetra Pak, when the uncontrollable factors engage. Standards are revised rarely,
and expected to be achieved even if things get hard, but changed only when they
become “unachievable”.

Summary of Managerial decisions

Below mention graph summarizes the decisions a manager make in controlling. The
standards are goals that were developed during the planning process. These goals
provide the basis for the control process, which involves measuring actual
performance and comparing it against the standard. Depending on the results, a
manager’s decision is to do nothing, correct the performance, or revise the
standard.
 43

Controlling for organizational performance

Cost efficiency is a top priority for Tetra Pak as well. The implementation of WCM
is the biggest example. WCM is a process of World Class Management whose target
is “Zero wastage”, which in hand results in cost efficiency. This concept and
process of continuous improvement is implemented in both the Factory and the
market company. It focuses on making the processes so efficient that the resources
are employed efficiently and at their fullest.

5.6 What is organizational performance?

Performance is actually the end result of any activity. Managers at Tetra Pak are
concerned with organizational performance.Managers are required to religiously
follow organization plans such as the overall organizational goals are focused and
achieved. The accumulated results of all the work activities in the organization.
After a;; its unlikely that they wants (or intend) to manage their way to mediocre
performance. They want their organizations, work units or work groups to achieve
high levels of performance.

Measures of organizational performance

In Tetra Pak , the organizational performance is measured both on quantitative

and qualitative KPIs.The approach is different in both factory and the market
company side but the aim and outcomes are measured on same threshold of
performance excellence.

5.7 Organizational Effectiveness

It’s measuring how appropriate organizational goals are and how well the
organization is achieving its goals.
 44

Industry and company ranking

Tetra Pak has monopolized in almost half of the world industry od food packaging
in terms of aseptic packing and therefore it stands since last many decades as a
market leader. All the policies and overall strategic plans aim to keep this trend
working for many years to come.

Tools for measuring organizational performance

All managers need appropriate tools for monitoring and measuring organizational
performance. Before describing some specific type of control tools, let’s look at
the concepts of feedforwad, concurrent and feedback control.

5.8 Control Processes

“The process of monitoring activities to ensure that they are being

accomplished as planned and of correcting any significant deviations”

Tetra Pak is very conscious about their products, also they have very much responsibility
on overall organizations shoulder to meet customer requirements because they are the
only packaging company in Pakistan. So, they evaluate their overall performance with
actual standards that they were set in their planning phase, so to get the complete idea,
where they stand. So, they apply control processes in the form of:

 Feed Forward Control

Tetra Pak uses this control mechanism to overcome the threat of problems after the
product is in the market and also to prevent anticipated problems. They use this
through the use of timely and accurate information that often is difficult to get. So, by
using this method, they are able to cope with the problems earlier, so they have no
problem after the product is launched in the market.

 Concurrent Control

Tetra Pak sometimes also used Concurrent Control to overcome some of the
problems that may occur in unique situations like in the case of any mishap. In this
situation, they use this control to check the product when the activity is in progress.
In this way they also save the cost of correcting the errors after the product is
launched in the market.
 45

Financial Control

Every business wants to earn a profit. To achieve this goal, managers need
financial controls. Like they analyze quarterly income statements for excessive
expenses. Reduce non profitable expenditure. And they might calculate financial
ratios to ensure that sufficient cash is available to pay ongoing expenses, that debt
levels have not become too high, or that assets are being used productively.
 46

Module 6: SUGGESTIONS AND

RECOMMENDATIONS
 47

Suggestions and Recommendations

After thoroughly explaining in this report, in detail the management functions of

Tetra Pak, we can confidently state that Tetra Pak is undoubtedly a very sound
organization in terms of its Planning, organizing, leading and controlling.
Nonetheless, basing on our own knowledge of the four processes we may give the
following suggestions regarding the improvement of the process:

6.1 Planning
Tetra Pak levies on its strategic planning and after close understanding of their
planning process, we may conclude that their objective and strategies flow in from
their hub, that is the main control, through which the decisions are delegated
down to different market companies. Having said that, at certain levels, it gives an
impression that the individual market companies still have limited authority to
make the “strategic decisions”, which gives an impression that the individual
conditions of the specific countries, their economic, social and enviornmental
conditions are kind of not taken into considerations at the optimum level. If each
Market company is allowed to make its own strategic decisions as well, it may help
the company in overall and realistic objective setting and shall make the
achievement of the goals, more realistic.

Planning is a continous process and is directly linked with the companies overall
growth and direction. At Tetra Pak we also observed that the smallest units of the
oragnization have least contribution and access to the decision making, which may
be benifitting the company as a whole, but may cause de-motivation at those
levels as it translates to employees having a thought that they have no or limited
access to the people who actually influence the way the things are formalized in
the organization works

6.2 Organizing

In the process of organizing, we did not see any lack of organizational skills but
one observation was that the processes are not well defined enough for people to
understand “exactly” how they are expected to deliver. A more definite setting up
of the organizational plans may help the work become clearer and make the
direction and its understanding easier.

6.3 Leading
Although the company claims to have been using the Democratic style of
leadership, and it also is true in most of the situations, but in some situations, a
more rigid style is also observed. Where TOP decisions are implemented and
placed without much discussion and employee engagement. If this element is
considered more carefully, in our suggestion it may help the company, not only, in
 48

motivating its employees but also in making acceptance of changes easier and
productive. Overall the Leadership style is impressive and liked by the
organization, but ro0om of improvement is always there.

6.4 Controlling

Control process is well defined and accepted all over. But in comparison, rigid
controls are observed in the manufacturing side, and a much lesser “quantified”
control process is observed in the support functions. This disparity may affect the
overall balance of the management process. Also, it makes the evaluation process
a bit generic and not that clear. These generic differences may hinder the actual
results and true picture of how and where company lacks and needs to work in
terms of Management. Suggestion would be a more coherent process of control to
be implemented overall.

Customers

Being a market leader, Tetra Pak has a reputation of providing world’s best
packaging material to package food, but in hand this also translates to much
higher prices. Customers overall think that Tetra Pak is expensive and therefore it
gives small competitors to jump in and benefit from it. Suggestion would be that
Tetra Pak should try to lower their prices of both goods and services, so that the
customer satisfaction level could be increased.
 49

Module 7: CONCLUSION
 50

Conclusion

Conclusion:

Today, Tetra Pak it is the only international company in the world able to provide
integrated processing, packaging, and distribution line and plant solutions for food
manufacturing.

This means that Tetra Pak's customers enjoy the advantage of being able to get
multi-product solutions from a single source, with matching equipment at every
stage.

Products

Tetra Pak supplies complete systems for processing,

packaging and distribution. Tetra Pak processing and
packaging systems make economical use of resources.
The processing systems are developed to treat the
products gently, and consumption of raw materials and
energy is minimal during the manufacture and
distribution of packages.

Tetra Pak packages fulfil the main purposes of packaging, namely to:
 maintain product quality

 minimise waste
 reduce distribution costs

Packaging

Tetra Pak can offer packaging machines for a wide range of packaging alternatives.
The company produces packaging machines as well as packaging material.
Processing

Tetra Pak supplies complete processing and packaging lines, and takes total
responsibility for the equipment supplied. Processing equipment includes
separators, heat exchangers, homogenizes and evaporators, as well as equipment
for aseptic processing and flow.
Distribution
 51

A large number of different types of distribution equipment, such as conveyors,

tray packers, film wrappers, crates and roll containers are developed, produced
and marketed by Tetra Pak.

Management Process
After analyzing their complete management process, we can say with utmost
confidence that behind Tetra Pak lies work of extensive strategic planning, good
organizational techniques and farsighted management excellence. They have
thoroughly understood the importance of the four processes of Planning,
organizing leading and controlling and have always levied on improving and moving
with the world pace. They give ample importance to their customers, their
suppliers as well as their employees and therefore it is undoubtedly a World
Leader.
52