Professional Documents
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Mitchells is the only major food company in Pakistan today with fully integrated operations having its own growing and processing facilities at one location. Modern high-volume industrial equipment, professional management and a trained workforce all combine to ensure that Mitchells continues its dominance as the innovator, market leader and trend setter. In this regard a major step was taken in 1998, when Mitchells became the first food company in Pakistan to achieve ISO 9001 accreditation, thus becoming more competitive on the international stage also. Fully computerized and inter-linked regional sales offices ensuring a smooth distribution system with nationwide coverage manage countrywide sales. Highly qualified executives, using modern management tools, handle marketing, commercial, financial and accounting functions from the Head Office in Lahore. Mitchells is playing a vital role in the Pakistans economy. Mitchells has been in the market long before independence and still enjoys a good repute. This is the evidence of the companys dedication, trust and commitment to provide the best quality products in the market. Despite all the odds, Mitchells is still the Market Leader in Squashes, Preserves, and Sauces.
Corporate Mission:
Mission Statement
To be a Leader in the markets we serve by providing quality products and efficient services to our consumers while learning from their feedback to set even higher standards for our products. To be a Company that continuously enhances its superior technological competence to provide innovative solutions and superior products as per requirement of the market place. To be a Company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance.
To be a Company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its investors. To be a Company that endeavors to set the highest standards in corporate ethics in serving society.
Products or services
The ever-growing Mitchells portfolio comprises 9 categories and of over 212 products that grace your dining table at breakfast, lunch and dinner as well as products that may satisfy your sweet tooth at any time of the day.
Market
The target market at the time of launch was up to 60 years of age and the core target was 15-30 years of age. They have two divisions Grocery Products and Confectionery Products to capturing the market and serving to every age of peoples.
Technology
Mitchells has always been keeping itself abreast with the modern technology and updating its machinery and equipment with the passage of time. That is the reason Mitchells has the latest machines for processing of raw material and manufacturing of grocery and confectionery products. This technology update has also brought an advantage of increased production capacity. In order to utilize this capacity, Mitchells has started offering Co-pack services to various organizations, given the technical and R&D expertise that Mitchells possesses. We deal in the
following product categories and welcome organizations from Pakistan as well as abroad who are interested in co-packing of products that we have the capability to make for the client based on his specific requirement.
Philosophy
Each and every Mitchells brand owes its success to the corporate emphasis on universally recognized standards of Quality Control plus Research & Development. The R & D section prepares new recipes and formulations whereas QC approves selection of only the finest fruits/vegetables and flawless processing, and packaging, thus ensuring that all products live up to the consumers high expectations.
Self concept
The firms major strengths and competitive advantages are its ISO 9001 Accreditation, foreign licenses, research and development and quality control and training. What makes it more significant is the fact that ISO 9001 involves all steps in the manufacturing chain; starting from design and development of products to productions right up to distribution. Along with this Mitchells investing huge amount of capital in R & D which can be a major backbone of any organization.
Twenty-five girls' schools have been set up in the Okara district in an endeavor to boost the levels of female literacy. Also a Teachers Training Institute has been set up to provide quality teaching staff to the local schools. Mitchell's assures that it will continue to work towards its aim - promoting education amongst future generations. This whole gives them a very strong and positive image in public opinion.
Technology
To be a Company that continuously enhances its superior technological competence to provide innovative solutions and superior products as per requirement of the market place.
Philosophy
To be a Company that endeavors to set the highest standards in corporate ethics in serving society.
6. The Marketing Department is responsible for planning and developing products and executing their sales at an affordable price through promotional activities. Mitchells new management has set its corporate goal as to build image in customer mind. The old management has not put focus on this point.
Foreign Licensees
In recognition of its dedication to quality and technical expertise, Mitchells was also given proprietary rights by L. Rose and Company Ltd. of England in 1946 to become the sole manufacturer and distributor of their world famous Roses brand of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.
Concentric Diversification
Adding new but related products or services. Mitchells involved in concentric diversification because it has three related businesses that are groceries, confectioneries and chocolates. The raw material, production process, required expertises are very much same. Furthermore the product lines like squashes, syrups, pickles, jams, jellies, marmalades, sauces, diet preserves, vinegars, candies and chocolates are the product lines that are closely related in context of many business aspects. So we can say that Mitchell's is exercising the concentric diversification.
Backward Integration
Seeking ownership or increased control of a firms suppliers.
Mitchell's fruit farms limited are acting on the concept of backward integration. Mitchell's has its own orchards and dairy farms for the smooth flow of raw material that is used in the production of Mitchell's products. 450 acres of land is used for cultivation of raw material. Following fruits requirements are being fulfilled by Mitchells own agriculture land. Lemon Grape Fruit Sevlik Orange Tomato Garlic 100% 100% 100% 30% 30%
Apart from the Mitchell's own orchards, Mitchell's has sound control over its suppliers. For example, the raw material that is used in the Mitchell's is of two types. First is the raw material that is used in the production process and the second is the raw material that is used for the packaging of the products. Package (Pvt.) limited is the sole supplier of the packaging material of the Mitchell's. Mitchell's and packages (Pvt.) limited have the same directorships, so in this way we can say that Mitchell's has good enough influence over the management of the packages (Pvt.) limited.
objective and strategy for achieving it, the lines of business we are in, and how these lines of business fit together. It is useful to think of three components of corporate level strategy: (a) growth or directional strategy (what should be our growth objective, ranging from retrenchment through stability to varying degrees of growth - and how do we accomplish this), (b) portfolio strategy (what should be our portfolio of lines of business, which implicitly requires reconsidering how much
concentration or diversification we should have), and (c) parenting strategy (how we allocate resources and manage capabilities and activities across the portfolio -- where do we put special emphasis, and how much do we integrate our various lines of business). Mitchells strategy formulation process is centralized. All decisions are made by the top level management and also implemented through senior posts. They also take feedback or suggestion from their employees and include them in strategy formulation process. Though they have this environment but the ultimate decisions are made by top level management. Mitchells management takes data from each department while they are formulating any strategy. Management takes information from finance department that we are going to give this kind of policy, whether we have a sufficient amount of finance available or not? Same is the case with production process when management decides to launch a new product, they ask from the production process that whether this production facility is available in our factory or not? Management also involves in formulating policy which did not hurt the behavior of their employees. They do not want to make any policy which hurt or degrade their employees.
4. Provide huge variety of products to cater every need of the customer in grocery 5. Providing such products that increase your appetite in breakfast, Lunch and dinner Goals of Confectionary Division 1. To provide quality confectionaries to compete international brands like Cadbury, Nestle` 2. To meet up the taste of every age customer through delicious confectionaries 3. To satisfy your sweet tooth at any time of the day by yummy chocolates and milk toffee 4. Enhance the confectionaries quality by foreign licensing
Linkage of the Goals of each SBU with the corporate level Goals
Mitchells primary objective is to sell various farm and confectionery products, that high in quality and according to customer demand. When we give innovative and quality products to our customers, our sales as well as our brand image will be improved. We need to provide best quality and finest fruits which also reduce the wastage as well as give a yummy taste to our customer when they open any of our products. Our products should be for all segments and all age of users. The products fulfill their breakfast, lunch and dinner needs. All of our departments are mutually aligned while making a strategy for a division. While in confectionaries Mitchell's products, and the taste that has been winning consumers' hearts for generations, is the result of the Company's ongoing investment in and emphasis on quality control, reinforced by research and development (R & D). Both sections closely coordinate with the Marketing and Exports Office in Lahore where product concepts are initiated and passed on to the R & D section for formulation. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation. Mitchell's Fruit Farms Limited is committed to produce best quality products meeting our customers' requirements at competitive prices, strengthening our position as a quality managed company. Our unique selling proposition is quality .We never compromise on the quality. Even if we got any complain then we immediately replace it. Mitchells believes that success of the organization lies in the satisfaction of its customers. Therefore Mitchells has always given first priority to its customers feedback. The feedbacks
and opinions of the customers are very useful for them and besides this they study the feedback and try to implement that accordingly.
Management gets information from their sales personals and also from surveys to know the need of a certain product. To fulfill the targets Mitchells have very effective distribution and supply chain system. Some targets are set by seasonally, like squashes target can be increased in summers.
Responsiveness
Mitchells also measure SBUs performance through responsiveness. If demand is generated for grocery or confectionery products, how fast they fulfill the demand. And this will only be happen when we have desired amount of inventory available.
Shop Coverage
According to management one KPI is shop coverage. How many shops our marketing team is targeting and how much our products are available on that shops.
Mitchells produce the entire products from their own fruits and claims that Mitchells products are having much more natural ingredient than any other company. This gives an image to the company which did not compromise on quality, because when they purchase raw martial from outside there are many chances of variations in quality so they dont want to take any risk in quality. The Quality Control staff, with a main up-to-date laboratory, two line-control labs for the Groceries and Sugar Confectionery divisions, and an incubation lab, ensures that there is no deficiency in quality standards during production. Secondly enhances its superior technological competence to provide innovative solutions and it derives to the product development. To produce the innovative and new products in market, company allocate huge amount of resources and capital for R & D. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation. And thirdly to attract the investors and maximizing the profitability that derives the market development that is same product in new market globally. Mitchells also exports its products to other part of the world. MITCHELL'S products are being exported to several parts of the world, including UK, USA, and the Middle East. In future the Company is planning to make MITCHELL'S a brand name familiar with households in every part of the world.
and processing facilities at one location. This we can say is not compromising own quality policy which they have mention in the mission statement. Grocery division employees are key source of quality. Human Resource has also the pivotal importance for the company. Management and employee skills are constantly being updated through training courses and study tours both at home and abroad. Currently Mitchells is operating with 32 executive staff members along with a big sales and labor force. Grocery division of Mitchells has the high profit margin as compared to confectionery products. So this division is the highest profit giving and very attractive to the investors. Mitchells want to be a company which combines people, technology, management system and market opportunities to achieve profitable growth and rewards. The success of Mitchells brands is the result of the corporate emphasis laid upon Quality Control reinforced by Research & Development. Corporate ethics are need of todays business environment. Mitchells has promised to set the highest standards in corporate world and has keen interest in serving society. These promises Mitchells has done in its Mission Statement and also for grocery divisions.
Bottled Water Beneath the ground at Mitchells, Renala Khurd, there is a pure source of water containing a perfect natural balance of essential minerals. Mitchells has acquired the best filtration and bottling equipment to offer this high quality bottled water in consumer and bulk packaging. Testing and approval from UK-based laboratory is just one proof of high quality standards that Mitchells maintain. Preserves Mitchells preserves range has been the first choice of every household for 75 years and there is no match to Mitchells preserves range. Mitchells produces best quality preserves based on vacuum cooking technology to preserve flavour and taste.
Sauces Sauces and Chutneys are also one of the specialties of Mitchells. The highly automated lines
Pickles No one knows traditional taste better than Mitchells. Our R&D department is capable of developing any kind of recipe comprising pickled fruits and vegetables.
Canned Fruits and Vegetables Being the leading fruit and vegetables processors of the country, Mitchells has got all the expertise and facilities to process and can, utilizing a fully automatic line, the vegetables and fruits.
Objective
The objective of the strategy depends on management. For which purpose they are developing the strategy? Either management wants to improve the sales of the products and intrested in to launch new product rang for current and potential customers. Currenty the management of Mitchells has changed and new directors and CEO has annoucned. New management has decided to improve the brand image of Mitchells in customers mind. Though Mitchells is a more than 75 years old company but in hayper competition and contionous changing environment to be a customers top of mind is very improtant. The current strategy objective is to enhance the brand image and to be on customers top of mind.
Resource Allocation
Resource allocation is so much important for the strategy formulation because when company makes strategy first they observe all resource that they have and how many more resources are needed for achieving the target. When all information about the resources collected they allocate according to the need and requirements of the all departments, for resources allocation. How management will allocate the resources to improve the brand image of the Mitchells? The assistant brand manager explained this thing in this way that they first take the data from the marketing and sales department and they will check current demand and supply of their products. Next brand manager will talk to the finance people that wheter the sufficint amount of finance is available or not? Do we need to have some other resources to fulfil this campaign? Moreover production department will also be involved to check that in case of more demand is our procuction capacity is sufficent? Then the brand manager decided what steps they have to take for improving the brand image of their products. Either they go for Print or Electronic media. Throughing all this
processes management send the strategy for the final approval to the higher management and then higher management approvve or disapprove the policy with their comments.
Involvement and co-ordination between corporate level managers and Business Unit Managers
Involvements of the all employees toward business success in every organization play a vital role. In Mitchells all employees are co-operate with each other, corporate level manager have more responsibility on all operational activates. But corporate level manager work with the help of business unit managers, like when grocery unit manager face any problem SBU manager report to operational manager and discuss in details and find the solution of the problems. Operational manager also discuses with business level unit before making any police and set target. When grocery unit manager have more demand of any product like in summer when demand of Mitchells Squashes & Syrups increases, business unit manager inform to the operational manager about the demand pattern and operational manager increases the resources of grocery unit. Mitchells have a strong R&D Department that collect all the information from market about existing and new in market. When R&D department find changes in trends R&D team inform to the operational manager and operational manager ask to grocery unit manager about resources available and how much resources needed to overcome to the present situation. Then grocery unit manager inform all the require resources for fulfill the demand. With the great co-operation of managers Mitchells have a good image in the market and get lot of profit.
planning and developing products and executing their sales at an affordable price through promotional activities. The Marketing Department is headed by Marketing Manager MM, who is further assisted by Assistant Brand Managers and Assistant Manager Channel DevelopmentAM (CD). The three Regional Sales Offices situated in Islamabad, Lahore and Karachi - known as RSO (N), RSO(C) and RSO (S), respectively. A Regional Sales Manager termed as RSM supervises each RSO. In RSO (S) and RSO(C), an Assistant Sales Manager termed as ASM assists each RSM.
Customer Analysis
Marketing Department is also responsible for examination and evaluation of consumer needs, desires and wants. Marketing department perform these task through customer surveys and also develop customer profiles. Customer profiles can reveal the demographic characteristics of Mitchells. Buyers, sellers, distributors, salespeople, managers, wholesalers, retailers, suppliers and creditors can all participate in gathering information to successfully identify customers needs and wants.
Selling Products/Services
Selling includes many marketing activities, such as advertising, sales promotions, publicity, personal selling customer relations etc. Mitchells is trying to sell its products with a image of a family brand. Different products of the Mitchells are shown at different occasions. So Mitchells is trying to fit themselves as a family product. It is trying to relate itself with the happy moments of the family. Mitchells trying to convey this message in overall their advertisements.
Pricing
Mitchells pricing goal is to increase sales volume and maintain or increase the market share. In order to seek higher sales volume we often apply discounting techniques or other aggressive pricing strategies. Mitchells had charged premium price due to their brand image in the market for a long time. But, due to shift in demand it has become almost to its competitors.
Distribution
Mitchells adopted the channel-Structure Strategy for distribution. They believe that product should be distributed directly from manufacturer to customer or indirectly through one or more intermediaries. They sell their products sometimes directly and sometimes they sell their products through retailers. Like in Lahore they need to sell their products between the months of March till November where as on the other side in Karachi the demand of the Squashes remain the same throughout the year since there need to have other distribution channels as compare to Lahore. Although Mitchells make use of the direct distribution strategy and indirect distribution strategy and hence that is why the eye level is always filled with the products of Squashes, which leads to a good result of increase in sales.
Organizing
The purpose of organizing is to achieve coordinated effort by defining task and authority relationship. As we know that MITCHELLS Fruit Farms Limited is a manufacturing company, so there is much importance of organizing in the company. Production department is responsible for the organizing raw materials etc.
Motivating
Motivations can be defined as the process of influencing peole to accomplish specific objectives. Mitchell's fruit farms limited provide an attractive career path to their employees. The promotions of the employees are base on their performance as well as experience. Both are considered by the human resource department. The Mitchell's take care of their employees and serve their career goals in a marvelous manner.
Staffing
Recruitment practice is done after particular period of time in the Mitchells Fruit Farms Limited. But if we practically see the recruitment process in the company, we will come to know that the top priority is given to those candidates who have the experience in relevant job and strong internal references. The professional management and skilled labor force is considered as the asset of the company; so Mitchells Fruit Farms Limited take it very serious for the betterment of employees skills and expertise. The company sent the management people in the foreign countries for attending various seminars, workshop and refresher courses.
Controlling
All managers in an organization have controlling responsibilites. Such as conducting performance evaluations and taking necessary actions to minimize inefficincies. The controling fuction of management is particulary improtant for an effective strategy evaluation.
Finance Department
The main objective of the Finance Department in the company is to arrange the finance for the business operations from various sources, control the activities that are related with the finance, maintain and update the companys accounts. Finance department perform following tasks which are as below; 1. To link all departments with each other financially 2. Arrange monetary resources at proper time
3. Allocate resources throughout the organization 4. Deals with banks investment firms, Govt. agencies and tax department. 5. Carry out final auditing and financial records prepared 6. Details of calculations of salaries, income tax and funds for loans 7. Calculate different expenses of the company
System Department
Objective of the System Department of the company is to computerize the business operations of the Mitchells Fruit Farms Limited.
Inventory System
The system department of the company recently introduced the inventory system of the company. This system again increases the efficiency of Planning and Stores Department.
Sales System
To facilitate the Marketing Department and all Regional Sales Offices, the system department introduces a sales system. This system is working very well within the company.
Main Lab
This section of quality control department is used for the lab-scale product development and the testing of incoming raw material; packaging material is done in this section of the department.
Incubation Laboratory
This lab is very important section of the quality control department. This section keeps representative samples as per documented procedures from production for monitoring of shelf life of the products. This section is also responsible for keeping reference samples of products for comparison of colors, flavor, set for comparison as per documented procedures.
Microbiological Laboratory
This section of the department is used for the testing purposes of canned juices, tomato puree, ketchup, and Chili garlic sauce and for hygiene purpose.
Production Department
The major objective of the Production Department is to produce quality goods at minimum cost by utilizing the companys resources in an efficient manner.
Labor Force
In the production department, there are round about 350 workers are working including females laborers. In the department, there are two types of labor force is working for producing the high quality products. 1. Permanent work force 2. Contract work force
Supporting Policies
1. Marketing and sales team must identify new trends (This policy will identify the areas in which Mitchells need to invest and to launch new products. 2. Marketing department will be responsible for gathering data from customers, sales persons, store, and outlets (This policy will tell Mitchells the exact requirement of customer about new products) 3. Marketing department will launch a new advertising campaign at broad level for making Mitchells customer first choice (This policy could allow the company to establish a national reputation)
Divisional Objectives
Increase the divisions revenue from 1381357 in 2009 to 1482466 in 2010
Supporting Policies
Beginning in January 2010, each one of this divisions salespersons must file a weekly activity report that includes the number of stores visited, the number of miles traveled and a report about market trend and customer requirements sales person can get ideas from the stores owner and some survey (This policy could ensure that salespersons bring new trend information which helps in product development) Beginning in January 2010, this division will return to its employees 5 percent of its gross revenues in form of a holiday bonus (This policy could increase the employee productivity)
Supporting Policies
Beginning in January 2010, new equipment must be leased rather than purchased (This policy could reduce tax liabilities and thus allow more funds to be invested in modernizing production process)
Beginning in January 2010, perfect attendance awards in the amount of Rs. 500 rupees will be given to all employees who dont miss a workday in a given year (This policy will decrease absenteeism and increase productivity)
Structure:
CEO
Grocery Division
Confectionary Division
Marketing Manager
Production Manager
Finance Manager
Purchase Manager
department has put a recommendation for a new product, the production and finance department should also acknowledge that. Mitchells must take suggestions from the lower level or blue color workers. This will give them a sense of ownership and they will try to enhance the productivity of the organization.
related areas of operations. The main reason of going to such diversification is that the company has good repute and vast experience of food processing industry. The customers of the company have brand loyalty and ask for Mitchell's products to retailers. Such kind of diversification will facilitate the company to remain prominent in the market and milk its reputation.
Develop Contingencies
Contingency plan can be defined as alternative plans that can be put into effect if certain key events dont occur as expected.
Market Development
We have recommended Product Development as a strategy, but as a contingency Mitchells can also follow Market Development strategy. Because it is falling in space matrix and there are other strategies which can be followed. Many areas in Pakistan where Mitchells products are not available, Mitchells can focus on this opportunity. Although the company exporting its
products to Middle East, Canada, Gulf, Saudi Arabia, U.S.A and European countries. But in these countries, still need of market development is exist.
Market Penetration
If Mitchells focus on its marketing and promotion mix, they can get maximum market share in grocery as well as in confectioneries.
Recommendations
Mitchells fruit farms is one of the best national company that playing very important role in the economy of the country. Mitchells is known as trendsetter, innovator and progressive company in the food industry of Pakistan. Mitchells recent achievements like automation of toffee making process molded chocolate plant, ISO 9001 certification. The company set high standards of quality and has experience of 77 years that help the company to successfully competing even multi-national companies. As according to what we observed from the Mitchells Strategies we have found that Mitchells is sometimes proactive and some time it adopts reactive approach. Mitchells is very much
conscious and careful about its sales and about the customer level satisfaction and since 1933 they tried to maintain a same graph of satisfaction level and give customer a quality, fresh farm products direct from their own farms. Mitchells is very much concerned about its SWOT analysis and keeping a closer eye on every action it can take for the better of its products. 1. The display of Mitchells products is not so good versus its competitors; Mitchells should to build strong relationship with store owner so that they give them suitable shelf spacing. 2. Mitchells should introduce new tastes which are according to the health conscious customer demands. 3. The company can also expand its business in other product ranges like butter, cheese, , snacks etc 4. Promotion mix of Mitchells should improve 5. They should hire a brand ambassador for the publicity of their products. 6. They should improve packages and introduce different size of packaging of the product. 7. Mitchells should launch family packs for providing more utility to customer. 8. Mitchells should improve their distribution network in rural areas
References
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