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STRATEGIC MANAGEMENT MITCHELL’S FRUIT FARMS LTD.
MAJOR BUSINESSES
GROCERIES BUSINESS
CONFECTIONERIES BUSINESS
CHOCOLATES BUSINESS
GROCERIES BUSINESS
We choose the groceries business of Mitchell's fruit farms limited for further study
and analysis..
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STRATEGIC MANAGEMENT MITCHELL’S FRUIT FARMS LTD.
MARMALADES
450 gm Golden Mist Marmalade Rs.48
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STRATEGIC MANAGEMENT MITCHELL’S FRUIT FARMS LTD.
STRATEGIC INTENTION
VISION
“To be competitive in the growing market as the quality managed company”.
MISSION
1. 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.
2. 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.
3. 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.
4. 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.
5. To be a Company that endeavors to set the highest standards in corporate
ethics in serving society.
CORPORATE PHILOSOPHY
The success of Mitchell’s brands is the result of the corporate emphasis laid upon
Quality Control reinforced by Research & Development. The R & D section
prepares new recipes and formulations whereas the QC section ensures selection
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of the finest fruits and error free processing and packaging, thus ensuring that all
products live up to the consumers’ high expectations.
Human Resource is also of the pivotal importance for the Management and
employee skills are constantly being updated through training courses and study
tours both at home and abroad.
QUALITY POLICY
“We, at MITCHELL’S Fruit Farms Limited, are committed to produce best
quality products meeting our customers’ requirements at competitive prices,
strengthening our position as a Quality Managed Company. To meet this
obligation, the company will continue:
ü Updating of employee skills by training.
ü Acquisition of new technology.
ü Re-evaluation of its quality control and quality assurance systems.”
3. The objective of the Finance Department 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 company’s accounts.
4. The objective of the Production Department is to produce quality goods at
minimum cost by utilizing the company’s resources in an efficient manner.
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PROBLEM STATEMENT
Apart from the macro, there are few microenvironment problems. These include:
1. Lack of long-term & short term planning.
2. Determination of future goals.
3. Product availability.
There is not formal planning for the schedules of productions and for achieving
the objectives of the Mitchell's. Whenever any specific raw material is needed, the
suppliers of the company are bound to provide desired raw material within
specified time. Sometimes, the production operation has to stop because of
unavailability of raw material. But this happens rarely. In the most cases, the
suppliers who give much value to Mitchell's provide the raw materials in time. But
commercial department has to face many problems and confusions just because of
this careless attitude of the production, planning & stores department. They give
very less time to suppliers and commercial department for procurement purpose.
The same time of problem is facing in the determination of future goals and
objectives. This is the resultant of above mentioned problem. Because this
problem is not only restricted to production, planning & stores department, this is
occupying the whole corporation.
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When we compare Mitchell's with its competitors, the product availability is very
poor in case of groceries products. Retailers have fewer profit margins in the
Mitchell's. The promotional activities of Mitchell's are also poor than competitors.
So availability of products is a dilemma for the company.
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SITUATION ANALYSIS
PEST ANALYSIS
PEST analysis is used to assess what environmental factors are affecting the
organization, which of them are most important and how they will effect in next
years. It is an indicator of political, economical, social and technological
influences on organization. The analysis of Mitchell’s is as under:
FOREIGN TRADE
This factor is very much important for the Mitchell's fruit farms limited. It is
because the Mitchell’s is importing many raw material items from different
countries of the world. These items include cocoa powder, cocoa butter, lecithin,
tin, aluminum foil, pectin, metal caps, lemon concentrate, hydrogenated palm
kernels and pineapple concentrate. The major importing countries are Philippine,
Germany, china, Indonesia and Malaysia. Most of the foreign suppliers are
working with Mitchell's from last many years. And there are collaborative
relationships between Mitchell's and foreign suppliers.
The Government doesn’t provide any support to import these raw materials and
any relaxation in import duty upon the imported raw materials. So if Government
bring any change in its foreign policy, then it will be very much important to cope
with that.
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TAXATION POLICY
The Mitchell's fruit farms is a public limited company. The company is paying all
sorts of taxes that are due to the Mitchell's. As the honesty is the dominant value
of the company, all the payments to government are made fairly and honestly.
ECONOMIC FACTORS
Among the many of economic factors some are more important for Mitchell’s; the
detail of these factors is in following:
INTEREST RATES
Interest rates increase and decrease has significant impact upon the financial
performance of the Mitchell's, because the company has take loans from the banks.
It is also noticeable that the company takes the long term loans from the banks on
the regular basis. So, if in the future the interest rates increase, it will be
unfavorable for the Mitchell's. But such increase is not expected in near future.
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INFLATION
In the short run, the effects of inflation are minimal on the performance of the
Mitchell's. But if we take it in longer perspective the inflation in the country will
increase the cost of production, which will increase the sale price. And at high
sale price the product will become in-competitive in the international market as the
company is involved in the export. So the pan of export will be adversely affected
by the inflation.
DISPOSABLE INCOME
Within the country the demand will be affected if the disposable income will be
reduced. There are lot many substitutes of the groceries products of the company.
But other than its direct use, these are also used in bakery and confectionery items
and so many other foods whose demand is dependent on disposable. So any
decrease in disposable income of the consumers will also be affecting Mitchell's
fruit farms negatively.
SOCIO-CULTURAL FACTORS
Socio cultural factors like demographics; income distribution, life style etc. can
also affect the company in different ways. Let’s see which of them are more
concerned to Mitchell's fruit farms limited.
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is because more consumption of fast foods will increase the demand of Mitchell's
products.
LEVEL OF EDUCATION
Level of education is directly related with awareness and health consciousness. In
countries where education rate is high the people more like the nutritious products.
In Pakistan, as well as in foreign markets the rate of literary is increasing which
will effect the organization positively. High level of literacy will lead to high
level of nutritious products consumption and people started switch towards the
products that are more favorable for their health and fitness.
TECHNOLOGICAL FACTORS
Technology in food industry is very important for the maximum output, product
standardization and hygienic process of production. The technological factors,
which are more concerned with Mitchell’s, are as under:
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STRUCTURAL ANALYSIS
The PEST analysis concerned with broad aspects of the environment while there is
always a set of external influences, which are more immediate, and directly
affecting the organization. The structural analysis draws on Five Forces approach
prepared by Porter. It is a structured mean of assessing the competitive
environment.
SUPPLIERS’ POWER
All organizations have to obtain resources and provide goods or services. The
suppliers can affects on strategic freedom of an organization and can influence the
margins of that organization. In Mitchell's fruit farms; there are two types of
suppliers. One is a local supplier, and others are foreign suppliers. We can
evaluate the power of suppliers with the help of following important points that
cannot be ignored:
a) As well as the foreign suppliers are concerned they have power of bargain
because the material is not available locally and the buyer don’t have any
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option other than import, so the supplier charge the high prices and transaction
is done through banks by opening letter of credit and buyer also has to bear
high transportation cost and import duties.
b) As well as the local suppliers are concerned they have small fruit farms. Food
companies are highly capital intensive so they don’t have any power because
they can’t do forward integration.
c) There are large numbers of fruit, vegetables, sugar and other raw material
suppliers so the buyer checks the quality of suppliers’ products and make
contract with any one which meet their requirements regarding quality as well
as price.
d) Another reason of no influence of the suppliers over the Mitchell's is that the
company itself producing large amount of fruit, vegetables, milk and butter.
The in this way, backward integration reduces the power and influence of
suppliers of the raw material.
e) Mitchell's has very good repute in the market since from the 1933. another fact
is that Mitchell's is the market giant in its industry, so every supplier want to
work with the Mitchell's.
BUYERS’ POWER
The buyers don’t have any power, because the prices of the products are fix, but
high competition among food companies leads the company to face problems in
the price competitiveness.
COMPETITIVE RIVALRY
Organizations will also be concerned with the extent of rivalry between
themselves and competitors. The extent of competitive rivalry depends upon the
nature of four forces described earlier. It could be concluded from previous
discussion that the food market is highly competitive. And the degree of
competition in the industry is increasing day by day.
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PRIMARY ACTIVITIES
The primary activities of the organization are grouped into five main areas:
inbound logistics, operations, outbound logistics, marketing and sales & services.
INBOUND LOGISTICS
Fruit, vegetables, sugar, packing material and other raw material items like
chemicals, salts milk and butter perform the inbound activity in Mitchell's. This
activity should be efficient in order to increase recovery rate by obtaining good
quality raw material. So in order to ensure the high quality of raw material,
following measures are taken by the Mitchell's.
1. The company has its own orchards, animal farms for the acquisition of high
quality fruit, vegetables, milk and butter.
2. There is a well-equipped lab for testing the quality of raw material, packing
materials and other chemicals that are used in the production process.
Before storing the raw material, the approval of quality control department
is essential.
3. In case of 30% of damaged fruit and vegetables, the quality control
department of Mitchell's disapproved the material and the commercial
department refused to accept the raw material.
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OPERATIONS
The operations are the production process of groceries where the major value
addition is made. For ensuring the production process of the products according to
the international quality standards, the Mitchell's take the following steps.
1. All the production process from transferring the juices and raw material to
production hall from juice stores to the packing of the products is
completely automatic. The Mitchell's invest huge amounts of profits for
serving this purpose every year.
2. The Mitchell's was the first company who achieve such high level of
automation in its relevant industry. The company is serving the industry as
the trend setter.
3. During the production process, the well trained lab technicians inspect the
production process and its quality before the packaging of the final
products.
4. Even after the packaging, the few items of the lot bring into the quality
control department for further inspection of quality in the labs of the
department.
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5. few items are preserved even after the approval of its quality, to check its
shelf life and use as reference in case of any complaint from distributors or
customers.
6. After ensuring all sorts of considerations, a written permission is given to
stores & planning department from quality control department to float the
products in the market.
OUTBOUND LOGISTICS
The management subcontracts the outbound activity, and the distribution is
through dealers. The products of the Mitchell's directly supply to the distributors
of the company. But the supply of production is also take place by the regional
sales offices of the Mitchell's. They also serve as the warehouse of the company.
SERVICES
The nature of the products not requires any significant level of services for the
customers. However, there is a formal system for taking corrective actions upon
the complaints of the customers. Proper feedback is given to the customers who
have any complaint regarding the quality of the Mitchell's products.
SUPPORT ACTIVITIES
The support activities can be divided into four groups, which are procurement,
technology development, human resource management and infrastructure.
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PROCUREMENT
As the prime inputs of fruit, vegetables, sugar are available locally and some
material has to import from abroad. So procurement for long time is not possible
in case of raw material, which is locally available. Where as the material that has
to be import the company has a lead-time of 2-3 months. So the planning and
stores department is sufficiently performing the activity of procurement with the
collaboration of commercial department.
TECHNOLOGY DEVELOPMENT
R&D and Process development researches are very important in food groceries
industry in Pakistan. So in the company value chain, this thing should be
emphasized much, rather it has a big contribution in total value addition. The
Mitchell's working on the technology development on continuous basis. The most
advance and automation of the plant and machinery is the top priority of the
Mitchell's fruit farms limited.
INFRASTRUCTURE
The company has a strong distribution system in the Pakistan. The Mitchell's has
more than 270 distributors in the country for ensuring the product availability and
supportive promotion activities. Apart from the strong distribution system, the
entire necessary infrastructure is available to the Mitchell's. Mitchell's is the only
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one food processing company in the Pakistan who has all the production facilities
at single location. This include from orchards to the warehouses of the finished
products.
ANALYSIS
All the value creation does not happen in the organization itself rather much of it
can be occur in the supply and distribution chains. So the whole process needs to
be analyzed. For this purpose we can divide it into three areas: suppliers,
organization and channel members.
SUPPLIERS
Suppliers play a very vital role in total value creation. The whole of the
profitability depends upon the quality of raw material; if supplier does not provide
the good quality of raw material, then the desired level of quality of products
cannot be achieved. The price structure of the country de-motivates the grower to
produce better quality of fruit, vegetables, sugar cane and other raw material
items. But good relationship with the suppliers, fair and prompt payment can
enforce the grower to cultivate better variety. It is exercising by the Mitchell's
already.
ORGANIZATION
Within the organization the value addition activity is focused on groceries
production, which is their core competence. In order to provide the superior
quality of groceries to customers, total quality management system is practicing by
the Mitchell's. Although in the production of the products, Mitchell's role is
spectacular in its industry. But when we talk about the market development and
marketing and promotional activities of the Mitchell’s, we will come to know that
this particular area is lacking behind the other market players. Without the
marketing support Mitchell's cannot achieve its goals and objectives successfully.
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CHANNEL MEMBERS
Mitchell's fruit farms limited has strong footing in the market because of its
quality products and good repute. The company is full aware about this strong
point, and the people of Mitchell’s are getting benefits from this strength. The
customers of the Mitchell's are loyal with the company and make purchase of such
products that are labeled Mitchell's. There is strong distribution channel in the
country that is the strength of the company. The company also directly deals with
the large customers like PIA, KFC, PIZZA HUT, MCDONALD’S, HOLIDAY
INN, and many other prestigious institutions of the country. Apart from these
institutions, Mitchell's deals with the large retailers itself like PACE, HKB stores,
UTILITY STORES, CANTEEN DEPARTMENTAL STORES, SHEZAN
BAKERS and so on. So in this way we can say that company targeting its
customers not only by the distributors but also go directly to retailers and other
institutions for creating value for the business operations of the Mitchell's.
DISTRIBUTION NETWORK
Factory
Distributors
Retailers
Final Consumers
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SWOT ANALYSIS
STRENGTHS
1. Mitchell’s fruit farms limited is the oldest food processing company of
Pakistan. The company was incorporated in 1933. This is a distinctive
feature of the company because all other food-processing companies start
their operations at least after the independence of Pakistan.
2. In 1998, Mitchell’s achieve another destination: ISO 9001 certification, and
at no better time than the successful completion of sixty-five years of
bringing quality products to the consumers. It is a matter of human pride
that the Mitchell’s has become the first food company in Pakistan to
achieve this prestigious distinction.
3. Today, in Pakistan, Mitchell’s is the only major company 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 ensure that Mitchell’s maintained its
lead.
4. In 1983, Mitchell’s golden jubilee was celebrated with great funfair. A
chocolate bar, appropriately named jubilee, was launched to commemorate
the event. Mitchell’s is the pioneer in Pakistan for chocolate production.
5. Molded chocolate (praline) is very popular in all over the world but till
2001 no national company was producing molded chocolate in the country.
So Mitchell’s launched molded chocolate with the successful
commissioning of a molded line in 2001.
6. The process of toffee making was automated in 2000 with PLC-based
machines/systems, to ensure uniform quality of products. Mitchell’s is the
first national company that takes this step. Thus, the modernization of
operation has always been top priority with Mitchell’s.
7. Mitchell’s is the single national company that has so large product mix.
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WEAKNESSES
1. The management style that has adopted by the company is bureaucratic.
Degree of formalization and centralization is high.
2. The promotion mix of the company and advertisement programs is not
very good. It is justifiable to say that company is not so much serious in
promoting its brands. The company only enjoying the good repute of
the brand name Mitchell’s.
3. There is lack of short term and long-term decision-making regarding
production schedules, purchasing decisions and marketing programs.
4. As we know that there is severe competition in the food industry, but
still the availability of Mitchell’s products is very poor.
5. Company is offering fewer discounts as compare to other relevant
industry’s companies like Shezan, National, Rafhan, Salman’s and
Ahmed to retailers and distributors.
OPPORTUNITIES
1. Increasing proportion of working women, school going children and office
going men increase the size of target market of the food industry. These
factors cause growing demand of jams, jellies, marmalades, sugar free
products and caned vegetables and juices open a wide window of
opportunities for MITCHELL’S Fruit Farms Limited.
2. As the rural populations of the country tend to migrate to cities for multiple
purposes, for this trend enhanced the market size for the food processing
companies. It is also an opportunity for the MITCHELL’S Fruit Farms
Limited to avail this opportunity and get benefits from this growing market.
3. Now people are much conscious about their health and fitness as before the
past. They have tendency to use the foods that are nutritious and best for
their health. So this market trend is also creating new horizons for the food
processing companies.
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4. It is fact that the market size of fast foods and snacks remarkably. As the
many products are the complimentary for these kinds of fast food and
snacks item. This thing is growing the demand of tomato ketchup, sauces
and preserves.
5. There is an opportunity for the company to increase the depths of its
existing products categories. For example, company may introduce the
squashes, sauces and tomato ketchup in more packaging like in buckets as
this strategy has adopted by other competitors of the company. The
company may introduce the pet bottle of 1.50 ml like Jam-E-Sheren and
Rooh Afza. It will expand the target market of MITCHELL’S Fruit Farms
Limited.
6. Other very open opportunity for the company is that the company may
invest in new product categories like mineral water, cheese, snakes and
other dairy products.
THREATS
1. The competition in the food processing industry is much severe than the
past. Now the many national companies are joining hands with multi-
national corporations for additional support in terms of marketing activities,
production expertise and financial resources.
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FINANCIAL ANALYSIS
ANALYZING LIQUIDITY
The liquidity of a business firm is measured by its ability to satisfy its short-term
obligations as they came due. Liquidity refers to the solvency of the firm’s overall
financial position__ the ease with which it can pay its bills. The three basic
measures of liquidity are (1) net working capital, (2) the current ratio, and (3)
quick ratio.
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CURRE NT RAT I O
A current ratio of 2.0 is occasionally cited as acceptable, but a value’s
acceptability depends on the industry in which the firm operates. A current ratio of
1.0 would be considered acceptable for a utility but might be unacceptable for a
manufacturing firm. The more predictable a firm’s cash flows, the lower the
acceptable current ratio. Mitchell's current ratio is 1.69 that is quite acceptable.
QUICK RATIO
The quick ratio is similar to the current ratio except that it excludes inventory,
which is generally the least liquid current asset. Quick ratio is an extended version
of current ratio in which only very quick assets (which can be quickly liquidated)
are considered. A rule of thumb is that figure of 1.00 or more is good and indicates
a good financial position of the company. The Mitchell's has its quick ratio is 0.54.
ANALYZING ACTIVITY
Activity ratios are used to measure the speed with which various accounts are
converted into sales or cash. With regard to current accounts, measures of liquidity
are generally inadequate. The three basic measures of activity are (1) Inventory
turnover, (2) fixed assets turnover, and (3) total asset turnover.
INVENTORY TURNOVER
Inventory turnover commonly measure the activity, or liquidity, of a firm’s
inventory. An inventory turnover of 20.0 would not be unusual for a grocery store,
whereas a common inventory turnover for a manufacturer would be 4.0. Mitchell's
inventory turnover is 5.46, this figure is excellent for a manufacturer firms.
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STRATEGIC MANAGEMENT MITCHELL’S FRUIT FARMS LTD.
utilization. Mitchell's fixed assets turnover is 6.60; this means the company turns
over its net fixed assets 6.60 times a year.
ANALYZING DEBT
The debt position of a firm indicates the amount of other people’s money being
used in attempting to generate profits. In general, the financial analyst is most
concerned with long-term benefits, because these commit the firm to paying
interest over the long rum as well as eventually repaying the principally borrowed.
Because the creditors claims must be satisfied before, the distribution of earnings
to share holders. The two basic measures of debt are (1) Debt ratio, and (2) debt-
equity ratio
DE B T RAT I O
The debt ratio measures the proportion of total assets financed by the firm’s
creditors. The higher this ratio, the greater the amount of other people’s money
being used in an attempt to generate profits. Mitchell’s debt ratio is 0.39.
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STRATEGIC MANAGEMENT MITCHELL’S FRUIT FARMS LTD.
ANALYZING PROFITABILITY
There are many measures of profitability. Each related the return of the firm to its
sales, assets, equity, or share value. As a group, these measures allow the analyst
to evaluate the firm’s earnings with respect to a given level of sales a certain level
of assets, the owners’ investment, or share value. With out profit, a firm could not
attract outside capital. The three basic measures of profitability are (1) gross profit
margin, (2) operating profit margin, (3) net profit margin, (4) return on investment,
(5) return on equity, and (6) earning per share.
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RETURN ON INVESTMENT
Return on investment (ROI) measures the overall effectiveness of management in
generating profits with its available assets. The higher the firm’s return on
investment, the better. Mitchell's ROI is10.6% that is good in the industry.
RETURN ON EQUITY
The return on equity (ROE) measures the return earned on the owners’ (both
preferred and common stockholders’) investment in the firm. Generally, the higher
this return, the better off is the owner. Mitchell's ROE is 17%.
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EXISTING STRATEGIES
CORPORATE LEVEL STRATEGIES
Corporate level strategy focuses on strategies for corporation consisting of more
than one business. Mitchell's fruit farms limited, for instance, comprise several
businesses, including groceries, confectioneries and chocolates business.
Mitchell’s involve more than one business is said to be diversified.
FOREIGN LICENSEES
In recognition of its dedication to quality and technical expertise, Mitchell’s 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 Rose’s brand
of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.
CONCENTRIC DIVERSIFICATION
“Adding new, but related products or services”.
Mitchell’s 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. Further more 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 firm’s suppliers”.
Mitchell's fruit farms limited is 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.
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DIFFERENTIATION
If we closely look at the operations of Mitchell's fruit farms limited, we will come
to know that the corporation is practicing the differentiation strategy. Mitchell's
has more than fifteen product lines and a large product mix of more than 90
products. The product mix of Mitchell's is the largest one in its respective industry.
This fact reveals that Mitchell's is exercising the strategy of product mix
differentiation. Mitchell's is charging 7 to 8 percent higher prices of their
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CUSTOMER FOCUS
Apart from product differentiation Mitchell's is also implementing customer focus
strategy. The continuous process of research and development, product
differentiation, marketing research and technological innovation make this
possible for Mitchell’s to introduce more than four products in a year. This is a
clearer indicator of customer focus that is being implemented by the corporation.
The Mitchell's customer is loyal to the company and he wants to purchase the
brand MITCHELL'S. So it is necessary for the company to introduce not only
innovative products but also gives quick response to its customers.
PRODUCT DEVELOPMENT
“Seeking increased sales by improving or modifying present products or services”.
The company is focusing on product development not on market development. It
may be considered as strength or weakness. Strength in this way that company is
giving full priority to satisfy the wants of existing customers. But it might also be
termed as weakness of the company because it is keeping the large market
remained untouched.
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We can say that the food processing industry of Pakistan is one of the most rapidly
growing industry of Pakistan. Many new markets players have entered to acquire
their share in the market. Although the economic conditions of the country are
poorer but the quality of life is towards improvement. This improvement also
leaves favorable impact on the tastes of people. Once there was a time when only
Mitchell's was running its business in the Pakistan in its relevant industry. Now
Mitchell's is facing competition from many national and multinational food
companies in the country. Many national companies are joining hands with
multinationals for strong footing, financial support and other required professional
expertise. Mitchell’s now is facing many problems in today’s world of business.
So for avoiding swerve consequences we recommend following strategies to
Mitchell's.
FORWARD INTEGRATION
“Gaining ownership or increased control over distributors or retailers”.
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company’s products effectively. The increase in trade promotion will also enhance
the control of company over its distributors and retailers.
CUSTOMER FOCUS
The company is not offering its products in the various packages. For example the
competitors of Mitchell's like Shezan, Rafhan, Qurshi, Humdard and Galaxy are
offering their products like preserves, ketchups and sauces in buckets but this area
is ignoring by the Mitchell's. It will be good for the company to offer its products
in more different weightings. It will not only increase the sales of the company but
also helpful for market development.
• It is suggested that company should introduce more flavors of squashes like
plum and peach.
• The squashes and syrups must also be introduced in 1.5 litre and 500 ml
packages like Rooh Afza and Jame Shereen.
• It is also recommended by us to Mitchell's that to be competitive in the
market, the company should also preserves like jams, jellies, marmalades
and ketchups, sauces in more economy packs for the customers.
MARKET DEVELOPMENT
“Introducing present products or services into new geographic areas”.
At this time, the Mitchell's fruit farms limited is utilizing its 70 % of total capacity.
So there is need to market development. More markets will help company to
utilize its full capacity but also increase the profitability and competitiveness of
company.
Mitchell's can explore new markets not only in the country but also in the abroad.
ü 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.
ü Still there are many cities in the country, where the product availability
of the Mitchell's is very much poor, even in big cities there are many
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areas in which the company distributors have not access. The company
should ensure and improve its products’ availability.
RELATED DIVERSIFICATIN
Mitchell's can diversify its businesses in other 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.
ü We recommend that Mitchell's must go for the business of butter, cheese,
mineral water and snacks etc. this will be related diversification for the
company.
ADVERTISEMENT
From last few months, the Mitchell's is not advertising its products on the
electronic media. It is affecting the sales of the company very severely. The main
area of focus is trade promotion that is not enough in tough market conditions and
competition.
ü More consumer and trade promotion
ü Advertisement on T.V for hammering the minds of Mitchell's consumers.
ü More outdoor advertisement like its main competitors. Significant increase
in the number of sign boards, MMT boards and banners on the public
places will increase the product awareness and interest of the customers.
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RECRUITMENT CRITERIA
Recruitment practice is done after particular period of time in the
MITCHELL’S 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.
PROMOTIONS
The 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.
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LEARNING ORGANIZATION
Mitchell's is a learning organization. The company tries to utilize the
capabilities, skills and knowledge of its people at maximum. For this purpose,
employees work in the form of teams for the completion of various projects.
Top management encourages risk-taking among the employees. In return, there
is an attitude of tolerance on mistakes in the Mitchell's management.
INNOVATION
The mission of the Mitchell's is to provide the innovative products to the
markets where the company serves. So innovation in product mix has much
importance in the company. It is required by the top management to introduce
three or four new products every year. For this purpose, R&D work continues
throughout the year. Ideas are collected from the Mitchell's people, then after
initial screening, these ideas are referred to product design panel, who work on
these ideas for producing final products.
TECHNOLOGICAL ADVANCEMENT
The company positions itself at top and consider best in the technology. For
remain best in technology, the company following the strategy that Mitchell's
will invest 15% of its profits on the advancement of technology. This amount
is more than Rs. 200 million every year. This advancement is done for
achieving more product standardization, maximum output and hygienic
process of production.
IMPLIMENTATION OF TQM
Mitchell's was the first company in the respective industry that get ISO 9001
certification in 1998. Mitchell's is the trend setter in its industry. Mitchell's
believes on quality. The company implements the quality notion from product
design to provide the products in the hand of ultimate consumers. During all
the processes quality is managed as the top priority. Mitchell's makes its image
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as the quality managed company. All the measures regarding TQM that are
possible in the present environment of the country are possible has been taken
by the Mitchell’s.
BE HONEST
The most important value that is promoted within the company is honesty. It is
required from the employees of the Mitchell's that they not only deal with their
colleagues with honesty but also deal with suppliers and customers of the
company honestly. One classic example of the Mitchell's commitment to
honesty is their products. According to the rules of the government, there
should be atleast 35% pulp in jams, jellies, marmalades, ketchups and sauces.
But the food companies not careful about this restriction except Mitchell’s.
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communicated among the employees to all over the company. Apart from
these facts, the past performance of the company is also demonstrated with
the help of various instruments at many times in the Mitchell's.
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prestigious in the country and have strong sense of belongingness with the
Mitchell's.
1. Planning
2. Organizing
3. Staffing
4. Leading
5. Controlling
Now we see the management style of Mitchell's on the basis of above mentioned
points.
P L ANNI NG
Goals are set with a few deal of participation.
Decision making is transferring to decentralization from centralization.
ORGANIZING
Authority is shared.
Authority is broadly defined in the Mitchell's.
STAFFING
People are selected on the basis of performance criteria. But sometimes, internal
references are also used for recruitment.
Training is in few functional areas.
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L E ADI NG
Managers practice participative leadership, but not much extent.
Communication flow is top-down and bottom-up.
CONTROLLING
Individuals exercise some deal of self-control in the Mitchell's.
Focus on multiple criteria.
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