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2011

2011

Final Project of
Management
Mitchells Fruit Farm LTD.
Group Members: Hamza L1F10BBAM0326 & OMER FAROOQ
Company Information
Board of Directors
S. M. Mohsin Advisor
Mehdi Mohsin Chairman
Mujeeb Rashid Chief Executive Officer &

Managing Director

Moaz Mohiuddin
Syed Faisal Imam
Umme Kulsum Imam
Jamal Nasim NIT Niminee

Audit Committee

S. M. Mohsin Chairman
Syed Faisal Imam Member
Moaz Mohiuddin Member

Company Secretary/CFO

Atif Fayyaz

Auditors

A. F. Ferguson & Company


Chartered Accountants

Legal Advisor
Minto & Mirza

78-Mozang Road, Lahore

Phone: (042) 36361531

Bankers

Habib Bank Limited


Allied Bank Limited
Askari Commercial Bank Limited
Muslim Commercial Bank(MCB) Limited
Barclays Bank plc
The Royal Bank of Scotland
National Bank of Pakistan

Share Registrar

Corplink (Private) Limited,

Wings Arcade, 1-k (Commercial)

Model Town, Lahore

Phone: (042) 35839182, 35887262,

Fax: (042) 35869037

Corporate Office
39-A, D-1, Gulberg ||| Lahore

Phones: (042) 35872392,

Fax: (042) 35872398

E-Mail: ho@mitchells.com.pk

Website: www.mitchells.com.pk

Factory, Regional Sales Office (Central) &Farms

Renala Khurd, District Okara, Pakistan

Phones: (044) 2635907-8, 2622908

Fax: (044) 2621416

E-Mail: rnk@mitchells.com.pk,

rsoc@mitchells.com.pk

Regional Sales Office (North)

Plot No. 110, Street No. 10, l 9/2, Industrial Area,

Islamabad

Phones: 051-4438324-26

Fax: (051) 4443827


E-Mail: rson@mitchells.com.pk

Regional Sales Office (South)

Mehran VIP il, Ground Floor,

Plot 18/3 Dr. Dawood Pota Road, Karachi

Phones: (021) 35212112, 35212712 & 35219675

Fax: (021) 35673588

E-Mail: rsos@mitchells.com.pk

Introduction of Mitchell's Fruit Farms


Mitchells is playing a vital role in the Pakistans economy. For the last two years,
the company is receiving The Top 25 Companies Award. 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, Sauces and Countlines.

Many Multi-National and National Companies have entered the competition.


Therefore, the quantity-wise difference between the Mitchells and its close
competitor has squeezed.

Mitchells growing and processing facilities are situated in Renala Khurd, Distt.
Okara. The head office of the company is situated in Lahore for ensuring the
effective distribution and marketing.

DEPARTMENTS OF MITCHELLS FRUIT FARMS LIMITED

Human Resource Department


Commercial Department
System Department
Finance Department
Production Department
Planning and Stores Department
Technical Services Department
Quality Control Department
Marketing Department
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 Mitchells 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 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 MITCHELLS 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:

Updating of employee skills by training.


Acquisition of new technology.
Re-evaluation of its quality control and quality assurance systems.
GOALS OF Mitchell's FRUIT FARMS LIMITED

1. To provide such human resources that will helpful for run the operations of
the company in effective and efficient manner, and look after the benefits
and interests of personnel of the company so that they can become more
productive for the company.

2. Objective of the System Department of the company is to computerize the


business operations of the MITCHELLS Fruit Farms Limited.

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 companys accounts.

4. The objective of the Production Department is to produce quality goods at


minimum cost by utilizing the companys resources in an efficient manner.
5. To ensure hygiene, and arrangements of all materials in stores and
successful execution of orders.
6. To ensure that all the products, make by MITCHELLS Fruit Farms Limited
are of standard quality by inspection and testing of incoming material, in-
process and outgoing products.

7. The Marketing Department is responsible for planning and developing


products and executing their sales at an affordable price through promotional
activities.
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 Mitchells is as under:

POLITICAL AND LEGAL FACTORS

Industrial Laws

Industrial laws regarding unions have no impact upon the Mitchells because there
is already an independent labor union and officers association in the organization.
The company considers these laws in their decision making concerning wage rates,
bonuses, and benefits of the employees.

Foreign Trade

This factor is very much important for the Mitchell's fruit farms limited. It is
because the Mitchells 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 doesnt 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.

Environmental Protection Laws

Although the laws regarding environment are not very sophisticated in Pakistan but
even if they become so, they will not be hampering for Mitchell's fruit farms
limited, because in Mitchell's, there is very sophisticated system for the drainage of
the wastes. In the wastes, there is not any such item that may be harmful for the
environment.

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.

Employment and Government Stability

Employment is not a matter of high concern for the organization because it is


already following all the labor laws. But recently the Government increases the
wages of the employees but Mitchell's has not affected by that, because the
minimum wage limit in Mitchell's is Rs. 3000 that is high from the minimum wage
limit of the government of Pakistan..
Economic Factors

Among the many of economic factors some are more important for Mitchells; 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.

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. Lets see which of them are more
concerned to Mitchell's fruit farms limited.

Life Style Changes

The consumption of jams, jellies, marmalades, squashes, sauces, pickles and


squashes is very much related with the life styles of people. Now people, all
around the world, are becoming more and more health conscious. They are well
aware that a high consumption of heavy foods will increase the cholesterol, which
leads to heart disease. That is why, a significant change in the consumption of
foods is being observed in last many months. As the growth rate of fast food
industry is spectacular in the country. That is most favorable for the Mitchell's. it 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 Mitchells, are as under:

Government Spending on Research

Usually in order to support some industry and improve economy, government


allocates some fund to R & D. Unfortunately our government doesnt have any
money for R & D. Due to this non-serious behavior of government this sector
along with others, is suffering very much. There is more need of R&D work in
this industry in Pakistan than any other industry. It is because of the sensitivity and
importance of this industry in our lives. It is a fact that our food industry is very
poor in the field of technological advancement. Mitchell's is well aware of this fact,
the company has the best and most advance technology in the respective industry.
Mitchells continuously upgrading it on annual basis. The 15% of total net profit
invest on the automation of the technology every year.

New Discoveries and Developments

It has already mentioned that Mitchell's has the best technology for the operations
of the business. Mitchell's is competing the market with its qualitative and
innovative products. All these are possible as the result of intense R&D, new
product developments and new recipes for the fulfilling the changing needs and
wants of the market.

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.

Threat of New Entrance

Threat of entry depends upon the extent to which there are barriers to entry. A food
company requires a big manufacturing unit which requires a huge capital
investment; like Mitchells has more than 800 crore paid up capital. So we can say
that groceries-manufacturing unit is highly capital intensive and because of high
capital investment it has high risk for new to enter into production.

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 dont have any 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 dont have any power because
they cant 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 dont 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.

VALUE CHAIN ANALYSIS

Value chain analysis is widely used to determine where cost improvements could
be made or value creation improved. This process involves the analysis of all the
activities starting from the raw material provisions to the distribution of final
product. That is why it is necessary to understand the complete procedure of
production and distribution.

ORGANIZATION VALUE CHAIN

All these activities are broadly categorized into two main heads, which are Primary
activities and Support activities.

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.
4. There is an approved list of suppliers from the quality control department.
The commercial department is bound to procure the raw material from only
the listed suppliers of the company. This list is made after assessing and
evaluation of many factors of the suppliers like their market repute, capacity
of production, quality of raw material and their past performance in the
market.
5. Frequent visits are also made to the production facilities of the suppliers by
the executives of commercial and quality control department for the
inspection of the quality and other related considerations.
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.
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.

Marketing & sales

As far as marketing and sales is concern, there is an export and marketing


department, who control and monitors the activities of regional sales offices of the
company that are situated in Lahore, Islamabad and Karachi. These regional sales
offices are responsible for effective distribution of the products of the company.
The marketing department is responsible for the marketing and promotion of new
and existing products 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.
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.

Human resources management

Human resource management involves the training and development of workers


and employees in order to increase their productivity and efficiency. For this
purpose company make their employees to work with the senior worker to get the
experience, apart from this on-the job training, they have separate training program
for new employees. The company has good planning, quality control systems and
future orientation, which although does contribute directly in value addition and
increase the effectiveness of whole process.
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
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 Mitchells, 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.

Channel Members

Mitchell's fruit farms limited have 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 Mitchells 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, MCDONALDS, HOLIDAY
INN, and many other prestigious institutions of the country. Apart from these
institutions, Mitchell's deals with the large retailers itself like PACE, H. Karim
Buksh 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

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.
Mitchells involve more than one business is said to be diversified.

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. 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 firms 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.

Following fruits requirements are being fulfilled by Mitchells own agriculture


land.

Lemon 100%

Grape Fruit 100%

Sevlik Orange 100%

Tomato 30%

Garlic 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.

BUSINESS LEVEL STRATEGY

Firms compete directly with one another at what is called the business level of
strategic management, so we will focus on crafting successful competitive
strategies. Because competition takes place at the business level, strategic
management at this level is crucial to the overall success of the corporation.

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 products
as compare to their competitors. Because they consider their products superior as
compare to remaining ones.

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 Mitchells 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.

OPERATION LEVEL STRATEGY

Operation level strategy focuses at how to develop capabilities in process


execution that will yield competitive advantages for a firm. This involves applying
strategic management concepts to what is known as the operations level, the level
at which work inside the organization actually takes place. We focus on how
organizations go about improving their process capabilities, including both total
quality management and core process reengineering.

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.
RECOMMENDED STATERGIES AND IMPLIMENTATION

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. Mitchells now is facing many problems in todays 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.

In forward integration we not suggest to Mitchell's to gain ownership of


distribution system but it is need of the hour to increase control over distributors as
well as retailers. The major de-motivator for retailer and distributor is fewer profit
margins to them. Mitchell's is the company that is offering minimum profit margin
to its distributors and retailers. It converts the interests and priorities of
distribution channel member to other market players. When the prices of products
are high comparatively to competitors it will be necessary for the producer to give
attractive margin to distributors and sellers and retailers so that they promote
companys 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.

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.

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 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.

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.
More consumer and trade promotion

Advertisement on T.V for hammering the minds of Mitchell's consumers.

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.
MITCHELL'S CORPOPRATE LANGUAGE

All the documentation and written communication of Mitchell's is in English


language. However, verbal communication may be in Urdu, particularly the
executives of the company speak Urdu or Punjabi with the workers as per workers
convenience. But it is the restriction of the company to deal external people in the
Urdu and in case of foreign people; mode of communication should be English.
The management executives are trained by the Mitchell's to negotiate with
foreigners in the English language.

IN-HOUSE SLOGANS OF MITCHELL'S

There are three in-house slogans that are permanent in nature. Apart from these
slogans, one slogan is called the slogan of the month.

Three permanent slogans are as following:

1. love with customer love with company


2. Customer happy, company prospers.
3. Customers help us grow.
THE SLOGAN FOR THE TARGET MARKET

The slogan for the target market of the Mitchell's is as under:

Giving the New Generations a Fresh Start...

From Our Orchards to Your Table


CORPORATE VALUES OF MITCHELLS

EMPLOYEES AS COMPANYS ASSET

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.

The company in different hotels for updating also holds the seminars on different
topics the professionalism of the executives. Apart from these seminars, the
executives also take part in the different course that are offered in all over the
country on various informative topics like information technology, quality control
systems and new production methods and techniques.

RECRUITMENT CRITERIA

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.
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.

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 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 Mitchells.

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 Mitchells.
BENEFITS & SERVICES

Salaries and incentive packages of the company is very attractive. All head of
departments are given automobiles and mobile phones by the company at its
expenses. The salary package of the head of departments is also not less than sixty
thousand. The executives of the company have the medical facilities and
accommodation facilities .The salaries of clerical staff are also not merely less than
six thousand. The entire management and staff member have the T.A and D.A
facility. All the staff members and workers are also awarded with the overtime
benefits. The minimum wage rate is Rs. 3000 in Mitchells. The workers and
executives enjoy at least two bonuses in a year. The number of bonuses depends on
the companys profit at the end of its financial year on the end of September. For
many times, employees are awarded five or even six bonuses in a year. Gratuity
and pension is also awarded to the retired employees.

IMPRESSIONS ABOUT MITCHELL'S CULTURE

1. The people at Mitchell's are quite satisfied in the company. They considered
their job challenging and attractive for their self.
2. The company is promoting the values like punctuality, hardworking,
participation and honesty. All these values have strong support from the top
management of Mitchell's. Even the top executives like chairman, managing
director and executive director of Mitchell's come in office in time even
before time, they follow the rules and regulations of the Mitchell's like there
is restriction on the employees of the company to attach their companys
identity card at the front of their dress. So this rule is for all even for the
owners and director of the Mitchell's.
3. It is the matter of immense pleasure for the employees to be the part of
Mitchells. They feel proud to be the part of oldest and best food company of
the country.
4. They are committed to their jobs and enjoying sound monetary and non-
monetary benefits from the Mitchell's. The turnover rate in the Mitchell's is
near about nil. This shows the employees loyalty that they have with
Mitchell's.
5. So, my viewpoint about the Mitchell's culture is that they have very different
culture that I observed in other national companies. They have strong culture
that provide supportive working environment to their employees, take care
of their participants and all the employees working in the relation-bond
culture.
6. All the employees have written duties and responsibilities. However,
sometimes for the sake of job rotation, they have to work on some additional
assignments but in the form of teams not on the individual level.
7. Authority has defined broadly in the Mitchell's. Mission statement, quality
policy, goals, objectives and short term planning is demonstrated and
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.
EMPLOYEES FORMAL IMPRESSIONS

1. According to employees, they are happy with the Mitchell's fruit farms and
they are enjoying collaborative relationships with the management of the
Mitchell's.
2. Their jobs are challenging to them and not feel any sort of job boredom.
3. There are good working environment in the Mitchell's and they are free to
participate in the matters of the company. The employees work without any
pressure and fear.
4. They have formal as well as informal relationships with their colleagues.
5. The behavior of management is friendly with the employees of the company.

EMPLOYEES GRAPEVINE IMPRESSIONS

1. The employees are unhappy about the strict control of the Mitchell's
management upon them. According to the employees of the company, with
the passage of time, they have to work harder and now there is more
accountability of the actions of the employees that was not in the past.
2. The employees also claim that the management of the company is exercising
the discrimination among the employees without any legitimate or
performance related reason.
3. Apart from these negative impressions, the employees have same informal
impressions as they have formal. The employees are happy and satisfy with
Mitchell's policies and managerial practices. They consider their company
prestigious in the country and have strong sense of belongingness with the
Mitchell's.

MANAGEMENT STYLE OF MITCHELL'S

One can elaborate the management style of any organization on the following
grounds.

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.

Planning

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.

Leading

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.