DEPARTMENT OF MANAGEMENT

Individual Assignment

CA 02
Subject Details
Subject Organization Theory
Subject Code MGT - 2303
Students Details
Student Name Student Number Signature
1 H. V. I. Shenal 7168 H. V. I. Shenal
2 P.K.M.K.Bandara 6991 P.K.M.K.Bandara
3 A.M.D.S.Alahakoon 7158 A.M.D.S.Alahakoon
4 M.N.S.Sandamali 7128 M.N.S.Sandamali
5 R.N.I.Pillai 6963 R.N.I.Pillai
6 S.H.S.N.Premarathna 6935 S.H.S.N.Premarathna
7 V.R.S.Perera 6962 V.R.S.Perera
8 W.M.C.G.Weerasekara 7190 W.M.C.G.Weerasekara
9 W.M.C.G.Weerasekara 7127 W.M.C.G.Weerasekara
10 W.A.T.Piyumali 7107 W.A.T.Piyumali
Word count
Due date / Time 15-Jul-2022 23.59.59
Individual Declaration
I certify that the content of the above assignment is one of our original works and not copied from
any of the published or internet-based documents. Without references We have not used any of
the other person’s original work or ideas. So, the report or the work We have done is free of
plagiarism.
Signature H. V. I. Shenal Date 15 - Jul - 2022
Table of Contents

Overview of The Company ........................................................................................................................ 1

Structure Of an Organization ................................................................................................................ 2
Sales of "Magic" ice cream began to plummet ........................................................................................ 5
Challenge .................................................................................................................................................. 5
Solution..................................................................................................................................................... 5
2019 April Easter Bomb blast .................................................................................................................... 5
Challenge ................................................................................................................................................. 5
Solution .................................................................................................................................................... 6
COVID – 19 pandemic situation impact to sales activities ...................................................................... 7
Challenges ................................................................................................................................................ 7
Solutions – ................................................................................................................................................ 7
COVID – 19 pandemic situation impact to employees ............................................................................ 8
Economic Crysis 2022 ................................................................................................................................. 9
References .................................................................................................................................................. 12
Contribution ............................................................................................................................................... 13

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Overview of The Company

Cargills (Ceylon) PLC is a Sri Lankan corporate Established in 1844 and build on a strong
foundation of values and ethics, guided by trusted leadership it spearheads the sustainable
development of food industry in Sri Lanka. Cargills ( Ceylon ) PLC is mainly engaged within the
producing of and mercantilism in food and beverage , and distribution . The Company's segments
embrace Retail , fast moving consumer goods ( FMCG ) and restaurant . It conjointly operates a
chain of stores under the brand names , Food city and Food city express . it's conjointly engaged
in producing and distributing frozen dessert and alternative farm product below the complete
names , Cargills Magic , Heavenly and Kotmale : fruit - based product under Kist brand ; processed
and fresh meat product below the brand names , Supremo , Finest , Goldi and Sams , and biscuits
below the name , Kist . The corporate conjointly operates a chain of KFC and TGIF restaurants
under franchise agreements . ( Cargills Ceylon ( Pvt ) Ltd , 2018 )

It conjointly distributes international brands , like Kodak , Kraft , Cadbury , Bonlac , Oreo , Tang
and Toblerone . Its subsidiaries embrace Cargills Agrifoods limited , Cargills Distributors ( Private
) limited, and Cargills Frozen product ( Private ) limited . Cargills moved into the production of
processed meats in 1983 , not only that in same year Cargills invested in its first manufacturing
faculty . (Cargills Ceylon (Pvt) Ltd, 2018) (Cargills Ceylon Pvt Ltd, 2018)

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Structure Of an Organization

➢ Board Of Directors

▪ L. R. Page

Chairman / Non-Executive Director

Mr. Louis r. page is a fellow member of the institute of chartered accountants of Sri Lanka
and a fellow member of the chartered institute of management accountants (UK). He is the
chairman of the CT holdings group of companies.

▪ V R Page
Deputy Chairman / CEO, Executive Director
Mr. V. Ranjit Page possesses over 35 years of management experience with expertise in food
retailing, food service, and manufacturing, having introduced the concept of super marketing
to the Sri Lankan masses.

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▪ M I Abdul Wahid
Managing Director/Deputy CEO, Executive Director
Mr. M. Imtiaz Abdul Wahid is an Associate Member of the Institute of Chartered
Accountants of Sri Lanka and a Fellow Member of the Chartered Institute of Management
Accountants (UK).

▪ A T Priya Edirisinghe
Independent Non-Executive Director
Mr. A. T. Priya Edirisinghe is a Fellow Member of the Institute of Chartered Accountants of
Sri Lanka, Fellow Member of the Chartered Institute of Management Accountants (UK) and
holds a Diploma in Commercial Arbitration.

▪ Sanjeev Gardiner
Independent Non-Executive Director
Mr. Sanjeev Gardiner who has been a Director of Cargills (Ceylon) PLC since 1994 is the
Chairman and Chief Executive Officer of the Gardiner Group of Companies which includes
the Galle Face Hotel Co Limited,

▪ Yudy Kanagasabai
Independent Non-Executive Director
Mr. Y. Kanagasabai (Yudhishtran Kanagasabai) was appointed a Director of the Company
and a member of the Audit Committee and Related Party Transactions Review Committee
on 25 February 2019.

▪ Joseph Page
Non-Executive Director
Mr. Joseph C. Page is the Deputy Chairman/Managing Director of C T Land Development
PLC. He is also a Director of C T Holdings PLC, Ceylon Theatres (Pvt.) Ltd. and C T
Properties Limited.

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▪ Errol Perera
Independent Non-Executive Director
Mr. Errol Perera has held Senior Management positions Overseas and in Sri Lanka. He was
instrumental in attracting direct foreign investment in several Projects with Board of
Investment approval including Venture Capital and Unit Trust ‘start-ups’.

▪ Asoka Pieris
Executive Director, Managing Director Retail
Mr. H. A. Pieris (Asoka Pieris) was appointed a Director of the Company on 25 February
2019. He was also appointed to the Board of subsidiary company Cargills Foods Company
(Private) Limited

▪ Indira Malwatte
Independent Non-Executive Director
Indira Malwatte was appointed a Director of the Company on 1 February 2020. She holds a
Combined Degree in Economics and Geography from the University of Peradeniya Sri Lanka
and was the first woman Chairperson of the EDB.

▪ Dilantha Jayawardhana
Executive Director
Dilantha Jayawardhana was appointed to the Board of Directors on 1 July 2021, as an
Executive Director. Previously, he served as the Group’s Chief Financial Officer. He holds
an MBA from the University of Lincoln, UK and is a Fellow Member of the Institute of
Chartered Accountants of Sri Lanka, as well as an Associate Member of the Certified
Management Accountants of Sri Lanka.

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Sales of "Magic" ice cream began to plummet

Challenge
Ice cream sales at the chain of supermarkets Cargills Food City began to fall dramatically seven
months ago. The "Magic" brand of ice cream is significant to Cargills for two reasons: it is
produced at Cargills' own factory and poses a risk to idle capacity, and market leadership must be
preserved. Cargills is also out to prove that size and operational efficiency are not mutually
exclusive. Cargills' greatest achievement in food processing to date is ice cream. The Keells Super
chain, which is owned by conglomerate John Keells Holdings, is its biggest retail competition, and
supermarket chain consolidation hasn't produced another formidable adversary. However, the
unexpected drop in ice cream sales, which reached 15% in some months starting last year,
perplexed Cargills management.

Solution
Staff at Food City, on the other hand, believed that the decline was brought on by management's
choice to store ice cream in upright freezers, which resemble refrigerators with glass fronts, rather
than flatbed freezers, which better displayed the brands on the lids of the packs as was the case in
the past. "Customers cannot see the goods or the branding when it is displayed in that way.
According to our employees, sales were substantially better on the flat bed, says Cargills Managing
Director Imtiaz Wahid. He emphasizes that "We are re-changing back to flatbed freezers," he says
underscoring the sort of challenge in retail that requires sharp observation and quick action.

2019 April Easter Bomb blast

Challenge
The aftershocks of Sri Lanka's deadly Easter Sunday suicide bombings are reverberating through
its economy. This explosion, which killed more than 250 people. They have destroyed Sri Lanka's
vital tourism industry, a source of employment for many, and are hindering foreign investment.
Subsequent security concerns kept people at home and limited economic activity. A Reuters poll

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in May showed the country's 2019 gross domestic product (GDP) growth could fall to an 18-year
low of 2.5% after the bombings. The attacks weighed heavily on tourism, foreign investment, and
business activities in the country [1].

Cargills (Ceylon) PLC, the island's leading food company with 411 Food City outlets across the
country Despite the daunting challenges presented by the Easter bomb at the start of the financial
year, . The year ended March 31, 2020, is termed as a commendable result. While the retail and
food manufacturing sectors had done well, restaurant performance had lagged during the period
under review although consumption was favorable. The sector had been severely affected by the
Easter Sunday [2].

Against the backdrop of a challenging domestic environment, the agriculture sector - which
employs more than a quarter of the country's labor force - recorded only 0.6% growth in 2019,
compared to 6.5% growth the previous year. The industry sector recorded marginal growth of
2.7%, while services sector growth halved to 2.3% due to a decline in tourism-related activities
[3].

Solution
▪ Taking steps to increase security at Cargill’s food city and KFC branches.
▪ Branches remain open as usual under curfew conditions.
▪ Maintaining continuity of service to customers under curfew conditions. They also
approached the suppliers and took the price of the product and distributed the product all
over the country.
▪ Protecting employees by providing opportunities to work at the nearest branch to those on
duty who have problems coming to the workplace under curfew conditions.
▪ Taking action to recover the fallen tourism industry and paying more attention to the
exported products.
▪ Making the necessary decisions to run the manufacturing factories continuously and giving
▪ special consideration to the factory workers.

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COVID – 19 pandemic situation impact to sales activities

Challenges –
▪ There was a risk of the business collapsing as customers could not come to buy the goods due
to the curfew.
▪ Due to the low income of the company, it was also a challenge to pay the employees
▪ Importing the materials and chemicals needed to manufacture the products became a big
challenge due to the disruption of the import and export process.
▪ Due to the current economic situation, Cargill's Food City and KFC have become loss-making.
▪ In particular, transportation activities have been disrupted
▪ Daily power outages were a big challenge
▪ Due to the increase in taxes, there is some difficulty in importing materials and raw materials
required for production work
▪ has become a big challenge to manage the necessary items etc. for the factories under the
production process under whose company Kist and Magic.
▪ Cargills does not charge any fees for online delivery.

Solutions –
▪ In the management of employees, Cargills Company assigned the working hours of all
employees between 7 am and 5 pm to
▪ All employees were given special authorization on their ID card to come to work
▪ The transport facilities provided to them have been provided in the morning in addition to the
evening.
▪ Since the employees working in KFC could not go to their workplaces, those employees were
also employed to work at the nearest Cargill’s food city or kfc branches
▪ During that time, a special permission had to be obtained for the necessary transportation
facilities. It was done in agreement with the Sri Lanka Police.
▪ Cargills has launched an app to sell products.

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▪ The company did not have much profit, but Cargill’s has arranged to give the basic salary of
all the employees while giving salary to the employees
▪ Cargills also provided a lot of help to the farmers who were inconvenienced due to covid and
protected them. He also managed to avoid the chances of losing his supplies.
▪ During power outages, generators are used to carry out business activities
▪ The company is interested in importing the raw materials required for the production process
under minimum tax percentage
▪ Whose company was able to win the challenge by even making documents with the approval
of the Petroleum Statutory Corporation while procuring the diesel required for the generators

COVID – 19 pandemic situation impact to employees

Covid 19 is a threatening period where the whole world has been affected at the same time. With
the rapid spread of the covid 19 virus in Sri Lanka, the country has to face many crises. As one
measure to suppress this, the government proposed to impose curfew for weeks. As a result of it,
many issues arose while the inability of employees to report for their dally was a significant threat.
In order to avoid that situation , they have recognized a system that was derived to enable then to
use the office ID card to exit for the office use only.

Not only that but also this crisis is directly affected for the transport facilities’ the companies
wanted to overcome from this issue also. As a result of it the companies appointed to give transport
facilities for their officers. When it comes to KFC company, they have decided that the employers
who were working at KFC transferred to the nearest Cargill’s food city. If directly shears that how
Cargill’s company overcome this worldwide crisis without hanging the employees who are
working at their cooperation. However, the crisis going on Cargill’s could to the best for their
employers.

They have given the breakfast and lunch for their employers before the crisis start. While the crisis
going on the have decided to give money as for their meals. Because at that the money essential.
As mentioned above dating this hard time Cargill’s was able to protect their employers and take

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then through the hard period of time without handing down with fulfilling their necessities’ last of
can say that ' Cargill’s was possible to Wantage the employers during he it.

Economic Crysis 2022

During the covid situation, Cargills Food city has taken Many decisions. Sri Lanka's government
had to take the lockdown option to control the COVID-19 virus. Those choices are unit taken for
giant firms, understanding the heartbeat of their stakeholders ensures longevity and connectedness.
From serving the few to serving several the various the numerous} Cargills has undergone many
changes as a company entity over its made history of over a hundred seventy-five years. reflective
on the journey to date, Cargills has remodelled itself from primarily a wholesale and retail business
to a significant player in Sri Lanka's food and nutrient business across multiple sectors.

From introducing Cargills Food town, the primary existent grocery that revolutionized fashionable
merchandising within the country, to effort long-standing food brands and taking them to new
heights, Cargills has ne'er shied removed from diving into new ventures.

At its core could be a deep, visceral understanding of its stakeholders, from farmers to shoppers
across twenty-five districts. Even throughout the pandemic of March, which tried to disrupt
traditional routines, this same realization, the pulse, if you'll, semiconductor diode the corporate
to a replacement norm.

1. First retail merchant to launch an e-retail mobile app in Ceylon

At the peak of the imprisonment, customers were desperate for the daily necessities their families
trusted. Frustrations mounted, and several queries were asked about wherever their order was and
why all the ordered things weren't delivered.
Yet, to the present day, customers WHO buy their groceries online create these same queries.
Through overwhelming feedback and criticism through social media and alternative channels,
Cargills Janus faced an easy, however troublesome question to answer: the way to create online
grocery look straightforward and hassle-free?

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 2. Introducing: Cargills on-line
Cargills online was formed as not simply an Associate in Nursing e-commerce platform, but an
entire overhaul of the grocery provide chain, guaranteeing convenience and guaranteeing
customers get what they order. Cargills pictured a lot of advanced online platforms than those
within the e-grocery phase. A platform that ensures customers have another to their food city, With
all-time low costs within the market, currently online too.

3. Ensuring delivery of each product

In theory, the task of delivering each item ordered by a client appears easy, however, is
troublesome to attain from a listing management perspective. to make sure receipt of the ordered
product, Cargills created a purpose-made, e-commerce fulfilment centre throughout the curfew.
This centre, or what the trade calls a "dark warehouse," helps guarantee that Cargills online fulfils
a customer's order.

4. Sanitation
To ensure that each order meets the best hygiene standards once it arrives at the customer's home,
sanitary cubicles, footbaths, and disinfecting sinks are incorporated into the development of the
centre.
Moreover, regular health screens within the sort of temperature checks area unit are strictly
administered to make sure that those addressing customers area unit in health. when delivery, every
one of those agents is cloaked and performs final hand hygiene before turning in to the client.

5. Delivered dry, cool, and frozen

Considerable investment was allotted to the walk, to make sure that each product ordered by the
client is nearly as good as if it left the assembly line wherever it had been made or the farm
wherever it had been grown up.

From delivery vehicles to the order drop box, Cargills online can guarantee your merchandise area
unit delivered below the correct conditions; Be it frozen dessert at -10 degrees astronomer or recent
fruits and vegetables.

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 6. Customer Service
A dedicated client service representative is offered on the decision because the platform's
elaborated list section Associate in Nursing consistent notifications don't seem to be enough to
trace an order through every stage, if a client has any considerations concerning their order. Early
client feedback delineated Cargill's online client service as the “next level”.

7. The city's 1st end-to-end e-grocer

Cargills online isn't simply a platform with pictures of merchandise available. it's an ideal
resolution for purchasers to continue ordering groceries online, building on Cargill's trust and
heritage and establishing e-grocery as a viable different from the normal brick and mortar store.

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References

[1] [Online]. Available: https://www.cnbc.com/2019/09/11/sri-lankas-economy-tourism-sector-

after-easter-sunday-bombings.html.
[2] [Online]. Available: https://island.lk/cargills-delivers-in-teeth-of-easter-and-covid-
challenges/.
[3] Cargills, "Annual Report 2019-20," Cargills group, 2020.
Contribution

Name Index Contributions

W.A.T.Piyumali 7107
Overview of The Company
P.K.M.K.Bandara 6991
V.R.S.Perera 6962 Sales of "Magic" ice cream began to plummet
H.V.I.Shenal 7168 2019 April Easter Bomb blast
M.N.S.Sandamali 7128 covid 19 impact to employees, and how employee
W.M.C.G.Weerasekara 7127 management
R.N.I.Pillai 6963
during this economic crisis impact to Cargill’s company
S.H.S.N.Premarathna 6935
A.M.D.S.Alahakoon 7158
Covid 19 impact to Cargill’s products
W.M.C.G.Weerasekara 7190