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Mitchells Introduction

Mitchells is the only major food company in Pakistan today with fully integrated operations having its own growing and processing facilities at one location. Modern high-volume industrial equipment, professional management and a trained workforce all combine to ensure that Mitchells continues its dominance as the innovator, market leader and trend setter. In this regard a major step was taken in 1998, when Mitchells became the first food company in Pakistan to achieve ISO 9001 accreditation, thus becoming more competitive on the international stage also. Fully computerized and inter-linked regional sales offices ensuring a smooth distribution system with nationwide coverage manage countrywide sales. Highly qualified executives, using modern management tools, handle marketing, commercial, financial and accounting functions from the Head Office in Lahore. Mitchells is playing a vital role in the Pakistans economy. Mitchells has been in the market long before independence and still enjoys a good repute. This is the evidence of the companys dedication, trust and commitment to provide the best quality products in the market. Despite all the odds, Mitchells is still the Market Leader in Squashes, Preserves, and Sauces.

Corporate Mission:
Mission Statement
To be a Leader in the markets we serve by providing quality products and efficient services to our consumers while learning from their feedback to set even higher standards for our products. To be a Company that continuously enhances its superior technological competence to provide innovative solutions and superior products as per requirement of the market place. To be a Company that attracts and retains outstanding people by creating a culture that fosters openness and innovation, promotes individual growth, and rewards initiative and performance.

To be a Company which combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair returns to its investors. To be a Company that endeavors to set the highest standards in corporate ethics in serving society.

Mission Statement Components Customers


Mitchells customers are from every age. It varies from young children to every age people. Mitchells provide healthy, innovative and best quality food to its customers round the year which also contain convenience, variety and affordability.

Products or services
The ever-growing Mitchells portfolio comprises 9 categories and of over 212 products that grace your dining table at breakfast, lunch and dinner as well as products that may satisfy your sweet tooth at any time of the day.

Market
The target market at the time of launch was up to 60 years of age and the core target was 15-30 years of age. They have two divisions Grocery Products and Confectionery Products to capturing the market and serving to every age of peoples.

Technology
Mitchells has always been keeping itself abreast with the modern technology and updating its machinery and equipment with the passage of time. That is the reason Mitchells has the latest machines for processing of raw material and manufacturing of grocery and confectionery products. This technology update has also brought an advantage of increased production capacity. In order to utilize this capacity, Mitchells has started offering Co-pack services to various organizations, given the technical and R&D expertise that Mitchells possesses. We deal in the

following product categories and welcome organizations from Pakistan as well as abroad who are interested in co-packing of products that we have the capability to make for the client based on his specific requirement.

Concern for survival, growth and profitability


Mitchells management is very much concern about the growth and profitability of the company. The success of Mitchells products is the result of the companys ongoing investment in, and emphasis on, Quality Control reinforced by Research and Development (R&D).

Philosophy
Each and every Mitchells brand owes its success to the corporate emphasis on universally recognized standards of Quality Control plus Research & Development. The R & D section prepares new recipes and formulations whereas QC approves selection of only the finest fruits/vegetables and flawless processing, and packaging, thus ensuring that all products live up to the consumers high expectations.

Self concept
The firms major strengths and competitive advantages are its ISO 9001 Accreditation, foreign licenses, research and development and quality control and training. What makes it more significant is the fact that ISO 9001 involves all steps in the manufacturing chain; starting from design and development of products to productions right up to distribution. Along with this Mitchells investing huge amount of capital in R & D which can be a major backbone of any organization.

Concern for public image


Mitchell's Fruit Farms is one of the oldest companies marketing quality food brands. People like almost every brand of Mitchells. Especially childrens really love Mitchells chocolates and Jam, Jellies and Marmalade. Mitchell's has joined hands with the village communities as well as the British Council, the Department for International Development (UK) and Voluntary Service Overseas (UK) in an effort to promote education in rural areas.

Twenty-five girls' schools have been set up in the Okara district in an endeavor to boost the levels of female literacy. Also a Teachers Training Institute has been set up to provide quality teaching staff to the local schools. Mitchell's assures that it will continue to work towards its aim - promoting education amongst future generations. This whole gives them a very strong and positive image in public opinion.

Concern for employees


The management attaches great importance to employee skills which are being constantly updated through training courses and study tours both at home and abroad.

Core Elements that Organization Prioritizes


Mitchells Fruit Farms emphasis on following core elements:

Products and Services


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.

Technology
To be a Company that continuously enhances its superior technological competence to provide innovative solutions and superior products as per requirement of the market place.

Concern for survival, growth and profitability


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.

Concern for employees


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.

Philosophy
To be a Company that endeavors to set the highest standards in corporate ethics in serving society.

Corporate Goals and Objectives


Primary objective is to manufacture and sell various Farm and Confectionery products. Mitchell's secondary objective is to provide its customer with healthy, innovative and best quality food that will tempt their appetite at all times. Above all, Mitchells also promise convenience & variety at affordable prices. In Mitchells all departments has their own goals and objective set by management which they have to achieve in their given period of time. Mitchells management has set all the department objectives as corporate objectives. Though they do not have their corporate objectives in written form but the main objective and goal is profit maximization. The departments objectives are as below 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 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.

6. The Marketing Department is responsible for planning and developing products and executing their sales at an affordable price through promotional activities. Mitchells new management has set its corporate goal as to build image in customer mind. The old management has not put focus on this point.

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. Furthermore the product lines like squashes, syrups, pickles, jams, jellies, marmalades, sauces, diet preserves, vinegars, candies and chocolates are the product lines that are closely related in context of many business aspects. So we can say that Mitchell's is exercising the concentric diversification.

Backward Integration
Seeking ownership or increased control of a firms suppliers.

Mitchell's fruit farms limited are acting on the concept of backward integration. Mitchell's has its own orchards and dairy farms for the smooth flow of raw material that is used in the production of Mitchell's products. 450 acres of land is used for cultivation of raw material. Following fruits requirements are being fulfilled by Mitchells own agriculture land. Lemon Grape Fruit Sevlik Orange Tomato Garlic 100% 100% 100% 30% 30%

Apart from the Mitchell's own orchards, Mitchell's has sound control over its suppliers. For example, the raw material that is used in the Mitchell's is of two types. First is the raw material that is used in the production process and the second is the raw material that is used for the packaging of the products. Package (Pvt.) limited is the sole supplier of the packaging material of the Mitchell's. Mitchell's and packages (Pvt.) limited have the same directorships, so in this way we can say that Mitchell's has good enough influence over the management of the packages (Pvt.) limited.

Top Management Involvement in Strategy Formulation


In this aspect of strategy, we are concerned with broad decisions about the total organization's scope and direction. Basically, we consider what changes should be made in our growth

objective and strategy for achieving it, the lines of business we are in, and how these lines of business fit together. It is useful to think of three components of corporate level strategy: (a) growth or directional strategy (what should be our growth objective, ranging from retrenchment through stability to varying degrees of growth - and how do we accomplish this), (b) portfolio strategy (what should be our portfolio of lines of business, which implicitly requires reconsidering how much

concentration or diversification we should have), and (c) parenting strategy (how we allocate resources and manage capabilities and activities across the portfolio -- where do we put special emphasis, and how much do we integrate our various lines of business). Mitchells strategy formulation process is centralized. All decisions are made by the top level management and also implemented through senior posts. They also take feedback or suggestion from their employees and include them in strategy formulation process. Though they have this environment but the ultimate decisions are made by top level management. Mitchells management takes data from each department while they are formulating any strategy. Management takes information from finance department that we are going to give this kind of policy, whether we have a sufficient amount of finance available or not? Same is the case with production process when management decides to launch a new product, they ask from the production process that whether this production facility is available in our factory or not? Management also involves in formulating policy which did not hurt the behavior of their employees. They do not want to make any policy which hurt or degrade their employees.

Goals of each SBU


The success of Mitchell's products, and the taste that has been winning consumers' hearts for generations, is the result of the company's ongoing investment in and emphasis on quality control, reinforced by research and development (R & D). Both sections closely coordinate with the Marketing and Exports Office in Lahore where product concepts are initiated and passed on to the R & D section for formulation. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation.

Goals of Grocery Division


1. To get customer confidence by providing high quality and innovative products made by our fresh farms. 2. To provide nutritious products to our health conscious customers as compared to our competitors. 3. Provide quality from selection of the finest fruits, to processing and packaging.

4. Provide huge variety of products to cater every need of the customer in grocery 5. Providing such products that increase your appetite in breakfast, Lunch and dinner Goals of Confectionary Division 1. To provide quality confectionaries to compete international brands like Cadbury, Nestle` 2. To meet up the taste of every age customer through delicious confectionaries 3. To satisfy your sweet tooth at any time of the day by yummy chocolates and milk toffee 4. Enhance the confectionaries quality by foreign licensing

Linkage of the Goals of each SBU with the corporate level Goals
Mitchells primary objective is to sell various farm and confectionery products, that high in quality and according to customer demand. When we give innovative and quality products to our customers, our sales as well as our brand image will be improved. We need to provide best quality and finest fruits which also reduce the wastage as well as give a yummy taste to our customer when they open any of our products. Our products should be for all segments and all age of users. The products fulfill their breakfast, lunch and dinner needs. All of our departments are mutually aligned while making a strategy for a division. While in confectionaries Mitchell's products, and the taste that has been winning consumers' hearts for generations, is the result of the Company's ongoing investment in and emphasis on quality control, reinforced by research and development (R & D). Both sections closely coordinate with the Marketing and Exports Office in Lahore where product concepts are initiated and passed on to the R & D section for formulation. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation. Mitchell's Fruit Farms Limited is committed to produce best quality products meeting our customers' requirements at competitive prices, strengthening our position as a quality managed company. Our unique selling proposition is quality .We never compromise on the quality. Even if we got any complain then we immediately replace it. Mitchells believes that success of the organization lies in the satisfaction of its customers. Therefore Mitchells has always given first priority to its customers feedback. The feedbacks

and opinions of the customers are very useful for them and besides this they study the feedback and try to implement that accordingly.

KPIs incorporated for SBU performance


Targets
Targets of each SBU is defined by the head of each division, the targets can be annually, semi annually, monthly and weekly. Management set targets on geographic and demand basis.

Management gets information from their sales personals and also from surveys to know the need of a certain product. To fulfill the targets Mitchells have very effective distribution and supply chain system. Some targets are set by seasonally, like squashes target can be increased in summers.

Responsiveness
Mitchells also measure SBUs performance through responsiveness. If demand is generated for grocery or confectionery products, how fast they fulfill the demand. And this will only be happen when we have desired amount of inventory available.

Shop Coverage
According to management one KPI is shop coverage. How many shops our marketing team is targeting and how much our products are available on that shops.

Business Unit Strategies derived through Corporate Mission


Mitchells corporate mission talks about product quality and efficient services which can improve the confidence of Mitchells customer at the company. Their business units strategies can be derived from their corporate mission .We are working on Mitchells grocery division and three strategies in grocery division which they are following. At first we can take backward integration, 2nd product development and lastly market development. First the company emphasis on quality and it derives backward integration.

Mitchells produce the entire products from their own fruits and claims that Mitchells products are having much more natural ingredient than any other company. This gives an image to the company which did not compromise on quality, because when they purchase raw martial from outside there are many chances of variations in quality so they dont want to take any risk in quality. The Quality Control staff, with a main up-to-date laboratory, two line-control labs for the Groceries and Sugar Confectionery divisions, and an incubation lab, ensures that there is no deficiency in quality standards during production. Secondly enhances its superior technological competence to provide innovative solutions and it derives to the product development. To produce the innovative and new products in market, company allocate huge amount of resources and capital for R & D. Once the R&D section has prepared samples of new products, the Marketing Division carefully carries out product evaluation. And thirdly to attract the investors and maximizing the profitability that derives the market development that is same product in new market globally. Mitchells also exports its products to other part of the world. MITCHELL'S products are being exported to several parts of the world, including UK, USA, and the Middle East. In future the Company is planning to make MITCHELL'S a brand name familiar with households in every part of the world.

Identify links and associations


In grocery products Mitchells is offering Jam, Jellies, squashes, syrups, ketchups, fruit drinks etc. This whole required high tech and innovative machinery which not only reduce the waste but also produce fast. For operating these plants company attract and retains outstanding peoples which work for the betterment of the organization. As in grocery division Mitchells management is following backward integration policy, in which they are controlling suppliers etc because they have raw martial from their own farms. Mitchell's is the only major company with fully integrated operations having its own growing

and processing facilities at one location. This we can say is not compromising own quality policy which they have mention in the mission statement. Grocery division employees are key source of quality. Human Resource has also the pivotal importance for the company. Management and employee skills are constantly being updated through training courses and study tours both at home and abroad. Currently Mitchells is operating with 32 executive staff members along with a big sales and labor force. Grocery division of Mitchells has the high profit margin as compared to confectionery products. So this division is the highest profit giving and very attractive to the investors. Mitchells want to be a company which combines people, technology, management system and market opportunities to achieve profitable growth and rewards. The success of Mitchells brands is the result of the corporate emphasis laid upon Quality Control reinforced by Research & Development. Corporate ethics are need of todays business environment. Mitchells has promised to set the highest standards in corporate world and has keen interest in serving society. These promises Mitchells has done in its Mission Statement and also for grocery divisions.

What key resources and capabilities do the Business Unit Possess?


Mitchells has always been keeping itself abreast with the modern technology and updating its machinery and equipment with the passage of time. That is the reason Mitchells has the latest machines for processing of raw material and manufacturing of grocery and confectionery products. This technology update has also brought an advantage of increased production capacity. Squashes and Syrups / Bottled Fruit Drinks Mitchells has got state-of-the-art juices and squashes manufacturing set-up in PET and is capable of developing any flavour with any specifications.

Bottled Water Beneath the ground at Mitchells, Renala Khurd, there is a pure source of water containing a perfect natural balance of essential minerals. Mitchells has acquired the best filtration and bottling equipment to offer this high quality bottled water in consumer and bulk packaging. Testing and approval from UK-based laboratory is just one proof of high quality standards that Mitchells maintain. Preserves Mitchells preserves range has been the first choice of every household for 75 years and there is no match to Mitchells preserves range. Mitchells produces best quality preserves based on vacuum cooking technology to preserve flavour and taste.

Sauces Sauces and Chutneys are also one of the specialties of Mitchells. The highly automated lines

contribute to a superb final product.

Pickles No one knows traditional taste better than Mitchells. Our R&D department is capable of developing any kind of recipe comprising pickled fruits and vegetables.

Canned Fruits and Vegetables Being the leading fruit and vegetables processors of the country, Mitchells has got all the expertise and facilities to process and can, utilizing a fully automatic line, the vegetables and fruits.

Strategy formulation procedure and process by


Currently the management of Mitchells has decided to improve the brand image on customers mind, so they have told the process of all this to us which is as below.

Objective
The objective of the strategy depends on management. For which purpose they are developing the strategy? Either management wants to improve the sales of the products and intrested in to launch new product rang for current and potential customers. Currenty the management of Mitchells has changed and new directors and CEO has annoucned. New management has decided to improve the brand image of Mitchells in customers mind. Though Mitchells is a more than 75 years old company but in hayper competition and contionous changing environment to be a customers top of mind is very improtant. The current strategy objective is to enhance the brand image and to be on customers top of mind.

Resource Allocation
Resource allocation is so much important for the strategy formulation because when company makes strategy first they observe all resource that they have and how many more resources are needed for achieving the target. When all information about the resources collected they allocate according to the need and requirements of the all departments, for resources allocation. How management will allocate the resources to improve the brand image of the Mitchells? The assistant brand manager explained this thing in this way that they first take the data from the marketing and sales department and they will check current demand and supply of their products. Next brand manager will talk to the finance people that wheter the sufficint amount of finance is available or not? Do we need to have some other resources to fulfil this campaign? Moreover production department will also be involved to check that in case of more demand is our procuction capacity is sufficent? Then the brand manager decided what steps they have to take for improving the brand image of their products. Either they go for Print or Electronic media. Throughing all this

processes management send the strategy for the final approval to the higher management and then higher management approvve or disapprove the policy with their comments.

Involvement and co-ordination between corporate level managers and Business Unit Managers
Involvements of the all employees toward business success in every organization play a vital role. In Mitchells all employees are co-operate with each other, corporate level manager have more responsibility on all operational activates. But corporate level manager work with the help of business unit managers, like when grocery unit manager face any problem SBU manager report to operational manager and discuss in details and find the solution of the problems. Operational manager also discuses with business level unit before making any police and set target. When grocery unit manager have more demand of any product like in summer when demand of Mitchells Squashes & Syrups increases, business unit manager inform to the operational manager about the demand pattern and operational manager increases the resources of grocery unit. Mitchells have a strong R&D Department that collect all the information from market about existing and new in market. When R&D department find changes in trends R&D team inform to the operational manager and operational manager ask to grocery unit manager about resources available and how much resources needed to overcome to the present situation. Then grocery unit manager inform all the require resources for fulfill the demand. With the great co-operation of managers Mitchells have a good image in the market and get lot of profit.

Functional Level Strategies in terms of Management, Marketing, Finance, Production, Operations


Marketing Department
The Marketing Department comprises of the Marketing Office (situated at Head Office) and three regional Sales Offices termed as RSOs. The Marketing Department is responsible for

planning and developing products and executing their sales at an affordable price through promotional activities. The Marketing Department is headed by Marketing Manager MM, who is further assisted by Assistant Brand Managers and Assistant Manager Channel DevelopmentAM (CD). The three Regional Sales Offices situated in Islamabad, Lahore and Karachi - known as RSO (N), RSO(C) and RSO (S), respectively. A Regional Sales Manager termed as RSM supervises each RSO. In RSO (S) and RSO(C), an Assistant Sales Manager termed as ASM assists each RSM.

Customer Analysis
Marketing Department is also responsible for examination and evaluation of consumer needs, desires and wants. Marketing department perform these task through customer surveys and also develop customer profiles. Customer profiles can reveal the demographic characteristics of Mitchells. Buyers, sellers, distributors, salespeople, managers, wholesalers, retailers, suppliers and creditors can all participate in gathering information to successfully identify customers needs and wants.

Selling Products/Services
Selling includes many marketing activities, such as advertising, sales promotions, publicity, personal selling customer relations etc. Mitchells is trying to sell its products with a image of a family brand. Different products of the Mitchells are shown at different occasions. So Mitchells is trying to fit themselves as a family product. It is trying to relate itself with the happy moments of the family. Mitchells trying to convey this message in overall their advertisements.

Product and Service Planning


Product and service planning includes activities such as test marketing; product and brand positioning; packing; determing product options etc. Mitchells do test marketing of its products before launching them just to see the response of peoples. When conducting a test marketing, Mitchells management decide how manay cities to include, which cities to include etc.

Pricing
Mitchells pricing goal is to increase sales volume and maintain or increase the market share. In order to seek higher sales volume we often apply discounting techniques or other aggressive pricing strategies. Mitchells had charged premium price due to their brand image in the market for a long time. But, due to shift in demand it has become almost to its competitors.

Distribution
Mitchells adopted the channel-Structure Strategy for distribution. They believe that product should be distributed directly from manufacturer to customer or indirectly through one or more intermediaries. They sell their products sometimes directly and sometimes they sell their products through retailers. Like in Lahore they need to sell their products between the months of March till November where as on the other side in Karachi the demand of the Squashes remain the same throughout the year since there need to have other distribution channels as compare to Lahore. Although Mitchells make use of the direct distribution strategy and indirect distribution strategy and hence that is why the eye level is always filled with the products of Squashes, which leads to a good result of increase in sales.

Management department Planning


Planning is the process by which Mitchells management determines whether to attempt a task, works out the most effect way of reaching desired objectives. In Mitchells Goals are set with a few deal of participation. Decision making is transferring to decentralization from centralization.

Organizing
The purpose of organizing is to achieve coordinated effort by defining task and authority relationship. As we know that MITCHELLS Fruit Farms Limited is a manufacturing company, so there is much importance of organizing in the company. Production department is responsible for the organizing raw materials etc.

Motivating
Motivations can be defined as the process of influencing peole to accomplish specific objectives. Mitchell's fruit farms limited provide an attractive career path to their employees. The promotions of the employees are base on their performance as well as experience. Both are considered by the human resource department. The Mitchell's take care of their employees and serve their career goals in a marvelous manner.

Staffing
Recruitment practice is done after particular period of time in the Mitchells Fruit Farms Limited. But if we practically see the recruitment process in the company, we will come to know that the top priority is given to those candidates who have the experience in relevant job and strong internal references. The professional management and skilled labor force is considered as the asset of the company; so Mitchells Fruit Farms Limited take it very serious for the betterment of employees skills and expertise. The company sent the management people in the foreign countries for attending various seminars, workshop and refresher courses.

Controlling
All managers in an organization have controlling responsibilites. Such as conducting performance evaluations and taking necessary actions to minimize inefficincies. The controling fuction of management is particulary improtant for an effective strategy evaluation.

Finance Department
The main objective of the Finance Department in the company is to arrange the finance for the business operations from various sources, control the activities that are related with the finance, maintain and update the companys accounts. Finance department perform following tasks which are as below; 1. To link all departments with each other financially 2. Arrange monetary resources at proper time

3. Allocate resources throughout the organization 4. Deals with banks investment firms, Govt. agencies and tax department. 5. Carry out final auditing and financial records prepared 6. Details of calculations of salaries, income tax and funds for loans 7. Calculate different expenses of the company

System Department
Objective of the System Department of the company is to computerize the business operations of the Mitchells Fruit Farms Limited.

Computerized Accounting System


Mitchells Fruit Farms Limited has its own computerized accounting system that facilitates the finance department make the companys procedures more efficient. This accounting system is according to the requirement of finance department and is facilitating finance people in a marvelous way. It cause reduction in corruption, delays in payments and make easy the documentation of the accounting transactions.

Inventory System
The system department of the company recently introduced the inventory system of the company. This system again increases the efficiency of Planning and Stores Department.

Sales System
To facilitate the Marketing Department and all Regional Sales Offices, the system department introduces a sales system. This system is working very well within the company.

Human Resource System


Now the system department of the company is working on the preparation of human resource system. It will be a computerized system. It will include the records of attendance, salaries, the retirements, promotions and all other information about personnel matters. All these systems are Oracle based and prepared by the system department of Mitchells Fruit Farms Limited.

Human Resource Department


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. Human Resource Department assists organization in following ways 1. Approve training agencies, which give the training to the personnel of Mitchells Fruit Farms Limited. 2. Ensure hygiene conditions and housekeeping of the factory. 3. Approve job contract contractors. 4. Conducts and arranges training programs. 5. Implement measures that are helpful to motivate the personnel of the company. 6. Operational in charge of the factory. 7. Select candidates for internship in different departments for the period of maximum three month.

Quality Control Department


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.

Main Lab
This section of quality control department is used for the lab-scale product development and the testing of incoming raw material; packaging material is done in this section of the department.

Line Control Laboratory For Grocery


This section is used to do in-process inspection and testing of grocery as per quality plans and documented procedures.

Incubation Laboratory
This lab is very important section of the quality control department. This section keeps representative samples as per documented procedures from production for monitoring of shelf life of the products. This section is also responsible for keeping reference samples of products for comparison of colors, flavor, set for comparison as per documented procedures.

Microbiological Laboratory
This section of the department is used for the testing purposes of canned juices, tomato puree, ketchup, and Chili garlic sauce and for hygiene purpose.

Production Department
The major objective of the Production Department is to produce quality goods at minimum cost by utilizing the companys resources in an efficient manner.

Labor Force
In the production department, there are round about 350 workers are working including females laborers. In the department, there are two types of labor force is working for producing the high quality products. 1. Permanent work force 2. Contract work force

Permanent Work Force


This kind of work force is working in the factory on the permanent bases and has pension and other fringe benefits during service and after their service.

Contract Work Force


This kind of work force is working in the factory on the contract bases. They have less facilities and incentives than the permanent work force. They have not right of any kind of benefits after their retirements. Their pay is also less than that of permanent workers of the factory.

High cost provider of good & services


Mitchell's first aim to provide best quality product and services to its customers and for providing good quality product and services they don't compromise on cost. They use best quality raw material from their own forms.

Stress Customer Services


Mitchell's hire experienced employees and also arrange special trainings for employees to enhance their ability to increase productivity. Their employees well aware about the trend of market and communicate to the production department about latest demand of market they also use modern technology for making their production more effectively and efficiently.

Provide rapid and frequent introduction of new products


Mitchell's have strong R&D department so they now about the demand of the product in the market. When they collect information about new trend in market they introduce new product for their customers. That's why Mitchell's have wide range of product in their product line and have more than 212 products.

Consolidate Processing (centralize)


Mitchell's have its own fruit forms and dairies which are near Okara (Runala Khurd) and latest technology is installed within their factory. So all the operations are taken place within the specific area.

Hierarchy and Structure


Company Strategy
Mitchells will adopt Product Development strategy in order to meet sales growth and profitability objectives.

Supporting Policies

1. Marketing and sales team must identify new trends (This policy will identify the areas in which Mitchells need to invest and to launch new products. 2. Marketing department will be responsible for gathering data from customers, sales persons, store, and outlets (This policy will tell Mitchells the exact requirement of customer about new products) 3. Marketing department will launch a new advertising campaign at broad level for making Mitchells customer first choice (This policy could allow the company to establish a national reputation)

Divisional Objectives
Increase the divisions revenue from 1381357 in 2009 to 1482466 in 2010

Supporting Policies
Beginning in January 2010, each one of this divisions salespersons must file a weekly activity report that includes the number of stores visited, the number of miles traveled and a report about market trend and customer requirements sales person can get ideas from the stores owner and some survey (This policy could ensure that salespersons bring new trend information which helps in product development) Beginning in January 2010, this division will return to its employees 5 percent of its gross revenues in form of a holiday bonus (This policy could increase the employee productivity)

Production Department Objective


Increase R & D budget using new technique to reduce the production costs.

Supporting Policies
Beginning in January 2010, new equipment must be leased rather than purchased (This policy could reduce tax liabilities and thus allow more funds to be invested in modernizing production process)

Beginning in January 2010, perfect attendance awards in the amount of Rs. 500 rupees will be given to all employees who dont miss a workday in a given year (This policy will decrease absenteeism and increase productivity)

Structure:

CEO

Grocery Division

Confectionary Division

Marketing Manager

Production Manager

Finance Manager

Purchase Manager

Human Resource Manaager

Quality Contorl Manager

Strategy and Structure co-relate


Our selected strategy is product development, and we have to give new products in existing market. Mitchells have same team for both grocery and confectionery divisions. Same marketing, management, finance team dealing with both divisions. New product development required a huge amount in R & D and also marketing department plays a vital role in this process. Marketing department will collect the information about new trends and behavior of peoples which they communicate with in the team and then formulate the strategy. Mutual collaboration between each department is very important when company plan to give new products in existing market. Competitors are already exists in market, this collaboration gives company a competitive edge on others. Co-relation is also in a sense too when if marketing

department has put a recommendation for a new product, the production and finance department should also acknowledge that. Mitchells must take suggestions from the lower level or blue color workers. This will give them a sense of ownership and they will try to enhance the productivity of the organization.

Identify key Gaps in Strategy Formulation, Implementation and Control


Mitchells management first did not focusing on Marketing activities. This was the major gap in strategy, because Mitchells has promised in this mission statement to satisfy customers need. Mitchells has superior quality products but the availability is low. People did not find Mitchells products on retail stores often. When Mitchells has formulated its strategy they have emphasis in promotion mix. Mitchells management decision style is very centralized. Although they take suggestion from employees while formulating strategy, But the final decision is made by CEO. This gap discourages employees, which reduce their productivity.

Corrective Actions recommended to Organization


At this time, the Mitchell's fruit farms limited are utilizing its 70 % of total capacity. So there is need to market development also. More markets will help company to utilize its full capacity but also increase the profitability and competitiveness of company. Mitchell's should explore new markets not only in the country but also in the abroad. Mitchells has very quality products which has low promotion mix. 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 .Mitchells should take corrective action to increase the promotion mix by using Print and electronic media. They should hire a brand ambassador and focus in ads on product quality and happy moments of life with family. Mitchells aim is to become a family brand, which fulfill the whole needs of a family. Although new management has decided to improve the brand image of Mitchells and they are trying to make Mitchells customers top priority. 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.

Develop Contingencies
Contingency plan can be defined as alternative plans that can be put into effect if certain key events dont occur as expected.

Market Development
We have recommended Product Development as a strategy, but as a contingency Mitchells can also follow Market Development strategy. Because it is falling in space matrix and there are other strategies which can be followed. Many areas in Pakistan where Mitchells products are not available, Mitchells can focus on this opportunity. Although the company exporting its

products to Middle East, Canada, Gulf, Saudi Arabia, U.S.A and European countries. But in these countries, still need of market development is exist.

Market Penetration
If Mitchells focus on its marketing and promotion mix, they can get maximum market share in grocery as well as in confectioneries.

Recommendations
Mitchells fruit farms is one of the best national company that playing very important role in the economy of the country. Mitchells is known as trendsetter, innovator and progressive company in the food industry of Pakistan. Mitchells recent achievements like automation of toffee making process molded chocolate plant, ISO 9001 certification. The company set high standards of quality and has experience of 77 years that help the company to successfully competing even multi-national companies. As according to what we observed from the Mitchells Strategies we have found that Mitchells is sometimes proactive and some time it adopts reactive approach. Mitchells is very much

conscious and careful about its sales and about the customer level satisfaction and since 1933 they tried to maintain a same graph of satisfaction level and give customer a quality, fresh farm products direct from their own farms. Mitchells is very much concerned about its SWOT analysis and keeping a closer eye on every action it can take for the better of its products. 1. The display of Mitchells products is not so good versus its competitors; Mitchells should to build strong relationship with store owner so that they give them suitable shelf spacing. 2. Mitchells should introduce new tastes which are according to the health conscious customer demands. 3. The company can also expand its business in other product ranges like butter, cheese, , snacks etc 4. Promotion mix of Mitchells should improve 5. They should hire a brand ambassador for the publicity of their products. 6. They should improve packages and introduce different size of packaging of the product. 7. Mitchells should launch family packs for providing more utility to customer. 8. Mitchells should improve their distribution network in rural areas

References
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