Company: Island Abby Foods - Assignment Example

Island Abby Foods Qn. 1. Over the years that Island Abbey foods enterprise has been in business, a variety of external actors have affected it, but some have been more impactful. The external factors that affected the company negatively included the lack or the availability of financing, the necessity of infrastructure and the trends that were taking place in the market. The fourth external factor that has influenced the business of the company extensively was the demand patterns and consumption preferences of the customer segments targeted by the company. Finance The availability of financing played a very important role in the success of the company, especially during the time of starting the enterprise and during the time of developing its new products. In particular, after the founder of Island Abbey Foods discovered the process of dehydrating honey, while still preserving it purity and nutrition, he encountered the challenge of financing the operations of the company (ACOA, 2012). At that point, the funding offered by ACOA was the main source of the funding needed to innovate, towards the development of the products that have made Island Abbey Foods a successful enterprise. The research and development activities of the company were primarily behind the success of the unique line of products for the company (ACOA, 2012). The funding has also been core to the company’s diversification of products to new retail markets; the new products have been well received by the customers. Marketing has been fostered by the financing offered by ACOA, and competing with other producers in the market became equally easy by the financing, which makes it a core external factor. More recently, the company attempted to source for additional financing from financiers like the Dragons, and in some cases, the company’s rapid growth has rendered financing unnecessary (Casey, 2008). Infrastructure Infrastructure is an external factor that played a critical role in the business of Island Abbey foods during the previous years it has been in business. ACOA (2012a) made reference to the influence of infrastructure, by highlighting that after the years of experimenting about the production system, the small scale production proved that there was a market for the honey products. After surpassing the production capacity of the initial infrastructure, the company got financing for the construction of bigger infrastructure, which enabled the company to do all its activities under the same premises. The financing received for the expansion of the infrastructure needed to foster the production of the company was at the core of widening the market reach of the company, as it produced more than ten times the capacity it did at the previous facility (ACOA, 2012a). Trends Trends have played an important role in the success of Island Abbey foods in the recent past, and the indications include the favorable reception of its innovative product range (Casey, 2008). The market trends behind the growth of the company include the market-wide acceptance of the products offered; evidence includes acceptance by the Canadian astronaut program, which swayed the market in favor of the products (Honibe, N.D [a]). The market trend of showing preference for healthy and nutritious products favored the entry of the company into the market, using the products that guaranteed the health and nutrition (Honibe, N.D). The success of the company and its products in the various target markets has been favored by the consumer’s preference for getting the health benefits of honey, while at the same time enjoying it in a distinctive style (Honibe, N.D [a]). Some of the markets that are attracted by the innovative nature of the honey products include the customers that would use the products in a form that is easier and more convenient for handling. More importantly, due to the increasing attention offered to the nutritional value of food by the modern consumer, the company’s guarantee of nutritious products has influenced its growth in the market (Honibe, N.D [a]). Customer Base The availability of a wide customer base has been at the core of the rapid growth of the company, especially due to the benefits reported about the consumption of honey. The benefits that make it a product preferred by a wide market includes that it boosts energy levels, while at the same time supplying sugars that do not cause the health problems caused by other sugars. Honey has been reported to be an immunity booster, and also a medication for common ailments like sleeplessness, which are common among the members of the modern society (Honibe, N.D [a]). The form of the product has allowed it to reach and receive the acceptance of a wide market, and the evidence includes that it is being distributed in convenience stores and grocery stores that would otherwise not sell honey in its liquid form (Casey, 2008). The acceptance of the innovative products into competitions, where only the best products are compared has also been an indicator of a favorable reception for the company’s products (CBC, 2012). Qn. 2. The administration of the activities of Island Abbey Foods has been predominantly under the hands of Rowe and his wife Susan who is also working as the CFO of the company. Taking into account the rapid growth of the company and the many markets it has entered successfully, it is clear that the company needs a highly motivated managerial team (Casey, 2008). From this viewpoint, it is clear that the classical philosophy of management is less likely to work for the company, due to its emphasis that employees only work for the physical and the economical benefits they receive. This deficient view of the classical model points out its incapacity to use it to administrate the operations of the activities successfully. Further, due to the relatively young age of the company and also its managerial concentration around the couple, the company needs a managerial philosophy that drives all the employees to outperform their roles. The necessity of a flexible managerial model is compounded by the company’s rapid growth, which calls for optimal perforce in all its locations (Casey, 2008). By adopting the behavioural management philosophy, the company’s top management is likely to motivate the teams and the managerial staffs working at the different locations where the operations of the company have been set up (Casey, 2008). Due to the theory’s emphasis on the motivation of employees, the management of the company can stimulate the workers operating at the markets covered, by offering them the benefits that create high levels of motivation. The motivations that can stimulate the performance of the workers of the company include the economic, physical and the psychological needs of the employees, including recognising high levels of performance. The managerial philosophy is most applicable to the company because it will allow the top management to focus on the expectations of the employees, the dynamics of the different markets and the opportunities of teamwork (CBC, 2012). The rapid expansion of the company is likely to trigger a variety of conflicts, and the behavioural approach will take that into account, apart from analysing the personal interests of the involved parties (Casey, 2008). Qn. 3. a). The organizational structure of Island Abbey foods will show the authority lines that are maintained from the top to the bottom and the channels of communication to be utilized. Further, it will showcase the style and approaches used for the assigning of responsibilities and the roles of organizational activities (CBC, 2012). In terms of the bureaucratic model to employ, traditional bureaucracy is likely not to work well for the new company, due to the newness of the company’s management and its expansion into new markets. The traditional bureaucratic system is likely to make the operations of new markets difficult, due to the lengthy course taken, before communication and changes are made. The centralization of operational decisions would most likely make it impossible for the top management to run the operations, and it is likely that it would also reduce motivation levels. The effects can be disastrous for the rapid expansion of the company. However, the adoption of a modern organizational outlook can offer a lot of benefits for the company, including that it will help the organization to manage its information, and also to keep the complex systems operational (CBC, 2012). For example, a decision related to the closure of a new operation or starting another one should not be done at a local market, without the authorization of the central office or a regional office. The modern system of bureaucracy will help the company to manage the interrelations that exist between the employees, which it can use to deliver programs increase motivation and morale levels. b). Under the area of work specialisation, the two forms of work specialization should be merged, so as to offer Island Abbey foods, the capacity to use its human resources extensively, yet allow them the social development that many workers lack. Functional specialisation will be very useful during the training and the capacity development of new staffs, especially those hired to work in new work areas (CBC, 2012). Through functional specialization, the company will reduce the time needed for staffs to learn the new tasks or work, and also reduce the instances of work-related errors. Towards realizing the goals, the company will expose new employees to the work related to their line of specialization more frequently and intensely, so that they can develop the skills needed for execution. However, social specialization will complement functional specialisation in an important way, by reducing the aspects of specialization that are often dehumanizing. The strategies that will be employed to aid the development of the employees will include enlarging the job scope of workers, rotating workers from one area of work to another and enriching the work experience (Casey, 2008). The formation and facilitation of staff quality circles will play an important role in the development of employees, as the platforms that they can use to drive the quality of service and products higher. Engaging staffs in the circles will help the company to eliminate the problems that could hinder job satisfaction and social development (Casey, 2008). c). Under the area of adopting a structure, Island Abbey foods should employ an organic framework, so as to foster the joint specialization of employees. By fostering joint specialization, teamwork will be improved, and coordinating the operations of the company in Canada and abroad will become more effective. Under the organic framework, Island Abbeys will benefit from the capacity development enjoyed by staffs, due to operating as members of teams and forces, which help with staff development. The organic framework will help the company to reduce the pressure that the top management may have suffered in the past, due to the difficulty of overseeing the company’s international operations (Casey, 2008). The framework will help the company to develop the staffs more effectively, to improve the adjustment of employees, and the work experience of staffs will remain interesting and engaging. Qn. 4. The business-level strategy that has been at the core of the business of Island Abbey foods was that of differentiation. The evidence demonstrating that the company has predominantly used the strategy includes that the company entered the market through value development for its customers (Honibe, N.D). The customers of the products offered by the company are offered unique characteristics and features that are not served by the sellers of other honey products. The evidence of the differentiation strategy is evident from the company’s utilization of a self-initiated production process; the founder has secured copyrights for their copyrights. The main area of value offered to customers is the delivery of products that are clean and hygienic, as well as more convenient to handle, despite preserving all the nutritional and medicinal value of honey (Honibe, N.D [a]). References ACOA. (2012). Innovation at Work. ACOA. Retrieved from http://www.acoa- apeca.gc.ca/eng/AudioVideo/Pages/IslandAbbeyFoods.aspx?ProgramID= ACOA. (2012a). A Honey of an idea. Acoa-apeca Retrieved from http://www.acoa-apeca.gc.ca/eng/Pages/IslandAbbey.aspx Casey, Q. (2008). The power of 10. Progressmedia. Retrieved from http://www.progressmedia.ca/article/2012/11/power-10-0 CBC. (2012). P.E.I. honey product blasting into space. CBC News. Retrieved from http://www.cbc.ca/news/canada/prince-edward-island/p-e-i-honey-product-blasting-into- space-1.1264673 Honibe. (N.D). The Honibe Story. Honibe. Retrieved from http://honibe.com/our-story/ Honibe. (N.D [a]). We use the least ingredients possible without compromising health benefits or taste. Honibe. Retrieved from http://honibe.com/our-products-2/ Read More