Managing Changes within Business - Essay Example

?Topic: Business Report Affiliation: Contents Introduction 3 Terms of Reference 32.Procedure 4 3.Findings 5 3.1.UK Food Markets Environment 5 3.2.Impacts on the Business 6 3.3.Economic Future of Nature Foods Ltd 7 4.Conclusion 8 5.Recommendations 8 References 9 Introduction Nature Foods Ltd. seeks to exploit and take advantage of emerging opportunities in the UK food markets. Its product line seeks to be caught up in an operational challenge following consumer concerns and change of preferences by these consumers. The manufacturing, packaging and supply of the company’s food products depends on the importation of raw foods from various countries around the globe. The emerging consumer concerns are likely to corner the operations and business prospect of the company if the necessary actions are not taken. In order to survive the economic downturn and counter the emerging challenges in its business line, Nature Foods Ltd has to effectively and efficiently manage changes within its business. 1. Terms of Reference Nature Foods Ltd UK markets Manufacturing and packaging Consumer concerns Raw food Retailers Imports and importation Competition Breakfast cereals Snack bars Dried fruits and nuts Food industry trends Environment Global business Low food mileage Natural and artificial ingredients Economic downturn Business operations and performance Business change management Economic future Contemporary times Purpose of research 2. Procedure Research aiding the compilation of this report was conducted on observation basis, focusing on the food industry in the UK and its players. Secondary research was specifically employed, using both primary and secondary sources of information. References are cited accordingly throughout this report. 3. Findings 3.1. UK Food Markets Environment The UK food markets environment is highly competitive, characterized by manufacturers, wholesalers, and retailers (Fox, 2005, p.19). Nature Foods Ltd is a retailing firm that engages in processing imported raw food. The company’s product line deals with breakfast cereals, snack bars, and dried fruits and nuts. Food markets in the UK food industry depict as aspect of the need to design, redesign, and integrate change in business operations to ensure that consumer needs are met and that consumer concerns are timely addressed (Jack, 2009, p.201). Economic downturn combined with a number of consumer concerns, tastes and preferences have posed substantial operational challenges to Nature Foods limited. The economic downturn has significantly influenced the business portfolio of the firm. Consumers’ preference to go local in terms of product consumption threatens the company’s business continuity due to the fact the company only manufactures and packages its products after importing raw food from foreign countries. Note that this aspect is also influenced by global business trends both locally and internationally. Advocacy for low food mileage has increasingly become prominent as consumer shift to relatively less transported food. This has necessitated the need for change management in manufacturing and packaging procedures, thereby influencing business operations and performance (Coles & Kirwan, 2011, p.167). In this respect, the performance and success of an enterprise is influenced by the strategic plans adapted to suit the operations of the firm. Natural and artificial food ingredients have also been put to test. The tastes and preferences of the consumers are increasingly becoming oriented towards natural ingredients as opposed to artificial ingredients. In the light of these findings, Nature Foods Ltd has to re-evaluate and restructure its business processes. 3.2. Impacts on the Business Consumers have increasingly become cautious about environmental issues, resulting in preference of locally produced products to those imported from foreign countries. This concern directly cuts into the operations and product line of Nature Foods Ltd. Most importantly, environmental concern is an issue in the contemporary times, where the consumers are increasing becoming local as opposed to preferring products produced in foreign countries (Brennan & Grandison, 2012, p.241). Nature Foods must stand to satisfy its customers in this line in order to ensure business continuity. Although the company manufactures and packages its products locally, its primary raw materials, raw food, is imported from various foreign countries. This scenario can shift customers’ preferences away from the company. Moreover, the processing unit is located in Devon, from where final products are distribute across the UK. The preference of low food mileage necessitates change in this aspect of the company. There is need for expansion and establishment of more than one manufacturing and packaging units across the UK (Mayer, 2004, p.377). Failure to do so would jeopardize crucial organizational goals of ensuring customer satisfaction is achieved. Production processes are also in dire need for change as consumers embrace natural ingredients over artificial ingredients. The only way to remain competitive in the market is to target customers with an objective of ensuring that their needs and demands are met (Hutter, 2011, p.94; Howell, 2007, p.31). As a result, the company might find it necessary to redesign, restructure, or generally undertake an overhaul of its production processes in order to remain at par with market trends and demands. In other words, the company is likely to engage in intensive investment that will prove profitable as market demands shift. 3.3. Economic Future of Nature Foods Ltd The future of Nature Foods Ltd is dependent on the strategic decisions that it will make in the current time. The findings on the food industry depict an aspect of critical shifts in the tastes and preferences of consumers. The company’s business prospect has to significantly take the highlighted matters into account. Failure to do so, the company is likely to suffer a fatal economic future. This aspect provides for the purpose of research in the market environment relative to monitoring consumer concerns for the benefit of the company. Managing the required operational changes serves a better chance for the firm to realize its goals, objectives, and business prospects (Sinha, 2007, p.153). 4. Conclusion Nature Foods Ltd is one among many operators in the food industry. The highlighted consumer concerns influence other players just as much as they influence the company. However, the action and reaction time might vary across the various operators in the industry. Investing in the most appropriate projects and undertaking business expansion for the purpose of consumer satisfaction is necessary. This is the primary reason why the company has to consider consumers’ concerns to go local, prefer low food mileage, and become more oriented to natural food ingredients as opposed to artificial ingredients. 5. Recommendations 5.1. Set up strategic plans to counter operational challenges highlighted in the findings. 5.2. Find alternative sources of raw food, not necessarily foreign supply. 5.3. The company needs to set up more production units and distribution channels in order to cut product transportation, thereby reducing food mileage. 5.4. Nature Foods should move swiftly to exploit emerging opportunities along the highlighted consumer concerns, tastes, and preferences. 5.5. The company should invest in the production of food products that use natural ingredients in a bid to secure a stable economic future. References Brennan, J. & Grandison, A. (2012). Food Processing Handbook, London: John Wiley & Sons. Coles, R. & Kirwan, M. (2011). Food and Beverage Packaging Technology, London: John Wiley & Sons. Fox, M. (2005). Competition Law and the Agenda for the WTO: Forging the Links of Competition and Trade, Pacific Rim Law and Policy Journal 4: 1. Howell, C. (2007). ‘Is there a Third Way for Industrial Relations’? British Journal of Industrial Relations, Vol. 42(1). Hutter, B. (2011). Managing Food Safety and Hygiene: Governance and Regulation as Risk Management, London: Edward Elgar Publishing. Jack, M. (2009). Securing food supplies up to 2050: the challenges faced by the UK, fourth report of session 2008-09, Vol. 2: Oral and written evidence, Volume 2, London: The Stationery Office. Mayer, T. (2004). The government budget constraint and standard macrotheory, Journal of Monetary Economics 13: 371-379. Sinha, N. (2007). Handbook of Food Products Manufacturing, 2 Volume Set, London: John Wiley & Sons. Read More