AMCY5.

COM Home Projects Reports Presentations Letters Proposals Articles Upload Projects About Us Contact Us HRM IT OB Research ENT Economics

Finance

ct on Mitchell's Fruit Farms

iding Projects for your business growth and to meet new challenges. Here are some pared by our team of "Developing New Projects" for the Guarantee of your business growth

of Mitchell's fruit farms

s playing a vital role in the Pakistans economy. For the last two years, the company is he Top 25 Companies Award. Mitchells has been in the market long before independence oys a good repute. This is the evidence of the companys dedication, trust and commitment he best quality products in the market. Despite all the odds, Mitchells is still the Market quashes, Preserves, Sauces and Countlines.

-National and National Companies have entered the competition. Therefore, the quantitynce between the Mitchells and its close competitor has squeezed.

rowing and processing facilities are situated in Renala Khurd, Distt. Okara. The head office any is situated in Lahore for ensuring the effective distribution and marketing.

ENTS OF MITCHELLS FRUIT FARMS LIMITED

man Resource Department

mmercial Department

em Department

nce Department

uction Department

ning and Stores Department

hnical Services Department

ity Control Department

keting Department

UNITS OF MITCHELL'S

s operations of the Mitchell's can be divided into following strategic business units: MAJOR BUSINESSES GROCERIES BUSINESS CONFECTIONERIES BUSINESS CHOCOLATES BUSINESS

ES BUSINESS

he groceries business of Mitchell's fruit farms limited for further study and ODUCTS OF GROCERIES BUSINESS

business, the Mitchell's has many product lines and offering depths to its customers. The s of the product are given in the table along with their respective weights and prices. Weight 730 ml 730 ml 730 ml 730 ml BRANDS Lemon Squash Lemon Barley Mango Squash Orange Squash Prices Rs. Rs. 58 Rs.58 Rs.58 Rs 58

RODUCT LINE

UASHES

730 ml 730 ml 730 ml 730 ml 260 ml 730 ml 730 ml 730 ml 730 ml 730 ml

Mix Fruit Squash Guava Squash Lime Cordial Roses Lime Juice Cordial Lemon Juice Banana Syrup Pineapple Syrup Pomegranate Syrup Sandal Syrup Dilruba Syrup

Rs. 58 Rs. 58 Rs.70 Rs.70 Rs.40 Rs.65 Rs.65 Rs.65 Rs.65 Rs.65

450 gm 450 gm 450 gm 450 gm 450 gm 450 gm 450 gm 450 gm 450 gm

Apricot Jam Golden Apple Jam Mango Jam Mixed Fruit Jam Plum Jam Blackcurrant Jam Strawberry Jam Diet Golden Apple Jam Deit Golden Mist Marmalade

Rs.48 Rs.48 Rs.48 Rs.48 Rs.48 Rs.65 Rs.65 Rs.65 Rs.65

T PRESERVES

450 gm 450 gm

Diet Mixed Fruit Jam Diet Strawberry Jam

Rs.65 Rs.65

260 ml

Fruit Vinegar

Rs.18

NEGARS 710 ml Fruit Vinegar Rs.37

300 gm 825 gm 300 gm 825 gm 300 gm 300 gm 300 gm 825 gm 370 gm 450 gm 370 gm 340 gm

Tomato Ketchup Tomato Kethup Chili Garlic Sauce Chili Garlic Sauce Chili Ginger Sauce Chili Sauce Imlee Sauce Imlee Sauce Mexican Salsa Mango Chutney Cooking Paste Mango Kasaundi

Rs.32 Rs.63 Rs.35 Rs.69 Rs.35 Rs.33 Rs.35 Rs.69 Rs.29 Rs.38 Rs.42 Rs.42

CKLES

340 gm 340 gm 340 gm 340 gm 340 gm 340 gm 1 kg 1 kg

Mango Pickle Mixed Pickle Chili & Lime Pickle Lime Pickle Garlic Pickle Tomato Kasaundi Mango Pickle Mixed Pickle

Rs.35 Rs.35 Rs.35 Rs.35 Rs.45 Rs.30 Rs.75 Rs.75

ATEGIC INTENTION

petitive in the growing market as the quality managed company.

Leader in the markets we serve by providing quality products and efficient services to our while learning from their feedback to set even higher standards for our products.

Company that continuously enhances its superior technological competence to provide olutions and superior products as per requirement of the market place.

Company that attracts and retains outstanding people by creating a culture that fosters d innovation, promotes individual growth, and rewards initiative and performance.

Company which combines its people, technology, management systems, and market s to achieve profitable growth while providing fair returns to its investors.

Company that endeavors to set the highest standards in corporate ethics in serving society.

TE PHILOSOPHY

of Mitchells brands is the result of the corporate emphasis laid upon Quality Control y Research & Development. The R & D section prepares new recipes and formulations QC section ensures selection of the finest fruits and error free processing and packaging, g that all products live up to the consumers high expectations.

ource is also of the pivotal importance for the Management and employee skills are eing updated through training courses and study tours both at home and abroad.

POLICY

TCHELLS Fruit Farms Limited, are committed to produce best quality products meeting rs requirements at competitive prices, strengthening our position as a Quality Managed To meet this obligation, the company will continue: of employee skills by training.

on of new technology.

ation of its quality control and quality assurance systems.

Mitchell's FRUIT FARMS LIMITED

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

ve of the System Department of the company is to computerize the business operations of ELLS Fruit Farms Limited.

ective of the Finance Department is to arrange the finance for the business operations from ces, control the activities that are related with the finance, maintain and update the accounts.

objective of the Production Department is to produce quality goods at minimum cost by zing the companys resources in an efficient manner. nsure hygiene, and arrangements of all materials in stores and successful execution of rs. nsure that all the products, make by MITCHELLS Fruit Farms Limited are of standard ity by inspection and testing of incoming material, in-process and outgoing products.

rketing Department is responsible for planning and developing products and executing their ffordable price through promotional activities.

tement

the macro, there are few microenvironment problems. These include: long-term & short term planning.

nation of future goals. availability.

formal planning for the schedules of productions and for achieving the objectives of the Whenever any specific raw material is needed, the suppliers of the company are bound to red raw material within specified time. Sometimes, the production operation has to stop unavailability of raw material. But this happens rarely. In the most cases, the suppliers who alue to Mitchell's provide the raw materials in time. But commercial department has to roblems and confusions just because of this careless attitude of the production, planning & tment. They give very less time to suppliers and commercial department for procurement

me of problem is facing in the determination of future goals and objectives. This is the above mentioned problem. Because this problem is not only restricted to production, stores department, this is occupying the whole corporation.

ompare Mitchell's with its competitors, the product availability is very poor in case of oducts. Retailers have fewer profit margins in the Mitchell's. The promotional activities of re also poor than competitors. So availability of products is a dilemma for the company.

N ANALYSIS

LYSIS

sis is used to assess what environmental factors are affecting the organization, which of ost important and how they will effect in next years. It is an indicator of political, social and technological influences on organization. The analysis of Mitchells is as

L AND LEGAL FACTORS

aws

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

de

s very much important for the Mitchell's fruit farms limited. It is because the Mitchells is many raw material items from different countries of the world. These items include cocoa oa butter, lecithin, tin, aluminum foil, pectin, metal caps, lemon concentrate, hydrogenated s and pineapple concentrate. The major importing countries are Philippine, Germany, nesia and Malaysia. Most of the foreign suppliers are working with Mitchell's from last And there are collaborative relationships between Mitchell's and foreign suppliers.

ment doesnt provide any support to import these raw materials and any relaxation in upon the imported raw materials. So if Government bring any change in its foreign policy, be very much important to cope with that.

ntal Protection Laws

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

licy

l's fruit farms is a public limited company. The company is paying all sorts of taxes that he Mitchell's. As the honesty is the dominant value of the company, all the payments to are made fairly and honestly.

t and Government Stability

t is not a matter of high concern for the organization because it is already following all the But recently the Government increases the wages of the employees but Mitchell's has not that, because the minimum wage limit in Mitchell's is Rs. 3000 that is high from the age limit of the government of Pakistan..

actors

many of economic factors some are more important for Mitchells; the detail of these following:

es

s increase and decrease has significant impact upon the financial performance of the because the company has take loans from the banks. It is also noticeable that the company ng term loans from the banks on the regular basis. So, if in the future the interest rates will be unfavorable for the Mitchell's. But such increase is not expected in near future.

run, the effects of inflation are minimal on the performance of the Mitchell's. But if we take perspective the inflation in the country will increase the cost of production, which will sale price. And at high sale price the product will become in-competitive in the l market as the company is involved in the export. So the pan of export will be adversely the inflation.

Income

country the demand will be affected if the disposable income will be reduced. There are lot tutes of the groceries products of the company. But other than its direct use, these are also ery and confectionery items and so many other foods whose demand is dependent on So any decrease in disposable income of the consumers will also be affecting Mitchell's negatively.

ral factors

al factors like demographics; income distribution, life style etc. can also affect the different ways. Lets see which of them are more concerned to Mitchell's fruit farms

hanges

ption of jams, jellies, marmalades, squashes, sauces, pickles and squashes is very much the life styles of people. Now people, all around the world, are becoming more and more cious. They are well aware that a high consumption of heavy foods will increase the which leads to heart disease. That is why, a significant change in the consumption of foods erved in last many months. As the growth rate of fast food industry is spectacular in the at is most favorable for the Mitchell's. it is because more consumption of fast foods will demand of Mitchell's products.

ucation

ucation is directly related with awareness and health consciousness. In countries where te is high the people more like the nutritious products. In Pakistan, as well as in foreign rate of literary is increasing which will effect the organization positively. High level of lead to high level of nutritious products consumption and people started switch towards that are more favorable for their health and fitness.

cal Factors

in food industry is very important for the maximum output, product standardization and ocess of production. The technological factors, which are more concerned with Mitchells, :

t Spending on Research

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

veries and Developments

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

RAL ANALYSIS

nalysis concerned with broad aspects of the environment while there is always a set of uences, which are more immediate, and directly affecting the organization. The structural ws on Five Forces approach prepared by Porter. It is a structured mean of assessing the environment.

ew Entrance

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

ower

ations have to obtain resources and provide goods or services. The suppliers can affects on edom of an organization and can influence the margins of that organization. In Mitchell's there are two types of suppliers. One is a local supplier, and others are foreign suppliers. uate the power of suppliers with the help of following important points that cannot be

as the foreign suppliers are concerned they have power of bargain because the material is e locally and the buyer dont have any option other than import, so the supplier charge the and transaction is done through banks by opening letter of credit and buyer also has to bear ortation cost and import duties.

as the local suppliers are concerned they have small fruit farms. Food companies are al intensive so they dont have any power because they cant do forward integration.

re large numbers of fruit, vegetables, sugar and other raw material suppliers so the buyer uality of suppliers products and make contract with any one which meet their s regarding quality as well as price.

reason of no influence of the suppliers over the Mitchell's is that the company itself arge amount of fruit, vegetables, milk and butter. The in this way, backward integration power and influence of suppliers of the raw material.

l's has very good repute in the market since from the 1933. another fact is that Mitchell's is giant in its industry, so every supplier want to work with the Mitchell's.

wer

dont have any power, because the prices of the products are fix, but high competition companies leads the company to face problems in the price competitiveness.

e Rivalry

ns will also be concerned with the extent of rivalry between themselves and competitors. of competitive rivalry depends upon the nature of four forces described earlier. It could be rom previous discussion that the food market is highly competitive. And the degree of in the industry is increasing day by day.

HAIN ANALYSIS

analysis is widely used to determine where cost improvements could be made or value proved. This process involves the analysis of all the activities starting from the raw visions to the distribution of final product. That is why it is necessary to understand the ocedure of production and distribution.

ATION VALUE CHAIN

tivities are broadly categorized into two main heads, which are Primary activities and vities.

ivities

y activities of the organization are grouped into five main areas: inbound logistics, outbound logistics, marketing and sales & services.

istics

ables, sugar, packing material and other raw material items like chemicals, salts milk and rm the inbound activity in Mitchell's. This activity should be efficient in order to increase e by obtaining good quality raw material. So in order to ensure the high quality of raw lowing measures are taken by the Mitchell's.

company has its own orchards, animal farms for the acquisition of high quality fruit, tables, milk and butter. e is a well-equipped lab for testing the quality of raw material, packing materials and other micals that are used in the production process. Before storing the raw material, the approval uality control department is essential. ase of 30% of damaged fruit and vegetables, the quality control department of Mitchell's pproved the material and the commercial department refused to accept the raw material. e is an approved list of suppliers from the quality control department. The commercial rtment is bound to procure the raw material from only the listed suppliers of the company. list is made after assessing and evaluation of many factors of the suppliers like their ket repute, capacity of production, quality of raw material and their past performance in the ket. uent visits are also made to the production facilities of the suppliers by the executives of mercial and quality control department for the inspection of the quality and other related iderations.

ons are the production process of groceries where the major value addition is made. For production process of the products according to the international quality standards, the ke the following steps.

he production process from transferring the juices and raw material to production hall from e stores to the packing of the products is completely automatic. The Mitchell's invest huge unts of profits for serving this purpose every year. Mitchell's was the first company who achieve such high level of automation in its relevant stry. The company is serving the industry as the trend setter. ng the production process, the well trained lab technicians inspect the production process its quality before the packaging of the final products. n after the packaging, the few items of the lot bring into the quality control department for er inspection of quality in the labs of the department. items are preserved even after the approval of its quality, to check its shelf life and use as ence in case of any complaint from distributors or customers. r ensuring all sorts of considerations, a written permission is given to stores & planning rtment from quality control department to float the products in the market.

ogistics

ment subcontracts the outbound activity, and the distribution is through dealers. The the Mitchell's directly supply to the distributors of the company. But the supply of s also take place by the regional sales offices of the Mitchell's. They also serve as the of the company.

& sales

arketing and sales is concern, there is an export and marketing department, who control and

e activities of regional sales offices of the company that are situated in Lahore, Islamabad . These regional sales offices are responsible for effective distribution of the products of y. The marketing department is responsible for the marketing and promotion of new and ducts of the company.

of the products not requires any significant level of services for the customers. However, rmal system for taking corrective actions upon the complaints of the customers. Proper given to the customers who have any complaint regarding the quality of the Mitchell's

ivities

activities can be divided into four groups, which are procurement, technology t, human resource management and infrastructure.

e inputs of fruit, vegetables, sugar are available locally and some material has to import . So procurement for long time is not possible in case of raw material, which is locally Where as the material that has to be import the company has a lead-time of 2-3 months. So g and stores department is sufficiently performing the activity of procurement with the n of commercial department. development

rocess development researches are very important in food groceries industry in Pakistan. mpany value chain, this thing should be emphasized much, rather it has a big contribution e addition. The Mitchell's working on the technology development on continuous basis. vance and automation of the plant and machinery is the top priority of the Mitchell's fruit d.

urces management

urce management involves the training and development of workers and employees in ease their productivity and efficiency. For this purpose company make their employees to he senior worker to get the experience, apart from this on-the job training, they have ning program for new employees. The company has good planning, quality control systems rientation, which although does contribute directly in value addition and increase the s of whole process.

ny has a strong distribution system in the Pakistan. The Mitchell's has more than 270 in the country for ensuring the product availability and supportive promotion activities.

the strong distribution system, the entire necessary infrastructure is available to the Mitchell's is the only one food processing company in the Pakistan who has all the acilities at single location. This include from orchards to the warehouses of the finished

e creation does not happen in the organization itself rather much of it can be occur in the distribution chains. So the whole process needs to be analyzed. For this purpose we can o three areas: suppliers, organization and channel members.

ay a very vital role in total value creation. The whole of the profitability depends upon the w material; if supplier does not provide the good quality of raw material, then the desired lity of products cannot be achieved. The price structure of the country de-motivates the oduce better quality of fruit, vegetables, sugar cane and other raw material items. But good with the suppliers, fair and prompt payment can enforce the grower to cultivate better s exercising by the Mitchell's already.

organization the value addition activity is focused on groceries production, which is their ence. In order to provide the superior quality of groceries to customers, total quality t system is practicing by the Mitchell's. Although in the production of the products, ole is spectacular in its industry. But when we talk about the market development and nd promotional activities of the Mitchells, we will come to know that this particular area is nd the other market players. Without the marketing support Mitchell's cannot achieve its bjectives successfully.

mbers

uit farms limited has strong footing in the market because of its quality products and good company is full aware about this strong point, and the people of Mitchells are getting m this strength. The customers of the Mitchell's are loyal with the company and make such products that are labeled Mitchell's. There is strong distribution channel in the is the strength of the company. The company also directly deals with the large customers FC, PIZZA HUT, MCDONALDS, HOLIDAY INN, and many other prestigious of the country. Apart from these institutions, Mitchell's deals with the large retailers itself HKB stores, UTILITY STORES, CANTEEN DEPARTMENTAL STORES, SHEZAN nd so on. So in this way we can say that company targeting its customers not only by the but also go directly to retailers and other institutions for creating value for the business f the Mitchell's. Network

Factory
Distributors

Retailers
Final Consumers

OT Analysis

HS

hells fruit farms limited is the oldest food processing company of Pakistan. The company incorporated in 1933. This is a distinctive feature of the company because all other foodessing companies start their operations at least after the independence of Pakistan. 998, Mitchells achieve another destination: ISO 9001 certification, and at no better time

the successful completion of sixty-five years of bringing quality products to the umers. It is a matter of human pride that the Mitchells has become the first food company akistan to achieve this prestigious distinction. ay, in Pakistan, Mitchells is the only major company with fully- integrated operations ng its own growing and processing facilities at one location. Modern, high-volume strial equipment, professional management and a trained workforce ensure that Mitchells ntained its lead. 983, Mitchells golden jubilee was celebrated with great funfair. A chocolate bar, opriately named jubilee, was launched to commemorate the event. Mitchells is the eer in Pakistan for chocolate production. ded chocolate (praline) is very popular in all over the world but till 2001 no national pany was producing molded chocolate in the country. So Mitchells launched molded olate with the successful commissioning of a molded line in 2001. process of toffee making was automated in 2000 with PLC-based machines/systems, to re uniform quality of products. Mitchells is the first national company that takes this step. s, the modernization of operation has always been top priority with Mitchells. hells is the single national company that has so large product mix.

SES

nagement style that has adopted by the company is bureaucratic. Degree of formalization zation is high.

motion mix of the company and advertisement programs is not very good. It is justifiable ompany is not so much serious in promoting its brands. The company only enjoying the of the brand name Mitchells.

lack of short term and long-term decision-making regarding production schedules, decisions and marketing programs.

now that there is severe competition in the food industry, but still the availability of roducts is very poor.

ny is offering fewer discounts as compare to other relevant industrys companies like ional, Rafhan, Salmans and Ahmed to retailers and distributors.

NITIES

easing proportion of working women, school going children and office going men increase ize of target market of the food industry. These factors cause growing demand of jams, es, marmalades, sugar free products and caned vegetables and juices open a wide window pportunities for MITCHELLS Fruit Farms Limited. he rural populations of the country tend to migrate to cities for multiple purposes, for this d enhanced the market size for the food processing companies. It is also an opportunity for MITCHELLS Fruit Farms Limited to avail this opportunity and get benefits from this wing market.

w people are much conscious about their health and fitness as before the past. They have ency to use the foods that are nutritious and best for their health. So this market trend is creating new horizons for the food processing companies. fact that the market size of fast foods and snacks remarkably. As the many products are the plimentary for these kinds of fast food and snacks item. This thing is growing the demand mato ketchup, sauces and preserves. e is an opportunity for the company to increase the depths of its existing products gories. For example, company may introduce the squashes, sauces and tomato ketchup in e packaging like in buckets as this strategy has adopted by other competitors of the pany. The company may introduce the pet bottle of 1.50 ml like Jam-E-Sheren and Rooh a. It will expand the target market of MITCHELLS Fruit Farms Limited. er very open opportunity for the company is that the company may invest in new product gories like mineral water, cheese, snakes and other dairy products.

competition in the food processing industry is much severe than the past. Now the many onal companies are joining hands with multi-national corporations for additional support in s of marketing activities, production expertise and financial resources.

nalysis OF FINANCIAL STATEMENTS

sing the financial position of any organizations (in evaluating the internal resources) one ery careful about the figures because mostly the organization based on its financial structure t effective and efficient allocation of money to different needs. Best technique in this ratio analysis, which without many complexities provides as an increase look of the or the assessment of the financial resources of the Mitchell's we also use the ratio analysis et a clear vision with simple interpretation. For this purpose we can analysis the financial ollowing ways:

ALYZING LIQUIDITY ALYZING DEBT ALYZING ACTIVITY ALYZING PROFITABILITY

NG LIQUIDITY

y of a business firm is measured by its ability to satisfy its short-term obligations as they iquidity refers to the solvency of the firms overall financial position__ the ease with pay its bills. The three basic measures of liquidity are (1) net working capital, (2) the , and (3) quick ratio.

g Capital

g capital, although not actually a ratio, is commonly used to measure a firms overall his requirement is intended to force the firm to maintain sufficient operating liquidity and tect the creditor. Mitchell's show a sufficient amount of working capital that is Rs.

io

tio of 2.0 is occasionally cited as acceptable, but a values acceptability depends on the which the firm operates. A current ratio of 1.0 would be considered acceptable for a utility e unacceptable for a manufacturing firm. The more predictable a firms cash flows, the ceptable current ratio. Mitchell's current ratio is 1.69 that is quite acceptable.

atio is similar to the current ratio except that it excludes inventory, which is generally the current asset. Quick ratio is an extended version of current ratio in which only very quick h can be quickly liquidated) are considered. A rule of thumb is that figure of 1.00 or more indicates a good financial position of the company. The Mitchell's has its quick ratio is

NG ACTIVITY

os are used to measure the speed with which various accounts are converted into sales or egard to current accounts, measures of liquidity are generally inadequate. The three basic activity are (1) Inventory turnover, (2) fixed assets turnover, and (3) total asset turnover.

urnover

rnover commonly measure the activity, or liquidity, of a firms inventory. An inventory 20.0 would not be unusual for a grocery store, whereas a common inventory turnover for a er would be 4.0. Mitchell's inventory turnover is 5.46, this figure is excellent for a er firms. Turnover

set turnover measures the efficiency, with which the firm has been using its fixed, or ets to generate sales. Generally, higher fixed asset turnovers are preferred, because they er efficiency of fixed asset utilization. Mitchell's fixed assets turnover is 6.60; this means y turns over its net fixed assets 6.60 times a year.

s Turnover

turnover indicates the efficiency with which the firm uses all its assets to generate sales. he higher a firms total asset turnover, the more efficiently its assets have been used. This probably of greatest interest to management, because it indicates whether the firms ave been financially efficient. Mitchell's turns its asset over is 2.30 in a year.

NG DEBT

sition of a firm indicates the amount of other peoples money being used in attempting to ofits. In general, the financial analyst is most concerned with long-term benefits, because it the firm to paying interest over the long rum as well as eventually repaying the borrowed. Because the creditors claims must be satisfied before, the distribution of earnings ders. The two basic measures of debt are (1) Debt ratio, and (2) debt-equity ratio

io measures the proportion of total assets financed by the firms creditors. The higher this eater the amount of other peoples money being used in an attempt to generate profits. ebt ratio is 0.39. Ratio

uity ratio indicates the relationship between the long-term funds provided by creditors and ded by the firms owners. It is commonly used to measure the degree of financial leverage Mitchells debt equity ratio is 0.12.

NG PROFITABILITY

any measures of profitability. Each related the return of the firm to its sales, assets, equity, ue. As a group, these measures allow the analyst to evaluate the firms earnings with given level of sales a certain level of assets, the owners investment, or share value. With firm could not attract outside capital. The three basic measures of profitability are (1) gross n, (2) operating profit margin, (3) net profit margin, (4) return on investment, (5) return on (6) earning per share. Margin

rofit margin measures the percentage of each sales dollar remaining after the firm has paid s. The higher the gross profit margin, the better and the lower the relative cost of e sold. Mitchell's gross profit margin is 18.7%.

rofit Margin

ng profit margin measures the percentage of each sales dollar remaining after all costs and her than interest and taxes are deducted. It represents the pure profits earned on each sales gh operating profit margin is preferred. Mitchell's operating profit margin is 8.5%.

Margin

it margin measures the percentage of each sales dollar remaining after all costs and cluding interest and taxes, have been deducted. The higher the firms net profit margin, the net profit margin is commonly cited measure of the firms success with respect to earnings.

et profit margin is 4.64 %.

nvestment

nvestment (ROI) measures the overall effectiveness of management in generating profits lable assets. The higher the firms return on investment, the better. Mitchell's ROI is10.6% in the industry.

quity

n equity (ROE) measures the return earned on the owners (both preferred and common s) investment in the firm. Generally, the higher this return, the better off is the owner. OE is 17%. Share

arnings per share (EPS) are generally of interest to present or prospective stockholders and t. The earnings per share represent the number of dollars earned on behalf of each share of common stock. They are closely watched by the investing public and considered nt indicator of corporate success. The EPS of Mitchell's is Rs. 7.52.

TRATEGIES

TE LEVEL STRATEGIES

evel strategy focuses on strategies for corporation consisting of more than one business. uit farms limited, for instance, comprise several businesses, including groceries, ries and chocolates business. Mitchells involve more than one business is said to be

ensees on of its dedication to quality and technical expertise, Mitchells was also given proprietary Rose and Company Ltd. of England in 1946 to become the sole manufacturer and f their world famous Roses brand of Lime Juice Cordial and Lime Marmalade in Pakistan istan. Diversification

w, but related products or services.

nvolved in concentric diversification because it has three related businesses that are onfectioneries and chocolates. The raw material, production process, required expertises are ame. Further more the product lines like squashes, syrups, pickles, jams, jellies, , sauces, diet preserves, vinegars, candies and chocolates are the product lines that are ed in context of many business aspects. So we can say that Mitchell's is exercising the iversification.

ntegration

wnership or increased control of a firms suppliers.

uit farms limited is acting on the concept of backward integration. Mitchell's has its own d dairy farms for the smooth flow of raw material that is used in the production of roducts. 450 acres of land is used for cultivation of raw material.

ruits requirements are being fulfilled by Mitchells own agriculture land. Lemon Grape Fruit Sevlik Orange Tomato Garlic 100% 30% 30% 100% 100%

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

ete directly with one another at what is called the business level of strategic management, ocus on crafting successful competitive strategies. Because competition takes place at the el, strategic management at this level is crucial to the overall success of the corporation.

on

y look at the operations of Mitchell's fruit farms limited, we will come to know that the is practicing the differentiation strategy. Mitchell's has more than fifteen product lines and uct mix of more than 90 products. The product mix of Mitchell's is the largest one in its ndustry. This fact reveals that Mitchell's is exercising the strategy of product mix on. Mitchell's is charging 7 to 8 percent higher prices of their products as compare to their . Because they consider their products superior as compare to remaining ones.

ocus

product differentiation Mitchell's is also implementing customer focus strategy. The process of research and development, product differentiation, marketing research and

al innovation make this possible for Mitchells to introduce more than four products in a s a clearer indicator of customer focus that is being implemented by the corporation. The ustomer is loyal to the company and he wants to purchase the brand MITCHELL'S. So it is or the company to introduce not only innovative products but also gives quick response to s.

N LEVEL STRATEGY

evel strategy focuses at how to develop capabilities in process execution that will yield advantages for a firm. This involves applying strategic management concepts to what is e operations level, the level at which work inside the organization actually takes place. We w organizations go about improving their process capabilities, including both total quality t and core process reengineering.

velopment

creased sales by improving or modifying present products or services.

ny is focusing on product development not on market development. It may be considered as weakness. Strength in this way that company is giving full priority to satisfy the wants of tomers. But it might also be termed as weakness of the company because it is keeping the t remained untouched.

ENDed strategies AND IMPLIMENTATION

that the food processing industry of Pakistan is one of the most rapidly growing industry of Many new markets players have entered to acquire their share in the market. Although the onditions of the country are poorer but the quality of life is towards improvement. This nt also leaves favorable impact on the tastes of people. Once there was a time when only as running its business in the Pakistan in its relevant industry. Now Mitchell's is facing from many national and multinational food companies in the country. Many national are joining hands with multinationals for strong footing, financial support and other fessional expertise. Mitchells now is facing many problems in todays world of business. ing swerve consequences we recommend following strategies to Mitchell's.

D INTEGRATION

wnership or increased control over distributors or retailers.

ntegration we not suggest to Mitchell's to gain ownership of distribution system but it is hour to increase control over distributors as well as retailers. The major de-motivator for distributor is fewer profit margins to them. Mitchell's is the company that is offering rofit margin to its distributors and retailers. It converts the interests and priorities of channel member to other market players. When the prices of products are high

ly to competitors it will be necessary for the producer to give attractive margin to and sellers and retailers so that they promote companys products effectively. The increase motion will also enhance the control of company over its distributors and retailers.

ocus

ny is not offering its products in the various packages. For example the competitors of ke Shezan, Rafhan, Qurshi, Humdard and Galaxy are offering their products like preserves, d sauces in buckets but this area is ignoring by the Mitchell's. It will be good for the offer its products in more different weightings. It will not only increase the sales of the t also helpful for market development.

suggested that company should introduce more flavors of squashes like plum and peach. squashes and syrups must also be introduced in 1.5 litre and 500 ml packages like Rooh a and Jame Shereen. also recommended by us to Mitchell's that to be competitive in the market, the company ld also preserves like jams, jellies, marmalades and ketchups, sauces in more economy s for the customers.

elopment

g present products or services into new geographic areas.

, the Mitchell's fruit farms limited is utilizing its 70 % of total capacity. So there is need to lopment. More markets will help company to utilize its full capacity but also increase the and competitiveness of company.

an explore new markets not only in the country but also in the abroad.

the company exporting its products to Middle East, Canada, Gulf, Saudi Arabia, U.S.A an countries. But in these countries, still need of market development is exist.

e are many cities in the country, where the product availability of the Mitchell's is very even in big cities there are many areas in which the company distributors have not access. ny should ensure and improve its products availability.

DIVERSIFICATIN

an diversify its businesses in other related areas of operations. The main reason of going to fication is that the company has good repute and vast experience of food processing e customers of the company have brand loyalty and ask for Mitchell's products to retailers. f diversification will facilitate the company to remain prominent in the market and milk its

mmend that Mitchell's must go for the business of butter, cheese, mineral water and snacks be related diversification for the company.

EMENT

w months, the Mitchell's is not advertising its products on the electronic media. It is e sales of the company very severely. The main area of focus is trade promotion that is not ough market conditions and competition.

sumer and trade promotion

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

door advertisement like its main competitors. Significant increase in the number of sign MT boards and banners on the public places will increase the product awareness and interest mers.

L'S CORPOPRATE LANGUAGE

mentation and written communication of Mitchell's is in English language. However, munication may be in Urdu, particularly the executives of the company speak Urdu or h the workers as per workers convenience. But it is the restriction of the company to deal ple in the Urdu and in case of foreign people; mode of communication should be English. ment executives are trained by the Mitchell's to negotiate with foreigners in the English

SLOGANS OF MITCHELL'S

ree in-house slogans that are permanent in nature. Apart from these slogans, one slogan is ogan of the month.

anent slogans are as following:

with customer love with company omer happy, company prospers. omers help us grow.

AN FOR THE TARGET MARKET

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

he New Generations a Fresh Start...

ur Orchards to Your Table

TE VALUES OF MITCHELLS

ES AS COMPANYS ASSET

ional management and skilled labor force is considered as the asset of the company; so LS Fruit Farms Limited take it very serious for the betterment of employees skills and he company sent the management people in the foreign countries for attending various orkshop and refresher courses.

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

MENT CRITERIA

practice is done after particular period of time in the MITCHELLS Fruit Farms Limited. actically see the recruitment process in the company, we will come to know that the top ven to those candidates who have the experience in relevant job and strong internal

ONS

l's fruit farms limited provide an attractive career path to their employees. The promotions oyees are base on their performance as well as experience. Both are considered by the urce department. The Mitchell's take care of their employees and serve their career goals in manner.

G ORGANIZATION

a learning organization. The company tries to utilize the capabilities, skills and knowledge e at maximum. For this purpose, employees work in the form of teams for the completion of ects. Top management encourages risk-taking among the employees. In return, there is an olerance on mistakes in the Mitchell's management.

ON

of the Mitchell's is to provide the innovative products to the markets where the company nnovation in product mix has much importance in the company. It is required by the top t to introduce three or four new products every year. For this purpose, R&D work roughout the year. Ideas are collected from the Mitchell's people, then after initial hese ideas are referred to product design panel, who work on these ideas for producing final

OGICAL ADVANCEMENT

ny positions itself at top and consider best in the technology. For remain best in technology, y following the strategy that Mitchell's will invest 15% of its profits on the advancement of

This amount is more than Rs. 200 million every year. This advancement is done for ore product standardization, maximum output and hygienic process of production.

TATION OF TQM

as the first company in the respective industry that get ISO 9001 certification in 1998. the trend setter in its industry. Mitchell's believes on quality. The company implements the on from product design to provide the products in the hand of ultimate consumers. During sses quality is managed as the top priority. Mitchell's makes its image as the quality mpany. All the measures regarding TQM that are possible in the present environment of are possible has been taken by the Mitchells.

mportant value that is promoted within the company is honesty. It is required from the of the Mitchell's that they not only deal with their colleagues with honesty but also deal rs and customers of the company honestly. One classic example of the Mitchell's t to honesty is their products. According to the rules of the government, there should be pulp in jams, jellies, marmalades, ketchups and sauces. But the food companies not careful estriction except Mitchells.

& SERVICES

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

ONS ABOUT MITCHELL'S CULTURE

people at Mitchell's are quite satisfied in the company. They considered their job enging and attractive for theirself. company is promoting the values like punctuality, hardworking, participation and honesty. hese values have strong support from the top management of Mitchell's. Even the top utives like chairman, managing director and executive director of Mitchell's come in office me even before time, they follow the rules and regulations of the Mitchell's like there is iction on the employees of the company to attach their companys identity card at the front eir dress. So this rule is for all even for the owners and director of the Mitchell's. the matter of immense pleasure for the employees to be the part of Mitchells. They feel d to be the part of oldest and best food company of the country.

y are committed to their jobs and enjoying sound monetary and non- monetary benefits the Mitchell's. The turnover rate in the Mitchell's is near about nil. This shows the loyees loyalty that they have with Mitchell's. my viewpoint about the Mitchell's culture is that they have very different culture that I rved in other national companies. They have strong culture that provide supportive king environment to their employees, take care of their participants and all the employees king in the relation-bond culture. he employees have written duties and responsibilities. However, sometimes for the sake of otation, they have to work on some additional assignments but in the form of teams not on ndividual level. hority has defined broadly in the Mitchell's. Mission statement, quality policy, goals, ctives and short term planning is demonstrated and communicated among the employees to ver the company. Apart from these facts, the past performance of the company is also onstrated with the help of various instruments at many times in the Mitchell's.

ES FORMAL IMPRESSIONS

ording to employees, they are happy with the Mitchell's fruit farms and they are enjoying aborative relationships with the management of the Mitchell's. r jobs are challenging to them and not feel any sort of job boredom. e are good working environment in the Mitchell's and they are free to participate in the ers of the company. The employees work without any pressure and fear. y have formal as well as informal relationships with their colleagues. behavior of management is friendly with the employees of the company.

ES GRAPEVINE IMPRESSIONS

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

MENT STYLE OF MITCHELL'S

borate the management style of any organization on the following grounds.

ng

zing

ling the management style of Mitchell's on the basis of above mentioned points.

t with a few deal of participation.

aking is transferring to decentralization from centralization.

shared. broadly defined in the Mitchell's.

elected on the basis of performance criteria. But sometimes, internal references are also ruitment.

n few functional areas.

ractice participative leadership, but not much extent.

tion flow is top-down and bottom-up.

exercise some deal of self-control in the Mitchell's.

ultiple criteria.

ut Us acy Policy map tact Us