mitchell fruit farm ltd

5

Department of Business Administration GCU Faisalabad

Mitchell’s fruit farms limited

Group Members

M. Junaid Afzal M. Saeed Anjum Raheel Anjum Noman Ahmed M. zakria


Presented to:

Mr. Usman ZafarLecturer MBA

Specialization: Management

MBA420-

Principles Of Management


Contents

Our group talk consists of the following section

1. History and Introduction

2. Organization structure and standing

3. Import export

4. Achievements

5. SWOT analysis

6. Financial statement and profitability margin

7. Future plans of the company

8. Concluding remarks


History: Francis J. Mitchell arrived in Bombay from Scotland at

the end of World War I. He had been invited by his brother who was already established in North Western India as contractor to the government for construction of the railway network. At that time, an opportunity came to his way in the form of the emerging irrigation system being laid out in the canal colony districts of West Punjab. He was successful in obtaining the lease of 720 acres of agricultural land in the Montgomery (Later Sahiwal but now it is in Okara District premises) district. He initiated the business of growing grapes for eventual sale as dried raisins and sent his younger son Richard to Australia for training at Mildura which was well known as a center of specialization in the field of horticulture.The Company, with Francis Mitchell as its Governing Director and his two sons Leonard and Richard as Directors, was incorporated in 1933 and given the name Indian Mildura Fruit Farms Ltd


Introduction

Established in 1933 by Francis.J.Mitchel

The most recognizable breakfast and daily routine product of household

Increased productivity but maintained quality

Largest company of Pakistan and is leading all other markets brands


Location

The production facilities and factory offices are situated in the Renala khurd near district Okara. This place is about 115 kilometers far from the head office of the company in Lahore.This factory is lying in the vast area of about 10 acres. The farms of MITCHELL’S Fruit Farms Limited are also occur between Renala khurd and Okara. The distance between Renala and Okara district is round about 13 km. The farms of the company lying on the area of 450 acres.


Mission and Vision Vision

“To be competitive in the growing market as the quality managed company”

Mission To be a leader in the market we serve by providing quality products to

our consumers while learning from their feedback to set even higher standards.

To be a company that continuously enhances its superior technological skills to remain internationally competitive in this day and age of increasing challenges.

To be a company which optimally combines its people, technology, management systems, and market opportunities to achieve profitable growth while providing fair return to its shareholders.


Offices

Organization structure and standing


Board of directors

Advisor

Chairman

MD/CEO

ES AM CFO MM SCM

Financial structure

Factory structure

FUNCTION Drawing up the plans for the production

daily basis Recording of raw and paking material

Operating a proper reporting system Dispatch the goods Ensuring the proper maintains & care of

company vehicles.

Company Values

Innovation

Quality

Health


Supply chain manager

Supply Chain Manager Selection and continuous assessment of

the supplier Preparation and approval of documents

being used in supply chain section. To look after the all activities of supply

chain section To handle all imports

FUNCTION OF AM (SC): To procure services, raw &packing material spare parts of

high quality.

Forecast and plan for purchase of material with minimal blockage of company funds.

To lodge claims with insurance companies for the loss of materials

The explore and develop new source of supply for economy

Verification of receipt of material

Verification of clearing of bills

Approval and issuance of all documents being used in the supply chain.

Approval of purchase requisitions

Local Supplier of Mitchell’s

PACKAGES PVT LTD

PRINTECH

GLASS INDUSTRY

FLAVORS MAKER COMPANIES


Growth and Development

Best growing and processing facilities in one location

Have vast and modern machinery

The first food company of Pakistan to win ISO 9001 award


Institutional Clients

Pakistan International Airlines

Five Star Hotels (Pearl Continental, Awari etc)

Gymkhana Club


Kinds of jobs and personalitydimensions

Marketing department:

Marketing department of Mitchell's through some little variants.

Marketing and sales department, extrovert people are required.

Finance department:

Practically they need 50% relation between these dimensions and job position in the organization.

Personnel and administrative department

The head of personnel department is personnel manager.


Motivation Theory

Creativity and job performance

This relation is very strong because they have to seek new ideas and innovative.

Self monitoring and job performance

The behavior of people is different in different situations so as to make a match between the personality and the situation.

Self efficacy and job performance

The person who is high in self-efficacy is more confident.

Risk taking, self esteem and job performance

They are highly self centered.

They are more satisfied with their jobs.


Foreign Licence

Given proprietary rights by L. Rose and Company Ltd. of England in 1946 because of its dedication to quality and technical expertise.

Only Pakistani manufacturer and distributor of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.


Major Import of Mitchell’s

Following are the major countries from where Mitchell’s imports the material for the production of quality products. 1. Malaysia2. Singapore3. Indonesia4. England5. Philippine6. China7. Germany


Major exporting countries

Canada

Saudi Arabia

Afghanistan

Gulf States

UAE

Hong Kong

Singapore

USA and UK


Major Import Items

COCOA BUTTER

COCOA POWDER

HPK OIL (HYDROGENATED PALM KERNELS)

METAL CAPS

TINS

PLANT AND MACHINERY

PINEAPPLE CONCENTRATE

LEMON CONCENTRATE


Corporate Culture

The success of Mitchell's brands of the corporate emphasis.

The R and D section prepares new recipes and formulations.

QC section ensures selection of the finest fruits and error free processing and packaging.


Contributions

Cultural contributions

Contribution of family

Social contributions

Situation contribution


Communication Within the Company

Normally, the E-mail is used for the communication within the company. Mitchell’s has its own Email-based website.

The hard copies of these mails are filed for the future references.

Other modes of communication are telephone, courier service and fax.


Mitchell’s Achievements

INTERNATIONALLY WIN CONSUMER’S CONFIDENCE

AUTOMATION OF TOFFEE-MAKING PROCESS

MOLDED-LINE CHOCOLATES PLANT

ISO 9001 ACCREDITATION


Span of control

Strong relation between job performance and personality dimensions and attributes.

Focus of control and job performance

Internal believe: They think that they make their own fate so they work hard.

External believe: They are not hard working so they do not succeeded .

Emotional stability and job performance

Personnel, finance manager and executive are calm personality and their productivity is very high.


SWOT Analysis

Strengths

Still Pioneer

Strong Brand Name

Farm fresh image

More fruit content

Top of Mind Recall

Variety in Flavours

Weaknesses

Less Support of Promotions

Less Packaging Varieties

Limited Traget Market

Opportunities

Untapped Market Segments

Available Packaging options

New flavours can be introduced

Threats

Increased competition

Aggressive Advertisement of

Competitors

Increasing Market Share of Competitors


Strengths Oldest company of Pakistan.

ISO 9001 Award in 1998.

International recognition.

Own reputation in market.

Own growing and processing facilities at one location.

Single national company that has variety in flavors.

Molded chocolate (praline) is very popular in all over the world till 2001 no national company was producing molded chocolate in the country.


Weaknesses

Less support of Promotions.

Hardly advertising on the Media.

The management style that has adopted by the company is bureaucratic Degree of formalization and centralization is high.

Not serious in promoting its brands.

Don’t have any short term and long-term decision-making plan.

Decreasing growth rate and eventually losing market shares.

As we know that there is severe competition in the food industry, but still the availability of Mitchell’s products is very poor.

Company is offering fewer discounts as compare to other relevant industry’s companies like Shezan, National, Rafhan, Salman’s and Ahmed to retailers and distributors.


Opportunities Have an opportunity to target untapped market segments.

Creating new horizons for the food processing companies.

Increase the depths of its existing products categories.

The company may invest in new product categories.

Other very open opportunity for the company is that the company may invest in new product categories like mineral water, cheese, snakes and other dairy products.


Threats

Increased competition (shezan food ,national food,rafahan food etc.)

Politically Instability

Additional general sales taxes and tough economic conditions of the country are reducing the purchasing power of the people.

Increasing Market Share of Competitors.

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


Gross profit margin

Operating profit margin

Net profit margin

Return on investment

Return on equity

Earning per share


Analysis of Financial Statement and Profitability Margin

Gross profit Margin

The gross profit margin measures the percentage of each sales dollar remaining after the firm has paid for its goods.

The higher the gross profit margin, the better and the lower the relative cost of merchandise sold.

Mitchell's gross profit margin is 18.7%


Operating profit Margin

The operating profit margin measures the percentage of each sales dollar remaining after all costs and expenses other than interest and taxes are deducted.

It represents the pure profits earned on each sales dollar. A high operating profit margin is preferred.

Mitchell's operating profit margin is 8.5%.


Net profit Margin

The net profit margin measures the percentage of each sales dollar remaining after all costs and expenses, including interest and taxes, have been deducted.

The higher the firm’s net profit margin, the better. The net profit margin is commonly cited measure of the firm’s success with respect to earnings.

Mitchell's net profit margin is 4.64 %.


Earning per share

The firm’s earnings per share (EPS) are generally of interest to present or prospective stockholders and management.

The earnings per share represent the number of dollars earned on behalf of each outstanding share of common stock.

They are closely watched by the investing public and considered am important indicator of corporate success.

The EPS of Mitchell's is Rs. 7.52


Production Process There are two department of production process.

Grocery department

Confectionary department


Grocery department

Following item are produced in this department

Pickle

Milk Toffees

Ketchup

Jams

Squash

Juices


Confectionary department Following items are prepared in this department

Jubilee

Golden Heart

Top Milk

Luxury

Molded Chocolates (Praline)


Finished Goods Department

FG1FG2FG3FG4


Future Planning

COMPANY IS GOING TO INCREASE THE NUMBER OF AUTOMATIC MACHINARY

IN COMING YEARS THE COMPANY IS GIONG TO PURCHASE A MACHINARY FOR CONFECTIONARY PRODUCT

A STORE ROOM IS ALSO BUILD IN FACTORY FOR SAUCE PRODUCT

COMPANY IS ALSO INCREASING THE NUMBER OF EMPLOYEES


Suggestions

During our visit I observe that Mitchell’s squashes are available on almost every outlet in bulk quantity. But the availability of guava and pineapple flavor was not so good.

The display of Mitchell’s squashes was not so good versus its competitors.

The company can also expand its business in other product ranges like butter, cheese, mineral water, snacks etc.

The new brands of squashes that are pineapple and guava have not get excellent response from the customers just because of poor advertisement campaign. Proper advertisement was necessary to create awareness an interest for new brands.


Conclusion

Customer

Competition

Corporation

Mitchell’s is very much conscious and careful about its sales and about the customer level satisfaction.


THANKS

Any Remarks please!