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5 Department of Business Administration GCU Faisalabad

Saeed speacial on mitchells fruit farm ltd

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Page 1: Saeed speacial on mitchells fruit farm ltd

5

Department of Business Administration

GCU Faisalabad

Page 2: Saeed speacial on mitchells fruit farm ltd

Mitchell’s fruit farms limited

Group Members

M. Junaid Afzal

M. Saeed Anjum

Raheel Anjum

Noman Ahmed

M. zakria

Department of Business Administration

GCU Faisalabad

Page 3: Saeed speacial on mitchells fruit farm ltd

Presented by

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Presented to:

Mr. Usman Zafar

Lecturer MBA

Specialization: Management

MBA420-Principles Of Management

Department of Business Administration

GCU Faisalabad

Page 5: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 6: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 7: Saeed speacial on mitchells fruit farm 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

Department of Business Administration

GCU Faisalabad

Page 8: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 9: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 10: Saeed speacial on mitchells fruit farm ltd

Offices

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Organization structure and standing

Department of Business Administration

GCU Faisalabad

Board of directors

Advisor

Chairman

MD/CEO

ES AM CFO MM SCM

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Financial structure

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Factory structure

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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.

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Company Values

Innovation

Quality

Health

Department of Business Administration

GCU Faisalabad

Page 16: Saeed speacial on mitchells fruit farm ltd

Supply chain manager

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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

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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

Page 19: Saeed speacial on mitchells fruit farm ltd

Local Supplier of Mitchell’s

PACKAGES PVT LTD

PRINTECH

GLASS INDUSTRY

FLAVORS MAKER COMPANIES

Department of Business Administration

GCU Faisalabad

Page 20: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 21: Saeed speacial on mitchells fruit farm ltd

Institutional Clients

Pakistan International Airlines

Five Star Hotels (Pearl Continental, Awari etc)

Gymkhana Club

Department of Business Administration

GCU Faisalabad

Page 22: Saeed speacial on mitchells fruit farm ltd

Kinds of jobs and personality

dimensions

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.

Department of Business Administration

GCU Faisalabad

Page 23: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 24: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 25: Saeed speacial on mitchells fruit farm ltd

Major Import of Mitchell’s

Following are the major countries from where Mitchell’simports the material for the production of quality products.

1. Malaysia2. Singapore3. Indonesia4. England5. Philippine6. China7. Germany

Department of Business Administration

GCU Faisalabad

Page 26: Saeed speacial on mitchells fruit farm ltd

Major exporting countries

Canada

Saudi Arabia

Afghanistan

Gulf States

UAE

Hong Kong

Singapore

USA and UK

Department of Business Administration

GCU Faisalabad

Page 27: Saeed speacial on mitchells fruit farm ltd

Major Import Items

COCOA BUTTER

COCOA POWDER

HPK OIL (HYDROGENATED PALM KERNELS)

METAL CAPS

TINS

PLANT AND MACHINERY

PINEAPPLE CONCENTRATE

LEMON CONCENTRATE

Department of Business Administration

GCU Faisalabad

Page 28: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 29: Saeed speacial on mitchells fruit farm ltd

Contributions

Cultural contributions

Contribution of family

Social contributions

Situation contribution

Department of Business Administration

GCU Faisalabad

Page 30: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 31: Saeed speacial on mitchells fruit farm ltd

Mitchell’s Achievements

INTERNATIONALLY WIN CONSUMER’S CONFIDENCE

AUTOMATION OF TOFFEE-MAKING PROCESS

MOLDED-LINE CHOCOLATES PLANT

ISO 9001 ACCREDITATION

Department of Business Administration

GCU Faisalabad

Page 32: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 33: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 34: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 35: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 36: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 37: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 38: Saeed speacial on mitchells fruit farm ltd

Gross profit margin

Operating profit margin

Net profit margin

Return on investment

Return on equity

Earning per share

Department of Business Administration

GCU Faisalabad

Analysis of Financial Statement and

Profitability Margin

Page 39: Saeed speacial on mitchells fruit farm ltd

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%

Department of Business Administration

GCU Faisalabad

Page 40: Saeed speacial on mitchells fruit farm ltd

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%.

Department of Business Administration

GCU Faisalabad

Page 41: Saeed speacial on mitchells fruit farm ltd

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 %.

Department of Business Administration

GCU Faisalabad

Page 42: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 43: Saeed speacial on mitchells fruit farm ltd

Production Process There are two department of production process.

Grocery department

Confectionary department

Department of Business Administration

GCU Faisalabad

Page 44: Saeed speacial on mitchells fruit farm ltd

Grocery department

Following item are produced in this department

Pickle

Milk Toffees

Ketchup

Jams

Squash

Juices

Department of Business Administration

GCU Faisalabad

Page 45: Saeed speacial on mitchells fruit farm ltd

Confectionary department Following items are prepared in this department

Jubilee

Golden Heart

Top Milk

Luxury

Molded Chocolates (Praline)

Department of Business Administration

GCU Faisalabad

Page 46: Saeed speacial on mitchells fruit farm ltd

Finished Goods Department

Department of Business Administration

GCU Faisalabad

Page 47: Saeed speacial on mitchells fruit farm ltd

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

Department of Business Administration

GCU Faisalabad

Page 48: Saeed speacial on mitchells fruit farm ltd

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.

Department of Business Administration

GCU Faisalabad

Page 49: Saeed speacial on mitchells fruit farm ltd

Conclusion

Customer

Competition

Corporation

Mitchell’s is very much conscious and

careful about its sales and about the

customer level satisfaction.

Department of Business Administration

GCU Faisalabad

Page 50: Saeed speacial on mitchells fruit farm ltd

THANKS

Any Remarks please!