Mitchell's Fruit Foods Limited

8/6/2019 Mitchell's Fruit Foods Limited

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2011

Final Project of ManagementMitchells Fruit Farm LTD.

Group Members: Hamza L1F10BBAM0326 & OMER FAROOQ

2011





Company Information

Board of Directors



y S. M. Mohsin Advisor

y Mehdi Mohsin Chairman

y Mujeeb Rashid Chief Executive Officer &

Managing Director

y Moaz Mohiuddin

y Syed Faisal Imam

y Umme Kulsum Imam

y Jamal Nasim ± NIT Niminee

Audit Committee

y S. M. Mohsin Chairman

y Syed Faisal Imam Member

y Moaz Mohiuddin Member

Company Secretary/CFO

y Atif Fayyaz

Auditors

y A. F. Ferguson & Company

y Chartered Accountants

Legal Advisor



Minto & Mirza

78-Mozang Road, Lahore

Phone: (042) 36361531

Bankers

y Habib Bank Limited

y Allied Bank Limited

y Askari Commercial Bank Limited

y Muslim Commercial Bank(MCB) Limited

y Barclays Bank plc

y The Royal Bank of Scotland

y National Bank of Pakistan

Share Registrar

Corplink (Private) Limited,

Wings Arcade, 1-k (Commercial)

Model Town, Lahore

Phone: (042) 35839182, 35887262,

Fax: (042) 35869037

Corporate Office



39-A, D-1, Gulberg ||| Lahore

Phones: (042) 35872392,

Fax: (042) 35872398

E-Mail: [email protected]

Website: www.mitchells.com.pk

Factory, Regional Sales Office (Central) &Farms

Renala Khurd, District Okara, Pakistan

Phones: (044) 2635907-8, 2622908

Fax: (044) 2621416

E-Mail: [email protected] ,

[email protected]

Regional Sales Office (North)

Plot No. 110, Street No. 10, l ± 9/2, Industrial Area,

Islamabad

Phones: 051-4438324-26

Fax: (051) 4443827




Regional Sales Office (South)

Mehran VIP il, Ground Floor,

Plot 18/3 Dr. Dawood Pota Road, Karachi

Phones: (021) 35212112, 35212712 & 35219675

Fax: (021) 35673588


Introduction of Mitchell's Fruit Farms



Mitchell¶s is playing a vital role in the Pakistan¶s economy. For the last two years,

the company is receiving The Top 25 Companies Award. Mitchell¶s has been in

the market long before independence and still enjoys a good repute. This is theevidence of the company¶s dedication, trust and commitment to provide the best

quality products in the market. Despite all the odds, Mitchell¶s is still the Market

Leader in Squashes, Preserves, Sauces and Countlines.

Many Multi-National and National Companies have entered the competition.

Therefore, the quantity-wise difference between the Mitchell¶s and its close

competitor has squeezed.

Mitchell¶s growing and processing facilities are situated in Renala Khurd, Distt.

Okara. The head office of the company is situated in Lahore for ensuring the

effective distribution and marketing.

DEPARTMENTS OF MITCHELL¶S FR UIT FARMS LIMITED

y Human Resource Department

y Commercial Department

y System Department

y Finance Department

y Production Department

y Planning and Stores Department

y Technical Services Department

y Quality Control Department

y Marketing Department



STRATEGIC INTENTION

VISION

³To be competitive in the growing market as the quality managed company´.

MISSION

1. To be a Leader in the markets we serve by providing quality products and

efficient services to our consumers while learning from their feedback to set even

higher standards for our products.

2. To be a Company that continuously enhances its superior technological

competence to provide innovative solutions and superior products as per

requirement of the market place.

3. To be a Company that attracts and retains outstanding people by creating a

culture that fosters openness and innovation, promotes individual growth, and

rewards initiative and performance.

4. To be a Company which combines its people, technology, management

systems, and market opportunities to achieve profitable growth while providing

fair returns to its investors.

5. To be a Company that endeavors to set the highest standards in corporateethics in serving society.



CORPORATE PHILOSOPHY

The success of Mitchell¶s brands is the result of the corporate emphasis laid upon

Quality Control reinforced by Research & Development. The R & D section

prepares new recipes and formulations whereas the QC section ensures selection of

the finest fruits and error free processing and packaging, thus ensuring that all

products live up to the consumers¶ high expectations.

Human Resource is also of the pivotal importance for the Management and

employee skills are constantly being updated through training courses and study

tours both at home and abroad.

QUALITY POLICY

³We, at MITCHELL¶S Fruit Farms Limited, are committed to produce best quality

products meeting our customers¶ requirements at competitive prices, strengthening

our position as a Quality Managed Company. To meet this obligation, the company

will continue:

y U pdating of employee skills by training.

y Acquisition of new technology.

y Re-evaluation of its quality control and quality assurance systems.



GOALS OF Mitchell's FR UIT FARMS LIMITED

1. To provide such human resources that will helpful for run the operations of

the company in effective and efficient manner, and look after the benefits

and interests of personnel of the company so that they can become more

productive for the company.

2. Objective of the System Department of the company is to computerize the

business operations of the MITCHELL¶S Fruit Farms Limited.

3. The objective of the Finance Department is to arrange the finance for the

business operations from various sources, control the activities that are related with

the finance, maintain and update the company¶s accounts.

4. The objective of the Production Department is to produce quality goods at

minimum cost by utilizing the company¶s resources in an efficient manner.

5. To ensure hygiene, and arrangements of all materials in stores and

successful execution of orders.

6. To ensure that all the products, make by MITCHELL¶S Fruit Farms Limited

are of standard quality by inspection and testing of incoming material, in-

process and outgoing products.

7. The Marketing Department is responsible for planning and developing

products and executing their sales at an affordable price through promotionalactivities.



SITUATION ANALYSIS

PEST ANALYSIS

PEST analysis is used to assess what environmental factors are affecting the

organization, which of them are most important and how they will effect in next

years. It is an indicator of political, economical, social and technological

influences on organization. The analysis of Mitchell¶s is as under:

POLITICAL AND LEGAL FACTOR S

Industrial Laws

Industrial laws regarding unions have no impact upon the Mitchell¶s because there

is already an independent labor union and officers association in the organization.

The company considers these laws in their decision making concerning wage rates,

bonuses, and benefits of the employees.

Foreign Trade

This factor is very much important for the Mitchell's fruit farms limited. It is

because the Mitchell¶s is importing many raw material items from different

countries of the world. These items include cocoa powder, cocoa butter, lecithin,

tin, aluminum foil, pectin, metal caps, lemon concentrate, hydrogenated palm

kernels and pineapple concentrate. The major importing countries are Philippine,

Germany, china, Indonesia and Malaysia. Most of the foreign suppliers are

working with Mitchell's from last many years. And there are collaborative

relationships between Mitchell's and foreign suppliers.



The Government doesn¶t provide any support to import these raw materials and

any relaxation in import duty upon the imported raw materials. So if Government

bring any change in its foreign policy, then it will be very much important to copewith that.

Environmental Protection Laws

Although the laws regarding environment are not very sophisticated in Pakistan but

even if they become so, they will not be hampering for Mitchell's fruit farms

limited, because in Mitchell's, there is very sophisticated system for the drainage of

the wastes. In the wastes, there is not any such item that may be harmful for the

environment.

Taxation Policy

The Mitchell's fruit farms is a public limited company. The company is paying all

sorts of taxes that are due to the Mitchell's. As the honesty is the dominant value of

the company, all the payments to government are made fairly and honestly.

Employment and Government Stability

Employment is not a matter of high concern for the organization because it is

already following all the labor laws. But recently the Government increases the

wages of the employees but Mitchell's has not affected by that, because the

minimum wage limit in Mitchell's is Rs. 3000 that is high from the minimum wage

limit of the government of Pakistan..



Economic Factors

Among the many of economic factors some are more important for Mitchell¶s; the

detail of these factors is in following:

Interest Rates

Interest rates increase and decrease has significant impact upon the financial

performance of the Mitchell's, because the company has take loans from the banks.

It is also noticeable that the company takes the long term loans from the banks on

the regular basis. So, if in the future the interest rates increase, it will be

unfavorable for the Mitchell's. But such increase is not expected in near future.

Inflation

In the short run, the effects of inflation are minimal on the performance of the

Mitchell's. But if we take it in longer perspective the inflation in the country will

increase the cost of production, which will increase the sale price. And at high sale

price the product will become in-competitive in the international market as the

company is involved in the export. So the pan of export will be adversely affected

by the inflation.

Disposable Income

Within the country the demand will be affected if the disposable income will bereduced. There are lot many substitutes of the groceries products of the company.

But other than its direct use, these are also used in bakery and confectionery items

and so many other foods whose demand is dependent on disposable. So any



decrease in disposable income of the consumers will also be affecting Mitchell's

fruit farms negatively.

Socio-cultural factors

Socio cultural factors like demographics; income distribution, life style etc. can

also affect the company in different ways. Let¶s see which of them are more

concerned to Mitchell's fruit farms limited.

Life Style Changes

The consumption of jams, jellies, marmalades, squashes, sauces, pickles and

squashes is very much related with the life styles of people. Now people, all

around the world, are becoming more and more health conscious. They are well

aware that a high consumption of heavy foods will increase the cholesterol, which

leads to heart disease. That is why, a significant change in the consumption of

foods is being observed in last many months. As the growth rate of fast food

industry is spectacular in the country. That is most favorable for the Mitchell's. it is

because more consumption of fast foods will increase the demand of Mitchell's

products.

Level of Education

Level of education is directly related with awareness and health consciousness. In

countries where education rate is high the people more like the nutritious products.

In Pakistan, as well as in foreign markets the rate of literary is increasing which

will effect the organization positively. High level of literacy will lead to high level



of nutritious products consumption and people started switch towards the products

that are more favorable for their health and fitness.

Technological Factors

Technology in food industry is very important for the maximum output, product

standardization and hygienic process of production. The technological factors,

which are more concerned with Mitchell¶s, are as under:

Government Spending on Research

Usually in order to support some industry and improve economy, government

allocates some fund to R & D. Unfortunately our government doesn¶t have any

money for R & D. Due to this non-serious behavior of government this sector

along with others, is suffering very much. There is more need of R&D work in

this industry in Pakistan than any other industry. It is because of the sensitivity and

importance of this industry in our lives. It is a fact that our food industry is very

poor in the field of technological advancement. Mitchell's is well aware of this fact,

the company has the best and most advance technology in the respective industry.

Mitchell¶s continuously upgrading it on annual basis. The 15% of total net profit

invest on the automation of the technology every year.

New Discoveries and Developments

It has already mentioned that Mitchell's has the best technology for the operations

of the business. Mitchell's is competing the market with its qualitative and

innovative products. All these are possible as the result of intense R&D, new



product developments and new recipes for the fulfilling the changing needs and

wants of the market.

STR UCTURAL ANALYSIS

The PEST analysis concerned with broad aspects of the environment while there is

always a set of external influences, which are more immediate, and directly

affecting the organization. The structural analysis draws on Five Forces approach

prepared by Porter. It is a structured mean of assessing the competitive

environment.

Threat of New Entrance

Threat of entry depends upon the extent to which there are barriers to entry. A food

company requires a big manufacturing unit which requires a huge capital

investment; like Mitchell¶s has more than 800 crore paid up capital. So we can say

that groceries-manufacturing unit is highly capital intensive and because of highcapital investment it has high risk for new to enter into production.

Suppliers¶ Power

All organizations have to obtain resources and provide goods or services. The

suppliers can affects on strategic freedom of an organization and can influence the

margins of that organization. In Mitchell's fruit farms; there are two types of

suppliers. One is a local supplier, and others are foreign suppliers. We can

evaluate the power of suppliers with the help of following important points that

cannot be ignored:



a) As well as the foreign suppliers are concerned they have power of bargain

because the material is not available locally and the buyer don¶t have any option

other than import, so the supplier charge the high prices and transaction is donethrough banks by opening letter of credit and buyer also has to bear high

transportation cost and import duties.

b) As well as the local suppliers are concerned they have small fruit farms.

Food companies are highly capital intensive so they don¶t have any power because

they can¶t do forward integration.

c) There are large numbers of fruit, vegetables, sugar and other raw material

suppliers so the buyer checks the quality of suppliers¶ products and make contract

with any one which meet their requirements regarding quality as well as price.

d) Another reason of no influence of the suppliers over the Mitchell's is that the

company itself producing large amount of fruit, vegetables, milk and butter. The in

this way, backward integration reduces the power and influence of suppliers of theraw material.

e) Mitchell's has very good repute in the market since from the 1933. another

fact is that Mitchell's is the market giant in its industry, so every supplier want to

work with the Mitchell's.

Buyers¶ Power

The buyers don¶t have any power, because the prices of the products are fix, but

high competition among food companies leads the company to face problems in

the price competitiveness.



Competitive Rivalry

Organizations will also be concerned with the extent of rivalry between themselves

and competitors. The extent of competitive rivalry depends upon the nature of four

forces described earlier. It could be concluded from previous discussion that the

food market is highly competitive. And the degree of competition in the industry

is increasing day by day.

VALUE CHAIN ANALYSIS

Value chain analysis is widely used to determine where cost improvements could

be made or value creation improved. This process involves the analysis of all the

activities starting from the raw material provisions to the distribution of final

product. That is why it is necessary to understand the complete procedure of

production and distribution.

ORGANIZATION VALUE CHAIN

All these activities are broadly categorized into two main heads, which are Primary

activities and Support activities.

Primary Activities

The primary activities of the organization are grouped into five main areas:

inbound logistics, operations, outbound logistics, marketing and sales & services.



Inbound logistics

Fruit, vegetables, sugar, packing material and other raw material items like

chemicals, salts milk and butter perform the inbound activity in Mitchell's. This

activity should be efficient in order to increase recovery rate by obtaining good

quality raw material. So in order to ensure the high quality of raw material,

following measures are taken by the Mitchell's.

1. The company has its own orchards, animal farms for the acquisition of high

quality fruit, vegetables, milk and butter.2. There is a well-equipped lab for testing the quality of raw material, packing

materials and other chemicals that are used in the production process. Before

storing the raw material, the approval of quality control department is

essential.

3. In case of 30% of damaged fruit and vegetables, the quality control

department of Mitchell's disapproved the material and the commercial

department refused to accept the raw material.

4. There is an approved list of suppliers from the quality control department.

The commercial department is bound to procure the raw material from only

the listed suppliers of the company. This list is made after assessing and

evaluation of many factors of the suppliers like their market repute, capacity

of production, quality of raw material and their past performance in the

market.

5. Frequent visits are also made to the production facilities of the suppliers by

the executives of commercial and quality control department for the

inspection of the quality and other related considerations.



Operations:

The operations are the production process of groceries where the major value

addition is made. For ensuring the production process of the products according to

the international quality standards, the Mitchell's take the following steps.

1. All the production process from transferring the juices and raw material to

production hall from juice stores to the packing of the products is completely

automatic. The Mitchell's invest huge amounts of profits for serving this

purpose every year.

2. The Mitchell's was the first company who achieve such high level of

automation in its relevant industry. The company is serving the industry as

the trend setter.

3. During the production process, the well trained lab technicians inspect the

production process and its quality before the packaging of the final products.

4. Even after the packaging, the few items of the lot bring into the quality

control department for further inspection of quality in the labs of the

department.

5. few items are preserved even after the approval of its quality, to check its

shelf life and use as reference in case of any complaint from distributors or

customers.

6. After ensuring all sorts of considerations, a written permission is given to

stores & planning department from quality control department to float the

products in the market.



Outbound logistics

The management subcontracts the outbound activity, and the distribution is

through dealers. The products of the Mitchell's directly supply to the distributors

of the company. But the supply of production is also take place by the regional

sales offices of the Mitchell's. They also serve as the warehouse of the company.

Marketing & sales

As far as marketing and sales is concern, there is an export and marketing

department, who control and monitors the activities of regional sales offices of the

company that are situated in Lahore, Islamabad and Karachi. These regional sales

offices are responsible for effective distribution of the products of the company.

The marketing department is responsible for the marketing and promotion of new

and existing products of the company.

Services

The nature of the products not requires any significant level of services for the

customers. However, there is a formal system for taking corrective actions upon

the complaints of the customers. Proper feedback is given to the customers who

have any complaint regarding the quality of the Mitchell's products.

Support Activities

The support activities can be divided into four groups, which are procurement,

technology development, human resource management and infrastructure.



Procurement

As the prime inputs of fruit, vegetables, sugar are available locally and some

material has to import from abroad. So procurement for long time is not possible in

case of raw material, which is locally available. Where as the material that has to

be import the company has a lead-time of 2-3 months. So the planning and stores

department is sufficiently performing the activity of procurement with the

collaboration of commercial department.

Technology development

R&D and Process development researches are very important in food groceries

industry in Pakistan. So in the company value chain, this thing should be

emphasized much, rather it has a big contribution in total value addition. The

Mitchell's working on the technology development on continuous basis. The most

advance and automation of the plant and machinery is the top priority of the

Mitchell's fruit farms limited.

Human resources management

Human resource management involves the training and development of workers

and employees in order to increase their productivity and efficiency. For this

purpose company make their employees to work with the senior worker to get the

experience, apart from this on-the job training, they have separate training program

for new employees. The company has good planning, quality control systems and

future orientation, which although does contribute directly in value addition and

increase the effectiveness of whole process.





Organization

Within the organization the value addition activity is focused on groceries

production, which is their core competence. In order to provide the superior quality

of groceries to customers, total quality management system is practicing by the

Mitchell's. Although in the production of the products, Mitchell's role is

spectacular in its industry. But when we talk about the market development and

marketing and promotional activities of the Mitchell¶s, we will come to know that

this particular area is lacking behind the other market players. Without the

marketing support Mitchell's cannot achieve its goals and objectives successfully.

Channel Members

Mitchell's fruit farms limited have strong footing in the market because of its

quality products and good repute. The company is full aware about this strong

point, and the people of Mitchell¶s are getting benefits from this strength. The

customers of the Mitchell's are loyal with the company and make purchase of such

products that are labeled Mitchell's. There is strong distribution channel in the

country that is the strength of the company. The company also directly deals with

the large customers like PIA, KFC, PIZZA HUT, MCDONALD¶S, HOLIDAY

INN, and many other prestigious institutions of the country. Apart from these

institutions, Mitchell's deals with the large retailers itself like PACE, H. Karim

Buksh stores,U

TILITY STORES, CANTEEN DEPARTMENTAL STORES,SHEZAN BAKERS and so on. So in this way we can say that company targeting

its customers not only by the distributors but also go directly to retailers and other

institutions for creating value for the business operations of the Mitchell's.



Distribution Network

y Factory

y Distributors

y Retailers

y Final Consumers

Existing STRATEGIES

CORPORATE LEVEL STRATEGIES

Corporate level strategy focuses on strategies for corporation consisting of more

than one business. Mitchell's fruit farms limited, for instance, comprise several

businesses, including groceries, confectioneries and chocolates business.

Mitchell¶s involve more than one business is said to be diversified.

Foreign LicenseesIn recognition of its dedication to quality and technical expertise, Mitchell¶s was

also given proprietary rights by L. Rose and Company Ltd. of England in 1946 to

become the sole manufacturer and distributor of their world famous Rose¶s brand

of Lime Juice Cordial and Lime Marmalade in Pakistan and Afghanistan.

Concentric Diversification

³Adding new, but related products or services´.

Mitchell¶s involved in concentric diversification because it has three related

businesses that are groceries, confectioneries and chocolates. The raw material,

production process, required expertises are very much same. Further more the



product lines like squashes, syrups, pickles, jams, jellies, marmalades, sauces, diet

preserves, vinegars, candies and chocolates are the product lines that are closely

related in context of many business aspects. So we can say that Mitchell's isexercising the concentric diversification.

Backward Integration

³Seeking ownership or increased control of a firm¶s suppliers´.

Mitchell's fruit farms limited is acting on the concept of backward integration.

Mitchell's has its own orchards and dairy farms for the smooth flow of raw

material that is used in the production of Mitchell's products. 450 acres of land is

used for cultivation of raw material.

Following fruits requirements are being fulfilled by Mitchell¶s own agriculture

land.

Lemon 100%

Grape Fruit 100%

Sevlik Orange 100%

Tomato 30%

Garlic 30%

Apart from the Mitchell's own orchards, Mitchell's has sound control over its

suppliers. For example, the raw material that is used in the Mitchell's is of two

types. First is the raw material that is used in the production process and the second



is the raw material that is used for the packaging of the products. Package (Pvt)

limited is the sole supplier of the packaging material of the Mitchell's. Mitchell's

and packages (Pvt) limited have the same directorships, so in this way we can saythat Mitchell's has good enough influence over the management of the packages

(Pvt) limited.

BUSINESS LEVEL STRATEGY

Firms compete directly with one another at what is called the business level of

strategic management, so we will focus on crafting successful competitivestrategies. Because competition takes place at the business level, strategic

management at this level is crucial to the overall success of the corporation.

Differentiation

If we closely look at the operations of Mitchell's fruit farms limited, we will come

to know that the corporation is practicing the differentiation strategy. Mitchell'shas more than fifteen product lines and a large product mix of more than 90

products. The product mix of Mitchell's is the largest one in its respective industry.

This fact reveals that Mitchell's is exercising the strategy of product mix

differentiation. Mitchell's is charging 7 to 8 percent higher prices of their products

as compare to their competitors. Because they consider their products superior as

compare to remaining ones.

Customer focus

Apart from product differentiation Mitchell's is also implementing customer focus

strategy. The continuous process of research and development, product



differentiation, marketing research and technological innovation make this possible

for Mitchell¶s to introduce more than four products in a year. This is a clearer

indicator of customer focus that is being implemented by the corporation. TheMitchell's customer is loyal to the company and he wants to purchase the brand

MITCHELL'S. So it is necessary for the company to introduce not only innovative

products but also gives quick response to its customers.

OPERATION LEVEL STRATEGY

Operation level strategy focuses at how to develop capabilities in processexecution that will yield competitive advantages for a firm. This involves applying

strategic management concepts to what is known as the operations level, the level

at which work inside the organization actually takes place. We focus on how

organizations go about improving their process capabilities, including both total

quality management and core process reengineering.

Product Development

³Seeking increased sales by improving or modifying present products or

services´.

The company is focusing on product development not on market development. It

may be considered as strength or weakness. Strength in this way that company is

giving full priority to satisfy the wants of existing customers. But it might also be

termed as weakness of the company because it is keeping the large market

remained untouched.



RECOMMENDED STATERGIES AND IMPLIMENTATION

We can say that the food processing industry of Pakistan is one of the most rapidly

growing industry of Pakistan. Many new markets players have entered to acquire

their share in the market. Although the economic conditions of the country are

poorer but the quality of life is towards improvement. This improvement also

leaves favorable impact on the tastes of people. Once there was a time when only

Mitchell's was running its business in the Pakistan in its relevant industry. NowMitchell's is facing competition from many national and multinational food

companies in the country. Many national companies are joining hands with

multinationals for strong footing, financial support and other required professional

expertise. Mitchell¶s now is facing many problems in today¶s world of business.

So for avoiding swerve consequences we recommend following strategies to

Mitchell's.

FORWARD INTEGRATION

³Gaining ownership or increased control over distributors or retailers´.

In forward integration we not suggest to Mitchell's to gain ownership of

distribution system but it is need of the hour to increase control over distributors as

well as retailers. The major de-motivator for retailer and distributor is fewer profit

margins to them. Mitchell's is the company that is offering minimum profit margin

to its distributors and retailers. It converts the interests and priorities of

distribution channel member to other market players. When the prices of products

are high comparatively to competitors it will be necessary for the producer to give



attractive margin to distributors and sellers and retailers so that they promote

company¶s products effectively. The increase in trade promotion will also enhance

the control of company over its distributors and retailers.

Customer Focus

The company is not offering its products in the various packages. For example the

competitors of Mitchell's like Shezan, Rafhan, Qurshi, Humdard and Galaxy are

offering their products like preserves, ketchups and sauces in buckets but this area

is ignoring by the Mitchell's. It will be good for the company to offer its productsin more different weightings. It will not only increase the sales of the company but

also helpful for market development.

y It is suggested that company should introduce more flavors of squashes like

plum and peach.

y The squashes and syrups must also be introduced in 1.5 litre and 500 ml

packages like Rooh Afza and Jame Shereen.

y It is also recommended by us to Mitchell's that to be competitive in the

market, the company should also preserves like jams, jellies, marmalades

and ketchups, sauces in more economy packs for the customers.

Market Development

³Introducing present products or services into new geographic areas´.

At this time, the Mitchell's fruit farms limited is utilizing its 70 % of total capacity.

So there is need to market development. More markets will help company to utilize

its full capacity but also increase the profitability and competitiveness of company.



Mitchell's can explore new markets not only in the country but also in the abroad.

ü Although the company exporting its products to Middle East, Canada, Gulf,

Saudi Arabia, U.S.A and European countries. But in these countries, still need of

market development is exist.

ü Still there are many cities in the country, where the product availability of the

Mitchell's is very much poor, even in big cities there are many areas in which the

company distributors have not access. The company should ensure and improve its

products¶ availability.

RELATED DIVER SIFICATIN

Mitchell's can diversify its businesses in other related areas of operations. The

main reason of going to such diversification is that the company has good repute

and vast experience of food processing industry. The customers of the company

have brand loyalty and ask for Mitchell's products to retailers. Such kind of

diversification will facilitate the company to remain prominent in the market and

milk its reputation.

ü We recommend that Mitchell's must go for the business of butter, cheese,

mineral water and snacks etc. this will be related diversification for the company.

ADVERTISEMENT

From last few months, the Mitchell's is not advertising its products on the

electronic media. It is affecting the sales of the company very severely. The main

area of focus is trade promotion that is not enough in tough market conditions and

competition.



ü More consumer and trade promotion

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

ü More outdoor advertisement like its main competitors. Significant increase in

the number of sign boards, MMT boards and banners on the public places will

increase the product awareness and interest of the customers.



MITCHELL'S CORPOPRATE LANGUAGE

All the documentation and written communication of Mitchell's is in English

language. However, verbal communication may be in Urdu, particularly the

executives of the company speak Urdu or Punjabi with the workers as per workers¶

convenience. But it is the restriction of the company to deal external people in the

Urdu and in case of foreign people; mode of communication should be English.

The management executives are trained by the Mitchell's to negotiate with

foreigners in the English language.

IN-HOUSE SLOGANS OF MITCHELL'S

There are three in-house slogans that are permanent in nature. Apart from these

slogans, one slogan is called the slogan of the month.

Three permanent slogans are as following:

1. love with customer« love with company

2. C ustomer happy, company prospers.

3. C ustomers help us grow.





CORPORATE VALUES OF MITCHELL¶S

EMPLOYEES AS COMPANY¶S ASSET

The professional management and skilled labor force is considered as the asset of

the company; so MITCHELL¶S Fruit Farms Limited take it very serious for the

betterment of employees skills and expertise. The company sent the management

people in the foreign countries for attending various seminars, workshop and

refresher courses.

The company in different hotels for updating also holds the seminars on different

topics the professionalism of the executives. Apart from these seminars, the

executives also take part in the different course that are offered in all over the

country on various informative topics like information technology, quality control

systems and new production methods and techniques.

RECR UITMENT CRITERIA

Recruitment practice is done after particular period of time in the MITCHELL¶S

Fruit Farms Limited. But if we practically see the recruitment process in the

company, we will come to know that the top priority is given to those candidates

who have the experience in relevant job and strong internal references.



PROMOTIONS

The Mitchell's fruit farms limited provide an attractive career path to their

employees. The promotions of the employees are base on their performance as well

as experience. Both are considered by the human resource department. The

Mitchell's take care of their employees and serve their career goals in a marvelous

manner.

LEARNING ORGANIZATION

Mitchell's is a learning organization. The company tries to utilize the capabilities,

skills and knowledge of its people at maximum. For this purpose, employees work

in the form of teams for the completion of various projects. Top management

encourages risk-taking among the employees. In return, there is an attitude of

tolerance on mistakes in the Mitchell's management.

INNOVATION

The mission of the Mitchell's is to provide the innovative products to the markets

where the company serves. So innovation in product mix has much importance in

the company. It is required by the top management to introduce three or four new

products every year. For this purpose, R&D work continues throughout the year.

Ideas are collected from the Mitchell's people, then after initial screening, these

ideas are referred to product design panel, who work on these ideas for producing

final products.



TECHNOLOGICAL ADVANCEMENT

The company positions itself at top and consider best in the technology. For remain

best in technology, the company following the strategy that Mitchell's will invest

15% of its profits on the advancement of technology. This amount is more than Rs.

200 million every year. This advancement is done for achieving more product

standardization, maximum output and hygienic process of production.

IMPLIMENTATION OF TQM

Mitchell's was the first company in the respective industry that get ISO 9001

certification in 1998. Mitchell's is the trend setter in its industry. Mitchell's believes

on quality. The company implements the quality notion from product design to

provide the products in the hand of ultimate consumers. During all the processes

quality is managed as the top priority. Mitchell's makes its image as the quality

managed company. All the measures regarding TQM that are possible in the

present environment of the country are possible has been taken by the Mitchell¶s.

BE HONEST

The most important value that is promoted within the company is honesty. It is

required from the employees of the Mitchell's that they not only deal with their

colleagues with honesty but also deal with suppliers and customers of the company

honestly. One classic example of the Mitchell's commitment to honesty is their

products. According to the rules of the government, there should be atleast 35%

pulp in jams, jellies, marmalades, ketchups and sauces. But the food companies not

careful about this restriction except Mitchell¶s.



BENEFITS & SERVICES

Salaries and incentive packages of the company is very attractive. All head of

departments are given automobiles and mobile phones by the company at its

expenses. The salary package of the head of departments is also not less than sixty

thousand. The executives of the company have the medical facilities and

accommodation facilities .The salaries of clerical staff are also not merely less than

six thousand. The entire management and staff member have the T.A and D.A

facility. All the staff members and workers are also awarded with the overtime

benefits. The minimum wage rate is Rs. 3000 in Mitchell¶s. The workers and

executives enjoy at least two bonuses in a year. The number of bonuses depends on

the company¶s profit at the end of its financial year on the end of September. For

many times, employees are awarded five or even six bonuses in a year. Gratuity

and pension is also awarded to the retired employees.

IMPRESSIONS ABOUT MITCHELL'S CULTURE

1. The people at Mitchell's are quite satisfied in the company. They considered

their job challenging and attractive for their self.

2. The company is promoting the values like punctuality, hardworking,

participation and honesty. All these values have strong support from the top

management of Mitchell's. Even the top executives like chairman, managing

director and executive director of Mitchell's come in office in time even before time, they follow the rules and regulations of the Mitchell's like there

is restriction on the employees of the company to attach their company¶s

identity card at the front of their dress. So this rule is for all even for the

owners and director of the Mitchell's.



3. It is the matter of immense pleasure for the employees to be the part of

Mitchell¶s. They feel proud to be the part of oldest and best food company of

the country.4. They are committed to their jobs and enjoying sound monetary and non-

monetary benefits from the Mitchell's. The turnover rate in the Mitchell's is

near about nil. This shows the employees loyalty that they have with

Mitchell's.

5. So, my viewpoint about the Mitchell's culture is that they have very different

culture that I observed in other national companies. They have strong culture

that provide supportive working environment to their employees, take care

of their participants and all the employees working in the relation-bond

culture.

6. All the employees have written duties and responsibilities. However,

sometimes for the sake of job rotation, they have to work on some additional

assignments but in the form of teams not on the individual level.

7. Authority has defined broadly in the Mitchell's. Mission statement, quality

policy, goals, objectives and short term planning is demonstrated and

communicated among the employees to all over the company. Apart from

these facts, the past performance of the company is also demonstrated with

the help of various instruments at many times in the Mitchell's.



EMPLOYEES FORMAL IMPRESSIONS

1. According to employees, they are happy with the Mitchell's fruit farms and

they are enjoying collaborative relationships with the management of the

Mitchell's.

2. Their jobs are challenging to them and not feel any sort of job boredom.

3. There are good working environment in the Mitchell's and they are free to

participate in the matters of the company. The employees work without any pressure and fear.

4. They have formal as well as informal relationships with their colleagues.

5. The behavior of management is friendly with the employees of the company.

EMPLOYEES GRAPEVINE IMPRESSIONS

1. The employees are unhappy about the strict control of the Mitchell's

management upon them. According to the employees of the company, with

the passage of time, they have to work harder and now there is more

accountability of the actions of the employees that was not in the past.

2. The employees also claim that the management of the company is exercising

the discrimination among the employees without any legitimate or

performance related reason.

3. Apart from these negative impressions, the employees have same informal

impressions as they have formal. The employees are happy and satisfy with

Mitchell's policies and managerial practices. They consider their company



prestigious in the country and have strong sense of belongingness with the

Mitchell's.

MANAGEMENT STYLE OF MITCHELL'S

One can elaborate the management style of any organization on the following

grounds.

1 . Planning

2 . Organizing

3 . S taffing

4 . Leading

5 . C ontrolling

Now we see the management style of Mitchell's on the basis of above mentioned

points.

Planning

Goals are set with a few deal of participation.

Decision making is transferring to decentralization from centralization.

Organizing

Authority is shared.



Authority is broadly defined in the Mitchell's.

Staffing

People are selected on the basis of performance criteria. But sometimes, internal

references are also used for recruitment.

Training is in few functional areas.

Leading

Managers practice participative leadership, but not much extent.

Communication flow is top-down and bottom-up.

Controlling

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

Focus on multiple criteria.

Documents

Mitchell's Fruit Foods Limited