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REYNOLDS FRUITS CATERING
Student Name: Student NumberPrince Osei 15125059Loise Nganga 16141870Jacqueline Nkya 16141357Md Najmus Saqib 16147918
CONTENT• Company overview and mission statement• Corporate values• Organizational culture• Organizational capabilities – Greenly • Corporate resources; porters value chain• 7’s framework McKinsey• Strength and weakness• macro analysis; PESTEL• Competitive environment: Porters 5 forces• Competitor Brand Perceptual Map• Industry Life Cycle• Market Analysis• Opportunities and Threats• SWOT• Reference
Reynolds is one of the leading fresh
fruit & vegetable
suppliers and wholesalers
to the UK foodservice and catering
industrybased inWaltham
Cross, Hertfordshire
Mission StatementOur goal is to make all of our customers’ lives easier every day by offering great quality and service at a fair price. We take great pride in our work, and our ability to deliver means that our customers trust us to ensure the continuity of their businesses on a day-to-day basis, whilst maintaining high ethical and environmental standards at all times
Key Facts:1945, William Reynolds set up his fruit & vegetable store.1988, Reynolds starts supplying fruit and vegetable to restaurants, hotels in London and the Home Counties.It has seventeen (17) growers It has seven (7) regional depots B2B Customers ie: Hotels, Restaurants and pubs, events catering, Healthcare, Education, workplace catering, travel and leisure. Ranked as 150th among the 250 UK’s top mid-market private companies.
SOME INFORMATION ABOUT REYNOLDS
Reynolds s (2016) website
Corporate ValuesPromoted core values
Environment Supplier responsibility Teamwork & Customer care
Quality & Integrity
• ‘Our mission is making lives easier for our customers.’
Focus on:• Food Safety• Sustainability• Quality• Climate change• Re-use and recycle • Responsible Sourcing
• Ethical practices
Focus on:• Social standards• Education• Worker rights
• Teamwork
Focus on:• Openness• Working without fear• Respect for all ranks • Diversity and equal
opportunity
• Commitment to fair employment practices, building relationships and seeking continuous improvements
Reynolds s (2016) website
Johnson et al. 2012
Control systems
Stories and Myths
Power structures
SymbolsThe Paradigm
Organisational structure
Routines and rituals
Organizational Culture: Making life easier for customers
Routines and rituals
Organisation structure
Stories and myth
• Communality engagement• Market Place news• Development Chef• Collaborative Whitepaper• Events sponsorship
• Hierarchical structure• Collaborative structure • Both mechanistic and organic growth of departments• Operational managers
Organizational Culture: Making life easier for customers
Johnson et al. 2012
• Work as family unit• Diary inspection• Highest ethical standard of quality• Health Consciousness
Organizational capabilities: Resource imitability
• Reynolds Brand• Logo/Patent• Patent and trademark
• Level of brand loyalty • Price elastic market demand
• Warehouse Facilities• Skilled staff • Value chain• Advertising campaigns• Supply chain
• Unskilled staff• Undifferentiated products
Cannot be imitated
Difficult to imitate
Can be imitated but at a cost
Easy to imitate
Greenley (1989)
7S framework McKinsey
• StrategyProduct Quality Price differentiationsStrategic alliance with the use of growers
• SkillsSpeciality procurement teamdynamic and experts field personnel Supplier chain development
• StaffBoth skill and unskilled staffTrain staff to understand the need to improve customer handling in order to aid sales
• Structureflat organisational structure with just few or no intermediaries. Ie: managing director Tony Reynolds, Commercial Director, Finance Director, IT director, Operational Director
• Systems Improve systems in all areas of including grower schemes, supplier and customer schemes
• Shared ValueBelieve in teamwork & OpennessDiversity and equal opportunity, Work as a family unit
Strategy
Structure
Systems
Style
Staff
Skills
Shared values
Reynolds s (2016) website
Corporate resources: Porters value chain
Marketing & Sales
a. Market Placeb. Media Centrec. Sponsorshipd. Websitee. B2B
Inbounda. Staffsb. Training &
Developmentsc. Driver
developmentd. Reusable crates
schemee. In house
technical capability
Operationsa. Long term
contracting basisb. 17 growersc. Building
relationship with suppliers
d. Engage Red Tractor Farm Assured Suppliers
Outbound
a. Transportation system
b. Retailers and wholesalers
Procurement
Firm Infrastructure
Human Resources Management
TechnologyUsing internet (website) to promote itself
Valu
e Ad
ded,
Les
s co
st =
pr
ofit
mar
gin
Service
a. After sales services
b. Quality Assurance
c. Customer Enquiries
• Driver Development Scheme (DDS) • 700 Employees
• It has procurement team• It has chief Chef• Engages Suppliers • Contracting growers
• Waltham Cross, Hertfordshire. • Warehousing Facility• Experts in Green grocers• Transportation
Strengths and weaknesses
Strengths Weaknesses
- Access to growers
- Reused Crate Scheme/Recycling Policy
- Ability to build relationship, trust
- Product Quality
- Excellent Procurement Team
- Supplier commitment
- Contracting growers
- Greater Customer service
- Ability to supply to leading hotels
- Stronger/Wider Community engagement ie: Cancer Research
- High perish products
- Inability to recruit young careers in the industry
- Seasonality of products
- Product wastage adding to cost
- Inability to fix own price leaving that to customers for 6 months
- Inability to deal with challenges around labour cost which equates 70% of fixed cost
- Inability to remove supply chain costReynolds s (2016) website
Macro-environment analysis: PESTLE
Legal
Political
Social
Economic
Technological
Environmental
• Stricter EU and UK Regulatory requirements• Foreign Trade Agreements• UK Referendum• Post Referendum pressures and uncertainties• Government austerity policy
• Socially conscious consumers ie: estimated 21 million people suffer from allergy • Increase in consumer spending• Change in lifestyles & buyer behaviour – health concern• Ability to draw up socially acceptable programs by providing for the needy ie: crate
scheme
• Labour cost ie: Wage rise from £6.50 to £7.20 an hour highest• Inflationary pressures on the pounds• Interest Rate halving by Bank of England to 0.25% from 0.50% with
possibility of further cut to stabilise the Banking system• Domestic Farmers commanding premium pricing• Low cost Eastern European producing countries
• Safe, health and sustainable supply chain • Commitment to measuring and reducing impact•
• The UK Food Information Regulations 2014 (FIR) which affect/impact Reynolds and supplier labelling and packaging CBI (2016)
Defra (2016)
EU (2016)
Threat of new entrants: Low
- High price, high quality- Product differentiation
- Patents Rights- Forward & backward integration
- Growers License & exclusive partnership to lower threat
Rivalry between competitors: High
-Brand loyalty -Product life cycle: Growth
- High demand for exotic, tropical and off-season fruits
- High level of compliance-
Threat of substitutes: High
- Many brands offering similar/same competing products- Alternate products like fresh snack, organic fruits,
- Bargaining power of
suppliers: Low
-Large number of suppliers come together to influence process-Power of European importers
Buyer bargaining power: High
- Differentiated product- Higher demand of quality
- Price elastic product
Competitive Environment: PORTERS 5 FORCES
CBI (2016) Ministry of Foreign Affairs
Competitor brand perceptual map: Fruits and vegetables
High Quality
Low Price
Munneries
Suffolk Produce Ltd
High Price
Low Quality
Industry Life Cycle
Market Introduction
stage
Growth Stage
Maturity Stage
Decline Stage
CBI (2016)
Monopolistic market
Lots of firmsEasy entry and exit barriers Varieties of products
Linked to Elastic demand curve as many rivals produce substitutes
products and
Product differentiated in styles, packaging, advertisement,
location and pricing
Market/Industry Structure Analysis
Probability of opportunityCa
pabi
lity
Monitor Exploit
Ignore Investigate
0
10
1
1
3
6
2
7
4
5
1. High demand in Exotic products
2. Securing long term relationship
3. Entering supply chain agreement i.e.: forward and backward integration
4. Creation of Niche market
5. Taken advantage of EU Free Trade Agreement
6. Innovation and Different ion
7. Engaging growers in exclusivity or licensing partnership with seed companies
8. Gathering Information on which varieties are in demand
9. European regulation on plant breeders right through Community Plant Variety Office (CPVO)
8
9
Classification of Opportunities using BCG Matrix
CBI (2016)
Probability of threatCa
pabi
lity
Competent Prepared
Monitor Defenceless
0
10
1
5
8
34
7
2
1. Economy stabilising: Increase in interest rates
2. Rate of technological development
3. Intense competition ie: lots of competing companies
4. Substitute products ie: Snack, Processed fruits
5. Possible adjustment of taxes in the UK arising from Brexit
6. Consistent increase of Labour cost
7. Inflationary Pressures
8. Fluctuation and fall of the Pound (£) to majority of trading currencies
9. Unreliable weather pattern globally
10.Brexit uncertainties and market volatility impact
9
1
Classification of Threats using BCG Matrix
CBI (2016)
SWOT analysisStrengths Weaknesses- Access to growers- Reused Crate Scheme/Recycling Policy- Ability to build relationship, trust- Product Quality - Excellent Procurement Team- Sophisticated global supply chain- Contracting growers- Greater Customer service- Ability to supply to leading hotels- Stronger/Wider Community engagement ie: Cancer Research- Employees- Ability to create niche - Strong brand recognition in the industry- Strong logistical and distribution channels- Ability to secure emerging growers- Responsible sourcing- Commitment to reducing impact on the environment
- High perish products
- Seasonality of products
- Product wastage adding to cost
- Inability to fix own price leaving that to customers for 6 months
- Inability to deal with challenges around labour cost which equates 70% of fixed cost
- Inability to remove supply chain cost
Opportunities Threats1. High demand in Exotic products2. Securing long term relationship3. Entering supply chain agreement ie: forward and backward integration4. Creation of Niche market5. Taken advantage of EU Free Trade Agreement6. Innovation and Price differentiation 7. Engaging growers in exclusivity or licensing partnership with seed
companies8. Gathering Information on which varieties are in demand9. European regulation on plant breeders right through Community Plant
Variety Office (CPVO)
1. Economy stabilising: Increase in interest rate2. Rate of technological development 3. Intense competition4. Substitute products ie: Snack, Processed fruits5. Possible adjustment of taxes in the UK6. Labour cost7. Inflationary Pressures 8. Fluctuation or fall of the Pound (£) to majority of trading currencies9. Unreliable weather pattern globally10.Brexit uncertainties and market volatility impact
Referencesa. Johnson, G Whittinghon, R and Scholes, K (2012), Fundamentals of strategy, 2nd Edition, Financial Times, Prentice Hall,
Pearson, London
b. https://www.cbi.eu/sites/default/files/market_information/researches/trade-statistics-europe-fresh-fruit-vegetables-2015.pdf-accessed 18/10/2016
c. http://www.reynolds-cs.com/-accessed 19/10/2016
d. https://www.gov.uk/guidance/comply-with-marketing-standards-for-fresh-fruit-and-vegetables-accessed 15/10/2016
e. http://www.ons.gov.uk-accessed 20/10/2016
f. http://www.cert.org/cybersecurity-engineering/research/survivability-analysis-framework.cfm?-accessed 08/11/2016
g. http://www.reynolds-cs.com/wp-content/uploads/2014/07/Greengrocer-newsletter-August-2016.pdf-accessed 11/11/2016
h. http://www.reynolds-cs.com/your-business-accessed 11/11/2016
i. http://www.bbc.co.uk/news/business-37373094-accessed 11/11/2016
j. https://www.gov.uk/national-minimum-wage-rates-accessed 11/11/2016
k. http://www.reynolds-cs.com/growing-responsibly/sustainable-foods-and-supplies/red-tractor-approved-accessed 11/11/2016
l. http://www.reynolds-cs.com/our-food/food-information-regulations-accessed 14/11/2016
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