A Business Plan to introduce Clean City Ltd

A Business Plan to introduce Clean City Ltd This document serves as a Business Plan to introduce Clean City Ltd, a registered Limited Company that was formed in January 2010. The sole purpose of Clean Citys business will be to solely engage/enforce the sorting of garbage, its collection, transportation and delivery/disposal to recycling plants and dumping sites, our main focus being recycling plants. What is Waste Management? Waste management is the collection, transportation, processing, recycling or disposal, and monitoring of waste materials, while Recycling is the process of re-using a given product (beyond its intended use), or producing a new product from a recyclable material. Nairobis population is approximately 4 million, 44% Kenyans fall below the poverty line, meaning approximately three quarters of Nairobis population falls under the urban poor category. In Nairobi, approximately 1,530 tonnes of garbage is generated daily and as illustrated in the Pie Chart below, approximately 1,130 tonnes of garbage rots uncollected close to its source, or is burnt in homesteads, dumped at illegal landfills or dumpsites or is collected by Non Governmental Organisations and Community based groups. Due to economic hardships and the high rate of unemployment, we have seen an increase of people migrating from rural to urban areas in search of better prospects to support their immediate families and/or dependants, and more often than not, most of these people eventually reside in low class areas such as the Kibera Slums or Peri-urban areas such as Gachie, Ongata Rongai, etcetera. Approximately half of the Kenyan population is based in Nairobi, and most of these migrants find themselves close to fragile areas such as rivers, valleys, steep slopes and adjacent to sewers or dumps. Nairobi City Council whose mandate is to provide and sustain a clean and healthy environment in Kenya has been unsuccessful due to its failure to formulate and adopt clear and comprehensive strategies that take into account all aspects of waste management; its reluctance to involve stakeholders and to educate the general public on taking responsibility for their garbage disposal; and its manner in which it has disseminated information on the inherent dangers of inadequate attention given to waste management, or lack thereof. The Councils Systems and Methods adopted to manage solid waste have failed to conform to the minimum requirements stipulated in the Environment Management and Co-ordination Act (EMCA) 1999, Part 11, Section 3(i). Generally it is poor governance. It is very sad indeed to witness adult pedestrians, motorists and passengers alike, ditching rubbish on footpaths, streets and roads without giving a second thought to the negative effects of their actions and having no regard for the beauty of Kenyans Capital, the Green City in the Sun. Majority of our young citizens, that is, our children, who are our leaders of tomorrow, innocently litter anywhere and everywhere outside their homes and/or school premises, and in many instances this habit grows uncorrected because these young impressionable children mirror what many of us adults do resulting in a vicious cycle. Many of Nairobi streets and footpaths are littered with rubbish ranging from maize cobs, cigarette butts, fruit skins to plastic papers. City Council of Nairobi owns and operates Nairobis only official landfill disposal site that is located in Dandoras high density residential neighbourhood where a quarter of low income voiceless Kenyans reside. The Dandora landfill is currently filled with approximately 1.3 million cubic meters of waste spread over approximately 30 acres. Dandora is approximately 7.5 km away from the Central Business District, out of sight out of mind. This has serious health consequences to the dwellers and the urban environment at large. In addition, low income areas are largely affected by uncollected rubbish due to poor infrastructure or geographically inaccessible areas and also due to the residents inability to pay for garbage collection services rendered by the Private firms. With the burgeoning population or in this case urban escalation, there is an urgent need for an operational mechanism to be put in place by the Council with the backing of the Kenyan Government to enable the formulation of structures that will encourage the participation of the private sector and the general public in waste management initiatives. Clean Citys main objective is to act as a catalyst towards the green movement, to eradicate the negative effects of environmental degradation where it will promote a cleaner, air pollution-free, urban environment and habitat by equipping the Public with facilities, knowledge and tools, in order to effortlessly segregate their garbage at source, meaning to sort out their garbage at the point of disposal; basically to make this practice a part of their lifestyle. Recyclables are treasures buried in our landfills and Clean Citys underlying desire is to promote the re-use, to enhance well organised and structured recycling systems instead of waste been burnt or dumped in landfills. Recycling is a pollution-reduction strategy and at the same time will save land that is currently being used as landfills. There is an urgent need for the public to unlearn the poor garbage disposal habits and to internalize that the sorting out of Garbage is a proactive approach to a clean habitat that will ultimately be beneficial to them at different demographical levels. 1.1 Objectives Clean City Limiteds endeavour is to have established a fully fledged Garbage sorting business by the year 2012 that will have incorporated the following Objectives: To run an ethical business that involves Corporate Social Responsibility in all aspects of our business activities. To aim for a return on investment of at least 15% yearly To achieve an operating profit of 10% of our total sales Incorporate or win the favour of the public and private sector in promoting waste management in Nairobi To advocate for the withdrawal of Dandora as a landfill plus other illegal dumpsites within Nairobi and to reallocate them to isolated land away from residential areas; and to convince the Council to allow privately owned landfills. To expand our horizons in the wider part of Nairobi and eventually to Kenyan major towns like Mombasa, Kisumu and Eldoret and to further penetrate regionally to our neighbouring East Africa such as Uganda, Tanzania and Rwanda. To exemplify to Kenyan citizens the benefits of garbage sorting. To educate Kenyans on the benefits of untapped or low key recycling business that can be used as a source of income, where scarce natural resources can be obtained, which are currently hampered by the landfill dumping. To introduce Leaf-it Depots where organic waste such as garden waste, grass, food, leaves, wood shavings can be deposited for composting Most importantly, to reinforce Nairobis slogan, The Green City in the Sun and to encourage and educate Kenyans on the paramount importance of living in a clean and healthy environment.    1.2 Mission Clean City Limiteds mission is to provide a garbage sorting framework that will encourage and promote effective and efficient methods of disposing of garbage by using our garbage sorting systems that would eventually enhance the current skeletal recycling business. Our labelled coloured/categorized recycling dustbins equipped with appealing advertisements and educational campaigns will be used as a conduit to achieve this mission. 2.0 Our Business Idea Currently, there are a few privately owned Garbage collecting firms that collect garbage once a week. These firms distribute between 8 12 bags per household for the months use and their charges range from between Kshs.400 Kshs.800.00. The current system involves households paying a monthly fee for garbage collection through their monthly service charge contributions to either an external management company or to their internal management committee, whom in turn organise for garbage collection services. Standalone/Bungalows would directly pay to the service provider. Once the garbage is collected, it is directly delivered to landfills where human scavengers sort out the garbage and sell to recycling plants. The vehicles used for collection and transportation are Lorries without canvas or any other material that can cover the back, therefore the back is left open with the stinky garbage out in the open for all to see and garbage spillage on the roads. Where does Clean City come in? Clean City will deliver an efficient and effective collecting/transporting service but at a premium cost. We shall diffuse in the minds of our clients the idea of an organised disposal/collecting/transportation system, a value for money service that will be a valued added benefit. We shall provide communal huge categorized Dumpsters that will be stationed on communal ground of households that constitute more than 6 units in a compound, where full thrash plastic bags from individual households can be disposed of for collection. We shall also provide our residential clients with service contracts stipulating the standards of proper sorting and disposal. Also included in our contract will be the probability of our refusal to collect garbage that has not been correctly sorted. 2.1 Target Market Residential and Commercial in Upmarket Areas Residential We have taken into consideration that not many apartments are provided with a provision for waste bins which normally is situated in the laundry/balcony area next to the Kitchen and if they are, the space is too limited to accommodate 3-1 recycling bins. However, we still intend to approach apartments and suggest they use 1 bins with compartments, that is, for glass/metal/plastic recyclables and the other for organic/wet and paper, and others. Please see images below. Standalone/Town Houses/Maisonettes have the advantage of spacious verandas and balconies for storage. Shopping Malls, Major Airports, 3-5 Star Hotels, Hotel Apartments, Golf and Social/Sports Clubs and Shopping Complexes we shall place huge Dumpsters in strategic positions please refer to images below. Schools Of paramount importance is to educate the young on the benefits of disposing of garbage in an organised and hygienic manner and to enlighten them on recycling materials. Upcoming Housing we shall also keep a keen eye on upcoming apartments so as to educate developers/real estate dealers on the need to have provisions in households for storing bins. We shall also approach newly completed apartments/standalone housing to enable us incorporate our services before tenants occupy them. Recyclers We have approached 4 major recycling companies PET Recycling Company for plastic waste Central Glass Industries for glass waste Roll Mill Limited for metal waste Pan Africa for paper waste Community based groups for organic matter However, we shall not limit our sale of recyclables to the above mentioned companies. 2.2 Business Model Once we have equipped our clients with the necessary bins and accessories, our Business model which is solely manually based will involve the following process: Each weekday will have a designated Zone or Region for Waste for once a week collections. We shall start off with 3 rear load trucks that have been equipped with a rear hydraulic conveyor lift that will lift Thrush bags into the main hold of the truck. Each truck will have a driver and two support staff, who will assist each other to lift the bags onto the hydraulic conveyor. All the 3 trucks will be dispatched together at any one time to their different zonal schedules. All waste will be delivered to our Waste Holding Site in Karen, where Waste will undergo a final segregation phase. Purchasing hydraulic trucks is a massive investment however this expenditure will compensate for the reduction in labour expenses in the long term. Classified Recyclables will be purchased and collected from us by Recycling Plants on a weekly basis while non-recyclable waste will be dumped at official landfills. Staff Working Hours Working hours will be from 8 am to 5 pm from Mondays to Saturdays. We do not foresee overtime issues, however, in the event of overtime, staff shall be compensated accordingly. No of Supporting Staff 3 drivers 6 staff to accompany drivers 4 staff to be based at our holding site Main Equipment/Accessories We have identified 3 reconditioned Trucks from the United Kingdom, model Personal Protective Equipment Bins and Dumpsters Plastic Garbage Bags Occupational Health and Safety Measures To avoid any job site hazards, we shall comprehensively train our staff on health and safety measures while on duty and also provide them with Personal Protective Equipment that will consist of the following: A pair of heavy duty gloves Jungle Green A pair of high top heavy duty boots/shoes Jungle Green Light weight safety helmet (for comfort due to tropical weather) Lime Green Safety Vest Lime Green Overalls Jungle Green The table below shows the total cost of the safety equipment. ITEM QUANTITY COST PER UNIT TOTAL COST Gloves 13 100 1300 Boots 13 500 6500 Helmet 13 750 9750 Safety Vests 13 500 6500 Overalls 13 600 7800 The Bins will be sold to residential clients while the Dumpsters that come in big sizes will be on rental to commercial clients. The dominant green colour will speak for itself, Clean Citys Green Footprint and the same principle will be applied to our trucks. Our Logo and Corporate colours The following Recycle symbol will be our logo and brand that will be pasted on all our equipment, uniforms and stationery. Our corporate colours are green and white. Our Offices We shall be located in Karen on a 1 acre plot that will be on rental, where most operations will take place. The site will consist of an Admin Office while most of the land will be an open air field with a shed, for sorting purposes. The monthly rental for the 1 acre office in Karen will be Ksh. 75,000/= 3.0 Management Team City Clean is owned by 3 partners, namely Regina Maru, Sheily Shah and Maureen Adhiambo, in the capacities of Managing Director, Financial and Human Resources Director and Sales, PR and Marketing Director, respectively. Once we have our operations running we shall bring on board an Office Manager. Structure, Ownership and Intellectual property City Clean is owned by 3 partners namely Regina Maru, Sheily Shah and Maureen Adhiambo Flat Structure Managing Director Finance Human Resource Director Sales, PR Marketing Director Accounts Clerk Sales Representative Admin Manager Support Staff Managing Director 4.0 Industry Analysis 5 Forces Model Threat of new entrants Already the market is flooded with waste collection businesses that are not following the Waste collection regulations, and the National Environment Management Authority has introduced more stringent regulations and measures to our competitors. NEMA further assured us that they shall not allow new entrants until the Clean Citys sorting/recycling concept has been fully established. Threat of Substitutes Clean Citys existing competitors offer an inferior service. We shall charge our residential customers a one-off fee for the cost of the bins however our service, that is, collection of weekly garbage will be Kshs.500.00 which is similar to what most of our competitors charge per month. Buyer Power Bargaining power of our customers will be low as City Clean has no competitor offering a similar product and service. Supplier Power Bargaining power of our suppliers, in this case, Kenpoly Industries who specialise in plastic, will be low as we are able to source the Bins and Dumpsters from other suppliers both locally and internationally, for example in China. Rivalry the degree of rivalry in the waste collection industry is low as City Clean is introducing a new and superior product and service. 5.0 Marketing Plan 5.1 Our Product and Service Clean City is entering a niche market as this concept has not been introduced in Kenya, in fact countries worldwide that practice this healthy habit are few and far in between. It will be a new phenomenon in Kenya that we know will be received with mixed reactions; however, we are also very confident that we shall eventually have a good footing. Clean City will have a competitive advantage as no other Company in Kenya or even East Africa offers a similar product or service, neither do any of the other garbage collecting companies have automated hydraulic trucks that shall be in use. Our marketing strategy focuses on differentiation due to its nature of providing a value added benefit, uniqueness, affordability, profitability, superiority and ultimately giving us a competitive edge. Clean City is two-fold as it shall provide both a product and service. Our product has 4 facets that are interdependent of each other and these are the Bins, Garbage plastic bags, Dumpsters and Trucks while our service will involve the collection of pre-sorted waste that will be delivered to Recycling Plants and Landfills. Clean City shall have 5 or more classes of beneficiaries/customers at both ends of its supply chain as follows. The following table illustrates that Customers falling under 2 will benefit from our product while the rest will be benefit from our service. Customer Description of Benefit 1 Nairobi City Council Gradually reducing the size of the Dandora Landfill and assisting and advocating for its reallocation. 2 Household and Commercial Providing education and tools to sort waste 3 Compost Manufacturers Providing pre-sorted green waste 4 Recycling Plants Providing pre-sorted recyclable material 5 Animal Farms, example Pig Farms Proving pre-sorted food waste 5.2 Product Description Our Bins and Dumpsters will be custom-made to match the quality of imported Bins that are used in developed countries; however, City Cleans will be available at lower prices. The Bins that shall be rectangular in shape will come in 2 varieties; either with 2 or 3 partitions for recyclable waste which will be influenced by the amount of storage space available. A sample of Truck Leyland truck each  £6500.00 CIF. The government has kindly granted us freight clearance charges and government tax subsidies. Specifications 4 tonnes 62 midlift Hydraulic lift Vulture body Double bin lift Cummins engine A sample of Dumpsters. Size Specifications for Dumpsters Length 72 inches, Width 16 inches, Height 40 inches -For General Waste, Organic/Food, Glass, Metal Cans, Plastic Bottles/Containers. Each dumpster costs Ksh. 3500/= A sample Bins we shall supply both the 3-in-1 and 2-in-1 depending on household storage space. The size specifications for the Bins per partition Length 12 inches Width 12 inches Height 24 inches Green will symbolize organic and food waste Brown will symbolize general waste Yellow will symbolize glass and plastic bottles/containers and metal example Metal and Aluminium Cans/Tins. 5.3 Marketing Budget KES. Designing and Printing of Fliers 100,000 500,000.00 Mazingira Advertisements A4 size quarterly 80,000.00 Facebook Advertisements 15 days per month for 3 months 7,200.00 Purchase of .com Website and Design 20,000.00 Roadshows 4 times a month 40,000.00 5.4 Costs of Official Launch of City Clean To facilitate the official launching of Clean City, we have humbly requested the presence of Minister for Environment and Mineral Resources, Hon. John Michuki, the Environmentalist Activist and Nobel Peace Price Winner 2004, Ms. Wangari Maathai and the Director General of NEMA, Mr. Muusya Mwinzi and UNEP top officials, just to name a few. The launch programme will be brief and will mainly consist of a few speeches and refreshments. The venue will be at our Karen site. Costs of Tents 20,000.00 Refreshments 10,000.00 5.5 Promotional and advertising plan To build a customer database of a minimum of 2000 households within the next 12 months To build leads of at least 50 households and 10 Firms per week Advertise our services by distributing 1000 pamphlets/fliers to 50 households per week Give a personal touch by sending seasonal promotional representatives to deliver our Bins and Dumpsters door to door and illustrate the use, features and benefits of the Bins and plastic bags to our customers, with an aim to minimise resistance. Advertise our services on Facebook, Twitter Myspace and send out e-shots to a minimum of 50 per week Launch our website www.cleancity.com and invite internet users to join Advertise on Environmental magazines such as Mazingira We have already received backing on financial sponsorships from organisations we plan to partner with, UNEP has so far given us a pledge. 5.6 Pricing Strategy The pricing strategy of clean city will be quite similar to those of the prevailing competitor firms. The following figures depict the pricing strategy. For the services the company will charge households Ksh. 500 per month and Firms Ksh. 800 per month. A pack of a months supply for households bin bags will cost Ksh. 150 and those for firms will cost Ksh. 200. During the first month, households will have to purchase bins which will be sold in 2 varieties, 2 in 1 and 3 in 1. The 2 in 1 will be sold for Ksh. 700 and 3 in 1 for Ksh. 850. The firms will have to purchase huge dumpsters which will cost them Ksh. 3400. We will assure that the quality of all these materials is high and durable. 5.7 Market Segmentation Our target market is solely in upmarket areas that include residential homes, shopping malls, Cineplexes, 4 and 5-Star hotels and upmarket schools. 6.0 Operations Plan 6.1 Licensing and Registration Requirements NEMA The National Environment Management Authority, who is Kenyas Government Parastatal that has been given the mandate to act as Kenyas Environment Authority, has given us the required framework for all the licences and waste management policies, procedures and regulations. NEMA officials were very impressed and assured us of their full support. The cost of acquiring the licence and other regulations would be a total of Ksh. 65000. 6.2 Operating and Control Systems In order to have the operating and control system in place, we will purchase 2 computers and softwares. Our staff is already well trained in maintaining these systems and thus we will not spend on training more staff. Each computer will cost Ksh. 35000 and each software will cost Ksh. 10000 6.3 Accounting and Cost Cutting Controls We shall have computerized accounting systems with Software designed for book-keeping purposes. We also shall have an Electronic Tax Register that can calculate Value Added Tax and keep a record of our stock and daily sales. Fuel Consumption We shall sign contracts with only one fuel station close to our Site in Karen, where our Trucks will be fuelled using fuel cards, to avoid cash changing hands and to keep abreast with our fuel consumption. We shall also fit in all our trucks an anti-fuel theft device to stop any fuel siphoning. The fuel cost per month will be Ksh. 30,000 for each truck Therefore for 3 trucks a total of Ksh. 90,000. Mileage We shall take down Mileage readings of our trucks on departure and arrival on a daily basis. Performance Controls Applying Total Quality Management by incorporating benchmarking, through regular collections and comparisons of customer data in form of surveys and focus groups For effective communication purposes, our trucks will be equipped with VHF radios and a base station radio at our Site. Our trucks will undergo regular servicing to ensure effectiveness and efficiency We shall adhere to all the Governments regulations and ensure timely licence renewals 6.4 Financial plan: Accompanied summary: Company was formed in January and no revenue was earned during this period, therefore the financial projections commence from the month February 2010 when actual operations start. Target of having a customer base of 2000 households in a year and 500 firms in a year. 10 dumpsters will be purchased initially. Further dumpsters will be purchased as demand increases. Utility costs include telephone, water, electricity and internet. Salary Structure: 3 drivers @ 15,000/= each, 6 support staff @ 12,000/= each, 4 staff at holding site @ 12,000/= each. Each truck costs  £ 6500; 6500*127.945449 (exchange rate) = Ksh831, 645/= During the first month, we expect to have a customer base of 200 households and 10 firms; we expect these figures to gradually increase by 35% each month. Households will be charged 500 a month and Firms will be charged 800 per month. Sale of recyclables per Kg Ksh 10/=. We assume each household accumulates waste of approximately 2kg everyday out of which 1.5kg is renewable. Each firm accumulates 10kg of renewable waste per day. A pack of one Bin bag for households (medium size) that contains 30 bin bags for a month supply costs Ksh 150 /= A pack of one bin bag for Firms (Large size) that contains 30 bin bags for a month supply costs Ksh 200/= We assume each month half the new household customers purchase 2 in 1 bin whereas the other half purchase 3 in 1. Therefore initially we expect total households customers of 200; 100 will purchase 2 in 1, the other 100: 3 in 1. Consequently each month the 25% increase in customer base will follow the same trend. The 2 in 1 Bin will be sold for 700/= whereas the 3 in 1 will be sold for 850/=. Dumpsters are purchased for each firm @ 3500/= per dumpster. Break Even point i.e. when total revenue is equal to total costs and net profit is zero. After Break even point Clean City will start making profits. From the graph, the Break Even point is marked as 5.5 which is mid May 2010. After the 1st year, in the projections for the 2nd and 3rd year, we expect the number of customer base for both households and firms to increase by 15% annually. From the second year, we will depreciate the trucks and the office furniture on a straight line basis. The percentage annual depreciation will be 5%. The fuel cost for the 2nd and 3rd year will increase by 15% each year. This is attributed to increases in oil prices as well as increased demand of services and therefore more distance to be covered by the trucks. The initial cost of set up is presented in the table below: Item Quantity Cost per Unit (Ksh) Total cost (Ksh) Hydraulic Trucks 3 831,645 2,494,935 Gloves 13 100 1300 Boots 13 500 6500 Helmet 13 750 9750 Safety Vests 13 500 6500 Overalls 13 600 7800 Acre Plot in Karen 1 75,000 75,000 Purchase of website 1 20,000 20,000 Cost of purchasing office furniture 1 50,000 50,000 Cost of computers 2 35,000 70,000 Cost of software for each computer 2 10,000 20,000 Licensing and registration 1 65,000 65,000 Anti siphoning device for each truck 3 5000 15,000 Cost of Launch 1 30,000 30,000 TOTAL START UP COST: 2,871,785 PROFIT AND LOSS ACCOUNT PROJECTIONS YEAR 1 2 3 Revenue: No of Households 15545 17877 20558 Price charged per Household 500 500 500 Total revenue from households 7772500 8938375 10279131 No of Firms 1013 1165 1340 Price charged per Firm 800 800 800 Total revenue from Firms 810400 931960 1071754 Sales of recyclables 7299150 8394023 9653126 TOTAL REVENUE 15882050 18264358 21004011 Expenses: Rent 900000 900000 900000 Salary 1980000 1980000 1980000 Utility 84000 84000 84000 Security 60000 60000 60000 Administration Costs: Stationary cost 24000 24000 24000 depreciation of office furniture 2500 2500 2500 loan repayment 565357 565357 565357 Truck expense: Depreciation of trucks 124747 124747 124747 Fuel (30,000 per month per truck) 1080000 1242000 1428300 servicing charges (10,000 per truck) 360000 360000 360000 Cost of Purchasing Bin bags 2534350 2914503 3351678 Cost of purchasing Bins: 3 in 1 443275 990994 1139643 2 in 1 365050 816113 938529 Dumpsters 245,000 531825 611599

Ginsters Report

GINSTERS Table of Contents Introduction and Background Ginsters is the main brand of the Samworth Brothers, a privately owned family business active in various food sectors. Its product range includes pasties, savouries, pies, wraps and sandwiches. Ginsters is based in Callington, Cornwall. The brand has been building its credentials as authentically Cornish and a local product with local ingredients. More recently it’s also trying to associate its brand with the image of fresh and quality ingredients. This is reflected on packaging, advertising and new product development (Ginsters Official website, 2010). The task at hand is to discover the Critical Success Factors for Ginsters, therefore analytical tools and frameworks were used such as SWOT, STP and the Marketing mix analysis. The external and competitive environment were also analyzed. The first section includes the critical evaluation of Ginsters’ CSFs, while the second section is concerned with developing recommendations for a three-year strategy for the firm. 1. Ginsters’ Critical Success Factors 1. 1 CSFs According to Rockart and Bullen (1981), Critical Success Factors (CSFs) are the limited number of ways and the factors that are fundamental for the continual successful performance of a company. The identification of CSFs is important because it allows organizations to focus their efforts on building their capabilities to support their CSFs. On the other hand, it may even allow firms to assess whether they have the capabilities to develop the necessary requirements to meet CSFs. Daniel (1961) was the first to introduce the concept of CSF. The concept was then used to assist in defining the CEO’s information needs that are most critical for a business (Rockart, 1979) (Zwikael and Globersonz, 2006). The CSFs method is straight-forward, however it has a complexity as it can be viewed from several perspectives. Geller (1985) points out that CSFs can be generic to a given combination of conditions in the industry, market and external environment. They can also be context specific in terms of the organization. Furthermore, Rockart and Bullen presented five key sources of CSFs, the industry, competitive strategy and industry position, environmental factors, temporal factors, and managerial position. It is also important to note that CSFs can be monitored or measured to ensure they are still important and valid as they can change over time (Brothererton, 2004). 1. 2- Human resources development The first CSF for Ginsters is its ability to develop human resources. Embedded in its strategy is the recognition that people are important assets of the organization (Ginsters Official Website, 2010). This is evident as it achieved the status of top-service supplier to UK supermarket giant Sainsbury’s. Ginsters came up with a way of enhancing the efficiency and productivity of its workforce. It designed and implemented a unique branded management-development program, which it dubbed ‘‘Platinum’’ (Politt, 2006). This cut staff turnover to half, mitigated absenteeism, increased staff stability, reduced production-line down time building on improved relationships between engineering and production, and succeeded in offering higher services to its supermarket customers, following the introduction of a new training course (Politt, 2006). . 3 Brand Image and Advertising A full STP analysis conducted for Ginsters (see Appendix) has derived important conclusions on Ginsters success factors. The decision to produce and distribute products solely in the United Kingdom has ultimately been positive and successful for the company, as it has increased its UK cus tomer base. In 2009, Ginsters spent over 1 million pounds on advertising, which has generated considerable attention for the company (Mintel Report, 2010). Ginsters has consistently used advertising and it leads the pack in the pies and pastries category of the market (Mintel Report, 2010). This is important and is evident through its great brand reputation along with goods that represent quality and trustworthiness. Ginsters has always promoted its Cornish heritage, emphasizing the importance it gives to local sourcing and the use of 100% British ingredients. The brand has also evolved immensely. Ginsters marketing scheme has developed to highlight the importance of quality ingredients that are put in the pasties. This is of critical importance because consumers are confident that Ginsters products will deliver on quality and taste. Understandably, the pie and pastry industry is highly competitive with Ginsters competitors being able to produce virtually all the products that Ginsters is able to produce. That being said, Ginsters success lies in its convenience and impulse sector largely due to sales of chilled savoury pastry. In fact, Ginsters has been recognized as the number one ‘food on the go’ brand in the last four years (Doonar, 2004). 1. 4 Fragmentation of mealtimes and rise of chilled food industry & The ability to target and reach segments of market These are two important and correlated success factors for Ginsters. The chilled and prepared foods market has evolved in the past 10 years and has become a very dynamic area of the food market. This is largely due to the trend in consumer behaviour where lifestyles are influencing mealtime. This has made mealtimes more fragmented, informal and less important. This environmental social change has resulted in suppliers and retailers placing more emphasis on the chilled cabinet. Moreover demand for chilled foods has soared. This is a type of environmental CSF is one in which the firm has no control over. However, looking at Ginsters reaction to this environmental change is also a strategic critical success factor. Ginsters understood the impact of these changes on consumer purchasing behaviour and they adapted their products to meet this demand. This becomes clear in their ability to target the largest group that conforms to this environmental change, which are young people and business professional, and reaching their target by presenting their products in the right locations such as petrol station, convenience stores and university union shops (Keynotes food industry report, 2010). Ginsters has also benefited from getting the right product mix to serve their target market as the SWOT analysis shows that its products are location independent, convenient, deeply filled, easy to eat and not unhealthy (Mintel Report, 2010). 1. 5 value chain Another critical success factor of Ginsters has been the way it incorporated its value chain. In terms of inbound logistics, Ginsters has chosen a direct channel approach that is characterized by low proximity. The place of Ginsters manufacturing facility is within a 20 mile radius of the raw material providers. It forms a vertical marketing system (VMS) and more specifically an administered VMS. This type of cooperation helps Ginsters have a great degree of control. The system provides 35% of the total raw materials and the target is to reach 50% (Hunt, 2005). Furthermore, concerning operations, increased investments in production technology by introducing automation systems with quality control, ensured the end-quality of the products and also decreased costs (Growth at Ginsters, 2004; Drives cut pastry production costs, 2009; Keeping an eye on the Pie, 2002; Accurate pack coding easy as a pie, 2005). Outbound logistics have also been a subject of focus for the company with a fleet of vans that place emphasis on delivering to 10000 companies during the peak hours (Brooks. 2004). A company-owned distribution system makes it possible to plan and incorporate delivering objectives, as relying on others would have made that difficult. Recommendations for three year strategy The UK has been one of the major economies that are still in recession. Due to the economic crunch, businesses are facing grave troubles to cope with their existing businesses and are trying to raise capital for investment into new businesses. Therefore, Ginsters should focus on improving its existing capacity and making better use of its factors of production. This can be achieved by reducing its working capital, increasing inventory turnover and implementing employee learning and performance improvement training programs similar to the platinum program undertaken 4 years ago (refer to 1. 2). However, the company must establish some long term objectives as there are signs of recovery for the UK economy in the years to come. The Bank of England estimates that the economy will get back on track by 2011 and the HM Treasury has published independent forecasts predicting that by the same year the GDP growth will be a mean 2%. It should plan for the development of smaller markets and target market segments which although less in size, have excellent expected growth rate. Ginsters is targeting youth and working people, but without offering Halal foods as compared to their competitor Pukka pies. According to The Times UK, Muslim population has been increasing 10 times faster than the rest of the communities in the United Kingdom. It has grown by 0. 5 million and reached 2. 4 million in four years from 2004 to 2008 and expected to grow at the same pace as revealed by office of national statistics. Therefore, Ginsters should adopt a market development strategy to target the Muslim community in the UK. It can incorporate this strategy by introducing it into the heavily populated Muslim areas. Ginsters has been spending a lot money on advertisements and has been successful in conveying the positive image of the company to the people. Its latest TV brand shows that it puts quality ingredients in its products, but it does not convey the clear message that its food is more healthy. According to the survey conducted by Mintel, 16 % of people think that Ginsters food is unhealthy as compared to its competitor Pork Farms which was marked unhealthy by only 12 % of them (Mintel, 2010). The reason for this misconception may have arisen from its marketing slogan, ‘Real Honest Food’. This portrays that Ginsters products are of quality and authentic, however fails to demonstrate that it has taken healthy eating into consideration. Therefore, the firm should seriously plan for new advertisements and promotions that give a more clear picture of Ginsters as a healthy food manufacturer. To convey the idea of healthy foods, the company should take advantage of the ongoing and upcoming events that represent Ginsters target market and could be helpful in promoting its message. It is recommended that Ginsters should become an official sponsor of the 2012 Summer Olympic Games. It can make new and innovative advertisements in the Olympic Games that can help produce a healthier image. Sponsorship will also enable the firm to increase the awareness of its products and influence consumer behaviour patterns thereby leading to increased sales. It will also help to enhance the brand image in target groups’ minds and develop a disposition to change behaviour towards buying the promoted brand, thereby leading to improved revenues (Smolianov et al,1999). Ginsters support of a major international event will help in conveying its message to billions of people more accurately and positively. It costs nearly 10 million pounds to become a three tier sponsor. Ginsters had pre-tax profits of 45. 2 million in 2009 and paid dividends amounting to 16. 2 million, up from 14 million in 2008 (Bloomberg Database, 2010). Assuming a stable dividends growth, there is the potential for worldwide promotion and brand recognition. Instead of paying dividends out, it should deposit them with a bank or place them in investment grade securities in order to grow at an amount sufficient enough to secure a place in the top sponsors of the Olympic Games. TV advertising during the Olympics will also increase brand awareness among live audiences who watch TV broadcasts, which will ultimately pave the way to Ginsters going global. In 2008, a record breaking 70 million viewers tuned to NBC to watch the opening ceremony, not mentioning the other international broadcast stations (The Washington Post, 2010). The cost for a 30 second spot is expected to reach the 400. 000 USD level, signifying the importance of the particular event. In Ginsters case, the advertising strategy should include all forms of digital and physical advertising (television, radio, press, online, billboard, in-store etc. . In late 2009 Ginsters decided to redefine its brand image and target a broader market segment. It tried to appeal more to mothers and fathers while dropping its image as simply a snack. To continue to accomplish this, a massive advertising campaign is desperately needed. Along these lines, the company should negotiate a deal with BBC1 and ITV1 to spo nsor the most popular programs in UK television. Programs that aim to captivate the interest of thousands of British families, which comprises the new target group for Ginsters. Such programs would include â€Å"Eastenders†, one of the most watched and long running soap operas, â€Å"Coronation Street†, the longest running drama series in the world still to be in production and â€Å"X Factor† a singing competition with over 13 million viewers each week (Broadcaster’s Audience Research Board, 2010). Appendix STP Analysis: | Ginster’s| Pukka Pies| Segmentation| Products are sold exclusively in the United Kingdom highlighting the fact that Ginsters is a domestic company. Products are grouped towards the younger population of both sexes due its convenience. The family appeal is one in which Ginsters strives to achieve as they portray a family environment in their advertising. Socio-economic class is not of vital importance with Ginsters as they want to cater to the complete market. The upper class can rely on a quality product while the lower class can rest assured that the product is competitively priced. | Products are sold all across Europe. Countries include Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Malta, Portugal, Spain, and the United KingdomProducts are grouped for people of all characteristics, specifically the middle-class family. With a wide variety of products including frozen and chilled pastries, it is important for Pukka Pies to capture the full European market, rather than segment. | Targeting| Products are targeted towards the young students as evident in their separate online education portal and their collaboration with different colleges and universities. Also, they are actively involved in surfing, football, and music festivals which appeal to young generation. They targeted the meat eating and non-Islamic sector as they do not have a Halal pastry| Products are targeted towards outgoing events to garner considerable public interest. Examples include the Pukka Pies England band as well as major sponsorships to major sporting events. | Positioning| The pie and pastry market is a competitive one in which each company does not differentiate it s positioning too much. Ginster’s remains unique and relevant amongst its United Kingdom customers by positioning its domestic appeal. Ginsters have strategized to provide quality food for a reasonable price. As compared to competitors, Ginster’s is ranked amongst the top for pricing. Quality is of utmost importance and therefore they position themselves to advertise quality and honesty of foods. Media advertising, over 1 million pounds in 2009, was largely concentrated on the target markets including students and mothers. This was done by adding more sandwiches to cater to women as well as advertisements at sporting and recreation events for students. | The differentiation by Pukka Pies is their international appeal. They strive, not solely to dominate a market, however to diversify themselves into different markets. Penetration strategies is their positioning technique as their products are available across Europe. | Marketing Mix Analysis Products: Ginsters has got a huge product line consisting of 58 types of pasties, slices, pork pies, hot pies, savories, sandwiches and wraps as compare to its competitors, pukka pies and pork farms. All Ginsters raw material comes from the farms and suppliers present in Cornwall. They have different specialize supplier who provides them with fresh and pure raw material. These farms and suppliers includes Hay farm, torpoint for vegetables, Bocaddon farm, Lanreah for Cornish soft cheese, Cornish orchards, duloe for apple juice to capture that authentic west country flavour, jaspers of treburley for beef and David stone creamery for fresh cheese. Ginsters official website, 2010) Ginsters focus on Chilled products whereas Pukka pies have variety of categories including frozen backed, chilled backed, frozen backed wrapped, frozen unbaked range, frozen pastry (Pukka pies official website, 2010) If we analyze Ginsters product line we find that they have 21 types of different sandwiches as compare to pies and pasties which are few in numbers (Ginsters official website, 2010). Whereas Pukka pies and pork farms have less variety than Ginsters. Pukka pies have some additional flavour of pies including kidney and potato and they also sell halal food (Pukka pies official website, 2010). Furthermore pork farms have bakes and scotch eggs (pork farms official website, 2010) Price: Ginsters product pricing is almost same as compare to Pukka pies and pork farms. For example steak pies from Ginsters and Pukka pies cost exactly 1 ? but in some cases Ginsters is expensive for example Ginsters pork pie is 1. 29 ? and Pork farms pork pie is 0. 91 ? (Tesco Official website, 2010). Therefore we can say that Ginsters have a comparable pricing strategy with most of its product line but with some of the market leading products they show skimming pricing strategy as well. Place: Ginsters only Target UK market. They follow wholesale sale strategy. They have distributors all over UK. They keep their products in big super markets like Tesco, Sainsbury etc. The major area where Pukka pies leaves Ginsters behind is its sale locations. Pukka pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. Pukka pies official website, 2010) Promotions: When it comes to promotions, Ginsters are spending a lot of revenue on advertisement and promotional activities like charity, supporting local teams etc. The differentiating part of Ginsters promotional activity includes collaboration with different universities including Plymouth University and community colleges at Callington, Launcest on, Tavistock and Saltash colleges and universities. Ginsters also have their online educational portal. This shows that they are targeting youngsters from schools, colleges and universities. For the new promotions Ginsters is focusing on introducing some fruit pies as well. Their promotional strategy seems to be product benefit advertisement strategy. As compare to Ginsters Pukka pies have a large variety of souvenirs including footballs, posters, cups, caps etc. They have an online portal where people can buy their souvenirs. As compare to both of them pork farms focus on introducing new packaging and actively conduct live shows with consumers to test their products and tells them of their products taste. Pork farms are teaming up with Peperami and Branston to launch a number of co-branded recipes. The new partnerships will see a Spicy Hit sausage roll with Peperami and two Pickle Hit sausage rolls – one with Branston Pickle and cheese and one with Branston Pickle and sausage meat – available from mid-March 2010. The company is also launching a Pork and Branston Pickle Pork Pie. (Ginsters official website, 2010; Pukka pies official website, 2010; Pork farms official website, 2010) SWOT Analysis: Strengths * Product variety in comparison to competitors places a strong emphasis on new product development to create innovative, exciting products to enhance its core product range. Ginsters launched mini pasties in Q2 2010 to tie in with the upcoming picnic season and the on-the-go snacking market. * Ganisters position in more than one market and covering them successfully due to their diverse products * Ginsters’ products have a number of characteristics that make them a highly popular lunchtime food firstly their products are location independent and can be eaten practically anywhere. Secondly their products are convenient and can be found in many locations. Furthermore their products are filling and positioned as big eats. Finally the products are easy to eat and are pre-packed. * Advertisement and promotion strategy Ginsters’ promotional activities have always highlighted its British provenance and local sourcing. Moreover their brand image Fresh and hygienic food which is and advantage in the current customer behaviour trends. * HRM program that allows for organisational learning * There supply chain is short therefore saves them money and increases quality * Manufacturing processes are fully automated speed up production and inspection and quality programs to be easy. Weaknesses The product range is not comprehensive and there are some niches they did not cater for, such as the vegetarian market the Halal and Kosher markets. * Ginsters operate only in the UK where competitors such as Pukka Pies operate internationally they are pies are selling in Austria, Cyprus, France, Gibraltar, Greece, Holland, Hong Kong, Ibiza, Lanzarote, Malta, Portugal, Spain and Tenerife other than UK. * Although Gins ters are trying to convey that they are a healthy product. This message is not reaching other market segments, such as women and families. There image as a healthy product is not strong. Despite a high rate of new product development, the favourite lines continue to be the BLT, prawn mayonnaise, cheese and pickle, chicken salad and egg and cheese Opportunities * Increase emphasis on health awareness products. Interest in healthy eating will undoubtedly outlive the recession and there is scope to increase the number of functional products in many areas of the market. * Ginsters can explore minority market niches such as, vegetarians and Halal foods. This can be achieved by new product development. * Utilisation of production capabilities by exploring International markets, as competitors are present outside the local market. Despite the recession, sales of indulgence products such as desserts may also grow if suppliers can position the products as relatively inexpensive treats. Threa ts * One of the longer-term challenges that the pies and pasty category will face is whether consumers will stick to the category when the economy improves and they have more disposable income. Pies and pasties offer consumers a low cost meal that is convenient, but does not tick the healthy eating box and so requires manufacturers to find ways to reformulate their product ranges to make them healthier. When looking at the things that worry consumers the most, their financial situation and the economy supersedes any concerns they may have about their health, so while they face financial challenges, the health credentials of the food they are eating may be of less importance if it proves to be more cost efficient. * Ginsters needs to ensure that they maintain their above-the-line support of their brands to ensure they are top of mind when consumers are looking for a quick snack. The recession will strengthen the appeal of own-label products and consequently affect NPD and marketing, which will culminate in undermining value growth in the market. References Accurate pack coding easy as a pie (2005). Packaging Magazine, 8 (1), pp. 18-19. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed:10 November 2010) Bank of England Quarterly Bulletin (2007). 2nd Quarter, 47(2), pp. 317-329 Bloomberg Database (2010). Available at: http://www. bloomberg. com (Accessed: 6 November 2010) Broadcasters Audience Research Board (2010). Available at: http://www. arb. co. uk (Accessed: 8 November 2010) Brooks, Bob. (2004). â€Å"Cornish Convenience†, Food Manufacture, 79 (1), pp. 26-27. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed: 10 November 2010) Brothererton, B. (2004). â€Å"Critical Success Factors in the UK Corporate Hotels†, Sevice Industries Journal, Vol. 24 NO. 3, 2004, pp19-42. CHENG, E. W. L. and LI, H. (2001). â€Å"Analytic Hierarchy Process: An Approach to Determine Measures For Business Performance†, Mea suring Business Excellence, Vol. 5 No. 3, 2001, pp. 30-37. Daniel, R. H. , (1961). Management data crisis. Harvard Bus. Rev. , 1961, Sept–Oct, 111–112. Doonar, J. (2004). â€Å"Pasties and pastures new: Joanna Doonar interviews Mark Dudderidge, the managing director of Ginsters and discovers that society's preoccupation with obesity is not holding back the growth of the Cornish pasty company† Brand Strategy. EBSCO (Online). Available at http://www. ebscohost. com (Accessed: 01 November 2010) Drives cut pastry production costs (2009). Works Management, 62 (11), p. 29. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed: 10 November 2010) Ginsters official website (2010). Available at: http://www. ginsters. co. uk/ (Accessed: 10 November 2010) Growth at Ginsters (2004). Food Manufucture, 84 (2), p. 7 EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed: 10 November 2010) Hunt, Gail. (2005). â€Å"Local Champion†, Food Manufacture, 80 (2), p. 35. EBSCOhost [Online]. Available at: http://web. ebscohost. com (Accessed: 10 November 2010) Johnson, A. (2010). â€Å"Forecasts for the UK economy: a comparison of independent forecasts† HM Treasury, Issue 281. Keeping an Eye on the Pie (2002). Food Engineering ; Ingredients, 27 (4), p. 47. EBSCOhost [Online]. Available at http://web. ebscohost. com (Accessed: 10 November 2010) Politt, D. (2006). â€Å"Golden Outcome of Ginsters Training† HRM International Digest, 14(1) Pork farms official website (2010). Available at: http://www. pork-farms. co. uk/index. html (Accessed: 10 November 2010) Pukka pies official website (2010). Available at: http://www. pukkapies. co. uk/ (Accessed: 10 November 2010) Rockart, J. and Bullen, C. , 1981. A primer on critical success factors. Center for Information Systems Research Working Paper No 69. Sloan School of Management, MIT, Cambridge, Massachusetts Rockart, F. R. ,(1979). Chief Executives define their own data needs. Harvard Bus. Rev. , 1979, 57(2), 238–241. SUN, H. and CHUNG, W. W. (2005). â€Å"Critical success factors for new product development in the Hong Kong toy industry†, Technovation, Vol. 25, No. 3, March 2005, pp. 293-303. Tesco official website (2010). Available at: http://www. tesco. com (Accessed: 10 November 2010) Zwikael. O. ; Globersonz, S. , (2006). â€Å"From Critical Success Factors to Critical Success Processes†, International Journal of Production Research, Vol. 44 No. 17, 2006, pp. 343-3449.

The Forbidden Truth About Homework Help Uncovered by an Old Pro

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Use of the Observational Method in Qualitative Research Essay

Introduction For a century, researchers in many disciplines and fields have widely used the approach known as qualitative research in their studies. There are many definitions of qualitative research that have been provided. Following are some of the definitions of qualitative research: â€Å"Qualitative research is a research strategy that usually emphasizes words rather than quantification in the collection and analysis of data.† (Bryman, 2008, p.366). â€Å"Qualitative research is an umbrella term for an array of attitudes towards and strategies for conducting inquiry that are aimed at discovering how human beings understand, experience, interpret, and produce the social world.† (Sandelowski, 2004, p.893). In the above definitions,†¦show more content†¦Role of observational data and key characteristics of the processes of data collection and analysis. Observational data is one of the basic and oldest method to collect data used by the researchers in their daily activities during the research. Patton has defined observation method as a â€Å"descriptions of activities, behaviours, actions, conversations, interpersonal interactions, organisation or community processes or any other aspect of observable human experience.† (2002, p.4). By describing and recording all the data gathered from the observation, observational data can shows a comprehensive description of the incident and provides an insight to the scenario or setting. Observational data can be gathered by selecting a site to be researched or observed in order to gain in depth understanding of the research. At the site, researcher needs to carry out the observation in a very descriptive way. 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