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REYNOLDS FRUITS CATERING
Student Name: Student Number
Prince Osei 15125059
Loise Nganga 16141870
Jacqueline Nkya 16141357
Md 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 andThreats
• SWOT
• Reference
Mission Statement
Our 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 Values
Promoted 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
• Strategy
Product Quality
Price differentiations
Strategic alliance with the use of
growers
• Skills
Speciality procurement team
dynamic and experts field
personnel
Supplier chain development
• Staff
Both skill and unskilled staff
Train staff to understand the
need to improve customer
handling in order to aid sales
• Structure
flat 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 Value
Believe in teamwork & Openness
Diversity 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 Place
b. Media Centre
c. Sponsorship
d. Website
e. B2B
Inbound
a. Staffs
b. Training &
Developments
c. Driver
development
d. Reusable crates
scheme
e. In house
technical
capability
Operations
a. Long term
contracting basis
b. 17 growers
c. 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
Technology
Using internet (website) to promote itself
ValueAdded,Lesscost=
profitmargin
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 F
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 firms
Easy 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 opportunityCapability
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 threat
Capability
Competent Prepared
Monitor Defenceless
0
10
1
5
8
3
4
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 analysis
Strengths 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 Threats
1. High demand in Exotic products
2. Securing long term relationship
3. Entering supply chain agreement ie: forward and backward integration
4. Creation of Niche market
5. Taken advantage of EU Free Trade Agreement
6. Innovation and Price differentiation
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
Office (CPVO)
1. Economy stabilising: Increase in interest rate
2. Rate of technological development
3. Intense competition
4. Substitute products ie: Snack, Processed fruits
5. Possible adjustment of taxes in the UK
6. Labour cost
7. Inflationary Pressures
8. Fluctuation or fall of the Pound (£) to majority of trading currencies
9. Unreliable weather pattern globally
10. Brexit uncertainties and market volatility impact
References
a. 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
THANKYOU FOR
LISTENING!

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Reynolds final presentation

  • 1. REYNOLDS FRUITS CATERING Student Name: Student Number Prince Osei 15125059 Loise Nganga 16141870 Jacqueline Nkya 16141357 Md Najmus Saqib 16147918
  • 2. 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 andThreats • SWOT • Reference
  • 3. Mission Statement Our 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
  • 4. Corporate Values Promoted 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
  • 5. 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
  • 6. 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
  • 7. 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)
  • 8. 7S framework McKinsey • Strategy Product Quality Price differentiations Strategic alliance with the use of growers • Skills Speciality procurement team dynamic and experts field personnel Supplier chain development • Staff Both skill and unskilled staff Train staff to understand the need to improve customer handling in order to aid sales • Structure flat 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 Value Believe in teamwork & Openness Diversity and equal opportunity, Work as a family unit Strategy Structure Systems Style Staff Skills Shared values Reynolds s (2016) website
  • 9. Corporate resources: Porters value chain Marketing & Sales a. Market Place b. Media Centre c. Sponsorship d. Website e. B2B Inbound a. Staffs b. Training & Developments c. Driver development d. Reusable crates scheme e. In house technical capability Operations a. Long term contracting basis b. 17 growers c. 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 Technology Using internet (website) to promote itself ValueAdded,Lesscost= profitmargin 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
  • 10. 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
  • 11. 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)
  • 12. 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 F
  • 13. Competitor brand perceptual map: Fruits and vegetables High Quality Low Price Munneries Suffolk Produce Ltd High Price Low Quality
  • 14. Industry Life Cycle Market Introduction stage Growth Stage Maturity Stage Decline Stage CBI (2016)
  • 15. Monopolistic market Lots of firms Easy 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
  • 16. Probability of opportunityCapability 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)
  • 17. Probability of threat Capability Competent Prepared Monitor Defenceless 0 10 1 5 8 3 4 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)
  • 18. SWOT analysis Strengths 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 Threats 1. High demand in Exotic products 2. Securing long term relationship 3. Entering supply chain agreement ie: forward and backward integration 4. Creation of Niche market 5. Taken advantage of EU Free Trade Agreement 6. Innovation and Price differentiation 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 Office (CPVO) 1. Economy stabilising: Increase in interest rate 2. Rate of technological development 3. Intense competition 4. Substitute products ie: Snack, Processed fruits 5. Possible adjustment of taxes in the UK 6. Labour cost 7. Inflationary Pressures 8. Fluctuation or fall of the Pound (£) to majority of trading currencies 9. Unreliable weather pattern globally 10. Brexit uncertainties and market volatility impact
  • 19.
  • 20. References a. 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