You manage an international food company
with headquarters in Yorkshire in the North of England. The company
started over 100 years ago making baked sweet goods ?" cakes and pies. In the course of the last 25 years you have taken over five similar companies
in Switzerland, Denmark, France, Germany and Belgium creating a large portfolio of biscuits, chocolate and sweet baked goods, many of which are local brands to only one or two countries.
A high profile merger three years ago between your company
and an American food company
that specialises in canned fruit, fruit juices and baked products containing fruit has expanded your operations outside Europe. The merger has helped you access markets in the Middle East and Africa. Your company
is listed on the London Stock Exchange.
Most of your brands are household names; brands that customers expect to see in most supermarkets and smaller shops. You have also started to supply some low cost supermarket chains with their own brand products from one of your factories in Germany.
Revenues in 2009 were $16bn split as follows:
Cakes and pies (baked treats) 2.9
Biscuits/ Cookies 3.2
Canned goods 3.2
Fruit juices and concentrates 2.5
% of Revenue
European Union 37
Developing markets 11
2010 revenues have held steady as people buy low-cost stay-at-home treats but there is pressure on your cost base from retailers.
You have slightly in excess of 10,000 employees
EU (except UK) 3,000
websites you might look at to get a greater understanding of the business:
--Identify products and services that your company
might source from various places around the world
--Identify and outline potential problems you might face in the supply chain, e.g. human rights abuses, perceptions of inequity, environmental issues, poor government structures, lack of legal enforcement, boycotts or other negative publicity
--Write a short note on action your company
could take to address each of the issues identified keeping in mind that it is probably not feasible for a large company
to suddenly source all products from Fairtrade sources
--Could any of these actions be a source of competitive advantage for you?
--You will probably want to revisit this piece of work at the end of the workshops as you may then spot additional issues.
--Document the top environmental problems or impacts for your business detailing why they are the most important environmental issues
--Explain the actions that you think the company
should take to address these issues
--What information do you need to make available to stakeholders? e.g. local community, consumers etc.
--What opportunities might environmental issues create for your company
? e.g. sustainable development, marketing, new ways of doing business
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