2. Introduction Data collection method Problem statement Criticism of methods Interpretation & limitations Analysis of 4 challenges Scope Evaluation Methodology Final Conclusion CONTENTS 29-05-2011 Lin, Alex, Gurudattta & Rabin 2
3. Company introduction NOWACO A/S Business areas: Producing and trading frozen food & foodstuffs worldwide Frozen food: Pork, poultry, beef, fish & sea foods, vegetables and dried foods Fish factory in china and trading offices in 11 countries 29-05-2011 Lin, Alex, Gurudattta & Rabin 3
4. Problem statement What's NOWACO's current business process and strategy? How company manages to meet following challenges now or in the future? How can NOWACO contribute to environmental sustainability in managing their business? How can NOWACO improve their social responsibility in managing their business? How can NOWACO employs shared information through the learning organization? How can NOWACO integrate globalization and glocalization on managing their global supply chain? 29-05-2011 Lin, Alex, Gurudattta & Rabin 4
5. Interpretation & limitations NOWACO A/S fulfils all the requirement of semester projects Information's are limited for not allowing to contact company Business law and organizational management arenot included in the project among the courses taught in 1st semester 29-05-2011 Lin, Alex, Gurudattta & Rabin 5
6. Scope Gives general overview of the company's business processes and solutions to the business challenges we decided to work on 29-05-2011 Lin, Alex, Gurudattta & Rabin 6
7. To structure the project Research onion Implement new strategies Overview of company's business process and strategy John R. Schermerhorn model Bridge to profit Models Benchmarking Whale curve & ABC analysis Optimizing supply chain Most profitable customers and suppliers Lean principle How future supply chain should be Methodology 29-05-2011 Lin, Alex, Gurudattta & Rabin 7
8. Data Collection Method Secondary/desk research Search engines: data monitor, market line, OECD and different academic journals, reports and articles 29-05-2011 Lin, Alex, Gurudattta & Rabin 8
9. Criticism of methods Project is entirely based on secondary data Reliability of Internet source Suggestion for quantitative research 29-05-2011 Lin, Alex, Gurudattta & Rabin 9
10. The analysis Customer interface: Strong relationship, exhibition, worldwide representative office Core strategy: Guaranteed quality and delivery on time, trading and distributing broad multi-temperature product range globally Strategic resources: Extending and financing deals for the company as a whole Value network: 9 representative offices worldwide, administration, shipping and finance in Denmark, most raw materials from north America 29-05-2011 Lin, Alex, Gurudattta & Rabin 10
11. Environmental sustainability Analysis based on sister company “Bidvest food business” Commitments: Achieved ISO 20000, reduce green house effect, use of renewable energy resources, support to partners for supply chain Hypothesis: Applied ISO 20000 and ISO 14064 Bidvest long-term issues: Reduce environmental impacts; particularly carbon impact, healthier and sustainable foods, robust information on food labelling, demand for local and seasonal product 29-05-2011 Lin, Alex, Gurudattta & Rabin 11
12. Social responsibility Buy pieces that aren't genetically modified, farmed in sustainable environment and grown without growth hormones Efficient wastes management e.g. delivering parts of chicken and pork's to china from Europe Threats of bad Labour image and stereotypes about those (BRIC) countries 29-05-2011 Lin, Alex, Gurudattta & Rabin 12
14. 2015 Packaging: chilled processes, frozen processes and canned/preserved; flexible, looking attractive, looking better convey an image of freshness and quality 2015 Distribution centre: 67.7%-supermarkets, 17.2% independent retailers, 17.2% convenience store, china, Russia and Indonesia shows market growth 2010 ~ 2015 Frozen meat accounts 41.3% of market’s value, brazil food S:A., Nestle S.A. & H.J. Heinz consist market share 5%, 2.8% and 1.9% 2010 Growth expected Market grow by 3.5% and expected to be 14.5% in 2015, Europe, Asia pacific and America consist 3 biggest market segment Global frozen food market 29-05-2011 Lin, Alex, Gurudattta & Rabin 14
15. Knowledge - sharing Case with Russian customer Helped him to send raisins back from Afghanistan to Russia and bought one sort of raisins from him while selling other sorts to him Case with Chinese customer Visiting at Danish slaughterhouse came up with the idea of selling non used parts of chicken and pork's to china which is considered to be delicacy in Europe 29-05-2011 Lin, Alex, Gurudattta & Rabin 15
16. Learning organization practice Working for better performance and quality control Long-lasting partnerships, having flexible human resources wellness and keeping employee healthy Incentives to the employees such as healthy lunch, fresh fruits, in house exercise class etc. 29-05-2011 Lin, Alex, Gurudattta & Rabin 16
17. The evaluation Explains what NOWACO can do about these challenges and how they can implement the suggestions that we have presented 29-05-2011 Lin, Alex, Gurudattta & Rabin 17
18. Environmental sustainability Customer awareness: Follow cradle-to-grave policy, label on how to dispose or recycle Benchmark: Benchmark for being environmental sustainable Work force: Train employees for being environmental sensitive, alternative travel arrangement, work from remote Logistics: Implement LEAN thinking for reducing wastes and CO2 emissions 29-05-2011 Lin, Alex, Gurudattta & Rabin 18
19. Social responsibility Example with the frozen fish delivered to Qingdao: cuts logistics part thus reduce environmental impact Apply ISO 26000 Sign up for, principle for responsible investment(PRI) Write code of conduct 29-05-2011 Lin, Alex, Gurudattta & Rabin 19
20. Globalization & Glocalization Logistics perspectives: Plan to handle implications of international logistic; inventory, handling and transport Risks management of geographical threats and transport breakdowns Evaluate multiple modes and cost options Apply LEAN thinking for reducing supply chain cost, improve quality and to get rid of 7 wastes Choosing right customers; ABC calculation and benchmarking 29-05-2011 Lin, Alex, Gurudattta & Rabin 20
22. How to create learning organization Mechanical system design --> Natural system design Awareness: Importance of it, from top management to blue collar workers Organization structure: Flat structure encourage innovations, openness, reflectivity Leadership: Help to guide the organization towards learning Empowerment: Empower employees & make responsible for their own work Learning: Flexible and encouraging organization so that people feel free to learn from the mistake 29-05-2011 Lin, Alex, Gurudattta & Rabin 22
23. Final conclusion Environmental sustainability: Apply ISO 26000 cutting unnecessary transport, code of conduct to implement Social responsibility: Cradle to grave policy, make employee aware of green cause, benchmark against competitors Globalization and glocalization: Apply LEAN thinking, benchmarking for optimizing performance, strategy for future growth expected Knowledge sharing: From mechanical to natural system design Future scenario: 14% grow in 2015, constant growth over the period 29-05-2011 Lin, Alex, Gurudattta & Rabin 23