MapleLeaf Food Company
MapleLeaf Food Company is one of the leading companies in the world withoutlets in more than 80 countries. The food industry experiences alot of competition and it is only those companies with a competitiveadvantage over the others succeed in remaining relevant. Based inCanada, the company distributes its products to customers in thevarious outlets, and this brings in desirable profits. Like othercompetitors, the company has a set of smart objectives that help itin designing strategic plans to achieve the high-order goals.
Thecompany looks forward to becoming a leading food industry in theworlds. The company has instituted a qualified batch of professionalto lead and provide support to the other staff. The company boasts agood reputation among the customers, and this has resulted in brandloyalty. The loyalty extends to other places outside Canada, and it,therefore, remains relevant even in the international market. Thecompany’s vision statement depicts that its main objective is toprovide quality products to customers at an affordable price. The lowprice comes with reduced cost of production and distribution. Forthis reason, the company strives to be on the front line in adaptingto new technology as it comes. The changes that occur in the industryin terms of production are a reflection of this mission since themanagement employs some modern methods that cut costs drastically(Fleisher & Bensoussan, 2007).
Thesuccess of any company concerning the pressure in the market and theprevailing trends depends on the strategic plans set by the company.The approach used by the company inclines towards quality andaffordability of the products. The move helps it to beat competitionfrom close rivals.
StrategicOption to Achieve Competitive Advantage
MapleLeaf Company employs various strategic plans over time to achieve acompetitive edge against the close producers of substitutes. From thecompany’s mission statement, quality and affordability of productsis a primary factor of production when setting the strategic plans.One of the actions that are in line with this statement is theadoption of the corporate energy efficiency strategy. Technologicalinnovators come up with new products that care applicable inproduction, and this helps to reduce the cost of production and aconsequent reduction in the final price of the products.
Mapleis one of the companies with a reputable name in the adoption oftechnology. The company uses machines that are faces and efficientthat can produce mass volumes with very limited breakdowns. Overtime, the company has been objective in the installation of machinesin the processing departments that consume less energy, and thissaves on the costs of electricity and manpower. Before the era ofrapid technological changes, the company used to operate withconventional machines that used a lot of energy and those thatrequired extra hands for them to become effective. As part of itsstrategic plan, the management outlined the need to remain currentwith methods of production especially with the expanding markets andincreased demand for the products (CIPEC, 2005).
Theplan to achieve the strategy dates back in the years 2001 when thecompany’s management unveiled a plan to transform how theorganization thinks about energy. The executive team was verycritical in setting the tone for the action that would give thecompany a competitive edge against the competitors a couple of yearslater. The fuel crisis that started in 2000 led many industries toexperience an increased cost of production. Maple Leaf Companyestablished a committee to oversee the adoption of sustainable energyuse mechanisms like increased efficiency and reducing wastage.Efficiency involved the procurement and installation of high-endmachines in the various plants and providing checklists on energy useto monitor the accrued benefits (Fleisher & Bensoussan, 2007).
Everyyear, the company cools over 16 million kilograms of meat in oneplant at Winnipeg. Through the strategic plan, the company installeda heat recovery system that became a model for many food processingcompanies in Canada. The plant used to consume more than 1828kilowatts in the nine compressors and 213 kilowatts in the eightcondensers. The installed system recovers heat from the hot gasdischarged from the compressors before it enters the condensers. Themethod provides a constant source of heat to facilitate the steamingprocess (CIPEC, 2005).
Theaction has been one of the most successful in the company. In 2001and 2002, the company’s management identified about 10 milliondollars saving opportunities that were possible in the application ofthe new technology. By 2005, the company had saved more than 8million dollars in energy costs, and this helped to maintain theirproduct prices stagnantly and this was to the advantage of the sales.Most companies fail in this endeavor due to poor sustainabilitymechanisms. Maple has a team of experts who monitor the energy savingstrategy, and they give recommendation whenever necessary. The teamensures a continued reaping of benefits, and this gives the company acompetitive edge against those who are still struggling to cut energycosts by conventional means. There is a projected 3.1% annualincrease in the savings of the company. It translates to an ideawhereby the company will continue offering affordable prices with alower price that those of the competitors (CIPEC, 2005).
Thestrategy also has secondary benefits that focus on energy efficiency. The company has developed a method of managing results by measuringthem through indicators. It is a philosophy embedded in theorganizational culture. The technology adopted by the company mustgive good results for them to be part of the projected cost reductionlevels. The company was a pioneering the adoption of the systems andit continues to enjoy the benefits. There are to other companiesstill in the prices of reducing energy use, but they will take sometime to reach the maple level.
StrategicPlans that may make the Company Unsuccessful in Future
Thefood industry is highly concentrated in the world with local andinternational companies operating in the same markets. Each companytries to have bigger markets than the competitors therefore, employmay strategies that aim at increasing the sales through having widemarket segments. However, not all the applied strategies work towardsthe goal and some act as a drawback to the companies. Maple FoodCompany has smart objectives that have been imperative in customerretention and remaining relevant in the market. However, some of thestrategies that the company adopted long ago have not changed theirfaces to reflect a comprehensive approach to the market segment. Theyput the company at risk of incurring losses especially when thestrongholds experience adverse effects.
Oneaction the management employed is focusing on particular customerswho from the bulk of all the ale made the company. The companyfocuses on family setting to sell their products. Winning the loyaltyof a family can be advantageous since it will bring in some consumersfrom each unit. However, this can be the cause of reduced yieldsespecially with the reducing size of families and the effect ofcompetition from other companies.
Bigcompetitors like McDonalds have a comprehensive approach whereby theytarget people in different setting like colleges, workers, andtravelers. Their method can have a mutual cushioning effect in caseone of the populations reduces the consumption. Maple may haveadverse effects when families change their loyalty from one companyto another. A good example is when its processed foods became a medialuminary as because of the claims of having disease-causing bacteria. Some families cease from buying the foods until they received aconfirmation of their safety. If the company has several targetpopulations, it can use customized methods of presenting the productsand increase the sales and a consequently inflated profit. Althoughthe company is one of best performing in Canada, it is out of manysacrifices that may not have been so intense if the company employs adiverse approach (Lamb, 2012).
Inline with this traditional strategy, the company has failed toprocess foods that meet the needs of the changing market. Customerstraditionally associate the company with hot dogs and chicken. Thechanging eating habits and demographics come with demand from othertypes of foods presented in different ways. The management decisionputs the company at risk of a gradual decree in customer loyalty dueto changing preference and tastes.
Theresult of the action has been the institution of price controlmechanisms to reduce the price of the products to maintain the highsales. However, a company has a limit to which it can reduce theprices of its products. The company also institutes intensivestrategies to reduce the cost of production to maintain a profitableprofile. However, these strategies would have been more productivethat their current status if the company had a diverse market. Thesecondary result has been a slow growth of the company when comparedwith other close competitors. The race for market superiorityrequires dynamic companies to fit in the changing eating habits.
TheCompany’s Competitive Value
Dueto its reputation and quality products, the company has completepremises in all the countries of production. The production housesand the warehouses drastically reduce the cost of distribution. Theoffices also market the products as per the operating environment.The endowment gives the company a cost advantage over othercompetitors since it can set the prices at the most appropriate leveldepending on the prevailing conditions.
Onthe same note, the company has a better technological edge than mostcompetitors. The level of technological benefits in the company isstable, and the projected annual increments in costs saving will helpthe company to maintain affordable prices for its products. The massproduction of the company only suits the capital-intensive methods,and the company has been on the frontlines of installing efficientbakeries with high-end ovens. The transport facilities are alsosuited for the different products they carry (Lamb, 2012).
MaplesStrategic Leadership and Governance Mechanisms
Thecompany operates under of a board of directors who commit themselvesto marinating the highest possible level of corporate governance. Theboard’s efficiency has earned the company respect and trust of theshareholders. The board reviews and approves the strategic placesdeemed as imperative for the company in terms of risk management,policies and procedures, organizational structure and compliance withthe established rules and regulations. Their main goal is to enhancethe achievement f the company’s mission and vision and satisfy theneeds of shareholders.
Oneof the leadership approaches that company uses the inclusivedecision-making process whereby the board calls the senior managersto participate in making the strategic plans of the company. Theleadership team reflects a multidimensional team that brings togetherprofessionals from different fields who take charge of the differentdepartments and oversees the implementation of the company’sstrategy (Lamb, 2012).The team works together through a mutualplatform, and this helps the company to progress smoothly. Theleadership feeling extends to the junior workers who embrace theorganizational culture of being self-leaders in their variouspositions. The interactive platform created by the organizationalculture facilitates a smooth flow of information, and the relevantdeparts can solve the identified problems before they take root.
Theform of management keeps the company on the frontline as one of thebest performing in the industry. Its effectiveness became evidentduring the outbreak of the pig’s disease that people attributed tothe company’s products. The management was quick to respond throughn effective communication and consultative process, and they settledthe situation before it got chaotic. The expected fall in the numberof customers did not happen since the management contained thesituation. Also, the management operates through the appointments ofcommittees to oversee the implementation of key systems in thecompany. The energy efficiency strategy has a complete team that isanswerable to the board of directors, and it has been veryinstrumental in ensuring sustainability of the strategy. The team’sefforts saw the company becoming a model for others in the industry,and this raises the respect and reputation it has in the society. The achievements of the company are attributable to the efficiency ofits management.
Maple’sEthical Strategies and Practices
Thecompany’s management presents a complete guide to the company’sethical practices that each employee adheres. First, the companytakes it as a duty to comply with ethical conduct for its employeesand the management. It has a basis in the company’s philosophy ofrespect and integrity in business relations within and without thecompany. The ethics committee revises the code from time to time tosuit the prevailing conditions (MFC, 2015).
Secondly,the company complies with all the applicable laws in the foodindustry. The industry has many regulating and quality control bodiesthat institute rules regarding the food market. The company is notaverse to these rules. Another major policy that guides the companyis the avoidance of conflict of interest at all levels of work. Themanagement and the employees should all work towards the goal of thecompany and put any personal differences aside. The public show ofconflict is also against the company’s policy. The policy alsoprovides for the handling of assets. Individual employees do not havethe right to use the company’s assets to further individualinterests. It is in line with company’s goal of reducing theunnecessary overhead cost that would increase the cost of production(MFC, 2015).
Thecompany inclines so much to the ethical requirement that requires itto comply with the food industry regulators. The sensitivity ofconsumables that the company sells call for the insight of the localand international bodies that ensure the safety of the consumers. TheCanadian Food Inspection Agency plays an important role in thecompany by providing the guidelines for preparation, packaging,transportation and presentation. The implications of these rules forthe company include the hiring of qualified food inspectionprofessionals who ensure that the processed food meets the requiredstandards. Secondly, the company invests in the right technology thatincreases food safety through transportation and storage.
Inconclusion, Maple Food Company remains one of the most successful inthe industry. The strategic plans that the company inclines to ensurethat it remains ahead of its competitors in different areas liketechnology and reduced costs. However, the level of dynamism in thecompany may result in its gradual loss of control of markets if itdoes not diversify its market. The management should come up withanother plan to earn the company another market segment to increaseits sales to significant levels. Its commitment to the company’sgoals is enough to propel the idea to its success. If the companycouples its culture of technology sensitivity with a diversifiedmarket, it will continue to be a leading food industry in Canada andother countries.
Canadianindustry Program for Energy Conservation (CIPEC) (2005). IndustrialEnergy Efficiency: A case study of Maple Food Company.CIPEC: Canada.
Fleisher,C. S., & Bensoussan, B. E. (2007). Businessand competitive analysis: Effective application of new and classicmethods.Wharton School: Philadelphia.
Lamb,C. W. (2012). Marketing.Toronto: Nelson Education: Canada.
MapleFood Inc. (2014). Codeof Business Conduct.Maple Food Inc: Toronto.