English Biscuit Manufacturers: Company Analysis Essay Example

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Introduction English Biscuit Manufacturers (Private) Limited was established as a joint venture company in 1965 with the name of Peek Freans Pakistan Limited. In 1966, the UK sponsor company was renamed Associated Biscuits International Limited (ABIL), while the venture was renamed English Biscuit Manufacturers (Private) Limited (EBM), which stands to date. [pic] EBM started manufacturing and marketing the world famous Peek Freans range in 1967 in order to provide Pakistani consumers with nutritious and hygienically packed biscuits of the highest quality.True to its corporate claim, 'The Legend Leads', EBM has led the biscuit industry in Pakistan for 39 years by playing a pioneering role in providing innovative and high quality biscuits for every taste bud. EBM’s trademark, Pied Piper, made its mark three and a half decades ago, but continues to remain in the hearts, minds, and souls of the people through the variety and excellent quality of biscuits manufactured under its umbrella.

EBM enjoys the distinction of being the first food company in Pakistan to promote biscuits as 'food between meals'. pic] EBM has been in the business of manufacturing and marketing branded biscuits in Pakistan for 39 years. The brand name 'Peek Freans' is a household name, and people trust and believe in the quality of the products produced under this brand. EBM is also the first biscuit company in Pakistan to have achieved ISO - 9001 Certification in correspondence with its institutional slogan 'The Legend Leads'.

The achievement also endorses the company's firm commitment to high standards of quality.Under the brand range, Peek Freans, the company today carries the largest variety of biscuit products including Marie, Gluco, Click, Sooper, Smile, RIO Double

Treat, Marvell, Party, Peanut Pik, Peanut Pista, Lemon Sandwich and Chocholate Sandwich. [pic] English Biscuit Manufacturers (Pvt) Ltd. , or (EBM), is the country's leading manufacturer of biscuits and cookies since 1967, with an annual sales volume and production capacity of more than 50,000 tons and a turnover of more than Rs.

5. 5 billion. EBM is the only Company in the industry to have achieved ecognized international certifications pertaining to quality control, environmental management system and human resources management, including ISO 9001:2000, ISO 14001:2004, HACCP certifications and IIP (Investors in People) Recognition. EBM is also the only food company to have been awarded Environmental Excellence Award for three successive years 2004, 2005 & 2006.

As a socially conscious company, EBM consistently supports various humanitarian causes in the areas of education, sports, healthcare and help for the less privileged. Vision To provide high quality value-added food to contemporary and future generations • To constantly endeavour for the acquisition of knowledge and excellence in developing human skills, product innovations and state-of-the-art technologies • To be a good corporate citizen by giving back to the community and improving the lives of the underprivileged • To dispense equitably, fairly, and with compassion, the fruits of success among our “partners in business” • To become a partner with the Government in sharing the responsibility of economic and social uplift and development of PakistanValues • We believe that no individual is bigger than the institution • We believe in integrity, tranperency and commitment as our cultural ethos • We continually adhere to the highest standards of hygiene and ecology • We believe in governance in human face • We protect

and promote the cause of the environment • We emphasize on employee welfare • We believe in leading and innovating in all aspects of business PoliciesThe EBM Quality Commitment The Management of English Biscuits Manufacturer's (Pvt) Limited affirms that every product carrying the icon of the Pied Piper has all the Quality attributes that will fully satisfy consumer / customer's expectations. We believe that our people and our products embody our corporate slogan "The legend Leads" in terms of quality standards, in terms of innovative capabilities, in terms of human skills.EBM Quality Management System binds the management and employees of the company to follow core policies: • We will critically examine and continuously review all aspects of operations, from procurement to be distribution of finished products, to identify any shortcomings or space for cost - effective improvement and will undertake appropriate quality – enhancement measure. • We will identify and, where possible, anticipate changes in consumer tastes and preferences through Market Research, on the one hand, while Technical Research and Development on the other, in other to retain leading edge in product and process development. We will endeavor to recognize and establish Beat Practice criteria for all aspects of the company's activities, including the maintenance of environmental protections and safety standards.

• We will undertake continuous appraisal, feedback and training of our personnel at every level to ensure optimum levels of productivity, creativity and job satisfaction. • The Management believes that every member of the organization at every level shares and fully affirms the Company's Quality Commitment.Food Safety Policy "For more than three decades, EBM philosophy has been to produce biscuits which meet International standards

of Quality and Hygiene in terms of safety and wholesomeness. Every member of EBM team is committed to owing this philosophy and has mind-set to produce the best of products under the Trade Mark of "Peek Freans" and has inculcated this qualitative culture which gives EBM a competitive edge in keeping its customers satisfaction". Environmental Policy The EBM Management takes environment as a part of its cultural ethos and deeply committed to consistently deliver high quality products. It is EBM‘s mission to strive continuously for environmentally friendly technologies based on a highly responsible management and regulatory requirements.

Aiming to protect and preserve the environment for our employees, our valued customers, our business associates and the community at large. " Corporate Social Responsibility Since gaining independence, Pakistan has been very fortunate to have socially conscious entrepreneurs in its midst.A large, diverse number of individuals and groups have placed the interest of the nation and its people above their own, and in doing so, have earned the respect and reputation that their companies carry today. [pic] EBM is one of the leading firms of the country, not only in terms of profitability and growth, but also in the area of social services. EBM’s corporate social responsibility umbrella has benefited several sectors including environment, education, health and sports.

Environment [pic] Environmental protection, safety and security have always been the top priority at EBM.While the company is committed to delivering high quality products, it also recognizes the importance of being a responsible corporate citizen. EBM performs its business activities with utmost respect and care for the environment through proactive environmental management. EBM is also the only food company to

have been awarded Environmental Excellence Award for three successive years 2004, 2005 & 2006. Waste Water Treatment Plant EBM has set up a waste water treatement plant and the company is using treated water for gardening purposes and to irrigate the newly landscaped recreation area and park for children.

Solid Waste Management AreaThe company intends to build a separate area for solid waste so that it does not harm the environment. Waste is disposed of in a manner that is not harmful to anyone. Development Plan The company has constructed a lush green area for families, including a children's play area, three waterfalls and gazebos, at an expenditure of Rs. 6 Million.

Education [pic] EBM strongly believes in education, especially for females and adults and has sponsored several programmes such as the Garage School, Clifton Karachi, the CHAEF (Children Health and Education Foundation) School and the Shaheen KG school in Kala Shah Kaku, Lahore.The company has also initiated an in-house literacy programme for its employees by the name of Ujala. Regular donations and fundraising activities have also become part of day to day business at EBM, as part of the company’s social responsibility initiatives. Health [pic] In the field of healthcare, EBM’s support over the years has been extended to Shaukat Khanum Trust, Sahara for Life Trust, Edhi Foundation, Fatimid, Marie Adelaide Leprosy Centre, Alamgeer Welfare Trust, The Helpline Trust / Consumer Protection Council and the Children’s Health and Education Foundation, to name just some of the beneficiaries.

Other initiatives have included the operation of the Children’s Nutritional Program. [pic] Sports [pic] EBM firmly believes that a healthy mind works in tandem with a healthy body

and has backed the sports initiatives of individuals and national teams, since the company’s inception. EBM was also the first corporate entity to have sponsored cricket, hockey, tennis and golf in the early years of PTV, when sponsorships were considered a taboo in the marketing circles of Pakistan.Through its sponsorship support, EBM made it possible for millions to watch major international sporting events through the first-ever live telecast, via satellite, of Mohammad Ali’s boxing bouts (1974), the telecast of the Football World Cup (1973) and the finals of the All England Lawn Tennis Championships, direct from Wimbledon.

Extending support in sports to the less privileged, the company has also sponsored the Blind Cricket Tournament 2004 and the Asian Olympics for Special People in Lahore.As the legend leads, EBM’s endeavours serve the crucial purpose of creating an awakening and getting others to start thinking about socially responsible behaviour. This is only possible if more and more companies, and not just the large ones, come forward to do their bit. The corporate sector must take a long-term view on this matter as a prosperous community can only benefit the corporate sector in return.

Certifications [pic]English Biscuit Manufactures (Private) Limited has been recognized as an Investor in People. EBM is amongst the first organizations in Asia to have received the International Investor in People Award.Investor in People (IIP) UK is an organization that currently operates in 26 countries globally and has developed the Investors in People Standards. The Standard is expressed in 12 indicators of best human resource practice that are based on research as to how leading organizations manage and develop their people.

[pic]EBM is the first

biscuit company of Pakistan to receive: HACCP (Hazard Analysis Critical Control Point) Food Safety Management System Certification as well as the ISO-9001:2000 and ISO-14001:2004 Certifications. News ; Press ReleasesInter-departmental Cricket Tournament 2006 17 Sep, 2006 [pic] Mr. Khawar Butt, Managing Director EBM awards the winning trophy to the captain of Production A team EBM Sports Club organizes an Interdepartmental Cricket Tournament for the employees Sindh Open and Junior Swimming Championship 2006 16 Sep, 2006 This year again, EBM took the lead and sponsored 2006 championship. EBM SUPPORTING SIUT ZAKAT CAMPAIGN 14 Sep, 2006 EBM provides billboards for SIUT Customer Care: Feedback [pic] Exports English Biscuit Manufacturers (Private) Limited is a producer of high quality biscuits in Pakistan.It caters not only to the wide requirements of the domestic market but also exports its products to USA, Canada, UK, Middle East and African countries.

English Biscuit Manufacturers is an ISO 9001:2000 ; ISO 14001:2004, IIP (Investor in People) and HACCP (Hazard Analysis Critical Control Point) Certified Company. English Biscuit Manufacturers exports its products in special sea worthy packing to keep its products intact during and after transit. [pic] At EBM, we believe that combining talented people with professional and ethical background in an action oriented team gives us a real competitive advantage. People Development We provide diverse range of training and development activities, including on the job training, job rotations and enrichment. • We have strong team where feedback and knowledge sharing is highly valued amongst the employees • The company has a very good reputation within the business and wider community for the way it treats its people and the way it develops them.

Management Style

and Culture • The large majority of managers provide excellent direct support to individuals and their teams. • The company has developed appraisal and review processes for full-time paid employees and a reward and recognition scheme for contract staff. The company has developed a high degree of quality, hygiene and food safety, through training, education and management support. • Managers operate an open door policy and are accessible to all employees.

Communication • Everyone has a clear understanding of the aims and the objectives of the company. • People understand the importance of their own job and how it supports the company’s vision, core values and business objectives. SWOT Analysis Strengths • Major market share in the biscuit market • EBM is the first company to introduce biscuits as an in-between food. • 40 years old in food business No compromise over quality. EBM maintains its quality standards. • Quality Assurance Department • Consumer feedback – UAN number • CSR – Corporate Social Responsibility • Among the more than 45 products the company offers, Sooper has the largest sales volumes and peanut family stands second in terms of sales volume.

• Effective use of the Integrated Communication mix to leverage the power and reach of TV media, hoardings and posters in establishing the right positioning of its products and the company. • Modern hi-tech biscuit manufacturing plant – out of 16 plants in Pakistan, 9 are property of EBM.In the past years, 5 out of 6 biscuit plants were imported from abroad by EBM. • Shape and thickness of packaging for export products • Deterrent to increasing price despite increase in inflation rate of raw

materials Weakness / Areas requiring Improvement • Cracking of biscuits in ticky-packs • Employee training required – On job training, Internal training and external training • Vague impression in the minds of the consumers of the relationship of Pied Piper with EBM • Inability to capitalize on individual brand advertising Opportunities • Increasing demand for its high quality biscuits Demand in international markets – export opportunities to Middle East • Capitalizing on their icons, indicating to them as a family brand Threats • Inflation in prices of raw material • Threat of major competitors, counterfeit and substitute products • Stiff competition from both sides in terms of packaging, branding, and advertising • Changing consumer preferences • Use of foreign brands coming in the market Opportunity • Increasing demand for its high quality biscuits • Demand in international markets – export opportunities to Middle East • Sooper is the star brand whose demand is increasing exponentially.Problems ; Issues Analysis • There is a need for expansion in terms of production capacity and skilled workforce due to increasing demand for its products. • Training and Organizational Development is one big area where the company is investing to groom its workforce and increase their productivity.

Objectives Goal Formulation The company is seriously pondering on the issue of spending millions of rupees on procuring more hi-tech biscuit manufacturing plants to increase the production capacity of biscuits especially sooper and the peanut family.Planning Programs English Biscuit Manufacturers has a budgeting and planning department which is responsible for devising strategic and tactical plans as well as forming budget allocations. Budgeting is done for 1st July to 30th June of next year.

The company believes in its creative employees and always fosters a work environment of innovation and open-mindedness. This is the reason ever such idea is respected and investigated which has a potential to make the achievement of organization’s goals efficient and effective. OrganogramThe organization believes in decentralization and autonomous individuals who can make better decisions as per their knowledge in the long term good of the organization.

Following is the organogram for EBM. The Nature of Issues Most of the issues that we came across were pertinent to people. Like every growth conscious organization, EBM has a commitment to its employees to provide a productive environment which fosters hard work, loyalty, high quality standards and keeping the work force abreast of the latest technological development. As shown in the organogram, there is a whole department of EBM devoted to employees’ training needs.

The training and organizational development (TnOD) is faced with myriad of issue as to how to plan the growing needs for employee training since the company has aggressive plans to import more biscuit plants. Workers of the factory are not familiar with the modern technology EBM is procuring. Therefore, to leverage the real potential of these millions of rupees plants, training is a perquisite. To handle this grave issue, the top management is extending full support to the HR Divison to facilitate and expedite the training process.

Current Practices / Policies / ProceduresThe company has a firm conviction in promoting a productive work environment to enhance the achievement of organizational goals by leveraging the expertise of the EBM family. The company believes in the philosophy of consensus, respect and recognition of talented ones. Performance

Management The company uses the very familiar performance management system, Management By Objectives (MBO) which includes the following steps ? Mutually set objectives ? Review set objectives at year end ? Reward and incentives at year end based on performance ? The objectives are SMART o Specific Measurable o Achievable o Realistic o Time bound HR Policies A whole set of confidential policies pertaining to the following is in effect. ? Leave ? Travel ? Grievance ? Discipline ? Benefits Terms / Conditions Here the human resource department specifies the dos and don’ts.

It tells what is the right and what are the limitations. Human Resource Planning There is a concept of periodic organizational audit here at EBM. Human resource planning is one big area within the huge portfolio of HR. This is done using the S.

W. O. T analysis. The various concerns of human resource planning include: Key positions vacant/filled ? Speed to fill critical positions ? Planned filling of critical positions ? Interdepartmental transfers ? Promotion from within ? Emergency backup ? Hi-positions needing hi-potential individuals Position Grades At EBM, there are four cadres or grades which label any position.

They are ? Workers o Unskilled o Skilled o Highly skilled ? Staff (e. g. clerical staff) ? Officer ? Executive (e. g Assistant Manager) The last three of these grades are supervisory ones i.

e. they mostly serve as mentors for subordinates and oversee the affairs.The reporting goes straight from the worker to the supervisor who is responsible for entertaining all legitimate needs of his subordinate. A working person can express his/her grief, need for equipment, training, information etc.

directly to

his/her supervisor. It is the supervisor again who is responsible for the worker’s appraisal. The following exhibit clears up any confusion about the reporting line. General Manager ( Head of Department ( Incharge ( Supervisor ( Worker Role of Information Technology at EBM Interviewing the Assistant Manager, HR and Admin Affairs, Mr.Yamin Khanzada, we discovered that the company was using state of the art Oracle enterprise software.

Using the power of the system, Mr. Khanzada claimed that they could smoothly process information on their desk with a click of a button without phoning or visiting other departments. The purchase order place in the purchasing department is smoothly coordinated to the warehouse and hits the inventory seamlessly. The financial reports generated by the system offload the burden of the accountants and give faster and reliable results to the information users. Technology in the Biscuit IndustryBiscuit making is not a very high technology business.

But technological progress has surely brought a few dramatic changes in the way that biscuits are produced; viz. a viz. packaging, viz. a viz. formation of the dough, viz. a viz.

making sheets in which the biscuits are packed. The machinery that is installed is very expensive and involves complex ovens and other tools. The ovens are of various types. Previously, brick ovens were used in the biscuit industry. The rapid technological progress has eased the biscuit manufacturing process by introducing gas ovens.

Even though technology plays an important role in the biscuit industry of Pakistan, yet it is not as fast paced as it is in other major industries. The various machinery used in biscuit manufacturing is: 8 (IRS-Report in the morning campus)

• Universal vertical mixer • Sugar pulverizing crusher • Rotary biscuits molder • Electric baking molders • Electric baking oven • Baking oven, fire bricks • Weighing scale • Tools and equipment Production Facilities The company owns two production facilities in Pakistan, the bigger one here in Korangi, Karachi and the other in Hattar, Nowsheroferoz.Understanding the Needs After meeting the Vice President HR, Ms. Najma Khan, we were apprised of the efforts the organization is taking to address the upcoming needs of the company. What we understood after meeting the various department heads was that there was a need for interdepartmental coordination. Since it’s a manufacturing concern and is faced with ruthless competition from other market giants, it must strengthen the organization internally by streamlining and synergizing the efforts of each individual and department in the value chain.

The organization is doing a great job currently and occupies the biggest wallet share in the biscuit consuming market. The company has imported 5 biscuit plants in the last half a decade and is planning to import more. But before procuring such modern technology, the company needs to prepare its people for such a change as well as make all the necessary arrangements. After the plants in place, it may need help from international experts for plant inspection. A lot of cost is involved in employee training.

The company should plan and estimate the cost of such training programs and how it can cut cost by employing better alternatives.EBM currently exports its high quality products to Middle East region. Apart from this the company should consider expanding its span of export after meeting its current rising demand. Action

Programs Developing Strategies Brands like Sooper and members of the Peanut family are but few of the many stars the company has. The demand for these products are increasing exponentially.

Among all its biscuit brands, Sooper stands out and over the last couple of years has emerged as the biscuit of everyone’s choice. Over the last couple of years Sooper’s sales as compared to other company famous brands has been amazing.Sooper has eaten away not only share of other companies’ products but also of EBM because of it’s unique taste, shape and positioning. To give you a feeler to the current demand for just the key brand Sooper, know that there are four biscuit plants solely dedicated to the manufacturing of Sooper. All this points to the company’s increasing need for boosting the production capacity.

Action Plan As has been clearly identified in the previous discussion, the company has a dire need for more production capacity. To address this need the company has plans for buying hi-tech biscuit plants from abroad.The specific planning data due to confidentiality could not be exposed. Market Share Financial Projections Budget Plan • An annual sales volume and production capacity of more than 50,000 tons and a turnover of more than Rs. 5. 5 billion ----------------------- Managing Director Director Operations GM Marketing GM Technical Head of HR Director R&D Director Finance Marketing Research Sales National Sales Manager Metal Management Engineering Quality Assurance Production HR Planning Training and Organizational Development Training and Organizational Development Treasury Budgeting General Accounting