SHERWOOD

Company visit 2015 Business Management

Tea factory

Names Index Number

Wijekumara K.G.M.M ADBM-F-151143

Rishan M.P.I ADBM-F-151114

Yasanthi J.A.R ADBM-F-151149

Rankapuge Y.L ADBM-F-151111

Peiris L.K.A.D ADBM-F-151093

Karunathilake R.S.K ADBM-F-151065

i

Table of Contents Chapter 1 -Introduction of the organization Chapter 2 –Management process of the company

2.1 Planning and decision-making 2.2 Organizing 2.3 Leading

2.4 Control Chapter 3 – SWOT Analysis Chapter 4 – Managerial issues Chapter 5 – Recommendations for improvement Chapter 6 - Conclusion

ii

• The company was founded by Mr. Upasena.

• He acquired Diddeniya Tea Factory in the year 1986 and expanded it to suit the large capacity of nearly 25,000 Kg per day of incoming green leaf.

• The factory was applying named Sherwood Tea Factory after the Sherwood Tea Estates.

Introduction to the company

1

Mainly they provide various kinds of tea products.

1. BOPF: • Broken Orange Pekoe Finings

2. BOP :• Broken Orange Pekoe

3. DUST NO 1:• Dust is a fine powder, much finer than finings.• Made of tea particles left over from producing

higher grades of tea.

Company Products

2

4. DUST NO 2• From Sri Lanka, Indonesia, China, Africa, South

America and Southern India.

5. PEKOE:• A grade of black tea consisting of the leaves aro

und the buds.

6. FANNINGS: • FANNINGS are finely broken pieces of tea leaf

that still have a recognizable coarse texture• They are the grade of tea used in most tea bags.

FANNINGS

3DUST 2

7. OP :• Bold, long leaf tea which ranges from tightly wound

to almost open.

8. SILVE TIPS:

• Ceylon white tea, also known as "silver tips" is highly prized, and prices per kilogram are significantly higher than other tea.

8. OP NO 1

SILVE TIPS

4

The management Process

Planning

Vision • To become the NAME that world remembers and seeks

when it means Quality Tea .

Mission• Implicate strict quality standards using experienced tea

professionals. Keep up date with the modern technology without compromising the quality of produce that the orthodox method made Ceylon tea renowned for, worldwide. Concentrate on sustainable, eco friendly green methods thought the way.

Objective• 65,000kg per month

5

Strategies

Can be identify by two ways of planning

Short Term Plan

• Utilizing limited Resources effectively.• Root and Vehicles

E.g. :- 40 Roots 20 Lorries• Transport cost utilization• Increased sub distributors• If need more transport get hired vehicles

Long Term Plan

• Increased distributors• Optimizing the most useful transport• Increased delivery• Distribute more quantity into central places

6

Organizing

Purpose of organization in SHERWOOD Tea Factory

Optimum use of resources• To make optimum use of resources such as men, material,

money, machine and method• Work should be divide and right people should be given

right jobs to reduce the wastage of resources in an organization.

To perform managerial function• Planning, Organizing, Staffing, Directing and Controlling

cannot be implemented without proper organization.

Facilitates growth and diversification • A good organization structure is essential for expanding

business activity.

Human treatment for employees• To get the expected commitment from the employees.

7

Nature of organization in SHERWOOD Tea Factory

Specialization Division work. • The entire philosophy of organization has centered on the

concepts of specialization and division of work. • The division of work is assigning responsibility for each

organizational component to a specific individual or group.

Orientation of towards goals

• Organizing is the function employed to achieve the overall goals of the organization.

• Organizing harmonizes the individual goals of the employees with overall objectives of the firm.

8

Composition of individuals and groups

• Individuals are grouped departments and their work is

coordinated and directed towards organizational goal

Continuity

•  Organization is a never end process.

9

Organizational Structure of SHERWOOD Tea Factory

Board of Directors

Chairperson Managing

Administration Sales & Marketing

Assistant Sales

Assistant Marketing

Finance Production

Line Managers

10

Departmentalization

Functional

Administration Accounting Sales Distribution Production

11

Leading

Communication • In the company have upward downward communicational channels .• They mainly communicational channels used in sales and marketing

division. Among Divisional managers meeting is held once a month. Marketing meeting is held for every 3 or 4 weeks

• Whole management participate for meeting to discuss the company progress problems and procedures.

Group work• Mainly in a company culture name as individual basic work Used in this

as a group work do the production process. Present new ideas and many more things.

Motivation• Company mainly look at individual employee motivation and didn’t look

at group motivation.• Motivation mainly practises for target oriented financial

e.g. : Salary increments according to sales targets and Goals.Annual bonuses

• Non financial ways. e.g. : Promotions. Annual trips.

12

Controlling

• Financial controlling

• credit period is given for creditors.

• Credit limits must be approved by the Top management.

• Mainly the company approved customers only get the credit facilities for 45 days and have a huge documentation process.

• Performance measurement• Make sure that employees work according to given

procedures.• Make sure sales managers and representatives achieve

given targets.• Look at the recovery targets of the customers.

13

• Human resource management • Continuously supervise employees and evaluate their

performance.• Applicants for management level vacancies are been

interviewed and consider about stated requirements.

Quality control.• ISO 2001 certified company.

• Always concerned about quality control standards and procedures and make sure that they are practically implemented

14

SWOT Analysis

Strengths• Strong management• Cost advantages• Customer loyalty• Supply chain• Unique products

Weaknesses• Work inefficiencies• Cost structure

Opportunities• New services• New Technology• New Markets

Threats• Bad Economy• Change in tastes• Substitute Products

15

Managerial Issues

• Employee issues

• Losses from distributors

• Social network

16

Recommendations for Improvement

Overcoming employee problems• Keep a close connection with employees.• Motivate the employees.• The unity and good understanding between managers and

employees could be improved by organizing social events like parties and get-togethers.

• There should be a clear, correct process in identifying employee problems and giving solutions to them.

Dealing with distributors• Maintaining a reliable procedure to collect accurate and

reliable facts about distributors.• There should be a specific credit limit to each distributor.

Managing Communication Methods

Improving the public goodwill• Participate in social development activities.

17

Group working

• Make groups with distributors.

Advertising

• Distribute free samples to encourage people to buy

their products.

Overcoming the Substitution Threat

• Attract new customers.• Introducing tea in new flavors.• Producing various quality tea aimed at different

levels of consumers.• Selling different tea types in specific areas.• Organizing competitions and giving prizes to

consumers.

18

Conclusion