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ACKNOWLEGEMENT

Words will never be able to express enough our feverent gratitude to almighty Allah, the most compassionate and merciful, for giving us the courage and fortitude to accomplish this gargantuan task. We are the Holy Prophet’s Ummah (PBUH) and we acknowledged that the Holy Prophet’s (PBUH) moral and spiritual teachings have enlightened our heart and mind and have guided our thoughts towards new horizons enriched with great ideas of life.

We are undoubtedly indebted to Sir Mubassher at Superior University, Faiza Maqbool (Organizational Development Executive) and Javeria Khan (Human Resource Executive) at Tetra Pak Pakistan Ltd. who have been our mentors and thanks for their kind supervision, valuable suggestions and moral support through out our research. We are highly impressed by intellectual activities and inexhaustible energies used in steering forth the students.

We must take this opportunity to appreciate efforts and co-operation of our fellow’s students and friends whose constructive suggestions have made possible for us to conduct this project. We extend our thanks to all of them for there helping hand whenever needed. Once again words fail in expressing our thanks to our families, whose hands are always raised in prayers for our success.

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TABLE OF CONTENTS

TOPICS1 Introduction2 Historical Background3 Tetra Pak – an update4 Tetra Pak – our motto5 Tetra Pak – rules of their journey6 Future Outlook7 ISO – 9001 Certification8 Tetra Pak – Benefits(I) Protection (II) Preservation (III) Communication (IV) Convenience9 Situation Analysis(a) General Environment(i) General State Of The Economy(ii) Economic Situation Of The Industry(iii) Situation Of Company In The Industry(b) Product Market(i) Sales Volume(ii) Growth Rate(iii) Market Share(c) Customer Market(i) Demographic Factors (ii) Life Style Pattern(iii) Usage Pattern And Behavior(iv) Preference For Specific Benefits (d) Marketing Programs (i) Advertising And Promotional Programs

Television Newspapers And Magazines

(ii) Relationship With Dealers, Wholesalers And Retailers10 Consumer Research

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11 Innovation And Flexibility12 Organizational Culture(i) Strong Culture(ii) Weak Culture(iii) Tetra Pak’s Culture(iv) Dimensions Of Tetra Pak’s Culture

Attention To Detail Outcome Orientation People Orientation Team Orientation Aggressiveness Stability Innovation And Risk Taking

(v) How People Learn Culture OF Tetra Pak Stories Rituals Press Conference Follow Up Campaigns Customers Campaigns Outdoor Support Campaigns Boarding Arranging Seminars And Functions Material Symbols Language

13 Environment14 Tetra Pak’s Environment Policy15 Managing The Environment(i) Design (ii) Supplier Management(iii) Sustainable Forestry Management 16 Specific Environment (i) Costumer Or Products(ii) Suppliers (iii) Pressure Groups(iv) Competitors 17 General Environment(i) Culture And Social Environment

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(ii) Economic And Technological Environment (iii) Political And Legal Environment(iv) Competitive Environment (v) Political Conditions (vi) Demographic Environment (vii) Global Environment (viii) Ecological Environment18 Level Of Social Responsibility (i) Classical view(ii) Socio Economic View

Recycling Food For Development An Urgent Need New Feeding Programmer Initiatives

19 The “Greening” Of Management 20 Managerial Ethics (i) Utilitarian View OF Ethics(ii) Right View Of Ethics (iii) Theory Of Justice View Of Ethics

Core Values Freedom With Accountability Partnership With Customers, Suppliers And

Colleagues Long Term Perspective Innovation And Creativity Communication And Fun

22 Packaging 23 Product Example24 Planning Process25 Approaches To Establish Goals26 Business strategy27 Planning Tools And Techniques(i) Environmental Scanning

Competitor Intelligence Global Scanning

(ii) Forecasting Quantitative Forecasting Qualitative Forecasting

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(iii) Benchmarking

28 Technique For Allocating Resources (i) Budgeting

Tetra Pak Budgeted Sales – 200429 Organizational Structure(i) Work Specialization(ii) Departmentalization (iii) Chain Of Command(iv) Decentralization(v) Formalization30 Organizational Design(i) Organic Organization31 Employee’s Motivation(i) Herzberg’s Motivation – Hygiene Theory (ii) Three – Needs Theory 32 Leadership (i) Democratic Style 33 Control Processes (i) Feed Forward Control (ii) Concurrent Control34 The BCG Matrix35 Bibliography 36 Conclusion

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1. Introduction

Tetra Pak is the quite old and most trusted packaging company of Pakistan. Starting its operations in 1982, the company has grown from strength to strength over the last 21 years. Packaging of a high standard of products are enriching the lives of millions with all the goodness of nature for a healthy lifestyle.

Today, the Tetra Pak continues to grow. It is reaching to more and more companies for packaging with the passage of time. This means that Tetra Pak's customers enjoy the advantage of being able to get multi-product solutions from a single source, with matching equipment at every stage.

2. Historical Background

Tetra Pak is a Swedish industrial company. It was founded in 1951 in Lund, Sweden by Ruben Rausing and Erik Wallenberg.

Tetra Pak's first product was a revolutionary paper carton used for storing and transporting milk. Rausing had been working on the design since 1943, and by 1950 had perfected techniques for making his cartons fully airtight, using a system of plastic coated paperboard. These initial cartons were tetrahedrons, leading to the company's name. In 1963 the company introduced Tetra Brik, a rectangular carton.

Ruben Rausing's son Hans ran Tetra Pak from 1954 until 1985, taking the company from a seven-person concern to one of Sweden's largest corporations. Before his death in 1983, Ruben Rausing was Sweden's richest person.

Tetra Pak is the world's largest supplier of cartons and bottles for milk, soup, fruit juices, and other liquid products, and the company also manufactures machinery used for food packaging. In 2002 it employed over 20,000 people.

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In Pakistan, Tetra Pak started its operation in 1982.

3. Tetra Pak – An

Update

Tetra Pak develops, manufactures and sells complete systems for the processing, packaging and distribution of fluid food, primarily milk, soft drinks and other drinks containing fruit pulp.

Tetra Pak supplies complete lines of processing, treatment and packaging equipment. Various separators, homogenizes and heat exchangers constitute the key components of the processing equipment. Tetra Pak sells six different packaging systems, to meet the most diverse customer expectations. In addition, the product variety comprises conveyor belts, tray fillers, shrink-wrapping machines, roller containers and other equipment needed for product distribution.

In addition, Tetra Pak offers IT services, including product designing, plant control and supervision systems, computer-aided logistic studies, training courses, repair & maintenance of machinery and equipment and assistance to final product distribution. Relying on experience gathered in the frame of highly focused R&D projects related to fluid food, Tetra Pak can offer sophisticated expertise furthermore the company assumes full warranty concerning the marketed machine lines. Such warranty is a key precondition of ensuring safe activities of both the buyers and the suppliers.

Tetra Pak develops manufactures and market systems for the processing, packaging and distribution of food and liquid food.

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Tetra Pak currently has 77 market companies around the world, 63 packaging material plants (including licensees), and 14 packaging machine assembly factories. The company has 20,900 employees and in 2002 reached net sales of EUR 7, 5 billion. Tetra Pak products are sold in over 165 markets.

4. Tetra Pak – Our Motto

This is a one that works not only with our customers, but also

throughout the value chain,” says CEO Nick Schreiber. “It provides a global positioning of Tetra Pak, and it will be the only motto for our company.

”Protects, means to keep safe, defend, guard, nurture, and care of it. It is an active word that is an extension of our vision”

Good, means having the right qualities, being kind, benevolent and wholesome – it is a positive word that we hope our customers will value. We also hope that it will offer reassurance and choice to consumers.

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5. Tetra Pak – Rules of their journey

Freedom with accountability Partnership with customers, suppliers and colleagues Long term perspective Innovation and creativity Commitment and Fun

6. Future Outlook

Tetra Pak launched new types of packaging after regular period of time. These are in great demand as there are no competitors of them and it is believed that their sales will grow more than that in future years. The company has added to its production new techniques regarding hygiene and customer’s satisfaction. As the economic environment stabilizes the company hopes to play role in attaining a much higher level of prosperity in the future that they will not affected by any competitor in the future. They are in the maturity stage i.e. they are at that time completely rule the packaging industry

7. ISO – 9001 Certification

Tetra Pak’s, a name synonymous with quality, taste and trust for over 21 years, gained, in 1982, another distinction: ISO 9001 certification and at no better time than the successful completion of 21 years.

It is a matter of immense pride and honor for the Company that Tetra Pak has become the first packaging company in Pakistan to achieve this prestigious distinction. It has a complete monopoly in Pakistan i.e. it has no other competitor. What makes it more significant is the fact that ISO 9001 involves all steps in the manufacturing chain; starting from designing and development of products to production, right up to distribution. Thus the Company, guided by its professional management, makes every effort to ensure that the product packaging reaches to promise the customer’s expectations. Another certification that increases Tetra Pak’s image in the market is ISO 14001.

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8. Tetra Pak – Benefits

Tetra Pak Packaging has a very important function, which is to protect food and drinks safely and efficiently from where they made to where they will be consumed.

It has following benefits:

Protection Packages protect the contents from light, microorganisms and air, and the environment from the contents of the package.

Preservation Good packages can help preserve food and prolong its shelf life during storage, transport retailing and consumption.

Communication Packages carry important product information about ingredients, quantities, nutritional value, use, sell-by dates and much more.

Convenience Packages provide convenience for the consumer, enabling the food to be handled, served and then stored what is left for future use without getting it all over our hands.

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9. Situati

on Analysis

a) General Environment

General state of the economy

The outgoing fiscal year 2002-2003 has been the most difficult and challenging year for Pakistan’s economy. The year witnessed the full impact of the economic sanctions on domestic economy as well as the continuation of deepening global economic recession with consequential impact on Pakistan’s external sector. These two factors not only precipitated a balance of payments crisis but also damaged the gains achieved in the preceding year, and most importantly, interrupted the pace of implementation of structural reforms and stabilization measures.

The imposition of economic sanctions and the suspension of new bilateral and multilateral disbursement. Yet another notable positive development has been the decline in inflation to 6.1 percent during the July-August 2002-2003 as against 8.9 percent of the comparable period of last year.

Economic situation of the industry

According to the census of manufacturing industries there were 77 market companies around the world engaged in the packaging of various companies. In Pakistan, it is the only and the largest packaging company. There are no competitors of Tetra Pak in Pakistan, so till 2003 it enjoys 100 percent share in

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the market. The sales volume increases from 570 million in 1998 to 1.1 billion in the recent year.

The growth rate in the packaging industry has been estimated at 27%. The most rapidly growing items are milk products, food products, chocolates and others.There is a significant scope for investment expansion in the packaging sector as it has the monopoly in Pakistan. Domestic demand is buoyant and export prospects are bright-although they are yet to be adequately explored. Several major companies including well-known multinationals have substantial investment commitments and there are also a large number of middle-sized upward domestic firms. There is also a need for technology and know-how in the areas of packaging, preservation and hygiene of the product. Several Pakistani firms have developed ambitious modernization programmes.

Situation of company in the industry

Tetra Pak is the first food industry in Pakistan to achieve distinction under ISO 9001, which gives it a unique standing. Tetra Pak has once again set the monopoly now in 2003 also; there is no standing competitor against it, making the industry more competitive and credible in international markets. Today, Tetra Pak lives up by to its well earned reputation as market leader by insuring that earned reputation as market leader by insuring that consumers get the best, stylish and hygienic packaging. The best of technology, excellent packaging and human resource for unparallel quality.

b) Product Market

Sales volume

Total sales volume of Tetra Pak is:

• In 1998-1999 was Rs. 5,70 million• In 1999-2000 was Rs. 7,06 million• In 2000-2001 was Rs. 7,68 million• In 2001-2002 was Rs. 8,60 million• In 2002-2003 was Rs. 1.1 billion

Growth rate

The growth rate of was 27% in Sales with an increase of 240 million.

Market share

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Their market share is 100 % as there is no any other competitor against them. They have the monopoly all over Pakistan.

c) Customer Market

Demographic factors

People of all ages and gender use our packaged products because of their advantages i.e. hygienic packaging and preservation. Educated and people belonging to all classes use their packaged products. Their packaged products are available in mostly all cities of the country.

Life style pattern

The health and quality conscious people used our packaged products that care about the health and cleanliness of the product they used. That is why packaging matters so much in making the product successful.

Usage pattern and behavior

Due to its hygienic packaging and preservation techniques, it is the most powerful packaging company in the Pakistan. That is why they haven’t faced any competitor against them. They have the total of 100 % market share.

Preference for specific benefit

For over 21 years, Tetra Pak has maintained a tradition of producing one of the finest packaging in the whole world and in Pakistan. That is why it continues to be a familiar and trusted name in Pakistan. Today, Tetra Pak lives up to its well-earned reputation as a market leader is insuring that consumers get the best packaging. The best of technology and human resource have together contributed to Tetra Pak’s reputation for unparallel quality – a standard now recognized in overall Pakistan. Above all, the entire process is overseen by a professional management and trained workforce.

d) Marketing Programs

Advertising and promotional programs

• Television

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Tetra Pak don’t advertise their packaging regularly. They also don’t advertise heavily. Their advertisement is mostly through their customer like Nestle etc. But they also sometimes advertise their packaging both during and off prime time. Their decision to advertise or not depends upon the popularity of the programme and the number of advertisers sponsoring it i.e. if too many advertisers are sponsoring a programme then Tetra Pak usually don’t advertise in that programme. But if their ad gets the benefit of being the first in the commercial break then they usually avail this opportunity. Tetra Pak usually advertise through some well-known personalities like Abrar-ul-Haq (singer), Resham (actress) and Jehangir Khan (sports person), Kamil Khan (architect), Ishaq Mushtaq (athelete).

• Newspapers and Magazines

Tetra Pak also use newspapers as their source of advertisement and promotion. They mostly advertise twice in a month in “DAWN” on Sundays. Their activities also are presented in this newspaper like when Tetra Pak launched first generic UHT milk campaign Doodh, Aur Kya! It is also given in the newspaper. Articles on various aspects of the UHT milk campaign kept appearing in the newspapers and magazines before, during and after the airing of the TV commercials.

Relationship with Dealers, Wholesalers and Retailers

Burgeoning countrywide sales, with those in major cities, Karachi, Lahore, Rawalpindi and Islamabad, are managed fully computerized and inter-linked regional sales office. Their all customers’ products are widely used in all parts of the country. Almost all the offices are on the internet/e-mail network ensuring uninterrupted flow of data. Tetra Pak keep a good and sound relationship with wholesalers, distributors and retailers to insure their sales volume grows because these distribution channels can affect the sales up to large extent.

10. Consumer Research

Tetra Pak usually conducts consumer research before launching a new packaging way through questionnaires and focus groups to check the demand of the product’s packaging and also the customer’s response towards their packaging. And if the result is positive then they launch that packaging method.

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Consumer research is also done to check the current demand of the already existing packaging method. They also hired up companies to do consumer research for them like Aftab Associates.

11. Innovation and Flexibility

At Tetra Pak, Innovation is the result of the total process of developing an idea into a product or a new way of working which adds value to the business.

There is much more to innovation than merely developing new products. Innovation embraces everything from hatching an idea to reaching the marketplace with a new or improved product. Whichever way you define it, it is important. Innovation is one of the mainstays of our survival and growth.

12. Organizational Culture

“System of shared meanings and beliefs held by organizational members that determines, in large degree, how they act”

There are main two types of culture:

• Strong Cultures

“Strong cultures are those cultures in which the key values are deeply held and widely shared. These types of cultures have a greater

influence on employees than do weak cultures”

• Weak Cultures

“In weak cultures, the values and beliefs are not deeply held and shared and they don’t have a much influence on their employees. The

organizational performance is not high in the organization with weak culture”

• Tetra Pak’s Culture

Tetra Pak’s culture is very Strong because all the values are deeply held and shared in the organization. That is the reason that they have Monopoly in Pakistan. There are no other competitors of Tetra Pak in Pakistan. Also worldwide they perform certain activities like consumer research, seminars and advertisements that show their commitment to their work. Also to get the clear

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idea that about Tetra Pak’s strong culture, let’s see the dimensions of the organization culture.

• Dimensions of Tetra Pak’s Culture

Attention to detail

It’s a degree to which the employees is expected to exhibit precision, analysis and attention to details”

Tetra Pak has a very High in this dimension.

Tetra Pak is one of the biggest organizations of Pakistan. After so many years of its existence in Pakistan, it remains in monopoly. The reason is that when they make certain decisions, then lots and lots of factors involved in it and they check all the factors with utmost precision. For example, if they want to introduce a new product in the market. Then the whole process requires accuracy. So, to make accurate product that is according to the customer requirements, they first did Consumer Research and after accurately research for what the customer needs, then they launch the new product with changes that the customer want.

Outcome Orientation

“In this organizer usually the management people focus on the results they are getting. They concentrate on outcomes rather then how

they are being achieve”

Outcome Orientation is High in Tetra Pak’s culture.

It is the organization’s main responsibility that what kind of outcome they produce. Tetra Pak is outcome orientated because it always focuses on the outcomes and the way they achieve this outcome. Like again the example of Consumer Research, it took a lot of effort to do this research because every customer has its own perception about packaging. So, to dig out their habits is not an easy task. It is also very time consuming. But above all, Tetra Pak just sees the outcomes that are mostly very satisfying.

People Orientation

“It is a degree to which management decisions take into the account the effect on people in the organization”

Tetra Pak’s culture has a very High people orientation.

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Tetra Pak is always concerned about their employees and other staff because they thought that the employees in the organization are very much responsible for an organization’s success and failure. So Tetra Pak is always very much concerned about people in the organization. People are taken part into the overall organization’s decision and their views and suggestion are equally acceptable. They also have given lots of incentives on their better work.

Team Orientation

“It is a degree to which work is organized around teams rather than individuals”

Team orientation is also very High in Tetra Pak.

Team orientation is now-a-days permanent part of any organization. So, Tetra Pak is also in favor of team orientation. All the packaging design, development, analysis and many more is done in teams and groups. The projects that need lots of efforts, in these groups are also contain co. of people. So, this means it depends on the projects pf the organization

Aggressiveness

“It is a degree to which employees are aggressive and competitive rather than cooperative”

Aggressiveness is Low in Tetra Pak.

Aggressiveness is below average in Tetra Pak because they always concerned about working in a friendly and cooperative but challenging environment. Yes, there is some kind of work-related aggressiveness is present that they need to accomplish their tasks. But as Tetra Pak is in monopoly in Pakistan, that is why there present low aggressiveness that is needed just to overcome the threats for any new competitors in the future years.

Stability

“It is a degree to which organizational decisions and actions emphasize maintaining the status quo”

Tetra Pak’s culture is very Low in stability.

Tetra Pak from last five years constantly engaging to create something new that is why they are not at all stable. It always focuses on the customer’s

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requirements that are why they constantly change their packaging according to what customer wants.

Innovation and Risk Taking

“It is a degree to which employees are encouraged to be innovative and take risks”

Innovation and risk taking is very High.

As Tetra Pak is low in stability just because that they always create something new, something different and something unique for their customers. Like their packaging designs, seminars, and shows and always started a new campaigns like “Doodh – Aur Kiya” and many more. So, this represents that Tetra Pak is very innovative.

• How People learn Culture of Tetra Pak

Culture is transmitted to employees in a number of ways like:

Stories

“Organizational “stories” typically contains a narrative of significant events”

So, in Tetra Pak, stories are also widely used because they believe that it told about the organizations past help shape the future. The storytellers in Tetra Pak can be middle managers as well as first line managers and the non-managerial employees. They told the new people about the company’s heritage and general rules and regulations so that people learn from them.

Rituals

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“Rituals are repetitive sequences of activities that express and reinforce the values of the organization”

Tetra Pak is very much into following these rituals in order to learn their employees about organization’s culture. Because for Tetra Pak, their goals are very important as well their employees are very important too. So, to maintain this, they arrange different seminars, functions, concerts for their employees as well as to launch any new product or just introduce any new feature of they’re product to the whole marketing world. Also, they arrange an Annual Day for their employees and customers, in which they discuss the whole last year and planned for the next year. They perform following rituals:

• Press Conference

They also used to organize press conference on launch of their new campaigns. Like, the campaign kicked off with a press conference, which unveiled the UHT milk campaign Doodh, Aur Kya! Follow-up articles and press releases became a regular feature of the campaign and played a vital role in its overall success.

• Follow-up Campaigns

They also used follow-up campaigns during their UHT milk campaign every now and then. Tetra Pak Pakistan got several opportunities to keep the message of Doodh, Aur Kya! First in the series of these campaigns is the Basant campaign and then Mother’s Day campaign.

• Customers Campaigns

The campaign line, Doodh, Aur Kya! Was further extended to customers advertising? Thus, Tetra Pak’s customers for promoting their own UHT milk brands equally shared the goodwill generated by the UHT milk campaign and Tetra Pak Cricket Quiz promotion, Jawab Hai - Doodh.

• Outdoor Support Campaigns

Tetra Pak also uses buses to promote their new packaging techniques and in the launching of the new packaging.

• Boarding

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They also use billboards and boarding as their part of promotional activity. Like they placed the board outside Packages center, in which they congratulate themselves for achieving 1.1 billion targets in sales volume.

• Arranging Seminars and Functions

Tetra Pak also regularly arranges functions to promote their activities. Tetra Pak organized its 3rd Customer Day on April 16, 2001, during which, Tetra Pak’s customers and their spouses spent a cheerful evening. They also organized Customer Day in 2002 as well. They also arrange recreational activities like Concerts in which they invite famous singers. They also arrange seminars on World Environment in 2002.

Material Symbols

In Tetra Pak, material symbol are also used. Employees can learn culture by seeing the layout of the Tetra Pak building, the dress of employees and executives, types of car top executives is provided and many more.

Language

Language refers to unique and special terms, used in the culture of the Tetra Pak. In Tetra Pak, many people used specific language, which shows organization culture when the employees learn this specific language, and then it’s easy for them to understand the culture of an organization. This is not a language, which is created specially by an organizational management, but the employees themselves create it. There is no hard and fast rule to learn that language.

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13. Environment

For Tetra Pak, being a successful company also means commitment to the environment. Tetra Pak has developed goals, activities, and organizational and evaluation structures necessary to turn this mission into action. Tetra Pak's overall environmental impacts depend on actions taken at every stage of the life cycle of our products and services, from design and purchasing, through to transportation, filling, consumption and disposal.

In our environmental activities we therefore focus on managing environmental impacts in every phase of the life cycle. Tetra Pak's employees, suppliers, customers and the communities are all important partners in achieving this.

14. Tetra Pak’s Environmental Policy

Our policy translates the mission statement into key principles that we expect the whole company to follow. It further provides the basis for our environmental plans, goals, programmers and activities. The policy was issued 1997 by our CEO.

The policy aims at achieving environmental excellence in the three major areas of our activities:

Product design and manufacturing

Management Processes

Communication

15. Environmental

Organization

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Tetra Pak has a professional and well-structured environmental organization in place to ensure that plans become reality in our operations worldwide.

The Environmental Council is Tetra Pak’s environmental policy-making body consisting of management representatives from different regions, business area and functions, directly reporting to Tetra Pak's Global Leadership Team. The Environmental Council sets and monitors implementation of goals, and decides on future directions. The Corporate Environmental Affairs Group makes sure that the Council's decisions are implemented. Furthermore, in each of the regions, business areas, factories and market companies, there are staff especially responsible for environmental affairs.

In addition to having a dedicated environmental organization, we consider the environment part of every employee's job. For environmental plans to be implemented successfully, employees need to be committed to these plans and empowered to act. We have launched an employee environmental awareness program called 'Eco Drive' in September 2001 aimed at informing employees about Tetra Pak's environmental activities and at increasing commitment to reaching Tetra Pak’s environmental goals.

We held a first Tetra Pak worldwide Environment Day in 2001, which was successful with more than 50 locations joining in the activities. A second Environment Day will take place on 29 September. To further encourage employee involvement in environmental affairs and generate ways to further improve environmental performance, Tetra Pak is also holding an Environmental Ideas Competition among all Tetra Pak employees.

16. Managing the Environment

For Tetra Pak, being a successful company also means being committed to the environment. Tetra Pak has developed the goals, activities, and organizational and evaluation structures necessary to turn this mission into action. Tetra Pak’s overall environmental impact depend on what happens at every stage of the life cycle of our products and services, from design and purchasing, through to the transport, filling, consumption and disposal of our packages. This is why Tetra Pak’s environmental programs and actions focus on managing and minimizing the environmental impact in every phase of the products' life cycle. Tetra Pak’s employees, suppliers, customers and the communities are all important partners in achieving this.

They also use the “Life Cycle Approach” to describe how Tetra Pak manages the environmental impact of its own operations and in relationships with suppliers, customers and the communities we serve.

Examples of managing environmental issues throughout the life cycle:

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Design

Decisions we make during the design stage can have an environmental impact in other stages of the life of a Tetra Pak package or product. An example is that we have to think about using materials that can be recycled.

This is why we consider the environment as part of our design process. We aim to ensure that the package fits into existing collection and recycling systems in the markets where we do business. It is our goal to optimize the environmental performance throughout the product's life cycle, without compromising our customers' needs for safe, functional and cost-effective packages. Another fact that we have to bear in mind during the design stage is that food production can have a significant environmental impact. Packages help prevent food being wasted and similarly, they prevent the wasting of resources used to produce food.

Supplier Management

Some environmental impact of the package comes from activities that Tetra Pak does not control directly. An example is the extraction of raw materials needed to produce our packages.

However, we strongly encourage our suppliers to improve the environmental performance of the materials they supply to us. We think of our relationship with our suppliers as a partnership. Together, we try and find ways to improve environmental performance. A typical issue that comes up in discussions and negotiations with our suppliers is how to ensure that fibers are sourced from well-managed forests.

Four times a year, we evaluate our Main Global Suppliers on their overall performance. How well they are doing in environmental matters constitutes 5-7% of their overall score.

Sustainable Forestry Management

The main raw material Tetra Pak uses “Paper Board” is made from wood. Wood is a renewable resource.

Tetra Pak's ambition is that all the wood fiber used to make our packages comes from, and can be shown to come from, forests managed in line with the principles of sustainable forest management. Our global suppliers of paperboard have done a lot of work in recent years to achieve and demonstrate sustainable forest management practices in forests that they manage themselves. Now we are asking them to help us ensure that all the wood fiber that ends up in our packages comes from sustainable managed resources.

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Translating this ambition from theory into practice is a large task and we are therefore using a step-by-step approach. We expect our suppliers to accept achieving this ambition as a common priority. We measure progress as part of our supplier assessment system.

17. Specific Environment

“It includes those constitutes that have a direct and immediate effect on manager’s

decision and actions”

It includes:

Customers

Tetra Pak exists to meet the need of their customers because it is the customers or client who absorbs the organization’s output. Tetra Pak provide packaging to the following customers:

• Nestle Milkpak Ltd• CDL Foods Ltd.• Frooto Industries (Pvt.) Ltd.• Popular Foods Industries (Pvt.) Ltd• Mahaar Food Industries Ltd• Ravi Agricultural & Dairy Products Ltd• Royal Dairy Products Ltd• Standard Fruits Ltd.• Tops Food & Beverages• Vita Pakistan Ltd• Juice Pack Industries Ltd• Faraz Fruit Juices (Pvt.) Ltd

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• Husnain CPD. (Food & Beverages)• BENZ• General Dairy• Pakistan Fruit Juices Co.• Noon Pakistan Ltd• Shezan International Ltd

Suppliers

“Suppliers are those who provide material and equipment”

Tetra Pak is the renowned name in Pakistan. They provide packaging to the customer that targeted towards the all classes. Because of their quality and monopoly in Pakistan, they have 100% market share. They buy all their raw material and packaging material from one supplier from the last 22 years.

Pressure Groups

“Pressure groups are the special-interest groups that attempt to influence the actions of the organization”

Tetra Pak has no concerned with pressure groups.

Competitors

Tetra Pak enjoys complete monopoly in Pakistan since it is developed in this country. As there is no competitor their for Tetra Pak, so they have 100% market share and also greatest sales volume, but beside they also have the threat of some new company that will be launched their packaging in the market. So, they tried to develop new strategies after regular intervals.

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18. General Environment

“It is the broad external conditions that might affect overall organization’s performance”

Cultural and Social Environment

Every region in Pakistan has its own culture and every culture has its own demands. Items that are of eating and drinking also attract people but with better and safe packaging so that it also be feasible for health conscious people. Tetra Pak’s customer product is widely used in all the classes of Pakistan but especially in rich and educated people who are conscious of better and secure packaging. Their number is very less than as compared to other countries like USA, UK and other European countries, so that is the reason why overall sales is less.

Economic and Technological Environments

As we are living in a developing country like Pakistan here per capita income is very low so people cannot afford products of high prices as stylish packaging is some sort of luxury so most of the people can not afford it and also due to political and economical instability, the country is suffering in inflationary condition. This can affect the sales of the products. The economic conditions of Pakistan have worsened from past few years even then Tetra Pak’s sales are increasing (from Rs. 5, 70 million in 1998 to 1.1 billion in 2003). This may be due to the technological factor that the popularity of satellite channels is increasing day by day in each and every part of Pakistan and as a result people are becoming more about packaging and hygienic conditions. This is the reason that sales are not affected in Pakistan due to people awareness.

Political and Legal Environment

Federal, state, and local regulation. Limit choices available to organization.In case of consumer’s protection legislation, it will have no negative effect as Tetra Pak is environment friendly organization and cares about the health of its customers. There are certain laws for packaging control and hygiene in Pakistan and Tetra Pak follows them. Quality of Tetra Pak’s packaging is according to standards set by the government. Representatives of the government conduct surprise test to check the hygienic quality of the packaging. Political conditions of Pakistan are very unstable and it has a bad effect on every sector of economy

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including packaging industry. Even then the sales of Tetra Pak are unaffected.

Competitive Environment

As there is no competitor their for Tetra Pak, it enjoys monopoly in Pakistan since it is developed in this country but besides that they also have the threat of some new company that will be launched their packaging in the market. So, they tried to develop new strategies after regular intervals.

Political Conditions

Political conditions involve general stability of the country and attitudes of government officials toward business. Tetra Pak is adopting the concept of all consumerism since its establishment in Pakistan and Pakistan and that is the only reason that it is standing on the top of the market. They know how to care and capture the customers and how to retain them. Every government tries to provide public the best Tetra Pak is getting benefits from this act, as it is more practice of consumerism than its competitors.

Demographic Environment

Trends in the physical characteristics of a population. Demographic conditions are changing day by day in Pakistan. Through the change in the ideas, more women are getting into the working field, which is a good sign of Tetra Pak because females can make their own choices to decorate their places from millions of shadows, which Tetra Pak is offering. With a change in demographic conditions Tetra Pak now is facing new Challenges.

Global Environment

It is one of the major factors now days, which is affecting organizations. This is a truly global company. Its customers and consumers are all over the world and they manufacture and sell in all parts of the world. That geographic reach not only means they are delivering exactly what their customers and consumers want, the way they want it, where they want it, it also means that it affords the Group a level of protection against the vagaries of economic fluctuation around the world. So global conditions affect the organization, new technologies and entrants of new companies are always threats for Tetra Pak.

Ecological Environment

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The packaging of the products is harmless to the environment, as they are UHT treated and pasteurized. Tetra Pak cartons are fully recyclable. They can be made into high-quality paper products such as paper towels, tissues, stationary and other useful products like plastic and lumber, rulers and pens. They recently use campaign that is named as Proud Pakistanis Recycle Tetra Pak (Friends of the environment). The objective of this campaign is to provide a clean and healthy living environment to the people of Pakistan.

19. Level of Social Responsibility

Two opposing views of social responsibility are:

Classical View

Tetra Pak has also its classical view that is to maximize profits. Because what they do and perform, ultimate goal of an organization and manager is to operate the business in the best interest of the stockholders.

Socioeconomic View

But in Tetra Pak, managers are also socially responsible not only in making profits but also protecting and improving society’s welfare like:

They provide packaging of the products that is harmless to the environment, as they are UHT treated and pasteurized. Tetra Pak cartons are fully recyclable. They can be made into high-quality paper products such as paper towels, tissues, stationary and other useful products like plastic and lumber, rulers and pens. They recently use campaign that is named as Proud Pakistanis Recycle Tetra Pak (Friends of the environment). The objective of this campaign is to provide a clean and healthy living environment to the people of Pakistan and also to fulfill their social responsibility.

The Environmental services Tetra Pak can offer to their customers are:

• General recovery/recycling expertise

• Support on waste reduction efforts and production planning. This planning is very important to reduce product loss.

• Identifying equipment that customers can use to empty beverage cartons

• Tracking of and advice on compliance with current or future legislative requirements

• Support on implementation of environmental management systems

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• Providing general and product-specific environmental information for communication purposes

• Helping customers to improve performance and efficiency at their sites using Tetra Plant Opt(TM).

Also they perform recycling as well:

• Recycling

Recycling is a high priority requirement put on Tetra Pak by customers, consumers and society in general. We therefore find it important to make a commitment to recycling and do what we can to facilitate recycling of our packages.

Several of the activities we undertake to promote and facilitate recycling include:

- Actively supporting the development of new technologies for recycling has used packages and the recovery of the different materials contained in them.

- Working closely with governments, local authorities, suppliers, recycling companies and local entrepreneurs to find stable and low cost recycling solutions and capacity with minimal environmental impacts.

- Finding ways to make recycling more cost-efficient, for example by promoting new sorting equipment. Collection and sorting costs can form a considerable part of the overall recycling costs.

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• Food for development

For more than 40 years, Tetra Pak has been involved in providing milk to schoolchildren around the globe. Every year, more than 1000 million liters of milk is delivered to children in schools, in Tetra Pak packages. More recently, the company has taken new initiatives to help develop school feeding programme based on soybeans, rice, peas and other food-based beverages. Tetra Pak has also begun to work in partnerships that create integrated agricultural, food processing, packaging and distribution initiatives; complete food delivery systems - from "cow to consumer".

Tetra Pak’s Food for Development Office (FfDO) is the mechanism the Company uses today, to co-ordinate the extensive knowledge base gathered over so many years in school feeding and agricultural development and to make that experience available as part of the Group’s overall good corporate citizenship efforts.

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The FfDO works to co-ordinate and support school feeding and agricultural development programmes in partnership with development agencies, funding organizations and NGOs (Non-Government Organizations) and of course our customers.

• An urgent need

In the year 2000, more than 80 countries had lower GDPs than they had in 1990. Few people would dispute that the elimination of world poverty is a challenge that needs to be resolved on a global level.

To this effect, the UN member countries have signed a pledge, “The Millennium Development Goals”, to halve world poverty by the year 2015. To realize this, education, sustainable farming, food security and nutrition are key success factors.

With activities in more than 165 countries Tetra Pak recognizes its ability and responsibility to help. Dr Ruben Rausing, the founder of Tetra Pak, stated that: “A package should save more than it costs.” His principle echoes today in Tetra Pak’s commitment to making food safe and available everywhere.

For children growing up in impoverished areas, food consumed in school is imperative to retaining their health and motivation. Conservative estimates show that there are 300 million chronically hungry children in the world, of which 170 million are not fed at school.

Tetra Pak believes that the best way to help promote sustainable economic and social development is by founding strong partnerships between the public and the private sector. Strong ties between local government, private industry, NGOs, international and national development agencies are crucial to achieve substantial breakthroughs in education, sustainable farming, food security and nutrition. Experience shows that a school-

feeding programme can be the catalyst that creates the growth of local food production and processing

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• New feeding programme initiatives

In 1997 Tetra Pak started its own school milk programme in Indonesia covering 10,000 children. Through co-operation with the US Trade Office, a model for financing based on food aid donations was developed. The US Government, through the United States Department of Agriculture (USDA), have for many years donated surplus commodities to developing countries, often through the UN’s World Food Programme (WFP). Some of these donations are used for School Feeding Programmes.

At the G8 meeting in Japan 2000, which brought together the leaders of the eight leading economic powers, the USA launched the Global Food for Education Initiative. This and other US initiatives have so far resulted in a number of school feeding programmes based on Tetra Pak technologies and knowledge (Vietnam - 300,000 children, Bangladesh - 200,000 children, Indonesia - 800,000 children, and new programmes will begin in the Philippines, Pakistan and Uzbekistan during 2003). All these programmes are managed by the International Development Office of the US Co-operative Land O’Lakes - (LOL), with whom Tetra Pak has established a close co-operation.

With the world’s focus on the difficult HIV/AIDS situation in many African countries today - and the need to develop highly nutritious feeding products to improve the living conditions for HIV/AIDS infected persons - Tetra Pak is also intensifying its activities in this area.

20. The “Greening” of Management

Production of our packaging material is a key area of focus for Tetra Pak, and the one which we have the greatest chance of influencing.

Examples of the kinds of environmental impact associated with our manufacturing sites are:

• Raw material consumption (paperboard, plastics, aluminum foil)

• Handling of waste

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Energy consumption (our carton converting plants account for 94% of our total global energy consumption). We work towards reducing environmental impact as far as possible by using modern and environmentally sound production techniques. To ensure continuous environmental improvements, all our factories are implementing Environmental Management Systems (EMS) and certifying these to the international standard ISO 14001 or EMAS. More than 73% of Tetra Pak’s manufacturing sites now have environmental management systems in place. The goal is to reach 100% by 2004.

In addition, we are monitoring performance in a number of key areas using environmental performance indicators (e.g., electricity use, fuel and fresh water consumption, total material waste, waste to landfill). Furthermore, our individual plants are encouraged to set their own reduction targets.

21. Managerial Ethics

“Ethics are rules and principles that define right and wrong conduct”

Ethics for managers are important because mangers are whom who control the whole organization; they are the role models for all the employees working in that particular organization, so they are supposed to follow the ethics. These are the following views of Ethics.

Utilitarian view of Ethics

“The view of ethic that says that ethical decisions are made only on the basis of their outcomes or consequences”

It is the view, which shows or tells us that decisions should be made in a way to get good and favorable results .For that purpose decisions are made after taking and analyzing quantitative measures. According to that ethical view managers should take decisions to get the best outcome, like manager thinks that leaving of 30% work force is in the favor of an organization and stake holder and that decisions increase the output than he should take that decision. Tetra Pak managers are well trained and they are well motivated to take good and favorable decision for an organization, which increase the output of an organization.

Right view of Ethics

“A view of ethics that is concerned with respecting and protecting individual liberties and privileges such as freedom of conscience, free

speech, life and safety and due process”

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Tetra Pak take care of this code of ethics .Its provides employees freedom of speech, safety and self-respect. Tetra Pak managers are trained to respect others, and give others opportunity to speak what ever they want to speak. They gave all the incentives to their employees as well.

Theory of Justice view of Ethics

“A view of ethic in which manager imposes or enforces rules fairly or impartially and do so by following all legal rules and regulation”

Sometimes managers have to take decisions, which are just imposes on employees, like assigning duties, and fixing wage rate. Manager ethical duty is that he gives same pay to the employees those who are performing the same type of duties. In Tetra Pak duties and wages are fixed at the first day of the job, Tetra Pak mangers try to behave equally with all the employees. Tetra Pak management also try to eliminate the favoritism from its environment.

• Core Values

In the absence of detailed rules and regulations, our corporate culture helps guide our decisions. The fundamental core values within Tetra Pak relate to our corporate culture, serve to keep our team together and give us a true competitive advantage.

• Freedom with Accountability

Freedom with Accountability characterizes our working lives. We believe each Tetra Pak employee should have the power to take initiatives to develop and improve our business, sharing knowledge with our colleagues - and we act as if the company was our own. But with the freedom, we accept the responsibility to act always in the best interests of Tetra Pak.

• Partnership with Customers, Suppliers and Colleagues

Partnership with Customers, Suppliers and Colleagues is our second core value. We want our customers to see us as proactive business partners, using our global expertise in food processing and packaging to meet their needs, add value and deliver competitive advantage. We want our suppliers to speak of our high regard for quality in everything we do. With our colleagues, we focus on positive outcomes and on creating a good working climate, sharing knowledge and common goals. We remember that partnership at all levels also means listening, recognizing and learning from the achievements of others.

• Long-Term Perspective

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We take a Long-term Perspective at Tetra Pak, recognizing that our vision is best served by working towards long-term goals. We don't forget the need for short-term results, but we avoid 'quick fixes', which only bring temporary benefits. Instead, we focus on learning and experimentation. This also means we seek to develop mutually beneficial long-term commitments to customers and suppliers.

• Innovation and Creativity

Innovation and Creativity at Tetra Pak means we deliberately set ourselves challenging goals, to encourage us to constantly strive for new and better solutions. We keenly follow market trends and technical developments and strive to gain the competitive edge. We are proud to share and build on the ideas and the knowledge of our partners. We work to make sure that everything we produce, product or service is fully fit for its purpose - and we continue to innovate to ensure they remain so. We take pride in our willingness to change and know that past performance is no guarantee of tomorrow's success.

• Commitment and Fun

We promote both Commitment and Fun at Tetra Pak. At work, we enjoy the benefits of membership in a committed team that puts the company's interests ahead of our own. We know that having fun on the job promotes creativity and improves results and we work hard to maintain this working atmosphere. We take pleasure from achieving our objectives and seeing things through to the end. We are self-motivated and take responsibility for ourselves, our attitudes and the working climate around us.In the absence of detailed rules and regulations, our corporate culture helps guide our decisions. The fundamental core values within Tetra Pak relate to our corporate culture, serve to keep our team together and give us a true competitive advantage.

22. Packaging

Tetra Pak is no longer only synonymous with liquid-food cartons. They now supplyhundreds of different types of ambient, chilled and plastic packaging, from cartons to EBM and PET bottles with multiple packaging options. They also deliver around 89

billion units of different types of packaging to more than 165 countries and have experience in packaging almost every type of product, in almost every climate and in

almost all conditions.

23. Product examples

Tetra Brick: Aseptic packages have a rectangular brick shape and are specifically

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designed to be stacked on the European pallet. It exists in four different formats: Baseline, Midline, Squirreling and Slimily. The basic Tetra Brick Aseptic technology is the same one used to produce Tetra Classic Aseptic, Tetra Prism Aseptic, Tetra Wedge

Aseptic and Tetra Finn Aseptic packages.

Tetra Recant is a carton-based processing and packaging system for retorted food developed by Tetra Pak. Using retorting technology or in-container sterilisation, they are now able to provide an alternative packaging solution for a variety of food products that

have traditionally been packed in cans or glass jars such as fruits, vegetables, ready meals and pet food.

The Tetra Prisma Aseptic package is a unique carton package with its octagonal shape and eight facing panels. It is suitable for iced tea, iced coffee, wine, milk, still

drinks and juice beverages. The volume range is 200 ml, 250 ml, 330 ml, 1,000 ml and 2,000 ml.

The Tetra Top package consists of a unique combination of fibre-based body and integrated plastic lid.

24. Planning Process

Planning is often called the primary management function because it establishes the basis for all other functions that managers perform. Without planning, managers of Tetra Pak wouldn’t know what to organize lead and control. In fact, without plans, there wouldn’t be anything to organize, lead; or control. So, in Tetra Pak, managerial planning involves two elements:

Goals

“Goals are the desired outcome for individuals, groups, or entire organization”

Tetra Pak also has several goals. At first glance, it might appear that organizations have a single objective to make a profit, but in reality, all organizations have multiple objectives.

There are different types of goals. The one that used in Tetra Pak are:

• Stated Goals

Official Statement of what an organization says, and what it wants it’s various stakeholders to believe, its goals are”

Tetra Pak also made an official statement of what is to be done in next few weeks. Usually this statement is for short-term goals that they have to

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accomplish with in a year. The copy of this statement is with every employee who took part in this activity.

Plans

“Plans are documents that outline how goals are going to be met including resource allocation, schedules, and other necessary actions to accomplish

the goals”

There are many types of plans, but the one that used in Tetra Pak are follows.

• Strategic Plans

“Plans that apply to the entire organization, establish the organization’s overall goals, and seek to position the organization in terms of its

environment”

Tetra Pak use strategic plans to make their overall goals and objectives. It is very necessary to have such plans so to achieve their targeted goals.

• Operational Plans

“Plans that specify the details of how the overall goals are to be achieved”

Now, with strategic plans, they also need a plan that tells them that how to achieve their goals. It is with the help of operational goals.

• Directional Plans

“Plans that are flexible and that set out general guidelines”As Tetra Pak is very innovative and has dynamic environment, so their plans are always changing according to various factors like market trends, environmental factors and many more. So, they use flexible plans like directional plans.

Apart from all these plans, the plans made in Tetra Pak often divided into two terms. Some plans are with a time frame of less that one year (Short-term) and some are with more than one year (Long-term). Also, some plans made in Tetra Pak are specifically to meet the need of a unique situation (Single-use plan) and some plans provide guidance for activities repeatedly (Standing Plans).

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25. Approaches to

establish goals

Management by Objective (MBO)

Tetra Pak is very much people orientated organization. They always concerned about their employees. So, they use MBO to establish goals. In this type of system, all the members of the organization are establishing goals jointly. So, it means they establish goals as well as motivate their employees by involving them in organizations decision.

26. Business Strategy

“The set of managerial decisions and actions that determines the long-run performance of an organization”

Different organizations have different strategies and managers are responsible to accomplish these strategies. So, Tetra Pak use:

Corporate level Strategy

“An organizational strategy that seeks to determine what businesses a company should be in or wants to be in”

Tetra Pak use corporate-level strategy to make strategies. So, after using this strategy, analysis of the whole organization took place.

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• SWOT Analysis with respect to 5 P’s

Product

StrengthsTheir biggest strength is that they have the complete monopoly in Pakistan. There is no other packaging company in Pakistan.

a. Their other strength is getting ISO 9001 and ISO 14001 accreditation, making it the first and only packaging company in Pakistan to achieve the honor.b. Their biggest strength is their goodwill and old name because it is the only packaging company in Pakistan.c. It is the most trusted company in Pakistan. They offer packaging to products of 18 companies in Pakistan.

Price

Strengths

Their price depends on their customer’s price. Their mostly customers are targeting upper and upper middle class. So they did packaging on their customer’s demand.

Weaknesses

Mostly customers of Tetra Pak targeted toward upper and upper middle class and their prices are somewhat higher. So, this also affects their sales.

Opportunities

They have the price according to their customer demands. They have their customers from all classes i.e. from upper to lower. So they have different price levels for all the classes.

Threats

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They have the threat that in future may be their new competitors target all classes at lower prices.

Place

Strengths

a. They have their sales offices in the major cities of Pakistan. They first introduced Tetra Pak in collaboration in packages in Pakistan, so their main office is in Lahore. Also, they have their other offices in Islamabad and Karachi etc.

b. Their packaging is well known and distributed in almost all the big and small places in Pakistan.

Weaknesses

They don’t have any sales offices in small but rich industrial cities like Faisalabad etc. This may have a negative effect on their sales in future.

Opportunities

It is their opportunity that they have sales offices in major cities of the country like Lahore, Islamabad and Karachi.

Threats

They have the threat that new competitors enter at any time in the market. As Tetra Pak has no sales offices at small cities, so may are new competitors will target those small cities. So this is the main threat for them.

Promotion

Strengths

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a. Although their ads are not regularly presented in television, yet they have the successful ad campaigns due to the presence of the well-known personalities.b. They have the good relationship with wholesalers, retailers and dealers. c. They also promote heavily by arranging seminars, functions, and press conferences.d. They also launched their new techniques by first introducing them through.

Weaknesses

Tetra Pak’s advertising is not frequent enough to attract people. Their ad though successful but should be changed now.

Opportunities

They have very good image in the market as they arrange seminars and campaigns on launching of their new products.

Threats

They have the threat that may be their new competitors think of any new and challenging campaign just to increase their popularity.

Positioning

Tetra Pak have positioned their packaging world wide as:

“Protects what’s good”

In Pakistan, the milk is more used than juices, so they are creating the image of their product (packaging) by using the slogan

“Doodh, Aur Kiya!”

27. Planning Tools and Techniques

Now we look forward to see which techniques have been developed to help managers in planning.

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Environmental Scanning

“The screening of large amounts of information to anticipate and interpret changes in the environment”

It involves two basic parts:

• Competitor Intelligence

“Activity to identify who competitors are, what they are doing and how their actions will effect the organization”

As there is no competitor of Tetra Pak in Pakistan, so they have no need of Competitor Intelligence and Reverse Engineering.

• Global Scanning

“Screening of information on global forces that might affect an organization that has global interests”

It is important for Tetra Pak to globally scan its organization, as it is a very huge industry. Also because world markets are complex and dynamic, managers have expected the scope of their sacking effort to gain vital information on global forces. Tetra Pak use information networks and computerized systems to monitor global changes.

Forecasting

“Forecasting is the process of predicting organization’s outcome”

In Tetra Pak, both the methods of forecasting are used:

• Quantitative Forecasting

Tetra Pak applies a set of mathematical and statistical rules to a series of past data to predict outcomes.

• Qualitative Forecasting

As Tetra Pak has very qualified managers and employees, so they used to make their organization’s decisions on the basis of their experience, intelligence and judgment.

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Benchmarking

“The search for the best practices among competitors or non competitors that led to their superior performance”

In Tetra Pak, benchmarking is not used, as there is no competitor. Yes, to overcome the threat of competitors in the futures, they change according to the new market and current demand and also according to their customer requirements.

28. Technique for allocating resources

“Resources are the assets of the organization and include financial, physical, human and intangible resources”

There are number of techniques to allocate resources. In Tetra Pak, following technique is used.

Budgeting

“It is the process of building a numerical plan for allocating resources to specific activities”

Tetra Pak used this method to allocate resources to specific activities performed in the organization. Managers typically prepare budgets for revenues, expenses, and large capital expenditures such as equipment.

Tetra Pak’s Budgeted Sales-2004

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2004 Total net sales (bio Euro) 7.3

Packages delivered (million) 104,975

Liters of products delivered in Tetra Pak packages (million) 58,820

Employees 21 100

Machine assembly plants 15

Packaging and packaging material plants 65

Number of markets 165

Market companies 58

Sales offices 47

R&D centers 20

Service centers 59

Packaging machines in operation 8,702

Packaging machine deliveries 768

Processing units in operation 20,730

Processing units deliveries 2,630

Distribution equipment in operation 12,332

Distribution equipment deliveries 1,501

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29. Organizational Structure

“Organizing is the process of creating an organization’s structure”

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1.W

ork Specialization

“The degree to which tasks in an organization are divided into separate jobs”

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Tetra Pak has very High work specialization. The departments being made according to the different work activities. For example, there are different departments of Management, Marketing, Finance, Human Resource and many more. So, in this way work is being specialized in Tetra Pak.

Departmentalization

“The basis by which jobs are grouped together”

In departmentalization, Tetra Pak uses Functional Departmentalization. In Tetra Pak, jobs are being divided according to the function they perform. For example, all the finance people come under finance department.

Chain of Command

“The continuous line of authority that extends from upper organizational levels to the lowest levels and clarifies who reports to whom”

There are three things in chain of command for Tetra Pak. Tetra Pak uses Authority that gives to the top management to tell all the people what to do and expect them to do it. Then there comes, Responsibility, now after getting decisions from the top managers, it is the duty of all the employees to perform their assigned tasks. Then last but not the least, comes, Unity of command, it is also present in Tetra Pak, each person or first line manager reports to middle manager and middle manager and middle manager then reports to top level manager.

Decentralization

“The degrees to which lower-level employees provide input or actually make decisions”

In Tetra Pak, there is a concept of decentralization. Every person from upper to lower level is involved in making organization’s decision.

Formalization

“The degree to which jobs within the organization are standardized and the extent to which employee behavior is guided by rules and procedures”

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In Tetra Pak, formalization is Low. Employees have a great deal of freedom to work in what the ways they like and job behaviors are relatively unstructured.

30. Organizational Design

Organic Organization

“An organization design that’s highly adaptive and flexible”

Tetra Pak uses this organic structure because of its extremely dynamic environment. There is a high work specialization, low formalization, and they change rapidly as need requires. Employees are highly trained to handle all kind of jobs that are assigned to them. There is high decentralization and cross-functional team to perform certain duties of the organization.

31. Employee’s Motivation

“Motivation is the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some

individual need”

Tetra Pak use two theories to motivate its employees.

Herzberg’s Motivation-Hygiene Theory

“The motivation theory that intrinsic factors are related to job satisfaction and motivation, whereas extrinsic factors are associated

with job dissatisfaction”

Tetra Pak uses this theory because they believe that an employee’s relation to his or her work is a basic one and that his or her attitude toward work determines success or failure. So, it is very important to know that what people want from their jobs. Tetra Pak is very much concerned by this factor, it always gave incentives to its employees as well as observed that whether this employee is suitable for this job or not and if he or she is suitable and working better then sees that is he or she is happy to be on this post or not.

Three-Needs Theory

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“This is the motivation theory that says three needs – achievement, power, and affiliation – are major motives in work”

Tetra Pak uses this theory to motivate its employees. First is need of achievement, this is necessary for personal achievement of employees because then they think of their accomplishments and not on the rewards. Then comes, need for power, they need to make others behaved a way that they wouldn’t have behaved otherwise. And the last is need for affiliation, means the desire for friendly and close interpersonal relationships.

Tetra Pak also arranges different events and rewards to motivate its employees like:

• Trips• Concerts• Annual Employees Day• Employee of the month• Bonus• Parties

Tetra Pak is present in 165 markets every day, normally on call around the clock. That wouldn't be possible, of course, if it weren't for committed employees.

Working is a big part of life. Sometimes you probably spend more time at work and with your colleagues, than with family and friends. Therefore it's so very important that you feel not only satisfied but also challenged by your daily tasks - and that your work allows for personal space and leisure activities in between. Only then you can perform well in the long run.

That kind of working environment is what Tetra Pak is trying to provide; part of a culture that flows through all levels and to each individual in the organization. We've expressed it in what we call the People Idea and in our Core Values. In this section we'll develop our thoughts on these matters.

32. Leadership

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“It is the process of influencing a group toward the achievement of goals”

Democratic Style

In Tetra Pak, democratic style is used for leadership because all the managers and leaders involve every single person in decision-making and also encourage participation in deciding the work activities, methods and goals.

Because in Tetra Pak they believe in giving their employees the combination of freedom with accountability in their experience results it is the one of the best solution. They want their employees to make the most of what they have got. They also expect their employees to work in partnership with all other colleagues in all parts of the company, focusing at all times on finding the best solutions.

33. Control Processes

“The process of monitoring activities to ensure that they are being accomplished as planned and of correcting any significant deviations”

Tetra Pak is very conscious about their products, also they have very much responsibility on overall organizations shoulder to meet customer requirements because they are the only packaging company in Pakistan. So, they evaluate their overall performance with actual standards that they were set in their planning phase, so to get the complete idea, where they stand. So, they apply control processes in the form of:

Feed Forward Control

Tetra Pak uses this control mechanism to overcome the threat of problems after the product is in the market and also to prevent anticipated problems. They use this through the use of timely and accurate information that often is difficult to get. So, by using this method, they are able to cope with the problems earlier, so they have no problem after the product is launched in the market.

Concurrent Control

Tetra Pak sometimes also used Concurrent Control to overcome some of the problems that may occur in unique situations like in the case of any mishap. In this situation, they use this control to check the product when the activity is in progress. In this way they also save the cost of correcting the errors after the product is launched in the market.

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34. The BCG Matrix

A

balanced product portfolio

The amount of products in the portfolio of B2B organisations tends to be less than in B2C organisations as business demand polarises around functional specialised products rather than brands and brand extensions. Procter & Gambol will offer many different cleaning products and brands for its different consumer segment needs based on emotional as well as functional needs. On the other hand the need for industrial cleaning products will be based almost solely on effectiveness at solving a practical problem and so the range of products wanted will be less. It is still essential, however, that the range of products at all stages in the portfolio match the needs of the target segments both at the present and into the foreseeable future. What constitutes a balance product/service portfolio will vary from industry to industry but the need to have new products on stream and coming through the system as older products weary and decline along the product life cycle should be self-evident.

The Boston Consultancy Group Matrix (www.bcg.com)

The Boston Consultancy Group Matrix is a model that looks at the relationship between market share and market growth. Products, product lines of SBUs ( a strategic n business unit is a term used for anything from a product through to a company division or subsidiary that is strategically important to the health of the organisation) are then plotted on the matrix according to market share and market growth. As with most marketing

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models the value comes from the discussion that should take place when analysing product position on the matrix and not as some kind of predictive tool. It forces staff members to take time out to look at both the current state of both own product portfolio mix compared with the mix of the competitiors. In fig. 6.1 the left vertical axis measures the rate of market growth and the top horizontal axis measures the relative market share. The rate of growth measure to be used will be any rate considered relevant by the practitioners. In our example it will be seen that 5% and 10% market growth measures are used. You will also see that there is a high and a low growth rate box.

The SBUs are designated by circles and the size of the circle will indicate the amount that the product contributes to product portfolio overall company revenue.

The bottom horizontal axis measures market share in relationship to the nearest competitor. A figure above I indicates market leadership and market share above the nearest competitor, for example x5 = 5 time market share compared with the nearest competitor. A figure less than I indicates non-market leadership and sales in relationship to the market leader, for example x.o5 = 5% of sales compared with the market leader. Again there is a high and a low box. (As with market share the figures used are relevant and can be decided again by the marketing practitioners).

With all the products, product categories or SBUs plotted on the matrix grid an overall pattern can be seen covering company products in terms of:1 Whether a particular product (SBU) has a high or low market share 2 Whether the market for that product has a high or low market growth 3 The contribution that product makes to overall revenue 4 The position each product has in the market compared with the major competitor

BCG portfolio matrix revenue and cost indicator

The Matrix can also be used to indicate the organisation’s cost and cash flow position where x = the level of revenue received. So sales of xxx and costs of xxx would indicate high revenue and high cost of sales whilst sales of x and costs of xx would indicate low sales revenue and higher cost of sales. These can be seen entered into each of the boxes.

BCG Matrix explained

Then process is circular moving from the top right hand square, the ‘problem child’ to the top left hand square ‘the rising star’ and then downward to the square below ‘the cash cow’ and finally to the bottom right hand square, the ‘dog’ mirroring the movement of products through the product life cycle.

The problem child square – product A has a low market share in a growing market and is at the bottom end of this market growth. . product B is doing better, being higher in the segment. It is called a problem child (or question mark) because there is doubt about the product’s ability to increase sales and move into the rising star box.

The rising star a square – A product located here will have a high market share in a

high growth market (hence rising star) . It can be seen that product C is better placed than product D.

The cash cow square – Products here have a high market share in a low growth,

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mature market. Again product E is better positioned than product F. Products here are called ‘cash cows’ because cost are minimal because the products are well established, there are economies of scale and learning curve advantages and revenue is high although the market will begin to slow down. Cash cows should be used to support new product development in the ‘problem child’.

Dog square – The dog square is characterised by low market share and low market growth, and the future looks bleak, hence the adjective ‘dog’. The market is in decline and it can be seen that although G is in a better position than H both have low market share. The choice is to either liquid the product or, if possible, to re-launch and reposition through the ‘problem child square and set the whole process in motion again.

A balance portfolio

Ideally a company would maintain a balanced portfolio of products. In theory, if the company had 100 products there would be 25 in each square with a continuous anti-clockwise movement of products, new products coming through the ‘problem child square’ generated by contributions from ‘cash cows’ and old products would be declining and disappearing through the ‘dog square’. In practice the number of products in each square will depend on both the type of product and the demands of the industry. In some industries more products would need to be in the problem child square than in others. This might because of the long lead-time taken in research and development, for example pharmaceutical products that can take 10-20 years coming to market or because customers demand a continuous supply of new products, for example in hi-tech industry.

A simple diagram of a B2B balance portfolio

Product growthHigh Low

High 25 25Rising star Problem

childMarket share

25 25Low Cash cow Dog

34. Bibliography

Faiza Maqbool Organizational Development Executive at Tetra Pak Pakistan Ltd.

Javeria Khan Human Resource Executive at Tetra Pak Pakistan Ltd.

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www.tetrapak.com

Conclusion:

Today, Tetra Pak it is the only international company in the world able to provide integrated processing, packaging, and distribution line and plant solutions for food manufacturing.

This means that Tetra Pak's customers enjoy the advantage of being able to get multi-product solutions from a single source, with matching equipment at every stage.

Products

Tetra Pak supplies complete systems for processing, packaging and distribution. Tetra Pak processing and packaging systems make economical use of resources. The processing systems are developed to treat the products gently, and consumption of raw materials and energy is minimal during the manufacture and distribution of packages.

Tetra Pak packages fulfil the main purposes of packaging, namely to:

maintain product quality

minimise waste

reduce distribution costs

Packaging

Tetra Pak can offer packaging machines for a wide range of packaging alternatives. The company produces packaging machines as well as packaging material.

Processing

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Tetra Pak supplies complete processing and packaging lines, and takes total responsibility for the equipment supplied. Processing equipment includes separators, heat exchangers, homogenizes and evaporators, as well as equipment for aseptic processing and flow.

Distribution

A large number of different types of distribution equipment, such as conveyors, tray packers, film wrappers, crates and roll containers are developed, produced and marketed by Tetra Pak.

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