REYNOLDS FRUITS CATERING

Student Name: Student NumberPrince Osei 15125059Loise Nganga 16141870Jacqueline Nkya 16141357Md Najmus Saqib 16147918

CONTENT• Company overview and mission statement• Corporate values• Organizational culture• Organizational capabilities – Greenly • Corporate resources; porters value chain• 7’s framework McKinsey• Strength and weakness• macro analysis; PESTEL• Competitive environment: Porters 5 forces• Competitor Brand Perceptual Map• Industry Life Cycle• Market Analysis• Opportunities and Threats• SWOT• Reference

Reynolds is one of the leading fresh

fruit & vegetable

suppliers and wholesalers

to the UK foodservice and catering

industrybased inWaltham

Cross, Hertfordshire

Mission StatementOur goal is to make all of our customers’ lives easier every day by offering great quality and service at a fair price. We take great pride in our work, and our ability to deliver means that our customers trust us to ensure the continuity of their businesses on a day-to-day basis, whilst maintaining high ethical and environmental standards at all times

Key Facts:1945, William Reynolds set up his fruit & vegetable store.1988, Reynolds starts supplying fruit and vegetable to restaurants, hotels in London and the Home Counties.It has seventeen (17) growers It has seven (7) regional depots B2B Customers ie: Hotels, Restaurants and pubs, events catering, Healthcare, Education, workplace catering, travel and leisure. Ranked as 150th among the 250 UK’s top mid-market private companies.

SOME INFORMATION ABOUT REYNOLDS

Reynolds s (2016) website

Corporate ValuesPromoted core values

Environment Supplier responsibility Teamwork & Customer care

Quality & Integrity

• ‘Our mission is making lives easier for our customers.’

Focus on:• Food Safety• Sustainability• Quality• Climate change• Re-use and recycle • Responsible Sourcing

• Ethical practices

Focus on:• Social standards• Education• Worker rights

• Teamwork

Focus on:• Openness• Working without fear• Respect for all ranks • Diversity and equal

opportunity

• Commitment to fair employment practices, building relationships and seeking continuous improvements

Reynolds s (2016) website

Johnson et al. 2012

Control systems

Stories and Myths

Power structures

SymbolsThe Paradigm

Organisational structure

Routines and rituals

Organizational Culture: Making life easier for customers

Routines and rituals

Organisation structure

Stories and myth

• Communality engagement• Market Place news• Development Chef• Collaborative Whitepaper• Events sponsorship

• Hierarchical structure• Collaborative structure • Both mechanistic and organic growth of departments• Operational managers

Organizational Culture: Making life easier for customers

Johnson et al. 2012

• Work as family unit• Diary inspection• Highest ethical standard of quality• Health Consciousness

Organizational capabilities: Resource imitability

• Reynolds Brand• Logo/Patent• Patent and trademark

• Level of brand loyalty • Price elastic market demand

• Warehouse Facilities• Skilled staff • Value chain• Advertising campaigns• Supply chain

• Unskilled staff• Undifferentiated products

Cannot be imitated

Difficult to imitate

Can be imitated but at a cost

Easy to imitate

Greenley (1989)

7S framework McKinsey

• StrategyProduct Quality Price differentiationsStrategic alliance with the use of growers

• SkillsSpeciality procurement teamdynamic and experts field personnel Supplier chain development

• StaffBoth skill and unskilled staffTrain staff to understand the need to improve customer handling in order to aid sales

• Structureflat organisational structure with just few or no intermediaries. Ie: managing director Tony Reynolds, Commercial Director, Finance Director, IT director, Operational Director

• Systems Improve systems in all areas of including grower schemes, supplier and customer schemes

• Shared ValueBelieve in teamwork & OpennessDiversity and equal opportunity, Work as a family unit

Strategy

Structure

Systems

Style

Staff

Skills

Shared values

Reynolds s (2016) website

Corporate resources: Porters value chain

Marketing & Sales

a. Market Placeb. Media Centrec. Sponsorshipd. Websitee. B2B

Inbounda. Staffsb. Training &

Developmentsc. Driver

developmentd. Reusable crates

schemee. In house

technical capability

Operationsa. Long term

contracting basisb. 17 growersc. Building

relationship with suppliers

d. Engage Red Tractor Farm Assured Suppliers

Outbound

a. Transportation system

b. Retailers and wholesalers

Procurement

Firm Infrastructure

Human Resources Management

TechnologyUsing internet (website) to promote itself

Valu

e Ad

ded,

Les

s co

st =

pr

ofit

mar

gin

Service

a. After sales services

b. Quality Assurance

c. Customer Enquiries

• Driver Development Scheme (DDS) • 700 Employees

• It has procurement team• It has chief Chef• Engages Suppliers • Contracting growers

• Waltham Cross, Hertfordshire. • Warehousing Facility• Experts in Green grocers• Transportation

Strengths and weaknesses

Strengths Weaknesses

- Access to growers

- Reused Crate Scheme/Recycling Policy

- Ability to build relationship, trust

- Product Quality

- Excellent Procurement Team

- Supplier commitment

- Contracting growers

- Greater Customer service

- Ability to supply to leading hotels

- Stronger/Wider Community engagement ie: Cancer Research

- High perish products

- Inability to recruit young careers in the industry

- Seasonality of products

- Product wastage adding to cost

- Inability to fix own price leaving that to customers for 6 months

- Inability to deal with challenges around labour cost which equates 70% of fixed cost

- Inability to remove supply chain costReynolds s (2016) website

Macro-environment analysis: PESTLE

Legal

Political

Social

Economic

Technological

Environmental

• Stricter EU and UK Regulatory requirements• Foreign Trade Agreements• UK Referendum• Post Referendum pressures and uncertainties• Government austerity policy

• Socially conscious consumers ie: estimated 21 million people suffer from allergy • Increase in consumer spending• Change in lifestyles & buyer behaviour – health concern• Ability to draw up socially acceptable programs by providing for the needy ie: crate

scheme

• Labour cost ie: Wage rise from £6.50 to £7.20 an hour highest• Inflationary pressures on the pounds• Interest Rate halving by Bank of England to 0.25% from 0.50% with

possibility of further cut to stabilise the Banking system• Domestic Farmers commanding premium pricing• Low cost Eastern European producing countries

• Safe, health and sustainable supply chain • Commitment to measuring and reducing impact•

• The UK Food Information Regulations 2014 (FIR) which affect/impact Reynolds and supplier labelling and packaging CBI (2016)

Defra (2016)

EU (2016)

Threat of new entrants: Low

- High price, high quality- Product differentiation

- Patents Rights- Forward & backward integration

- Growers License & exclusive partnership to lower threat

Rivalry between competitors: High

-Brand loyalty -Product life cycle: Growth

- High demand for exotic, tropical and off-season fruits

- High level of compliance-

Threat of substitutes: High

- Many brands offering similar/same competing products- Alternate products like fresh snack, organic fruits,

- Bargaining power of

suppliers: Low

-Large number of suppliers come together to influence process-Power of European importers

Buyer bargaining power: High

- Differentiated product- Higher demand of quality

- Price elastic product

Competitive Environment: PORTERS 5 FORCES

CBI (2016) Ministry of Foreign Affairs

Competitor brand perceptual map: Fruits and vegetables

High Quality

Low Price

Munneries

Suffolk Produce Ltd

High Price

Low Quality

Industry Life Cycle

Market Introduction

stage

Growth Stage

Maturity Stage

Decline Stage

CBI (2016)

Monopolistic market

Lots of firmsEasy entry and exit barriers Varieties of products

Linked to Elastic demand curve as many rivals produce substitutes

products and

Product differentiated in styles, packaging, advertisement,

location and pricing

Market/Industry Structure Analysis

Probability of opportunityCa

pabi

lity

Monitor Exploit

Ignore Investigate

0

10

1

1

3

6

2

7

4

5

1. High demand in Exotic products

2. Securing long term relationship

3. Entering supply chain agreement i.e.: forward and backward integration

4. Creation of Niche market

5. Taken advantage of EU Free Trade Agreement

6. Innovation and Different ion

7. Engaging growers in exclusivity or licensing partnership with seed companies

8. Gathering Information on which varieties are in demand

9. European regulation on plant breeders right through Community Plant Variety Office (CPVO)

8

9

Classification of Opportunities using BCG Matrix

CBI (2016)

Probability of threatCa

pabi

lity

Competent Prepared

Monitor Defenceless

0

10

1

5

8

34

7

2

1. Economy stabilising: Increase in interest rates

2. Rate of technological development

3. Intense competition ie: lots of competing companies

4. Substitute products ie: Snack, Processed fruits

5. Possible adjustment of taxes in the UK arising from Brexit

6. Consistent increase of Labour cost

7. Inflationary Pressures

8. Fluctuation and fall of the Pound (£) to majority of trading currencies

9. Unreliable weather pattern globally

10.Brexit uncertainties and market volatility impact

9

1

Classification of Threats using BCG Matrix

CBI (2016)

SWOT analysisStrengths Weaknesses- Access to growers- Reused Crate Scheme/Recycling Policy- Ability to build relationship, trust- Product Quality - Excellent Procurement Team- Sophisticated global supply chain- Contracting growers- Greater Customer service- Ability to supply to leading hotels- Stronger/Wider Community engagement ie: Cancer Research- Employees- Ability to create niche - Strong brand recognition in the industry- Strong logistical and distribution channels- Ability to secure emerging growers- Responsible sourcing- Commitment to reducing impact on the environment

- High perish products

- Seasonality of products

- Product wastage adding to cost

- Inability to fix own price leaving that to customers for 6 months

- Inability to deal with challenges around labour cost which equates 70% of fixed cost

- Inability to remove supply chain cost

Opportunities Threats1. High demand in Exotic products2. Securing long term relationship3. Entering supply chain agreement ie: forward and backward integration4. Creation of Niche market5. Taken advantage of EU Free Trade Agreement6. Innovation and Price differentiation 7. Engaging growers in exclusivity or licensing partnership with seed

companies8. Gathering Information on which varieties are in demand9. European regulation on plant breeders right through Community Plant

Variety Office (CPVO)

1. Economy stabilising: Increase in interest rate2. Rate of technological development 3. Intense competition4. Substitute products ie: Snack, Processed fruits5. Possible adjustment of taxes in the UK6. Labour cost7. Inflationary Pressures 8. Fluctuation or fall of the Pound (£) to majority of trading currencies9. Unreliable weather pattern globally10.Brexit uncertainties and market volatility impact

Referencesa. Johnson, G Whittinghon, R and Scholes, K (2012), Fundamentals of strategy, 2nd Edition, Financial Times, Prentice Hall,

Pearson, London

b. https://www.cbi.eu/sites/default/files/market_information/researches/trade-statistics-europe-fresh-fruit-vegetables-2015.pdf-accessed 18/10/2016

c. http://www.reynolds-cs.com/-accessed 19/10/2016

d. https://www.gov.uk/guidance/comply-with-marketing-standards-for-fresh-fruit-and-vegetables-accessed 15/10/2016

e. http://www.ons.gov.uk-accessed 20/10/2016

f. http://www.cert.org/cybersecurity-engineering/research/survivability-analysis-framework.cfm?-accessed 08/11/2016

g. http://www.reynolds-cs.com/wp-content/uploads/2014/07/Greengrocer-newsletter-August-2016.pdf-accessed 11/11/2016

h. http://www.reynolds-cs.com/your-business-accessed 11/11/2016

i. http://www.bbc.co.uk/news/business-37373094-accessed 11/11/2016

j. https://www.gov.uk/national-minimum-wage-rates-accessed 11/11/2016

k. http://www.reynolds-cs.com/growing-responsibly/sustainable-foods-and-supplies/red-tractor-approved-accessed 11/11/2016

l. http://www.reynolds-cs.com/our-food/food-information-regulations-accessed 14/11/2016

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