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Portrait of a companies success

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One can hardly find a party without them, the Kelly products: Popcorn, chips, peanuts have been keeping the American Party flair going for more than 40 years. Kelly’s is a brilliant Viennese company with a long traditional success story. The crunch-munch story began in Vienna during the post wartime, 1955. The US major Howard M. Kelly tried to find a way to stay in beautiful Vienna – he met Herbert Rast. In 1955 nobody in Austria wanted to eat popcorn. And so the two of them showed the Austrians that eating popcorn in cinemas is a great experience.

The two founded the first American popcorn company with the motto: “If it doesn’t work- it does not work”. This was said without having much business experience. They had no clue about facts and figures the only thing they knew that the price of popcorn in American cinemas was 10 cents.

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10 Cents at that time was 2 ; shillings and that is the price they charged. The company expanded quickly and they soon saw that it is important to include potato chips.

This was the start of a very funny way of American advertising that still continues today. There were 46 producers of popcorn, later there was 25 of them. And 10 years after that there was just Kelly’s providing the market with the product. Not only did they have quality, they had the know-how to produce and distribute. In those days they drove to every wholesaler in small cars delivering the fresh product and collecting the outdated. They were always the best and remained till this day. The product line quickly grew, production needed more space and that is when Helmut Jordan entered the company. All the work paid off and the company needed a larger production infrastructure. The found the best suited place about 25 km south from Vienna in Fachstetten. There they rented a building 25 m long, and 70 m wide. It was packed with all the necessary departments: office space, warehouse, production facilities, packaging and loading docks for transporting.

Very early on Balsen took over Kelly’s but Kelly remained independent in Austrian business. Kelly took over other companies such as the biggest competitor Feldbacher with its well-known product such as sollettis and bretzels. In June 1997 Kelly moved into a new production and logistic facility, which was stationed in Vienna in the 22 districts. 400 million shillings were invested all the products were delivered much quicker and more efficiently from this new location. One can measure its success by the yearly delivered amount. Here in Austria more than 22 thousand 8 hundred tons of snacks are bought each year this equals to 3 kg of snacks per person. When one thinks of this in terms of packages that’s more than 180 million packages that are sold each year of soletti and other Kelly products. This means that more than 400 thousand products from the Kelly family are purchased every day. 4703 trucks are necessary to transport a yearly production of Kelly’s product. If one put the trucks end to end they would cover a distance from Vienna to Melk.

To be able to produce so much a lot of raw materials are used. The raw materials are kept in a small and cool place because freshness is absolutely important. Kelly faithfully following strict rules and regulations of certain criteria deliver the best original quality.

Every thing in this large hall is produced under the care and commitment of Manfred Furhacker. Based on out interview with Ing. Furhacker we can say that Kelly has 4 lines of production. The first line is popcorn the next three lines are there to produce peanut curls, zigeuner rings and other products.

But let us now focus on popcorn. Kelly’s high quality corn is delivered especially from the USA is it transferred almost automatically and pumped directly into the popcorn machines. It is then heated without any additional ingredients where it then pops and then lands on a large conveyer belt where it is then salted. Now nothing stands in the way of packaging it, transporting and eating it!

Through and through the employees in the laboratories analyze the consistence of salt, fat content, and moisture of the product. Raw materials and plastic packs are also tested. Since 1997 in order to offer excellent quality Kelly implemented the quality management system ISO 9001. The products are packaged and sealed in plastic foil and then placed on pallets and moved to the warehouse by elevators. Trucks deliver products such as popcorn to the warehouse 8 times a day. The truck is automatically unloaded; the products are then sent on the conveyer belt to the storehouse and remain there together with the products from the production site of Vienna. Together they are stored in a high-shelved warehouse. The warehouse is 100 m long, 22 meters wide and 30 meters high. The products do not remain in the warehouse since they are usually delivered to the customer within 4 days. The logistic center then fulfills the customer’s orders. Full pallets are pulled directly from the warehouse where smaller orders are assembled manually. The staff members then put the product on truck on a customer-to-customer basis. On average more than 600 pallets are delivered daily. During the peak season- for example during Christmas time the number could rise that high as to 16 hundred. Business continues to grow. Since the beginning of this year Kelly’s have been running the production and sales of the Balsen Picantery line in Austria. Kelly’s generated more about 1100-milshillings of net value within Austria. As far as Kelly’s know they are the only food enterprise in Austria, which has been successful in not only not closing production facilities here but also keeping the business domestic. Today Kelly’s have 413 employees and in 1999 Kelly’s had a turnover of 1.058 mil ATS. Kelly’s export revenue is more than 100 mil shillings in Europe and Kelly’s export 27% of their products. The main export markets are Scandinavia and all neighboring countries to Austria. One can find their products also in Singapore or across Australia. If everything goes as planned one would be able to find Kelly’s products in the USA very soon.

Maybe this is the beginning of the Kelly’s story in the US just as it began in Vienna in 1955. The Austrian way of life will bring the tasty crunchy-munch to the Americans

Businesses and organizations can survive only if they are able to manage change. The organization that manages change well will progress and grow. As the rate of change in the organization’s task environment increases, new and better ways must be found to understand, anticipate, deal with, and monitor changes in the environment. Planning is the key management function for dealing with change in a positive, purposeful way. (Kami 103)

Strategic planning as defined by Samuel C. Certo is a long-range planning that focuses on the organization as a whole.

( Certo). In our report we would like to focus on the way strategic planing is conducted at Kelly’s.

In the simplest sense, a plan is anything that involves selecting a course of action for the future. Kelly’s for example planned for the coming Christmas season by observing how and what the competition is doing and then mapping out strategies how they can be better. For instance they offered millenium packs that had 25% more volume for the same price.

Planning looks to the future to determine the direction in which an organization or its sub units should be going. It helps bridge the gap from “ where we are” to “ where we want to be”. (See figure 1)

Decision-making occurs at each of three levels on the way from the present to the future: monitoring and forecasting developing plans and developing controls. For example Kelly’s in their early career when monitoring their environment found out that their customers are not “ready” for popcorn. Unlike in the USA popcorn in cinemas and as snack has never been a tradition in Austria. Plans were developed to increase the production and volume of sales, but controls showed that this was also causing reduced profits because the surplus of the product was going bad in the warehouse as people where not yet used to it. As a result new plans had to be made. Each step of course involved decision-making. Finally before we go to the strategic planning of Kelly’s let us still look at the definition of a strategy. Accordingly, a strategy has been defined by MIT strategy scholar Arnoldo C. Hax as the pattern of decisions a firm makes.

Dr. Wolfgang Hotschl from Kelly’s who is in the position of the CEO told us in the interview that in his opinion strategic planning:

Involves the assessment of the organization and its environment, the formulation of a mission statement, the development of general goals in key areas of association activity and the outlining of projects, programs and activities in pursuit of these goals. Strategy has been defined as “that which has to do with determining the basic objectives of an organization and allocating resources to their accomplishment.” A strategy determines the direction in which an organization needs to move to fulfil its mission. A strategic plan acts as a road map for carrying out the strategy and achieving long-term results. Strategic planning is different from long-range planning. Long-range planning builds on current goals and practices and proposes modifications for the future. Strategic planning, however, considers changes or anticipated changes in the environment that suggest more radical moves away from current practices.

A Phenomenon of our time is the increased emphasis placed on planning by all sorts of organizations. The primary reason for this phenomenon as we mentioned earlier is that the world is more turbulent than it used to be, changes are more rapid than ever before, and problems are more complex. Organizations know that without good plans they will be caught by surprise. To summarize – planning is important for at least five reasons:

üIt enables the organization to cope with change

üIt helps ensure that organizational objectives are reached or changed when necessary

üIt helps the organization to succeed

üIt helps in day to day decision making

üIt enables the organization to maintain an effective control process

(Figure 1. Strategic planning process)

Many books and articles describe how best to do strategic planning, and many go too much greater lengths. Every single source has a different proposal, different order or number of the planning steps. The truth is that strategic planning occurs everywhere including our daily life and it can’t be reduced to a sequence of prescribed steps. Compiling information from different sources and using our own experience and common sense we came to the conclusion that there isn’t a “right” strategic planning process. All organizations develop their own process. Below is a brief description of the five steps in the process. We think that these steps can be a proposal but not the only recipe for creating a strategic plan. Other proposals may recommend entirely different steps or variations of these steps. Kelly’s also has a slightly different structure of this process. However, the steps outlined below describe the basic work that needs to be done and the typical products of the process. Thoughtful and creative planners will add spice to the mix or elegance to the presentation in order to develop a strategic plan that best suits their organization!

To get ready for strategic planning, an organization must first assess if it is ready. While a number of issues must be addressed in assessing readiness, the determination essentially comes down to whether organization leaders are truly committed to the effort, and whether they are able to devote the necessary attention to the “big picture”. For example, if a funding crisis looms, the founder is about to depart, or the environment is turbulent, then it does not make sense to take time out for strategic planning effort at that time.

An organization that determines it is indeed ready to begin strategic planning must perform five tasks to pave the way for an organized process:

·Identify specific issues or choices that the planning process should address

·Clarify roles (who does what in the process)

·Develop an organizational profile

·Identify the information that must be collected to help make sound decisions.

The product developed at the end of the Step One is a Working plan.

A mission statement is like an introductory paragraph: it lets the reader know where the writer is going, and it also shows that the writer knows where he or she is going. Likewise, a mission statement must communicate the essence of an organization to the reader. An organization’s ability to articulate its mission indicates its focus and purposefulness. A mission statement typically describes an organization in terms of its:

·Purpose – why the organization exists, and what it seeks to accomplish

·Business – the main method or activity through which the organization tries it fulfill this purpose

·Values – the principles or beliefs that guide an organization’s members as they pursue the organization’s purpose

Whereas the mission statement summarizes the “what”, “how”, and “why” of an organization work, a vision statement presents an image of what success will look like. With mission and vision statements in hand, an organization has taken an important step towards creating a shared, coherent idea of what it is strategically planning for.

At the end of Step Two, a draft mission statement and a draft vision statement is developed.

Once an organization has committed to why it exists and what it does, it must take a clear-eyed look at its current situation. That part of strategic planning, thinking, and management is an awareness of resources and an eye to the future environment, so that an organization can successfully respond to changes in the environment. Situation assessment, therefore, means obtaining current information about the organizations strengths, weaknesses, and performance – information that will highlight the critical issues that the organization faces and that its strategic plan must address. These could include a variety of primary concerns, such as funding issues, new program opportunities, changing regulations or changing needs in the client population, and so on. The point is to choose the most important issues to address. The Planning Committee should agree on no more than five to ten critical issues around which to organize the strategic plan.

The products of Step Three include: a data base of quality information that can be used to make decisions; and a list of critical issues which demand a response from the organization – the most important issues the organization needs to deal with.

Once an organization’s mission has been affirmed and its critical issues identified, it is time to figure out what to do about them: the broad approaches to be taken (strategies) and the general and specific results to be sought (the goals and objectives). Strategies, goals, and objectives may come from individual inspiration, group discussion, formal decision-making techniques, and so on – but the bottom line is that, in the end, the leadership agrees on how to address the critical issues.

This can take considerable time and flexibility: discussions at this stage frequently will require additional information or a reevaluation of conclusions reached during the situation assessment. It is even possible that new insights will emerge which changes the thrust of the mission statement. It is important that planners are not afraid to go back to an earlier step in the process and take advantage of available information to create the best possible plan.

The product of Step Four is an outline of the organization’s strategic directions – the general strategies, long-range goals, and specific objectives of its response to critical issues.

The mission has been articulated, the critical issues identified, and the goals and strategies agreed upon. This step essentially involves putting all that down on paper. Usually one member of the Planning Committee, the executive director, or even a planning consultant will draft a final planning document and submit it for review to all key decision makers (usually the board and senior staff). This is also the time to consult with senior staff to determine whether the document can be translated into operating plans (the subsequent detailed action plans for accomplishing the goals proposed by the strategic plan) and to ensure that the plan answers key questions about priorities and directions in sufficient detail to serve as a guide. Revisions should not be dragged out for months, but action should be taken to answer any important questions that are raised at this step. It would certainly be a mistake to bury conflict at this step just to wrap up the process more quickly, because the conflict, if serious, will inevitably undermine the potency of the strategic directions chosen by the planning committee.

The product of Step Five is a strategic plan!

The need of strategic planning at Kelly’s is a very important process. During our interview with the CEO Dr Wolfgang Hotschl we found out the organization are now operating very smoothly, but Kelly’s wonder if it will be so in five years. Some issues that he mentioned were:

·Members are leaving the organization to join other organizations with similar purposes. The popcorn industry is an industry every one can be in. “ You just need a popping machine”

·Organization is loosing market share because of aggressive competition. No name products enter the market with lower cost strategies.

·More training is needed for employees in order for Kelly’s to keep up with the industry development e.g. computers

A farmer, when planning a cropping enterprise in the long-term, may forecast the eventual replacement of a combine with a newer model that has increased efficiency and capacity. However, when developing a strategic plan, long-term market trends, alternative opportunities, new technology and other factors are analyzed. This analysis might determine the emphasis on cash crops versus other farm enterprises, decisions on the future expansion of land, labor or capital, and other strategic decisions.

Similarly an organization such as Kelly’s makes long-range planning decisions (e.g., rental prices or fees, or staffing) based on current conditions. However, strategic planning may result in facility expansion or major changes to programs as a result of social or demographic trends that are going to be discussed later in this report.

Gaining Commitment to Strategic Planning

When strategic planning, Kelly’s emphasize team planning. By involving those affected by the plan, they build an organization-wide understanding and commitment to the strategic plan (participants acquire an “ownership” of it).

Strategic planning requires a significant investment of time and energy. As Helmut Jordan who is in the position of the production director said:

“Kelly’s will have to overcome barriers raised by comments such as: “a lack of time”, “things are changing too fast”, “we’re doing OK now”, etc. A visible commitment from top leadership is required for effective strategic planning”.

The strategic planning process is shown by the model below. Note that the arrows indicate a continuous need for feedback, evaluation and comparing with previous steps. New information or further analysis of issues may suggest a modification of objectives or even of the basic mission of an organization.

Organization Mission Statement– What

Long-term ObjectivesImplementation and Operational Plans– When & How

The mission statement establishes what the organization plans to do, for whom, and for what benefit it will exist. The mission statement identifies organizational purposes and the reason for its existence. It addresses the “what” questions, i.e., what is our role? What business are we in?, etc. (Kretner)

We asked Wolfgang Hotschl if he thought that a mission statement is necessary he answered that:

“The mission statement is Kelly’s it’s “preferred future” – it ensures consistency and clarity of purpose throughout the organization. It provides a point of reference for all major-planning decisions. When it is communicated as a basis for key decisions, commitment is gained from within the organization and support from those outside is generated”

The mission statement at Kelly’s addresses such questions as

·What is our principle service/product?

·Who are our principal clients/users?

·What is unique about our organization (geographic, type of member, mandate)?

Kelly’s is in the business of rather entertaining than just snacks. The principal of Kelly’s is to provide the consumer with the best possible product. The clients are the entertainment industries like cinemas, party services, and food stores. Kelly’s is unique. It is the first American Popcorn Company. It uses only the freshest raw materials transported to Vienna from the USA.

Kelly’s Mission statement includes both the philosophy of the company, their beliefs, traditions, values and also the purpose of the organization.

The philosophy is based upon recognition and realization of new emerging trends and the need to fit the rapid changes in the general environment including societal values, politics and technology. Therefore the purpose of the organization that has as one it’s main objectives the satisfaction of the customers needs is to deliver an absolute and unique quality and freshness to the customer. One of the main components that guides the company towards achieving the unique fresh quality of the product, is Kelly’s outstanding knowledge of logistics, including packaging and transportation and the delivery of freshness to the customer on a day-to-day basis. This philosophy and kind of company Kelly’s embodies makes them the market leader in the whole Austrian snack industry.

The strategic analysis is an in-depth look at all factors likely to have the greatest impact on the future of the organization. During this analysis, critical issues facing the organization are identified. (Wortzel & Wortzel)

This analysis forms the basis for decisions affecting the organization’s future. Thus, it is essential that sufficient accurate information be available on which to base judgments. All assumptions should be identified and checked. (Hill)

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

Strengths and Weaknesses of the Organization (Internal)

In this part of the analysis, factors that are internal to, or within the control of, the organization are identified. Their impact on the ability of the group to fulfil its mission discussed. Kelly’s included: membership numbers, skills or resources, structure, shared values, finances, staff/directors, and style of leadership within the organization.

üAt this point in time Kelly’s has 462 employees compared to 437 in 1997.

üThe production process of popcorn is very easy and can be done with the minimum help of people so that employee craft can be used somewhere else in the organization. Employees are not substituted by new technology they are rather relocated.

üContinuous development of total quality management (discussed in the appendix)

Below is a brief description of the production process:

üKelly’s management is using an autocratic style of leadership. The leaders are task centered and tend to give criticism when production slows down. This is a weakness because the quantity of work produced in autocratic groups is greater – quality is second best. Also when the autocratic leader leaves the production area the workers almost stop working completely which is a sign of job dissatisfaction

üKelly’s is still in the process of developing its motivation and incentives programs.

Opportunities and Threats Facing the Organization (External)

All organizations are affected by outside influences over which they may have little control. These factors have varying degrees of impact, both positive and negative, on the organization. Factors to be addressed here will relate to the mission of Kelly’s. They include activities of competing organizations, government policies, society/community influences or trends, markets, the economy, lifestyles, the environment, demographic trends, technological advances or alternatives.

Activities of competing organizations

The major competitors of Kelly’s are:

üNo name brands which produce low cost products

üPringles using aggressive promotion

Society/community influences or trends

Today Kelly’s is in good business. The Austria’s snack market in number equaled to sales of 22,809 in 1999 compared to the sales of 1998 that were 22,616 t. The trend of eating popcorn in cinemas, party’s or at home has become a tradition and aggressive promotion of competitors such as Pringles did not destroy the position of Kelly’s as of the market leader. Considering the per- capita consumption of popcorn in 1999 that was 2,85 kg. Kelly’ s have a market share of proud 89,2%.

Austria has a population of over 8 million people, of whom about 1.6 millions live in Vienna, which is the capital city of Austria. Other cities like Graz, Salzburg and Insburg follow with populations ranging from 50, 000 and 250,000. The geographic area is 85,853 square kilometers. The population growth rate of Austria is 0.09% (1999).

Austria is a federal republic compromised of nine republics and has a parliamentary democracy. The parliament consists basically of two chambers: The federal council represents all of the provinces according to the population. The National Council is elected directly by the people and has 183 members.

In the year 1999 the GDP of Austria was 326,941 ATS per capita. The real growth rate of 1999 was 2.2% (this is the estimate for the year 2000). Exports of goods of Austria account for nearly 29% of the GDP. In 1999 the imports were approximately 822.86 millions ATS, whereas tourism and other services were in surplus, so that the current account balance showed a 2.2% deficit (this value is expected to increase by the end of the year 2000).

The unemployment rate was one of the lowest among the Western Europe – 4.4%. The inflation rate was 0.9% in 1998, which then has decreased in only one year to 0.6% in 1999 (an increase up to 1.1% is expected by the end of the year 2000).

Popcorn has never been part of the Viennese “coffee house” tradition. Since the emergence of Kelly’s- popcorn is becoming more and more popular. This is an advantage because Kelly’s can take up new markets. For instance they are now offering rooms for “party” purposes, supplying them with all needed equipment and of course popcorn.

To conclude the SWOT analysis, Kelly’s identify the issues most critical to the future of the organization. Their significance can be measured by the size of the gap between the current status and performance of the organization and what is needed to favorably respond to internal and external factors in the future. These issues affect growth or financial stability or form barriers to the accomplishment of the organization’s mission.

Kelly’s complies a short report for each critical issue. It contains the issue, supporting information, underlying causes and conclusions with respect to impact on the organization: Below we describe the issues available to us.

1. Training/incentives/benefits programs are not sufficient (internal)

Causes: Fast technology development – programs are permanently in development

Conclusion: Difficult for workers to keep up with the technological progress. Production slows down.

3. Total market share is rising, popcorn market share is falling

Cause: “No name” popcorn producers storm the market with lower cost/quality products (e.g. supplying Cinemas and therefore spoiling Kelly’s image as people “see” the popcorn in Cinemas as the product of Kelly’s.

Conclusion: There will be a demand of promotion

In this phase, the focus should be on where the organization should be going rather than how it should get there. A three to five year planning horizon is recommended. The critical issues facing Kelly’s in accomplishing its mission is the basis for this stage. We make sure that decisions “fit” with the directions defined by the mission statement. (CEO,W.Hotschl)

There are three steps in this stage:

1.Identification of Key Strategic Areas

This step produces a listing of key strategic areas or thrusts that are emphasized to address the critical issues. They are stated in no more than a few words.

Improving imagePublic RelationsPromotion

Increasing market shareMerge with competitors – e.g. Bahlsen

Training of members/leaders/staffStill developing

Each key strategic area requires extra effort from Kelly’s in the future. They are important in addressing one or several critical issues identified during the strategic analysis.

2. Establishing Priority of Key Strategic Areas

Some strategic areas will be more crucial to the organization’s success or survival than others. The next step Kelly’s makes is to prioritize the strategic areas. Criteria for ranking are based on which area has the greatest effect on the organization’s ability to fulfil its mission.

It is a good practice, says the director of production Helmut Jordan that prior to ranking, to state clearly and agree on what each strategic area encompasses. The highest ranking key strategic area will be the “driving force” of the strategy and the one requiring the most time and resources allocated to it. Kelly’s priority and the driving force are to win back market share of 89,2 % from the 78,4%, or even to increase it.

3.Develop Strategy Statement for Top Ranked Areas

The key strategic areas are the basis for future actions Kelly’s.

They are carefully documented for communication to the membership.

Strategy statements for each area at Kelly’s answer the following questions: What shall be our future key strategic areas? How do they differ from our current areas of concentration? Do they represent changes? Are they compatible with our mission and the conclusions from our strategic analysis?

“Member recruitment at Kelly’s is necessary for our Council to regain the support of our community and to provide the human resources to help us raise funds for new projects. We have not gone into the community to recruit in the past. If we are to serve our community, we must be seen as representative of it.”

Within the most important strategic areas, Kelly’s identify what must happen to move the organization closer to accomplishing its mission and strategies. These objectives are broad and visionary. The objectives are written using the following format: “To have (or become) … (the results) … by … (year)”.

1) To achieve a market share of the previous years by 2002

2) To expand export to Scandinavia, Australia, USA

The objectives are tested to determine if:

2. If they are achievable or feasible within a given time frame

3. If collectively, they are flexible or adaptable to allow for the unknown and for exploring new opportunities.

4.They are consistent with the rest of the plan.

A comparison with the current strategy is undertaken at this stage. An examination of the structure and operations of the organization are carried out to ensure a fit with the newly stated strategy or objectives. Kelly’s areas to be scrutinized, and possibly changed, include:

1. Allocation of resources: will enough resources be available for the highest ranked strategic area? What do we cut back to free up resources?

2. Organization structure: are jobs adequately defined? Are committees in place to deal with thrusts?

3. Information systems: what will be the organization’s communication needs? Feedback on results?

4. People responsible: are there people identified as “in charge” of each objective?

5. Reward systems: how will people be recognized or rewarded for achieving results?

The time frame for implementation reflects the scope of the required change. In addition, ongoing criteria and techniques for evaluation are established.

Finally, short-term objectives (e.g., one year) are set based on the long-term objective. These include activities and programs. The written analysis employed for these objectives are similar to those used when developing long-term objectives.

The result is a map of activities or programs, responsibilities of people, resource allocations, and a time frame for the next planning period.

In subsequent years, if checks for fit indicate that no changes to the strategy or long-term objectives are required, this stage will be the only required planning activity.

Long-Term Objective: To be market leaderShort-Term Objective: To achieve the market share of the preceding years.Activity: Merge with competitors

Additional to the information we got above the CEO told us the little tricks Kelly’s use in the planing process.

üStrike a planning committee to undertake the strategic planning task.

üThe benefit of involving the whole board or membership at certain stages (for reaction or ideas) is increased awareness and sense of ownership of the plan.

üAllow plenty of time! There should be gaps in time between certain stages (e.g., stages 3 and 4) for reaction, reflection and checking facts.

üIn many cases, we use an outside facilitator for the process that can help minimize members’ biases, challenge assumptions, and allow all members to contribute equally.

üWe allow for lots of brainstorming, especially in stages 1 and 2. This allows new ideas to be considered.

To conclude PR-Manager Manfred Cambruzzi said that:

“Strategic planning is a thought process as well as a plan. Part of developing sound strategies is learning to think strategically, learning how to ask questions and to think broadly and creatively.

While our plan has focused on our organization, the same process can be applied to business or personal strategic planning.”

This project gave us an opportunity to analyze and to understand one of the most important issues – strategic planning, in Austria’s leading snack industry. Because of the wide range of product Kelly’s produce we decided to concentrate only on one of their products – popcorn. This decision was based upon the fact that the Kelly’s company started its operations in 1955 by the production of Popcorn. Then with further development they expanded the production line by merging with other companies in this industry.

The project gave us a chance to have a closer look at the operations of such a successful company, giving us an understanding of how to use strategic planning in our future life’s.

4.2 Development of total quality management – a major issue at Kelly’s

Defining TQM – a management system that is an integral part of an organizational strategy and aimed at continually improving product and service quality as to achieve high levels of customer satisfaction and build strong customer loyalty.

Total = Quality involves everyone and all activities in the company.

Quality = Conformance to Requirements (Meeting Customer Requirements).

Management = Quality can and must be managed.

TQM = A process for managing quality; it must be a continuous way of life; a philosophy of perpetual improvement in everything we do.

Kelly’s TQM is the foundation for activities that include;

·Kelly’s slogan is to deliver the freshest, “poppiest” product. Packaging is therefore plastic to maintain the freshness. The product is delivered to the customer within 4 days.

Kelly’s products do not stay in the warehouse for a long time. The factory produces the exact quantity that is needed to supply its customers.

·Continuously monitor effectiveness and efficiency to try and improve the quality of the product.

Sources cited:
1.Wotzel, Heid Veron “Strategic Management of Multinational Corporations: The Essentials» John Wiley & Sons, Canada, 1985
2.Certo, Samuel L. “Modern Management 7th edition “ Prentice Hall, New Jersey, 1997
3.Kreitner, Robert “Management 5th edition» Houghten Miffin Company, Boston, 1992
4.Hellrigel, Don & Slocum Jr., John W. “Management: Contingency Approaches, 2nd edition” Addison – Wesley Publishing Company, Canada 1987
5.Mathis, Robert L. & Jackson, John H. “Human Resource Management 8th edition» West Publishing Company, USA 1997
6.Aacker, David A., Kumar, V., Day, George S. “Marketing Research 5th edition” John Wiley & Sons, Inc., Canada
7.Huse, Edgar F. “The Modern Manager» West Publishing Company, USA 1979
Mill, Roberts W. L. and Jones, Gareth R. “Strategic Planning An Integrated Approach” Houghton Miffilin Company, Boston, New York

Cite this Portrait of a companies success

Portrait of a companies success. (2018, Jul 06). Retrieved from https://graduateway.com/portrait-of-a-companies-success/

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