Question: make a background of a report using this information Discuss how Heather and Susan have formulated and implemented Fayol's Managerial Planning ( strategic management process
make a background of a report using this information
Discuss how Heather and Susan have formulated and implemented Fayol's Managerial Planning strategic management process and Organising structure functions in PureRoots' founding and growth years.
case study
PureRoots Pty Ltd was founded by Heather and her best friend, Susan, after they graduated with their BComm degrees. The young graduates started with a single retail outlet in the Northern Suburbs of Perth, Australia and it took the two founder friends years to fulfill their dream of providing high quality certified organic health food in outlets across the Australian community
The Early Founding Days
After Heather and Susan graduated from ECU Business School in they spent the Easter weekend at Heather's uncle's farm. Both graduates were fascinated to hear of the shift away from the use of synthetic pesticides, fertiliser and livestock feed additives in response to a perceived future growth in organic food production. This resonated with both graduates, who had been learning about sustainability in their undergraduate degrees. On further investigation, Heather was astounded to discover how quickly the demand for certified organic food products had expanded, stimulated by consumer perception that organic produce was safer, cleaner and more ethical. The idea of a retail outlet specialising in everything organic began to take shape and in the graduates opened their pilot shop called PureRoots in Joondalup in Perth's Northern suburbs. PureRoots had been one of the first retailers specialising & selling organic foods only The major traditional general food retailers like Coles and Woolworths, only had limited shelf space dedicated to organics products. The new organic business's foundation was built on strong ethical values, sustainability and a dedication to supporting local farmers and communities. Initially, Heather and Susan's family were involved in the business, with parents brothers and sisters all helping in their spare time.
The Growing Years
Over the next years, Heather and her friend focussed on expanding PureRoots's domestic reach. They successfully established another twelve organic health foods retail outlets in all of Australia's states. The success was attributed to its unique positioning as a provider of fresh, organic options in a market that was just beginning to embrace the organic lifestyle. A local newspaper reported on a study that twothirds of consumers were prepared to pay more for sustainable organic produce. In order to ensure the freshness and availability of their fresh produce, Susan had negotiated and secured an agreement with ColdTruck, a local distribution business that specialised in moving product throughout Australia in refrigerated trucks. In terms of the agreement, PureRoots would guarantee to ship a minimum of kilograms of produce per month and in return ColdTruck would guarantee a minimum day delivery time at an agreed price per kilogram. In addition, PureRoots had acquired Ausfarmers, a major supplier of certified organic produce. This was not only to further ensure that the quality of their organic produce was maintained but also to ensure minimal disruptions in their supply chain. This expansion was strategically implemented and controlled from PureRoots' head office. Each outlet had a branch manager responsible for the smooth running of the individual branches. The twelve branch managers reported to Gayan the Head Office Operations Manager. At PureRoots head office, Lara was the director of Research & Development, Abhi the finance manager and Eranda the procurement manager. As the company had grown, Rajin had been appointed as the marketing manager and Chris as the people and skills manager previously known as human resources All managers reported to Heather and Sarah, who had final say in all decisions. as they shared the Chief Executive Officer CEO role of the company. All accounting, finance and procurement of produce was managed from PureRoots' head office and warehouse. Produce was then sent out to the branches based on their needs. This structure had supported the company's initial expansion well in the early days of growth.
The Future However,
at the recent board meeting Heather was visibly upset and said: "I feel we are bogged down and no longer responsive to our customers' needs. Our research and development have slowed down, we've lost touch with our customers and our people don't smile anymore. Considering the increased rivalry in the organic retail industry, we need to do something differently." In the past years many organic health food stores and wholefood markets had opened supplying quality certified organic foods and cosmetic products to their customers and communities. The sales of organic products had expanded rapidly and the organic retail industry had grown into a fierce and competitive market. To sustain PureRoo
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