Management Report: Zespri

Abstract 

In the below report it has been described about the leadership and the management of Zespri which will enhance the growth of the organization and will provide it a platform to develop its business process. The report is on the current situation of Zespri which is a New Zealand based organization and the strategies it needs to adopt to become one of the successful organizations in its expansion in the international market. The primary focus of the report is on PESTLE analysis which describes the generalization of the external factors which will affect the organization’s expansion. Moreover the report deals with the strategic planning of the organization which needs to be considered and the implications on the strategic planning also had been described as well. The report also deals with the ways which need to be adopted by the organization to develop its market share in the international market. After this also there is the corporate social responsibility which explains about the responsibilities of the organization and to deal along with the works of the organization towards the betterment of the organization. The organization is also considering for its expansion the international market which will be better if the organization will go through the Middle East region as the people over that region are health conscious and the product of the organization matches their level as well. Furthermore there is the conclusion part of the report which is about the report and the summary and the last section of the report is about the recommendations which needs to be considered by the organizational development and business growth of the organization. 

Related Management Report Sample: Operation, Strategic, Change

Table of Contents

Introduction 3

Overview of Zespri 3

History 3

PESTLE Analysis 4

Political Factor 4

Economic Factor 4

Social Factor 5

Technological Factor 5

Environmental Factor 5

Legal Factors 6

Strategic Goals for Zespri 6

New Market: 6

Breeding Process: 7

Implications in Strategic Goal 8

New Market Objectives 8

Breeding Process Objectives 8

Vision Statement Evaluation for Zespri 8

Evaluation 8

Corporate Social Responsibility (CSR) 10

Principle of Managerial Discretion 10

Principle of Legitimacy 10

Principle of Public Responsibility 11

Conclusion 12

Recommendation 13

References 14

Introduction 

Zespri is one of the leading organizations in Kiwi fruit supply all over the world and basically the organization is located in New Zealand. Around 30% of the international market of Kiwi fruit is managed by the organization. Along with this the organization has a base in more than 50 countries where it is supplying its products as well. 

Related Management Report Sample: OperationStrategicChange

Overview of Zespri

The organization is continuously growing due to its investment in the international market and also on the marketing strategy as well as an instance of its growth. It could be considered that the organization had achieved a growth of 6% in the annual year which is 2.3 billion dollars. The organization had increased its market share with a growth of 102 million dollars which is almost 38% and also achieved a 500 million dollars market in the international market including China as the top one of all the countries. Along with this also Zespri had paid a 76% profit to its shareholders by the year 2018.

With the above report it looks good at the international market but the organization had failed to go along with New Zealand which had met a fall in sales of 11% in the previous year but Zespri had been maintained its position in the country after such crises which explains that the organization is in a good position in both the New Zealand Market and also in the international market (Zespri, 2019). 

Related Management Report Sample: OperationStrategicChange

History 

The organization was founded by Hayward Wright in 1928, in New Zealand as the country had a good climate and soil for the growth of kiwi fruits and also the particular location where the growth of this fruit was found is the Bay of Plenty as well. The organization has helped the country to become the highest supplier of kiwi fruit since 1928, with this all the organization is also helping the growth of kiwi fruits market all over the world. The focus of Zespri had always been to develop and maintain the supply and also to increase the supply of kiwi fruit over the world as well (Zespri, 2019). 

PESTLE Analysis 

Political Factor 

Kiwi fruits is considered as one of the best fruit industries which is growing each and every day with the international market and also is being considered as one of the basic trade goods. Along with this there are also some judicial restrictions which stops export of kiwi fruits. Political factors for one organization could be considered as the political situation through which the organization goes through while conducting its business over the world. There have been several factors which affect while conducting one business over the word including stability of government, rules and regulations of the market, trade policy and the customer as well. Zespri also needs to go along with these all factors and the business process also needs to be considered as per the factors which will affect it. The organization meets several problems while dealing along with several countries which includes South Korea as one example as well, In South Korea any company needs to pay a tax of 45% as the expert fee but there are few countries like Chile that need to pay a 12% as per the free trade agreement signed. The political factor of the country is also complicated as the government of the country changes in each three years so as the policies and the procedures of the country changes as follows. Therefore the organization needs to have appropriate and flexible business policies which will help in considering the factors that if there will be change in policies that will not affect the business process of the organization (Inland Revenue, 2019). 

Economic Factor

The economic condition for the supply of goods could be considered as one of the favorable conditions for the organization as the export market of the country is quite good. Most of the kiwi fruit market is considered China for Zespri and both the country’s market economy supports them as well. But there could be several issues in the economics of one country which considers cost difference as labor cost, production cost and also raw material cost as well. Here Zespri is out of two costs as production and raw material, and the organization only needs to pay for the cost of labor. For business operation of Zespri economic factors could be considered inflation, per capita income and GDP of the countries it is operating, which needs to be considered. The organization had a high amount of investment in the international market for which the economic crises need to be considered by the company as well. Economic condition of the country is also not in a great position as it is going with an average growth so the organization also need to consider that for the development of its business processes.

Related Management Report Sample: OperationStrategicChange

Social Factor 

Zespri deals with the agricultural sector, which helps the organization to go through environmental goodness as well. Demand and also outgo of the organization are also increasing therefore it could be considered that it is developing the environmental condition of the country along with employee’s agriculturalists in the firm as well.  As kiwi fruit had been added to the Chinese people’s diet and along with that this is also being considered as the gooseberry fruit of the country as well. For Zespri, social inclusion means considering preferences of the market, customer choices and also the present market condition as well. Social culture plays one important role in all the sections of the delivery of foods and also helps in increasing the demand of the company as well (UKESSAY, 2019). 

Technological Factor 

This factor considers the equipment and advancements which are being considered by the competitors of the organization. This also defines the invention of fruit inside the organization as well. The best equipment which is being used for the company is the “Zespri System” which helps in gaining proper fruit and maintaining it as well. Along with this the organization also needs to adopt several equipment which will help in reduction of cost of production while maintaining the quality of the fruit and also the organization  needs to consider some technology which will help in reducing wastage for the organization while increasing efficiency of the organization  as well. In the agricultural industry the organizations meet several diseases which ultimately affect the business of the organization therefore there needs to be some system which will help the industry to grow. In recent business everyone is considering innovation and technology which needs to be considered for the improvement of one business and to represent the business in a different way as well. 

Environmental Factor  

In this industry weather plays one of the initial roles for the production process and another factor which needs to be considered is the sustainability of land which is one of the major ones as well. The growth of the organization could be considered by producing more fruits in that area and then avoiding the factors which come into the way of producing fruits. The organization can meet land shortage in future which needs to be considered as one risk for the organization as well. Leaving the negative factors behind the organization is helping NZ to grow along with the environment due to the agricultural factor which needs to be considered. And by the time the organization will be able to enhance its reputation with the customers by going through an environmentally sustainable business (Senseofskin, 2017). 

Legal Factors 

The legal factor for Zespri could be considered as all the country’s rules and regulations which will help in conducting the business in a good manner and to keep the policies of the organization in a flexible manner as well. The organization needs to understand the rules and regulations of each government while considering several factors including pay rate, environmental laws and hours of working of employees as well. As the organization deals in more than 50 countries, it needs to go along with several systematic policies for all the countries which will help to conduct its business in a good manner (Professional Academy, 2019). 

Strategic Goals for Zespri

As the organization is growing each and every day, there needs to be a particular focus area which could be elicited by the mission and vision and that needs to be communicated to all the stakeholders of the organization. For the present situation the organization needs to consider the following two goals which will help to enhance the business for the organization,

New Market: 

The organization is dealing with more than 50 countries but now the organization is trying to expand its market to more countries in the sector of retailing and selling kiwi fruits. For the expansion process rather than going and starting a new venture in the country the organization can go through the joint venture process while considering the profitability ration in a good position. By this the organization will be able to go along with a risk free structure as if there will be any losses that will affect the market share of the company and the revenue in a unconditional manner and if the organization will go in an direct manner than the organization will have to take all the losses at it, which could be considered as a bas scenario for Zespri. In the section of expansion the organization needs to consider the middle east which is not dealing along with the kiwi fruits includes countries like Arab Emirates, UAE and the all in that section. As all the world is being health conscious, therefore the organization will be able to promote its product as one of the healthy ones to enhance its market share. As the organization had a good idea about the customers it needs to target, there will be no hesitation to go along with the particularity of target audiences. Furthermore people in the Middle East are considering health as one of the basic things and also the organization is also going through that so it will help in the expansion process of the organization in a good manner. Furthermore while going for expansion the organization needs to go along with the factor of FTA which stands for Free Trade Agreement through which the organization will have to pay less amount of tax to the country in its business process. Zespri needs to select some countries which have signed the FTA through which the company will experience less tax and also the organization needs to consider the plan of joint venture as it is too profitable for the organization to conduct the business in an effective manner (Chehtman, 2017). 

Breeding Process:

Instead of focusing upon the new techniques of breeding, the organization needs to consider natural breeding which will help in enhancing the quality of the product. The competitors of the organization use several kinds of medicines which help in enhancing the production and the taste of the kiwi fruits which should not be considered by the organization as it is focusing upon the health of the customers in a good manner. The organization should not go through any processes which may cause its customers health issues and along with this also the organization needs to go along with a proper process to produce a variety of foods as well. With all the above procedures the organization needs to go along with processes including cross-fertilization, cultivation and promising to develop kiwi fruits with seeds as Gold 3 and Gold 9. The breeding process needs to go as soon as possible as there are several competitors of the organization who are working upon the same business and looking for innovative ways as well. Sometimes innovation is also considered as modifying the system which also could be done to improvise the level of products, so if the organization is getting any kind of solutions from the market then it needs to consider it for the betterment of the organization (Raj, 2019). 

Implications in Strategic Goal

With the advantages of standing at the first position of the market the organization needs to go along with the implications and also needs to eliminate risk factors as well. Following two are the risks which need to be eliminated for the betterment of the organization,

New Market Objectives

The organization is located in New Zealand and is going for expansion in the Middle East section which is geographically a long way from the country. As the strategic goal of the organization is to enhance the level of share in the international market, the above factor may cause many impacts as well. This will help the organization to enhance the level of share but the factor which will affect the process of the organization could be considered as the wastage and damage of fruits which needs to be considered (SPRINGFIELD, 2017). 

Breeding Process Objectives

The organization is working along with new technologies which will help in developing the breeding processes without any kind of use of chemicals. This process may take a long time through which the competitors of the organization will cross the bar that need to be considered by the organization and this factor should also need to have appropriate measure and the affects which could be observed in the organization. Therefore the organization needs to focus on the time frame on which the organization needs to develop all its strategic plans (Wright, 2019). 

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Vision Statement Evaluation for Zespri

The current vision statement of Zespri could be counted as per leading fruit supplier of the world, 

“To become the company which will understand the fruit market and will help to fulfill it by the production and retail of best quality kiwi fruits.”

Evaluation 

There are three values of the current vision statement of the organization which needs to be considered, 

Impudent:  Any of the vision statements for one organization needs to be clear and also proficient which needs to describe that the organization will be better than its competitors and will be the world leader in future. The vision statement for the organization needs to be considered as one of motivating one for all the employees and also audacious in nature that the achievement is clear enough for the organization as well. 

Clear: The vision statement for any organization needs to be clear and it needs to describe its aim in a few words as well. This will help the organization to deal along with the employee’s motivation and a clear view of the existence of the organization as well.  In Zespri the vision statement for the organization is pretty much clear and it is short enough as, in a single line it describes that the organization wants to achieve the top position in the sector of kiwi fruit retail throughout the world (Olsen, 2019). 

Motivational: Along with the above two factors the statement also needs to inspire employees to go along with the organization and to achieve the desired position above its competitors. The statement also needs to be particular that it will help employees to work hard and also to work in a manner that they can contribute to the success of the organization as well. But for the organization which had been considered as Zespri the vision statement is not that much inspirational as it will have a vital impact on the employee’s motivational factor. The statement had no clauses related to the motivate employees and the stakeholders of the organization. 

According to the perspective of Zespri, the organization is working along with the modern business practices which will help the organization achieve success in today’s business market. The organization is working along with the environment safety factors which will help the organization to go along with the engagement of the employees in the business process and also to enhance the level of profit for the organization. The organization is also working along with the sustainability factor and to lower the emission of carbon footprints which will help to develop the way environment reacts towards the country. 

For the above reason the organization needs to modify its vision statement while making it a bit motivational and inspiring for the employees of the organization which had been planted below, 

“ Live Health Together: We harvest naturally, transport sustainably and touch your tongue with real kiwi taste ” (Enterprise, 2019)

Corporate Social Responsibility (CSR)

This sector of the business process talks about taking care of the society while going through particular business requirements and also it helps to develop the way business is being developed as well. The organization is looking after the social factors which need to be considered with a positive impact and to reduce pollution for the organization  as the organization had clients all over the world. The principle of Social Responsibility was established in the year of 1973 by David Wood which could be considered as follows, 

Principle of Managerial Discretion 

This principle of CSR defines responsibilities of the leaders inside an organization and also the way they need to deal with the client satisfaction factor as well. It is also defined as the manager needs to volunteer the way the organization needs to work along and guide the organization which will help in considering the profit for the organization in a responsible way while dealing along with the client satisfaction factor as well. The CEO of the organization , Lain Jager, takes the responsibility to go along with the corporate responsibility which generally includes charity and the advancement of society as well. The organization is also sponsoring charities like Graeme Dingle Foundation which ultimately works for the kids to go along with the factor that the employees will be motivated towards the organization  and they will also contribute towards the organization as well. The charity which is being funded by the organization deals with the education section and to build leaders from the school days as well. In the case of Zespri the organization is considering the carbon emission rate which needs to be minimized as less as possible and to help the environment and people to live a healthy and better life as well. The leader of the organization is taking several steps to consider this value which will help to motivate its stakeholders and includes initiatives like reduction of water wastage and also conservation of rain water as well. For the reduction of pollution and carbon footprint the organization is going along with several steps which includes innovation in the sector of production by minimizing wastages and also if there will be waste then it should not affect the organization (lumen, 2019). 

Principle of Legitimacy

This deals along with the support which the organization is getting from the society and also the factor which will help the organization to get over several factors including legitimacy and power. If the organization is not working in a good manner then the organization may meet losing its power and legitimacy which had been provided by the organization, that’s the reason why the organization needs to go with continuous development of its policies and procedures. After this the organization also needs to identify the problems and the risks which may affect the organization in future, therefore the needs and the requirements need to be filled with appropriate time for the development of social behavior of the organization. 

In the present situation the organization is working along with the carbon emission and the way how it could be reduced as well, currently the organization is working along with the cargo vessels to reduce carbon emission and to provide the best possible result to the environment. The purpose of the organization is to reduce carbon emission which is being created by the transportation of the products, and also the organization is working along with many innovative approaches to present a good sustainable future to the next generation. The organization has invested in the soil for it as well. Zespri is working with more than 13500 hectares of area to stop pollution of soil and to create sustainability for the environment with absorption of orchid soil.  Along with this the organization is awarding its employees who are developing orchids for the production of kiwi fruit and looking after the sustainability of the environment. This kind of process will motivate all the kiwi fruit growers to go through a sustainable way and also other organizations who are working in the same field to grow fruits in a natural manner which will not affect the environment and also will help to make people conscious while growing kiwi fruit with orchid practices. Furthermore the organization is also working along with the educational department who are studying in the field of horticulture and agriculture while providing scholarships to the students going through master and Ph.D as well. Zespri is also providing a particle field to all the students which will help to practice their course as well (CSRidentity, 2019). 

Principle of Public Responsibility 

For this the organization needs to go through appropriate solving techniques for the social issue which may be created for the business process of the organization  and need to create a positive effect on the customers that they will be happy along with the considerations of the organization. The organization works with two organizations, Bay of Plenty and Surf Life Saving New Zealand of Coromandel. In these two organizations the organization is providing people with new training approaches which could be used as safeguards for life in the country and also the organization is going through local lifeguards to make them good enough for their job, by improving their skills and making themselves sufficient as well. Moreover, the organization is also contributing to another organization called Golden Neighbor Trust, which helps to provide daily needs to more than 35 charities over the country. Along with all the above things the organization is also going through several factors including saving birds and education of the community which will help to build a good reputation among the customers for the organization (Inception Project, 2017). 

Conclusion 

The above report deals with various strategies which will help in the development of Zespri to deal in an effective way with both the international market and the native market as well. The report also describes the performance in the market condition and also to go along with the international market conditions. The first phase of the report is about the external analysis of the organization which maximizes the factors which may affect the market share of the organization as PESTEL analysis. For this there had been two strategic goals which had been developed by the company. The first strategic goal is all about increasing the market share of the company by expanding through several international markets. In this section the organization is focusing upon the Middle East countries as it had not been gone through that area and moreover this sector of the market is more conscious about their health and that will help the organization as the product is totally healthy and produced in natural ways. The second strategic goal starts from this which includes the breeding process; this states that the organization needs to go along with the natural way of breeding to create different kinds of kiwi fruits which will help the organization to grow in a good manner. Moreover, the organization is also working on innovation which will help the organization to apply fewer chemicals on the fruits and to produce the most possible natural fruits anyway. The next part discussed the strategic goal of the organization and the effects of this in a clear way. The next one is about explaining the strategic goal of the organization and to find out the possible way to change the strategic goal which will put a positive effect on its stakeholders. The last part of the report is about the corporate social responsibilities which need to be maintained by the organization and to go along with several factors which will affect the business process and the reputation of the organization, moreover there is a clear recommendation which needs to be considered for the organization’s betterment. 

Recommendation 

Rather than going for the new market by self establishing the organization, it needs to go along with joint ventures which will help the organization to establish itself through an easy way and also by doing this the organization will be able to reduce effects on its revenue and the effects only will be on the market share of any kind of crises happens. 

Zespri needs to target the Middle East region of the world as the organization had not been in that place before moreover this section of the world is too much conscious with their health and they will appreciate the kiwi fruits in a good manner which will help to enhance the business of the organization. 

As the technology is being innovated in each day the organization needs to work on innovative techniques and processes which will help the organization to reduce cost and also to grow its products in an impassive manner which will not affects its customer’s health in any bad manner. 

Along with all the above factors the organization needs to consider the principles of Treaty of Waitangi which will help in the further process of the organization to seek more profits from the government while going through the corporate responsibilities and for the growing of the community as well. 

References 

Chehtman, A. (2017, June 23). 8 Ways to Identify Market Opportunities for Business Growth. Retrieved from https://blog.euromonitor.com: https://blog.euromonitor.com/8-ways-identify-market-opportunities-business-growth/

CSRidentity. (2019). Businesses should conduct and govern themselves with Ethics, Transparency and Accountability . Retrieved from http://csridentity.com: http://csridentity.com/india/9%20principles.asp

Enterprise. (2019). 10 Ways to Evaluate Your Mission Statement. Retrieved from https://www.enterprisecommunity.org: https://www.enterprisecommunity.org/resources/10-ways-evaluate-your-mission-statement-13513

Inception Project. (2017, Mar 30). Ten Basic Principles of Corporate Social Responsibility. Retrieved from https://inceptionproject.net: https://inceptionproject.net/2017/03/30/ten-basic-principles-of-corporate-social-responsibility/

Inland Revenue. (2019). Double Taxation Relief (Republic of Korea) Order 1983 (SR 1983/5). Retrieved from https://www.classic.ird.govt.nz/: https://www.classic.ird.govt.nz/technical-tax/pib-review/pib-archived/archived-double-taxation/dtr-korea-1983-vol-112.html

lumen. (2019). Corporate Social Responsibility. Retrieved from https://courses.lumenlearning.com: https://courses.lumenlearning.com/wm-principlesofmanagement/chapter/corporate-social-responsibility/

Olsen, E. (2019). Vision Statements. Retrieved from https://onstrategyhq.com: https://onstrategyhq.com/resources/vision-statements/

Professional Academy. (2019). MARKETING THEORIES – PESTEL ANALYSIS. Retrieved from https://www.professionalacademy.com: https://www.professionalacademy.com/blogs-and-advice/marketing-theories—pestel-analysis

Raj, A. (2019). 4 Main Steps of Hybrid Seed Production | Plant Breeding. Retrieved from http://www.biologydiscussion.com: http://www.biologydiscussion.com/plant-breeding/4-main-steps-of-hybrid-seed-production-plant-breeding/60856

Senseofskin. (2017, Aug 21). Zespri Case Analysis Essay. Retrieved from https://senseofskin.com: https://senseofskin.com/zespri-case-analysis-essay-3387/

SPRINGFIELD, R. (2017, Mar 25). Strategic Planning Process: Importance and Implications. Retrieved from http://panmore.com: http://panmore.com/strategic-planning-process-important-business-management

UKESSAY. (2019). A SWOT Analysis on Zespri International Ltd. Retrieved from https://www.ukessays.com: https://www.ukessays.com/essays/business/a-swot-analysis-on-zespri.php

Wright, T. C. (2019). Corporate Strategy Implications. Retrieved from https://smallbusiness.chron.com: https://smallbusiness.chron.com/corporate-strategy-implications-74130.html

Zespri. (2019). About Zespri. Retrieved from https://www.zespri.com: https://www.zespri.com/companyinformation

Zespri. (2019). ALL ABOUT KIWIS. Retrieved from https://www.zesprikiwi.com: https://www.zesprikiwi.com/en-US/blog

This is a Sample Report of Zespri Management from Topicwize

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