Joseph Heler Cheese Challenges - Essay Example

? JOSEPH HELER CHEESE By Table of Contents Executive Summary 3 Introduction 4 Background 4 Marketing Strategies and Challenges Faced 6 Total Quality Management 10 Challenges 13 Evaluation of Challenges 14 Rising Costs of Operation 15 Competition from Chinese Firms 15 Unpredictable Financial Markets 16 Competition 17 Recommendations 18 Works Cited 20 Executive Summary As one of Britain leading companies in the Cheese production industry, Joseph Heler has undergone a range of challenges and opportunities, which have impacted on the company’s business in many ways. In the historical development of the company, many challenges and opportunities impacted on its level of operation in ways that led to strategic changes and structural adjustments for purposes of contributing to its general operations within the industry (Joseph-Heler, 2013). The company’s market dominance is explained in terms of the multiple advantages, managerial competence, market forces among many other positive determinants that operate within the food and beverages industry. Strategic expansion and diversification have helped the company overcome difficult operational conditions in its various market segments. Part of the forces that attended to the company’s transformation from a relatively small company to one of the leading players in the cheese production industry include the diversification of its range of products and the adoption of policies that helped spur progress in many of its undertakings (Joseph Heler, 2013). Competition from other companies within the industry is one of the threats that have affected the company’s performance over the years. Other threats include macroeconomic factors such as unpredictable economic situations, changing preferences by the local and global clientele and other issues that attend to the performance of big businesses in the United Kingdom and around the world. Despite the challenges that have slowed the growth of the company, Joseph Heler remains a leading force within the cheese production industry with strategic processes that relate to the diversification of the product range and partnership with a leading food production company. Financial statements indicate past and current consistency in steady progress, which suggest strong possibilities of further growth in the future. Introduction Currently Joseph Heler is ranked as the fifth largest cheese producers in UK (Joseph-Heler, 2013). The growth was a culmination of previous strategies, which included reaching out to new market segments and expanding the company’s revenue flows throughout the world. The same statistics indicated that the company had achieved significant improvement in terms of its annual total revenue. The company has maintained an impressive lead in the cheese production sector in Britain to levels that have enhanced its profitability and expansion in processes. Currently, the company employs nearly thousands of workers distributed in its retail stores and firms throughout the world. According to analysts, Joseph Heler’s growth on the market is partly a product of the leadership of the current founder and current chair Joseph Heler. The chair has presided over the expansion of the product lines to levels that contributed significantly to the growth in the revenue bases (Joseph Heler, 2013). The company has developed strategies that include the development of various outlets within areas that were previously dominated by competitors. The consistent growth of the company over the times has been made possible by a range of strategies that included the development of various cost-cutting measures and the opening up of increased avenues for revenue flow. Background Since its formation in 1957, Joseph Heler Cheese Company has maintained a remarkable lead in Britain’s cheese production through strategic expansion, effective marketing strategies, and the supply of high quality products. Joseph Heler formed Joseph Heler Cheese in 1957 following a family tradition of cheese making with traditional ingredients handed down to his generation by his grandmother. The company is situated in Cheshire countryside in the proximity of the country of Nantwitch. After its formation, the company established a reputation of producing high-quality cheese by use of traditional recipes, which set them apart from other cheese makers in Britain. Much of the success of the company has been achieved through creative and pioneering strategies such as the production of the 20kg Cheshire cheese. This development was accomplished in the 1960s and placed the company in the limelight as one of the most innovative ventures in the cheese making industry. The rapid expansion of the British Cheese industry in the 1970s and the 1980s saw the company undertake other strategic changes in the range of products by producing pasteurized cheese. A consistent pattern of diversification in the range of products and strategic adjustment of quality have helped Joseph Heler to maintain an impressive performance among other Cheese producers in Britain. A noticeable feature in the Joseph Heler products is the manner in which the company has maintained the traditional recipes for the purposes of achieving a certain trademark qualities that connect with its tradition and position within the industry. This strategy has helped the company acquire a significant level of support within its traditional market segments. The strategy has also proved effective in the company’s strategic entry into alternative markets in Britain. Hand production of cheese is another unique aspect of the company as it has helped the company to retain its high quality production and an element of uniqueness that has helped the company attract and retain vast levels of clientele. In this regard, it might be argued that the original spirit of entrepreneurship, which has produced significant results for the industry, drives most of the issues that affect the daily operations at the company. The company keeps its own dairy farms where high quality milk is produced for the making of the cheese products. A strategic partnership with Geeta Company has helped enhance the positioning of the company within the market category. Products Currently, the company produces over 40 varieties of cheese. Some of the most favorite brands of cheese produced by the company include Red Leicester, Cheddar, Double Gloucester, and Wensleydale & Lancashire. Other famous cheese products produced by the company include blended cheese in the category of Wensleydale & Cranberries, and Cheshire with Spring Onions. The company’s commitment to enhance the quality of the products has led to strategic expansion, which has helped increase the nature of variety and quality that ordinarily connects with the products. The addition of other flavors and Indian ingredients is one of the ways that Joseph Heler Cheese has used to enhance its quality of products over the times. Market Joseph Heler operates on the British market that consists of various segments including the United Kingdom (UK) market, the ingredients sector, which uses the cheese in the production of sandwiches, pizzas, ready mills, and sauces. The company also operates on the export market with various leading destinations such as France, Australia, China, Caribbean, USA, India, and UAE. Another significant market segment is the food service sector where the product is used in restaurants and cafes. Marketing Strategies and Challenges Faced Joseph Heler Cheese has developed a range of marketing strategies that have helped the company to enhance its quality of products and other key indicators of growth. The company has often employed a combination of marketing strategies for the purpose of reaching the various categories of the client and enhancing the position and profile of its brands on the British and global market. The marketing techniques adopted by the company have enabled it to achive high volumes of sale and other key performance indicators that have helped it to stay above competitors. Some of the strategies employed include media advertisements, promotional activities, event sponsorships, and strategic market researches. Years of consistent growth are indicative of the fact that the firm’s strategic marketing contributes meaningfully to the rise in profile over the times. Raising the bar in competition is one of the key strategies that have helped Joseph Heler to maintain a high profile on the foods and beverages market. The company employs multiple strategies for the purposes of enhancing its reach across the markets (Nagel, 2012). One of the strategies include effective marketing. Joseph Heler maintains a strategic marketing strategy that exploits the weaknesses of competitors while creating conditions for attracting new customers while retaining old ones. Marketing strategies employed by the company have enabled it to build strong brands on a market that requires particularly effective brands in order to make lasting impressions. Years of effective marketing has helped Joseph Heler to acquire a significantly strong image on the market. The cheese production industry is usually controlled by various influences including diverse customer preferences and challenges related to demand and supply. Colorful packaging is another strategy that helps Joseph Heler to stay ahead of competitors. In the world of business, effective packaging helps companies to enhance the brand of products. The aspect of packaging significantly determines the image of products. Comparative analyses have shown that companies or businesses that invest significantly in packaging are more likely to succeed in business as compared to those that do not package their products with a sense of uniqueness. Packaging influences the minds and attitudes of consumers concerning specific products. As such, it becomes important to consider the fact that packaging is one of the key strategies that has promoted the growth of Joseph Heler products on the British and global cheese production industry. Packaging promotes the image of products in ways that help in influencing the minds of the customers. The packaging of Joseph Heler products usually involves the use of various colors, symbols, and images, which influence the decisions of the users concerning the products. Apart from packaging and effective marketing, Joseph Heler maintains an effective customer care policy that aims at the attracting and retaining a large client base. Currently, Joseph Heler enjoys a significantly customer levels on the global market, which translates to a high volume of business as compared to competitors within the cheese production market. The development of a strong brand combined with the enlargement of the company’s large product range has ensured that the company retains a lead in many areas of the industry. The industry works in ways that require a balance of strategies and a combination of options necessary to control the threats and competition while also ensuring high quality products for the customers (DuBrin, 2009). The packaging as managed by Joseph Heler also involves an element of safety, hygiene, and quality, which are some of the attributes that have contributed to the growth of the company’s strong brands. Another effective strategy developed by the company includes the creation of effective strategies for acquiring or merging with competitors. An important element in marketing involves the creation of strategies meant to allay the various challenges posed by the competitors. In this regard, the company has evolved various strategies that connect effectively with demand and supply of the cheese products on the market. Companies that deal in the cheese and dairy product production usually control the level of competition by raising the level and quality of service delivery (DuBrin, 2009). Joseph Heler often focusses on high quality products in order to effectively attract and retain its customers. In essence, the development of the various strategies requires effective manipulation of the clientele in ways that attend to particular preferences as determined by the market. Usually, the challenge that faces many companies in the food and beverage industry is keeping pace with the changing nature of market preferences. The cheese and dairy products industry is one of the most competitive industries in the United Kingdom and around the world. One of the strategies adopted by Joseph Heler is the development of a range of business strategies that seek to elevate the quality of its 40 varieties of cheese products in order to stay ahead of competitors. Strategic marketing has often involved the advertisement of individual products as opposed to cumulative advertisement (DuBrin, 2009). This strategy has proved effective particularly within specific market segments in which the specific products are based. The use of various types of media for the purposes of advertisement and marketing remains a key advantage used by the company to market itself and its products. For instance, some of the strategies entail the use of social media, which offers a broad catchment area for the global clientele. Joseph Heler has often engaged in targeted marketing that is meant to capture the unexplored segments of the market. For instance, the current strategies is aimed to capture people across a variety of demographics with the intention of increasing its influence across multiple categories. One such strategy has often included the packaging of information meant to attract the elderly people and people across various cultures (Ferrell, & Hartline, 2011). The adoption of cultural and group messages often gives the company a key advantage over competitors within the market. For instance, Joseph Heler has managed to develop a combined strategy that involves the development of special messages meant to influence and inform the targeted clientele about matters of diet. Groups and individuals throughout the world are increasingly getting conscious on matters of diet and nutrition. Part of the marketing strategies involves the packaging of information in a way that intends to inform the clientele about health matters and issues related to hazardous nutrition. A combination of business strategy and a response to the pressure from the markets are some of the issues that have informed the company’s rise in profile over the times (Hoskisson, & Hoskisson, 2008). Part of the business strategies that the company has engaged into includes strategic partnerships with companies that offer related services. The company’s partnership with Geeta remains one of the most successful strategies that has helped broaden its influence across the market. Another expansion strategy has involved the addition of more brands to the company’s portfolio. Total quality management is a concept that denotes the streamlining of activities within a firm with the singular objective of meeting the requirements and the standards of the clients, workers, and other stakeholders in a manner that encourages collective growth.. Total Quality Management Businesses around the world have adopted different growth strategies that are specific to their objectives. In the case of Joseph Heler Inc, the survival on the market has been anchored on the areas of quality products, customer satisfaction, affordability, worker satisfaction, and flexible price regimes (Ferrell, & Hartline, 2011). The ability of the company to anchor its products into the concepts of healthy living and cultural dynamisms has been one of the important selling points of Joseph Heler Inc. In this structural approach the business manages to satisfy the aspect of total quality which is a fundamental pillar of success on the competitive cheese market. The company’s operational paradigm is anchored on strategic policies that support uniform growth across the different categories of operation. The company has maintained a steady climb on the market through a targeted process of satisfying the health needs of her growing clientele. The dimension of services and products, which is a key element of total quality management, was effectively met through the venturing into multiple varieties and sizes of pasteurized cheese and blended dairy cheese products (Ferrell, & Hartline, 2011). The idea is to widen the company’s objective beyond the narrow boundaries of profit margins towards the promotion of healthy lifestyles within the ever-expanding market niche. From the same perspective, this company has made it its business to promote value by upholding a campaign against the consumption of junk foods through the spread of information on appropriate nutrition (DuBrin, 2009). The whole idea is to direct some positive influence towards the dismantling of the idea that fast-foods are essentially hazardous to urban communities. The spread of positive messages of nutrition is an important strategy that connects with various issues that determine the level of performance in the industry. Joseph Heler promotes positive values through strategic management of processes that connect with matters of growth. To a significant degree, the concept of total quality management is dependent on the aspect of sound management. Within this concept, managers should show a desirable level of commitment for the purposes of affecting positively on the workforce. The overall manager must demonstrate an active desire to mentor and inspire the work force. When this happens, there is often an element of uniformity within the work force so that the people within the system work together towards a meaningful whole. Service delivery and process modulation enjoys reach their optimum efficiency as a result of the positive force that results naturally from the ability of the manager to create positive change in the system. In the case of Joseph Heler, the company’s chair Joseph Heler has managed to create a system whereby the entire work force works together as a team with little interpersonal friction. Through her unconventional approach to management issues, Heler has managed to create an environment that encourages popular discussion among the people in a way that affects the performance of the company in a positive manner. Since he formed the company and presided over its operations, Heler has managed to bring on board different skills within the work force to promote positive results in terms of service delivery (Nagel, 2012). He has managed to structure a system with a horizontal rather than vertical system of approach. The effect of such a structure has been the elimination of unnecessary hierarchical structures in the system. The consumer segment is driven by relatively low price and efficiency in use. This particular segment shall involve varieties of individuals, families and other private clients who cut across the classes and professions. The price variations for these however shall vary across the classes and probably across the sexes. Consequently, the process of decision making within such a system is relatively more efficient than a system that is rigidly controlled by stringent bureaucracies. In other words, the level of efficiency in any system is inversely proportional to the amount of hierarchy that reflects within it. In accordance with the principles of total quality management, the net effect that is appropriate to achieve the aspect of efficiency is ownership. The concept of ownership revolved around the idea that the entire chain comprising of the management, the supervisors and the workforce should establish a form of acceptance of the key processes in a way that creates harmony across the ranks of the workforce. Such an arrangement is undertaken within the whole concept is the idea of accountability. Challenges One of the challenges facing Joseph Heler is the maintenance of high quality products in a rapidly growing industry and the changes in profile across the industry. The cheese production industry has attracted new players within Britain and across the globe. These new players come with various strategies that are meant to improve the ratings of the organization and its performance across various categories. In order for the company to maintain its position on the market and attract new customers, Joseph Heler, has had to increase its expenditure on marketing and the improvement of product quality, which translates into higher operational costs for the company. Some of these challenges make it difficult for the company to compete effectively with the same competitors. Another significant challenge faced by the industry relates to the determination of the changing preferences of the customers. This requires prediction of trends in order to adjust systems in the most appropriate manner that would avoid risks of low sales and mismatch in budgeting. Rival companies the produce low-quality and low-priced cheese products have tended to influence customer preferences in ways that pose significant threats to the survival of Joseph Heler on the markets. As such, it becomes appropriate to create alternative modalities of operation that would shield the company from the hostile forces on the market. This process implies that the working community accepts to get wholly involved in every structure of the organizational system. This means that the entire team owns the successes, challenges, opportunities that work within the system. The operation of this idea also implies that all the workers, the management team and the supervisory team learn to own the process. The trends on the European, Asian, and African markets have exerted tremendous pressure on the production range, which can lead to a train in quality. In some areas the company has ran a monopoly with little in form of competition coming its way. Although this situation might have, and does have its positives in terms of income, there is also a tendency towards complacency and laxity on the quality edge. Most of all however, the balance between quality and quantity has demanded that the company calls carries out consistent monitoring and evaluation processes that are meant to increase the levels of and quality of the products. Joseph Heler has developed a series of enterprising models to serve the objectives of total quality management. The three main methods employed by Joseph Heler products to meet the quality needs of her global clientele are mainly diversification of the product range, aggressive marketing strategies, and production of quality products (Penzkofer, 2007). Joseph Heler has a wide range of clientele who cut across different ethnicities, nationalities, races and other categories. Over the years that the firm has been in operation, it has managed to increase the inventory of her goods to serve the disparate needs of her growing clientele. Evaluation of Challenges In the course of doing business, Joseph Heler incorporation has encountered a range of challenges that include the rising costs of operation, competition from emerging Chinese firms, unpredictable financial markets and other factors that pose operational and strategic difficulties (Penzkofer, 2007). The company has managed to overcome some of these challenges through strategic and structural changes that make use of some important synergies from the markets. Rising Costs of Operation Like other industries in the developed and the developing world, Joseph Heler has faced challenges in rising costs of operation, which result from shortages and competition for supplies materials, and high-energy costs. Fuel and electricity pose major challenges because of seasonal shortages and rising costs of production. Past efforts in expansion have often resulted in increased consumption of energy, which is compounded by instabilities in the energy sector around the world (Griffin, 2007). In response, the company has engaged in various energy saving costs that include strategic investment in energy efficiency systems and technologies that have brought significant advantages to the operations. Further, the company continues to undertake various cross-cutting measures across the board with the intention of boosting its systems of production through energy-saving measures (Griffin, 2007). As a large multinational, Joseph Heler continues to enjoy the benefits of the economies of scale, which result from the advantage of reduced cumulative costs in many of its operations, expenses, and other overheads. Today, the company remains one of the most dynamic and cost-effective within the food and beverages industry. Competition from Chinese Firms Since the emergence of China as an economic power, the country has continued to fund the revitalization of various sectors with the view of increasing overall output in its industries (Ferrell, & Hartline, 2011). Private investors and the government have undertaken policies meant to ease internal conditions for operation in ways that promote efficient utilization of energy and growth. Chinese food and beverage companies have also benefited significantly from cheap labor and other additional incentives on the market. The overall consequence of cheap labor is the reduction of the costs of production and the enabling of easier expansion within the country. China’s massive population has continued to provide the necessary synergies for easy growth and the expansion of Chinese firms into other segments of the market. A large client base provided by the large population is also a key advantage that China enjoys over other players in the food and beverages industry (DuBrin, 2009). On the other hand, the cost of labor in America and western capitals continue to rise as a result from inflationary pressures and other financial issues that affect the normal running of businesses. These factors provide key advantages for China over other countries in the industry. In response, Joseph Heler should find more ways of increasing the level of investment into the Chinese markets in order to shore up production. Unpredictable Financial Markets The recent global financial crisis and the unstable status of the euro crisis are some of the key financial issues that have continued to threaten the dominance of Joseph Heler in the global market. Financial crises have had some adverse impact on the firm particularly from the perspective of the spending power of the clientele and the reduced demand in some of the Joseph Heler product (Halbert, & Ingulli, 2012). Inflationary pressures and other financial issues have meant that people in the western capitals change their patterns of consumption to accommodate the adverse impacts of the global market. As a result, noticeable changes in the patterns of consumption continue to threaten the position of Joseph Heler in the global food and beverages industry. Strategic measures including lowering of prices and the issuance of discounts are some of the remedial pressures that have kept the company in good stead despite the challenges (Halbert, & Ingulli, 2012). Competition For quite a long time, other British and foreign Cheese production companies remains the most significant competitor within and without the United Kingdom (White, 2009). The level of competition among the various companies has continued to fluctuate over the times with each of them attempting various strategies to reduce the impact of the competition. Historically, the competition between the two companies has lasted for several years (Hoskisson, & Hoskisson, 2008). Response to the competition has often entailed the adoption of structural changes meant to improve the synergies and performance of the two companies in various ways. The various mergers and acquisitions that Joseph Heler has undertaken were largely aimed at improving its ratings and performance on the market. Largely, the development of strategic approaches to business has enabled the company to acquire a higher significance in the market as compared to other rivals. The refreshment beverage market has tended to offer Joseph Heler an age over its main competitors due to the various synergies of business between the various companies (Hudson, 1994; Farrington, Henson, & Crews, 2012). In this regard, the company continues to derive significant amounts of profits from many of the major investments acquired within the expansion strategies undertaken by the management. It might be important to consider the fact that some of the smaller competitors have a disadvantage of capital, which makes it difficult for them to engage in the same level of competition as the dominant competitors and Joseph Heler. The competition between Joseph Heler and the other players within the cheese production industry has often manifested within their international businesses. Both companies consider the United States market as the most lucrative due to certain logistical advantages and the large client base (Norkus, & Merberg, 1994). Much of the profits for Joseph Heler are within the United States. North and South America constitute the highest revenue contributors for Joseph Heler (Gupta, 2011). The other significant contributor is the European market although the company still enjoys significant revenue from all the remaining parts of the world where it has maintained a commercial presence for years. Analysts describe the kind of competition between the two companies as stable given the span of time in which the competition has lasted (Eccles, Perkins, & Serafeim, 2012). Various factors combine to determine the nature of competition between Joseph Heler and other players in the cheese production industry. The diverse nature of the American clients has often made it difficult for the determination of the precise nature of demand. Other determining factors to the level of competition include trends in diet, which has forced many clients to shift their preferences in line with the determinants of the domestic and international markets (Ng, 2011). In this regard, controlling the American clientele include various social and political factors that determine the kind of operational environment for the competition. Joseph Heler has endeavored to package its operations in line with the dominant trends and preferences of the market. The insistence on positive health policies and the company’s support for various people-centered legislations have helped the company to win the support of many customers within the United Kingdom and in the other countries and regions where it operates (Ng, 2011). Recommendations In order for Joseph Heler to survive and grow within the challenging business environment of cheese production and dairy products, the management will be required to undertake reviews in the structure with the aim of enabling specific synergies for growth. Overcoming seasons of low sales will require the adoption of effective strategies that align with specific interests within the company’s overall objectives. The company should deal with strategies that work in the long-term and short-term with regard to controlling its global reach on the markets. There should be efforts to take advantage of the rapidly evolving market segments in areas where the company has lesser influence such as the Middle East and Africa. Some of the important considerations of achieving such strategies must revolve around the need of aligning the nature and value of products to the peculiarities of the markets as determined by certain aspects of culture and preferences. Joseph Heler should operate under a flexible structure and strategy in order to overcome the adverse effects of some foreign markets. Such flexibility should entail the development of systems and regulations that permit certain changes that are meant to minimize the adverse policy matters in countries with regulated economic systems. The changes in the internal strategies of organizations should be undertaken in ways that connect effectively with the need to outperform traditional competitors while limiting the potential threats posed by emerging competitors. Policies for combating the global threat posed by competitors could involve the developing of certain schedules meant to further strengthen the traditional segments as a way of checking against the entry of new players. At the same time the company should find ways of encroaching into the segments controlled by competitors for the purpose of increasing its level of advantage. 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Joseph Heler, 2013, Company, Joseph Heler.com, Retrieved from http://www.Joseph Heler.com/Company.html White, M 2009, A short course in international marketing blunders: Mistakes made by companies that should have known better, Tribun EU, Brno. Joseph-Heler 2013, Our Cheese, Joseph Heler, http://www.joseph-heler.co.uk/ Read More