Unit: Business Culture and Strategy UNIT CODE: F7J7 35 CONDITIONS FOR ASSESSMENT The assement may take the form of open book assessments with structured questions for all the outcomes. The instrument of assessment is having a stimulus case study based on organisation and which will be used for all the outcomes. The candidate evidences show remarkably shows the linkage with the evidence requirement for each outcome. Candidates are encouraged to produce report based structured answers for each outcomes. Where the candidate does not meet the required standard on the first submission, remediation should occur on the existing questions after authentication and feedback with guidance from the concerned lecturer. Candidates should submit all the work for all the assessement tasks on the agreed date by the lecturer. Candidates should be given copies of the case study and the questions in sufficient time so as to allow them to prepare and submit work on the agreed submission date. Business & Accounting Assessment Page 1 F7J7 35: Case Study (Stimulus material) for all Outcomes Al Amalia – Taste of Oman Al Amalia Group of Industries is the pioneer in the food and beverages industries in Sultanate of Oman. It is a market leader of international quality snacks and beverages. Established in 1980 with modest beginning, the Group has diversified itself into an industrial house with multifaceted business activities comprising manufacture of snacks, soft drinks, juices, hot beverages (Tea and Arabic coffee) besides facial tissues and sanitary napkins. Company strongly believes manufacturing products under hygienic conditions with highest quality standards using best quality raw materials from standard suppliers and making fresh products in the market. The management of Al Amalia industries has been instrumental in making the business one of the most successful and leading industrial houses in Sultanate of Oman. Mr. Khalid is the founder and Managing Director of Al Amalia Industries, who is behind the growth and prosperity of this company. The business was an immediate success, with sales exceeding expectations. Factories were opened in different parts of Sultanate. The informal working relationships between partners have reinforced professionalism and overall strategic development at Al Amalia. Al Amalia Food Industries continue to maintain its number one position in the market, on its own merits and some of their products are household names throughout Sultanate of Oman. From the days of its introduction in 1980, GOLDEN CHIPS – chilli flavour is the market leader in its segment. Made from the finest quality fresh potato, GOLDEN CHIPS is the sought after potato chips in Oman and other GCC Countries. The Company also manufactures several other brands of chips from fresh potato and potato / Oats based pellets. „Crispy Chips‟ and „Potato rings‟ are the famous brands among other brands. According to the company‟s mission statement Al Amalia sees itself “as the leading source of the finest chips in the world by maintaining uncompromising principles”. The need to align to the principles and ethos of Al Amalia has been a primary concern when recruiting its staff to create a positive working attitude. The company refers its employees Business & Accounting Assessment Page 2 F7J7 35: (including part-time employees) as partners who enjoy several benefits that include Al Amalia-wide stock option plans, health, medical, dental and optical benefits. One of the biggest challenges affecting Al Amalia in 2015-16 was the growing concern about obesity, particularly in children. Eating habits are always changing. Currently one in four of Omanis consume potatoes in the form of chips. Recently „Golden Chips‟ have seen a slowdown in sales as a result of social campaigns by health organisations to encourage healthier eating habits. Al Amalia responded to this challenge by reducing quantities of salt and oil throughout its potato products range. The company has launched various marketing campaigns emphasizing that „Golden chips‟ contain only 5% fat, 0.8% saturated fat and 62mg of sodium in every 100g portion. They are made with only natural ingredients - specially selected potatoes and sunflower oil. Advertisement campaigns and advertising is that all Al Amalia potato products are made from simple ingredients such as whole potatoes and sunflower oil. It conveys that the foods that it provides, including potato based products, which are nutritious provided that they are prepared in a healthy and simple way. Al Amalia takes its responsibilities towards its stakeholders very seriously. It is important to build a reputation for honesty and fair play. In addition Al Amalia‟s products comply with a range of UK law, including: The Food Safety Act, covering the way in which food is prepared and served, The Trades Descriptions Act, which states that goods and services must be exactly as described and the Weights and Measures Act governing such aspects as giving the right weight on packs. The actual strong point of organization lies in the quality of its human resource and Al Amalia Group is not an exception to this rule. With an effective strength of over 600 employees no effort is spared in equipping the employees with appropriate training and orientation. As a Group with a determination to assist the Government‟s drive to create a national workforce, Omanisation has been prominent on the agenda. At present the Group has over 40 percent Omanisation and this percentage is set to increase in the years to come. Business & Accounting Assessment Page 3 F7J7 35: The Group has arrangements with famous Training and Human Resources Development Institutions to conduct regular training programmes. Food technology is one of the most dynamic technologies in the modern economy. Food technology involves researching and developing new techniques for making products as diverse as ice cream, probiotic yoghurt, frozen oven chips and muesli bars. Al Amalia seems to be aware of these challenges and started to focus more on its diversification. As Al Amalia fight to control spiraling costs, other factors such as technological advancement, consumer demands and economic conditions have all conspired to challenge business models and strategic positioning. In the meantime, another company called Al Maara Company established in 2007 has started selling Tortillas Chips plant at an Industrial Estate of Oman which was an innovative concept as it was the first plant of its kind in this region introducing Mexican chips for the first time in Oman. It produced delicious pizza flavour, which was highly appreciated by consumers. Later after 4 years company established fresh potato chips with varied flavors which turned out to be popular throughout the Middle East in no span of time. In continuation of these developments from upcoming competitors, Al Amalia took a major policy decision in 2012 to venture into the production of carbonated drinks under the names of „FRUITI‟ and „SWEETY‟. AL AMAL Tea was added to the product portfolio in 2013. Available from tea bags to loose tea, this product was followed by other brand „KAHWA‟ tea bags which are containing traditional Arabic coffee. Al Amalia came up with another business unit which manufactured facial tissues and sanitary napkins which have also captured Oman market. Al Amalia Group‟s products are household names in the Sultanate of Oman and many of the manufactured items are market leaders in their particular category. Undisputed and unchallenged asset of the Group is their unique marketing & distribution network which is spreading all over the country including the mountainous areas and Salalah. The Group also caters to a large market segment in Saudi Arabia, United Arab Emirates, Qatar, Bahrain and Kuwait and is looking into UK potential market segments. Business & Accounting Assessment Page 4 F7J7 35: Another considerable move by Al Amalia involves partnering with other companies and coffee shops that are located in Oman and other GCC countries. It also started giving licenses to college campuses and schools. The fact that Al Amalia operates with local partners is to improve the company‟s share of profits. While generally operating successfully in local market, the company has recently faced some economic problems due to increased competition. Dubai based companies are the major threats with their innovative product lines and flavours. The company is seriously thinking of different strategies to handle competitors and the innovative product lines. Long-term goals of Al Amalia are to have worldwide supply. Hence, the company is aggressively focusing on various issues and wants to take decisions which can determine the future. The company has to navigate its brand to a market position where it can satisfy both types of customers: the old aged customers who are now missing the Al Amalia “experience” and the younger generation who are perceiving Al Amalia as „hip‟ and „cool‟ product but feeling unrelated to product sometimes. As their new approach is to attract new customers, Al Amalia ensures that each store looks distinctively local. This concept helps them to create a calm and contemporary style merchandising respite from the clamour of the fast-paced world. Furthermore, a stagnant but promising market for specialty coffee provides Al Amalia the chance of capturing additional consumers‟ shares of wallet. For an already established company like Al Amalia this should be easier than for new market entrants and small competitors. The company has established their name as good employer and they always focus and emphasis on becoming Equal Opportunity employer. All qualified applicants receive consideration for employment without regard of race, nationality, origin, age, sex, religion, disability, sexual orientation, marital status, veteran status, gender identity or expression, or any other basis protected by local, state or federal law. They are balancing the omanisation policy with their HR recruitment policy. The future looks promising and it also has added pressures on company to perform better in all business units. The Market for snack foods and soft drinks in Oman and other Countries is expected to expand offsetting the demand-supply equilibrium. Al Amalia Group looks to Business & Accounting Assessment Page 5 F7J7 35: the future with more innovative products and excellent customer satisfaction. The customer has been and will continue to remain the focal point of their development and success. The Group is committed to provide across-the-board products and services to a wide spectrum of consumers for many more years to come. Note: The information used in the above case study is a stimulus material and is imaginary where all the required information about an Organisation is given to facilitate the unit requirements. Business & Accounting Assessment Page 6 F7J7 35: Unit: Business Culture and Strategy UNIT CODE: F7J7 35 ASSESSMENT 2 (Open book) Assessment task 2 Outcome covered-3 & 4 Assessment task instructions Examine the given case study and answer the following questions with detailed explanations drawing from range of sources to support your answer. Your answer should include contents/examples from the case study. General instructions for the candidates: (a) - Each question must be correctly answered. - Using diagrams or tables is possible, but not enough without associating with some accompanying explanation or discussion. - A detailed knowledge of relevant concepts and adopt a critical approach to explanation, comparison and the application of theoretical perspectives should be provided. Explain four different business strategies in relation to the appropriate business environment. Your answer should: - include an explanation of four possible strategies. - Include a link for each strategy to a credible organisational environment (b) Explain the connection between the business strategy and strategic choice related to the experience of Al Amalia. (c) Suggest two different business strategies within Al Amalia and compare their influence over organisational behaviour. Your answer should include: Business & Accounting Assessment Page 7 F7J7 35: - a choice of two business strategies - a justification for the choice with reference to the case study - a direct and credible link between strategy and behaviour with respect to two different strategies - a comparison of the two strategies (d) Do you think that the management of Al Amalia should consider „forces for change‟ to update its business strategy over time? Why? Your answer should be: - with reference to two relevant factors. - include two key issues that Al Amalia must consider when managing its business strategy. (e) Identify and explain four potential benefits that Al Amalia could enjoy as a result of an effective business strategy. Assessment task 4 Outcome covered 5 (a) Evaluate the role of management within Al Amalia during the process of change. Your answer should: - make reference to accepted approaches to the management of change - refer to a suitable strategy for the company in this period (b) Explain the possible impact of any one contributing factor that may impact change management programme within Al Amalia. (c) Using a conceptual framework, advise Al Amalia management how to analyze change it might face in future. Your answer should: - refer to a model of change - includes examples from the case study Business & Accounting Assessment Page 8 F7J7 35: (d) (d) Using a conceptual framework, advise Al Amalia management how to minimize and overcome resistance to change. Your answer should: - provide advice based on a model against which to analyse change - give coherent advice on overcoming resistance based on a recognised classification which recognises that a number of ways are possible. Deadline: 20 November 2016 Note: • Candidates are expected to prepare this report individually and also upload via the Turn-It-In tool provided by Muscat College on or before the date of submission. It is the individual responsibility of each candidate to ensure that there is a low similarity index score. • Your answer should depict clear understanding of the case study by providing appropriate examples wherever applicable. • You must provide bibliography/references for your sources Business & Accounting Assessment Page 9 F7J7 35:
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