UNILEVER - LIPTON

Tranquil Tea-New Comapny

MANAGERIAL POLICY Assignment 7

Syed Zaeem Naqi Rizvi

Hiba Fatima Jafri
Saad Imtiaz

Contents
BUSINESS ARCHITECTURE ...................................................................................................... 3
Functions of the Company .............................................................................................................. 5
Marketing .................................................................................................................................... 5
Finance ........................................................................................................................................ 6
SOP.............................................................................................................................................. 9
HR ............................................................................................................................................. 11
Culture ....................................................................................................................................... 15
SWOT ........................................................................................................................................... 16
Leadership ..................................................................................................................................... 18

BUSINESS ARCHITECTURE
Name
Tranquil-Tea
Vision
To achieve the skill set for providing the customer with the most healthy, delicious and
refreshing tea.
Mission
To be the able to give the customer a better and economical product while promising the highest
standards of quality by producing tea that exceeds customer expectations and increase the wealth
of our stakeholders. In essence being a brand that focuses on forging relationships.
Strategy
Using the cost strategy we will focus on creating a brand that caters to the entire market. In its
totality following a very customer oriented approach with tagline A tea for everyone.
Utilities
We will be focusing on form utilities as we are targeting the entire market. The form utility is the
benefits and satisfaction consumers derive from the actual product, when your product is made in
different sizes, blends, and types.
Profit Equation
We will focus more on quantity as we are targeting the mass markets so our profits will be
dependent on the volume of the product we sell.
Profit = (Selling Price Cost Price) x Quantity

Corporate and Functional Policy

Our corporate policy will be aligned with the different functional policies to ensure the efficiency
and productivity of each department within the organization. To achieve this end our
organization will be following a matrix organization structure so that our corporate policy can be
effectively implemented throughout the functional departments.

Functions of the Company

Marketing

The marketing mix and the 4 Ps of marketing are often used as synonyms for each other. In fact,
they are not necessarily the same thing.
"Marketing mix" is a general phrase used to describe the different kinds of choices organizations
have to make in the whole process of bringing a product or service to market. The 4Ps is one way
probably the best-known way of defining the marketing mix.
Our 4 Ps are outlined below.
Product
We are selling a tea made for the masses that would appeal to people from all walks of life.
Price
The price will be as low as possible while giving the highest quality achievable. With the
margins on our cost being 10% only.
Promotion
We are going to target everyone in the market. As the market requires a product that everyone
can relate to so our promotion is going to be targeted for one for all.
Place
We are going to be focusing majority of our budget on Television (70%) as the majority follows
it while using Print (20%) and Social Media (10%) for the minority.

Finance

Our debt to equity mix would be around 50:50 as our industry is consumer goods based
operation thus we would be making huge returns due to fast movement of product.
To evaluate our performance we would use the following ratios.
Profit Margin
A ratio of profitability calculated as net income divided by revenues, or net profits divided by
sales. It measures how much out of every dollar of sales a company actually keeps in earnings.

Interest Coverage Ratio

A ratio used to determine how easily a company can pay interest on outstanding debt. The
interest coverage ratio is calculated by dividing a company's earnings before interest and taxes
(EBIT) of one period by the company's interest expenses of the same period:

Gross Profit Margin

A financial metric used to assess a firm's financial health by revealing the proportion of money
left over from revenues after accounting for the cost of goods sold. Gross profit margin serves as
the source for paying additional expenses and future savings.
Calculated as:

Where:
COGS = Cost of Goods Sold
Also known as "gross margin."

Debt/Equity Ratio
A measure of a company's financial leverage calculated by dividing its total liabilities by
stockholders' equity. It indicates what proportion of equity and debt the company is using to
finance its assets.

Debt Ratio
A financial ratio that measures the extent of a companys or consumers leverage. The debt ratio
is defined as the ratio of total debt to total assets, expressed in percentage, and can be interpreted
as the proportion of a companys assets that are financed by debt.

Average Collection Period

The approximate amount of time that it takes for a business to receive payments owed, in terms
of receivables, from its customers and clients.
Calculated as:

Where:
Days = Total amount of days in period
AR = Average amount of accounts receivables
Credit Sales = Total amount of net credit sales during period

Inventory Turnover
A ratio showing how many times a company's inventory is sold and replaced over a period. The
days in the period can then be divided by the inventory turnover formula to calculate the days it
takes to sell the inventory on hand or "inventory turnover days."

SOP

Standard operating procedures (SOPs) are the documented processes that a company has in place
to ensure services and/or products are delivered consistently every time. When a company is
growing, it is often highly dependent on the owner for all major decisions. As the company
reaches a certain size, this form of decision making can limit its capacity to grow further since
the owner cannot possibly make all decisions properly. Additional management and documented
SOPs are required to allow the company to continue growing, and also establish a succession
plan and train the growing employee base.
The existence of documented standard operating procedures can increase the value of a
company. It shows a buyer that the company is "process driven", rather than "founder driven".
When a company has well documented SOPs, it should include them as part of its sales pitch to
try and generate a valuation premium.

Some of the key SOPs required in the business would include:

Strategic management - provides for the steps that senior management must follow to
generate the company's long term strategy;
Human resources and payroll management - provides for the steps to qualify, hire, train,
and fire employees in the organization;
Operations - provides the steps to handle every aspect of operations including quality
control, procurement, safety, and overall execution of services;
Finance & administration - provides the steps to handle all financial transactions as well
as reporting of key performance indicators for the company;
Forecasting and budgeting - provides the steps to follow for completion of the company's
annual and 3 - 5 year forecasts;
Sales and marketing - provides for a detailed description of all activities used in lead
generation, sales presentations, and closing; and
Information technology - provides a detailed account of all IT protocols including
password setting, backups, and disaster recovery plans.

HR

The target for our HR would be fresh graduates from the top business and engineering schools
from the country to ensure we get the best talent. We will use the following Recruitment process:
1. Identify workforce need
Has an established position become vacant, or is there a demonstrated need for a new
position?

Analyze and discuss your recruitment requirements with Human Resources, considering:
o budget
o workforce establishment
o workforce plan
Get approval from the delegated authority to start recruitment process.

2. Review position description and classification

The hiring manager will need to:
o clarify the type of position required; the proposed job classification and salary; and
the required skills, knowledge and behaviours
o check the position title is in line with official position title guidelines
o check the position description is up to date, including position accountabilities, key
selection criteria, qualifications, skills, knowledge and behaviours
o consider other requirements such as health and safety, web publishing and mandatory
checks (for example, Working with children or police checks)
o decide on attraction, recruitment and selection methods, including any targeted search
activities for equity groups or specialised and difficult to source skill sets
o Decide on selection panel members and the extent of their activities for example,
will they be involved in initial applicant screening?
o confirm the advertising budget available
3. Seek approval to appoint
The hiring manager should:

seek approval of the following through PageUp, the Universitys online recruitment
system:
o recruitment and advertising request
o justification/reason for recruitment
o cost centre details

o position number (if established position)

o updated position description
o selection methodology
o selection panel composition
o advertising preferences
establish the selection panel and contact panel members to clarify their responsibilities,
involvement and meeting times
establish selection methodology and activities for example, interview questions, case
studies

4. Sourcing and advertising

At a minimum, the position should be advertised through the RMIT recruitment website. As
well, the hiring manager should consider any suitable redeployees.
The position can also be advertised through:
o
o
o
o
o

online websites
specialised websites (professional forums and associations)
print media (newspapers, magazines, journals)
agencies (general or Search)
referrals /word of mouth

5. Assess suitable redeployees

Assess suitable redeployees, and proceed in line with the redeployment procedure.
6. Shortlist candidates
Shortlisting is a way to narrow the field of candidates to those you would like to interview or
assess.
Shortlisting can be done by the:
o
o
o
o

Human Resources
hiring manager
selection panel
any combination of the above

The short list needs to be approved by the Chair of Panel (prior to interviews).
7. Conduct interviews and assessments
o Liaise with Human Resources to coordinate at least one formal panel interview. (This can
include all panel members or be split over two interviews.)
o Contact Human Resources for advice on behavioural interview questions

o Prepare and agree on the questions to be asked of all applicants through the interview
process.
o Decide if any additional assessment methodology should be used for example,
assessment centres, role plays, presentations, case studies, psychometric assessment.
o During the interview, probe the applicant by asking the pre-arranged questions linked to
the selection criteria; also ask follow up questions to determine suitability.
8. Check references
The Human Resources or the panel chair will undertake reference checking in line with the
requirements of the role.
See step 11 for further checks.
9. Select preferred candidate
This will be the candidate who best meets the selection criteria.
10. Make a verbal offer
Obtain approval from the delegated authority to generate offer of appointment
Extend a verbal offer of appointment to the preferred candidate once the offer has been
approved.
Note: The Chair must recommend professorial titles to the Vice-Chancellor for approval.
11. Organise required checks
Human Resources will conduct the following verification checks where appropriate:
o Police checks
o Working with Children checks
o Sighting and verification of qualification.
Note: Probation may be subject to the successful completion of these checks.
12. Contract offer and acceptance
o Prepare the letter of offer.
o Send the letter of offer to the preferred candidate.
o Receive signed letter of offer from preferred candidate.
o Ensure all relevant checks have been successfully completed.
o Ensure all relocation arrangements are agreed (where relevant) and processes are
underway.
13. Contact unsuccessful applicants

After the successful candidate has accepted the contract the Human Resources will advise all
unsuccessful candidates via telephone or email.
14. Commence induction
The hiring manager will be notified that the staff member has signed the contract and will be
advised of the start date and induction and probation provisions.
15. Commence probation period
If staff member is new to the University, continue induction process in line with the
induction and probation procedure.

Culture

Customer is King
We put customer needs before all else, focusing on the fact that it is the consumer that actually
runs the company through their perceived needs and perceptions.
Integrity
We work only with people that show integrity in their work and lives. Everyone we hire, whether
it be our designers, architects, managers and lawyers, all share a strict code of ethics and
integrity. We believe that this is what drives people to do amazing things, and we apply that to
our company in every hire and decision we make.
Creativity
The foundation for our company is our people. But just as important is the creativity our people
bring to the table every day. We emphasize a corporate culture of creativity and "outside the
box" thinking. We challenge everyone in our company to be creative every chance they get.

Passion
Our Company thrives on passion to achieve our goals. Our staff is passionate about every detail
of our company, whether it is large or small. Without passion, we wouldn't be able to do
what......please our customers!

SWOT

STRENGTHS
o
o
o
o
o
o
o
o
o

Experienced and quality management.

Strong Ethical value (culture and heritage)
Strong financial position
Strong company image
Success of the slogan
Quality & variety
Effective & attractive packaging
Brand recognition
Accessibility

WEAKNESS
o It is a major hurdle for us to position tea in the minds of the consumers and encourage
them to indulge in brand switching.
o Have to import some of their products from other countries, which increase their costs.
o Most of the sales are on cash, problem for the distributor then they can switch to
competitors.
o Tight quality control procedures lead to higher costs and its time consuming and often
discontent the suppliers.
OPPORTUNITIES
o The market growth of the tea-bag market because of it being easy to use.
o Customers are more attracted towards strong taste and quality of tea offered by tea
providers.
o There are markets in Punjab, N.W.F.P and Balochistan, which are not as yet explored by
competition.
o Duty free tea import from Sri Lanka and Bangladesh and India.
o Green tea market is growing.

THREATS
o
o
o
o
o
o
o
o
o

Strong competition in rural and urban areas

Internationally increasing tea prices
Political conditions in the country may be obstacle toexports
High inflation in the country can negatively affect thebrand
Strong marketing campaigns of Unilever and Tapal makes it extremely difficult to
counter-attack because of low budgets.
Facing against established brands names of Lipton, Tapal and Vital.
High import duties encourage smugglers of tea to grow.
The unstable rules and regulation of the government hinders the tea companies.
Due to climatic conditions, when the weather of Pakistan is mostly hot; consumers would
prefer soft drinks over tea.

Leadership

As far is leadership is concerned, he/she is expected to be able to follow the helicopter, tank, and
submarine approach i.e. be able to take a corporate, business and functional level approach when
the need arises while also having high IQ, EQ, & CQ levels to be able to properly utilize the
tools at his disposal.
He should be able to instill the employees to follow the laws and rules of the company and be a
charismatic personality. With the nature of the business being an FMCG, it would be beneficial
for the leader to be very robust, energetic, and creative and foster a culture of change and
innovation.
The employees should lead rather than follow which will be responsibility of the leader to instill
such characteristics within the company employees.
All in all, the leader should have personality type A rather than personality type B.
Using McGregor theory he should take the view of Y as he needs to empower the employees to
work themselves rather than order them.