Introduction to Report
Identify a company in any industry of your choice and examine the structure of their operation and their strategies.
A systematic organization structure and effective leadership are two most important components of a company’s business operations and processes. Effective leaders bring all the team members together and allow them to work together so that it can achieve a common objective. Leadership style has a positive and huge impact on organizational structure. It enables the organization to create and manage its business activities effectively (Lasserre, 2017). It allows the firm to produce positive results. This report is emphasized on the evaluation of different company aspects of Bellamy’s Australia Organic Food Company. Bellamy’s Organic Food is a primary food and beverage organization in Australia. This paper discusses about the company’s structure and leadership style. Furthermore, it emphasizes on company’s strategies that it adopts in Australia and in other nations. In the last section, comments are made on structure and strategy of Bellamy’s Australia Company.
With the passage of time, the demand for organic food in Australia is increasing significantly. It can be analyzed by the fact that more farmers are making switch from conventional farming to organic farming. According to the report of IBIS World, the organic industry in the country is growing at a significant rate and it has been valued at $9.19 million. The figures indicate that the sector has grown by 17% in last three years (McCarthy, 2016). This growth is due to entrance of more farmers in this market. This is the fastest growing food sector in the country. The Australian organic food industry is coming from a small base. But still, the indications are emerging that this sector is seeing strong growth and it will quickly capture the United Kingdom and United States who are the leaders in $50 billion international organic industry. In Australia, there are various certified organic producers that are growing their operations at a rate of around 70% a year (McCarthy, 2016). The customers in this country are becoming very complex in their decision making regarding food and have better choices. Among them, organic food products are seen as necessity due to greater concern of consumers about the convenience, food safety, environment and inherently changed organisms.
The chosen organization i.e. Bellamy’s is one of the major players in organic food industry in Australia. Bellamy’s Australia is a leading food and beverage firm in Australia and it is the parent organization of Bellamy’s organic that is operating its business as the largest organic infant formula manufacturer in the country. Bellamy Group has started as Bellamy’s organic in Tasmania in the year 2003. In the year 2007, it was bought by Tasmanian Pure Foods that was a private business set up to make investment in and to develop Tasmanian agribusinesses and food. In the year 2014, it was named as Bellamy’s Australia (Bellamy’s Organic, 2018). Bellamy’s Organic is an organic baby food and infant formula producer. This organization is a subsidiary of Bellamy’s Australia. Currently, it offers its products and services in various nations like China, Australia, Malaysia, Vietnam, Singapore and New Zealand.
Industry and Company Description
Nowadays, every company has to develop a systematic structure to stay competitive in fierce competitive conditions. By developing this structure, the company is able to make clarity about its objectives and it focuses on that all the people in organization are aware about their roles and responsibilities at their workplace (Fairfield, 2016). The structure of a firm creates an effective flow of communication between top management and their junior level employees. It is very important for an organization to develop an organizational structure so that it can manage its tasks and responsibilities.
In order to survive in competitive business world, Bellamy’s Organic has created a systematic company’s structure which supports it to organize the jobs and responsibilities of its people. By looking at its business operations, it can be stated that Bellamy’s is following a divisional organizational structure as the company has its business activities in different locations like Hong-Kong, South-East Asia, Shanghai etc. In addition to this, the parent company has several subsidiaries so company has developed its structure accordingly (Lee, Kozlenkova, and Palmatier, 2015). Divisional structure is the type of company’s structure that is usually implemented by the large scale companies which has their business operations in different locations worldwide. It consists of many teams and workforces associated which focus on a single product category.
Bellamy’s Organic Company is running its business processes like a large-scale organization in Australia and other nations so this type of structure is the most appropriate structure for this company. This type of structure helps the company to divide a huge team into small teams. All of these teams of company are emphasized on the organization food production process of Bellamy’s. The above-diagram displays the all the divisions and subsidiaries of Bellamy’s and all of them are regulated by Bellamy’s Australia Limited (Lin, 2014). All the divisions are offering food products. Among them, Bellamy’s Organic (Hong Kong) and Bellamy’s Organic (South-East Asia) offer organic products. Bellamy’s Australia Limited has given all the duties and authorities to handle other subsidiaries of the company.
One of the major reasons behind adopting divisional organizational system is that it enables the Bellamy’s to focus on its organic food offering in several geographical areas. It works as a roadmap that assists the company to achieve its objectives. By using this, the company is able to create a system for communicating with its different divisions and levels. Furthermore, this structure describes the extent of control and allocation of authority. Till now, the company has spread its business in various locations like China, Australia, Malaysia, Vietnam, Singapore and New Zealand so use of other structure is not good option for this (Lee, Kozlenkova, and Palmatier, 2015). It helps the company to grow and expand its business as it speeds up the development of divisions.
Company’s Structure
Leadership style is a way to give direction, implement plans and motivate the people employed in an organization. The process of leadership includes establishing the mission and vision, sharing this with the staff so that they can attain this mutually. In an organization, it is very important to adopt effective leadership style to enhance the balance and coordination among its team members (Goleman, 2017). In its business processes, the leaders at Bellamy’s use democratic style of leadership which helps them to direct all the teammates efficiently. Democratic leadership is a leadership style in which a leader shares his/her decision making abilities with its followers by encouraging them to support the organization by giving their contribution.
By assessing the leadership and management process of Bellamy’s Organic, it can be said that this organization adopts democratic style of leadership as its leaders give equal opportunities to all the people who belong to different location and culture (Holten and Brenner, 2015). The staff at this firm has various competencies and skills to create responsible and talented workforce. Bellamy’s Organic has established a company culture which inspires the people to use their own skills, abilities and competencies to improve its performance.
In addition to this, this firm promotes a working environment that includes workforce diversity like a primary ingredient of organizational culture. By adopting democratic leadership style, the leaders at Bellamy’s engage all levels of management in process of decision making. It is a great motivational factor for the employees as they think that their organization involves them and take their opinion in company’s important decisions. Additionally, the company provides a safe and comfortable working environment to its employees (Genovese, 2017). The employees are actively engaged in producing organic baby foods for the company. Thus, it can be stated that Bellamy’s leadership style is emphasized on improving the team efforts so that company can approach its objectives.
In order to operate its operations effectively, Bellamy’s Organization has developed and implemented several strategies in Australian and other emerging markets (Goldman, Scott and Follman, 2015). The strategies adopted by the company helps it to achieve company’s objectives and competitive edge against other players in Australian organic food industry. The company changes its strategies and tactics according to its operations. Bellamy’s Organic has adopted several strategies and tactics that are stated below:
It is one of the major strategies of Bellamy’s Organic that it offers unique products to its customers and by using an effective value proposition. The organization is largest organic formula and baby food organization that offers over 40 products so that it can fulfill the needs of babies from their birth to 3 years. It is a pure organic business that only offers certified products. This is a brand that appeals both the heart and head. The core proposition of company is not a simple marketing line but it is truth that booms with all mothers everywhere i.e. “A Pure Start of Life”. The company is using this slogan in Chinese markets as well (Ford, 2017).
Leadership Style
Under its segmentation and target marketing strategy, the organization has chosen unique demographic market. It offers its products targeting the women aged 25 to 35 years and underlies the food product safety. The company has considered that over 70% of the mothers feed in first 6 months (Kruger, 2017). In the country, there is an increase in the middle class people so it is profitable for company to target them.
In addition to above, Bellamy’s Organic has adopted effective social media strategy so that it can approach a larger population in the country and worldwide. In the country, the company has developed a strong social media platform that assisted it to attain number one brand across various interfaces like Twitter, Youtube, Facebook, SEO and Internet.
The sustainable growth strategy of the company is to deliver the sustainable growth by leveraging from its objective of becoming a leader in organic food for babies cross Australia, South-East Asia and China so it creates a platform for penetrating to new and emerging markets, products and geographies (Wheelen, et al, 2017). The company has created a sustainable platform to attain long term growth. The company is using this strategy in overseas market as well.
Thus, Bellamy’s Organic develops and implements various impactful strategies which enable the organization to enhance its processes and achieve its goals. These are the major tactics which help the company to generate more revenues and profits in Australian and global organic food industry. With the help of these strategies, the company will be able to gain more competitive advantage over its rivals in the industry.
As mentioned above, the products of Bellamy’s Organic are designed to fulfill many touch-points for when parents need assistance. The company delivers its products by establishing a robust supply chain process. Considering the widespread operations and diverse locations of Bellamy’s, it can be said that division type of organizational structure is best suited for this because it is doing well in company’s operations. It helped the company to develop a systematic framework to define the roles and responsibilities of staff members (Cummings and Worley, 2014). Divisional company structure allows Bellamy’s to emphasize on its objectives through allocation of authority. It has enhanced the communication process and decision making within the company.
Looking at the increasing concern and demand for food safety, it is good and profitable for Bellamy’s Organic to offer unique products with unique proposition. It attracts the people who are very conscious for their babies’ health. This organization has used effective and efficient strategies which assist the organization to stay competitive in today’s business world. The products of company are focused on unique demographics that increase its customer base (Morschett, Schramm-Klein and Zentes, 2015). The company is using effective social media strategy so that it can reach to large population all over the world as a significant percentage of world population is actively using social media networks. Thus, the above structure and strategies enable Bellamy’s Organic to become largest organic food and infant formula producer in Australia.
Conclusion
In the limelight of above report, it can be concluded that Bellamy’s Organic Company is the largest organic food producer in Australia. The company has managed its operations and processes by using effective company’s structure and strategies. Bellamy’s is using division type of organization structure that assists the organization to manage the operations of its subsidiaries in different locations. Moreover, the company adopts democratic leadership style through which it motivates the people to engage in decision making process. To make a sustainable competitive advantage, the organization has adopted effective strategies that enhanced company’s operations and other business processes.
References
Bellamy’s Organic, (2018) Bellamy’s Organic: Organic Baby Formula, Food & Snacks, Available from https://www.bellamysorganic.com.au/. [Accessed on 31 May 2018].
Cummings, T.G. and Worley, C.G. (2014) Organization development and change, UK: Cengage learning.
Fairfield, K.D., (2016) Understanding functional and divisional organizational structure: A classroom exercise. Management Teaching Review, 1(4), pp.242-251.
Ford, S. (2017) China expert John Ho at Bellamy’s Australia helm, Available from https://www.theadvocate.com.au/story/4673066/china-expert-bellamys-leader/. [Accessed on 31 May 2018].
Genovese, M. (2017) The Presidential Dilemma: Revisiting Democratic Leadership in the American System. Routledge.
Goldman, E.F., Scott, A.R. and Follman, J.M. (2015) Organizational practices to develop strategic thinking. Journal of Strategy and Management, 8(2), pp.155-175.
Goleman, D. (2017) Leadership That Gets Results (Harvard Business Review Classics). Harvard Business Press.
Holten, A.L. and Brenner, S.O., (2015) Leadership style and the process of organizational change. Leadership & Organization Development Journal, 36(1), pp.2-16.
Kruger, C. (2017) The new strategy from Bellamy’s Australia boss Andrew Cohen: Let’s actually make something, Available from https://www.smh.com.au/business/the-new-strategy-from-bellamys-australia-boss-andrew-cohen-lets-actually-make-something-20170612-gwpqnl.html. [Accessed on 31 May 2018].
Lasserre, P., (2017) Global strategic management. Macmillan International Higher Education.
Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., (2015) Structural marketing: Using organizational structure to achieve marketing objectives. Journal of the Academy of Marketing Science, 43(1), pp.73-99.
Lin, L.H., (2014) Organizational structure and acculturation in acquisitions: Perspectives of congruence theory and task interdependence. Journal of Management, 40(7), pp.1831-1856.
McCarthy, M. (2016) Australia’s organic industry worth almost a billion dollars, as demand from high income earners soars, Available from https://www.abc.net.au/news/rural/2016-10-28/organic-industry-approaches-billion-dollars-as-demand-increases/7973834. [Accessed on 31 May 2018].
Morschett, D., Schramm-Klein, H., and Zentes, J. (2015) Strategic international management. UK: Springer.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., (2017) Strategic management and business policy. pearson.
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