Tegels Fresh Chicken Case Study

Companies are also coming up because of the opportunities associated with the demand for poultry products. The paper will focus on Tegel, a company in New Zealand that focus on poultry production, its marketing and finance, and strategic decisions on operations (Dolgui, Soldek & Zaikin, 2005). Tegel was incorporated in the 1961 and it is New Zealand’s leading producer in poultry. The company’s major operations include breeding, processing, hatching, sales, distribution, and marketing of poultry products domestically and to some international markets. The company offers a free range and a broad range of barn raised poultry products. Tegel stated its move to free-range poultry, stating that its growth via grocery increased to 225%, which outpaced a 63% benefit in the entire free-range market. Free-range was estimated to worth $55.

9 million of grocery in New Zealand, and now accounted for 12% of total poultry market share scan sales (Underhill, 2017). Domestically, Tegel supply its products to major supermarkets, processors, other retail outlets, hotels, fast food consumers, restaurants, and distributors. The company also exports a range of premium chicken products in the global market, such as Africa and parts of Asia, and thus promotes "Pure New Zealand Premium Chicken. Another issue facing the company is increased competition in the global markets. Increase in globalization has been facilitated by reduction in trade barriers. Tegel is not only the company that is introducing its poultry products in African and Asian markets, and is therefore facing challengers from domestic and international competitors. Through this, the company has been forced to produce high quality products that can thrive in the market even under stiff competition (Kidder, 2008).

The company has also been forced to offer its products at low prices so that the demand for its products in these nations increases. Employees of the company have also helped in marketing the products of the company. The company has friendly and knowledgeable staffs who offer unique selling experience that the company seeks. The way a company treat its employees determines what these workers will say outside the workplace. For example, an employee will talk ill of a company that does not practice ethical behaviours at workplace, and this will affect the company’s reputation, hence will not attract new clients (New South Wales, 1939). The total revenue obtained by Tegel in the financial year that ended 2017 was $614 million, which is 5.

In its prospectus, the company had projected sales of $581 million and a profit of $10 million, which means that the actual figures obtained were higher than its projections (Underhill, 2016). The profits obtained were because of the increasing population in the New Zealand and global markets, which led to an increase in demand of the poultry products. Affinity Equity Partners took the company public in April 2016, where the company estimated that it would raise as much as $344. 4 million in its first initial public offer in New Zealand (Underhill, 2016). The aim of going public was to spread the risk of ownership and to raise a lot of money that it could use to finance its operations, and expand its branches. The company should maintain the quality of its products in order to sustain itself from both the global and domestic markets, if not; it will collapse due to the stiff competition.

b) Location strategy Tegel Company has an estimate of 2300 employees who work for them in New Plymouth, Auckland, and Christchurch and processes more than 40 million birds per year (https://www. tegel. co. nz/). Tegel has abled to start its operations in Australia, Japan, Philippines, and other parts of Africa after carefully reviewing and analysing the market. Japanese market for instance, offered a good platform where the company could penetrate easily and do well. This is because there is political stability in the country and fluctuations in currencies do affect the operations of the business. In addition to this, Japanese do not tolerate corruption, and this favours Tegel. In Africa, on the other hand, has cheap labour, which makes it cheaper for the company to produce and market its products.

Tegel has good storage facility that can contain many products that are ready to be transported locally and exported to other nations. The company also has enough space that it uses to carry out its production. It packages its products in a manner that is appealing to its consumers. The company maintains high business relationship standards with both packaging and ingredients suppliers. It ensures that all the products received from its suppliers are inspected for quality before being processed. d) Quality management Quality management is a very important aspect that company should consider the quality of their products in order to remain competitive in the market. Countries such as New Zealand value the life of its citizens and have strict measures that ensure products are healthy for consumption.

Tegel operates in three areas in New Zealand, where all the production activities take place. These are Christchurch, New Plymouth, and Auckland, which are highly refined and programmed processing facilities (Kidder, 2008). They are fully accredited and audited by an independent body to meet the recognized global quality standards and food safety. The company engages in constant training to both the new and existing employees on quality management. The training involves equipment management and the process of production. Employees have to be trained on the use of a new technology to be used for production. Maintaining proper and accurate records of inventory is important for the company in determining the goods that were processed first and last. This is to help in reducing the time that the product takes in the store before being taken to the retailers.

It identifies areas that they can obtain cheap labour, reach the market easily, and access the raw materials with ease (Dolgui, Soldek & Zaikin, 2005). For the company to thrive in the global markets, it should first do market analysis and check if the country’s rules and regulations favour their operations. The company should consider political instability, corruption, availability of raw materials, and the currency used. The company should into the ways that it would solve the issue of language barrier should it establish itself in a given country. Finally, it should into the level of competition and analyse its chances of surviving in that market (New Zealand Poultry Board & New Zealand, 1937). co. ke/books?id=A8QzC6wE-KsC&pg=PA160&dq=Dolgui,+A.