Question
W r i t e a 1 5 0 - 2 0 o words commentary on business & operations strategy of the El Tortillero business
W r i t e a 1 5 0 - 2 0 o words commentary on business & operations strategy of the "El Tortillero" business plan. should present arguments to describe if the strategy and strategy development process is correct? and how it can be further improved.
Introduction
The purpose of The Tortilla maker Mexican Food Corporation is the production, marketing, and distribution of products such as corn tortilla chips, chips, toasted tortillas, using a network of customers loyal to its effects, including restaurants, supermarkets, and supplier companies.
"El Tortillero'' operates as an independent factory. Located in Coquitlam, B.C. The factory has two warehouses, one for manufacturing and one for storage. It has distributions throughout the greaterVancouverarea.ItoffersproductsderivedfromcornthatcansignificantlysatisfytheLatin market present in B.C. The owners of the companies are Mexican, so they have extensive knowledge of the Latin diet, offering products derived from corn that are present at any time of the day at a table of people of Latin origin. In addition, the owners have experience in business administration and international business, which makes them carry out positive strategies within the market. The industrialized machinery used to manufacture the products is state-of-the-art, which gives them maximum efficiency when it comes to taking ordersefficiently.
Thisprojectaimstoanalyzethestrengths,opportunities,andweaknessesthatthefoodcorporation ''El Tortillero''faces.
Problem Statement
Companies that are new to the market must make their way by becoming competent by offering hallmarks that differentiate them from their direct competitors. Various internal and external factors influence the development of the company. The most important thing here is identifying the elements and having a supportive response to a future problem. In addition, the positive factors must be considered to continue improving and have sustainability within the market, such as in its sales. They are considering customer satisfaction as the most important. As an example, we will take "El Tortillero."
General objectives
- Analyzetheoperationof"ElTortillero"followingthestandardsoftheCanadianenvironmentto understand its market position, procedures, andoperation.
- Beingabletounderstandtheirstrategiesandseeiftheyareinlinewithwhatthemarketcurrently demands.
Exploring Canadian Business
To develop the plan proposal for "El Tortillero," the team members have worked on this business proposal by researching why corn tortillas production and their derivatives distribution willbeagoodbusinessinCanada,consideringthatthemarketforcorntortilla-basedfoodproducts is in growing demand.
To have this plan well structured, some factors needed to be considered, such as the challenges and opportunities, the business strategy, and the business structure. First, the external environment of business needs to be analyzed since it comprises significant elements that straightforwardly and by implication sway the climate of an association or business.
As part of the General Environment are the economic forces, technological forces, competitive forces, societal forces, and political forces. "El Tortillero" has worked on analyzing the panorama in each of these forces, where the following information was collected:
Economic Forces. In Canada, the economy is steady, so it doesn't address an incredible gamble to wander into tortilla products. Also, it is essential to specify that tortillas and their derivatives are not costly products and will be inside the compass of most customers. It will be a business that will not have to deal with multiple currencies, focusing on the British Columbia population.
Technological forces. The company gets the most recent innovation for the development ofcorntortillas.Also,thecompanyfostersprogrammingwhichwillpermitittohaveadatasetof the clients andproviders.
Competitionforces.Competition ismaybeperhapsthemainoutsidepowerforbusiness.It can drive business methodology, influence business value, and determine where and how businessescontend.SeventonsoftortillasareproduceddailyinBC,whichgivesusanideaof
howhighconsumptionisandthateventhoughthereisalotofcompetition,themarketisstilllarge and with areas of opportunity. Nevertheless, "El Tortillero" has investigated their competitors. Some of them are direct El Comal Mexican food, Tortillas Santa Rosa, and Doa Elsita. On the other hand, the indirect ones are all the brands from the United States of America and Mexico, among them Los Guerrero, Tortillas mi pueblo, and Tortillas MilpaReal.
Societal forces. This force is often larger than considered. It represents the public, the media, bloggers, and others all having a voice and opinion. Therefore, they can complain about the product on the internet damaging a company's reputation or do completely the opposite and makethecompanygainagoodreputationattractmorecustomers.Inthisforce,demographicsplay a role too. The Latin population in BC is increasing, and as part of their diet, they consume corn tortilla and its derivatives daily. In the new ten years, the number of inhabitants in BC has embraced corn tortillas and their derivatives as a feature of their eatingroutine.
Political forces. It is about how Government can influence the business, which is positive duetotheCanadianGovernmentencouragingtheconsumptionofnaturalproducts.Anotherfactor that is beneficiate here is The United States-Mexico-Canada Agreement (USMCA)eliminated tariffs on corn flourinputs.
Besides,theGeneralEnvironmentisthespecificsphereofenvironmentexplicitorclimate inside which the association straightforwardly works. Some of these are creditors, distributors, employees, suppliers, customers, Government, and the localpublic.
Most of these factors have already been considered in the "El Tortillero" business plan. Found nine potential customers, most of them are restaurants in BC. Already has two potential suppliers from Mxico and the United States of America, and as mentioned before, have tariff preference because of the USMCA. Distribution is another very important factor for "El
Tortillero." The idea is to distribute in supermarkets, restaurants, and convenience stores in differentpresentationsizesdependingonthemarketandcustomerneeds.Employeesareessential in every organization. To take control and organization of it, "El Tortillero" has implemented a functional organization chart with the different jobs and the activities and responsibilities to be covered by eachemployee.
The Employee-Employer Relationship
This company aims to grow its product exponentially according to market behavior. The company has a formal employee employment relationship. The relationship and employee are handled as follows workers who work part-time and others full time, complying with Canadian
labor standards. As the name implies, the standard employment relationship (or SER) is characterizedbyregular,full-timehoursatasingleemployeroveralongtime.Employeesworking underanSERreceiveperiodicpayraises,andtheiremployersusuallyprovidehealthbenefitsand pension plans. There are government regulations governing the relationship between the parties, and the social security system makes sure that all employees are protected should their employmentendforwhateverreason.Workers'compensationbenefitsareavailableforemployees laid off due to lack of work or who suffer an injury at work. Workers' compensation and unemployment benefits are financed by employercontributions.
Employees are recruited based on their academic background and previous experience. In this case, the company recruits employees who perform the different parts of their studies and previous experiences. When you know the area, it allows the excellent handling of tools by the employees, and they can carry out analyzes and projections in a professional manner, achieving practical work. Furthermore, the business plan of "El Tortillero" does not mention employee training, and this would be an additional plus when highly trained professionals work there. They are a contribution to providing training to their peers if they do not have the necessary resources to hire an external company to carry out the activity.
El Tortillero's business plan briefly discusses the relationship between employee and employer,andthereisnoinductionmanual.Havingthistypeofmanualisoftheutmostimportance since, in this way, employers will know the rules within the company and what the employer expects from their employees. It is essential to know when a person is newly hired. It is also important to emphasize that it does not just have an induction manual. Persons responsible for preparing it should update it under changes in laws overtime.
A Neoclassical perspective is applied to the business, where the company plays a competitive role in its business area, and there is no government or union influence within the
company.Therefore,itisautonomousandisregulatedaccordingtothesupply-demandmarket. Eventhoughunionsarenotmandatorywithinacompany,havingonehasmultiplebenefits. Unionsprovidebenefitstocompanyworkersbecausetheycontributetojobsecurity, generateeconomicadvantages,andprovidelegalsupportforunionmembers.First,theunionsfulfill the role of reaching agreements between employees and workers; The primary goalisto promoteemploymentsecuritybyprotectingemployees'guaranteesandseekingnewopportunitiesto improve working conditions. Secondly, unions seek to generate economic benefitsforworkerstorecognizetheirhardworkthroughmonetarybonuses.AccordingtoLester(2015),thestaff appreciatestheguaranteesofextrapayment;managementbecomespersonalinteractionwithstaff, jobpolicies,andworkersettingsmorerewarding.Finally,legalsupportisheretoprotectpeople whobelongtounions;forexample,ifthecompanyincursunjustifieddismissals,theunionspresent themselves to mediate with the company without reaching an agreement; theassociation,through attorneys, represents injured workers. By promoting the dissemination ofworkers' rights,unionswillfunctiononthepoint-offtriggersoflegalcases(Stagnaro,2016).Duetothosementioned above, this organization watches over the safety and well-being of the people who work inthe
company.
In conclusion, the relationship between employer and employee within "El Tortillero" isa standardwhereCanadian legalnormsgovernacontract.As agroup,wehavetheideathatifthere is an inductive manual within the company, the relationship between employee and employer is more fluid, also considering the benefits that employees would have if there were unions within thecompany.
Managing the Workforce
Havingalistofcollaboratorscommittedtotheirwork,proudofthecompanytowhichthey belong, and with growth, aspirations are what every manager or director wishes to have in their ranks;Justasitisforthecompany'scase,''ElTortillero''.However,thebusinessplanpresentedby this company is most likely placed along with the information about the people who work in the company or how the company's organization chart would be made up. Therefore, according to what was studied during this period, the following comments areshared.
Startingwiththemanagersattheheadofthecompany,thefoundingpartnersGustavoand Rode, who share the company's shares equally with different roles. Both are in the category of Mintzberg exercising functions of decision-makers, who can decide to start new projects such as launching a new product or changing the company's name. They also play the role of resource allocators. In Gustavo's case, as purchasing and production manager, he will have the task of negotiating the prices of supplies, delivery dates, and more with suppliers. For its part, Rode is more focused on the financial position with business plans financial and accounting operations, which to be successful, must be fed by the communication connection withthe different areas of the company to have information in the decision making in different time frames. These areas are linked to several departments such as sales and production planning, so it is recommended to schedule constant meetings to determine the number of products produced to supply allsales.
Movingontothesecondquadrantoftheorganization,wherethesalesandhumanresources managers are located, the profile of the positions held by each of these two people is noteworthy. Although marketing and sales are interconnected, wethink it would be more efficient to have a person who focuses directly on the marketing area to develop the company's image, overseeing tasks such as negotiating with packaging suppliers, advertising campaigns, internal communication, and promotional budget for sales. Sales management is a position in which the person in charge must be a negotiator who manages to negotiate inside and outside the company, as identified by Mintzberg in manager roles. On the other hand, the human resources manager should be a person who knows how to play the role of disturbance handler well, since being a factory, there may be conflicts between employees that he mustresolve.
In the third and last quadrant, where the operational departments such as packers, mechanical operators, and logistics are located, the recommendation is to work under the Henry Fayolsystem,whichrequiresallmanagerstoworkinharmonyandasateam.Thisisrecommended
since the operational areas usually have more conflicts. However, if you have the right managers, you can get many positive indicators in the production warehouses, so having people with experience is the best decision to cover these positions.
Business Strategy
"El Tortillero'' plans to provide continued customer satisfaction by maintaining value- driven and positive work attitude employees to become the leading tortilla factory supplier in the market today. As an organization which strives to do the best, we are constantly seeking ways to do things even better. The company has high quality, great taste, and nutrition for all eating occasions whether at home, in restaurants or on the go.
Competitive advantage
"ElTortillero"willsetitselfapartfromitscompetitorsbyshowinggreatqualityandoffers, also committed to growing the customized services. It leverages the scale and agility to unleash the full power of the company and optimize consumer-driven productplatforms.
Technological Trends
- There is an increased demand for sustainable, environmentally friendly packaging in the production.
- Online (app-based) booking a pickup and deliverysystem.
- Thiscorporationnowisfocusedonreducingwastagetominimizeenvironmentalfootprint and savecosts.
Government Regulation
The Food and Drug Act establishes guidelines for food labeling, advertising, and claims,
material.
Health Canada oversees establishing nutritional quality and safety standards for all foods
with the FDR.
The Canadian Food Inspection Agency (CFIA) oversees implementing the FDA's and
concerns, but it is also in charge of enforcing non-health and safety laws such as packaging, labeling, and advertising.
The Market
It will be more vital than ever for tortilla manufacturing businesses to boost their transparencygametofulfillcustomerdemand.Consumerdesireforatransparentsupplychainand
product label has never been stronger, from clean label ingredients to ethical and responsible ingredient sourcing.
The information on the number, size and location of establishments can be used to assess the existing level of competition within the industry in your province/territory.
https://www.ic.gc.ca/app/scr/app/cis/businesses- entreprises/31183;jsessionid=0001sxcTpOf5nIyoIsa_ICnvBjw:-2523J?wbdisable=true
Financial statements, sales and marketing contacts, major rivals, and firmographic insights are included for Bakeries and Tortilla Manufacturing enterprises in Canada. Business information
about Bakeries and Tortilla Manufacturing from reputable sources to help you better understand company performance, growth prospects, and competitive challenges.
New entrants can enter the food manufacturing industry as a small start-up business and increase its client base throughout time by getting new referrals and building its reputation in thefield. Existing firms will have an advantage because its manpower may be fullyutilized,
productive and profitable as the manpower resources are equivalent to the expected workload and customer orders.
Capital Requirement- (Low Impact) Required capital to start a tortilla manufacturing is
reasonable or at a moderate level, thus, this is minimally restrictive for new entrants.
Switching Cost- (Moderate Impact) There is no monetary cost to switching considering that this is a service that is usually availed on a one-time basis. As such, choosing a different provider will cause on loss on the part of the customer. However, switching has a significant
psychological cost after a consumer is happy with a cleaning service provider's service and the latter has gained the customer's confidence and loyalty because of their quality of service.
SWOT Analysis
Strength
| Opportunity
|
Weakness
| Threats
|
VRIO Model
Value | "El Tortillero" will provide value to its clients by assuring them of their safety andprotectionvia the flavor and quality of itsproducts. Especially given the severity of the pandemic and the rapid spread of the fatal virus, it is critical for restaurants and other businesses to ensure that all safety requirements are met on a professional level. |
Rareness | Pricing is competitive, but the key selling point will be the distribution quality and coverage. Being able to deliver personalized orders and acting as a supplier would fulfill the market's unmet needs. |
Imitability | Competition is likely to copy this feature; but the ability to implement it correctly and professionally will be the decisive element in its success. |
Organization | "El Tortillero" will be structured such that labor resources are well-equipped, trained, and empowered to complete production in a professional and standardized manner, ensuring the highest quality of service and commitments to each client. |
Business Structure
The organizational structure is how the functions and responsibilities of each member within a company are assigned to achieve the proposed objectives.
Each company works differently, and each one must adopt a different organizational structure that helps it achieve its goals and objectives. To have this well-structured plan, some factors must be considered, such as the environment, whether you want it to be part of the government or not, among others. First, it is necessary to analyze the type of organization that is the most beneficial for the company since this directly and implicitly affects the productivity or evolution of the company.
"El Tortillero" has worked on analyzing the panorama in each of these forces:
Modern structure. The fact that the modern system allows the company to make decisions more
quickly and effectively as it is flat. Making the employee feel more motivated to grow within the company and be able to generate ideas.
Fluid. Allowing to adapt to the changes that may arise, adapt to dynamic environments such as the
climate of Canada in long seasons such as rains
Integrated. "El Tortillero''has teams that can be multifunctional and share information amongthe othergroups.Bydoingthis,youcanreachthepointwheretheunitscanbeself-managedandc r e a t e a team alliance for thecompany.
Global. The tortilla is food that, although it is of Mexican origin, is a food that has managed to reach various parts of the world, so the tortilla can grow even more and be more competitive, generating new markets and making more publicity about its brands, such as networking with different restaurants or more points of sale.
"TheTortillero''isaprivatecompany.Thatisinconstantinteractionwithitsenvironment, this due to its nature of being an open system since it is in continuous exchange with the environment.
Functional specialization. It is maintained in this company since it refers to the divisionof laborintotasks.Thisdivisionallowstheemployeenotonlytobefocusedonasinglearea,instead of a narrow reading but also that the employees of this company also carry out a wide range of functions in this way of being able to participate and propose ideas, and with the time have an autonomous team.
"El Tortillero" is a company with a centralized character in its organizational structure since in decision-making, it must have the participation of lower levels as key employees.
In this company, we can visualize a hierarchical organization. Even when lower-level involvementsupportsdecision-making,thebusinessownersstillmakethemostcriticaldecisions. Thecompanyisalsorule-orientedbecauseitsmechanisticnature,thatis,ofacharacterthatcannot bechanged,isadailyrepetitiveprocess,inwhichcertainstandardsmustbemet,aswellaskeeping specific rules about quantities, times and processes for the elaboration of theproduct.
Technological and Competitive forces of "ElTortillero"
The company opened before technological advancement, so all work is done manually, and there are no technical means for making work more efficient. The business was getting more popularandhavingtroubleaccommodatingworkmanually."ElTortillero"facedmanychallenges because of a lack of technology. The main difficulties were providing accurate performance data from disparate systems that previously did not communicate with oneanother.
There was also a problem with the operational performance because the functional team couldnottrackday-to-dayperformanceimprovementssincecriticalinformationwasnotavailable. The main challenge was manually restricting access to crucial data matrices (Industrial Software Solutions, 2020). These were the three main challenges that the La tortilla factory faced, and they wanted to upgrade their work level and efficiency of tasks. La tortilla knows their challenges and sets up goals that they want to accomplish. The objectives were to reduce the cost of the overall operatingsystem,theemployeesshouldhaveaccesstoreal-timedataontime,andeffectivelylink all disparate systems within a single operations platform. The company knew its challenges and setupthemaingoals.Forthecompany'sdevelopmentandtomakethingseasyfortheemployees, they took a step-in technology and started using Wonderware software. This software helps La tortilla with their records and saving the day-to-day data, and there was no wait for receiving certain information. AVEVA company provides this software, a multinational information technologyconsultingcompany.UsingthissoftwarehelpedLatortillaimproveitsqualityof
products. There has been a 5% yield improvement, and data is available on fingerprints. They quickly react to specific problems and data (Industrial Software Solutions, 2020).
Competitive forces
"El Tortillero" is a progressing company and has been well known for the past years. This growth also created some competitors, and most of the competitors are from direct forces. Many othertortillacompaniesaregivingcompetitiontoLatortilla.Thecompanyhasrevenueof$48.7M per year, and revenue per employee is $297,000. La tortilla has 164 employees, and they grew theiremployeecountby4%lastyear(Growjo,n.d.).Asweanalyzethecompany'srevenue,many competitors like black sheep food, vitality bowls, Luke's local, Nissan food co., Coco Libre, etc., are giving tough competition to La tortilla. Nissan food co. has revenue of 550.4M with 1456 employees and a growth of 10% in employee growth (Growjo, n.d.). As a result, some tortilla companies are doing far better than "El Tortillero" and giving tough competition to thecompany.
On the other hand, some companies are still struggling and trying to do better. "El Tortillero" still has a long journey and needs some more advancement to be better than their competitors. Considering technical and competitive forces, La tortilla is approaching a new way of growth by technical methods and trying to grow their revenue to stay longer in the market.
Confronting Change
Changing workplaces in Canada are occurring rapidly, which has rarely been seen before. New technologies, combined with millions of millennials into the workforce, mean change is inevitable. Changes surrounding "El Tortillero" are diverse and include the following.
Societal changes, the tortilla maker in the future will have to adapt to the new social demands such as making gluten-free tortillas and integrating it into its variety of products tooffer inthemarket.Todaythestyleoffoodismoretendingtobehealthyanditisnecessaryasacompany to adapt to this change, to continue evolving together withsociety.
Economic changes. "The Tortillero" is growing exponentially due to its active income, whichletsusknowthatitsconsumerscontinuetopreferitsproducts,bearinginmindthatitspoint of approach is to expand the clientportfolio.
Technological Change, the like purchase of a machine for the elaboration of gluten-free productsthatsupportsmakingthehealthytortillastyletotakeittothepointsofsale.Thecreation of an app for orders considers that cell phones are always morepractical.
Change Political, "The Torillero'' is based on existing policies in Canada today, so it complies with the standards established by the Canadian government.
GlobalChange,beingthetortillaaproductforsaleinvariouspartsoftheworld,thetortilla makerwillbereadytofacethechallengesofexportinghisproducttootherregionsofthecountry and the world, to continue taking his product to differentplaces,
CompetitiveChange,ithasvariouscompetitorssuchastortillaSantaRosa,theseproviders offerthesameproducts,someofthemhave.Moredevelopmenttimethan"TheTortillero".Tobe competitive, you must be more productive in less time, position the brand in restaurants by advertising in consumer restaurants so that the public is aware of thebrand.
The company must be focused on the long term for the development, since although it is in a stage of development, this being one of the longest and most important processes, this is the watershed of the new challenges and processes to be implemented, it is the place where all your goals and objectives are reflected at the same time in the "El Tortillero'' company. The company islearningandgrowing,soitfocusesondouble-looplearning.Thecompanyanalyzestheproblem and tries to solve it by attacking the root problem, promoting innovation, and even modifying policies if necessary to stop. In this way, overcome the obstacles that arise. One of the most relevant points to take care of are the connectors and the vendors since these are a fundamental part of the development of ourcompany.
Conclusion
Inconclusion,takingadvantageofthesignificantgrowththattheLatinpopulationhasbeen experiencing in British Columbia, the company "El Tortillero" enters the market for products derived from corn such as tortilla chips and tortillas, which are part of the daily diet of many people. Using its network of clients affected by this product, it seeks to position itself in restaurants,supermarkets,andconveniencestores.Attheheadofthecompanyarepeopleprepared with many years in the market for products derived from corn, which bring excellent knowledge tothecompany.Theyalsohavestate-of-the-artmachinery,allowingthemtobemorecompetitive in the market against the competition. However, being a recently opened company, it must make its way to offering signs that differentiate it from current circulatingcompanies.
On the other hand, they are taking customer satisfaction as the most important thing considering that this market is growing, and they want to position themselves as the best option. With a solid and motivating attitude, "El Tortillero" keeps his collaborators committed to their work, becoming another competitive advantage since it generates many savings for the company intermsofstaffturnover."ElTortillero"ismakingabigbettogrowbyofferingqualitygambling products from the beginning of its production to the customers' table, making it a strong business in BritishColumbia.
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