Paper Example Undergraduate 744 words

Sal Is an Important Player

Last reviewed: January 14, 2012 ~4 min read
Abstract

SAL is an important player within the global market, selling soy based cereal and soy cakes for both farmers as well as bakeries. Its business model is as such based on a diversification of its products in order to ensure reliable income from two different sources. The general structure of the firm is highly similar to that already revealed within the company.

SAL is an important player within the global market, selling soy-based cereal and soy cakes for both farmers as well as bakeries. Its business model is as such based on a diversification of its products in order to ensure reliable income from two differen sources.

Another notable element about the company is represented by the diversification of its business partners, namely its' retailers. SAL does not use a direct distribution system, but uses intermediaries. The company has developed various strategic partnerships with numerous retailers which purchase bulk product quantities from SAL and resell them to the final consumers.

The indirect distribution scheme allows the company to capitalize on the advantages and networks of the distributors, while also allowing it to reduce its operations and costs. Specifically, by not directly engaging in distribution, the company is required to consume fewer financial resources and invest less time in this activity, and is as such better able to focus on its primary operations.

Today, SAL strives to increase its presence within the markets it would be using the same products it already develops and would be increasing its market presence by accessing new global regions, as well as by ensuring a deeper penetration of the markets in which it is already present.

In other words, the organization strives to become the preferred choice for customers in various global regions. This desire, alongside with its commitments to create value and benefits for the stakeholders would represent the underlying principles in the company's new mission statement. In other words, in order to attain its current objectives, the organization needs to undergo several change processes and one major change is necessary at the level of its mission statement. In this light of events, the new mission statement at SAL would be as follows:

SAL Ltd. wishes to become the number one choice of customers across the globe. We work to make our clients happy and we continually develop and innovate our product lines. At SAL, we create and maintain a pleasant and competitive working environment, in which our employees are supported to professionally develop. Another part of our credo is that we believe in the community and we give back as much as we can to support the development of all of the communities in which we operate.

SAL Ltd. is currently aiming to increase its business operations and to subsequently generate additional revenues. In essence, the underlying scope is that of registering an increased profitability of the firm. Still, in order to attain this ultimate objective, it is necessary for the company to establish and accomplish several intermediary goals. These refer to the following:

Increasing the company's presence within the markets in which it already operates by 10 per cent

Generating presence in new markets by signing contracts with new retailing partners across the established countries

Increasing the overall sales volumes by 50 per cent throughout the next two years, from both additional sales in the present markets and new sales in the new markets

Increasing the turnover by 50 per cent and increasing profitability by 30 per cent, within the following two years.

In order to attain these objectives, SAL has to undergo an important process of change, which would be obvious at various organizational departments. At an overall level, it is necessary to redesign the company's structure so that it best suits the new objectives. Specifically, the new chart would be as follows:

The general structure of the firm is highly similar to that already revealed within the company. Additionally, at the first, second and fourth levels of management, no changes are incurred. Still, at the third level of management, an important change is introduced in the meaning that a new manager is created -- the Technical Manager. This new managerial position is necessary to be created as technology would come to play a more and more important role within SAL.

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PaperDue. (2012). Sal Is an Important Player. PaperDue. https://www.paperdue.com/essay/sal-is-an-important-player-48852

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