Highlights
Greens Foods was founded in 1995 and is based in Fulchester. Although a substantial company in the town it is actually family owned and has been since it was established. The company has three manufacturing sites and recorded turnover of £475 million in 2019-2020, making a profit of £25 million. Greens directly employs over 2000 staff and is well known in the UK for selling budget-priced ‘Fish and Chip’ ready-meals and other seafood products.
You have recently joined the company as an HR manager for one of the three manufacturing sites. Each site is a separate company or ‘strategic business unit’ and manufactures a distinct product line. The financial results for the company group are good but there are several issues that concern the Board of Directors. As a new member of the Senior Management Team (SMT) in the company you have been tasked with analysing the company situation and making recommendations as indicated below related to Human Resource Management.
Your initial investigations have caused you to question whether you have made the right career move as you have uncovered a number of problems and some worrying practices. While the company appears to be in a sound position, indeed as a food 9 manufacturer Greens thrived during the early COVID pandemic when many other companies struggled, there are nonetheless some worrying indicators which may threaten the company’s long term viability. Some arise from the overall company strategy, others from specific HR shortcomings.
The company is more or less profitable but has not historically had a reputation for paying very well. It has struggled to recruit staff to work in the factory, and to a lesser extent in warehouse roles. In the last ten years an increasing number of production vacancies (65% in 2019) have been taken by workers from Eastern Europe, partly the result of recruitment campaigns overseas. However, labour turnover for production workers is now relatively high at 55%. Clearly “BREXIT” may have a further impact on this in practice. The company has yet to make much use of automated production, believing up to now that the skills of the workforce in food preparation enhance the quality of the products. All production is based in the UK, and most raw materials are sourced in the UK (or offshore) too. The company had, historically, a strong ‘family’ tradition, often with several generations from the same family working together. Famously, recipes were for traditional local dishes, suggested by the employees themselves. Members of the owning family would often join the workers on the factory floor (even if not for very long!) and knew many of the employees by name. This sense of close-knit community has declined recently, some say to the detriment of the company.
The company is actively exploring sourcing fresh food products eg. Seafood from outside the European Union, eg. Asia, Africa. Some of the product lines perform well, some less so. Some budget price ‘ready meals’ such as ‘fish pie’ which have been popular with older consumers have seen sales fall. Chinese and Indian-based recipes for ethnic and speciality lines have seen sales double in the last three years. There is a relatively new vegetarian line of products which, although a departure from the seafood-based range, use locally sourced ingredients and have seen a 50% increase in sales over the last two years. Old favourites like fish n’chips continue to sell steadily.
Recently the company has been approached by Marks & Spencer with a view to Greens making a new line of premium quality meals for the ‘Gastropub’ range. This would require Greens to invest significantly in new production facilities, or to re-allocate existing facilities to dedicated M&S production, as well as meeting very strict quality requirements. 10 Greens have only ever sold products under their own name up to now. M&S would also require an exclusivity deal that would mean that Greens could not make ownbranded goods for any other UK retailer.
The company has stayed in the town even though it could find cheaper workers elsewhere, because workers are loyal to the company due to the jobs it provides.
Over the years, the company has developed a reputation in the town for taking care of its employees and being a responsible corporate citizen. The manufacturing process used by the company does however produce a by-product that for years has flown into the town river. The by-product has been considered harmless but some people who live near the river have reported illnesses. The by-product does not currently violate any anti-pollution laws.
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