Quality Analysis II / For Baber Makayla Only

Critical Analysis of Company of Del Monte Company

Student’s Name

Date: 9th May 2014

Introduction

Del Monte Company is a food processing company operating in various areas including cultivation, production and canning of Pineapple products (Liebenthal, R. 2006). In 1965, United States’ Del Monte Corporation was sold, making Del Monte branch hosted by countries such as Kenya change its name to Del Monte Royal after being acquired by two South African families who owned 60% of company shares (Wiggen, 2004). The company has existed to date.

One of the products of Del Monte Company is pineapple juice. Its ingredient constituents are; water, concentrated pineapple juice and Ascorbic acid. It’s packed with anti-oxidants- rich with vitamin C (Del Monte nutrition information, 2014). Wangwe (1995) was informed that, 34% of the Del Monte Company’s production was pineapple juice concentrated. This product is Certified through FAO and also the company is International Standards Organization (ISO) certified(ISO 9001:2008). To this end, pineapple juice products can be said to be of good quality as determined by United States products quality assurance and other international bodies charged with quality assurance duties.

This paper attempts to critically analyze Del Monte Company. Del Monte Company is a company located in Texas. The paper describes this company in relation one of its products, pineapple juice concentrates. The researcher also tries to describe Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis of the company, brokering viable grounds to make recommendations in respect to SWOT findings. This paper also gives recommendations, both on methods of implementing changes that are in deficient and on potential strategic alliance for company’s products’ quality improvements.

Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis

Strengths

The company has a very good brand that has benefited from Latin America’s growth( Del Monte Ltd report, 2014). It is able to capture customers attention and is appealing potential customer to purchase the product. Distribution and supply is effective ensuring those products are available in the market when needed thus maintain market equilibrium of supply and demand. In addition, it has been practicing regular advertisement which is key in ensuring that the company remains relevant in a competitive market.

Weaknesses

High priced products thus targeting small population of high income earners, leaving out large population of middle and low income earners. The packaging is limited small scale consumers because it is done in 1 litre or 11/2 litre packets. It therefore fails to address large scale consumers who would purchase in 5 litre package. The company has demotivated workers due to poor working conditions(Wiggen, 2004)

Opportunities

Large scale consumers to be targeted by introducing 5 litre packages of pineapple juice. Motivate workers through fair remuneration and other benefits depending on the individual’s performance.

Threats

Stiff competition from emerging companies such as `pick and Pearl company’, `minute maid’ and `Tropicana 3’ thus reducing its mark share.

A method of focusing organization’s attention on quality

The Del Monte Company has embraced outsourcing to avoid overloading its management on some areas such as security, transport and catering, leaving room for management to concentrate on core objectives of the company in order to increase quality of its products(William, 2008). Adherence to internationally set standards for quality assurance will further enable the company focus on the quality of its products (UNCTAD Commodity profile, 2012).

Elements of quality culture lacking and needed by Del Monte Company

Good working conditions for employees as brokered by Universal Declaration of Human Rights (1948). Good working environment enables workers package products free from contamination. This works well in promoting quality products of the company to meet International Standards of food safety brokered by Food and Agricultural Organization (FAO). Del Monte Company was accused by humanitarian organizations for poor working environment to the workers (East African Standard, 2000)

Customers

The company has benefited from various types of customers. These includes; wholesalers from local supermarkets, retailers from local shop owners and exporting to foreign countries and other partnered organizations such as the European Union that Kenya has trading relations with.

Recommendation on methods of implementing changes that are needed

Workers’ remuneration should be commensurate to functions of an individual and benefits accrue to the outstanding workers. Furthermore, specialization to be effected through division of labour determined solely by individual’s skills and expertise.

Recommendations on potential strategic alliances

Del Monte Company to partner with her immediate competitors such as `pick and pearl company’ and `minute maid’ for knowledge dissemination on internal management and production techniques to improve quality of their products.

References

Lloyd, N.(2002). Women Tell of Rape in Farms. Dar es Salaam: East African Standards.

Wangwe, M. (1995). Exporting Africa; Technology, Trade and Industrialization in Sub-saharan Africa. New York: United Nations University/ Routledge.

Wiggen,B.O.L. (2004). Responsibility in World Business, Managing harmful side-effects of corporate Activity. New York: United Nations University Press.

Williams,K.R. (2008). Management and Control of Quality, 7th edition. Thompson, Southwestern.

Williams, M (1994). Strategic Outsourcing Decisions. Fall: Information Systems Management.