ASSIGNMENT 2020 SEMESTER

SUBJECT CODE : MPO 601

SUBJECT TITLE : MANAGING PEOPLE IN ORGANISATION
LEVEL : MASTER’S LEVEL

STUDENT’S NAME : HDK RASHAN HINDURANGALA (MBA-20-31-504)

MATRIC NO. : M60105200131
PROGRAMME : MASTER OF BUSINESS ADMINISTRATION
ACADEMIC FACILITATOR : MR. SUNESH RODRIGO
LEARNING CENTRE : CAMBRIDGE COLLEGE COLOMBO

INSTRUCTIONS TO STUDENT
1) All Questions must be answered.
2) Plagiarism in all forms is forbidden. Students who submit plagiarized assignment will be
penalized.
3) This assignment carries a 60% weightage toward final grade.
4) The submission date for this assignment is ON or BEFORE The 1st November 2020.

DECLARATION BY STUDENT
I certify that this assignment is my own work and is in my own words. All sources have been
acknowledged and the content has not been previously submitted for assessment to Asia e
University or elsewhere. I also confirm that I have kept a copy of this assignment.

Signed:

i
 ASSIGNMENT SUBMISSION FORM

Student Name : Rashan Hindurangala (MBA-20-31-504)

Metric No : M60105200131
NIC : 872250611V

Module Code & title : MANAGING PEOPLE IN ORGANIZATION – MPO601

Assignment number & description : ASSIGNMENT 1- MANAGING PEOPLE IN ORGANIZATION

Due Date : 01st November 2020

Date Submitted : 01st November 2020

Received By :

Authorized Signature :

ii
 CONTENTS

ANSWER- TASK ONE ........................................................................................................ 1

1.1: Introduction to Country Style Food (Pvt) Ltd ............................................................. 1
1.2: Present Relationship Between HRM and Business Strategy ....................................... 1
1.3: Business Strategies of The Company .......................................................................... 2
1.4: HRM Strategies and HRM Practices Of The Company ............................................... 3
1.5: Expected HRM Outcomes........................................................................................... 4
1.6: Expected Behaviour Outcomes ................................................................................... 4
1.7: Expected Performance Outcomes ................................................................................ 5
1.8: Expected Financial Performance ................................................................................. 5

ANSWER – TASK TWO ...................................................................................................... 6

2.1: Human Resource Planning .......................................................................................... 6
2.2: Importance of HR Planning ........................................................................................ 6
2.3: Skill Gap Analysis ...................................................................................................... 7

ANSWER – TASK THREE ................................................................................................ 10

3.1: Organizational Culture .............................................................................................. 10
3.2: Culture of the Country Style (Pvt) Ltd ...................................................................... 10
3.3: The High-Performance Culture ................................................................................. 11
3.4: How to create high performance culture .................................................................... 12
3.5: Challenges to implement high performance culture ................................................... 13
3.6: Way to overcome challenges..................................................................................... 13

REFERENCES ................................................................................................................... 14

ANNEX A: DETAIL DESCRIPTION OF COUNTRY STYLE FOOD (PVT) LTD ........... 15

ANNEX B: ANSOFF’S MATRIX FOR GROWTH STRATEGY ...................................... 19
ANNEX C : PORTER’S GENERIC STRATEGY MODEL ................................................ 20
ANNEX D: BUSINESS STRATEGIES .............................................................................. 21
ANNEX E: HRM STRATEGIES ........................................................................................ 22
ANNEX F: CULTURAL WEB OF SMAK ......................................................................... 24

iii
 TABLE OF FIGURES

Figure 1: Present Relationship between HR and Business Strategy of Country Style Food ... 1
Figure 2: Suggested Ideal Relationship Between HR and Business Strategies ....................... 2
Figure 3: How to do Job task analysis (SHRM, 2014)........................................................... 7
Figure 4: Scoring System to evaluate skills of employees ..................................................... 8
Figure 5: Example of feedback form .................................................................................... 9
Figure 6: the competing values framework of Cameron & Quinn ....................................... 11

TABLE OF TABLES

Table 1: Business Strategies ................................................................................................. 2

Table 2: HRM Strategies and HRM Practices ....................................................................... 3

iv
To - S.D Alahakoon - Director of Country Style foods (Pvt) Ltd
D.W Kumaranayake - Director of Country Style foods (Pvt) Ltd
W.D Alahakoon - Director of Country Style foods (Pvt) Ltd

From- HDK Rashan Hindurangala - HR Manager Country Style foods (Pvt) Ltd

Subject – Managing People In Organsation

Date - 31st October 2020

Executive Summary
Country Style Food (Pvt) Ltd started its journey in Sri Lanka in 1981 to manufacture and
market food product under the brand SMAK to meet the requirements of Sri Lankan. SMAK
is a Sri Lankan brand and one of the market leaders in the fruit drink industry in Sri Lanka. It
commenced from a family business under the three joint managing directors S.D Alahakoon,
D.W Kumaranayake and W.D Alahakoon. SMAK grown from strength to strength and held
monopoly of fruit drinks industry in Sri Lanka for considerable period of time.

SMAK uses only locally grown fruits and annually approximately 1.5 million kgs which values
about Rs. 53 million purchased by SMAK from local farmers. SMAK has various products
range from 190ml glass bottles, tetra pack and PET bottles with various fruits which enjoyed
by millions both young and old. SMAK awarded with the SLS certification and as guarantee
for the safety and the quality of the products SMAK awarded with International standardization
certificates ISO 22000, Hazard Analysis and Critical Control Points (HACCP) and Good
Manufacturing Practices (GMP) by the Sri Lanka Standards Institution (SLSI).

Thus, being the market leader in the fruit drink industry, the company is not performing well
in this segment due to lack of interest and lack of differentiations of products. Hence it is vital
for SMAK to improve its product portfolio on the mentioned aspects to serve these segments
effectively, which will ultimately help company to improve its overall market share by
effectively combatting the competitors. Further, due to the absence of the proper HRM
Strategies caused to increase staff turnover, decrease staff performance and demotivate
employees which create huge skill gap while reaching new strategies. Therefore, the
requirement of in lining HRM Strategies with business strategies arise within the organization.

v
 Task 1

The lack of alignment between of Business strategies and HRM strategies is a modern day
corporate dilemma. As the HR manager of your organisation, explain what steps should be
taken to ensure the aforementioned challenge can be addressed?

Use at least one core theory and three examples in your evaluation.

ANSWER- TASK ONE

1.1: Introduction to Country Style Food (Pvt) Ltd

Country Style Food (Pvt) Ltd started its journey in Sri Lanka in 1981 to manufacture and
market food product under the brand SMAK to meet the requirements of Sri Lankan. Country
Style Food (Pvt) Ltd commenced from a family business. The company currently occupy over
500 employees under the directors who are expertise on their field. From 1981 to 2019 SMAK
sales has increased Rs. 01 million to Rs. 600 million and at presents SMAK generated over Rs.
600 million sales annually. SMAK holding 48% of market share in market for fruit drinks.
Detail description of the company mentioned in Annex ‘A’.

1.2: Present Relationship Between HRM and Business Strategy

Country Style Food (Pvt) Ltd is a family business and all key decisions are directly taken by
three joint directors. Though there is board of management, influence of directors is in its
highest level, when taking key decisions. However, directors get feedbacks from the board of
management when required. In the above present context of the organization, relationship
between HRM and Business Strategies is “Dialogues” as per the Torrington et al. (2008).
(Figure 1).

HR Strategy Dialogues Business Strategy

Figure 1: Present Relationship between HR and Business Strategy of Country Style Food

MBA-20-31-504 Page 1
Directors directly influence to HRM functions which has direct bearing to overall HRM
Strategy of the organization such as recruitment, promotions and appointment selecting and
priority will be given to family members and close relations without considering the
performance.

Further, HRM Strategies of the organization more focus towards the training and development
and HRM department mainly engaged with the same as per directives of the directors. The
above decisions of the organization created huge skill gap within the organization and it leads
to demotivate employees as well. Therefore, company identified the requirement of ideal
relationship between HRM and Business strategies to maximize the financial performance and
move into “Concerted Two Way” relationship as per the Torrington et al. (2008) in the future
to reach organizational goals. (Figure 2).

HR Strategy Concerted Two-Way Business Strategy

Figure 2: Suggested Ideal Relationship Between HR and Business Strategies

1.3: Business Strategies of The Company

Based on the Ansoff’s matrix and Porter’s Generic strategy model stipulated in Annex ‘B’&‘C’
following business strategies are identified by the company which is planned to achieve in next
few years and the same strategies are briefly discussed in Annex ‘D’.

Table 1: Business Strategies

MBA-20-31-504 Page 2
1.4: HRM Strategies and HRM Practices Of The Company

David Guest model (1997) is used to align the business strategies and HRM strategies of the
company and following are the HRM strategies identified for the same. The HRM strategies
are briefly discussed in Annex ‘E’. Further related HRM practices identified by the HRM
department mentioned against the HRM Strategies in following table.
HRM Strategy Related HRM Practices
Strengthen all departments to enhance the Develop employees
efficiency and effectiveness of employees  Design and implementing on the job L&D
through comprehensive learning and programmes for bottom level employees.
development programmes  Job specialized training programme for
supervisory level and management level.
Maximise the performance of employees Manage workforce strategy
through talent spotting.  Review the talents of employees through
skill Metrix
Recruiting new employees
 Source talents within the departments
Establishing new department for new Recruiting new employees
plantations.  Source talents within the company for
management level.
 Hire bottom level employees within the
geographical areas of the plantation.
Open door policy to enhance the Manage Existing Employees
coordination between top level and bottom  Introduced new online platform to forward
level instant feedbacks and complains which allow
each levels of employees to easily interact
with top level.
Performance based appraisal for rewards and Manage Existing Employees
promotions  Performance based 3600 appraisal system
need to be introduced to the company and
appraisal is to be done twice in a year. To
award the promotions and rewards the
appraisal is to be considered.

Table 2: HRM Strategies and HRM Practices

In addition to the above with present Covid-19 pandemic situation monthly review meeting
need to be arrange through online platforms. Further, in the production lines only 1/3of
employees should be reported for their jobs for one week period on rotation basis.
Accommodation for them provided within the company since manufacturing plants are
operating 24 hours.

MBA-20-31-504 Page 3
1.5: Expected HRM Outcomes
The above HRM practices will lead to get following HRM outcomes.
 Skilled and engaged workforce through proper L&D programmes.
 Quality output from competent employees.
 Flexible workforce which identified through skill Metrix to faced contingency situation
such as Covid-19 pandemic situation
 Maximised the efficiency and effectiveness of the performance of employees through
performance based appraisal and spotting talents.
 Committed workforce for faced challenges through performance based appraisal.
 Reducing workforce cost through source talents within the organization and hiring low
level employees.

1.6: Expected Behaviour Outcomes

Motivated skilful employees are assets for the company. Their behavioural change caused to
increase the productivity and financial performance of the organization. Motivation of the
employees is key factor which only can gain through proper learning and development, proper
appraisal system for award rewards and promotions. Moreover, following behaviour outcomes
are expected to gain through HRM practices.
 Self-Motivated employees through proper performance based appraisal for grant
promotion and rewards.
 Proper communication and cooperation between top level and bottom level will be gain
through open door policy.
 Properly trained competent employees put maximum effort to achieve organizational
goals.
 Open door policy establishes greater participation of all employees for decision making
through gaining their feedbacks and constructive criticisms.

MBA-20-31-504 Page 4
1.7: Expected Performance Outcomes
New strategies and HRM practices leads to gain following performance outcomes to the
company.
 Increase the quality of the work of employees.
 Reduce staff turnover and absenteeism through motivations.
 Vertical and horizontal conflict will mitigate through effective communication and
proper appraisal procedures.
 Encourage to do new innovations which is highly required at present.
 Productivity will increase through effective and efficient use of manpower.

1.8: Expected Financial Performance

In lining business strategies with HRM strategies by using David Guest model (1997) will be
caused to enhance the financial performance of the organization. It creates concerted two-way
relationship which is ideal for a company. David Guest Model (1997) assumption based narrow
model which helps to gain competitive advantage and maximize the financial performance.
Through the said model Country Style (Pvt) Ltd will be gain profit since HRM strategies reduce
workforce cost, absenteeism and staff turnover. Moreover, high performance of employees and
productivity of the organization caused to maximise the profit achieve set business strategies.

MBA-20-31-504 Page 5
 TASK 2

A skills gap is the difference between skills that employers want or need, and skills their
workforce offer. Conducting a skills gap analysis helps you identify skills you need to meet
your business goals. It can also inform your employee development and hiring programs.
Explain the key steps taken by your organisation to address the present and future skills gap
highlighting the importance of HR planning?

ANSWER – TASK TWO

2.1: Human Resource Planning

According to Vetter (1964) human resource planning can be defined as “a process by which an
organisation should move from its current manpower position to its desired manpower position.
Through planning, management strives to have the right number and right kind of people at the
right places at the right time, doing things which result in both the organisation and the
individual receiving maximum long-run benefit.”

2.2: Importance of HR Planning

To reach to strategic goals of company HR planning plays a vital role and it making sure that
the necessary skills are made available to the organization whenever needed. Moreover, the
company gain following advantages through HR planning.
 Optimized the use of existing manpower.
 It ensures right kind of people are hired to support and facilitate to achieve strategic
goals of the company.
 Provide required information to carryout following HR practices. Recruitment,
promotion, L&D functions and etc.
 It helps to adapt the changes and contingency situation such as competition, technology,
government policies, and pandemic situations which may require new employees and
skills.
 It helps to make career planning and succession plan for employees through
determining required learning and development programme.
 It helps to determine labour requirements which needed to implement expansion and
diversification plans
 It helps to identify deficiencies or surpluses in manpower

MBA-20-31-504 Page 6
2.3: Skill Gap Analysis
A skills gap can be defined as variance between the skills required and the skills offered by the
employees (Belyh, 2017). To achieve the business strategies of the company mentioned in
Annex ‘D’, required new skills need to be identified and company need to find the solutions to
fill the skill gaps. Therefore, skill gap analysis will be used as a tools with four main steps to
identifying the best strategies to close the gap or reduce the variations (Giannosa, 2020).

2.3.1: Step 1 - Planning

This can be performed at individual level and team level (Belyh, 2017). Since, the company
going focusing for new projects such as introducing new flavours, new packaging, new online
distribution network and new plantation need of new skills arise. However, with the current
situation and organizational requirement company planned to reduce workforce cost and
optimise the performance of available employees. Therefore, skill gap analysis will be done at
individual level within the teams and team leader will be the in charge of the process.

2.3.2: Step 2 – Identify important Skills

This is a process which used to determine the skill need to job function. Main purpose of this
is identify the specific task of each jobs and this is not to evaluate the person who performed
job. This helps to create effective job description for every employee, determine the real
requirement of skills to perform particular job and to put right people to do right job (Monte,
2019).
2.3.2.1: How to do it?
To do a job task analysis there are different methods such as interviewed, observation,
structured questioner, checklist, open ended question.

Figure 3: How to do Job task analysis (SHRM, 2014)

MBA-20-31-504 Page 7
According to SHRM (2014) leading methods to conduct job analysis are interviewed,
observation and structured questioner. Among them the company decide to use interview and
structured questioners to analyse the job tasks.

2.3.2.2: Steps need to follow for Job Analysis

There are seven steps of job task analysis and company going to follow the said step to identify
import skills required for job.

1. Identify Subject Matter Experts(SME): Department heads needs to select most

knowledgeable employees to as SME to do job analysis.

2. Prepare for Interview: Collect earlier information on particular job such as job
descriptions, work instructions and SOPs to formulate the questions of interview.

3. Define task and responsibilities.

4. Conduct interview with SME and draft tasks.

5. Verify the responsibility and task from team leaders or supervisors.

6. Gather additional information through work instructions

7. Finalized the document with main job responsibility and task need to perform.

2.3.3: Step 3 – Measuring the current skills

Current skills and knowledge of the employees need to be measure to find individual abilities
to perform task. Conduct assessment and survey or interview, 3600 feedback process of the
performance and examine KPIs of employees are the methods to measuring the current skills.
It is suggested to Examine the KPIs of employees to determine the contribution. SMAK
company planned to implement the above with following scoring system to each KPIs. KPIs
will decide through Job Analysis.

Figure 4: Scoring System to evaluate skills of employees

MBA-20-31-504 Page 8
HR department of SMAK planned to introduced online platform to find out skill gaps based on
job description and above scoring system. This will be handled by the department heads to
evaluate each employees and their task and feedback form (example given bellow) need to
submit to HR Section through online platform for further evaluation.

Figure 5: Example of feedback form

2.3.4: Step 4 – Fill the skill gap based on the data

Based on the above data HR department will decide to formulate and develop required learning
and development programme for available employees or hiring new talents. However, SMAK
company mainly planned to offer new training rather than hiring or recruiting new employees.
Hence, available skills of the employees will upgrade to reach business strategies since, the
company mostly focus to introduce new things such as new varieties, new packaging, new
plantation and new distribution channel through online platform, proper learning and
development programme need to be planned to fill the future and present skill gaps.

Further, HR department has planned to source talent for new job opportunities within the
organization to reduce workforce cost. The company has special consideration on vertical
backward integration through new plantations and for the said plantations bottom level
employees planned to be hire and top level will be filled through source talent within the
organization. Therefore, the company will more focus on learning and development of
employees to fill the present and future skill gaps and hire bottom level employees for new
plantation.

MBA-20-31-504 Page 9
 TASK 3

A high-performance culture is the physical or virtual environment designed to make workers

as effective as possible in supporting business goals and providing value. Explain the
importance of culture and motivation to achieve organisational objectives? Recommend how
your organisation could drive a high-performance culture whilst keeping the employees
motivated?

ANSWER – TASK THREE

3.1: Organizational Culture

There are various definitions available in the literature to define Organizational culture. Based
on the literature organizational culture can be defined as the collective effect of the values,
behaviours and common beliefs of the employees within an Organization. It regulates how
people of the company perform and serve their customers, cooperation among employees,
motivation of employees to achieve goals and employees are sincerely into the company's
overall mission (Groysberg, Lee, PriceJ & Cheng, 2018).

3.2: Culture of the Country Style (Pvt) Ltd

Country Style (Pvt) Ltd is instrumental orientated company since all the employees more focus
on assigned task and tangible benefits like increment of pay or rewards on achieving them.
According to the competing values framework of Cameron & Quinn, predominately the
company culture is Market type. Company more oriented to compete with other competitors to
gain market share. Further, business strategies and company objectives more focus toward to
gain market share and increase the profitability. Moreover, the products of the SMAK is more
focusing on customers and market trends. However, some characteristics of the company falls
under Adhocracy since three joint directors lead the company and they are innovative
entrepreneurs who prefer to have innovative outputs as a value drive. Cultural web of SMAK
stipulated in Annex ‘F’.

MBA-20-31-504 Page 10
 Country Style Food (Pvt) Ltd

Figure 6: the competing values framework of Cameron & Quinn

3.3: The High-Performance Culture

The high performance culture of an organization can be defined as “a physical or virtual
environment designed to make workers as effective as possible in supporting business goals
and providing value” (Gartner, 2016). If a company achieve better financial and non-financial
results such as customer satisfaction and employee retentions than those of its competitor over
long period of time that company have a high performance culture.

Country Style Food (Pvt) Ltd more oriented to capture market share as its main objective.
Product development is another key area of concern to survive in the market. Mainly team
leaders who are in the supervisory level directly engage with the staff and they are the one who
inspire, guide and motivate labours. Success of the team depend on the supervisory level team
leader and their main focus divert to achieve set targets and these leaders accelerate the team
to achieve set targets. The performance of the members in the team evaluate by team leader
and he directly liaise with superior authorities and give constant feedback to superiors.

However, considering innovation the company mainly give more weightage to top-down
innovations and formulate every innovation in top levels. Company mainly focus to talent

MBA-20-31-504 Page 11
development through learning and development programmes. However, company has a huge
impact from the director level leadership which is falls under authoritative leadership and
direction of the company will decide by three joint directors. Further, influence of top level
leadership is in its highest position and sometime management level faced numerous
difficulties with top level decisions. Therefore, to create the high performance culture and do
changes within the organization involvement of top level leadership is highly required. The
high performance culture will create upon the decisions of key decision takers and organization
culture is to be change to facilitate people who are able to made key decisions and those
decision contributing to improve the participation.

3.4: How to create high performance culture

Based on the McKinsey model following suggestions can be formulated to adopt for create
high performance culture in Country Style Food (Pvt) ltd.

Direction: The system need to be introduced to convey the vision of the organization to each
employee through team leaders. Awareness and understand of the vision and values of the
organization may leads to inline the employees’ goals with company objectives. This should
be done from supervisory level leaders and awareness programme for them need to be carried
out.

Innovation: Open door policy need to be strengthen and innovative ideas of employees need
to be encouraged through rewards.

Leadership: Organization need consultative and supportive leadership which motivate

employees to inspire them and achieve organizational goals.

Coordination and Control: Team leaders plays vital role in this regard. Reviewing of the
performance based on the feedbacks need to carry out rapidly. Through, review meetings
coordination among each department can be establish and uplifted to its maximum level.

Capabilities: Skill Metrix need to be introduced to each level and talent spotting need to be
done within the organization. Further, comprehensive on job learning and development
programme need to be introduced for bottom level employees.

MBA-20-31-504 Page 12
Motivation: Performance based 3600 appraisal system need to be introduced and based on the
result annual pay increments and awarding promotions is to be done. Further, succession plan
is to be designed within the organization to give the career opportunity to employees.

Work Environment: Entrepreneurial and competitive culture within the organization need to
be create. Monthly rewards system for best employees in each department based on high
performance can be introduced to create internal competition among employees.

Accountability: Responsibility is to be delegated to each employee in the organization and

employees are accountable for their actions and have the independence to make decisions
regarding their work. Job Descriptions for the employees and SOPs are introduced to task
perform by employees.

3.5: Challenges to implement high performance culture

Key challenge to implement High Performance Culture in Country Style Food (Pvt) Ltd is
difficulties to empower senior leaders to embody company values and qualities. Since the
company is a family business most of the key appointment hold by family members and
close relations. Hence, convince the requirement is huge barrier.

Next challenge is introducing performance base appraisal system and maintain the
wellness of employees to continue high performance culture will be difficult due to the
influence of family members.

3.6: Way to overcome challenges

Comprehensive project plan on changes of the culture need to be formulated and
presented to top level management. Requirement of high performance culture and
advantages gain through the changes need to be highlighted. Directors involvement and
participation is to be highlighted to senior leaders and their role need to be convince
through comprehensive briefings. Through that common policy on performance based
appraisal, reward system and succession plan need to be introduced to the company.
Team leaders need to be trained to maintain the wellness of employees and constant
constructive feedback need to be obtained from employees through an online platform
and immediate action need to be take based on feedbacks to overcome loopholes.

MBA-20-31-504 Page 13
 REFERENCES

Belyh, A. (2017). Skills Gap Analysis. Retrieved 31 October 2020, from

https://www.cleverism.com/lexicon/skills-gap-analysis/Essex: Pearson Education Limited.

Gartner. (2016). Definition of High Performance Workplace - Gartner Information Technology

Glossary. Retrieved 31 October 2020, from https://www.gartner.com/en/information -
technology/ glossary/high-performance-workplace

Giannosa, J. (2020). EDSI - What is a Skill Gap Analysis and Why is it Important?. Retrieved
31 October 2020, from https://www.edsisolutions.com/blog/what-is-a-skills-gap-analysis-and-
why-is-it-important

Groysberg, B., Lee, J., PriceJ, J., & Cheng, Y. (2018). The Culture Factor. Retrieved 31
October 2020, from https://hbr.org/2018/01/the-culture-factor
Monte, J. (2019). EDSI - Seven Steps to a Solid Job Task Analysis. Retrieved 31 October 2020,
from https://www.edsisolutions.com/blog/seven-steps-to-a-solid-job-task-analysis

SHRM. (2014). SHRM/ACT: Job Analysis Activities. Retrieved 31 October 2020, from
https://www.shrm.org/hr-today/trends-and-forecasting/research-and-surveys/pages/2014-job-
analysis-activities.aspx

Torrington, D., Hall, L. and Taylor, S. (2008). Human Resource Management, 7th edition.

Vetter, E. (1964). The nature of long range manpower planning. Human Resource
Management, 3(2), 20-27. doi: 10.1002/hrm.3930030205

MBA-20-31-504 Page 14
 ANNEX A: DETAIL DESCRIPTION OF COUNTRY STYLE FOOD (PVT) LTD

The Size And Employee Of Country Style Food (Pvt) Ltd

Country Style Food (Pvt) Ltd has Four levels of employees Managers, Executive, Supervisors
and staff are the said four levels. Labour turnover is one of the key challenge that faced the
Country Style Food (Pvt) Ltd and have impact in the performance of those organizations in
terms of Loss on Productivity due to loss of efficiency and Quality Standards and Incur High
Training Cost. As per the following chart it shows turnover of above supervisory level is higher
due to demotivation of employees and other personal reasons for career progression.

Level Total Total turnover Percentage

2018 2019 2018 2019 2018 2019
Management 40 45 06 08 15% 17%
Executives 80 80 09 08 11% 10%
Supervisors 110 120 15 17 13% 14%
Staff 250 300 18 20 7% 6%

Products Range

Products range of SMAK

MBA-20-31-504 Page 15
Customer Segmentation
Market segmentation of the SMAK as follows.
Demographic Age Both male and female kids and youngers above 5years old
given special consideration.
Above 40 years health conscious group.
Income Mean per capita income per month in Sri Lanka is Rs. 16377
and who earn more than that is another segment (Central
Bank of Sri Lanka, 2018).
Stage of People above 40 years who have health issues.
Life Cycle
Geographic Region Tropical region where weather is hot. However, SMAK
distribute island wide since weather of the country is hot in
most of the region throughout the year.
Psychographic Interest People who changing to healthy food consumption and who
prefer non-carbonated drinks as their first choice.
Life Style Who spending busy life style and prefer ready to drink
beverages.
Behavioural Usage Annual growth rate of fruit drinks is 12% and usage rate of
fruit drinks is increasing rapidly (Rambukwella,
Priyadarshana & Vidanapathirana, 2015).
Benefits SMAK gives exact taste of real fruit drink with low and no
sugar for diabetes and gave lots of health benefits.
Customer segmentation of the SMAK

MBA-20-31-504 Page 16
Competitive advantage
In addition to differentiation strategy with unique features competitive advantage of the SMAK
company is analysed using the Davidson’s sources of competitive advantage.
Source SMAK MD KIST Fruit Juice
Bars
Superior Product High High High Medium
Benefits
Perceived Advantage Very High High High Low
Low cost operation Moderate Moderate Moderate Moderate
Global Skill High Moderate Low Low
Legal Advantages High High High Low
Superior Relationship High Moderate Moderate Low
Superior Skills High High High Moderate
Offensive Attitudes High Moderate High Low
Davidson’s sources of competitive advantage
Considering the high competition of the market to maintain market share in the broad market
cost leadership strategy will not the best option. Hence, company should have focused to follow
the differentiation strategy and company should highlight the uniqueness of fresh products to
gain the competitive advantage in the market.

Following unique features should highlight by SMAK to gain the Competitive Advantage.
 Highlight the no sugar fruit juice and health benefits of it for diabetic patients.
 Highlight the SMAK Aloe and SMAK Iramusu with its health benefits.
 Highlight the hybrid technology used by the company in the production.
 Highlight quality awards received by the company.

Using said strategy for competitive advantage SMAK can gain market share and achieve the
company objectives.

MBA-20-31-504 Page 17
Current Markets The Company Operates In

Through the competitor analysis following competitors identified as Direct and Indirect
competitors in the market. Fresh Juice Bars spread in urban areas is the main competitor for
SMAK in the urban area. However, in overall MD and KIST products directly compete with
SMAK to gain market share in fruit drinks industry. Island wide distribution of the SMAK has
caused to remain as a market leader. Indirect competitors also give considerable impact to the
market. Since, consumers moving into healthy drinks reducing carbonate drinks will cause to
increase the market share of SMAK.
Direct Indirect
Fresh Juice Bars (Fresheez, Roots, Tropical Carbonated Drinks
Fresh Juice Bar, Good Life Café and Café (Coca Cola, Elephant house soft drinks,
etc) Pepsi)
Lanka Canneries Ltd. (MD) Energy Drinks

Cargill’s Agri Foods Ltd. (KIST) Concentrates (Sun quick, Motha, Cordial)
Direct and Indirect Competitors

Market Share for Fruit Drinks

Others
26%
SMAK
KIST 48%
8%
MD
18%

SMAK MD KIST Others

Market Share for Fruit Drinks

MBA-20-31-504 Page 18
 ANNEX B: ANSOFF’S MATRIX FOR GROWTH STRATEGY

Ansoff’s matrix used as tool for identify Growth Strategy of the product which required to
achieve the company objectives.

Ansoff’s Matrix for Growth Strategy

SMAK is the leading brand in fruit drink industry and there are so many competitors launched
their products to growing fruit drink industry. Based on the analysis company is mainly
focusing market penetration strategy as core strategy to grow in the current market in next three
years to achieve the company objectives. This strategy will be achieved through capturing new
market, product development and enhancement of distribution line with IoT. It help to enhance
the sales and market share. Further to the above companies planned for product developments
through R & D and introduced no sugar fruit drinks to the market and as diversification strategy
introduced new flavours and new products by SMAK such as SMAK Aloe and SMAK Iramusu
to achieve the company objectives.

MBA-20-31-504 Page 19
 ANNEX C : PORTER’S GENERIC STRATEGY MODEL

To identify the strategies to create Competitive advantage for the SMAK Porter’s Generic
Strategy Model has used.

Competitive Advantage
Competitive Scope

Porter’s Generic strategy model

Considering the high competition of the market to maintain market share in the broad market
cost leadership strategy will not the best option. Hence, company should have focused to follow
the differentiation strategy and company should highlight the uniqueness of fresh products to
gain the competitive advantage in the market.

Following unique features should highlight by SMAK to gain the Competitive Advantage.
 Highlight the no sugar fruit juice and health benefits of it for diabetic patients.
 Highlight the SMAK Aloe and SMAK Iramusu with its health benefits.
 Highlight the hybrid technology used by the company in the production.
 Highlight quality awards received by the company.

Using said strategy for competitive advantage SMAK can gain market share and achieve the
company objectives.

MBA-20-31-504 Page 20
 ANNEX D: BUSINESS STRATEGIES

To attracting 70% kids and younger generation 5-20 Years within next three Years
Fruit drinks is very popular among adolescents. Kids and youngers within 5-20 years in Sri
Lanka is about 09 million which is 38% of the total population (Indexmundi.com, 2019).
SMAK contain fruit calories which is necessary for the kids fall into the age category. SMAK
has 48% market share so this is reachable with new promotional campaigns by targeting said
age group within next 3 years.

To increase the market-share of SMAK 1%-2% by next three years.

SMAK occupies 48% of market share in market for fruit drinks. Launch of new products with
low or no sugar would satisfy 2 segment groups of kids and diabetes patients and new healthy
drink varieties such as SMAK aloe and SMAK Iramusu.

To increase the healthy fruit drink consumption and reduce carbonated soft drinks
consumption 2%-3% within next three years.
Carbonated drinks such as soft drinks and as well as alcoholic drinks has cancer causing
ingredients in it. SMAK expect to reduce the consumption rate of these types of beverages by
2-3% as SMAK is made out of natural fruit pulp without any harmful preservatives. Through
promotion this can be reached.

To reduce the environmental pollution through new packaging.

Even though SMAK thinks about social responsibility it is giving a huge burden to the
environment by plastic bottle packaging. SMAK will be launched in new packaging which is
environmentally friendly and would set example to other fruit drink manufacturers.

MBA-20-31-504 Page 21
 ANNEX E: HRM STRATEGIES

Strengthen all departments to enhance the efficiency and effectiveness of employees

through comprehensive learning and development programmes
Comprehensive learning and development process is highly required to align employees to
achieve business strategies. Specially, Country Style Food (Pvt) Ltd has its own R&D
departments with fully fledge laboratories. This department need to strengthen through the
improvement of knowledge and skills of employees. Business strategies of the company more
focus to product development and introducing new products to increase the market share.
Therefore, expected performance of R&D department, production lines, sales and marketing
need to be in its highest level.

Maximise the performance of employees through talent spotting.

Company planned to introduced new varieties and focusing more on product developments.
Therefore, new talents need to be spotted within the organization. Further, with present
pandemic situation network marketing need to be introduced and talents for the same need to
be spotted within the organization. Moreover, comparing to the competitor promotion effort of
the SMAK is in the low level. Hence, skills of employees in sales and marketing department
need to be improved and new talents need to be spotted since, most of the business strategies
are formulated and can be achieved only through strong marketing campaigns. Company more
focusing to product differentiation and development and same time capture new market. For
the said purpose efficiency and effectiveness of R&D department, production lines and
marketing department should be optimised to its highest level. Therefore, skill Metrix need to
be introduced specially for the said department to fill the skill gaps with available employees.

Establishing new department for new plantation

As vertical backward integration company have a new strategy to establish new plantation
which will be the solution for continues supply of fruits. Hence, new department need to be
established to achieved the said goal and expand the said plantation.

MBA-20-31-504 Page 22
Open door policy to increase the coordination between top level and bottom level.
To deal with any issues immediately SMAK follow open door policy. It creates good
relationship between top level and bottom level of employees.

Performance based appraisal for rewards and promotions

The belief that satisfied employees are more productive than dissatisfied employees. Hence,
proper appraisal system need to be introduced to motivate employees.

MBA-20-31-504 Page 23
 ANNEX F: CULTURAL WEB OF SMAK

Stories Starting form 1981 SMAK grown from strength to strength and held
monopoly of fruit drinks industry in Sri Lanka for considerable period of time
and still maintaining the Market Leader position in Sri Lankan fruit drinks
industry.
Rituals & In manufacturing plant staff report for duties on shift basis. SMAK highly
Routines consider the health and hygiene of the employees and all employees directly
engage with manufacturing issued with special dress and shoes. Open door
policy is maintained by the SMAK to encourage employees to express their
views.
Organization Country Style Food (Pvt) Ltd commenced from a family business under the
Structure three joint managing directors. Three family members of the Alahakoon
family holding the director appointments and they are the governing body
who directly engaged with board of management.
Power Three Joint Directors making the key decisions. Board of management
Structure consisted with Plant manager, Sales manager, Finance Manager, HR
manager, Quality and safety coordinator, Marketing manager and Chief
engineer handle their respective departments and they are responsible for
handling and implementing required improvements of their respective
departments.
Symbol Brand identity with SMAK logo.

Control System SMAK ensure the strict hygiene and freshness of the products. All SMAK
products are tested at the laboratory and the factory to maintain all world food
safety standards.
Cultural Web of SMAK

MBA-20-31-504 Page 24