Sustainable Business Structure and Networks

Executive Summary

The report is conducted to provide excellent knowledge regarding analysis the role of different actors in supply network and their sustainable practices along with the consideration of impacts on triple bottom line. In this report, analysis of relationship between the firm and support structure is also explained as well as sustainable innovation practices bring by the internal and external stakeholders. Strategic intelligence is the key information to make policies in the business with the available resources. I have chosen the foodstuffs company because this company is doing all the sustainable practices.

Introduction

Foodstuffs is one of the largest grocery distributor organization to different supermarkets such as Pak n save and new world. It is 100% kiwi owned and operated company. The structure of this report are as follows: 1 Role of different actors in supply network and how these agents enable effective and efficient implementation of environmentally sustainable business practices. 2 Following by, analyzing the relational dynamics between firm and support structures and how these support structure facilitate innovative sustainable practices. 3 Lastly, the supply of strategic intelligence for increasing interface between policy and business. The main purpose of this report is to how different actors in supply chain, support structures and strategic intelligence brings effective and efficient results for the foodstuffs company with their sustainable practices. (About Foodstuffs, 2018)

1. Role of different actors in supply network

Each organization has different actors in their supply network. Each actor plays pivotal role in supply network. Foodstuffs also has supply network actors producers, distributors, retailers and customers which helps to achieve potential benefits. (Four Participants, 2014)

1.1  Producers:

Producers are the main actor in an organization. They produce the raw material into final user through different process. In foodstuffs, Gilmour’s and Trents are the producer. https://www.foodstuffs.co.nz/about-foodstuffs/our-operations/

1.2  Distributors:

They are the owner of the inventories products that they buy from producers and sell it to the consumers. In foodstuffs, there are four wholesale distributors centres in north island includes foodfresh, two in Auckland and one in Rotorua. (Our Operations, 2018)

1.3  Retailers:

They have a direct communication with the customer and provide direct products and services to consumers according to their convenience. Pak n Save and New world are the retailers of foodstuffs.

1.4  Customers:

Customers are the key player in supply chain. Without them, no business can survive. Giving proper satisfaction and meeting the expectations is significant for an organization. Foodstuffs performs such practices to be sustainable in the market.

2. Environmentally sustainable business practices 

Sustainability is very significant for each organization to survive for long time in this modern era. In foodstuffs, each actor of supply network impacts on triple bottom line 3P (people, planet and profit). Producers are playing star role in supply network. In foodstuffs, management make stock policy according to the demand of the retail supermarkets. Gilmour’s and trent are manufacturer of foodstuffs and they give proper health and safety assurance to internal and external stakeholders. Environmentally, foodstuffs produces all their product using the natural resources. In profit, they are growing sustainably in every department. In distributor, foodstuffs give proper health and safety to the drivers. They use train mode of transport to distribute the goods which reduces fuels consumption as well as emission of gases from trucks. (Climate change and carbon emissions, 2018) In profit, they cut the transportation cost after using sustainable mode of distribution. For example, foodstuffs introduces 28 zero emission electric vans in 2017 to distribute goods. In retailers, foodstuffs have a partnership with different support organizations like Kiwiharvest and Kaibosh. For example, in last one year, foodstuffs donated 5.1 million meals to the needy people. (Food rescue, 2018) . The energy consumption in foodstuffs stores reduces by 2% per m2 every year. (Energy effiency , 2018). Economically, all the stores are achieving their set goals every year. In customers, foodstuffs providing standard quality of products at the reasonable prices. For example, $2 weekly deals in Pak n save attracting tremendously to the buyers. (Promotions and deals, 2018) Environmentally, foodstuffs provides proper awareness to buyer regarding wastage of products and recycle products. In profit, foodstuffs stores has regular customers.

3. Support Structure

In this modern era, each firm should have a transparent sustainable support structure to get their brand name on every nook and corner of the world. It simply means support practices from internal and external stakeholders to expand the business on high level because support structure can be internal and external. Foodstuffs also has sustainable support structure. Internally, foodstuffs give educational support to the employees to get more productivity in their job profile. It comes under the HR department. For example, 2017 report says 1106 employees attended different courses like butchery, bakery and management study. Secondly, foodstuffs also increase their sustainability through marketing support. Recently, they introduced the happiness project, themes weeks and Christmas campaign to expand their business with sustainable growth and development. Externally, recently, foodstuffs introduced a partnership with eat my lunch company. The main purpose to get partnership was to make sure thousands of kiwi kids don’t go hungry at school. They have given free lunch to more than 840,000 kids in North Island. Lastly, foodstuffs started a partnership with Goodman Fielder to manufacture their private label and controlled label bread. As a result, sale grown in private label products by 4.64% in Pak n save as compared to last year. (Annual report, 2018)

4. Relational dynamics between firms and support structure

Majority of the businesses growth is totally dependent on the relationship between the firm and their support structure. Foodstuffs also has great relationship with their internal and external support structure. Internally, the relationship between human resources and marketing structure with the foodstuffs is very healthy. Both of them, try to create and add value to the firm. HR department supporting the firm to bringing new talented people for more efficiency and effectiveness in the foodstuffs. The campaign run by the marketing team make more strong relationship with the firm because they promote sustainable practices done by the foodstuffs to nationwide. They also promote how sustainable are they in the competitive advantages. Externally, eat my lunch and Goodman fielder companies are generating excellent relationship with foodstuffs.  Both of the firms follow the policies and care about the values of foodstuffs. Moreover, foodstuffs also fulfilling the requirements of these support structure. For example, the partnership with eat my lunch make foodstuffs more reputed because they do such practices which are excellent for the welfare of the society. However, the requirements of the government create some hindrances for both of the firm because after certain period of time they introduce new policies which foodstuffs needs to follow. For example, fluctuation in taxation and grading policies are main obstacles for the organization.

5. How these support structure facilitate innovative sustainable practices

Sustainable innovation means generation of new ideas within the firm through research and from internal and external stakeholders considering the impacts on social, economic and environment. To survive for long term in market, there should be an innovation in the firm. Nowadays, companies are trying to follow innovation model which lead them very wide in the market. There are two model: open innovation and closed innovation. In past, companies followed only closed model and did not survive for long because there was just ideas along with the corporate limitation. In present, companies are attaining open model which lead them to the sustainable growth and development. In open innovation model, they have new ideas along with other industries and alternate market information to get competitive advantages. They innovate their products, ideas and practices without impacting harmfully to 3P. In foodstuffs, they bring sustainable innovation to get ideas from internal and external stakeholders because employees from different backgrounds can suggest the innovative ideas and suggestions as well as customer’s feedback will bring more efficiency in the business. External support structure also contributing for innovation because eat my lunch suggests such innovative ideas which foodstuffs discuss with their internal support structure and implement the best one for the better results. (sustainable innovation, 2018)

6. Strategic intelligence for interface between policy and business

Strategic intelligence means collection, analysis and process of information to make concrete policies and strategy in the firm to monitor the specific issues which have long and short term impacts. A firm can obtain these information’s from internal and external stakeholders. Internally, trained employees will help to enhance this information. Externally, partnership with the certain outside companies will lead to get update information regarding the market situation. Most of the organization follows the intelligence cycle mean making the policymakers to implement in decision making and action from raw information to finished intelligence. Strategic intelligence cycle consists following steps: (the intelligence cycle, n.d.) Step 1: Task planning: it means identify the concerned issues which need the intelligence. Step 2: Data collection: means gathering the raw information from different sources like foreign broadcasts, newspaper and books to produce finished intelligence. Step 3: Processing: - means converting the data collection information to form usable. Step 4: Analysis: means check the accuracy of the data collected. Step 5: Dissemination: it is final stage of intelligence cycle means distribution of finished intelligence to consumers.

Conclusion

Ultimately, Foodstuffs Company is performing such sustainable practices since so many decades which make them growing every year. Their supply actors acting in an effective and efficient way as well as support structure having healthy relationship with foodstuffs and helping them to bring sustainable innovation. Lastly, importance of strategic intelligence is also explained to make concrete policies.

References

• About Foodstuffs. (2018). Retrieved from Foodstuffs: https://www.foodstuffs.co.nz/about-foodstuffs/
• Annual report. (2018, April 1). Retrieved from foodstuffs:https://www.foodstuffs.co.nz/media/166656/fsni-concise-annual-report-fy2018.pdf
• Climate change and carbon emissions. (2018). Retrieved from foodstuffs: https://www.foodstuffs.co.nz/corporate-responsibility/environment/climate-change-and-carbon-emissions/
• Energy effiency . (2018). Retrieved from foodstuffs: https://www.foodstuffs.co.nz/corporate-responsibility/environment/energy-efficiency/.
• Food rescue. (2018). Retrieved from foodstuffs: https://www.foodstuffs.co.nz/corporate-responsibility/social-responsibility/food-donation/.
• Four Participants. (2014, March 14). Retrieved 17, from scmglobe: https://www.scmglobe.com/four-participants-in-every-supply-chain/
• Our Operations. (2018). Retrieved from foodstuffs: https://www.foodstuffs.co.nz/about-foodstuffs/our-operations/
• Promotions and deals. (2018). Retrieved from Paknsave: https://www.paknsave.co.nz/promotions-and-deals/
• sustainable innovation. (2018). Retrieved from katerva: http://www.katerva.net/about/sustainable-innovation
• the intelligence cycle. (n.d.). Retrieved from fas.org.