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Analysis of the difference between current practice and best practice as identified in the literature appropriate for the industry location of the organization. Additionally, there is my recommended practice for the organization given current constraints:
The major strategy to be used in tackling this question is the location of Baiada Poultry Pty Ltd as compared to the best location of such businesses in the industry. This is because it is important to analyze the costs associated with the strategic location and logistical procedures of the business outlets. It is also necessary to know the importance of the organization’s cultural perspective to Baiada’s performance.
Currently, Baiada Poultry Pty Ltd headquarters are situated at Pendle Hill, 30km west of Sydney. The other operating centers are in major Australian cities and towns such as Victoria and Brisbane (Welcome to Baiada 2007). This location can pose a challenge to the logistical operations of Baiada Poultry.
This is because there are other major companies that engage in poultry farming as well. These have more supply joints as compared to Baiada and they can therefore pose a challenge to the company’s profits (IBISWorld 2010).
Since these competitors such as Inghams Enterprises are strategically located within 50 km of the market, they can be in a position to reduce operating costs associated with transport. As a result, they can achieve a competitive advantage over Baiada Poultry by selling their products at cheaper prices (Organisations: Connected with poultry 2011).
On the other side, it is important to note that the best location for poultry products is near the consumers. The current location of Baiada Poultry Pty Ltd may therefore not benefit it logistically.
This is because it might take long to deliver the desired goods on time. This is given the fact that Baiada’s poultry outlets are further from the markets while the major poultry producing firms are located within the market centers (Location of Farms and Processing 2011).
Delivery time is essential in ensuring that product quality is maintained. If the products take too long to reach the end consumer, then quality is compromised. Eventually, consumers will opt for the competitor’s products. This can have long term negative effects on the profits of Baiada Poultry Pty.
It is necessary to consider that Baiada’s human resource re-strategized its workforce. It therefore trained and promoted employees from within therefore creating a friendly culture among the employees and their seniors. This way, the poultry business has flourished because the employees are well coordinated and promotion activities boost their morale.
Since they feel fairly treated, their production levels have improved. Consequently, Baiada Poultry Pty Ltd has been able to achieve a competitive advantage over its competitors (Marchington, M 2005, p. 74).
As a result of the good relations at the place of work, the overall level of production as well as performance of the company has increased with time. Note that with increased consumption of poultry products in Australia, it is necessary to improve the quality by constant training of the workforce (Adams 2010).
The location of any business and in this case poultry business is essential in order to save transport costs of either raw materials or finished goods. Baiada Poultry Pty Ltd should therefore aim at establishing businesses near major consumer joints such as hotels. Additionally, its suppliers or source of poultry should be conveniently located in order to save time and money. This way, it is possible to save costs.
It is recommendable that Baiada Poultry Pty Ltd should increase the number of its outlets. This way, it will be able to reach many consumers and therefore be able to beat competition from the top players in the market. Logistically, it should improve the supply chain by contracting raw materials from suppliers who are near its production facilities.
Additionally, the company can reduce costs by establishing its outlets near the consumers. This way, less delivery costs will be incurred. Baiada Poultry can also practice economies of scale whereby it can sell in bulks in order to save transport costs. As a result, this can create a competitive advantage over the competitors.
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The company’s human resource department should yearn to improve the level of management to a standard that is up to date. It can do this by conducting seminars in order to train its staff about the managerial as well as supervisory roles.
This way, production procedures can be smoothened and problems associated with industrial strikes can be prevented. Baiada Poultry Property should also be keen to ensure that promotion is transparent at all times. This way, issues of mistrust among the employees may be avoided and quality can be maintained always.
There are various challenges that were encountered during research on this topic. For instance, some of the information available is very inadequate. This is to say that Baiada Poultry Property Ltd has not posted sufficient information about its operations on the internet. Therefore, there is need to constantly update poultry business information in order to form a reference for prospective clients.
Adams, P 2010, Landline: Chicken Run. Web.
IBISWorld 2010, Poultry meat farming in Australia- industry market research report. Web..
Location of Farms and Processing 2011. Web.
Marchington, M 2005, Fragmenting work: blurring boundaries and disordering hierarchies, Oxford University Press, Oxford, UK.
Organisations: Connected with poultry 2011. Web.
Welcome to Baiada 2007. Web.