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Nowadays sustainability is one of the prime things in the food industry. Food products are made from various vegetarian or non vegetarian items; therefore it is necessary to maintain the quality and freshness relating to the environment at a fresh rate. In order to perform better analysis on the subject topic, Food Connect is selected as the selected organisation. In the year of 2005, ex-dairy farmer Robert Perkin introduced the organisation. He has a vision to create a fresh food system in Australia. The main aim of the organisation was to get ecological food from directly farmers. Farmers are paid almost four times better than other food chain organisation that is why they are keen to supply super fresh food to the organisation. On the other hand, the farmers are getting adequate amount of money directly to their home. The organisation has the ability to produce fresh and delicious products all over various cities in Australia. The management of the organisation decided that there product will be delivered within 400 km around the city so that the food and products remains fresh. It also led a positive impact to the nature as the foods and products are fresh enough.
In this assignment the researcher will elaborate the organisational culture of the entity. Entire stakeholders, competitors, suppliers and employee structure will be described in this project. Therefore, sustainability challenges of the organisation will be described by the researcher in this assignment. Possible recommendation to overcome various challenges will be included in this assignment by the researcher. (foodconnect.com.au, 2017)
Food industry delivers a very important role to the environment. It has been seen that the industry is responsible about 25-30 percent of the greenhouse gas emission during the supply of foods. That is why it has become a challenge to make a sustainable business structure over a time (Alsos, Carter & Ljunggren, 2014).
In the scenario of food connect, it has been seen that the profits of the organisation are used to the promotion of their super fresh products. No amounts of their profit are delivered to any member of the organisation, not as a part of incentive or dividend. The organisation is solely focus to make their profit to the betterment of their products. The organisation fully abide by the Collections Act 1966(Qld) for fundraising appeal.
It has been found that the management of the organisation has the full authority of cancel and issue shares within the company and provide various options over unissued share in the company. The decisions are maintaining related legislation and solely in the hand of the director. Employee share and ordinary share are issued by the director.Boulton, Rushton & Wathes (2015) viewed thatordinary shareholders have to be the director or the founder of the shareholder and only other person who has to be a legal person. On the other hand, the employee shares are given to only those employees who are employed at the company for at least one year. As per the organisation’s constitution, no one even the director cannot forfeit any kinds of share to anybody. Share only can be forfeited in case it violates any rules on the terms in the time of issue. Share can be transfer only in the decision by the director himself.
There are various norms regarding the transmission of shares. In case a member of the organisation dies and he does not holding the share jointly to anyone, therefore, the organisation will have the authority to recognize the personal representative of the employee. Thus the transmission of share can be possible.Donnelly et al.(2015) viewed that personal representative can deliver a written notice electing himself as the holder of the share. In case, any person is getting a share by the bankruptcy of another person, he has to deliver the same notice electing himself as the shareholder of the organisation. Share can be transmitted due to the mental abnormality of any shareholder. The new shareholder has to do the same policy to maintain the constitution of the organisation.
General meeting of the organisation is not only limited to exercise by the board of directors of the organisation. It is focused to the decision of all the members of the organisation. The major portion of an agreed proposal has the authority to all or part of the business which is controlled by the organisation (Dries et al. 2014). The majority also has the authority to sell all the chattels of the organisation, but any perishable products are excluded from this regulation.
The organisation also has an active online portal by which customers can have their hospitality in sitting home. Almost every product of the organisation is available in their online portal. Another positive aspect about their product is that the products are entirely free from any kinds of toxic chemicals. The employees are best in this matter in the entire region. Anyone can have their seasonal and local food options as their grocery item which is directly from their efficient farmers. The management of the organisation knows that nowadays people feel monotonous to go to the shop; therefore, the organisation has opened a facility of city cousins. Customers are advised to find the store in the city. Therefore they have to order their needs and requirements over there. The organisation will deliver their ordered products on a weekly basis in the city cousin.
The researcher of this assignment has found various role of the director in the organisation. It has been seen that the entire company is managed by the director.Gorton et al.(2015) viewed that the director has to maintain the Corporations act in this scenario. The director has the entire authority to raise or borrow money or he can charge any property or business of the company. The director can issue debentures to any person of company.
The director of the organisation has the provision to set the power of attorney to any person within the organisation. The person who is elected to take the power of attorney is solely dedicated to the director’s concern as he is suitable for the position or not. The director also has the authority to sign any of the bills of exchange, draft of bankers, issuing any personal checks and various kinds of negotiable instruments of the organisation.
The researcher analyzed that the life cycle of food product is solely dependent on the agriculture, manufacture, packaging, distribution, using and disposal by the consumers. Agriculture is the prime contributor in the life cycle of a food product. It has been shown that the production of agriculture has the responsibility in almost 30% of the greenhouse gas emissions. Various researches shown that almost 50% of air and water pollution occurs due to the agriculture as it pollutes the river by its chemical, various slits and waste of animals (McDonald et al. 2013). It has also seen that the 45% of the irrigation water is used effectively in agriculture.
There are various ways by which the negative impact on environment from agriculture can be reduced. In the scenario of animal or other dairy firm, almost 70% antibiotics are used to feed animals for their effective growth. Analyzing the scenario of The Food Connect, the management of the organisation focuses to stay natural and decides to grow their products by not using any kinds of outside chemical or antibiotics (Michael-Tsabari, Labaki & Zachary, 2014). Therefore, environmental impact can be reduced. Consolidation of firms is another way leading to the unity of wealth, reducing rural population, loss of any kind’s infrastructure regarding farm communities any more. Small firms can be evoked in this manner.
In the scenario of The Food Connect, the management decides to works with almost 80 farmer families who are harvesting the products for them. They completely rely on them as the farmers are keen to focus on the quality and sustainability of the product. Therefore, a positive impact on the environment is generated. The organisation gives their customer to know the origin of their products over their website portal. Customers can know the details of the products in just a click on the internet (Parmeter & Kumbhakar, 2014). This strategy helps to retain loyal customer base through a certain time for the organisation. It is also leading to the sustainability of their business.
The organisation is keen to maintain the sustainability of the business. Farmers are the key partner for the business; therefore, the management of the organisation values the hard work of their farmers. Almost four times better wages are paid to the customers in place of other food chain houses. The organisation wipes out the middleman to implement this process. On the other hand, it leads a social activity for the organisation as the money of the customers is going directly to the producers (Sumner, 2014). This step increases the value of the organisation in the mind of the customers. Sustainability of the venture stands in this way.
The management of Food Connect believes to stay away from the conventional business policy like focusing on the profit-driven business. The organisation focuses to give environmental, social and economic benefits to the community. The researcher analyses that the organisation pad almost 40% of their retail dollar directly to the farmers whereas, other organisation stands for only 10% in this scenario (Wilson, 2014). In Australia, weekly recommended fruit and vegetable consumption of a consumer is 38%, whereas, Food Connect stands with 75%. All the products are maintaining the full ecological standards of Australia.
Packaging is another concern by which the ecological impact affected the environment. It has been seen that 95% environmental pollution is done due to the production of a packet. Only 5% is done due to the disposal of the package. Analyzing on this section the researcher shows that the management of Food Connect decides to use recycled content for their packaging to reduce the impact on the environment. Less packaging and minimum waste programme reduce the carbon footprint of the organisation.
The organisation also takes part in various charitable programs like to donate in the various community groups. Food Connect also takes part in various food rescue programs. Human resource department of the organisation recruited the staffs that are from various marginalized background. The researcher analyzed that 25% of their staffs are recruited who are facing the problem of long term unemployment (Bryman & Bell, 2015). The organisation has gained the capability to retain almost 1500 families as their loyal customer as the products of Food Connect is healthy and sustainable. On the other hand, the products are made by without any use of chemical.
The organisation gives the privilege of working to many aboriginal people. Previously, Australia was surrounded by various tribal communities consisting of aboriginal people. They did not have any kinds of proper shelter and occupation for living, although those aboriginal people were aware of various kinds of vegetarian use for food products. Various medicines are made by those herbs, therefore, various governmental intervention broad those people forward in the community. Food Connect employed various people from these communities for their effective knowledge about herbs. As per various aboriginal employees lemon leaf can be used to make tea, lemonade, lemon sauce and many more products without adding any kinds of outside preservatives and chemicals. The products will be healthy as well as delicious and eco-friendly under these circumstances. Lemon leaf can be used to make various kinds of cookies. There are various natural ingredients in Australia. Enormous varieties of seeds, leaves, grasses and many more items are there to produce various natural products. Food Connect is using the natural resources to make a sustainable business structure.
In spite of all the positive sides, the organisation has some weakness and threats too. Nowadays people become more health conscious due to the growing issue of medical condition and sickness. Therefore, various other organisation are doing the same strategy for their business. It is difficult for Food Connect to gain the competitive advantage for a long time. It can also lead to decrease the sustainability of their business (Embretson & Reise, 2013). The structure of the organisation can be problematic issue for the sake of the organisation. The director of the organisation has the authority to take various decisions without the consent of the members of the organisation. Therefore, it can lead to decrease the morale of the staffs within the entity.
The researcher of this assignment views various positive approaches of Food Connect. The organisation is solely focuses to move away from the profit driven business. The organisation is keen to bring environmental and social benefit to the community. The organisation is selling the products directly from the house of the farmers. It is a positive approach to gain a loyal customer base up to a certain extent. The researcher recommends providing food truck facility for direct promotion and selling for their products. The trucks can distribute the products in the rural areas also. It will not only increase the customer base but also increase the awareness of having natural food in the mind of the customers. It also leads to gain the competitive advantage in the industry which will be fruitful for the organisation.
Various financial and managerial decisions of Food Connect are done by the general meeting of the members but sometimes the director has enormous authority to take various decisions in his own hand. The researcher recommends appointing at least three directors. It will lead to manage the entire organisation with much easily. All the directors of the organisation should be the member of the company and serving for the organisation for a long time. Thus various fruitful decisions for the sake of the organisation can be taken.
Food Connect is one of the major food supply company in Australia. The organisation focuses to be a social enterprise as the management of the organisation is keen to stay away from the normal profit-driven business strategy. After analyzing the entire business structure of Food Connect, the researcher of this assignment concludes that the organisation is delivering super fresh herbs and products to the customers. The products and naturally harvested in the house of efficient farmers. The products are grown without the use of any kinds of outside chemical to reduce the ecological impact. The researcher also concludes that the organisation is equipped with a website portal by which customers can buy their products in just one click. In spite of that the researcher of this assignment found some drawbacks in the structure and business procedure of Food Connect. Therefore, the researcher suggested implementing food truck campaign for acquiring more customers to gain the competitive advantage. The researcher concludes that in case food truck is implemented, it will increase the sales figure which will leading to the betterment of the organisation. The researcher also concludes that in case the organisation appoints at least three directors as the head of the organisation, it will easier to run the business. Most decisions of the organisation can be taken by the majority of those directors. It will lead to develop the organisational culture within its premises. The organisation also delivers ample amount of money to develop the backlogged community. Various food related campaigns also done by the organisation. The researcher concludes that, these kinds of social activities will generate the social awareness of Food Connect in the mind of the customers which can be fruitful for the organisation.
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