Haigh\'s Final Report PDF

Preview

Summary

Download Haigh's Final Report PDF

Description

Ruishen Shen

13152487

Executive Summary The purpose of this report is to define performance dimensions for Haigh’s Chocolate. This report will provide a brief organizational analysis of the key objectives, structures, strategies and activities to analyze their key performance. The combined performance includes sustainability performance, sales growth and innovation to achieve long-term sustainable business success. The last part of the report provides the justification for the selected performance dimensions based on both organization analysis and management accounting theory.

Organization overview Haigh’s Chocolates is a private company which was established in 1915 by Alfred E Haigh. It is an Australian confectionery industry organization offering excellent chocolate and has over 600 employees that works between the factory, administration 18 retail stores related items to consumers in Adelaide, Melbourne and Sydney (Haigh’s chocolate 2018). The company focuses on its quality chocolate manufactory and signature products development.

Objectives Organizational objective refers to the goal setting that an organization seeks to achieve. Proper objectives help an organization reach its overall strategic goals which is reflected and defined into its key performance dimensions (Rezende & Nogueira 2010). Haigh’s Chocolate is a member of community projects and environmental causes, so the sustainable practice would be included as one of its main objectives. The company also focuses on innovation in the manufacturing processing in relation to the sustainable packaging and high quality chocolate. As

1|Page

Ruishen Shen

13152487

a result, they further relate these fundamental aspects to the customer experience, and intend to maximize customers’ satisfaction and thus improve its financial results.

Strategy and Structure In the terms of taste and service, the company always try to cater to the customer which worked in favor of customers in the best possible way. They also have been think the benefit of all its employees, customers, shareholders, the community and the environment. The expansion and franchising of specialty chocolate stores is forecast to help reduce the costs and make the availability of high quality inputs.

CEO Alister Haigh

CFO Simon Haigh

Sourcing -suppliers -cocoa sourcing

Manufacturing -inventory -factory processing

Logistics -Transform -Deliveries

Sales -Retail shop -online shopping

Competitive strategy Competitive strategy is the process of developing the potential market and implement the strategy which aims to become a competitive advantage (Fleming, Chow & Chen 2009). The advantage of Haigh remains competitive through its strong brand loyalty and high quality 2|Page

Ruishen Shen

13152487

products, which according to their wide variety of chocolates in attractive package. Additionally, they also held popular tours to the factory for the public to enlarge its brand loyalty by making manufacturing process more transparent and trustworthy. Haigh’s chocolate operating their own locally shops and the strategy would be locally friendly in order to maximize domestic customer’s satisfaction. From the sustainability edge, Haigh’s has taken an industry lead on sustainability section which would further distinguish itself from its competitors.

Activities Operations activities are the clusters of goals and objectives to be completed which the decisions to be taken by the organization to meet their performance and decide what management they should continue (Kaynak 2003). Haigh’s chocolates set up their factory in Adelaide, South Australia at two sites located on the city fringe. And they begins with sourcing cocoa beans from around the world and bring to factory for roasting and production. They transport the all types of chocolates to their numerous in different cities of Australia. Due to the positioning in the city, they also provides the gifts service in Australia where they arrange local deliveries on time with carefully package. In addition, they encourage customers to use their website to collect information about Haigh’s chocolates and how to make chocolate which they provide video in YouTube channel.

Performance defining and justification Organizational performance involves the results of achieving organization objectives and analyses the implement of strategies (Otley 1994). For Haigh’s chocolate, there are four dimensions are defined as customers, sustainability, innovation and financial.

3|Page

Ruishen Shen

13152487

Sustainability performance Haigh’s chocolate has always promoting their packaging and product are simple, effective and reliable which they are aiming to minimize using the detrimental products and promote the usage of the recycle environmentally friendly products to the customers and community. As the result of the Australian packaging convent organization rank, Haigh’s chocolates are in advance level. Haigh’s chocolates has been use sustainable approach to sourcing to respond to the issue. Sustainability business development can benefit firms economically boost which effect its performance. Due to the social value, the environmental responsibility has become of prime importance concern in the modern business around the world (Klovienė & Speziale 2015). Throughout the sustainable business developmental plan, it would be connected by the social, and environmental factors together, which sustainable practice is the long-term development that are necessary for the company (Contrafatto & Burns 2013). Moreover, the firms often use fresh rainwater in their production processes, thus these operations can improve organizations’ sustainability. As a result, when the company adopts sustainable green production process, it improves the performance efficiency in applying differentiation strategy (Walker et al. 2018). Innovation performance New and innovative technology which can helps the business improve its performance through a change in the production process and method (Kaplan & Norton 1993). Haigh’s always aiming to delivering a world-class chocolate experience, so the factory teams use exclusive technique skills with the latest in modern manufacturing. They are effectively applicate technological features to reform the industry, so this would be the success of the company to depend on the approach of its

4|Page

Ruishen Shen

13152487

designs high quality innovative products for its customers. It is claimed that the innovation process including advanced technology, operating process and employees’ skills are essential and vital for the improvement of competitive advantages (Gianni, Gotzamani & Tsiotras 2017). More importantly, the success of business under the differentiation strategy is tightly related to the innovation perspective (Williams et al. 2017). Customer performance Haigh’s chocolate would value customers’ expectation and always focus on providing customer service to build long-term relationships as important as creating quality products (NAB 2016). According to the big spend comes as more Australians are online shopping than ever before, with purchasing rising 11.5% in the past year, and the chocolate lovers will spend more money into sweet taste, this would increase Haigh’s chocolate sales increase. Since 2014, Haigh’s chocolates seeks the steady online sales growth and they has been pleasantly surprised at online ordering increasing and they aims to supply customers best service around Australia without having a store. The products quality, service efficiency and store environment are all important in improving customer satisfaction and brand loyalty (Chavez et al. 2015). This dimension is defined as the result of organization effort that influence external perspectives (Ferreira & Otley 2009). The market share growth in the domestic market as mentioned also proves the significant of the effort on customer perspective in generating the satisfied final result of overall performance (Otley 1999). Financial performance Due to the company’s business model and the expansion of new store, the retail sales would growth as well as online store experiencing volume growth. Some of city do not have physical 5|Page

Ruishen Shen

13152487

store so they become a largest sales online market. Therefore, through the consumers shopping behavior are changing and evaluating of payment method, and the organization’s competitive strategies, innovation of technology and applying the sustainable practice to satisfy the social value, it is the evidence the importance of financial performance as the company’s terminal outputs. Thus, financial performance can indicate the comprehensive operating results of the organization (Siska 2015) and acknowledge shareholders their returns of investments (Ferreira & Otley 2009). Therefore, with the four defined dimension, the dynamic power among them creates the advantages to satisfy the internal and external requirements (Gross & Perotti 2017). The financial and non-financial dimensions together promote both short-term and long-term goal achievement (Vaivio 1999).

6|Page

Ruishen Shen

13152487

Reference Chavez, R., Yu, W., Gimenez, C., Fynes, B. & Wiengarten, F. 2015, 'Customer integration and operational performance: The mediating role of information quality', Decision Support Systems, vol. 80, pp. 83-95. Contrafatto, M. & Burns, J. 2013, 'Social and environmental accounting, organisational change and management accounting: A processual view', Management Accounting Research, vol. 24, no. 4, pp. 349-65. Ferreira, A. & Otley, D. 2009, 'The design and use of performance management systems: An extended framework for analysis', Management Accounting Research, vol. 20, no. 4, pp. 263-82. Fleming, D.M., Chow, C.W. & Chen, G. 2009, 'Strategy, performance-measurement systems, and performance: A study of Chinese firms', The International Journal of Accounting, vol. 44, no. 3, pp. 256-78. Gianni, M., Gotzamani, K. & Tsiotras, G. 2017, 'Multiple perspectives on integrated management systems and corporate sustainability performance', Journal of Cleaner Production, vol. 168, pp. 1297-311. Gross, C. & Perotti, P. 2017, 'Output-based measurement of accounting comparability: A survey of empirical proxies', Journal of Accounting Literature, vol. 39, pp. 1-22. Haigh's Chocolates, Haigh's Chocolates, viewed 20 August 2019,

Kaplan, R.S. & Norton, D.P. 1993, 'Putting the Balanced Scorecard to Work', Harvard Business Review, vol. 71, no. 5, pp. 134-47. Kaynak, H. 2003, 'The relationship between total quality management practices and their effects on firm performance', Journal of Operations Management, vol. 21, no. 4, pp. 405-35. Klovienė, L. & Speziale, M.-T. 2015, 'Is Performance Measurement System Going Towards Sustainability in SMEs?', Procedia - Social and Behavioral Sciences, vol. 213, pp. 32833. Otley, D. 1994, 'Management control in contemporary organizations: towards a wider framework', Management Accounting Research, vol. 5, no. 3, pp. 289-99. Otley, D. 1999, 'Performance management: a framework for management control systems research', Management Accounting Research, vol. 10, no. 4, pp. 363-82. Rezende, J.d.C. & Nogueira, A.R. 2010, 'Strategic Alignment, Performance, and Value', Latin American Business Review, vol. 11, no. 4, pp. 339-63. Siska, L. 2015, 'The Concept of Management Control System and Its Relation to Performance Measurement', Procedia Economics and Finance, vol. 25, pp. 141-7. Vaivio, J. 1999, 'Exploring a `non-financial' management accounting change', Management Accounting Research, vol. 10, no. 4, pp. 409-37. Walker, R.M., Lee, M.J., James, O. & Ho, S.M.Y. 2018, 'Analyzing the Complexity of Performance Information Use: Experiments with Stakeholders to Disaggregate Dimensions of Performance, Data Sources, and Data Types', Public Administration Review, vol. 78, no. 6, pp. 852-63.

7|Page

Ruishen Shen

13152487

Williams, A., Kennedy, S., Philipp, F. & Whiteman, G. 2017, 'Systems thinking: A review of sustainability management research', Journal of Cleaner Production, vol. 148, pp. 86681.

8|Page...