Welcome to Lucky Lanka PLC

Lucky Lanka Milk Processing PLC

Group Assignment Principles of Management (BM102)

Application of Management Theories in Sri LankanBusiness Organizations.

Overview

Company Background

Planning and Decision making

Organizing

Leading

Controlling

Managerial Issues

Suggestions of the group

Company Background

More famously known as “Lucky”, it is Sri Lanka’s favorite dairy products manufacture, currently manufacturing yoghurts and pasteurized milk. It is in the forefront innovating nutritious products in diverse tastes and flavors.

Welcome to Lucky Lanka…

Company Background

History

Company has started the journey back in 1991 as a small

scale business with a single household cow.

At that moment the industry only produced 30 to 40

vanilla yoghurt to the market.

The yoghurts were taken to the shops nearby

Kamburupitiya by motor bikes.

Company Background

Present

Lucky Lanka has storage facilities for 30000 liters

of milk and they collects 15000 to 20000 liters of

milk from farmers.

There are about 115 delivery vehicles that

distribute hundred thousands of dairy products.

Their product portfolio includes 35 products such as Vanilla, Chocolate, Strawberry yoghurts, pasteurized Milk bottles and Milk packets.

Company Background

Products

Chairman

Mr. Lal keerthi Gunwardhana

Company Background

Chairman of the Lucky was winning the Platinum Award From SriLankan Entrepreneur of the year.

Planning and Decision Making

What is planning?

Planning and Decision Making

“Planning is generally defined as a process of establishing suitable objectives & strategies for an organization’’

Lucky Vision

Lucky Mission

“We are Stepping Towards the World of Prosperity with Lucky”

"Vision 2020 Global Lucky"

Planning and Decision Making

Goals & ObjectivesTo provide the best quality all natural and certified products.To make our consumers and milk producers aware on the value of protecting the environment and of supporting family farmers.To serve as an environmental friendly business model which is sustainable and being socially responsible that will also be profitable.To provide a healthful & pleasant work place for all employees.

Planning and Decision Making

Planning and Decision Making

SWOT AnalysisStrengths• Providing a quality product for a

very reasonable price.• 115 delivery vehicles.• Good brand name.• Great leadership

Opportunities• Emerging customer needs.• Quality improvements.• Opening new branches.

Weaknesses• Milk cannot be stored more than

72 hours.• Poor condition of roads around

the mother branch of Lucky Lanka.

Threats• New entry by competitors.• Emergence of cheaper

competitors.• Shifting demand.• Rapidly increasing trend of

inflation in Sri Lankan economy

Strategic PlanThe main purpose of creating strategic plans is to achieve large scale objectives. Accordingly Lucky Lanka’s operation managers prepare strategic plans their plan limit between 6 - 14 months.

Strategic plans of Lucky LankaZero employee layoff Excellent service to customerEnough money return on investment Constant improvement of the quality of all products

Planning and Decision Making

Organizing

Organizing

What is Organizing?

Organizing can be viewed as the activities to collect and configure resources in order to implement plans in a highly effective and efficient fashion. Organizing is a broad set of activities, and often considered one of the major functions of management. Therefore, there are a wide variety of topics in organizing.

Organizing

Chairman

General Manager

Director Stores

Purchasing manager

Stores Manager

Director Finance

Director Operations

Manager Security Q.A. Manager

Director Of Marketing

Regional Sales Manager

Marketing Servicing Manager

Director Engineering

Wide span Wide structure.

Decentralized FormalizedMore hierarchical levels

Organizing

DEPARTMENTALIZATION

PRODUCTION DEPARTMENT

OPERATION

STORS DEPARTMENT

PRODUCTION

TRANSPORT DEPARTMENT

STORES

FINANCE DEPARTMENT

OPERATIONAL DEPARTMENT

COLLECTION

IT DEPARTMENT

MARKETING

HR DEPARTMENT

MARKETING DEPARTMENT

FINANCE

CHAIRMAN

LUCKY LANKA

Leading

Three types of leading methods to achieve their goals,

1. Leadership2. Motivation3. Communication

1.What is Leading?Leading is the management function that involves motivating subordinates influencing individuals or team as they work, selecting the most effective communication channels or dealing in any way with employee behavior issues.

Leading

1.What is Leadership?

Leadership is the process of influencing a group towards the achievement of goals.

Role of Leadership at Lucky Lanka Milk processing PLC

Top management leadership is based on the company’s chairman Mr.Lal Kirthi Gunawardhana who had won the FCCISL Entrepreneur of the year 2011 National Platinum Award for being the best entrepreneur of SriLanka.

Leading

Leading

2.What is Motivation?

Motivation is the driving force based on positive feelings that produces goal directed action in individual and the firm. It is the necessary to reward goal directed action to ensure repetitive behavior towards the goal / goals in the organization.

Leading

Provide a satisfactory working environment.

Provide with an insurance policy and medical facilities.

When recruiting employees an initial training is provided.

maternity leave are entitled for Women employees

Safety clothing and other protective equipment are provided.

Latest technology is introduced to make employees more enthusiastic on their work.

How They Motivate Employees

3.What is Communication?

Internal communication refers to the exchange information and ideas within an organization. in most business, much information can be exchanged internally by,

Displaying notice.Sending e-mailsGiving announcementGiving telephone calls

Leading

Controlling

Controlling

What is Controlling?

A process of monitoring performance and taking action to ensure desired results. It seems to it that the right things happen, in the right ways, and at the right time.

Purpose Of Controlling

Adopting to environmental change

Limiting the accumulation of Error

Minimize cost

Cope with organizational complicity

Controlling

Establish Standards

Change standards

Compare performances and standards

Measure performance

Maintaining status

Correct the deviation

Evaluate performance and

take actions

The Controlling Process

Controlling

Managerial Issues

The most obvious and damaging issues are the storage issues. The main ingredient that uses to make yoghurt is fresh milk. Milk cannot be stored more than 72 hours even in Refrigerators.

The demand for refrigerated foods and beverages decrease during raining season because customers reject cold foods due to the weather condition. But the yield of milk from cows get increased due to the fresh food they consume

Some times the production process crash due to the failures in major machineries that have been used in production process.

The company has to bear great expenditure to maintain to high rank officers who come from far away areas.

A large amount of money and effort has to be spent on transporting plastic waste to recycling facility that is located some what far away from the production unit.

Managerial Issues

Suggestions of the Group

To manage milk in rainy seasons, we recommend start producing milk powder

from the excess amount.

To save the amount of money that is reserved for the managers that come from

various areas, we recommend building new accommodation facilities close to

Lucky Lanka factory.

To overcome the Plastic waste transportation problem we recommend them to

build a new recycling facility inside the factory.

To overcome the problems that could occur due to brake down of major

machineries, we recommend them to keep a stock of spare parts of them in

order to take necessary actions as soon as possible.

Suggestions of the group

Thank You all for lending us your kind ears!