Question

In: Accounting

Okanagan Orchard Products Limited is a manufacturer of jams and jellies. It distributes its products to...

Okanagan Orchard Products Limited is a manufacturer of jams and jellies. It distributes its products to food retailers across Canada. Okanagan’s objective is to be the number one distributor of its product lines in Canada. Okanagan competes against a limited number of Canadian companies, but also must compete against several large American food manufacturers. It seeks to increase market share through the delivery of quality products. It believes it can achieve its objectives through high quality control in its manufacturing processes, improved efficiency (particularly relating to yields), and innovation of its products. Okanagan has had problems with employee turnover, both in production and administration. It pays competitive wages but still has struggled managing employee turnover. Employee surveys have determined that employees do not believe the company provides adequate training or support and that employees are unaware of opportunities for advancement. Required:

1. Create a balanced scorecard for Okanagan Orchard Products Limited using the traditional four perspectives.

2. What types of sustainability measures would you recommend for Okanagan?

3. What specific measures could Okanagan take to address its employee turnover issues?

Solutions

Expert Solution

(i). Four perspectives of a Traditional balanced scorecard for a Private Organisation are:-

  • Financial
  • Customer
  • Internal Process
  • Learning & Growth
  1. Improvements in Internal Capacity drives Improved Internal Processes.
  2. Improved Internal Process Drives improvement in Customer & Stakeholders Satisfaction.
  3. Improvement in Customer & Stakeholder Satisfaction drives Improved Financial Results.
FINANCIAL CUSTOMER
  • REVENUE
  • EXPENSES
  • ROI
  • NET INCOME
  • CUSTOMER SATISFACTION
  • CUSTOMER RETENTION
INTERNAL PROCESS LEARNING & GROWTH
  • QUALITY CONTROL
  • INVENTORY
  • PRODUCT LEAD TIME
  • EMPLOYEE SKILLS
  • EMPLOYEE TRAINING
  • EMPLOYEE RETENTION
  • SATISFACTION

(ii). Types of sustainability measures recommended for Okanagan are:-

  • Food Safety:- Jam & Jellies are the types of products that are being characterized by low water activity and a low pH. Special consideration should be given to low or no sugar jams & jellies they have special food safety & quality issues. All pH control acidified food products must be produced under the supervision of a person who has attended an FDA approved "better process control school.
  • Good Manufacturing Practices:- Proper sanitation and current Good manufacturing practices should be implemented whenever processing food for public consumption.
  • Managing the supply chain:- Addressing many of the environmental and social challenges within an agriculture supply chain requires cooperation among companies at different stages of the supply chain.
  • Workers & Community:- Workers, Specially women & migrants, may face unfair pay, discrimination & limited freedoms. They may also be exposed to dust, chemicals, or other industrial hazards. Manufacturers should procure materials from suppliers that transparently addresses workers health & safety & labor rights and perform audit whenever needed.

(iii). Specific measures to address employee turnover issues are as follows:-

  • Hire the Right People:- Hire the right people from the beginning. Define the role clearly - both to urself and to the candidate.
  • Fire People who don't fit
  • Keep compensation & benefit current :- Make sure you are paying employees fair going wage for their work and offer them competitive benefits.
  • Encorage generosity & gratitude.
  • Recognize & reward employees
  • Offer Flexibility
  • Pay attention to engagement
  • Priortize employee happiness
  • Make opportunities for development & Growth
  • Provide an inclusive vision.
  • Demonstarte & cultivate respect.

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