Digital Transformation in the Food Industry: A Case Study Analysis of LEASUN

This report analyses the impact of digital transformation on LEASUN, a canned food company in China. It examines the challenges faced by the company in implementing digitalization and proposes strategies to mitigate them.

Case Study Analysis

Executive summary
The main idea of carrying out this report is to understand the basic concept of digital
transformation and how it helps the company in achieving growth in the competitive food
industry. In this particular research report it has been evaluated that how LEASUN company
implements digital transformation in their business. The main objective of the company is to
know the impact of digitalisation on the performance of company and the challenges faced by
company in implementing digitalisation in the business. This helps the company in targeting the
right customers with the right product with he increase in online as well as traditional sales.

Table of Contents
Executive summary..........................................................................................................................2
CHAPTER1: Introduction of the case study....................................................................................4
Statement of the problem........................................................................................................4
Research aim and objectives..................................................................................................4
Structure of the report.............................................................................................................4
CHAPTER 2: Case brief: Description of the situation....................................................................6
Chapter 3- Problem statement and plan of analysis.........................................................................7
To study the concept of digital transformation in context of food industry...........................7
To examine the effect of digital transformation on the performance and productivity of
LEASUN................................................................................................................................7
To determine the challenges faced by LEASUN while implementing digital transformation
within the food industry..........................................................................................................8
Chapter 4: Analysis & Findings.....................................................................................................10
Theme 1- To analyse the concept of digitalization..............................................................10
Theme 2- To identify the challenges faced by LEASUN in adopting digitalisation within their
company...............................................................................................................................10
Theme 3- To analyse strategies to mitigate the challenges faced by LEASUN while adopting
digitalization.........................................................................................................................11
Chapter 5. Proposed solution to problem ......................................................................................12
REFERENCES..............................................................................................................................14

CHAPTER1: Introduction of the case study
Statement of the problem
There are several problems that the company face at the time of implementing digital
transformation such as less value added food products, unclear indicators of growth, ineffective
supply chain and high rate of homogenization. This results in lowering the profit margin of the
company and customer demand for food products in the competitive canned food industry. The
company is providing various different food and beverages to customers in market but the main
problem is not having advanced technology and limited budget (Vogelsang and et. al., 2019). It
is important for the company to know the demand for canned food products in the overall market
of China and in determining the recent trends of digitalisation.
Research aim and objectives
Research aim
To identify the impact of digital transformation on the productivity and performance of
an organisation within the food industry. A study on LEASUN
Research objectives
 To study the concept of digital transformation in context of food industry
 To examine the effect of digital transformation on the performance and productivity of
LEASUN
 To determine the challenges faced by LEASUN while implementing digital
transformation within the food industry
Structure of the report
The present research is based on a particular structure which is defined as under:
Chapter 1- Introduction to the case study – In the introductory chapter the researcher will
interpret the problem of research, research aim and objectives based on the case study and
structure of the research report.
Chapter2- Case brief: Description of the situation – Case brief helps in summarising the
detailed information mentioned in the case study like what issues the company faced and what
measures they adopted in managing the problems.

Chapter3- Problem statement and plan of analysis – This particular chapter helps in
collecting information from different articles, websites and so on so that research objectives can
be addressed properly.
Chapter 4- Analysis and findings – This chapter defines about the current problems faced by
company in the type of main findings related to topic.
Chapter 5- Proposed solution to problem – This chapter cover several recommendations that
help company in solving business issues. It also address scope and limitations of research.

CHAPTER 2: Case brief: Description of the situation
LEASUN food company is considered to be one of the renowned and largest canned food
business in China. They are mainly focusing on improving their sales and profitability in the
competitive market with the help of digital transformation. For implementing digital
transformation in the company, they started collecting suitable data from consumers, adopted
services related to cloud computing, created their digital centre and many more. Some of these
changes helps the canned food company into a leading Chinese brand on both online and
traditional platform. The senior managers of the company also thinks that consumers must be the
main criteria for delivering and making product as they consume the product finally (Soto-
Acosta, 2020). Understanding the digital supply chain is also very essential for both employees
and employers working in the company so that they move the products in the right direction at
the right time. As there is high competition in the China market, it is prominent for the business
organisation to choose the right and effective strategy for marketing their products and services
among customers.
Targetting young age customers is the main purpose or focus of the company as they
believe that young people are more interested and knowledgeable about digital transformation
and results in growing the overall sales of the business (Wang and et. al., 2020). The company
also acknowledge and keep in mind that China is seen to be growing industry in the canned food
products. The company is also trying to build good and healthy relations in the international
market also. For implementing digital technology in companies, the Government of China is also
supporting in transforming their working operations in digitalised form. The main idea of
transforming the workplace into digital is to provide and sell good quality of canned food
products to the customers.

Chapter 3- Problem statement and plan of analysis
The literature review is used to describe about the information from the published sources
related to the topic. It is an important part of any thesis and dissertation and its main role is to
convey reader about the knowledge and ideas which has been already published on a topic along
with their strengths and weaknesses.
To study the concept of digital transformation in context of food industry
According to the view of Dengler and Matthes (2018) digital transformation is the term
which means the process of using digital technologies for creating new or modify existing
business culture, processes and customer experiences for meeting changing business and market
needs. It is important for current digital age for reimagining business. It transcends traditional
roles or functions such as marketing, sales and customer service. Digital transformation helps
company to understand the customers in more detail manner by using technology for fuelling
customer growth as well as creating more customer touch points. It also helps in improving
internal processes by leveraging automation and digitalisation, allowing workers with digital
tools as well as gathering data for monitoring performance and making more strategic business
decisions.
As per the view of Singh, Klarner and Hess (2020) digital transformation refers as the
integration of digital technology into all areas and departments of the business. It fundamentally
change the how company operate and deliver value to the customers. It is also consider as
cultural change that needs companies to regularly challenge the status quo, experiments as well
as get comfortable with failure. It makes company able in order to adapt quickly to supply chain
disruption, time to market pressure as well as rapidly changing customer expectations. There are
several advantages that an organisation can gain through digital transformation. These are
increase in customer satisfaction, deriving data based insights, enables software monetization,
enable high quality user experience, increase agility and so on.
To examine the effect of digital transformation on the performance and productivity of LEASUN
In the opinion of Brunet-Thornton and Martinez (2018) digital transformation creates a
system for collecting the right amount of data and incorporating it fully for the intelligence of
business at higher level. It helps company to improve the performance and productivity of the
business. When the company implement digital technologies with in their organisation that

makes works easier for the company which means that they can perform their task in effective
and fastest manner due to which their performance and productivity of the business in improved.
Today's corporate world is very competitive that create difficulty to operate their business and
survive long term in the market. Digital transformation is an important element that help
company to operate their business more effectively in the competitive environment and improve
their business performance and productivity.
As per the perspective of Dengler and Matthes (2018) digital transformation create
significant impact on the performance and productivity of the business. It enables company to
use various types of digital technology with their business process that provide efficiency and
accuracy to conduct the particular task in fastest manner that leads increase in business
performance and productivity of the company. It may create problem for the company also when
their workers are not aware about its proper uses with their job. It enforce company to provide
proper training to their employees related to the use of digital technology so, they perform their
task in better manner and help in increasing the business performance and productivity.
To determine the challenges faced by LEASUN while implementing digital transformation
within the food industry
According to the view of Björkdahl (2020) digital transformation creates several
opportunities for the company to increase their growth but there are certain challenges that
company faced while implementing digital transformation within their business. The first and
biggest challenge is high cost which means that digital transformation require large amount of
investments which creates budget issues for the company. For getting proper success in digital
transformation, company require more skilled workforce and high performing IT in their
business. Due to lack of current technical worker shortage company also face many difficulties
while implementing digital transformation within their business. The other challenges that the
company may face due to lack skilled IT teams includes application architecture, cybersecurity,
software integration and data analytics.
In the opinion of Brock and Von Wangenheim (2019) there several challenges that a
company faced while transforming their business using digital technologies. It may included
employee pushback, lack of expertise to lead digitisation initiatives, organised structure, lack of
overall digitalisation strategy and limited budget. Rapidly changing customer needs is also a

biggest challenges for a business because digital transformation is not a easy task, it takes many
years for installing and rapidly changing needs cab create a huge loss for the company.
Research methodology
It is used to describe about the methods, approach or techniques that are used by the
researcher for conducting the research in systematic manner as well as resolve problem of
research ((McNabb, 2020). The methods, approach and techniques that are used in present
research are mentioned below:
Research philosophy- Interpretivism research philosophy is used in conducting the
current research. It helps in collecting and analysing in-depth or detail information related to the
topic.
Research Approach- Research used inductive research approach as it allows flexibility,
attends closely to context as well as support the generation of new theory.
Research Choice- Qualitative research choice is used by the researcher as it enable
researcher to identify specific themes and patterns.
Research Strategy- Case study research strategy is selected by the researcher in the
current research as it provide detailed information that help researcher to answer the research
questions (Nassaji, H., 2020).
Data Collection- The researcher used secondary data collection method as it saves
efforts and expenses of researcher while collecting the information.
Data analysis- The research used thematic data analysis techniques in the present
research, it helps researcher to analyse qualitative data for the research in better manner.
Time horizon- Cross-sectional time horizon is selected in the present study for
completing research in limited time.

Chapter 4: Analysis & Findings
Theme 1- To analyse the concept of digitalization
It can be determined that digitalization is said to be the process which promotes to make use of
new technology which tends to bring new opportunities. The new technology will lead to elevate
the level of efficiency in the business (Basaev, 2019). As the information will be changed into
the digital format and it can be seen that digitalization is adopted by most of the companies and
almost all type of industries. Also, in the food industry the term digitalization brings major
chances for example the companies are making use of ecofriendly packaging for food. That
safeguard the environment and the human’s health also. In order to make use of digitalization in
the company the company is required to consult and communicate with the employees. About
using technology and also to estimate the budget required by the company in digitalisation.
Furthermore, examine the number of new employees are required for digitalisation.
Digitalisation is changing the fundaments of the way of life and the society. It helps in changing
the way a company performs its tasks and in that process systems and workflow are the main
part. Due to which the chosen company is able to collect the data of the customers in an easy
manner. Further, it is not short term but the long term process which helps the company to
expand further. As per the market scenario it is correct to say that customers are the king while
the customer services are the queen. In that process the term digitalization has allowed to provide
best quality services to the customers. that is why it is required for the companies to improve
their strategic decision making for running the business and making decision faster.
Theme 2- To identify the challenges faced by LEASUN in adopting digitalisation within their
company
It can be concluded that while implementing the process of digitalization the chosen company
has to face various issues (Calvino and Criscuolo, 2019). As on the basis of the SWOT analysis,
it can be summarised that while making use of technology and digitalisation in the chosen
company. It has to face issues related to the lack of IT workforce. Along with it there are various
issues which are linked with budget related issues. As the company is to make special budget in
relation to promote technology and digitalisation. On the basis of PESTLE analysis of the chosen
company, it can be said that another issues which is being faced by the company is the threat of
data management concern. Such as the problem of hacking, as it can be seen that before

digitalisation the companies were recording their data manually. Under which there used to be
less risk of data but after adopting the digitalisation. It has become easy for the companies to
manage and record data but along with it there will be more chances of hacking. Moreover the
company is also focusing on figuring out the correct process of waste management (Truant,
Broccardo and Dana, 2021).
Theme 3- To analyse strategies to mitigate the challenges faced by LEASUN while adopting
digitalization.
It can be evaluated that there are various strategies which are utilised in order to reduce the
issues while implementing the digitalization in the company. It is must to adopt the digitalization
as it is one of the essential element for growth. In relation to the present case, the chosen
company is facing issues linked with hiring the right employees. So, it is required to appoint the
employees who have the power of deal with all the tasks linked with digitalization. Due to which
the stronger management can be made for the business. As the digitalization is not only a duty of
department whereas it is a function unit which is linked with every area of the business. Another
strategy which company is adopting that is related to the constant changing of the customers’
needs and demand (Martinez, 2019). For that the chosen company can organise the surveys in
order to know the needs and demands of the customers. So that the company can revamp and
mould its plan as per the customers. along with it, the company is also getting aware about the
latest trends in the market. Company is also facing the problem in relation with hacking for
which company should buy the high security system with the aim of keeping the data safe from
hackers. It is suggested to adopt technology to elevate the level of efficiency and productivity.
As digitalisation allows the company to free up the time of employees. The company will be able
to communicate better with the customers as the company will be well aware about the latest
market trends preferred by the customers (Torres and Augusto, 2020). Digitalisation is the key
which allows to keep the company ahead of the competition as compared to the other companies
of the market.

Chapter 5. Proposed solution to problem
As there are several alternatives which are present for the given problem so the company is
required to make use of best alternative (Srai and Lorentz, 2019). So that the issues will be dealt
properly with the target of not happening in the future. Such as there are various issues which are
faced by the chosen company in order to digitalize the company. Along with various preventive
measures are listed below-
 The chosen company belongs to a food industry and the companies which work in this
industry have to target on hiring such employees which have knowledge of serving
customer services. It is noticed that lack of IT skilled workforce in the food industry is
one of the main cause. So, the company is recommended to hire skilled professionals
and its team in each branch of the company. Along with it, the company can also
outsource the employees whenever they need.
 The company has to make sure about the budget related concern as the company must
make a fixed budget by implementing high quality of machines and tools. It can also be
seen that sometimes some tools and machines are costly so, it leads to create a
misbalance in the revenue at the end of the financial year. That is why the company is
required to consult with the business consultant in order to deal with the issues. By
making use of best tools and machines so, the consultant can also suggest the better
options related to the sources of the finance.
 It can also be seen that when the company record all the data by making use of
digitalization then there may be chances to hacking the confidential data of the
customers. Due to which it is suggested to the chosen company that it should target on
updating the software on daily basis. In order to prove safety and no one can hack their
data. It can be seen that data management is one of the complex task to do a company.
Therefore, the company is required to hire such people who will be able to manage the
data efficiently. Digitalization is that process which is linked with converting the
information in a digital manner so that new technology can be brought in the company.
 As per the market situation the needs of the customers are dynamic in nature which leads
to keep on changing continually. That is why the company is required to adopt the
technological tools and machines which will support the company to keep the customers
satisfied. That is why such issues can be resolved by using effective planning in adopting

the process of digitalization. For that chosen company can conduct a meeting and they
can decide the ways in which the company can adopt the ways related to digitalization. In
that process the environment can be scanned to analyse the opportunity for keeping the
customer satisfied.
As per the above information, the chosen company face many challenges such as budget related
problem, issues of employees in IT sector, problem of data management, security issues and
continuous change in the needs and demands of the customers. In order to get rid of such issues
and challenges the chosen company will adopt numerous strategies. For instance appointment
of team, better formation of budget, appoint IT workforce, make use of security system to
protect the data properly (Tajudeen and et.al.,2021). With the help of all these strategies, the
chosen company will be able to successfully adopt the digitalisation. It will lead to enhance the
sales of the company and image of the company in the market.

REFERENCES
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