Bellamy's Organic Australia: Evaluating Structure, Leadership Style

This report provides an in-depth analysis of Bellamy's Organic Australia, a leading food and beverage company, focusing on its organizational structure, leadership style, and business strategies. It begins with an overview of the growing organic food industry in Australia, highlighting the increasing demand and market value. The report then delves into Bellamy's organizational structure, identifying it as a divisional structure due to its widespread operations across different geographical locations. The leadership style is characterized as democratic, emphasizing employee involvement and a diverse workforce. Furthermore, the report examines the company's strategies, including its unique product offerings, targeted demographics, social media presence, and sustainable growth initiatives. The analysis concludes that Bellamy's divisional structure and strategies are well-suited to its operations and contribute to its competitive advantage in the organic food industry. Desklib provides access to similar solved assignments and past papers for students.

Running Head: ORGANIZATIONAL STRUCTURE 1
Organizational Structure: Bellamy’s
Organic Australia

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Table of Contents
Introduction to Report................................................................................................................................3
Industry and Company Description.............................................................................................................3
Company’s Structure...................................................................................................................................4
Leadership Style..........................................................................................................................................6
Company’s Strategies..................................................................................................................................6
Comment on Structure and Strategies........................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10

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Introduction to Report
A systematic organization structure and effective leadership are two most important components
of a company’s business operations and processes. Effective leaders bring all the team members
together and allow them to work together so that it can achieve a common objective. Leadership
style has a positive and huge impact on organizational structure. It enables the organization to
create and manage its business activities effectively (Lasserre, 2017). It allows the firm to
produce positive results. This report is emphasized on the evaluation of different company
aspects of Bellamy’s Australia Organic Food Company. Bellamy’s Organic Food is a primary
food and beverage organization in Australia. This paper discusses about the company’s structure
and leadership style. Furthermore, it emphasizes on company’s strategies that it adopts in
Australia and in other nations. In the last section, comments are made on structure and strategy
of Bellamy’s Australia Company.
Industry and Company Description
With the passage of time, the demand for organic food in Australia is increasing significantly. It
can be analyzed by the fact that more farmers are making switch from conventional farming to
organic farming. According to the report of IBIS World, the organic industry in the country is
growing at a significant rate and it has been valued at $9.19 million. The figures indicate that the
sector has grown by 17% in last three years (McCarthy, 2016). This growth is due to entrance of
more farmers in this market. This is the fastest growing food sector in the country. The
Australian organic food industry is coming from a small base. But still, the indications are
emerging that this sector is seeing strong growth and it will quickly capture the United Kingdom
and United States who are the leaders in $50 billion international organic industry. In Australia,
there are various certified organic producers that are growing their operations at a rate of around
70% a year (McCarthy, 2016). The customers in this country are becoming very complex in their
decision making regarding food and have better choices. Among them, organic food products are
seen as necessity due to greater concern of consumers about the convenience, food safety,
environment and inherently changed organisms.
The chosen organization i.e. Bellamy’s is one of the major players in organic food industry in
Australia. Bellamy’s Australia is a leading food and beverage firm in Australia and it is the

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parent organization of Bellamy’s organic that is operating its business as the largest organic
infant formula manufacturer in the country. Bellamy Group has started as Bellamy’s organic in
Tasmania in the year 2003. In the year 2007, it was bought by Tasmanian Pure Foods that was a
private business set up to make investment in and to develop Tasmanian agribusinesses and food.
In the year 2014, it was named as Bellamy’s Australia (Bellamy’s Organic, 2018). Bellamy’s
Organic is an organic baby food and infant formula producer. This organization is a subsidiary of
Bellamy’s Australia. Currently, it offers its products and services in various nations like China,
Australia, Malaysia, Vietnam, Singapore and New Zealand.
Company’s Structure
Nowadays, every company has to develop a systematic structure to stay competitive in fierce
competitive conditions. By developing this structure, the company is able to make clarity about
its objectives and it focuses on that all the people in organization are aware about their roles and
responsibilities at their workplace (Fairfield, 2016). The structure of a firm creates an effective
flow of communication between top management and their junior level employees. It is very
important for an organization to develop an organizational structure so that it can manage its
tasks and responsibilities.
In order to survive in competitive business world, Bellamy’s Organic has created a systematic
company’s structure which supports it to organize the jobs and responsibilities of its people. By
looking at its business operations, it can be stated that Bellamy’s is following a divisional
organizational structure as the company has its business activities in different locations like
Hong-Kong, South-East Asia, Shanghai etc. In addition to this, the parent company has several
subsidiaries so company has developed its structure accordingly (Lee, Kozlenkova, and
Palmatier, 2015). Divisional structure is the type of company’s structure that is usually
implemented by the large scale companies which has their business operations in different
locations worldwide. It consists of many teams and workforces associated which focus on a
single product category.

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Bellamy’s Organic Company is running its business processes like a large-scale organization in
Australia and other nations so this type of structure is the most appropriate structure for this
company. This type of structure helps the company to divide a huge team into small teams. All
of these teams of company are emphasized on the organization food production process of
Bellamy’s. The above-diagram displays the all the divisions and subsidiaries of Bellamy’s and
all of them are regulated by Bellamy’s Australia Limited (Lin, 2014). All the divisions are
offering food products. Among them, Bellamy’s Organic (Hong Kong) and Bellamy’s Organic
(South-East Asia) offer organic products. Bellamy’s Australia Limited has given all the duties
and authorities to handle other subsidiaries of the company.
One of the major reasons behind adopting divisional organizational system is that it enables the
Bellamy’s to focus on its organic food offering in several geographical areas. It works as a
roadmap that assists the company to achieve its objectives. By using this, the company is able to
create a system for communicating with its different divisions and levels. Furthermore, this
structure describes the extent of control and allocation of authority. Till now, the company has
spread its business in various locations like China, Australia, Malaysia, Vietnam, Singapore and

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New Zealand so use of other structure is not good option for this (Lee, Kozlenkova, and
Palmatier, 2015). It helps the company to grow and expand its business as it speeds up the
development of divisions.
Leadership Style
Leadership style is a way to give direction, implement plans and motivate the people employed
in an organization. The process of leadership includes establishing the mission and vision,
sharing this with the staff so that they can attain this mutually. In an organization, it is very
important to adopt effective leadership style to enhance the balance and coordination among its
team members (Goleman, 2017). In its business processes, the leaders at Bellamy’s use
democratic style of leadership which helps them to direct all the teammates efficiently.
Democratic leadership is a leadership style in which a leader shares his/her decision making
abilities with its followers by encouraging them to support the organization by giving their
contribution.
By assessing the leadership and management process of Bellamy’s Organic, it can be said that
this organization adopts democratic style of leadership as its leaders give equal opportunities to
all the people who belong to different location and culture (Holten and Brenner, 2015). The staff
at this firm has various competencies and skills to create responsible and talented workforce.
Bellamy’s Organic has established a company culture which inspires the people to use their own
skills, abilities and competencies to improve its performance.
In addition to this, this firm promotes a working environment that includes workforce diversity
like a primary ingredient of organizational culture. By adopting democratic leadership style, the
leaders at Bellamy’s engage all levels of management in process of decision making. It is a great
motivational factor for the employees as they think that their organization involves them and take
their opinion in company’s important decisions. Additionally, the company provides a safe and
comfortable working environment to its employees (Genovese, 2017). The employees are
actively engaged in producing organic baby foods for the company. Thus, it can be stated that
Bellamy’s leadership style is emphasized on improving the team efforts so that company can
approach its objectives.

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Company’s Strategies
In order to operate its operations effectively, Bellamy’s Organization has developed and
implemented several strategies in Australian and other emerging markets (Goldman, Scott and
Follman, 2015). The strategies adopted by the company helps it to achieve company’s objectives
and competitive edge against other players in Australian organic food industry. The company
changes its strategies and tactics according to its operations. Bellamy’s Organic has adopted
several strategies and tactics that are stated below:
Unique Product Offering and Value Proposition
It is one of the major strategies of Bellamy’s Organic that it offers unique products to its
customers and by using an effective value proposition. The organization is largest organic
formula and baby food organization that offers over 40 products so that it can fulfill the needs of
babies from their birth to 3 years. It is a pure organic business that only offers certified products.
This is a brand that appeals both the heart and head. The core proposition of company is not a
simple marketing line but it is truth that booms with all mothers everywhere i.e. “A Pure Start of
Life”. The company is using this slogan in Chinese markets as well (Ford, 2017).
Selection of Unique Demographics:
Under its segmentation and target marketing strategy, the organization has chosen unique
demographic market. It offers its products targeting the women aged 25 to 35 years and underlies
the food product safety. The company has considered that over 70% of the mothers feed in first 6
months (Kruger, 2017). In the country, there is an increase in the middle class people so it is
profitable for company to target them.
Social Media Strategy:
In addition to above, Bellamy’s Organic has adopted effective social media strategy so that it can
approach a larger population in the country and worldwide. In the country, the company has
developed a strong social media platform that assisted it to attain number one brand across
various interfaces like Twitter, Youtube, Facebook, SEO and Internet.
Sustainable Growth Strategy:

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The sustainable growth strategy of the company is to deliver the sustainable growth by
leveraging from its objective of becoming a leader in organic food for babies cross Australia,
South-East Asia and China so it creates a platform for penetrating to new and emerging markets,
products and geographies (Wheelen, et al, 2017). The company has created a sustainable
platform to attain long term growth. The company is using this strategy in overseas market as
well.
Thus, Bellamy’s Organic develops and implements various impactful strategies which enable the
organization to enhance its processes and achieve its goals. These are the major tactics which
help the company to generate more revenues and profits in Australian and global organic food
industry. With the help of these strategies, the company will be able to gain more competitive
advantage over its rivals in the industry.
Comment on Structure and Strategies
As mentioned above, the products of Bellamy’s Organic are designed to fulfill many touch-
points for when parents need assistance. The company delivers its products by establishing a
robust supply chain process. Considering the widespread operations and diverse locations of
Bellamy’s, it can be said that division type of organizational structure is best suited for this
because it is doing well in company’s operations. It helped the company to develop a systematic
framework to define the roles and responsibilities of staff members (Cummings and Worley,
2014). Divisional company structure allows Bellamy’s to emphasize on its objectives through
allocation of authority. It has enhanced the communication process and decision making within
the company.
Looking at the increasing concern and demand for food safety, it is good and profitable for
Bellamy’s Organic to offer unique products with unique proposition. It attracts the people who
are very conscious for their babies’ health. This organization has used effective and efficient
strategies which assist the organization to stay competitive in today’s business world. The
products of company are focused on unique demographics that increase its customer base
(Morschett, Schramm-Klein and Zentes, 2015). The company is using effective social media
strategy so that it can reach to large population all over the world as a significant percentage of
world population is actively using social media networks. Thus, the above structure and

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strategies enable Bellamy’s Organic to become largest organic food and infant formula producer
in Australia.
Conclusion
In the limelight of above report, it can be concluded that Bellamy’s Organic Company is the
largest organic food producer in Australia. The company has managed its operations and
processes by using effective company’s structure and strategies. Bellamy’s is using division type
of organization structure that assists the organization to manage the operations of its subsidiaries
in different locations. Moreover, the company adopts democratic leadership style through which
it motivates the people to engage in decision making process. To make a sustainable competitive
advantage, the organization has adopted effective strategies that enhanced company’s operations
and other business processes.

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References
Bellamy’s Organic, (2018) Bellamy's Organic: Organic Baby Formula, Food & Snacks,
Available from https://www.bellamysorganic.com.au/. [Accessed on 31 May 2018].
Cummings, T.G. and Worley, C.G. (2014) Organization development and change, UK: Cengage
learning.
Fairfield, K.D., (2016) Understanding functional and divisional organizational structure: A
classroom exercise. Management Teaching Review, 1(4), pp.242-251.
Ford, S. (2017) China expert John Ho at Bellamy’s Australia helm, Available from
https://www.theadvocate.com.au/story/4673066/china-expert-bellamys-leader/. [Accessed on 31
May 2018].
Genovese, M. (2017) The Presidential Dilemma: Revisiting Democratic Leadership in the
American System. Routledge.
Goldman, E.F., Scott, A.R. and Follman, J.M. (2015) Organizational practices to develop
strategic thinking. Journal of Strategy and Management, 8(2), pp.155-175.
Goleman, D. (2017) Leadership That Gets Results (Harvard Business Review Classics). Harvard
Business Press.
Holten, A.L. and Brenner, S.O., (2015) Leadership style and the process of organizational
change. Leadership & Organization Development Journal, 36(1), pp.2-16.
Kruger, C. (2017) The new strategy from Bellamy's Australia boss Andrew Cohen: Let's actually
make something, Available from https://www.smh.com.au/business/the-new-strategy-from-
bellamys-australia-boss-andrew-cohen-lets-actually-make-something-20170612-gwpqnl.html.
[Accessed on 31 May 2018].
Lasserre, P., (2017) Global strategic management. Macmillan International Higher Education.

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Lee, J.Y., Kozlenkova, I.V. and Palmatier, R.W., (2015) Structural marketing: Using
organizational structure to achieve marketing objectives. Journal of the Academy of Marketing
Science, 43(1), pp.73-99.
Lin, L.H., (2014) Organizational structure and acculturation in acquisitions: Perspectives of
congruence theory and task interdependence. Journal of Management, 40(7), pp.1831-1856.
McCarthy, M. (2016) Australia's organic industry worth almost a billion dollars, as demand from
high income earners soars, Available from
http://www.abc.net.au/news/rural/2016-10-28/organic-industry-approaches-billion-dollars-as-
demand-increases/7973834. [Accessed on 31 May 2018].
Morschett, D., Schramm-Klein, H., and Zentes, J. (2015) Strategic international management.
UK: Springer.
Wheelen, T.L., Hunger, J.D., Hoffman, A.N. and Bamford, C.E., (2017) Strategic management
and business policy. pearson.

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