Goodman Fielder Ltd: Business Innovation and Change Report Analysis

This report provides a comprehensive analysis of business innovation and change management within Goodman Fielder Ltd. It begins with an introduction to the importance of innovation in a competitive market and provides a brief overview of Goodman Fielder Ltd, including its products, operational areas, and historical background. The report identifies key business issues faced by the company, such as financial losses due to rising costs and market competition. A detailed innovative solution, the Flow-through Sortation technique, is presented to address these issues, along with its benefits and application. The report also explores product customization and other innovations. The application of business knowledge across different areas like human resources, operations, and accounts is discussed to implement these innovative activities. Change management strategies, including strategic-level changes and the creation of an innovation-driven culture, are examined to ensure successful implementation. Finally, the conclusion summarizes the findings and emphasizes the importance of innovation in achieving competitive advantage.

Running head: FACILITATING BUSINESS INNOVATION
Facilitating business innovation
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Table of Contents
1. Introduction:...........................................................................................................................3
2. Brief introduction of Goodman fielder Ltd:...........................................................................3
3. Business issues, faced by the firm:........................................................................................4
4. Solution to the problem:.........................................................................................................5
4.1 Provide a detailed description of an innovative idea:......................................................5
4.2 Innovation related to the business:...................................................................................6
5. Discuss how business knowledge is applied to implement the innovative activities for all of
the different areas in the firm:....................................................................................................7
6. Change management:.............................................................................................................8
6.1 Strategic level change required to achieve the innovation:..............................................8
6.2 Type of change that is required in the firm:.....................................................................9
7. Creating culture of innovation:..............................................................................................9
7.1 Strategies to create culture of innovation within the organisation:..................................9
7.2 Motivational skill required during innovation and organisational change:...................11
6. Conclusion:..........................................................................................................................11
References:...............................................................................................................................12
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1. Introduction:
In the intense competitive business environment, innovation is the key factor of
creating a unique position in the market, which paves the way for the firms to attain
competitive advantage. Alexander & Joe (2019) said that innovation is the mode of creating
much more efficient process and ideas, which plays a major role in strengthening the internal
functionality of a firm. By attaining innovation, the firms can change their business model,
which is the key of delivering the customers with better products or services. Thus, it is
important for the firms to consider innovation as an important part of their business, which
can make it easy for the firms to create something new, which can easily drag the attention of
customers.
In addition, Dodgson (2017) also showed that innovation plays a major role in solving
any kind of critical business related issues, which can serve the firms with the ability to run
the internal problem smoothly without any kind of hindrance. The aim of this paper is to
evaluate the innovation to a certain business related issue in the context of Goodman fielder
Ltd. One particular business problem of the organisation will be discussed and innovation for
mitigating the problem will be presented. The mode of change management in order to
accomplish the innovation will also be discussed.
2. Brief introduction of Goodman fielder Ltd:
Goodman Fielder is one of the famous Hong Kong/Singapore-owned Company that
manufactures, markets and distributes various food products like bread, small goods, dairy
products, margarine, and oil along with multiple food ingredients. The main operational area
of the company are Zealand, Australia, New California, Papua Gini and more than 40
manufacturing sites. This is the leading regional food company. In the year 1909, the origin
of Goodman fielder Ltd was extended as Geo Fielder & Co. Earlier, New South Wales was
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good wheat producing region, which had helped the firm to experience massive growth. In
the year 1951, Geo Fielder & Co had become the public limited company and its internal
functionality was expanded in order to expand their business in both domestic and national
level (Goodmanfielder.com. 2020).
The leading product offering of Goodman fielder Ltd is supported by efficient
distribution channels, which are helping the company to deliver high quality of products to
millions of customers. The total number of people, employed by Goodman fielder Ltd is 5000
and now the company is offering their service in more than 25000 outlets. With the assistance
of highly quality of products and excellent service, the company has become able to serve
millions of customers. The products offered by the organisation includes baking ingredients,
bread, dairy products, food garnishing products, poultry, cakes and desserts, snacks and oils
(Goodmanfielder.com. 2020).
This is one of the leading listed food manufacturing companies, who are operating
their business in New Zealand and Asia Pacific. The fundamental vision of the firm is to be
the leading and innovative local food manufacturing company. During 2019, the company
has announced to conduct divestment processes of their products in order to acquire potential
base of customers (Rspo.org. 2020). The company is high committed towards attaining
competitive environment even in the extremely competitive business environment. In order to
catch the attention of customers, the company has lowered the price of products. This is also
helping the company to promote growth of their business.
3. Business issues, faced by the firm:
Being one of the leading food manufacturing companies, Goodman fielder Ltd is
facing certain business issue, which is making it easy for them to run business in a profitable
manner. The company continues to encounter the pressure of running their business in a
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profitable manner. The company has faced massive loss due to extreme price of products.
Over the last 12 months, the rate of loss of Goodman fielder was NZ$ 446 million. Extreme
rivalry in the grocery market and ever increasing cost of milk and wheat are the major factors
that had led Goodman fielder to increase the cost of products, which had resulted in massive
loss for the firm. The loss is intern devastating. In the dairy division of New Zealand, the
company has faced more than 40% drop in normal earning. The fundamental reason for this
devastating loss is increased price of fragmented milk. In the same way, the baking division
of Goodman fielder has also experienced more than 20% drop in regular earning due to huge
cost of wheat and rising cost of transportation (NZ Herald. 2020).
4. Solution to the problem:
As discussed by Frishammar et al. (2019) innovation is the best way to solve any
critical business related issue. This serves the organisation with the opportunity to enter the in
the market faster and create their unique products. Innovation is the best way to have better
connection with developing market, which can serve the organisations with the ability to
avail bigger opportunity to promote growth of business. Thus, in order to overcome the issues
and run business without any kind of obstruction, it is important for Goodman fielder Ltd to
execute innovation. The innovation, which Goodman fielder Ltd can employ is presented
below.
4.1 Provide a detailed description of an innovative idea:
In order to mitigate the issue, it is important for Goodman fielder Ltd to employ Flow-
through Sortation technique. Goffin et al. (2019) commented that this is one of the major tech
innovations, which can help the company to remain profitable by cutting excessive cost of
operation. With the assistance of this innovation, Goodman fielder Ltd can be able to aligning
their distribution centre, sequenced properly, in order to restock the shelves on the same day.
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This is one of the most automated storage and retrieval solution, which can make it easy for
Goodman fielder Ltd to deliver products properly to deliver cost automatically. As the
company is facing issues in the way of increasing statistics of profit, execution of this
innovation can help Goodman fielder Ltd to cut the additional costs of storing and retrieving
as per the requirement as this innovation automates these processes entirely.
As discussed by Martínez-Costa, Jimenez-Jimenez & del Pilar Castro-del-Rosario
(2019) this machine has wheels like structure in order to move around automatically. In
addition, this system also comprises of robotic palletize and de-palletize that provides
flexibility at the time of transporting trays and cases. Therefore, by executing this system,
Goodman fielder Ltd can cut excessive cost of operation. As the price of raw materials such
as fragmented milk and wheat is extremely high, by implementing this system, Goodman
fielder Ltd can cut additional cost of producing and distributing products. In addition, Nylund
(2019) stated that this system also amplifies the efficiency of both manufacturing and
distribution channel, which can help the company to ensure smooth flow of products to the
customers.
4.2 Innovation related to the business:
Stahl et al. (2019) put stress on the fact that innovation is the key of sustaining in the
hard-core competitive business environment. Customisation of products as per the
requirements of customers is to be considered by the firms in terms of attracting the interest
of customers. The trend of customised cake is rapidly increasing. As Goodman fielder Ltd is
a leading provider of cakes, it is important for the firm to understand the need of customers
and make the customised cake accordingly. The baked goods triangle is one of the major
innovations, which Goodman fielder Ltd can employ in order to understand what the
customers really want (Kasemsap, 2017).
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Ahrweiler (2019) highlighted by saying that Freshness, health and taste are three of
the most important things, which the customers want from the bakery product. Therefore, by
executing this innovation, Goodman fielder Ltd can understand the main requirement of
customer and design the cakes accordingly for the sake of generating attention among the
customers. Based on the perception of Silva et al. (2020), it can be said that through this way,
Goodman fielder Ltd can be able to produce high quality of fresh and healthy cake and
thereby increase statistics of profit.
5. Discuss how business knowledge is applied to implement the innovative
activities for all of the different areas in the firm:
As per the perception of Nambisan et al. (2017) innovation is highly associated with
the mode of changing the way of running the regular activity of a firm. This is the way,
through which changing demand of customers can be mitigated by improving internal process
and system. As Goodman fielder Ltd has faced massive loss due to rising cost of raw
material, it is important for them to attain innovation in different areas of business. Staffs are
the key asset of an organisation, based on whom, the rate of productivity and profitability of
an organisation are determined. Thus, it is important for Goodman fielder to generate interest
among the staffs regarding Flow-through Sortation technique. Goffin & Mitchell (2016)
stated that the human resource department of Goodman fielder Ltd should strengthen their
recruitment and selection program to hire skilled and competent staffs, who have passion to
try something new by understanding the organisational vision. This is the way, through which
Goodman fielder Ltd can apply their business knowledge among the human resources.
In order to improve the efficiency of operation, Goodman fielder Ltd should employ
the flow-through Sortation technique in their warehouses. According to Mahmoud-Jouini,
Midler & Silberzahn (2016) this is the way of optimising the flow of material in warehouse,
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through which the company can ensure smooth flow of product in a cost effective manner. As
the company is facing major issues in the way of keeping their business profitable, it is
important for them to attain innovation in accounts department. Apart from automating the
process of storing and distributing products, Goodman fielder Ltd should automate the
accounts department. Trapp, Voigt & Brem (2018) opined that block chain is one of the
major innovation, which Goodman fielder Ltd can employ for the sake of running the process
of digital currency transaction wit utmost efficiency.
6. Change management:
Change is one of the key factors of sustaining in the highly volatile business
environment. This is the key of working in accordance with changing demand of customer.
As Goodman fielder Ltd is going to automate the production and distribution, it is important
for them to change the internal process and culture. However, making such changes can
generate a negative attitude among the staffs, which can create obstruction for the company
to execute innovation (Hayes, 2018). There lies the significance of innovation, which can
serve the firm with the ability to attain innovation properly without any kind of obstruction.
6.1 Strategic level change required to achieve the innovation:
Innovation is one of the major ways of strengthening the value of business by
improving internal process and system. As Goodman fielder Ltd is going to implement new
technique in order to automate the mode of storing and retrieving the products, it is important
for the company to make technological change. The company should implement sensor-based
sorting technologies for the sake of sorting the products properly and thereby manage its
storing and retrieval (Cameron & Green, 2019). This is the way, through which the company
can be able to optimise to quality of food products at the time of maximising the yields. The
company can implement optyx sorter, which is one of the major results of rapidly developing
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digital technology that can help Goodman fielder Ltd to automate the entire production
process and thereby cut the additional cost of human labor. As the company is facing major
issues in the way of increasing their statistics of profit margin, implementation of this
technology can help Goodman fielder Ltd to run the production procedure in a cost effective
manner by cutting excessive cost of human labour (Lozano, Carpenter & Sammalisto, 2020).
6.2 Type of change that is required in the firm:
Change is one of the most important for today’s corporate existence as it helps the
organisations to explore new opportunity and exercise creativity, which ultimately help them
to attain long term success from business. As Goodman fielder Ltd is going to implement
new technique for the sake of automating their production process, this change can be
referred as linear incremental change. In this type of change, the companies put stress on
continuous improvement as a part of their quality management process (Van der Voet &
Vermeeren, 2017). Additionally, through this linear incremental change, the companies also
implement new system for the sake of increasing the degree of efficiency of their business.
This is the way through which Goodman fielder Ltd can be able to promote the innovation
without hampering the existing organisational structure.
7. Creating culture of innovation:
7.1 Strategies to create culture of innovation within the organisation:
Development of culture of innovation is one of the major ways the staffs to take risk
and face uncertainty in order to maximise the efficiency of products. This is the mode of
generating new ideas by going beyond the corporate boundaries. As Goodman fielder Ltd is
going to implement new innovation, it is important for its higher authority to create a culture
of innovation. This is the way of keeping the staffs informed about the innovation.
Collaborate and discover is one of the major strategies, which the higher authority of
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Goodman fielder Ltd can implement in order to develop a culture of innovation in the
organisation. Collaboration is the best way of developing an open-mindset among the staffs
in order to explore new ways of working and thinking (Lewis, Cantore & Passmore, 2016).
Thus, by implementing this strategy, the higher authority of Goodman fielder Ltd can acquire
increased level of participation in decision making process. This strategy plays a pivotal role
in pulling people together and foster innovation.
In the contemporary times, collaboration is one of the major factors of increased level
of motivation. Thus, it is important for the higher authority of Goodman fielder Ltd to
promote collaboration with partners, customers, resellers, and other stakeholders, which can
help them to be competent in implementing innovation. In addition, as Goodman fielder Ltd
will implement new innovation in order to make their process automatic, collaboration can
help them to allow both human and machine to work together.
Building better network is another major strategy, which Goodman fielder Ltd can
implement in order to create a culture of innovation in the firm. This is the process of creating
a platform that can help the staffs to evolve rapidly and innovate. Building strong network is
the best way of enabling the staffs to move towards different functional areas. The higher
authority of Goodman fielder Ltd can execute a collaborative technology for the sake of
building better network and thereby enable the staffs to work in a productive way. By
developing the right platform, the senior management of Goodman fielder Ltd can promote
an organic growth of network, which is very uh needed in order to foster open
communication and effective innovation (Mitra, Gaur & Giacosa, 2019).
Development of motivational skill is another major strategy for creating a culture of
innovation in the organisation. This is the way of driving interest among the staffs and
thereby keep them committed towards accomplishing organisational objectives. This is so
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with the case of Goodman fielder. Thus, it is important for the senior management of
Goodman fielder to improve the motivational skill among the staffs, which can help them to
initiate the predetermined innovation successfully.
7.2 Motivational skill required during innovation and organisational change:
Effective communication is one of the major motivational skill, which the senior
management of Goodman fielder Ltd can implement during the process of innovation and
organisational change. This is one of the most essential components, which can help the staffs
to adapt change. Regular feedback from the staffs is one of the major ways of maintaining
healthy communication with the staffs. Thus, it is important for the leaders of Goodman
fielder Ltd to ask for feedback from the staffs on regular basis. This can foster ongoing
communication and collaboration (Van der Voet & Vermeeren, 2017). Through this way, the
senior manager of Goodman fielder Ltd can manage change in both external and internal
environment of Goodman fielder Ltd. Acting as a change is also a vital motivational skill,
which the senior management of Goodman fielder Ltd can improve to manage change with
utmost efficiency. This is the mode of exploring risk and exploring the opportunity in order to
transform the risk into opportunity.
6. Conclusion:
To conclude, it can be said that innovation is the key aspect of contemporary
corporate existence as it helps the firms to improve their internal structure and process. As
Goodman fielder Ltd is experiencing massive drop of their regular earning, it is imperative
for them to implement the proposed innovation. By implementing this innovation, Goodman
fielder Ltd can be able to automate the production process and thereby cut the additional cost
of human labour, which is the key of running business in a profitable manner.
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References:
Ahrweiler, P. (2019). Innovation management simulations using agent-based modelling. In
The Routledge Companion to Innovation Management (pp. 539-559). Routledge.
Alexander, B., & Joe, T. (Eds.). (2019). Managing innovation: what do we know about
innovation success factors? (Vol. 33). World Scientific.
Cameron, E., & Green, M. (2019). Making sense of change management: A complete guide
to the models, tools and techniques of organizational change. Kogan Page Publishers.
Dodgson, M. (2017). Innovation management: a research overview. Routledge.
Frishammar, J., Richtnér, A., Brattström, A., Magnusson, M., & Björk, J. (2019).
Opportunities and challenges in the new innovation landscape: Implications for
innovation auditing and innovation management. European Management Journal,
37(2), 151-164.
Goffin, K., & Mitchell, R. (2016). Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Goffin, K., Åhlström, P., Bianchi, M., & Richtnér, A. (2019). Perspective: State‐of‐the‐art:
The quality of case study research in innovation management. Journal of Product
Innovation Management, 36(5), 586-615.
Goodmanfielder.com. (2020). History » Goodman Fielder - Great Brands and Great People.
[online] Available at: https://goodmanfielder.com/who-we-are/history/ [Accessed 30
Jan. 2020].
Goodmanfielder.com. (2020). Our Products » Goodman Fielder - Great Brands and Great
People. [online] Available at: https://goodmanfielder.com/our-products/ [Accessed 30
Jan. 2020].
Hayes, J. (2018). The theory and practice of change management. Palgrave.
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