Arnott's Biscuits: Report on Managing Agile Organizations and People

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This report examines the management of agile organizations and people, using Arnott's Biscuits Ltd as a case study. It begins by comparing and contrasting four types of organizational agility: operational, strategic, portfolio, and communication agility, highlighting the importance of communication and strategic agility for the company. The report then analyzes the dynamic forces influencing the company's competitive position using Porter's Five Forces model, assessing the impact of new entrants, supplier power, substitute products, buyer power, and existing competitors. Furthermore, the report emphasizes the significance of effective human resource planning for competing as an agile organization, and the role of Continuing Professional Development (CPD) in achieving both personal and organizational objectives within the firm. The conclusion summarizes the key findings, emphasizing the importance of adaptability and strategic planning in the context of a dynamic market environment. The report also provides background information on Arnott's Biscuits, including its market position, products, and key competitors.
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Managing Agile
Organisations and People
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Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................2
Compare and Contrast four types of organizational agility.........................................................2
TASK 2............................................................................................................................................4
Dynamic forces influence company's relative competitive position in market...........................4
TASK 3............................................................................................................................................6
Importance of effective human resource planning to compete as a agile organisations..............6
TASK 4............................................................................................................................................9
Role of Continuing Professional Development in achieving personal and organisational
objectives.....................................................................................................................................9
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12
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INTRODUCTION
Managing agile companies and people is very essential, organizations need to manage
their business effectively and have ability to adopt changes in economy. Agile organizations is
one of the companies that quickly answer to changes in environment or marketplace. Thus,
managing these firms is important for business growth and success (Day, 2014). Agile
companies reacts efficiently to emergence of rapid advancement in technology and emergence of
new competitions in market. The present report is based on Arnott's Biscuits Ltd Company, it is
an Australian firm make biscuits for people. This study defines contrast and comparison of four
types of organisational agility and also explain which is important for company. It clarified
dynamic forces affecting company's relative competitive position in market by using appropriate
model. Furthermore, it justifies importance of effective human resource planning and role of
continuing professional development in gaining organisational and personal objectives in firm.
Back ground information of organization-
Arnott's Biscuits Ltd is one of the largest Australian biscuits' producer and second biggest
supplier of snack food. It is the auxiliary of Campbell soup firm of US, they make healthy and
tasty snack food items for people. William Arnott is the founder of company, he founded firm in
1865 and opened his first bakery in 1847 Morpeth.
Size of company-
Arnott Biscuits is subsidiary of Campbell soup which is an American Producer of canned
soups and other products related to it, they sold their goods in 120 countries around the world.
Thus, Arnott Limited serve their services and supply its products in US and gain profit more than
before. They operate its factories in Indonesia and Papua New Guinea and Sydney.
Main market-
Firm is well known grocery Brand in nation, Australia is the main market of company
where they operate and lead more than 70 percent of Australian market.
Products or services-
Arnott Biscuits is famous for manufacturing range of Australian Biscuits, there are some
of its main goods, such as,
Arno shortbreak
Bust Biscuits
Caramel crowns
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Chocolate butternut snap
Choc Monte
Chocolate Dessert
Coconut Rings
Chocolate Royal's
Water crackers
Wagon wheels
Vita weat
Tim Tams
Tic Tocs
Key competitors of company-
Kraft foods Ltd, Griffins Food Ltd and Goodman Fielder Ltd are the three main business
competitors of Arnott's Biscuits.
Main customer segments-
Organization target niche high class market, to illustrate quality and prestige, the target
customer included successful women over 30, children's is the main customers segments of firm.
TASK 1
Compare and Contrast four types of organizational agility
Organizational agility, means capability of firm to radially adapt or change in response to
changes in current market (Dubey and Gunasekaran, 2015). High degree of organisational
legerity help organization to react successfully to beginning of new competitors, it also supports
to development of new sector. By recognizing opportunities and adopt new culture and changes
in market is organisational agility that helps to improve company performance. Agility has
offensive and active connotation as opposed to organisational absorption which efforts to deal
with outer circumstances through defensive mechanisms. It is the concept that incorporates
thoughts of flexibility, ideas of balance, coordination and adaptability under one place. In term of
businesses, it refers to ability of Arnott's biscuits to make some changes in their external
environment to beat competitors. There are the four types of organizational agility, such as
operational agility, strategic agility, portfolio agility and communication agility.
Comparison between four organizational agility-
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Operational agility, strategic, portfolio and communication organizational agility is
different from each other, but purpose is same. Operational agility, is firm's capacity or ability
to seize and find opportunities to improve processes and operations of company, within centring
business structure (Su, Wright and Ulrich, 2018). With the helps of this ability, company can
garb the best opportunities such as introducing new services or products, reduce cost, improve
goods quality and refinement logistic procedure. Unlike operational agility, strategic ability is
about amplification competitive benefits by capitalizing on new creations or innovations. Thus, if
new technological advancement is made, firm with strategic ability is capable to quickly adapt
and take advantage of these types of change, strategic agility refers to organization fluid or
flexibility. As compare to other ability this form of organisational agility is better. It refers to
firm capability to consistently adopt and adjust strategies in core business which helps to gain
many benefits. Portfolio agility define capacity or ability of company to effectively and
quickly shift assets such as talent, cash and management out of not so likely units and shifts into
attractive organizational entities. As compare to other agility, they can provide better
opportunities and benefits to firm that helps to managed operations effectively. Communication
agility, refers to firm ability to communicate with its target market or customer, it helps to fit
message to selected audience. Adjusting to demands of customers is all about communication
agility, it considered as one of the best way to assure clients about products quality.
Contrast four organisational agility-
Operational agility Strategic agility, Portfolio agility Communication
agility.
As compare to another
agilities, operational
agility is better than
other, it helps to make
businesses stronger via
introducing new goods
or services. Company
with operational
ability can grab the
attention of customers
Strategic agility is an
capacity to adopt new
changes and make
strategies based on it
which helps to gain
competitive benefits
(Qin and Nembhard,
2015). As compare to
operational agility,
strategic agility give
Portfolio agility is one
of the organizational
agilities, it is different
as compare to other
based on work style. It
helps to make
diversified portfolio in
which range of
products can introduce,
it gives specific
Communication agility
refers to the way to
ensure clients about
maintaining quality, as
compare to other
organisational agility,
it helps to get the
better outcomes. It is
very useful term which
make company able to
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and increase profit
more and more rather
than before. If firm can
improve their quality
of products they can
gain competitive
advantages which is
quite beneficial for
businesses for growth
and success in
marketplace.
power to firms in
which they make the
best strategies for
business growth and
increase profitability.
With the helps to
strategic agility core
businesses can be able
to adapt strategic
directions and take
accurate actions based
on situations.
organizational
capabilities to achieve
portfolio abilities.
With the help of this
agility company can
able to shift their
resources for example
cask and management
and moves into most
attractive structure.
beat competitors and
identify current trends.
Other agilities focus
on making brand
reputation, but without
communication they
cannot be able to set
target market and
measure their needs
and requirements.
Communication and strategic agility is one of the most essential and best suited forms
for Arnott's Biscuits company. It gives firm many opportunities and provide benefits to increase
their profitability and productivity (Kumar Sharma and Bhat, 2014). Communication agility
increase customers awareness, thus if company used both agility they can find out customer
preferences and offer products according to their needs. They can satisfy customers and make
them happy, it is one of the best achievement which contribute to gain profit margin and generate
revenue as compare to Arnott's Biscuits competitors.
Strategic agility, considered as important approach for organization, it is essential for
business growth and high reputation. With the help of making or adopting strategies in core
business they can beat its competitors and give tough competition to other.
TASK 2
Dynamic forces influence company's relative competitive position in market
Porter's five forces is the model analyse and identifies five competitive forces that shape
each sector. This model helps to determine the industry's strength and weakness, it is used to
determine structure of industry to identify corporate strategy. It is used to analyse Arnott's
Biscuits competitive environment and considered as the best framework. In other words Porter's
five forces model is very useful in context of analysing competitive position and market
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environment that can impact on company negative and positive sides. It also supports to identify
where power lies in situation of business, it is useful both in strength of position that firm look to
move into and in understanding power or strength of company current combative position. This
model is based on five forces such as:
Threat of new entrants:
Threats of new entrants is higher, New entrants threat refers to threat of new competitors
pose in present competitors in the industry. Profitable sector attract more organization or new
ones to gain profit and achieve business objectives. If government legislations and restrictions
cannot overpower core businesses creates situation in which new entrants attract more and
increase interest of entering into new market. In short profitable markets always attract another
companies which decay profitability. Arnott's Biscuits company power and market reputation is
effect by force of new entries into food industry. New entries always bring different ideas and
concept of increasing profit, they try to lead over whole sector and gain profitability more than
existing food companies. If government rules and policies is strong in which every industry
suffers and face difficulties, it makes barriers for new entrance into new market. It is the reason
behind decreasing their interest of working in new market and put pressure to take one step back.
Barriers in industry does not allow new companies to enter into market it means that threat of
new entrants is lower.
Bargaining power of suppliers: Bargaining power of suppliers is Medium, large
number of suppliers chain, controls supplier power of bargaining in which they cannot drive up
cost of services. Arnott's Biscuits Ltd company suppliers chain is large, they have number of
suppliers who helps to supply their products in target market. They cannot move up price of
specific products which give benefits to company. But if company cannot have large chain or
number of suppliers is allows providers to hold power of switching prices and put pressure on
company to increase costs more and more rather than before. Less number of products provider
and dependency of company upon suppliers holds power to increase costs and push for benefits
of trade.
Threat of substitute service or products: Threats of substitute products is Higher.
Substitute services or goods can be used in place of organizations services or product pose threat.
High rank of substitute products increase chance of changing customers mind and switch into
another goods which is close to Arnott's biscuits and available for customers. People can buy
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products similar to offering by company, they can be choose another goods which is similar to
biscuits and snack food items. In market there are many food items are available closer to
company products, it raises high change. Consumer will have many options to for go purchasing
firms goods that can be weakened power of organization more than before.
Bargaining power of buyers: Bargaining power of customers is Higher, it impacts on
whole industry and also affect competitive environment for consumer. It helps to influence
buyer's ability to drive cost and achieve profitability. Arnott's biscuits company customers
bargaining power is higher, clients can pressure on firm by changing high prices. They put
pressure on companies to improve their quality of products. In Australia there are many product
or snack foods offer by other companies to customer which is similar to Arnott's Biscuits Ltd
company that can be make negative impact on its profit margin.
Rivalry among existing competitors: Rivalry among existing competitors in market
poses higher rank (Rigby, Sutherland and Takeuchi, 2016). It is the main force which make
negative impact on company growth and success in core business. Existing companies have
capability to provide better services or products, they are able to identify customers needs and
capable to manufacture products according to their needs. Existing competitors create
competitive environment and create difficult situations for new entrants in market. In Australia's
food industry there are many competitors, who offer similar services or products to customers
and satisfy them that reduce market attractiveness. If Arnott's Biscuits Ltd company need enter
into new market they have to face existing competitors who already builds its market position
and offer the best quality snack food.
TASK 3
Importance of effective human resource planning to compete as a agile organisations
Human resource planning may be defined as identifying the current and future human
resource need for an organisation in order to achieve the goals and objectives of the organisation.
It is also referred as continuous process of systematic planning of human resource in order to
make the optimum use of human resource within the organisation and to increase the quality of
human resource within the organisation (Noe and et.al., 2017). Human resource planning ensure
provide the best fit employees and job while avoiding manpower shortage in the organisation.
Human resource planning allows the organisation to plan a step ahead for maintaining the steady
supply of skilled employees for the organisation. It is also referred as work force planning which
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helps the organisation to evaluate its needs and meet those needs. The planning of human
resource should be flexible in order to meet the challenges of short term staffing and adopt to the
changing conditions of business environment. There are various challenges for planning human
resource while facing the changing business environment for example training and development,
absenteeism, improving practical and theoretical knowledge, promotions, etc. human resource
planning ensures the best fit employees for the organisation and avoiding shortages and surpluses
in the employee pool. So, human resource planning forms the important part of the organisation
and can help in meeting the goal and objectives of the organisation. Effectiveness of human
resource planning for Arnott's Biscuits while competing as an agile organisation can be evaluated
as:
1. Future manpower needs: Human resource planning ensure that the best fit workforce
is available with the organisation for maintaining smooth operations of the organisation which
means it is the planning of employees which are best for the organisation which can help the
organisation in meeting the dynamic nature of the business of Arnott's Biscuits. So, human
resource planning is important tool for the organisation which can ensure the availability of the
employees which are able to meet the changes and adopting the changes of the organisation.
2. Cooping Up the changes: Human resource planning is very important for Arnott's
Biscuits to cope up the changes which associated with the external and internal factors and this
can help the organisation in competing as an agile organisation (DeCenzo, Robbins and Verhulst,
2016). Human resource planning helps in assessing the current human resources through human
resource inventory and can help in adapting the changing technology, economic forces, political
forces and social cultural forces of the organisation. Human resource planning of Arnott's
Biscuits can also help the organisation to cope up with the competitive forces of the market and
such changes generate the need of change in skill demand, job content as well as number and
type of personnels which in needed for the organisation to compete as an agile organisation.
3. Development of human resource: In agile organisation, human resource planning
help in providing the same type of service which it has been providing in past like hiring of new
employees for the organisation, performance management, training and development,
professional development. But this needs to be put in to consideration that but such services
should be provided in such a way that they are responsive toward the ongoing changes in work
style and change in the culture of Arnott's Biscuits.
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4. Achieving Success: The success of building and maintaining the agility of the
organisation, as human resource planning helps in understanding the importance of workforce
diversity, incentive structure, and having right people for the right jobs in order to practice and
refine the new processes adopted by the organisation. Human resource plays and important role
in understanding the employee needs and how to determine the staff member needs i.e. which
employee needs training and which employee had to be let go (Meaning and Importance of
Human Resource Planning, 2015). This helps in improving the performance of the employees in
the organisation and motivates them in achieving the goals and objectives of maintaining the
agility of the organisation.
5. Meeting up organisational requirements: Effective human resource planning helps
Arnott's Biscuits to measure that to what extent an organisation should acquire and make
effective utilisation of manpower for the organisation to compete as an agile organisation.
Human resource planning helps in recruiting and assessing the skilled human resource for the
organisation as per the changing needs and also focuses on making optimum utilisation of the
human resource in the organisation that will maximise the over all cost of production an gaining
competitive advantage. Human resource planning helps in meeting the requirements of the
organisation as every organisation needs personnel of desired skills, experience and knowledge
in order to compete as an agile organisation. So, this requirement of human resource of Arnott's
Biscuits can be effectively fulfilled by the effective human resource planning as it helps in
defining the number of personal as well as kind of personnels which are needed to adopt the
changes that takes place in the organisation.
6. Reducing uncertainty: Effective human resource planning helps Arnott's Biscuits in
reducing the uncertainties of the business environment while competing as an agile organisation
(Crumpton, 2015). Effective human resource planning can help the organisation in reducing the
impact of uncertainties which come through sudden changes in the process as well as the
procedures which are adopted by the organisation in competing as an agile organisation.
7. Training and development of employees: In order to compete as an agile
organisation, Arnott's Biscuits needs needs to train and develop the employees of the
organisation as a result of changing requirements of the company. Effective human resource
planning provides the a scope for advancement and development of the employees of the
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organisation which is done through training and development. So, it helps in adopting the
changes and compete as an agile organisation by high skilled employees.
TASK 4
Role of Continuing Professional Development in achieving personal and organisational
objectives
Continuing professional development may be defined as the learning activities which
professionals engage in developing and enhancing their abilities in order to improve the
performance of the organisation. CPD is the ongoing process of development through out the
professional career. It is the systematic, lifelong and planned process of developing and
maintaining the professional competencies, innovation and creativity. The out come of CPD is
equally valuable for the employee and for the organisation. CPD can be defined as the learning
activity the develops, maintains, increases knowledge, problem solving, improves technical skills
and professional performance standards is included in the continuing professional development.
Main goal of CPD is to increase the quality of the professional services in the organisation which
can helpful for achieving individual and organisational goals. Continuing Professional
Development plays an important role in achieving both individual as well as objectives and the
role of CPD can be assessed as:
Role of CPD in achieving personal objectives:
Improving personal skills: CPD help the employee of Arnott's Biscuits to refine its
personal skills and intellect and can help employee in filling the skill and knowledge gap. CPD
helps the employee in identifying those skills and knowledge which needs improvement and
provides the process for improvements which can help the employee to improve its skill sets and
knowledge.
Opens pathway for career: As CPD involves improving of skills and knowledge of the
employees in an organisation on continuous basis, it can help the employee in achieving its
career objectives like promotions in an organisation, higher salary and can provide job security
for the employee in an organisation (Brekelmans and et.al., 2016). So, CPD plays an important
role in meeting the career objectives of employee in an organisation.
Enhances the ability: CPD play an important role in enhancing the ability of the
employee in an organisation as employees regularly learn and improves themselves, which help
in increasing the ability of performing well in the organisation. Through CPD an employee can
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learn quickly and get acquainted to the process which makes the employee independent learner
and can perform the task independently in an organisation.
Reduces uncertainties: CPD helps the employee to face the uncertainties like change in
organisational culture as CPD can gives the employee a plan for future aspirations which can
help the employee to remain prepared for the uncertainties which help in reducing the challenges
of uncertainties which may be faced by the employee in the future.
Adaptability: CPD plays an important role in adapting the change which may take place
in the organisation as CPD help in improving the skills and abilities of employee as it helps an to
become more creative and innovative which can help in adapting the sudden and planned
changes in the organisation.
Promotes independence: It can make employee independent as CPD requires the
employee to constantly engage in the learning activities and follows it plan for growth and
development which can increase the independence of the employee in an organisation (Reich,
Rooney and Boud, 2015). Also, CPD activities can benefit the employee in the future tasks or
jobs which may be assigned to him or her.
So, CPD plays and important role in meeting the current and future objectives of personal
in an organisation.
Role of CPD in achieving organisational objectives
Improving the standards: CPD can help Arnott's Biscuits, in maintaining the standards of the
performance through out the various departments of the organisation. As CPD helps in
improving the skills and abilities of the employees in an organisation which help in maintaining
the standards of the organisation.
Improving productivity and efficiency: CPD can help Arnott's Biscuits in improving its
efficiency and productivity which can help in achieving the growth and profitability objectives of
the organisation (Halton, Scanlon and Powell, 2015). As CPD enhances the skills, knowledge
and experience of the employee in an organisation which can help the organisation in generating
revenue.
Healthy Culture: CPD plays an important role in maintaining the healthy culture of the
organisation as it results in growth and advancement of the employees in an organisation which
can result in high level of satisfaction among the employees of the organisation. So, CPD helps
in promoting health culture within the organisation.
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Enhances business reputation: Through CPD, overall performance of the organisation
is improved as the level of performance of the employee in an organisation is increased which
brings more and more profitability for the organisation and thus helps in building reputation for
the Arnott's Biscuits within the competitive market.
Improves employee retention: CPD can also help Arnott's Biscuits in improving
employee retention, as employees are satisfied with their performance and are able to perform
various tasks by committing less errors. This decreases the level of stress among the employees
and this increases the chances of employee retention in an organisation which can profitable for
the organisation. Organisation would not pay or invest for recruitment and selection process.
Competitive advantage: CPD plays an in important role for the organisation in gaining
competitive advantage over rest of the competitors in the market. CPD brings creativity and
innovation within the organisation which will help the company in producing better and quality
products in the market (MacWalter, McKay and Bowie, 2016). This can help Arnott's Biscuits in
gaining the competitive advantage for the organisation and thus help in achieving more and more
profits for the organisation.
CONCLUSION
It can be concluded from the above report that there are different forms of organisational
agility which can help the organisation in competing in business environment. It can be said that
out of four different agilities communication and strategic agility is the best for the organisation
as it provides the organisation many opportunities and provides benefits for the organisation to
increase it productivity and profitability. Present report also concludes that there are various
dynamic forces in the business environment which can have a strong impact on the organisation's
competitive position in the market. So, it can be said the theses forces should be minimised by
the organisation in order to stay competitive in the market. It can also be concluded from the
report that effective human resource planning plays an important role in the organisation which
can help in increasing the agility of the organisation in competing in the markets. Also, CPD
plays an important role in the organisation which can help personal and organisation in meeting
their objectives.
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