Responses of Tetra Pak Limited to Changes in the Environment
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Date
2011Author
Mutisya, M Bonface
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
Organizations are environment dependent. The environment in which organizations
operate is constantly changing with different factors influencing them. These
environmental changes shape opportunities and challenges facing organizations hence the
need to adjust to these changes to remain successful in future.
This is a case study about the environmental challenges faced by Tetra Pak limited and
how it had responded to those challenges. The reasearch design entailed utilization of
qualitative research techniques for data collection to better understand how Tetra Pak
limited had responded to the environmental challenges facing the company. The design
was appropriate as it provided insights into the research problem by desrcibing the
challenges and responses in detail. Primary data was collected by conducting personal
interviews of the top senior management with the help of an interview guide. The data
collected was summarised according to the study themes being the challenges faced by
Tetra Pak limited and responses to those challenges. Data was then analyzed using
content analysis.
The study established that Tetra Pak limited had faced environmental challenges such as
intense competition from substitute and alternative packaging solutions for pasteurised
milk where they had a monopoly until 2000 in Kenya. Also the study revealed that
economic challenges such as high inflation affecting the affordability of processed and
packaged milk, high interest rates impacted negatively on cost of doing business.
Depreciating Kenyan shillings which had increased the cost of imported inputs such as
paperboard for the converting factory in Nairobi and government/political uncertainity
led to the collapse of government owned Pan African paper mills in 2009 who supplied
more than 50% of Tetra Pak’s requirement for paper board thereby affecting its supply
chain. Poor legislation on the use of plastics encouraged the production of plastic pouch,
a competitor package for pasteurised milk. All the above were identified as the major
challenges that had affected the organization over the last ten years.
From the study findings, Tetra Pak limited had responded to these challenges through
such initiatives as new product development, development of enterprise resource
planning to computerize all the business functions, organizational restructuring,
investment in human resource development through training, development of long-term
strategic planning, divesting in pasteurised packaging products that were performing
poorly in the market, driving the revival of the school milk programme, innovative UHT
packaging and processing solutions and use of key account management.
In order for the company to continue being successful, the researcher recommends the
need for stronger partnerships across the dairy value chain as well as with governments,
academia and civil society, to tackle the rising and widening demand for safe and
nutritious food and the imperative of achieving this in ways that are both environmentally
and socially responsible.
This study further gives limitations and suggestions for further research. One of the
limitations identified by the researcher included lack of full commitment by respondents
to answering the questions due to their busy work schedules. A cross sectional study on
the liquid food packaging industry is recommended in order to establish the challenges as
well as responses across the industry.
Publisher
University of Nairobi
Rights
Attribution-NonCommercial-NoDerivs 3.0 United StatesUsage Rights
http://creativecommons.org/licenses/by-nc-nd/3.0/us/Collections
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