Discuss about the Sustainable Environmental Marketing of Tassal.
Tassal is the largest salmon producing public limited company of Australia. It started its operations as a private limited company in the island continent in the year 1986. The company started on a small note and slowly grew to one of the largest company that employs a large number of people in the nation (https://www.tassal.com.au). It changed its private status just fourteen years back in the year 2003 and instead of making loss gained much more success than ever. Headquartered in Hobart it has a large number of regional offices and administrative offices in and around the state of Tasmania. The company also owns two major retail stores in the country, which is used, for selling its wide range of products. As mentioned earlier Tassal is the largest Salmon producing organization of Australia. It offers a large variety of salmon products to the people ranging from cooked salmon, steamed salmon as well as a fried version. The mentioned company has fixed its area of operation in the base country as well as the Asia Pacific Zone. The company has a broad importance given the number of employees who work in it. Being the leading producer of salmon in the country and having an annual turnover of $272 million, it contributes a large chunk to the economic condition of Australia.
The concerned company has Mr. Allan McCALLUM as its Chairman who has joined the company with a vast experience of managing different other companies in the past with good reputation. Followed by him is Mr. Trevor Gerber who is the independent Non-Executive director of the organization. Apart from being an independent director of the organisation, he is also in charge of a number of other companies of the country (Maduenyi et al. 2015 p.9). The stakeholders of the organization has also brought on board Mr. Chris Leon and Mr. Michael Carroll who are assigned the same role of independent Non Executive Directors of the company. Mr. Mark Ryan who possesses a vast experience of finance is assigned as the CEO. While Raelene Murphy is the person who looks after the auditing part of the fishing organization. Therefore a brief idea about the top management of the company can be gained through this study.
Every large organisation follows a business structure to effectively manage its daily activities and attain profits in business. Tassal has achieved success by following the matrix structure of business that involves the segmentation of different activities in a company to different persons. The roles of each individual is clearly defined and maintained in a systematic way so that all the works are done following a chain process (Maduenyi and Khurana, 2013. p.10). The information is distributed among different levels so that there is no disruption in work due to lack of data. The mentioned company has mixed both the functional as well as the divisional structure to gain profit.
Management of the Company
The seafood industry especially the salmon industry has seen a great leap in numbers since the last decade. According to American news channel BLOOMBERG, the consumption of fish like salmon has increased by a whopping 800% from the last year itself and the numbers are increasing day by day. Statistics shows that salmon consumption has outpaced the meat industry by a large margin and the sole reason behind it is the health concerns of the people (Brooks, 2013. p.1). The large fishing companies have already started investing large sums of money to capture the market and it is believed that in a short span of time the fish market will expand globally. Large MNC’s involved in the following sector are involved in acquiring smaller entities. Recently Nutreco NV, the salmon producing company based in Netherland was in news after SHV Holdings bought it up in a deal which amounted to $4 billion (Morton and Routledge, 2016. p. 205). The population growth as well as the economical rise of developing countries has also led to the expansion of the salmon market. Australia has always been a popular country of salmon production and Tassal along with companies like Huan Aquaculture has led the country to one of the largest salmon producing sates of the globe. The salmon industry of Australia amounts to more than $700 million. Given the rate of increase it is believed that the industry would be soon crossing the billion marks in a few years. The demand for the specific fish has increased in the following years leading to such a rise of the industry. The safety standards followed by the Australian companies dealing in salmon fishing have been the best in the world. The companies have already made a mark in the Asian markets and given its rate of increase it will surely be taking over the whole world by storm (Morton and Routledge, 2016. p. 205).
PESTEL Analysis is the determination of the Political, Economical, Social, Technological, Environmental and Legal Aspects of the company. This particular analysis helps to have the required knowledge on the outside factors that have a direct impact on the company. The PESTEL analysis of Tassal has thrown a light on the different operational risks that may hamper the plans of the business (Lussier and Achua, 2015. p.2).
Political Aspects- The political factors takes into consideration the political state of the country, the internal and external disturbances that are present in the country and the imposition of different tax and policies of the government on the organization. Australia has an open policy in terms of trade and business, which helps the company to enjoy a hassle free business environment.
Organizational Structure of the Company
Economic Aspects- Australia has a good level of economy and it has been developing rapidly in compare to the other developing countries around the world. The Employment rate of the mentioned company is one of the largest in the island state and thus it has seen a constant growth in its operations. The development of other competitors in the same category is also a considerable economic factor.
Social Aspect- The social factors generally include the sudden change in population or geographical changes. The absence of problems related to migration has saved the company of such hassles.
Technological Factors- As mentioned earlier Tassal is the largest company producing salmon in the region. This is possible only because of the superior quality of technological innovations that the company has incorporated. It uses innovative techniques to catch and breed salmons and then process them. These technologies have been useful to decrease the costs and increase the amount of production.
Environmental Aspect- Tassal has taken special care to take care of the environment. The company has taken environmental friendly techniques while fishing and processing of the fish. Using canned fish, ensuring least use of chemicals are some of the best steps taken by the business entity to minimize the risk of environmental degradation.
Legal Aspect- The rules and regulations of the Australian government though allow freedom to the companies, also ensures use of any unfair practice. These laws are strictly followed by the company to avoid any complication in the future.
Figure 1: PESTEL STRUCTURE
SOURCE: (Pascoe et al. 2017 p.464)
The mentioned company has set its values and missions in the most realistic way. It has been one of the pioneer industries of Australia and has led the growth of the seafood sector to develop and attain a positive state (Lussier and Achua, 2015. p.2).
The Vision of Tassal is to become a technologically advanced salmon producing organization with a competitive edge in the global market. It also aims to attain a long-term achievable goal that will help it to sustain the huge pressure in the market. Last but not the least it has targeted to bring a sense of satisfaction to the customers through the large range of products that it offers by avoiding any damage to the environment.
The Mission of the company has been to increase the profits of the company by consulting with all the shareholders and then formulating the exact plans and strategies by applying the right techniques.
International Business Environment on Australian Context
The increase in the demand of fish globally has forced the fishing industries to formulate strategies for the sustainable use of fish. The organizations that deal in the particular industry are constantly engaged in creating new ideas to tackle the mad rush for fish as there is a need for proper maintenance or else it would spell danger for the coming generation. Tassal has implemented some value based sustainable practices that is praiseworthy (Teletchea and Fontaine, 2014. p.181).
Primarily the organization has invested a large sum of money in technological innovation that has changed the face of salmon farming in Australia. It uses a variety of scientific measures that are safe and dependable than the earlier forms of technologies.
Secondly, the company has started to explore opportunities of farming salmon in fresh waters to produce large quantities of the fish and meet the growing demand of the future generation. As mentioned earlier the top brass of the company has also implemented different information technologies to support the growth of salmon farming. Global tracking and keeping a close eye on latest scientific technologies will be an asset for the company in the coming days (Romana- Eguia et al. 2015 p.1).
The success of a company depends on the efficient management of Human resources. Tassal has achieved success only because it has been able to implement a strategy that has increased the performance level of the individual employees in the organization. The company has formed a common bonding between its employees and it always tries to look beyond the profit outcomes of the company and concentrates mostly on the growth and development of the company. The concerned company hires the most efficient people by means of a number of interviews and Hr rounds. Therefore, this helps the organization to funnel out the best person among the large numbers available (Pascoe et al. 2017 p.464). The HR Department of the company has put in place a system by which employees can feel free to express their desires and lodge complaints in any case. The company performs an annual performance check on the workers and rewards them with incentives for achievements. The awards and incentives acts as a morale booster for the workers to perform more efficiently and help the company to attain success (Llewellyn, 2015. p.541).
An organization that has an efficient leader is sure to get success in the market. A leader stands above all the others and shows the correct path that leads to glory. Tassal was in a midst of crisis a few years back when it was suffering from loss and was planning to shut its shop, but Mr. Mark Ryan, the chief executive officer of the company had some different plans. The dynamic leadership qualities of Mr. Ryan totally changed the fortune of the company and it slowly turned itself into the largest salmon producing company of Australia. At the begining, he was surprised to see the dislike of the citizens in consuming fish and accepting it as a serious form of food. He decided to start a retail campaign for helping people understand the need for seafood (Jennings et al. 2016 p.29).
Research and Analysis: PESTEL Analysis
He was also instrumental to improve the traditional marketing of Tassal in fragmented markets and took the help of Nortas group to acquire a substantial part of the fish industry. The decision to change the marketing style was a huge success as investors poured in and the company was listed in the stock exchange of the company (Harvest, 2014. p.2).
The company has an effective value chain control process, which has helped it to outclass the others in terms of salmon production. The value chain process has been adapted because of the huge demand of salmon in the market (Romana- Eguia et al. 2015 p.1). Apart from this the organization has also fixed its target on supplying quality fish to the consumers, thus it has set up a quality control team to maintain the quality of the products it delivers. The company delivers its products to the consumers via a proper channel starting from receiving the fish, processing it, packaging it and finally delivering it to its stores for the customers to buy it (Pascoe et al. 2017 p.464).
Commercial fisheries have changed totally in the last decade. Tassal has been the best example in this context as it has changed the way of salmon fishing in Australia. Apart from selling its products in the base country, it has gradually expanded its operations all around Asia. The mentioned company in this report has been slowly evolving itself into a technologically advanced firm on salmon fishing. The top brass of the company has shifted its focus more on environmental factors and has started experimenting with new forms of sustainable strategies to gain success (Lucas et al. 2014 p.71). According to the CEO of the company, it will invest a large portion of its annual turnover on inland fishery and will formulate long-term monitoring and evaluation strategies for future growth. Concentration of the organization on quality control can be termed as another important step towards future success. The organization has committed itself to deliver the best possible salmon in terms of quality to the consumers, which will lead to increase in consumer satisfaction (Brooks, 2013. p.1).
There are some particular considerations, which should be kept in mind while carrying on fishing activities. Though the company takes adequate measures to prevent any environmental degradation, it still uses some artificial chemicals to increase the production of salmons. It exposes the population to risks consumption of the fish may lead to certain rare diseases (Teletchea and Fontaine, 2014. p.181). The organization must also ensure the implementation of ecological based measures to prevent the large-scale damage to the salmon population. After analyzing the whole report, it can be seen that there is an absence of a proper risk management system. The absence of such a system can be harmful in times of need. Tassal should ensure the creation of marine protected zones that should be barred from any kinds of illegal as well as legal fishing. The company should also follow effective time management to avoid any unnecessary delays in delivery that tends to disrupt the service of the company.
Planning and Strategy
The report has been successful in analyzing the perfect management system of the mentioned business unit. It can be inferred that Tassal has been an example for the other fishing companies to effectively carry out a sustainable business as well as earn huge success. The HR strategies of the company, the effective management system of the company along with the perfect business structure of the company is surely a positive model which can be followed by other companies.
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