Description of the China Food Company PLC (CFC.L)

China Food Company Plc (China Food) deals with the production and supply of sauces. The company also deals with packaging of animal feed and other related products through its supplementary sector in China. The Company manufacturing products include: soya pulp and other condiments as well as distribution of animal meal. Their distribution area covered is Shandong and the neighboring states. Additionally, there is a newly launched a soya sauce factory located in ShouGuang.

Executive Summary

· Outlining the Business prospects

The China Food Company has outlined various aspects of the vision and the mission statement. The vision aspects include; making company well-organized, proving food supplements as well as making life better. The mission of the company is to become the leading manufacturer and distributor of condiments in Northern China and to take the advantage of the quick growth in the increasingly sensitive consumer market. 

· The company’s products

The major products include; the Chinese cooking, sauces, dressings, dipping, condiments, ‘Xaka’, a premium soya sauce product, animal feeds, fuss meal, premix, concentrate and complex feedstuffs.

· Advertisement Strategies include;

Public sales and promotions, prototype postings on the Internet as well as giving discount for large scale purchases.

· Management

Management should be composed of the board of directors, key stakeholders, the CEO and other professional authorities in various departments.

· Capital and Profits

Investment and Profits anticipated are to be doubled each year. This will be so due to the increase in the number of potential customers for soya sauces and condiments. It is predicted that the sales will increase exponentially worldwide.

· Investment priorities

Investment priorities will target increasing the number of machines for production as well as acquisition of raw materials. Other proposed investments will be made in developing faster and efficient transport mechanisms in order to supply the products to other parts of the world. Moreover, the company will make more orders to purchase high quality large scale refrigerators.

· Proceeds for various investors

Proceeds for various investors will be accrued together and used to expand the company holdings. Moreover the company will give incentives to our employees as deemed necessary in order to encourage them to work better.

Strategic Focus Outlining the Aims of the Company


The vision of the company is to become a well-organized business in order to provide food supplements of a high quality thus making life better.

Mission Statement

The company wants to become the leading manufacturer and distributor of condiments in Northern China and to take advantage of the quick growth in the increasingly sensitive consumer market. 

Goals of the Organization

Goals of the China Food Company reveal their sustainable ethics. The core values of the company are based on company’s respect to its staff. Staff oriented values ensure that the various efforts applied by staff are recognized and appreciated by the management. Moreover, through the staff’s effort the ideas should be delivered perfectly to make an influence on the customers. The core values include;

· Meeting customers needs/tastes

· Continuous innovation

· Honesty and trustworthiness

· Team spirit

The above listed core values are easily achieved through ambition, motivation and leadership.

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Goals relating to Environment and Occupational Safety Policy

Goals projected within the stipulated period as relates to environment and occupational health and safety policy are meant to produce harmonious surroundings. As a food dealer dedicated to becoming one of the world-leaders, the company is devoted to safeguarding and improving the surroundings. Moreover, CFC provides its staff with work-related health and safety. Acting in accordance with the requirements of ISO14001 Environmental Management System and OHSAS18001 Occupational Health and Safety Management System, the company is devoted to; 

· Work according to all relevant laws, policies and other requirements concerning environmental fortification and professional health and safety;

· Provide for all of the customers’ needs and interested stakeholders for environment fortification and work-related health and safety;

· Frequently assess and guarantee atmosphere and job-related health and protection

· Certify that the guiding principle corresponds to the expansion objectives and integrate the guidelines to be a part of the improvement policy;

· Direct the staff to be completely responsible for situational and industrial fitness and safety;

· Augment large scale organizational actions of the distributors as regards to environmental and industrial fitness and safety;

· Discuss the policy with all concerned parties in the surroundings and industrial health and safety.

China Food Company Quality Policy

· Company’s main intention is to be always customer-centered in order to provide high quality services;

· Pursue high-tech technologies to incessantly reinforce CFC’s core competitiveness;

· Implement whole quality assurance to develop first class products;

· Strive to become one of the world’s top soya sauce and dipping providers.

Business Strategy

· The company has a strategy of capitalizing on the new soya sauce factory. The factory was officially launched in May 2010. The production and the supply has successfully started. The production and sales from this factory increased the Company’s profitability by half its proceeds. Moreover, the company has particularly launched ‘Xaka’ and announced it as its premium soya sauce brand name. Interestingly the premium product has been successfully accepted in the target market.

· Secondly, the company plans to expand into new markets. Currently, the company’s largest market is located in Shandong. The town has a total population of 95.8 million residents and all of them are satisfactorily supplied. The Board is anticipating ways of expanding its distribution to the neighboring provinces of Hebei, Henan, Anhui and Jiangsu. These towns have a populace of 300 million. This increase in demand will be adequately supplied from the newly launched factory.

· China Food Company also plans to investigate any improved methods and prospects of outsourcing various products globally. Consequently, the company plans to import its products. The intention for this strategy is to utilize the Company’s extensively available circulation system in Shandong.

· Moreover, the China Food Company will be focusing on growing the diversity of products produced. The sales department also plans to distribute the products in terms of channels, promotions, and the material sale of the product on public display.

 The CFC’s business strategy is purely customer oriented. Through the business strategy the company is able to offer faithful promises to its customers. Using this strategy the company seeks to draw and capture all potential customers. Moreover the CFC’s staff is meant to be transformed by the clients. As a result this will help the staff to improve the performance and delivery of services and products. The strategic approach can be broken down in the following categories;

· Proper positioning and allocation of resources;

· Acquiring the leading technological machines;

· The production of quality product and packaging;.

· Focusing on high-end market;

· The use of effective methods to win in a competitive market;

· Superior service provision;

· Understanding key elements in the market;

· Becoming the fastest company in production and distribution;

· Employing practical business advertising plan.

The Implementation of the Plan

This section outlines a succinct summary of the company’s dealings.

The board will ensure first priority is given to execution of the year calendar. The strategic pan will be executed in phases through the five year period. The economic stand of the nation will also be considered. Therefore the calendar should be a vital tool in the administrative board meetings. The activities will be reviewed occasionally in order to exclude needless extra activities. With the understanding that demand will be high, the company plans to execute its strategy depending on prevalent customer concerns.

The staff members should be the major key players in the implementation process. Due to this the company needs to prepare good platform to provide better incentives to the staff members. CFC should also organize training sessions for the workers and the management. The training sessions are intended to bond the whole workforce and ensure they know the project. Various implementation events will require quality time in order to produce the best outcome. As a result, working hours will be increased by allocating shifts throughout the day. Eventually, by the end of the strategic plan period, the planned events should take place. Therefore, it is necessary to employ adequate resources and timely executing the vital aspects of the company.

In order to reach a larger part of the world, it is essential to apply proper advertisement skill. The sales and marketing team should search for the best ways to publicize CFC’s spices as well as animal feed products. The proposed advertisement methods must be very accurate in order to capture the attention of the target clients. Therefore the reception of company’s products in the global market should be keenly analyzed and the improvements should be made.

Basically, soya and animal products commonly sold in the market should be improved in each dimension. The company targets to reach all ages of people with the cooking and dipping spices. Initially, packaging was done for household purposes in large containers. However, the strategic plan provides that new sizes of spices should be packed. The target customers for the small packets are the school children, travelers, office workers as well as high class hotels. As a result, CFC needs to purchase a multipurpose packaging machine with replaceable teeth and mound.

Market Analysis and Budget

After conducting a thorough scrutiny, major market opportunities, obstructions, threats, conformity to the rules, risks as well as vital factors for success were identified. Usually, the company sells Soya Sauce, pickled Products, vinegar, bean paste, chili oil as well as flavor enhancers. Moreover, there is a variety of animal feed sold in China and neighboring town such as compound feed, concentrate meal as well as premix animal products.

The market status is getting increasingly competitive however CFC is also increasing the quality of its output. It is important to note the need to expand the market to other parts of the world including the United Arab Emirates, Africa, United States of America and United Kingdom.

Measuring Success


PEST is an acronym that stands for Political, Economic, Socio-cultural and technological factors. PEST analysis is used to assess the market state and potential instances of decrease or growth during the strategic plan span.

Considering the political factors it can be said that the strategic plan or the china food company will highly depend on the government permanence for the stipulated five years. Other factors to consider include;

· Freedom of expression and advertisement;

· Power of the rule of law and high levels of corruption;

· Standard of regulation trends;

· Existence of local service legislation;

· Presence of taxation and functional trade duty;

· Ability to safeguard environment and protect the consumers;

· Possible fluctuations in the political stand.

The company will be influenced also by such economic factors as;

· The prevalent system of business cycle;

· Present and future inflation and growth in the economy;

· Levels of unemployment and availability of workforce;

· The effect of globalization and technology.

The target sales will depend on the following socio-cultural factors;

· Mortality rate and population growth:

· Education levels, attitudes to work and employment distribution:

· Media and public opinions:

· Changes in fashion and eating habits.

Advanced machinery and automation will depend on such technological factors as:

· The effect of technological changes.

· The effects of virtual sales and communication and the cost of installation.

· Research carried out on production of the products.


SWOT is an acronym for Strength, Weakness, Opportunities and Threats. This tool of analysis is used to measure an idea in the business set up in order to make internal decisions.

The China food company uses these questions to assess its strengths;

· What are the prevailing advantages the company has?

· What distinguishes the company?

· What are the available unique resources?

· What strengths do the company posses in the market against the competitors?

Weaknesses: questions pointing the weak points in the company that needs improvement:

· What can the company make better?

· What areas or actions need to be avoided?

· Are there predominant weaknesses known in the market?

· Are there any factors that reduce the sales?

· What are the advantages of the competitors?

Opportunities: the things that enhance success;

· What new chances are available?

· What upcoming trends are captivating enough to boost the company?

· What are the local activities and changes in social lifestyles that publicize the company?

Threats are serious challenges that are likely to occur;

· What are the visible obstacles?

· Which activities do the competitors get involved in that promote their marketability?

· In what areas has the quality of your products declined?

· Are you affected by technological advancement?

· Are there outstanding debts?

· Is there any outstanding weakness that posses as a threat?

Competitor Analysis

The competitor analysis is used to assess the strengths and weaknesses in the company. This technique is applied to;

· Define the nature of China Food company;

· Establish the range of competitors and potential customers;

· Find out the vital success factors and their benefits;

· Weigh the competitors according to company’s success areas;

· Identify the secret behind competitors’ success such as location of office;

· What is the competitors’ management financial structure;

· What specific quality, quantity and packaging style does the competitor use;

· Identify the competitor’s marketing strategy, distribution as well as promotional agencies.

Stakeholder analysis

This term refers to the exercise carried out in order to understand what the China Food Company stakeholders have to say or feel concerning a certain project. The company seeks to know what are the stakeholders’ suggestions and response to specific critical decisions. Stakeholder analysis can be done periodically through the period of the strategic plan.

Limitations or risks

Limitations or risks associated with the strategy can be stated as follows;

· Product rejection in the market;

· New product inability to withstand competition from business rivals producing similar spices;

· Failure to bring together all the staff members for a brainstorming session as proposed in the strategy since not all people can equally participate in the project;

· Inability to reach the target of meeting global clients within a short period of time.

The ways to solve the problems in the process of implementing the project and to manage the risks are as follows;

· To inquire about the exact consumer needs.

· To seek to know the competitor’s standards and produce better quality products.

· To organize departmental training sessions in small numbers. Organize at least five sessions with each department before putting them together for a common training.

· To divide the strategic plan into sections of two halves in each year throughout the whole five year period. During each half of the year the evaluations to see the progress of the distribution and effect of marketing should be made and then the appropriate adjustment should be implemented.


Condiments produced by the company include;

· Soya Sauce;

· Vinegar products;

· Bean Paste;

· Pickled Products;

· Chili Oil;

· Flavor Enhancing products.

Animal feeds and supplements include;

· Complex meal;

· Concentrate Feed;

· Premix.

Other products include;

· Composite poultry feed;

· Assorted meals for cows;

· Variety of pig meals;

· Higher margin Premix.

Products and Sustainability in the Market

Currently there is a wide of range of patented products. These products are manufactured using various technologies and forms in order to suitably work in the designated area of operation. There are 35 endorsed patents, together with 18 innovated patents, 26 value sculpted patents and 11 proposed patents. In addition, the company has submitted requests for 174 patents to the national Intellectual Possessions Offices. Moreover, CFC have proposed more other projects including 72 development patents, 53 utility replica patents and 23 devised patents.

For a sustainable operation the China Food Company needs many employees who possess talent and creativity in different spheres. This include; engineering, manufacturing, quality assurance, operations, environmental, food management as well as financial stock takers. Currently, the company has an overall of 1,345 workforces. Four hundred fifty eight workers are professionals and specialists who devote themselves to the investigation and enlargement of the products range.

Monitoring and Evaluation

China Food Company Plc provides various cooking and dipping sauces. The company also deals with packaging of animal feed and other related products through its supplementary factory in China. The aim of the company is to improve industrial efficiency and create value for the customers. Therefore the evaluation will;

· Determine the available corporate structures;

· Monitor the implementation of the company constitution;

· Monitor the progress of the strategic plan implementation.


China Food Company Plc (China Food) deals with the production and supply of cuisine and assortment of sauces. The company also deals with packaging of animal feed and other related products through its supplementary factory in China. The Company manufacturing products include: soya pulp and other condiments as well as distribution of animal meal. Their distribution area covered is Shandong and the neighboring states.

The company’s center of attention is on production of cooking and soya sauce and distribution of animal meal. The company’s future target is enlarging its production centers and increasing a range of products. The China Food Company also outsources products and then assigns brand names ready for sale. This is due to the increased demand of the packaged products. To enhance future demand the Company launched a newly constructed contemporary soya sauce factory ShouGuang.

After evaluating the developed strategic plan structure, the plan should be implemented and all necessary improvements should be made. This is done by the administration in consultation with qualified employees and stakeholders. Implementation of all the goals and objectives should be done through the work of the teams. The strategic plan’s implementation ought to be checked against its efficacy in attaining the intended targets.

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