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From the modest beginnings, the organization has expanded and recreated itself over the years and is now one of most enterprising and reputable companies within Asia. Today, Dairy Farm is mainly into retailing, especially on supermarkets, drug stores and eateries. The Group has acquired a domineering position in many key Asian markets. It also has upheld its commitment for quality products, business integrity and contribution to the community.
The Group operates some of the popular brands, many of which are based in Singapore. These include:
Supermarkets & Hypermarkets
Wellcome - Hong Kong, Taiwan
ThreeSixty - Hong Kong
Oliver's The Delicatessen - Hong Kong
Jasons MarketPlace -Singapore, Hong Kong and Taiwan
Cold Storage - Singapore and Malaysia, Giant in Malaysia, Indonesia and Brunei,
Shop N Save - Singapore,
Lucky - Cambodia
Rustan's - Philippines
Shopwise - Philippines,
Foodworld - India;
Giant -Malaysia, Indonesia, Singapore, Brunei and Vietnam.
Shopwise - Philippines;
Health and beauty stores
Mannings - Hong Kong, mainland China and Macau
Guardian - Malaysia, Singapore, Indonesia, Brunei and Vietnam
Health and Glow - India;
7-Eleven - Hong Kong, Singapore, Southern China and Macau
Starmart - Indonesia
Home furnishings stores
IKEA - Hong Kong and Taiwan.
The Group also have a 50% share in Maxim's, Hong Kong's top restaurant chain.
Michael Kok Group Chief Executive
Graham D. Allan Chief Operating Officer
Alec Tong Group Finance Director
Dato' John Coyle Regional Director, East Asia
Caroline Mak Regional Director, North Asia
Poh Seng Pol Group Business Development Director
Alex Tay Regional Director, South Asia
Mission of business
Dairy farm's mission is to satisfy the appetites of Asian shoppers for wholesome food and quality consumer and durable goods at competitive prices.
Dairy Farm objective is to be a leader in its entire market sectors. Their focus is retailing and effort is in place to offer consumers value-for-money via efficient, budget distribution of higher-quality fresh foods, and consumer & durable goods in the supermarkets and other departmental stores. These include hyper-markets, drug stores, convenience stores and home-ware stores.
Dairy Farm is geographically committed to Asia. In addition to developing their existing operations, they aim to obtain growth by being active in their exploration in new investment opportunities within the vicinity.
They function in multiple formats in many markets and obtain economies of scale with the support of these with shared infrastructure for logistics, HR, finance, procurement, and IT systems.
They also aim to maintain financially strong through careful balance sheet management. What is being taken is a long-term view of business development and the belief in striking a balance between investment in materialized cash-flow organization and investment in new businesses. Value creation for shareholders is the performance yardstick for the longer-term incentive programme of the organization's management.
Individuals within an organization that will receive benefits from the company's profits are known as the internal stakeholders.
Employees & Board members
Employee - These stakeholders are people who are hired to provide services to a company regularly in exchange for compensation and do not provide the services as part of a sole business.
Board members - These stakeholders are within the Governing body (called the board) of an organization. Its members, who are generally directors, are normally selected by the subscribers (stockholders) of the company (normally at annual general meetings) to govern it and take care of the subscribers' interests. This board has the most decision-making authority and, in general, is equipped with the power to (1) initiate the company policy, objectives, and overall direction, (2) adopt by laws, (3) name personnel of the advisory, executive, finance, and other committees, (4) hire, monitor, judge, and sack the managing director and senior executives, (5) evaluate and pay the dividend, and (6) issue add-on shares. Though all the members may not be engaged in the organization's day-to-day operations, the entire board shall be held responsible (through the doctrine of collective responsibility) for the consequences of the company's policies, actions, and abnormalities in acting. Members of the board usually comprises the most senior executives (called 'inside directors' or 'executive directors') as well as the specialist or respected personnel opted from the wider community (called 'outside directors' or 'non-executive directors')
External stake holder
External stakeholders are individuals who are not directly working for the business but are affected in one way or another from the decisions made by the business.
Customers - These stakeholders can be an individual, company, or other entity which purchases goods or services produced by the entity. With no customers or the ability to attract customers, a company cannot be considered viable. As it is, customers are not only the key to sales and profits, but they are also liable to creating and maintaining jobs within any organizations.
Suppliers - These stakeholders are generally companies which supplies parts and services to other organization. This can include materials or parts, capital items, supplies and services. These companies can also called vendor. Without supplies, it is not feasible for any companies or organization to operate as all sales starts with the raw materials. The suppliers do play an important role in any organization's microenvironment. The relationship within suppliers and organizations are constructed on a solid foundation of value
Local communities - group comprising individuals that interacts within their immediate surroundings. Generally, the local community comprises of business operators, public agency staff and residents, and their interactions can mean sharing of resources, information and assistance, as well as the establishment of commercial relationships between local businesses and consumers.
Relationship between dairy farm and its environment
In Singapore, Goods-service-tax are imposed for organizations with a turn-over of over a million dollars per year. The percentage for this stands at 7. This would make revenues for big supermarkets such as the ones being operated by Dairy farm go down.
In Singapore, generally there are many different supermarkets. In every major shopping mall in Singapore, there is at least one supermarket. To make matters worst, convenient stores are also increasingly common. These may be family businesses or subsidiary of major companies. For example, Dairy Farm owns "Cold storage", a supermarket and "7-11", a convenient store. A substitute to cold storage in Singapore is "Fair-price", likewise, for convenient store, "Cheers" and many others.
High stall rental
Stall rentals in Singapore are generally very expensive these days. In town a big store space could cost as much as half-a-million per month. Recently, in Singapore, one major bookstore, Borders, folded its operations because it could not cope with the soaring rental cost.
Singapore's workforce is inherently highly diversified mainly due to the multi-racial community. Its ever-changing demographic profile, the existence of more women in the corporate world and globalisation has also played a role in increasing the diversity of the workforce. Workers from different eras, gender, nationalities and cultures frequently work together in a common organisation. It is therefore a requisite for companies to put in place policies and practices to promote an inclusive and harmonious workflow. A diversified workforce has to be well-maintained in order bring fourth better corporate performance and better employee engagement.
Credit card processing is very vital for stores these days especially for the relatively larger orders. However, processing credit cards cost money for the supermarkets. A fraction would go to the credit card processing company. As a large supermarket, Cold-storage in Singapore has to have such systems in place. These causes revenue losses.
The Singapore manpower governing body recently announced that stricter qualifications for allowing employment passes across all ages will be implemented. For one, the qualifying salary will move up for all respective pass applicants. In order for foreign workers to be employed, they will have to obtain such passes. A higher qualifying salary will mean more money has to be spent on foreign labours. Such generally expect much lower salaries as compared to the Locals. As such, labour cost in Singapore goes up drastically
Greenhouse gases utilized in supermarket refrigerators and freezers are posing a great threat to the environment along with plastic bags, according to a research performed by the Environmental Investigation Agency.
Chemicals released from refrigerators account for thirty-percent of supermarkets' direct emissions, yet only tiny proportion of stores have been equipped with greener equipment, according to further findings from the report.
Establishing the context
Anything that brings about a risk to what an organisation is trying to achieve needs considering. Some of the factors are uncontrollable but it is possible to minimise the risk they might bring. In setting forth the context, the stakeholders has to be identified; these are the people who may affect, or be affected from, any of the company's decisions risk management. Stakeholders may comprise of employees, customers, government and suppliers. The stakeholders have different needs each, concerns and opinions; hence, it is essential to upkeep the communication with stakeholders during the process.
Dairy farm has many established businesses; these are mainly food products. The factors which may contribute to the way it is managed are:
-Legal Problems e.g. through buyers getting food poisoning
-Physical e.g. slippery fall leading to injuries
-Economical e.g. too high stall rentals, theft
Involved stake holders in managing the risk of the organization:
Identified risk criteria to assess it's permissibility:
-Likelihood of health problems
-Likelihood of negative publicity
-Likelihood of bankruptcy
Risk Assessment Process
In previous years, there have been incidents involving supermarkets, both within the Dairy Farm umbrella and other food retailing organizations.
Actions taken to identify the risk
-Focus on finding history of incidents involving other food/drug retail outlet.
-Conducted a physical inspection on all shopping outlets under Dairy Farm umbrella
-Talked to Stakeholders
-Looked into records of various suppliers
Analysis displays the common source of risk:
-Human behaviour e.g. negligent
Major risk identified:
-Trace of hazardous chemicals found in food products
-Frivolous stall rental leading to no net profit. This leads to loss of jobs.
Integration risk management
What is a Risk Assessment?
A Risk Assessment is a analytical method of viewing work activities, and evaluating what could go wrong, and finding a suitable control measure to assist in preventing losses, damages or injuries in the workplace. This assessment generally includes the controls required to remove, reduce or keep the risks to a minimum.
Why conduct a Risk Assessment?
Risk Assessments is a pre-requisite for businesses. If not known, or realize where the risks are, the organization is only putting itself, it's your employees and customers in danger.
Organizations must view all work-related activities that could induce harm in order to judge whether enough is being done to meet its legal obligations. This is considerably the minimum requirement. If it is relatively practicable to do so, companies should go the extra mile in doing more than the legal minimum.
The main objective is to always reduce the risks as much as is 'relatively practicable'.
'Relatively practicable' is a legal term which means employers should strike a balance in the cost of steps that they are taking to minimize a risk against the degree of it being presented.
When judging the costs, the time, trouble and effort required should be included and not just the financial cost.
Ignoring the risks could result in the following
-The health and safety of employees, customers, volunteers and participants
-Organization's reputation, credibility and status
-Public and customer confidence in your organisation
-Organization's financial position
-Plant, equipment and the environment.