PBC Company Analysis and Strategy Formulation
- Pages: 5
- Word count: 1061
- Category: Strategy
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Ghana is one of those countries dependent on cocoa for the hard cash it needs to develop. Ghanaian cocoa does attract a small premium for its flavour, particularly from traders supplying the British market. One Ghanaian in four earns their living from the crop, which provides 60 percent of the countrys foreign exchange. Cocoa supplies one third of Ghana’s tax revenue. Traditionally, cocoa could only be sold to the Ghanaian Cocoa Board (known locally as the Cocobod), which paid farmers a small fraction of the world market price.
The Produce Buying Company (PBC) was stablished in on November 1993, and wholly owned by Cocobod until 1999, when it was privatized and consequently listed on the Ghana Stock Exchange. Since the introduction of the competitive multiple bunging systems in 1992 the number of increased buying Companies keeps on increasing every year. The internal marketing of cocoa therefore becomes more competitive every year. Vision Develop and mention the Produce Buying Company Limited as the most attractive dealer in cocoa, sheanut and any other cash crop in the West Africa sub-region.
Mission Purchase high quality produce, store and deliver same re-designated Take-over Centres maternity and the export market in the most efficient and profitable manner. Core Values Integrity, reliability, discipline, team work customer satisfaction and confidentiality. The following are the tangible resources the company strives on; Finances: The enlistment of the company on the Ghana Stock Exchange posits the company in a way for it to have access to funds from the capital market. The listing rules and regulatory frame work encourage the company to transact business in transparent manners that attracts the public.
Being the only cocoa purchasing company in which the overnment of Ghana’ has equity shares (36. 69%) has enhanced our credit worthiness and the ability to source of loans away from the capital market, since creditors always finds it easier dealing with governments that privately owned firms. Also the company’s strong financial performance and strong discharge of liabilities have made it easier to attract funding from most financial institutions. This notwithstanding, the company still has challenges with working capital.
This is so because monies raised during the initial public offer of the company’s shares were not used to as capital for its operations. Infrastructure: PBC was the sole purchaser of cocoa beans in the country and as such had control over all the cocoa sheds and depot throughout the country. They also have offices in all the district and regional offices in all the political regional capitals, so it was difficult for the newly registered buying companies to compete with the Company in terms of structures. The it an edge over its competitors.
For example, it has vehicles that allow it to penetrate the most difficult areas to evacuate all purchased cocoa promptly to our designated centers which enhances recycling rate. Even though the Company has depots and shed spread throughout the country, there is the problem of inadequate society storage facilities for the regions, especially Western North and South. Besides, most of the sheds available are in a poor state. Dealership Networks: Again as a company that has enjoyed monopoly for a long time, PBC has built strong ties with the locals.
Its presence is well known to the farmers and coupled with its infrastructure, the company can boast of a good deal of network of clients it can always fall on. It also had control over all the weighing scales in the country before the introduction of ultiple buying. The Company cross a wider area of operation even areas where other licenses buying Companies are not going PBC is mandated to better. All these serve are available to the company as resources it could fall on the beat competition if only properly managed.
The company also posses the following intangible resources; Good will: PBCs business was formerly done by a department under the Ghana Cocoa Board which has enjoyed monopoly in the purchasing of cocoa for very long period in Ghana. This monopoly the PBC has also enjoyed until the introduction of the multiple buying concept in 1992. As a result, the company is enjoying some loyalty from farmers unlike their competitors. Again due to the relationship, the local farmers have confidence in dealing with PBC: they still feel that PBC is reliable.
Also as a pioneer in the cocoa buying industry, the company’s field officers have build meaningful relationships with locals that are yet to be matched by our competitors. Brand Image: Closely linked with the above point is the fact that the company continues to enjoy a lot of good image from the Ghanaian public due to the fact that it used to be the only purchaser of cocoa beans in the country. It must be acknowledged that the monopoly stand enjoyed by the company in the past does not result in favourable treatment from the public at all times.
The company also bears the risk suffering from some of images the former company, PBC represents. The advantage however is that the farmers, who are mostly locals still trust and prefer to do business with PBC since they can better relate to them, probably fulfilling the adage that the devil you know is better that the angel you do not know’. In all, PBC brand is still of very high repute in the local market. In terms of Human Resources, he company can boast of some experienced, qualified, and dedicated staff.
The staff of the company are variously described as being efficient, honest experienced, competent, well trained and skilled. There is a strong team spirit at all levels of the Company’s operations. The front line staff, such as the Commission Marketing Clerks and the District Managers provides quality service due to their training by the company coupled with their long service in cocoa purchases. There some human resource challenges facing the company though.
Due to intense competitions as a esult of proliferation of registered private incense companies it has become very risky for PBC to lay off their aged staff for the fear of losing them to the newly registered companies and in turn loose some market shares. As a result most of the societies are being operated by aged Marketing Clerks who are not able to perform marketing clerks who earn on commissions and not salaries. There is also impeachable human factor of greed and criminal intent on the part of some workers to incur shortages.