Question.1942 - Assignment Guidelines:Case Study Instructions - Course MAN3353: Research, analyze, and report on recommendations to improve the management and leadership functions ofyour case study project. You should include functional roles and processes for planning, leading, organizing, and controlling. Research examples to supportthe development of your positions as stated in your Case Study.You are required to submit a minimum of 6 pages (Title Page, Reference Page, and 4 Pages (1000 words) of content), APA formatted paper withsubstantial content. Substantial content requires staying on topic and fully addressing the assignment in a clear, concise, and meaningful manner. Pleasereview your paper for grammar and punctuation errors.Submission must be the student’s original thoughts based on the topics from the “Open Educational Resource” (OER) Course Textbook and/or otherreferenced sources. Direct quotes from references must be less than 20 words. Plagiarized submissions may result in a “0” for the submission of thisassignment. Please review sentence structure, grammar, and punctuation errors.Late submissions will be deducted 10 points.All assignment(s) derive from the OER Textbook. For academic purposes, you will at a minimum reference the OER Textbook, and present 5citations from the OER Textbook in support of your writing.Please read the Case below and answer the following questions:1. How does engaging in social actions secure stakeholders? (15pts)2. How do the external environment and policies affect Ella's Kitchen's performance? (15pts)3. How would you as a manager adapt to these new challenges and what solutions would you seek to maintain commercial viability? (15pts)_____________________________________________________________________________________________________________________________All student writing assignments will be assessed for grading using the Valencia College "Rubric of Assessment for Written Communication"Rubric Link: Valencia College Written Communications Rubric (https://online.valenciacollege.edu/courses/189998/files/49532470/download?wrap=1)Chapter 2 Case Study - Ella's KitchenElla’s KitchenPaul and Alison Lindley wanted to introduce a brand that might develop children’s healthy relationship with organic foods and vegetables. In 2006, the coupleestablished Ella’s Kitchen, a UK-based company that produces organic baby foods—naming the company after their daughter.“When I started to wean my daughter Ella, I found that the baby food available was all a bit bland, beige, and boring. Ella didn’t like it and was becoming a bitof a fussy eater. I have established Ella’s Kitchen because I wanted to help Ella and the rest of her generation grow up knowing that healthy food could betasty, fun, and cool.”3/13/24, 12:13 PMChapter 2 Case Study - Ella's Kitchenhttps://online.valenciacollege.edu/courses/189998/assignments/56466132/4Paul Lindley used all organic ingredients to ensure healthy yet tasty foods along with colorful packaging. The company never used refined sugar in itsproducts and reduced natural sugar by 20% in purees between the years 2016 and 2019.Lindley hoped his products would lead parents to start their kids on viable, healthy eating habits, and Ella’s Kitchen soon earned a good reputation. The firmholds a 20% market share of the UK baby food sector. After Ella’s Kitchen captured the domestic market, Lindley turned to the international market,expanding initially to Sweden, Norway, and Denmark, where the firm now holds a 14% and 30% market share. This performance in the international marketgave the firm confidence to continue expansion; currently, Ella’s Kitchen operates in 45 countries and has been recognized as the number one baby foodbrand in Norway, Ireland, and the UK.Lindley expanded his business through export entry modes while focusing on product diversification; that is, Ella’s Kitchen produces products in the UK andsells them abroad. Rather than establishing an independent facility in a foreign country, the firm manufactures, processes, and stores items in the UK andexports finished goods internationally. The company recently introduced a range of frozen foods for toddlers using gluten-free bread, sustainably sourcedflakes, organic chicken, sweet corn, and pears.Lindley also emphasizes the triple bottom line—people, planet, and profit—and maintains certified B corporation status. As part of the company’s sustainabledevelopment goals (SDGs), Ella’s Kitchen set targets aligned with zero hunger, responsible consumption, and partnerships, along with sourcing sustainableingredients.In 2019, the World Health Organization (WHO) provided guidelines on the promotion of commercial baby food. Adhering to these guidelines would requirethe firm to bring changes to its marketing strategy. At the same time, the UK decision to separate from the European Union (EU), informally known as Brexit,has heightened insecurity for Ella’s Kitchen. The start-up takes inputs (raw materials, labor, etc.) mostly from the EU and exports its products into this zone.Brexit would increase the cost of production for Ella’s Kitchen as certain tariff and nontariff barriers might be imposed by the EU However, sourcingingredients from other emerging economies could be an option to consider.To comply with new guidelines from the WHO, Ella’s Kitchen plans to make the following adjustments:The company has already started replacing ingredients such as bananas that contain higher natural sugar with vegetables to reduce sugar by 20%.The company plans to change labeling of all products offered for four-month-plus (4m+) babies that has misleading details, to match actual ingredients.Nothing will be offered with the title “suitable for four-month-old babies” because the weaning age varies from child to child.The firm has been sourcing mango, banana, and vanilla suppliers—key sweet ingredients used in Ella’s Kitchen products. A decision to reduce using theseingredients will mean sourcing from new suppliers and having a strict ingredient matrix. Compared with sweet ingredients, a variety of green vegetablesoffered in the market is often lacking (Moding et al., 2018)—the cost of vegetable-based ingredients may be high due to supply scarcity. An increase in thecost of raw materials will eventually increase the cost of production. Changes to labeling will also increase costs.The United Nations (UN) targeted seventeen goals commonly known as Sustainable Development Goals (SDGs) to achieve by 2030. Ella’s Kitchencontributes to three of those goals: Zero hunger, responsible consumption, and partnerships. The firm aims to achieve these goals through maximizing thevalue of key stakeholders. Employees, customers, suppliers, competitors, community, and the environment are key stakeholders that can influence theorganization. Ella’s Kitchen has various initiatives to work on with its stakeholders, from “Ella’s Good to Each Other Standards” to encourage collaborationwith employees along the value chain, to donating food in partnership with Action Against Hunger under their “Red One Fed One” campaign in the UK andSweden.Furthermore, there has been a growing concern worldwide that commercial baby foods are promoted inappropriately which might misguide breastfeedingmothers. To minimize this risk, the WHO established guidelines in 2019, which include reinforcing laws about the marketing of breastfeeding substitutes.To comply with these generalized guidelines, Ella’s Kitchen plans to make the following adjustments to its products:Some of Ella’s Kitchen products relied on ingredients such as bananas that contain higher natural sugar. The company has already started replacingthese ingredients with vegetables. This way, it reduced the sugar by 20% from 4m+ purees between 2016 and 2019.The company plans to change the labeling of all products offered for 4m+ babies as it provides misleading details. Information placed on the labelsshould be matched with the actual ingredients. For example, an Ella’s Kitchen product named “pears” should contain a considerable percentage of theseingredients in it.Nothing should be offered with the title “suitable for four-month-old babies” because the weaning age varies from child to child.Uncertainty Around BrexitThe UK’s membership of the EU eliminated tariff barriers. This means free movement of goods and services across nations within the EU Also, nontariffbarriers such as dumping and anti-dumping policies, border controls, and bureaucratic procedures are exempted for the members within Europe. Theseexempted tariff and nontariff barriers increased trade between the UK and the rest of Europe. For the UK, around 50% of total trading is with the EUCountries under the umbrella of the European Union reduced trade costs around 40% faster than trade costs among the members of the Organization forEconomic Cooperation and Development (Méjean & Schwellnus, 2009)However, the UK’s decision to leave the EU has far-reaching economic effects. The most obvious consequence is the higher trading cost with EU countries,which may limit trade and foreign investment. Analysts predicted that Brexit would reduce the UK’s trade by 12.5%, which in turn would reduce UK revenueby between 6.3 and 9.5% (Van Reenen, 2016).Trade costs will be greater if the UK leaves the single market entirely and trades as a general member of the WTO—commonly known as “hard Brexit.” Onthe other hand, the agreement to maintain close integration with the European single market in the form of “soft Brexit” will minimize these costs. With a “Soft3/13/24, 12:13 PMChapter 2 Case Study - Ella's Kitchenhttps://online.valenciacollege.edu/courses/189998/assignments/56466133/4Rubric for the Assessment of Written Communication (1)Brexit,” the UK will be allowed to enter into the European market with no tariff barrier. However, nontariff barriers such as anti-dumping duties, compliancerelated regulations, rules-of-origin safety, and standard-issue will be imposed on the UK. Brexit may throw companies like Ella’s Kitchen out of the Europeanmarket. Brexit will affect the following areas of the company:Higher Production CostCurrently, Ella’s Kitchen sources its raw material from across Europe. For example, the biggest strawberry suppliers for Ella’s Kitchen are Spanish organicfarmers. The price of such raw materials would increase as tariff barriers are imposed, increasing the production cost and selling price for Ella’s Kitchen.Increased Labor CostThe number of EU migrants in the UK tripled between the years 1995 and 2015(Van Reenen, 2016). These immigrants are a source of medium-skilledworkers (Wadsworth et al., 2016). Restrictions on the flow of immigration through Brexit will increase the demand for labor which may affect the efficiency ofElla’s Kitchen.Increased Nontariff BarriersMembership of the EU has allowed UK firms to expand business within the EU. Ella’s Kitchen has expanded its business across Europe through export entrymodes or direct selling approaches. The firm can export the finished goods in this zone without nontariff barriers. A nontariff barrier is a form of trade barriercreated deliberately by a country to restrict foreign trade transactions. Bureaucratic trade procedures, quotas, embargoes, etc., are some common forms ofnontariff barrier created by a particular country to control global trade. However, Brexit may increase the costs of export as nontariff barriers will be levied bythe EU.Less ProfitabilityDespite all the uncertainty around Brexit, Ella’s Kitchen continued to grow by making GBP 73 million annual turnover in 2019. However, their sales revenueand profitability might increase the selling price of Ella’s Kitchen products.Delays in Project ImplementationLindley aims to support organic farmers and growers, one of the key stakeholders of his business, to maintain a sustainable supply chain. With that in mind,he took on a project in 2019 and started conducting research about how to improve organic farming. A key finding was that demand for organic goods is veryhigh, so farmers concentrate on increasing the volume of production rather than identifying ways to improve existing organic farming practices. However, theproject was called off by Ella’s Kitchen team as it decided to focus on Brexit preparation.Strategies to ConsiderBrexit opens the opportunity for the UK to act as an independent player and look for new trade deals with the rest of the world. After Brexit, the UK would nolonger be bound to adhere to the EU’s common external tariff on imports. Also, following Brexit, the UK could remove the entire tariff barrier on imports inorder to lower the cost of imports. Hence, existing trade protection against China and other emerging economies might be abolished. Ella’s Kitchen might beable to source raw materials from other emerging economies like China and India. A possible zero tariff on imports would assist with keeping productioncosts down. Current estimates show that 49% of the total carbon emissions in Ella’s Kitchen occurred due to the manufacture and process of ingredientsused in Ella’s Kitchen products (Ella’s Kitchen, 2019). So, sourcing these ingredients from sustainable suppliers of these regions would lessen Ella’s Kitchencarbon emissions.However, this strategy might not be supported by some stakeholders. Ella’s Kitchen is committed to offering locally sourced or organic foods. Customers mayaddress questions when ingredients are sourced internationally. Factors like higher transportation cost, delayed supply, unfavorable trading terms, andfluctuating exchange rates might affect Ella’s Kitchen performance. Most importantly, global sourcing could place downward wage pressure on less-skilledBritish workers.After Brexit, Ella’s Kitchen will trade with the rest of the world as a general member of the World Trade Organization (WTO). The current tariffs determined bythe WTO are low. Hence, sourcing raw materials from the EU rather than across the globe might still be the best option for Ella’s Kitchen. Besides, the firm isethically committed to continue working with the current suppliers in the long run. So, the firm together with the existing suppliers might explore new ways ofproducing and processing supplies that are good both for the people and the planet.In addition, the firm might consider sourcing employees locally as Brexit would control the flow of immigration. The UK is a hub of skilled labor. Although laborcosts may be higher in the short run, it may promote goodwill for the company in the long run.Despite the uncertainty around Brexit, the average household income in the UK has increased by 1.4%, from GBP 29,000 in 2018 to GBP 29,400 in 2019(Office for National Statistics, 2019). Cost is one of the most significant factors that maintains constant consumption of vegetable-based infant foods (Daniel,2016). Therefore, the increased disposable income of the consumers might help
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