INTRODUCTION
The Coconut Growers’ Association (C.G.A.) was formed in 1936. It was formed out of the foresight of a group of coconut estate owners/planters called the “Coconut and Copra Planters Association”, in order to provide a united front in selling their basic raw product copra to overseas markets.
Realizing the difficulties of exporting a basic raw material to overseas market, a decision was taken to begin making a finished product locally. This was the beginning of the Coconut Growers’ Association.
C.G.A. has always been mindful of its role as a god corporate citizen, and has been supportive of several literacy programs including a donation of books in 1989 to approximately seven schools in the Cedros area. It has also for the past four years contributed to the Butler Institute of Labour program, whose aim is to boost language and mathematical skills of children between the ages of seven and twelve.
At present, the company, through steady research, innovation and product development is producing a high quality of consumer products for export as well as the domestic market. Many of these have become household names in Trinidad and Tobago as well as throughout the Caribbean and are winners of international consumer product awards such as the prestigious Monde Selection.
PROFILE ONE
INTRODUCTION
C.G.A. Limited is an interesting organization that deals with a very old product. The coconut and its by-products have survived over sixty years of business in a world of constant change.
This organization is owned and controlled by estate farmers then and now. They produce their own products for both local and foreign countries.
ORGANIZATONAL PRINCIPLES
C.G.A. is a Limited Liability Company in which the owners of the company are liable only for debts equivalent to the amount of their investments. In this situation, the owners are the shareholders of the company.
C.G.A. is a manufacturing company which produces the following items:-
Edible oils Nariel Coconut Oil, Simply Natural Coconut Oil &
Hostess Soybean Oil.
Edible fats Marigold table margarine, Marigold cooking margarine
Marigold shortening, Hostess soft spread margarine,
Hostess slim margarine, Red Seal margarine, French Maid
Cooking margarine, Prize shortening, Nariel ghee.
Toilet Soaps D’or (3variants), Duet (2 variants) Carbolic, CoMed
Medicated soap, Activ antibacterial soap.
Laundry Soaps Mermaid blue soap, CC101 industrial degreaser, Brite
Powder detergent.
OBJECTIVE
The objective of this business/enterprise is to be a leading manufacturer and marketer of a range of quality consumer and industrial products, that profitably compete in the Caribbean and Latin American markets.
COMPANY’S MISSION:-
- Empowering our human resources through teamwork, training, development and rewards for performance.
- Ensure superior quality products at competitive prices through focus on both market and product research and development.
- Continuously improving plant, equipment and processes with due regard to protection of the environment and sound Health and Safety practices.
- Implementing and continuously improving quality management systems to ensure customer satisfaction.
- Building strong partnerships with our suppliers.
- Managing the business to ensure longevity and steady growth, as well as equitable shareholders return on capital investment.
(Please see attached appendix #1 – copy of C. G. A.’ s Mission Statement)
C.G.A. Limited is a company controlled by a Board of Directors, which consists of coconut estate owners, farmers and other investors. The Organizational structure develops in detail under the departmental heads as indicated in the Organizational Chart below: -
Board of Directors
CC.CJJJJJJUJ
(Please see attached Appendix #2 copy of organizational chart in detail)
MANAGEMENT ISSUES
In a manufacturing company, there are many issues that management must deal with on a day-to-day basis to ensure the survival of the company. The issues specific to C. G. A. Are as follows: -
- Globalization competition with most international company’s products on the market, designed with attractive packaging, cost effective and best quality normally would move faster off the grocery shelves leaving the local products on the shelves. C.G.A. is affected by global competition when the same products C.G.A. produce appear on the grocery shelves a lot cheaper than CGA’s products. In an effort to solve this problem, CGA is trying to source cheaper raw materials.
- Organizing of production, strategic planning and marketing is done by departmental heads.
Control administrative staff is done by managers.
Delegating of responsibilities on the production lines are done by the
Supervisors.
Motivating – when production workers exceed the normal day’s run, from
The product produced a sample is given to each worker on the shift.
3. At the end of the year, a committee is formed to organize a Christmas
party for all workers. Bonuses are given based on profit margins for the
year.
4. The challenge to break through Trade Barriers, e.g. Customs Duties and
Charges, Freight Rates and Value Added Tax. To get into foreign markets
5. To acquire cost reduction in Labour, Raw and Packaging materials being
imported to produce products and promotions.
6. To ensure communication between managers and workers for the all round
benefit of the company.
- To foster strategic planning accuracy in order to purchase raw and packaging material, JIT (just in time) as they seek to acquire cost reduction by the quantities being ordered. JIT means you order as the need arises therefore money is not tied up in stocks of raw material waiting to be used.
8. To come up with ways to produce products with best quality and
competitive prices.
LEGAL ISSUES
C. G. A. Limited has manufacturing contracts with Johnson & Johnson Trinidad Limited, to produce a range of soaps such as Johnson Baby Soap, Johnson Baby Oil, Johnson Baby Lotion, the Shine n’ Life range and the Shower to Shower range.
Albrosco Limited – C. G. A. produces the Brillo soap, which goes on the Brillo pad.
A.S. Bryden – C.G.A. produces the range of Jojovera Soap.
Delinquent customers who credit goods and after an extended period of time do not pay for these goods, are made to face legal proceedings. This is done by either the company collecting all outstanding bills or, these bills are forwarded to the company’s lawyer who would write the creditor. If they do not respond, the matter then goes to court.
The company’s Industrial Relations Consultant at the Industrial Court handles all matters pertaining to workers.
C.G.A. is situated in Laventille, which is a residential area, and legal charges would be incurred if the company were found to be discharging effluent into the drains in the area.
PROFILE 2
PRODUCITON AND MARKETING
C.G.A. utilizes the factors of production Land, Labour and Capital in the production process. Production department can only produce goods as they receive instructions from the Marketing Department. At CGA, production is done in five different departments. They are: -
- Laundry and Toilet Department
- Detergent Department
- Lard and Margarine Department
- Oil Filling Department
- Copra/Metal Department
Both human labour and technical resources are utilized in the daily processes of production. Every day, the Quality Assurance Department provides “Batch Cards” with the formulation to produce each product scheduled for production, as stated in the monthly production plan.
Every morning, production would receive from Warehouse Stores (Land) all the raw materials and packaging required to start production the next day at 6:00 a.m.
There are four operating shifts; 6:00 a.m. – 2:00p.m.
7:00a.m. – 3:00p.m.
2:00p.m. - 10:00p.m.
10:00p.m. – 6:00 a.m.
The administrative department works normal working hours, 8:00a..m. – 4:00p.m..
C.G.A. is located to the bottom of the Laventille hill (which is part of the Northern Range) and between two main roads, North by the Eastern Main Road and South by the Priority Bus Route going East out of Port of Spain.
Sixty-five years ago, the Laventille area was considered the gateway to the city of Port of Spain. To avoid pollution and contamination of the city, Laventille was considered appropriate for factories and manufacturing organizations because it was just outside the city, hence the many companies in this area. They include naming a few: Angostura, Safe-Tec, Fernandez Distillers and Co-Operative Citrus Growers.
Back then, the land-filled area of Laventille was sold at a cheap rate because it was not considered prime land.
The land on which C.G.A. Limited is situated is leased land. The original owners of this company, was a group of Coconut Plantation owners who got together and formed The Coconut Growers’ Association Limited.
The locating of raw materials and packaging materials, are the duties of the Purchasing Department. They source materials ensuring that they receive the following information for each material:-
- Specification sheet
- MSDS – Material Safety Data Sheet
- Shelf Life Sheet
There are many factors relating to problems encountered by the purchasing of materials.
JIT – means to order just in time
Bulk 3-4 months stock locked in container loads.
Due to financial constraints, the company can decide to order using JIT system but ordering using JIT causes many problems, especially in the area of transportation with respect to internal trucking.
Locally – internal truckage
Foreign – Air, Sea or Courier Service
Late arrivals
Supplier sent wrong materials
Goods lost at sea
Package coming via Courier Service can be misplaced or sent to another country or company in error.
The Quality Assurance (QA) department would check all incoming raw and packaging materials and they can discover that:-
Materials may be out of specification
Defects in packaging wrappers and labels, such as errors in wording of ingredients, eye mark in wrong place, colour may not be the right pantone shade.
If materials are not acceptable, Quality Assurance will either reject or deviate. When materials are acceptable, they are sent to the Warehouse Stores then sent toe Production for usage.
Purchasing would access materials based on :-
- Cost
- E T A – Estimated Time of Arrival
- Quality of Material
- Volumes packaged for export
- If supplier is ISO 9001 which means International Standards Organization for certification.
The Marketing Department is one of the most important section of any manufacturing company, as their responsibility is to market the products being manufactured.
At CGA, the marketing team carries out their duties to accomplish the tasks as stated below: -
Marketing Manger Foreign: Responsible for all foreign exports up the
Caribbean and makes regular trips to foreign
Suppliers in search of business.
Marketing Export Handles receipt of foreign orders, type up all
Coordinator foreign invoices and other shipping
Documents, call in containers, get a customs
Officer to seal container after it is packed, to
Liaise with shipping agency to have a
Container placed on the vessel to be shipped
And other miscellaneous duties.
Marketing Manager Local: He works with distributors assigned to
Supply our goods in the various districts
Diego Martin, Port of Spain, Arima,
Chaguanas and San Fernando.
Trade Specialist: Works on the road checking all the groceries
To make sure the distributors are doing their
Work and that products are on the shelf in
Good condition.
Marketing Specialist: To organize Advertisements, in store
Promotions, Bill boards, Jerseys,
Competitions and giveaways.
Marketing Logistics: To create via computer, ‘Volume Planning
Guides’. These VPG’s are sent to the
Production Planner who plugs this
Information into a computer spread sheet
‘Production Plan’ to produce the volumes
required for production. This sheet is then
sent to the Purchasing department and they
would plug said information into the
computer a data base called ‘Raw Material
Explosion’ to come up with exactly how
Much raw and packaging materials to
Purchase.
CGA owns vehicles that are available for personal use.
One two-ton Mazda
One small pick up with an open back tray
Additionally, the managers are provided with cars that can be used during the day, if he need arises.
On CGA’s compound, storage capacity is limited. There are two average size warehouses, one in the Soap making area and the other in the Oil Filling area. In these two warehouses, Raw Materials, Packaging Materials and Finished Goods are stored.
Quality Assurance fluorescent coloured stickers stating ‘On Hold’, ‘Approved’ and ‘Released’ identify Raw Materials and Finished Goods.
In the Margarine department the Cold Storage section is unable to store the volume of margarine produced on a weekly basis. As a result, the company rents cold storage space at the Citrus Growers Association and this is cleared on a first in first out basis.
Each warehouse has Stores attendants assigned to them, workers who receive and issue goods. They pack containers for export and properly arrange raw and packaging materials separate from finished goods ensuring that all goods are marked respectively.
PROFILE 3
FINANCE AND INTRODUCTION TO ECONOMICS
A Board of Directors of which some are Coconut Estate owners controls CGA. These men invest into the company along with the profits from the sales of manufactured products.
The National Insurance Act covers every worker. NIS and Agostini Insurance Brokers along with the Caribbean Home Insurance Company, which provides benefits such as Optical, Dental and Surgical operations, cover administrative workers.
Building, Machinery, Equipment and Finished goods are covered for fire and burglary by Agostini Insurance Brokers. All Finished goods being exported are also covered by insurance.
CGA Limited rely on its products to make profits. In order to increase profits, Contract Manufacturing was introduced. This allows CGA to manufacture on a contract basis for the following companies:-
Baby soap range
Shine & Life range
Shower to Shower range
- Albrosco & Company Limited
Brillo soap – to be used on Brillo pads
Jojovera soap
Leah Blue Laundry soap
We bottle and label Cuisine brand cooking oil
CGA acts as an agent – buys finished goods and markets same to make a profit:-
USA Detergent Inc of the United States
XTRA Classic Laundry Detergent
Nice’n Fluffy Fabric Softener
Country Air Scented Candles
(This range of products did not move on the market sot he imports were discontinued).
“ABSORMEX” of Mexico
Soft Tails Pampers
Economax Bulk Pack Pampers
Querubin Gel Aloe Pampers
(This range of pampers are presently doing quite well on the market for our Caribbean customers).
CGA contributes to the social and economic development of the economy in three major ways:-
Employment – CGA employs approximately 110 persons: Administrative, Junior Staff and Factory workers. Administration and staff are hire via employment agencies or recommendations. Factory workers via recommendations or random picks by the main gate.
Charities and Donations - CGA gives willingly to schools, orphanages and many other charitable organizations.
Agriculture - After the oil is extracted from the copra, the remaining pulp is bagged and sold. This is called ‘meal’ and this meal is used for farmers as animal feed.
BIBLIOGRAPHY
Waterman, L. Ivan
Ramsingh, Dave
Principles of Business for Caribbean Examinations
Third Edition
Mc millian
