International Strategic Management & HRM, Module 9 Communication Plan Team 2 Skills Communication Plan Module 9 International Strategic Management and HRM Group 2 Authors: Moritz Schelges147192 Loy Nguyen Irina Popkov131482 Gerlof Veltman Michel Ruiz Name Project Supervisor: Mrs. Blokzijl Stenden University of Applied Sciences: International Business and Management Studies Leeuwarden, The Netherlands October, 2012 Contents 1. Background Analysis1 2. Target groups1 3. Communication goals1 4. Message1 5. Strategy & Tactics1 5. 1 Channels1 5. 2 Planning1 6. Budget1 1.
Background Analysis Syngenta AG (referred to as Syngenta throughout this report) is a company originating from Switzerland, registered as a stock corporation that has issued registered shares to investors, and was formed in the year 2000, when the two companies Novartis and AstraZeneca merged. The main foci of Syngenta are the production and selling of seeds and chemicals to the agricultural sector. Moreover, the company is active in the biotechnological field and genomic research. The markets of this company are very large and diverse, since Syngenta is operating in around 90 countries worldwide.
In order to manage those markets better and have a less diverse corporate portfolio, Syngenta has just recently implemented a new strategy. This current strategy consists of the following elements: * corporate level- growth * business level- “integrate, innovate, outperform”-differentiation, product leadership, product development, and customer intimacy * operational level- centralization Until now, the consultancy team has analyzed the company internally and externally in order to find out what the main problem is with the current strategy and whether it still fits the current developments in the internal and external environments.
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Using Porter’s Five Forces Framework, the PESTEL analysis, market segmentation, the 7-S analysis and so forth, this is the SWOT analysis that can be drawn up as a result: Strengths * Syngenta’s innovative character * global teams * technical expertise * united production & supply * Syngenta Business Services * less staff costs due to centralization * standardized processes * Soybean| Weaknesses * less flexibility due to Syngenta Business Services * centralization * products not properly usable for illiterate farmers| Opportunities * strong agricultural sector- grew by 4. % in 2012 * GM industry is on the rise * a lot of arable land available and not in use yet * most amount of water available in Brazil * low threat of entry, substitutes, & suppliers| Threats * criticism from the public about certain pesticides * differing international legal guidelines * competition * certain products are banned in the EU * Berne Declaration * networks against paraquat * high power of buyers| Taking the threats and weaknesses into account, the following GAPs become evident:
The first GAP results from the centralized way of operating, differing legal guidelines and the competition Syngenta is facing. Currently, Syngenta operates in a very centralized manner. The opinion of local experts is very important and it is crucial to react to changes fast enough. Due to this centralized way of operating, decisions might have to be discussed in the headquarters first and then be reported back to the local experts. That takes time which might not be available in certain situations.
In the desired situation, Syngenta is very flexible, able to react to changes in a fast way, be faster than its competitors, and due to more decision-making power in the particular business units, better use of local experts’ knowledge can be made. The second GAP is formed by the fact that illiterate farmers cannot properly use the highly dangerous products and there is a lot of criticism the company is facing from the public and networks like the Berne Declaration. In the current situation, these facts are damaging the reputation and decreasing customer loyalty and sales.
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Businesses that are well known for providing superb customer service have several characteristics in common: they understand what customer service really means they understand their customers and aim to fulfil their needs in every way every single person in the organisation wants to achieve this aim. Customer service is the customer’s complete experience, from the second they enter a ...
In the desired situation, the products are safely applicable for everyone, leading to less criticism from the public, an improved reputation, more customers with a higher loyalty rate, and higher sales. By adding the aspect of product safety to the CSR values and developing a short video or audio tape containing instructions in the farmer’s native language on how to properly use the products, this gap can be overcome quite easily. The third GAP results from the threat that some products of Syngenta are banned in the EU.
Currently, certain products of Syngenta have been banned in the EU market due to the high risk when working with these products. Results of this prohibition are losses in sales, a market share loss and again, reputation damages, leading to less customers and disbelief in the practices of Syngenta. The desired situation in this case is having proven that the chemicals are not harmful if used in a the correct way, publicize that there soon will be audio or video instructions to accompany the product, leading to easier and safer usage, an improved reputation and probably the regained bility to sell the products in the EU again. In turn, this will lead to a higher market share, an increase in sales, and customers. After taking the main problems, the SWOT analysis and the GAPs into account, the consultancy team came up with the following new strategy, which will mostly change on business and operational level and ideally, cover all three GAPS mentioned: The figure above visualizes the new strategy on all its levels. The corporate business level And Corporate Level Strategies">level strategy will stay GROWTH, as it still fits the current trends, which are leaning towards innovation in the technological and agricultural industry.
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The business level however needs to be changed, in order to overcome the competitors, as well as the critical voices around. The business level strategy should focus on operational excellence as well as one element of the old business level strategy which is product development in order to continue coming up with new and innovative products. This will ensure safer products for both, the farmers and the environment, lead to an improved reputation of Syngenta, and will consequently lead to more market share. Due to the centralization of the company decisions might take longer than they need to be.
This can be crucial in some situations. Therefore, on the operational level the effect of the new, decentralized strategy should be a faster, more appropriate, and to the market tailored decisions taken by the experts of that particular market and region. A second effect, which will be created through more transparency and informing the farmers on how to handle the products correctly should be the increase of the human welfare. Through the innovation of new products, that are environmentally friendly, no human being or environment will be affected by any harm.
This is something that will also have a positive effect on the critics, which are around the company and will regain a positive reputation and public image of Syngenta. The aspect of product safety will be included in the improved CSR practices of the company in order to further strengthen and improve its image. Product safety could be increased by e. g. including a DVD with audio or visual instructions for illiterate farmers in the developing countries to make sure the product is being used correctly and safely. 2. Target groups
Syngenta is a large company active in over 90 countries worldwide, we are focusing on the Latin-American market more specific Brazil. Brazil is already one of the 90 countries Syngenta is active in and economically speaking, Brazil forms a very attractive agricultural market. The agricultural sector grew by 4. 9% in the second quarter of 2012 in contrast to a 2. 5% decline in industrial output (Biller, 2012), showing that there is a lot of confidence in the agricultural sector of Brazil and providing Syngenta with another opportunity.
Furthermore Brazil is the country with the most amount of land available (over 400 hectares m) which can be used for agricultural purposes, but not only this. It is also one of the countries where only a small portion of that arable land is being used (see graph 1 below), leading to the conclusion that there is much more potential in that country and making it very attractive to Syngenta. However concerning the strategy change, The customers and other external stakeholders are not the ones whom are initially influenced.
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The strategy change is internal, that means the line managers and employees are most affected by the strategy change. The consultancy company came up with the new strategy in relation with the board of directors. The board of directors only has to approve the new strategy, they are not concerned with the execution of the new strategy. The middle management has to transfer the message of the board of directors to the line managers. The middle management is responsible for the monthly monitoring of the progress of the execution of the new strategy.
The line managers in return have to convey the new strategy to the employees, which have to execute the new strategy. The operational level is accountable for the daily progress of the integration of the new strategy. Because it concerns an internal change of strategy the external stakeholders like the suppliers, environmental organizations, and customers are initially barely influenced by the changes. Therefore they are not the target group, in the first place. When the strategy is entirely implemented, the external stakeholders will benefit from the new strategy. . Communication goals As shown in the GAP- analysis mentioned in the first part of this report, We have came up with three gaps. The first one in the product safety, the second one is the improvement of the reputation and the third and most important one is the decentralization. The first gap is concerning product safety, in the past there has been a lot of criticism on Syngenta. Certain products are already banned in Europe, a lot of accidents happened with Syngenta products due to insufficient instructions.
By improving the product safety with instructional videos, and special workshops on how to use the Syngenta products, Syngenta is aiming to reduce the accidents related to Syngenta products by 20 percent before the year 2015. Besides the reduction of the accidents, they also want to flourish on the European market which is the second gap. Therefore the ban should be removed, the goal of Syngenta is the operate fully on the European market before 2014. So every Product of Syngenta is allowed to be sold and used in all European countries. The final and most important gap is the decentralization.
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The opinion of local experts is very important and it is crucial to react to changes fast enough. Due to this centralized way of operating, decisions have to be discussed in the headquarters first and then be reported back to the local experts. That takes time which might not be available in certain situations. Therefore, it might be important and advantageous, to move to a less centralized strategy on the operational level and way of operating in order to be faster than competitors. Syngenta wants to become more decentralized before 2013 by giving the local experts more room to make their own decision.
At the end of the year 2013 Syngenta will take a questionnaire amongst the local employees to see how they have experienced the decentralization, and what could have gone better. 4. Message The purpose of our business is to bring plant potential to life, using world-class science and our deep understanding of plants to help our customers feed a growing population (Syngenta AG, 2012).
” Also, “our ambition is to help growers deliver greater food security to an increasingly crowded world in an environmentally sustainable way.
That calls for a step change in productivity and resource efficiency – on both the world’s 5 million large farms and its 450 million smallholdings. Every farmer has a part to play (Syngenta AG, 2012, p. 11).
” This combined mission statement shows that Syngenta’s customers are growers, whom they want to support by selling them a safe product which was developed with the use of “world-class science” and the company’s explicit knowledge of plants. Additionally, Syngenta’s products are supposed to help farmers feed a growing population in a sustainable way.
The message Syngenta wants its employees to remember is similar to the mission statement, because eventually that is the core of the company. 5. Strategy & Tactics The initiative to investigate the current strategy and improve it, came from the consultancy team and neither the organization, nor the company itself. But as mentioned before, only about a year ago did the company implement a new strategy. Therefore, it can be assumed that the company is more than aware of the fact that a strategy needs to be improved from time to time in order to be able to continue growing and stay on a highly competitive level.
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The formal information about the changes that come with the new strategy will be spread in direct ways via several information meetings organized for the target groups that are affected by the change. This will be a short and powerful champagne on a formal basis, where the message is more important than the relation. Emotional information, giving inside on the company’s passion for what can be achieved for farmers and growers will be spread indirectly, meaning during events that will take place several times on different topics and can be attended on a voluntary basis.
Here, the message and the relation are important in order to be able to motivate employees to represent Syngenta’s strategy but also understand the importance of them as the workforce to reach operational excellence as a company. Due to the fact that these are going to be a series of different events, they will be targeted at the whole target group and more than one type of media is necessary to be used. Two main goals will be in the center of the new strategy: reaching operational excellence and becoming less centralized, thus, empowering certain business units and its employees.
Further aspects of tactics, such as the different channels and media used and the detailed planning are provided in chapters 5. 1 and 5. 2. 5. 1 Channels There will be different types of channels used in order to successfully imply the importance of understanding the new strategy, to positively motivate the employees, and bring the new strategy of the company across. The media types that will be used are: * Audio visual (power point presentations, and video presentations) * Mass media (leaflets, fliers, and handbooks) interpersonal media (e-mails) * Events * Networks and electronic media The presentations will be done in big groups, it will be held as an informational conference and a way of giving some extra training in the area of improvement of the strategy in order to successfully implement the strategy. The presentations will be held in interesting ways, with e. g. video material and not only speeches in order to not bore the employees, because it is crucial for the success of the new company that the new strategy is properly understood.
The tool of mass media will be a helping tool to better inform about the plans and ideas of the strategy. Also, this is for information which is simple and self-explanatory, in order not to have to hold conferences every time for little changes. The printed information is also handy for when the information is forgotten or to refresh the mind on what it is all about. The advantage of using mass media to spread information which can be easily understood is that a big group of people can be informed while spending little money on it.
In Syngenta’s case, the leaflets etc. will be spread on the operational level to staff which is e. g. in the production process due to the fact that they also need to be informed about changes in the strategy and goals of the company. Interpersonal media such as emails will be used to inform the middle management about e. g. conferences, events, meetings and personal updates. Events will take place in order to increase the loyalty of the staff, motivate the staff and help them understand what Syngenta’s passion and goals are.
These events will take place several times in order to increase the bond amongst the staff members and also to repeat the mission and objectives of the company to keep it present in the minds of the employees. Networks and electronic media will also be used for short and easily understandable information and updates. For this, the company’s e. g. Facebook and Twitter accounts will be used in order to reach internal and external stakeholders. Electronic media such as the internal database of the company will be used to publish this information for employees only. . 2 Planning In order to distribute the information and knowledge of the improved strategy, a planning of how it will be organized has to be made. First of all, the conferences have to be prepared and knowledge of these conferences has to be provided to the target groups. An invitation will be send out by the company to targeted groups right after the new strategy has been accepted by the board of directors of Syngenta, inviting employees to join the event.
To make the events more attractive together with printed information, some samples will be handed out to the people that attend. Also, to make those events more active there will be demonstrations on how to correctly use the products and also what actions to take in case of an emergency with the chemicals. For these events, all the printed information has to be printed, samples have to be packaged and information packages for the attendees have to be prepared. The preparations of the demonstrations have to be done in order for the demonstrations to go smoothly.
Employees have to be prepared for the different tasks that have to be done for the events and therefore, informed via networks or emails. Emails to the middle management have to be sent out right away as well, so that they know about how to instruct those employees organizing the events and conferences. They are also the ones who need to be informed first about the content of the flyers and other printed media so they can instruct the responsible employees in order to start preparing those leaflets and so on.
All these processes need to be picked up right after the strategy was accepted and the need to run simultaneously in order to have the information present in all channels and basically, surround the employees continuously. Planning and preparations of the events are necessary in order for them to run smoothly and with an attendance of the invited target groups it will be successful. 6. Budget How they communicated their new strategy to their employees in 2011: “Bringing the strategy to life. In 2011, we enabled our employees to learn more about the new strategy while deepening their understanding of the grower’s world.
One example of this is the crop demonstration day events where leaders from each of our crop teams share with employees their knowledge, insights and personal passion for what Syngenta can achieve with growers. More than 1,700 employees have attended demonstration day events since July 2011. Through 2012, demonstration day events will be held in each territory. Employees are also encouraged to complete an interactive e-learning agronomy program, which covers the challenges and decisions growers face before, on and after the farm. ” page 35 of the annual report 2011 =not a one time thing used several events to raise awareness etc.
