OSCM case study

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>Assignment case study

From São Jorge Island to Germany, Greece and Belgium. Lidl exports tuna from the Azores

The food retail chain is exporting tuna from the Azores to Germany, Greece and Belgium. Over 98,000 units have been exported

Ana Marcela 16.06.2020 / 10:32 / www.dinheirovivo.pt

The island of São Jorge is heading to Germany, Greece and Belgium by exporting tuna from the Azores to Lidl’s shops in these markets. Since March, over 98 thousand cans of Santa Catarina tuna have been exported and, by the end of the year, the expectation is to reach 100 thousand units for these countries and also for Cyprus. Meanwhile, the food retail chain is still studying new markets. By May, the export weight of the Azorean cannery already amounted to 30%.

The German food retail chain has had a link with Santa Catarina for 10 years now. The Azorean canning industry produces four items – tuna fillet from the Azores au naturel (150g), tuna fillet from the Azores au naturel (120g), tuna slice from the Azores au naturel (120g) and tuna slice from the Azores in olive oil (120g) – for Lidl’s own brand, Nixe, the “only insignia with tuna from the Azores under its own brand”. The cannery also produces the lower-price tuna Bela Aurora.

“Tuna exports with Santa Catarina cannery had been planned for some time before the Covid-19 pandemic”, states Bruno Pereira, purchasing manager of Lidl Portugal. “Exports through Lidl with this partner started in March this year, with its Santa Catarina brand – namely by exporting tuna fillets in olive oil with fennel, with thyme and with oregano”.

“We chose to start exporting seasoned tuna fillets – in olive oil with fennel, with thyme and with oregano – because they’re differentiating products and, as such, they capture the consumer’s attention. We believe that the competitiveness of our national products should be achieved through their quality and differentiation, because we can’t – and do not have the intention to – run up against other countries’ offers exclusively by price”, explains Bruno Pereira.

These products, in addition to using “an artisanal fishing technique – pole-and-line fishing –, hold the Dolphin Safe certification seal, which attests their sustainability, meaning that, during the fishing process, no marine mammals were caught or mistreated”. Moreover, “the aromatic herbs, in this case thyme, originate from the fajãs of São Jorge, where different spices and aromatic herbs are cultivated.”

Only since March in Lidl’s export circuit, the export of Santa Catarina tuna to stores outside Portugal is still “at an early stage, but we believe the feedback will be positive”. So far 98,700 cans were sent to Germany, Greece and Belgium. This figure is expected to rise by the end of 2020. “By the end of the year, we plan to export around 100.000 cans of tuna from Santa Catarina to Belgium, Greece and Cyprus – and to new markets still under negotiation”, Lidl Portugal’s purchasing manager explains.

Santa Catarina Tuna was one of the products that entered Lidl’s export list this year. Last year alone, Lidl sent 228 products made in Portugal to chain stores in 27 countries.

Fruit and vegetables, as well as sustainably caught cod were the star items, with a growth of 33% and 20% respectively. All in all, 20,000 tons of fruit and vegetables were sent to European markets, especially Rocha pears (11,900 tons), pointed cabbage (3,400 tons) and red berries (2,300 tons). This volume represents a 150 million revenue for national suppliers, i.e., 2 million euros more when compared to the previous tax year.

This year, there are plans to extend the number of categories to new domestic products. “We are assessing the possibility of exporting some national cheeses, according to some criteria already identified: producers’ capacity and interest from the external markets where we are present,” says Bruno Pereira.

Exports and pandemic increased canning production

The canning industry was one of the categories experiencing a sales rise during the early stages of the covid19 pandemic, Santa Catarina tuna sales included.

“In the beginning, there was a greater demand for food, namely for the canned category, which includes tuna. The tuna available in our stores includes our own brand, Nixe, and comprises several items, including tuna from the Azores, produced by Santa Catarina cannery”, admits Lidl’s purchasing manager. “Once the State of Emergency was decreed and the public saw that there were in fact no retail supply problems, consumers chose to plan their real needs more carefully and there was a gradual stabilisation of consumption in various categories, with a lower frequency of trips to stores and a higher record of shopping volume per trip”.

At the Santa Catarina cannery in São Jorge there was a lot of work. “Those were days of great stress, caused by the need to respond to orders that increased exponentially for three weeks, to implement contingency plans and to manage fear of the pandemic in a working context. Fortunately, we had no cases of infection in our organisation. Our employees were exceptional in their efforts to respond positively to the market”, says Rogério Veiros, chairman of the board of directors of Santa Catarina.

“We must not forget that Santa Catarina is a factory on the Azorean island of São Jorge, to which there is only one boat once a week, so the logistical challenge of responding to a short-term demand is more difficult for us. In the meantime, there was also a strike at the Port of Lisbon, making things even harder for us”, Veiros said.

But the sales ‘paid off’. “Only in Lidl, sales in March quadrupled compared to the monthly average of 2019”, stated Rogério Veiros. “The lower-priced tuna had the highest demand and we are talking about a very high quantity. One of the brands reached almost half a million 120g cans in just a few days”.

This year the cannery expects a growth on invoicing: the goal is to reach 20%. “The year of 2019 brought a positive evolution in production, we finally managed to accelerate our production, as a result of investments and small, surgical, changes in our factory. In terms of invoicing, we had an atypical year, because we were not able to follow the path we were on since 2016, of 10% per year”, says the chairman. “This trajectory was broken in 2019, due to commercial strategy and positioning in relation to certain markets; however, in 2020, we expect to growth 10% and recover what was lost in 2019. Our goal is ambitious, to grow around 20%”.

Entering new markets, through Lidl, will contribute to that end. “We expect growth in sales in the domestic market and in exports, with Lidl, to new markets where this chain is present. Santa Catarina aims to grow 20% this year, in its turnover, and we already closed the month of May within this growth pattern. Therefore, we expect a leverage in sales with our client and partner Lidl within this percentage of growth,” said the head of the cannery in São Jorge.

Still, Veiros warns: “We must be careful in the analysis of canning sales, considering the effect of the pandemic, because, if in March we had exponential growth, we must not forget that final consumers filled their storerooms and distribution reinforced the product in stock. Moreover, the world is different and consumption habits are different, so we may face some surprises and at this moment the demand in the domestic market has already slowed down. In some cases, it is facing a true reversal”.

But there are still high expectations for the foreign market. “This year we already registered export rates of 30%. Traditionally, we export a lot to Italy, the preserves from the Azores are greatly valued in this market, with which we have a long-lasting relationship. But we are growing a lot in markets like the UK, USA and the centre of Europe. With the partnership with Lidl we will further diversify this range of countries where the chain is present”, considers Rogério Veiros.

NOTE:

The above article will be your case study for this academic year for this module, therefore your examples in your assignment should relate to this article.

Please do not contact the company mentioned in the article as you will not be rewarded in terms of marks for doing so.

The objective of this assignment is to assess your ability to apply the theory you have learned in this module to the above article.

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AssessmentInstructions

To complete this module students must submit an Individual Written Assignment (2500 words excluding references) (weight = 100%)

Students should examine the case study using and applying concepts drawn from the module.

The case study will be published on Blackboard.

To pass this assessment, the written assignment must include an analysis and discussion based on the Operations & Supply Management module concepts.

Students should discuss the two topics below applying them to the case study:

· Capacity & Demand Management

· Location implications

Expected content: definition of concepts, explanation and their application to the case study using adequate and relevant examples. Discussion should include evaluation and critical analysis.

Indicative/suggested structure:

· Overview of topics (1000 words)

· Case study analysis (1000 words)

· Recommendations (500 words)

Marking Criteria

The following criteria will be used in evaluating this assessment:

· KNOWLEDGE & UNDERSTANDING of the topic

(20%)

: Provides definitions and explains concepts in own words.

· APPLICATION (20%):

Applies the module topics to the case study and uses relevant examples from the case study.

· EVALUATION (20%): Analyses the case study, evaluating the information provided (discussion goes beyond descriptive analysis or a mere copy of case study statements)

· RECOMMENDATIONS (20%): Provides recommendations for the company based on the application and linking to other module topics (in addition to the main topics discussed).

· COMMUNICATION AND PRESENTATION

(10%)

: Effectively engages in debate in a professional manner and produces detailed and coherent reports.

· REFERENCING STYLE (10%):

Referencing according to Harvard style

;

In-text referencing

;

Full list of references

Note: At least one textbook must be used to support the assignment. Avoid website references such as Investopedia, Wikipedia, etc. or relying solely on the information on the lecture slides.

Please see a detailed marking grid in Appendix A.

Formative feedback and support during the module

Formative feedback provides opportunities to reflect on your ongoing work and preparation for your assignment. This will be done on an ongoing basis thorufhout the module in the tutorial sessions. Support to your assignment will be provided in each tutorial.

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Further information about this assessment is available on the Blackboard site for this module and includes: FAQs and guidance videos.

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All work should be word processed in 12-point font Times New Roman or Arial and single spaced.

The first page of your coursework must include:

· Your student number

· The module name and number

· Your word count

Word Limit

The maximum word limit for this coursework is 2500 words (excluding references).

· There is no +/- 10% on word count and anything after the maximum word count will not be marked, in line with UWE Bristol’s

Word Count Policy

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· In line with UWE policy, this word count includes everything in the main body of the text (including headings, tables, citations, quotes, lists, etc.).

· The references, bibliography and footnotes (provided footnotes only include references) are NOT included in this word count.

Referencing and Assessment Offences

Please ensure you reference all sources used when developing your assessment, using the

UWE Harvard

. Failure to properly reference your work to original source material can be grounds for the assessment offence of plagiarism and may result in failure of the assessment or more serious implications. Further guidance on correct referencing is available on

UWE’s Study Skills referencing pages

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UWE’s Assessment Offences Policy

outlines potential offences and it is your responsibility to understand this policy and avoid potential offences. Details of what constitutes plagiarism and how to avoid it can be found on UWE’s Study Skills

pages about avoiding plagiarism

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Text-matching software (e.g. SafeAssign) is used to check every submission against other submissions made at the same time, previous submissions to UWE and other universities, and internet sources. We may also manually search for matches. When submitting your work, you will be required to confirm that the work is your own.

It is an assessment offence to:

· copy work from any source, including your own previous assessments, and present it as your own work for this assessment, or to provide your own work to others

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Instructions for submission

You must submit your assignment before the stated deadline by electronic submission through Blackboard. Notification that the electronic submission portal is open for your assignment is displayed (usually two weeks before the submission date) in the Coursework tab in myUWE, the Coursework tab in Blackboard and via an announcement in the Blackboard course.

Please allow sufficient time to upload your assignment, as the system becomes busier and slower as the deadline approaches. Only your final upload will be counted. Ensure all your information is submitted at one attempt to avoid overwriting your intended submission. Always check and retain your receipts.

Late submission in the 2

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hours following the deadline will be accepted but the assignment mark will be capped at a pass. Submissions after 24 hours will not be accepted. For full guidance on online submission through Blackboard, see

UWE’s Academic Advice pages

on Assignments

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Submissions of coursework by any other method (including a paper copy, on disk or by email) are NOT permissible for this module unless specifically agreed in advance of the submission date.

Before submitting your work, please ensure that:

· You have proof read you work thoroughly to ensure your work is presented appropriately

· You have addressed all the required elements of the assessment

· You have referenced in accordance with the guidance provided

· You have addressed each of the marking criterion

· The submission is in the correct format

Final feedback and marks release

Students will normally receive marks and feedback on their submission within 20 working days of the submission deadline (not including public holidays or university closure days). Any delay in returning students’ work will be communicated by the module leader via Blackboard.

Feedback on this module is not limited to the written comments you will receive on individual written assessment submissions.

Feedback and marks for this module will be available by 23 February 2021. For further guidance on feedback, please refer to the module handbook.

Further guidance and support

There are a number of sources of support to improve your study skills, including:

· The

UWE Library Study Skills pages

– for online support and bookable workshops

· The Faculty of Business and Law’s

Academic Success Centre

for bookable workshops

·

Guidance on using UWE’s Library.

Specific study skills pages relating to this module include:

·

How to plan and structure your writing

·

Writing skills

·

Further research skills / techniques

·

Report writing

·

How to write critically

·

English language support

For further guidance on UWE assessment regulations and terminology see UWE’s Academic Advice pages.

Personal Circumstances

If you are experiencing difficulties in completing a piece of assessment on time due to unexpected circumstances (for example illness, accident, bereavement), seek advice from a Student Support Adviser at the earliest opportunity. Appointments can be made via an Information Point or online

via the

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Student Support Advisers can advise as to whether you should submit an application for ‘Personal Circumstances (PCs)’, how to do so and what evidence is required to support the application. Further details on PCs can be found on the Student Support Pages.

The module leader
cannot
grant personal circumstances or extensions.

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Appendix A: Marking grid

Marking criteria (Total mark: 100%)	Excellent	Good	Satisfactory	Needs improvement	Fail
KNOWLEDGE & UNDERSTANDING of the topic Provides academic definitions and explains concepts in own words. (20%)	Excellent understanding of topic, significant relevant material included. Excellent definition and explanation of concepts. (20)	Good understanding of topic, relevant material included. Good definition and explanation of concepts. (15)	Satisfactory understanding of topic, mostly relevant material included. Satisfactory definition and explanation of concepts. (10)	Acceptable understanding of topic, mostly relevant material included. Acceptable definition but the explanation might not always be clear. (5)	Poor understanding of topic, significant irrelevant material included. Unclear definition, no sources used and limited to no explanation of concepts. (0)
APPLICATION (application of concepts to the case) Applies the module topics to the case study and uses relevant examples from the case study. (20%)	Shows detailed application of module topics relevant to the case study. All relevant concepts (on that topic) are covered and applied and examples are relevant to the area of study. Always uses extremely detailed and relevant examples from the case study to support argument. (20)	Shows good application of module topics relevant to the case study. Most relevant concepts (on that topic) are covered and applied and examples are relevant to the area of study. Mostly uses relevant examples from the case study to support each argument. (15)	Shows general application of the module topics relevant to the case study. Understands most concepts which are related to study. Satisfactory application of concepts with minor misunderstandings. Sometimes uses relevant examples; some examples provided out of context of argument. (10)	Shows limited application of module topics relevant to the case study. Understands concepts but application is incomplete or inappropriate. Not many relevant examples used to support arguments made. (5)	Very limited use of concepts and theories. Application is not given or considered. No use of examples to support argument. (0)
EVALUATION Analyses the case study, evaluating the information provided (discussion goes beyond descriptive analysis or a mere copy of case study statements) (20%)	Well integrated study with in-depth original and critical analysis. In depth and critical evaluation of material. Draws detailed conclusions relevant to study. (20)	Largely integrated study with a good level of original and critical analysis. Critical evaluation of most data. Most conclusions relevant to study. (15)	Mostly integrated study with some original and critical analysis. Evaluates using a selection of techniques to judge information. Some conclusions are not drawn from the information. (10)	Predominately descriptive, without originality or critical analysis. Unable to make judgements about relevance and significance of information. (5)	Wholly descriptive. Unable to judge the value of information. (0)
RECOMMENDATIONS Provides recommendations for the company’s operations based on the application and linking to other module topics (in addition to the main chosen topic). (20%)	Excellent operational recommendations for the organisation have been made. These have been based on and linked back to the analysis of the case. Several additional module topics are used in the recommendations. (20)	Good operational recommendations for the organisation have been made. Generally based on and linked back to the analysis of the case. Some additional module topics are used in the recommendations. (15)	Reasonable operational recommendations for the organisation have been made. Might not always be directly based on or linked back to the analysis of the case. General reference to other module topics in the recommendations. (10)	Little to no operational recommendations for the organisation have been made. Not directly based on or unclear how it is linked back to the analysis of the case. Limited to no reference to other module topics in the recommendations. (5)	No operational recommendations for the organisation have been made and/or no link to the analysis of the case. No consideration of other module topics in the recommendations. (0)
COMMUNICATION AND PRESENTATION Can engage effectively in debate in a professional manner and produce detailed and coherent reports. (10%)	Always communicates effectively and excellently in an appropriate format/ language in a clear and concise manner. Excellent logical flow. (10)	Always communicates effectively in an appropriate format/language in a clear and concise manner. Good logical flow. The message is clear. (8)	Communicates effectively in an appropriate format/language. Usually presents information in a clear and concise manner. Satisfactory logical flow. (6)	Meaning is clear and format conforms to basic requirements. Limited use of language and message is not always clear. (4)	Does not communicate effectively and meaning is unclear. Does not use appropriate format/ language. Unclear message. (0)
REFERENCING STYLE Referencing according to Harvard style In-text referencing Full list of references (10%)	Referencing always according to Harvard style. Accurate in-text referencing and consistent full list of references (10)	Referencing mostly according to Harvard style. Accurate in-text referencing and consistent full list of references with minor inconsistencies. (8)	Referencing mostly according to Harvard style. Mostly accurate in-text referencing and mostly consistent full list of references with some mistakes. (6)	Referencing frequently does not comply to Harvard style. Persistent mistakes with in-text referencing and full list of references. (4)	Referencing frequently does not comply to Harvard style. Incomplete or inexistent references. (0)