Week2AssignmentinStrategicPlanning.docx

Running Head: Section Two of Capstone Paper 1
Section Two of Capstone Paper 3

Section Two of Capstone Paper

Joyce Crow
MGT 450: Strategic Planning for Organizations
Keith Wade
May 10, 2021

Organizational Design and Governance Structure of JBS Foods

Organizational design is a process for shaping how organizations are run and structured (Abraham, 2012). It involves various aspects of life involving team formations, line of reporting, team formations, communication channels, and decision-making procedures.
For JBS Foods Company, which is currently the most prominent protein producer globally and various processed pork, beef, chicken, and lamb, its organizational design encompasses marketing, teams, communication channels, and decision-making. The marketing teams of JBS Foods Company have obligations for developing customer and consumer information (JBS Foods, 2019). For every business unit of this profit organization, the marketing efforts are led by the Chief Marketing Officer or Director of Marketing. The Director of Marketing reports to the vice president of Retail Sales, Pricing, and Marketing or President of the business unit. JBS Foods Company also uses social media channels to learn about their brands, products, and value chain. The leadership style in JBS Foods is analogous to that of a centralized organization. The decision-making powers are bestowed to the top management or the head office, and communication is passed through a hierarchical chain of commands (Abraham, 2012). In other words, executives making the decision and then communicated to other employees.
The governance structure of JBS Food Company is made up of a Board of Directors, a Permanent Fiscal Council, the Global Compliance Department, and advisory committees to the Board of Directors who handles specific topics such as auditing, sustainability, risk and finance management, stakeholders and governance (JBS Foods, 2019). The highest governance body of JBS Food Company is the Board of Directors. There were nine members by the end of the year 2019 who serve the board. In addition, the board of members is elected general meeting of shareholders to serve unified two-year terms. Furthermore, board members are responsible for determining business policies and guidelines (JBS Foods, 2019). They also deal with social, economic, and environmental commitments.
Challenge coupled with the rise of lab-created and plant-based products as alternatives to meat.
There is a likely shift in customers’ tastes and preferences in the future. People will turn to vegetable-derived alternatives in the future because meat obtained from animals will be a luxury. Also, the amount of meat required to be utilized by the entire world will not be enough to produced due to the increasing population. In addition, plant-based products made by meat process companies like JBS Food will decrease the protein gap through more affordable products such as plant-based products compared to animal protein.
The company has launched a plant-based product. It found the Vegan product under one of the Brazilian brands, Seara. It also started Ozo plant-based meats. “This was through a wholly-owned plant-based start-up planter (Watson, 2020)”. Planterra is made of a mixture of plant-based proteins. The plant-based brand and Ozo are made, just like the food is made in the kitchen. Ozo burger ingredients include water, canola oil, pea, textured pea protein, sustainable palm oil, and rice protein fermented by shiitake mycelia, malt extra flavor methylcellulose, ascorbic acid, salt, and yeast extract (Watson, 2020). In Brazil, the company has about 57% of the plant-based burger. It has Moy Park subsidiary suppliers in Europe of chicken burgers. In addition, in more than 3,000 stores in the US, it has ten plant-based products under the Ozo brand. Despite these strategic moves, JBS Foods needs to invest heavily in plant-based product alternatives to bridge the protein gap and meet the world’s demands.
Investing in the production of meat alternatives is a challenge because it means that the company will focus on the methods it will use to process the new plant-based products and the products it currently offers. It is also a challenge because the company has to understand the markets of new plant-based products. The company’s target market of flexitarian consumers for plan terra may differ from that of other products. In terms of strategies, JBS Food Company requires new expertise to produce the new plant-based products. This means that the company needs to allocate more resources, hire expertise, put up several processing plants, and purchase raw materials. Also, the company will adopt a new marketing strategy, precisely, for the plant-based products because there is a need to decipher customers’ preferences. According to Coyne (2021), other companies such as Tyson Foods, Cargill, Smithfield Foods, and Maple leaf foods have made their strategic moves toward producing the said meat alternatives. JBS Food Company is at no discretion but to pay competitive enough products in the market to maintain loyal customers. More importantly, it has to adopt a campaign strategy that creates awareness and persuades customers to purchase its new products (Hitt et al.,2016).

References

Abraham, S. C. (2012). Strategic Management for Organizations. San Diego, CA; Bridgepoint
Education, Inc.
Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2016). Strategic management: Concepts and

Cases: Competitiveness and globalization. Cengage Learning.
JBS Foods (2019). Annual and Sustainability Report. JBS. https://jbs.com.br/wp-

content/uploads/2020/05/ras-jbs-2019-eng-final.pdf

Watson, E. (2020, March 3). JBS enters the plant-based meat arena via Planterra foods with OZO
brand. foodnavigator-usa.com. https://www.foodnavigator- usa.com /Article/2020/03/03/
JBS-enters-plant-based-meat-arena-via-Planterra-Foods-with-OZO-brand