Page 2: Organisational structure
In business, it makes sense to concentrate on what you do best – your best lines. All organisations therefore need to build organisational structures which make it easy to:
- concentrate on best lines
- identify new opportunities arising in these areas
- channel resources and initiatives into best lines and particularly into new opportunities
- effectively manage best lines and opportunities
- encourage innovation and a ‘can do’ approach.
Heinz’s Project Millennia is all about enabling the organisation to adapt and change, so that it has the necessary flexibility to take the opportunities which will yield the highest possible returns. As part of this world-wide reorganisation and growth initiative, Heinz unveiled plans to focus on Europe-wide category management of its core businesses. Products and markets which offer the greatest potential for future growth and return on investments benefit from this category management approach, while product development, manufacturing, sales and marketing are directed to exploit opportunities in the most cost-effective manner.
By using this new approach, Heinz is able to respond quickly to changing consumer patterns on a Europe-wide scale - if, for example, tomato flavoured pizza bases prove to be popular with an individual country’s customers, then Heinz has the operational systems and marketing strategies to quickly meet this area of growth at a pan-European level. The 40 operating units within Europe have recently been formed into five new business organisations. These are:
The decision to divide the business into these categories was a further staging post in the move to give greater pan- European focus to operating and marketing strategies. Sales however continue to have a ‘country’ focus.
One of the main reasons for changing the organisational structure has been that Heinz can now look at its categories on a pan-European basis, making sure that resources are directed where the greatest prospects of growth and return lie.