Going for growth by investing in people, products and plant
A Hazlewood Sandwiches case study

Page 0: Introduction

High quality businesses understand their market, know customers' requirements, and meet their demands. To do this, they must continually invest not only in market and product research but also in the three Ps: peopleproductsplant.This Case Study shows how and why Hazlewood Sandwiches has developed its new state-of-the-art factory at Manton Wood, Worksop (Nottinghamshire), which builds on the...
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Page 1: Hazlewood Sandwiches

Greencore's traditional activities lie at the start of the food production chain, whereas the new convenience foods operations are at the end of it, and include many products with high added-value. Hazlewood Sandwiches is the largest company within Greencore's Chilled Foods Division. It employs 3,000 people, of whom 2,000 work at Manton Wood and 650 work at the company's Park Royal site that...
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Page 2: The sandwich market

A market comprises all the buyers and sellers of a particular product such as sandwiches or pizzas. Firms need to know the size of the market in which they compete. Market size is measured in two ways:1. by value - e.g. total sales annually of £100 million for Product A2. by volume - e.g. 1 million units of Product A sold each year. Currently the UK sandwich market is worth £3 billion...
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Page 3: Investing in plant

To grow, organisations need to invest. They face many possible investment choices. Wise investment decision-making involves identifying investment opportunities that offer the best chance of a high return. The buoyant market for sandwiches offers worthwhile investment opportunities. The company has made two significant investments in sandwich manufacture. 1. In 1998 Hazlewood Foods purchased...
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Page 4: Profit and loss forecast

Given the growing market and a tripling of production capacity, the company's forecast was for a significant improvement in financial return which would generate a rise in ARR. The company also anticipated that the average cost of each sandwich it produced would fall, because:The new factory offers a superior production flow line. Compared with the old factory, less labour would be required to...
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Page 5: Investing in people

Many businesses see their workforce as their greatest asset and recognise that a highly motivated, intelligent, properly trained, committed workforce is best placed to deliver the best results.Sandwich making remains labour intensive. Although machines butter the bread, and apply the mayonnaise almost all other ingredients are added by hand. So the workforce needs to be committed to the task...
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Page 6: Investing in products

To stay ahead of the competition, firms need to monitor customer requirements, introduce new products and modify existing product lines. Hazlewood Marketing Department used customer research to establish the requirements of two customer groups:1. direct customers: retailers2. end customers: shoppers.Hazlewood Sandwiches produces the well-known 'Sutherland' brand, and retailer brands for multiple...
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Page 7: Conclusion

Hazlewood Sandwiches operates in a highly competitive growing market, which it leads. To retain that lead, the company has an ongoing programme for investing in state-of-the-art plant, people and product development. In this way it gives customers and consumers better choice while providing higher returns to shareholders from increases in profits and higher rates of return on investment.
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Related: IMI
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