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  • Essay / Tetra Pak Company Strengths and Weaknesses Assessment

    With headquarters located in Pully, Switzerland, Tetra Pak is an international food packaging and processing company. This company was founded in 1943 in Lund, Switzerland by a man named Ruben Rausing. In 2012, Tetra Pak had a turnover of 11.155 billion euros, compared to 9.98 billion euros in 2010. As of 2010, Tetra Pak has 43 material packaging plants that serve more than 170 countries across the world. They have 23,425 employees and are currently the largest food packaging company in the world by sales. Say no to plagiarism. Get a tailor-made essay on “Why violent video games should not be banned”? Get the original essay Tetra Pak offers packaging solutions, filling machines and processing solutions for dairy products, beverages, cheese, ice cream and prepared foods. In addition to processing, they also have distribution tools such as accumulators, cap applicators, conveyors, case packers, film wrappers, line controllers and straw applicators. They are heavily involved in environmental issues and believe in the statement “Renew, Reduce, Recycle and Be Responsible: The Pillars of Environmental Responsibility and Corporate Sustainability”. Packaging should save more than it costs. » Tetra Pak's specific target customer base is businesses that need their food and beverages packaged and processed. The ideology of Tetra Pak's sustainability practices is not directly known to the general consumer, although many consumers have likely purchased a good using Tetra Pak technology. They are able to operate in multiple markets thanks to Tetra Pak features used for many and wide variety of products. Since each Tetra Pak package bears the company name, consumers looking for a different line of products may recognize this product. Tetra Pak does not have many competitors in the market; rather, it competes with an entire market of producers who have found ways to reduce packaging costs without outsourcing. Competitors include SIG Combibloc, a Swiss manufacturer, and a Chinese packaging company, Greatview. Currently, Tetra Pak dominates the product processing and packaging market, but currently faces competition from innovations developed by manufacturing companies. They are involved in a very specialized industry and have dominated this industry due to the popularity of their products. The nature of their industry is B-to-B, where they work directly with companies that need food and beverage processing and packaging. Because they don't sell to individual customers in retail, they are able to reduce their marketing costs by going directly to businesses that need their services. A handful of factors can influence a company's operational decisions. The more our environment suffers from industry, the greater the need for sustainable products like this will be. This market is very attractive to new entrants as there is a lack of companies in the market and an increased need for sustainable and cost-effective packaging. In the case of Tetra Pak India, as the middle class became wealthier, they had more money to spend on food and beverages using Tetra Pak, increasing the profitability of the company. The philosophy that Tetra Pak believes in is to reduce and recycle. Throughout their decision-making plans, they keepconstantly in mind how they can reduce their impact on the environment. They believed they could demonstrate their commitment to their four principles of environmental sustainability by focusing on supporting post-consumer waste recycling programs. Although the idea of ​​reducing post-consumer waste is a simple concept, there is no one-size-fits-all solution when it comes to recycling in every country. In 2010, around 20% of all their packaging was recycled. Their goal by 2020 is to increase their recycling index to 40%, which means that around 2 out of 5 packages of products are recycled. They knew it would be difficult, so they looked to opportunities in countries where achieving this goal might be possible. India has offered many opportunities to Tetra Pak. In 1988, they partnered with the National Dairy Development Board to deliver cartons of milk to the people of India. This brought them significant revenue and allowed them to open 2 more factories in 2007. This can be attributed to the fact that India is the second largest country in terms of population and the increase in disposable income in within the middle class. The more people bought their products, the more post-consumer waste was created in India. Tetra Pak knew that recycling in India would be very different from programs in other countries; Ultimately, this turned out to be an opportunity where many pros outweighed the cons. Here are some of the benefits: Collecting and selling waste was a source of income for the vast majority of people living in abject poverty in the country. o Indian municipalities hire ragpickers to recycle Tetra Paks and other waste, creating jobs for the lower class. and increases the overall TP Recycling Index score. Tetra Pak containers enjoyed strong brand recognition in India, which allowed easy identification for rag pickers. NGOs in India were collaborating with municipalities to improve waste management efforts, such as sorting and recycling.o This was the first step in the waste value chain in end-to-end recycling which consisted to separate waste at source. The hierarchy of scrap dealers and scrap collectors allowed Tetra Pak to purchase PCC bales without having to manually extract or sort the waste. Although Tetra Pak is committed to increasing its progress in end-to-end recycling, the large quantity of TP products sold in India attributes the majority of its recycling efforts worldwide. Implementing an effective plan to increase their recycling index in India had a few drawbacks: it was not worth the hassle for the rag pickers to sort the TP cartons from the rest of the waste. There were not enough incentives or benefits from scrap metal collectors requesting TP. TP cartons usually contained residue of a sugary product, which attracted flies and rats.o This created health problems for rag pickers, in addition to the tedious and tedious physical effort required to sort these goods. Many manufacturers preferred to burn the cartons rather than send them for recycling because they feared that counterfeit products would be sold in these cartons. The process Tetra Pak uses to recycle these products would be very different from a program implemented in another country, such as Spain for example. In Spain, there is no class hierarchy compared to that of India. In India, the class of untouchables is made up of the majority of ragpickers, burdened by difficult and unhealthy work. Even though poverty exists in Spain, the.