I raise disagreement with the annual report that has been presented to the stockholders by Olympic Foods. There has
been a generalization made that experience is the only factor in improvement in a business venture. There has been
unrelated parallelism drawn. Overall the report presented has got many loop holes.
In the business of fast food, the supply and demand of the raw materials bread, chicken, pork, beef, vegetables like
cauliflower, beans, tomato, etc. and various kinds of sauces play an important role. The supply of the raw materials
depend upon various factors that change from year to year. For example, in 2005 as Bird Flue inreased in the Asia
Pacific region, the poulty farmers had to slaughter a huge number of chicken contracted with this disease. As a
result, the supply of chicken decreased, increasing the cost of chicken.
The report makes a comparision between two unparallel businesses: the cinematographic accessories and the food
business. The decrease in the cost of the cinematographic accessories has depended on the advancement of science.
These accossories are all machine made and has not got the human factor in their production. The raw materials
required are not live. Even though there has been improvement of maintenance of the live raw materials that are
needed in food business, many natural factors like weather condition, farming and poultry processes come into the
factor that have a human touch, liable for mistakes.
Over the period of 25 years, the cook, the management, the people serving have all got changed. Even though the
company celebrates silver jubilee, the complete personnel involved in the process may not be as experienced as the
company. Nowadays, every company hires their employee on contract basis of 2 years. If such is the process followed
by Olympic Foods, the maximum age of the people working in the company may be only 2 years.
Olympic Foods must make sales comparisons with other like companies like the McDonald's and the KFC. To imporove
sales, the first thing to be done by the management is to conduct surveys to find out what is the taste of the
people in the region of the company stall. People of different regions have different tastes. The management must
recruit personnel who possess more customer oriented beaviour to make the customer feel warm and homely. Olympic
Foods must look into the weather in the next days and the availability of other raw materials and increase their
stock if needed.
Overall, the management of Olympic Foods must look into realistic things to improve their sales and thus business.
If they do not look into the proper things and meanderinto this and that, there is no guarantee of any gain in the
business. It will be better if anothe annual report is presented taking into factor the points mentioned in
paragraph five.
