Corporate Digital Communication | July 2021 Membership No :40068754

TABLE OF CONTENTS

1 TASK 1 ..............................................................................................................................................6

1.1 Organizational Summary of Cargills Food City .........................................................................7

1.1.1 Type of The Organization .....................................................................................................7
1.1.2 Size of The Organization.......................................................................................................7
1.1.3 Competition and Market Share ............................................................................................ 7
1.1.4 Product Portfolio ..................................................................................................................7
1.1.5 Customer Base and Key Customer Segment ........................................................................7
1.1.6 Stakeholder Analysis ............................................................................................................8
1.1.7 Theme Chosen – Customer Loyalty......................................................................................8

1.2 The Role of Cargills Corporate Reputation, Identity and image to support the Achievement
of Objectives ........................................................................................................................................9
1.2.1 The Importance of Corporate Reputation on Customer Loyalty ..........................................9
1.2.2 Evaluating the impact, role of Cargills food city’s corporate identity, image, reputation on
objectives to achieve customer loyalty. ........................................................................................... 9

1.3 Evaluation of the Stakeholder Analysis to influence Cargills Corporate reputation ...............10

2 TASK 2 ............................................................................................................................................15

2.1 Organization’s corporate strategy, structure, systems, culture, its impact on positioning,
corporate reputation and identifying gaps in between corporate identity, image and
recommendations on addressed gaps to achieve Cargills objectives. ...............................................16
2.1.1 Evaluation of an organization’s corporate strategy, structure, systems, culture, its impact
on corporate positioning, Reputation ............................................................................................16
2.1.2 Assess gaps in between corporate identity, image, recommendations on addressed gaps
to achieve Cargills objectives. ........................................................................................................18

2.2 Strategies for developing a corporate reputation to build brand equity for the organization’s
corporate brand to achieve customer loyalty including the role of employee. .................................19
2.2.1 Strategy to develop a corporate reputation to build corporate brand equity to achieve
customer loyalty. ............................................................................................................................19
2.2.2 Recommendation for managing the role of employees to achieve objectives, corporate
branding strategy. ..........................................................................................................................21

2.3 Evaluation of approaches to monitor and measure Cargills brand equity .............................22
2.3.1 Evaluation of shareholder value strategy to measure brand equity ..................................22

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2.3.2 Evaluation of Return on Relationship approach to measuring and monitor brand equity 23

3 TASK 3 ............................................................................................................................................25

3.1 Evaluation of environmental trends driving changes in stakeholders’ digital behaviour,

justification of appropriate strategies for digital communications to achieve customer loyalty. ......26
3.1.1 Increase of e-commerce base in Sri Lanka .........................................................................26
3.1.2 Increased demand on personalization ...............................................................................26
3.1.3 Increased use of social media and new platforms .............................................................27
3.1.4 Strategies for Digital communications to support in achieving customer loyalty ..............28

3.2 Effectiveness of Cargill’s available digital channels and key technological developments that
can impact Cargill’s corporate reputation. .........................................................................................29
3.2.1 Effectiveness of digital channels within the market ...........................................................29
3.2.2 Key technological developments in digital tools that can impact on CR of Cargills food city
31

3.3 Recommendation of digital communication strategy to protect and strengthen CR and

stakeholder relationships s including digital technologies for measurement and monitoring ..........32
3.3.1 Recommending a digital communication strategy .............................................................32
3.3.2 Digital technologies which could be used to monitor and measure the Cargills reputation
33

4 REFERENCES ...................................................................................................................................34

5 ANNEXURE .....................................................................................................................................38

TABLE OF FIGURES
Figure 1 Market share of Cargills .............................................................................................................7
Figure 2 Revenue of Cargills (Annual report 19/20) .................................................................................7
Figure 3 Products portfolio of Cargills food city .......................................................................................7
Figure 4 Population of Sri Lanka (based on age) ......................................................................................7
Figure 5 Consumer loyalty ladder .............................................................................................................8
Figure 6 Brand value comparison (Brandfinance.com) ............................................................................8
Figure 7 Fomburn's CR framework , 1996 ................................................................................................ 9
Figure 8 Stakeholder prioritization of Cargills (Mandelow's matrix model) ...........................................10
Figure 9 EPS of Cargills ...........................................................................................................................12
Figure 10 Competitor positioning map ...................................................................................................16

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Figure 11 Cargills structure ....................................................................................................................17

Figure 12 Cargills customer reviews .......................................................................................................17
Figure 13 Vision, Mission and Values of Cargills.....................................................................................18
Figure 14 Corporate personality test of Cargills food city ......................................................................19
Figure 15 Triple bottom line ...................................................................................................................20
Figure 16 The Service-Profit chain by Heskett, 2008 ..............................................................................21
Figure 17 Brand rankings according to the brand value in Sri Lanka (Brandfinance 2016-2020) ..........22
Figure 18 Cargills ROI & EPS fluctuation (Annual report 2016-2020) .....................................................22
Figure 19 Market capitalization of Cargills.............................................................................................22
Figure 20 ROR model ..............................................................................................................................23
Figure 21 ................................................................................................................................................24
Figure 22 ................................................................................................................................................24
Figure 23 Annual digital growth of Sri Lanka (hootsuit report 2021) .....................................................26
Figure 24 Share of traffic by device of Sri Lanka (hootsuit 2021) ...........................................................27
Figure 25 Most popular Socialmedia sites 2021 .....................................................................................27
Figure 26 Race model .............................................................................................................................28
Figure 27 Digital Marketing Trifecta ......................................................................................................29
Figure 28 Cargills fan base (Socialbakers.com) ......................................................................................30
Figure 29 Facebook audience of Sri Lanka .............................................................................................30
Figure 30 5D’s of digital marketing model by Chaffey and Smith ..........................................................32
Figure 31 Modern consumer journey .....................................................................................................33

TABLE OF TABLES
Table 1 Stakeholder analysis ....................................................................................................................8
Table 2The impact, the role of Cargills food city’s corporate identity, image, reputation on objectives to
achieve ...................................................................................................................................................10
Table 3 Evaluation of factors affecting Stakeholders and their influence on CR ....................................14
Table 4 Evaluation of an organization’s corporate strategy, structure, systems, culture, its impact on
positioning, corporate reputation. .........................................................................................................17
Table 5 Gaps identification of Cargills ....................................................................................................18
Table 6 Impact of Triple bottom line on CR and BE of Cargills................................................................20
Table 7 ROR model for Cargills ...............................................................................................................23
Table 8 Effectiveness of digital channels within the market ...................................................................30
Table 9 Digital tools which impact on CR of Cargills...............................................................................31

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Table 10 5D’s of digital marketing model...............................................................................................32

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BRIEFING PAPER

TO: SENIOR MANAGEMENT TEAM

FROM: MARKETING CONSULTANT

DATE: 28TH OF JULY 2021

This report objectively apprises Cargills Food City’s brand and the role of digital communications in improving business
branding and creating brand value in response to customer loyalty. Key stakeholders are defined and prioritized along
with business climate and environmental patterns that cause shifts in stakeholder digital behaviour. Strategies are then
presented along with evaluation tools to boost Cargills Food City’s corporate image and digital communications to build
brand equity and eventually surge customer loyalty.”

Keywords: Corporate Reputation (CR), Customer Loyalty (CL), Brand Equity (BE)

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1 Task 1

Word count (Excluding Headings)

Task 1: 1290
Task 1(b): 490, Task 1(c): 800
(5% upward variation)
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1.1 Organizational Summary of Cargills Food City

In 1844, A British businessman called William Milne and David Sime Cargills established Cargills (Ceylon)
PLC and Cargills food city has been established in 1983 as the retail face (SBU) of the group. The company
vision is “To be a global corporate role model in community-friendly national development” and the
mission is “To serve the rural community, customers and all other stakeholders, through core business –
food with love – and other related businesses, based on the three main principles of; Reducing the cost
of living, enhancing youth skills, bridging regional disparity by enhancing local and global markets. Cargills
food city is the 12th valuable brand of Sri Lanka as per the brand finance index – 2020.

1.1.1 Type of The Organization

Cargills PLC is a profit motive, public limited liability company, and the group owns FMCG,
Restaurants, and Retail and Finance business and it has been listed on Colombo stock exchange
since 1946. For 19/20 FY the company has recorded Rs.107,052 Mn revenue with Rs.83,720 Mn
contribution (with 13.12% growth) from Cargills food city retail chain. (Figure 2).

1.1.2 Size of The Organization

Cargills food city owns a chain of 411 outlets across the 25 districts of the island as the end of
2020, and it operates as “Cargills food city” supermarkets and “Cargills food city express” with
10522 permanent employee base, an average of 3750 yearly recruitments.

1.1.3 Competition and Market Share

Cargills owns a 45% market share in the retail Other,
11%
business and plays the leading role for decades.
Keels, the 2nd market leader, competing to take Arpico, Cargills,
over the leading position by bringing new 18% 45%
innovative technologies. (Figure 2)
Keels,
1.1.4 Product Portfolio 26%
Cargills offers over 6000 product brands Figure 1 Market share of Cargills
including Cargills owned brands. (Figure 3)

1.1.5 Customer Base and Key

Customer Segment Groceries
7% 7%
Cargills food city has a 1,177,081 loyal customer Household
Figure 2 Revenue of Cargills 30%
base and a 40,000+ daily customer base. Cargills 9% Fruit
(Annual report 19/20)
target the mass market consisting of all the Beverages
10% Vegitables
community segments based on buying power decided on their income.
10% 15% Homeware
Identified key customer is Millennials with higher-purchasing power (Figure 4) 12% Liquior
Meat/Fish
since their uplifting lifestyles, digital activity and adaptability in the turbulent
environment.
Figure 3 Products portfolio of Cargills food city

Customer Segment Value Propositions

Higher and Upper Middle-Income Purchase decision depends on the
Class quality and brand availability
Expects and evaluate a range of
Lower Middle-Income Class products against price & quality of
products
Purchase decision depends on the
Low-Income Class
price and income
Figure 4 Population of Sri Lanka (based on age)

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1.1.6 Stakeholder Analysis

Cargills maintains a continuous positive relationship with its pool of internal and external stakeholders ranging from employees to
customers and investors who concern about the performance of the company (Table 1) (Annexure 3)

Internal Employees Provide secure jobs for 10,522 Employees across the island. H
Cargills caters to a quality, convenient, and safe shopping experience for all the community
Customers H
segments physically and digitally.
Return on investment for shareholders had been slightly decreasing till 18/19 and has
Connected Shareholders H
increased it by 33% by 19/20 even in this Covid crisis.
500+ local and foreign suppliers have linked with Cargills and 20000+ plus agricultural and
Suppliers H
fishery farmers depend on Cargills.
Cargills engage in facilitating programs for the developments of farmers and engage in Eco
Community M
friendly and safe business model in the current pandemic period.
External
Government Contributes by providing solutions for unemployment and paying taxes for development. M

Table 1 Stakeholder analysis

1.1.7 Theme Chosen – Customer Loyalty

Cargills food city is being the market leader in the industry for years and should follow defensive strategies to maintain its current
position in the industry due to the rapid development of the digital and e-commerce sector and the innovations done by the
competitors. Due to the high competition with low switching costs in the industry, creating a loyal customer base is the best strategy
that should be prioritized to retain the market share.

According to the industry analysis done by Brand finance Lanka (Figure 6), Keels is having rapid growth due to its rebranding strategy
and innovative technologies. If keels perform in the same way the Cargills won’t be able to retain its market share in the future. The
retailer with a well-defined customer offering and experience will be the future market leader; the brand and offering will move
beyond advertising, increasing basket size and creating a more loyal customer base.

According to Emarsys.com, loyal customers spend 67% more on product and services than new customers and retention of existing
customers is much more cost-effective than attracting new customers. Therefore, focusing on customer loyalty is critically
important for the future existence of Cargills. Cargills has already established a loyalty point programme initially which operates as
awarding a portion of the transaction price to the customer to redeem the price when doing the transactions and giving seasonal
officers exclusively. The ultimate goal of the implementation of Cargills loyalty programme is to drive the prospective customers to
brand advocate through the loyalty ladder (Figure 5) for the growth of Cargills.

BRAND VALUE OVER TIME - RETAIL BRANDS

(BRANDFINANCE 2016-20)
20000

15000

10000

5000

0
2016 2017 2018 2019 2020

Cargills Keels

Figure 6 Brand value comparison (Brandfinance.com) Figure 5 Consumer loyalty ladder

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1.2 The Role of Cargills Corporate Reputation, Identity and image to support the Achievement of Objectives

1.2.1 The Importance of Corporate Reputation on Customer Loyalty

CR interprets the perception of stakeholders of the brand. (Wepener & Boshoff, 2015). CR is the “heart and soul” of any
organization due to the clear outcomes of customer retention, customer loyalty, effective pricing, higher share value.
(Narteh & Braimah, 2019). CR is the outcome of building corporate image, its positively related to customer loyalty.
According to Fombrun, CR enhances customer loyalty through a strong corporate personality, identity, image. Annexure
10 elaborates Fombrun’s CR framework (Figure 7) in Cargills context.

Figure 7 Fomburn's CR framework , 1996

1.2.2 Evaluating the impact, role of Cargills food city’s corporate identity, image, reputation on objectives to achieve
customer loyalty.
The goal of consumer loyalty is important to retain as a market leader against strong competitors. To drive the business
towards loyalty, in the long run, the business should focus on the below short-term objectives. The impact of Cargills
corporate identity, image, reputation on its objectives has been evaluated in annexure 10, table 2

Objective Corporate Reputation Corporate Identity Corporate Image

Implementing growth, defensive As the market leader, the Convenient shopping
strategy to retain, achieve more expansions and performance experience with a variety of
customer base through Cargills through growth strategy products for affordable
offerings, enhancing the brand value positively impact on building a prices with cutting edge
Customer by expanding into new categories corporate identity. technologies in Cargills
Retention & (Eg: Bakery), Providing Strengthening strategic enhances the corporate
Loyalty comprehensive product range, capabilities by increasing image.
standards lead to building CR while product range impacts visual CSR projects, eco-friendly
improving customer loyalty. performance to build corporate practices result in
identity, ultimately impacting enhancing the image with
customer retention improving trust of company capability
customer loyalty. to achieve customer loyalty.
Employee retention and motivation Cargills established operational- The practices (Eg-timely
positively impact enhancing service level programs, such as payments, providing safe
quality, ultimately building CR and identifying the best employee working conditions)
customer loyalty. each month. Annual Staff followed during the
Cargills traditional organizational Appreciation Award Ceremony pandemic period built the
Employee culture negatively impacts employee to sustain employee happiness, corporate image of Cargills;
Retention, motivation, it should be modernized strengthen Cargills corporate leading employees to build
Motivation to increase performance. identity, improve motivation, trust in Cargills to provide
Cargills directors introduced an ESO and ultimately impact customer better service to its
scheme that gives the ownership of loyalty. customers, impacting
several shares to its employees, customer loyalty.
these practices influenced CR
positively, impacting customer
service to build loyalty.
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The annual share price has been Corporate governance practices Business practices,
increased from LKR 189.12 to LKR followed by Cargills impacts innovative strategies (
192.69 while the company is corporate identity, building home delivery) followed by
struggling with Covid regulations, investors trust about the Cargills during the
impacting positively on CR to financial performance; motivate pandemic smoothly
Financial motivate more investments in the them to invest in community processed due to the brand
Performance future to expand Cargill’s service to development programs that image, positively impacted
build loyalty. impact customer loyalty in long on financial performance.
run. Financial stability drives a
company to deliver better
service, its influence on
customer loyalty.

Table 2 The impact, the role of Cargills food city’s corporate identity, image, reputation on objectives to achieve

1.3 Evaluation of the Stakeholder Analysis to influence Cargills Corporate reputation

Stakeholders can affect or be affected by the performance of the organization (Freeman 2010). And important for any
organization to achieve its objectives to drive towards sustainable growth. (refer to Annexure 3 for stakeholder analysis).

CR is the overall estimation of the images that various stakeholders have of an organization. Mandelows matrix in figure
9 helps to identify, prioritize the key stakeholders, their positions to build CR of Cargills based on their power, interest.

Figure 8 Stakeholder prioritization of Cargills (Mandelow's matrix model)

According to Mandelow’s matrix, table 3 evaluates the influence of key stakeholders to develop strategies to enhance
its CR while building customer loyalty. (Refer Annexure 3 further)

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Stakeholder

Perception
Interest
Power

Critically evaluating factors affecting Stakeholders and their influence on CR in Cargills context

Cargills has positioned itself for offering fresh fruits, vegetables, milk and other commodities directly from over 20,500 suppliers,
which are supplied to customers at the lowest possible prices through a network of retail outlets that preserves a safe, appealing
environment.
In the pandemic period also, Cargills was able to provide continuous high-quality service to its customers to the greatest extent
through Cargillsonline.com, mobile application
conveniently. The increased quality of products due to the
backward integration of agricultural products, continuous
Customers

service despite the pandemic supported Cargills to keep its

Positive
H H loyal customer base, maintain its CR positively.

Cargills must focus on providing high quality branded

shopping environment, eco-friendly, convenient, safer
innovative practices to build loyalty, CR in the competitive
dynamic environment since CR is a magnet to attract
customers (Ronald Alsop, 2004)
rs/Investors
Shareholde

CR is the main driver which motivates investments for the company. Cargills has an 1869 shareholder base. Cargills was able to

Neutral
H H grow the business with 15.2% ROI in the 19/20 FY while all others are struggling with the Covid crisis and increased EPS to
10,47LKR impacting shareholders' wealth (Figure 9)

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The Cargills behavior during the recession, ability to protect, foster culture, credibility led to growth rather than stability,
generating business profits. It impacts the shareholder trust, future investments towards the company, it positively affects the
CR, loyalty as a ripple effect.

Cargills market capitalization has been dropped

from 51 billion to 43 billion due to the
competition, must focus on the competitors to
keep being the leader in the industry.

Figure 9 EPS of Cargills

Cargills recognizes as obvious that the employees are the most important drivers of growth, executed following initiatives to
address the identified priorities.
• Showcasing a commitment to youth development by cultivating an inclusive workplace with 6,748 (64.1%) of total
Employees

Positive
employees under the age of 30, with 3,647 (54%) of those employees being female.
H H
• Organizing 100 training sessions with a total of 13,761 non-unique participants. A total of 26,209 training room hours were
delivered, with an average of 17 hours per participant.
• Collaborating with internationally renowned training organizations, such as the IGA Institute, to enable ongoing training and
development of employees.

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In the Covid period also, Cargills was able to manage its staff without cutting
off the number of employees while all the others are doing it.
According to Aon Hewitt, (2013) low employee engagement lead to poor
quality service, which ultimately impacts CR, customer loyalty.
Cargills must focus on positive HRM practices, modern company culture to
keep the employee base motivated to build CR and loyalty by delivering the
best experience to customers.

The Cargills Group manages the most diverse and

extensive end-to-end food and agriculture supply
chainin Sri Lanka. The Group has been able to
methodically execute a 24 hour, 365-day
operation, seamlessly connecting a widespread
network of 4,193 agriculture farmers and 16,100
Suppliers/ B. Partners

dairy farmers to supply fresh quality produce,

reduce the cost of living, and create enhanced
access to import and export markets for

Positive
L H agriculture by collaborating with many partners
locally and internationally.
In the Covid crisis period also Cargills supported
suppliers with the following initiatives which
positively on the CR.
• Timely payments without delays
• Providing guidance, technical support to 558 SME suppliers, traders to continually enhance quality standards, introducing
Sri Lanka Good Agriculture Practice (SL-GAP) certification with the government support
Having supplier’s faith in Cargills, impacts CR positively encouraging the loyalty of customers due to the availability of quality
products without any delays.

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Cargills has a good CR for eco-friendly business manners, they have given employment opportunities for the community without
any discrimination. In the past year, Cargills has invested in 33 community development projects, 444 educational sponsorships.
And also, Cargills Food City has taken steps to protect its loyal customers, employees, and suppliers while continuing to operate
in an environmentally friendly manner during the pandemic.
Community

Positive
L H

Cargills value chain is subject to the rules by the government, managed its staff, business activities while dealing with business
Government

interruptions according to the strict guidelines issued by the government in the pandemic period.

Neutral
Even though the regulations highly impacted business operations, Cargills shifted the business into online platforms, existed in
H L
the industry while retaining the CR, loyalty.
Cargills food city is a faithful taxpayer for years, has earned a good CR for its service to the economy.

Table 3 Evaluation of factors affecting Stakeholders and their influence on CR

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TASK 2

2 Task 2

Word count (Excluding Headings)

Task 2: 2067

Task 2(a): 753, Task 2(b): 880, Task 2(c): 434

(5% upward variation)
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2.1 Organization’s corporate strategy, structure, systems, culture, its impact on positioning, corporate
reputation and identifying gaps in between corporate identity, image and recommendations on
addressed gaps to achieve Cargills objectives.

2.1.1 Evaluation of an organization’s corporate strategy, structure, systems, culture, its impact on
corporate positioning, Reputation

Corporate positioning is the corporate identity, the organization occupies in stakeholder’s minds relative
to the competition (Kotler & Armstrong, 2000). Cargills has positioned as the largest supermarket chain
which offers quality goods for the lowest price. (Figure 10)

Figure 10 Competitor positioning map

Multiple elements should be streamlined to achieve organizational objectives to enhance CR and

positioning. According to Fombrun and Van Riel (2004), CR is a collaboration of success of organization
strategy, culture, structure, systems.

Impact on Positioning and corporate

Element Critical evaluation Rating
reputation
Cargills has positioned itself as market leader in the According to Cargills vision, mission, values &
industry. Its strategy is to keep its market share objectives (Figure 13) its corporate strategy
despite competition by penetrating the market, focus on reducing cost of life while enhancing
enhancing its value proposition to achieve the vision youth skills, bridging disparity to serve
of becoming corporate role model. customers a shopping experience equally,
Strategy conveniently. These principles guide Cargills to
8
Community development projects & Cargills online improve positioning and CR in customer mind.
shopping service (Figure 12) executed by Cargills in
the pandemic period also support building a good Cargills expanding its market to online
positioning and CR in the consumers' mindsets while platforms (cargillsonline.lk), physically to cover
supporting the objectives discussed in task 1 to all districts to make access to everyone by
achieve customer loyalty. implementing market development strategy,

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Cargills aim to enhance value proposition in

new categories, segment to increase product
range as discussed in task 1.
According to the structural audit (Annexure 2), Tall structure discourages new ideas, self-
Cargills has a tall structure (figure 11) with cross- driven employees which negatively impacts
functional teams to coordinate operations, a positioning and CR to achieve objectives on
Moderate level of integration with other categories, employee retention.
functions of group to align with its objectives. Having a group management team in every
Structure 6
Most decisions are taken by top management with a area has enabled strategies like backward
high level of centralization practice, demotivating integration which leads to providing quality
new ideas. foods cost-effectively, it will enhance
performance and sustainability to support
build CR.
Cargills is modernizing its culture, directly
Cargills has a rich culture that aligns with all impacting its visual performance level,
community segments. It has positioned in consumer bandwidth that shares within Cargills by
mindsets as a closest retail partner, has built CR by reflecting the overall picture to outside. It
facilitating pleasant customer experience with positively impacts company positioning with
modernized culture over years aligning with its the competition.
Culture 7
objectives. According to Johnson & Scholes, the cultural
Cargills need to focus on decentralizing decision- web explains the impact from culture to
making power, creating an environment that performance in aspects of employee, customer
motivates, retains employees. satisfaction, building background to make
optimum decisions, efficiency and annexure 4
discusses it in Cargills context.
SAP is the ERP system and the integrated retail A perfectly designed system, being first to
solution that enables data flows between different introduce it as a supermarket chain to Sri Lanka
departments. A separate POS is active for caused to place Cargills positioning on top.
transactions and final data reports at end of the day Convenient system supports to deliver quick
to top-level decision making. service impacting on CR positively on
For secondary distribution, Cargills has a "Sales Force employees, customers both.
System Automation system," and the company's sales teams 8
constantly analyze outlet performance around the
country.
- Cargills should focus to invest in a system
related to market research to gather data
on competition to achieve its objectives.

Table 4 Evaluation of an organization’s corporate strategy, structure, systems, culture, its impact on positioning, corporate
reputation.

Figure 12 Cargills customer reviews Figure 11 Cargills structure

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Figure 13 Vision, Mission and Values of Cargills

2.1.2 Assess gaps in between corporate identity, image, recommendations on addressed gaps to achieve
Cargills objectives.

Cargills has been struggling to keep being market leaders despite competition. According to the ACID test
(Annexure 6) and figure 14, identified following gaps between its image, identity, should be addressed
immediately.

Gaps identified Justification Recommendation

A centralized decision-making structure, Cargills should decentralize its authority,
traditional management styles demotivate enabling a stress-free modernized
self-driven, innovative employees, lead to working environment.
dissatisfaction with their work-life. This Cargills can give employees a sort of
Less employee
ultimately impacts customer satisfaction. recognition by frequent audits, surveys,
engagement and
restructuring corporate culture, efficient
motivation
platforms to share employees’ ideas with
top management. It would eventually
motivate them to give a better service.

According to the annual report, Cargills Cargills should establish effective

involves in multiple CSR programs (33 marketing communication platforms to
programs in 2020), even Cargills spread its CSR programs, especially on
CSR
incorporated the Cargills Foundation, to social media platforms.
communication
undertake social development initiatives in
gaps
2019.
These initiatives are not being
communicated to society.
Table 5 Gaps identification of Cargills

Addressing identified gaps can strengthen the route of achieving customer loyalty in the future.

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2.2 Strategies for developing a corporate reputation to build brand equity for the organization’s
corporate brand to achieve customer loyalty including the role of employee.

Cargills food city currently follows an organization-oriented corporate branding strategy that exercises
influence over the culture and structure of the company by Cargills PLC.

The value of associations, emotional connection in customer's minds with the brand refers as brand equity,
it is deeply interconnected with CR (Shariq, 2018). Brand equity is an important aspect of building
stakeholder’s trust towards the organization. Cargills can achieve its objectives; good financial
performance, Employee retention & motivation, customer retention by improving brand equity through
CR development.

2.2.1 Strategy to develop a corporate reputation to build corporate brand equity to achieve customer
loyalty.
2.2.1.1 Enhancing Cargills Corporate Personality to build CR and brand equity
Cargills has been leading the market in retail
CORPORATE PERSONALTY SCALE TEST -
industry since 1983, build their persona as the low- CARGILLS FOODCITY
cost leader which provides quality service for a fair
price. But recently Cargills brand value dropped Customer perception Employee perception

due to the innovative concept introduced by Keels, Ideal perception

Cargills also introduced a rebranding strategy to

defend its market share. (Refer figure 6 in task 1). Agreeableness
10
In the current context, personality perception is 8
Machismo Enterprise
not at Ideal levels among both employees, 6
customers (Figure 14, Annexure 5). Cargills scoring 4
2
lower on both enterprise, chicness since 0
stakeholders perceive it as an old fashioned, less Informality Competence
stylish brand with a lack of innovative culture. Also,
the ruthlessness, machismo score high on
customers', employee’s perceptions due to its Ruthlessness Chic
centralized, autocratic management style (Lieber,
2018). Cargills scoring higher in the perception of
competence than the desired level due to their
Figure 14 Corporate personality test of Cargills food city
quality, reliable corporate practices.

Cargills strategy should be developed by the living standard changes of the community since customers
look forward to experiencing prestige, innovative, high-end shopping culture. Cargills can use their
competencies to build their enterprise perception, creating a less machismo, flexible culture that can
lead its employees to give a pleasant, self-driven service. Also enhancing corporate personality is a
solution for gaps identified in task 2.1, ultimately resulting in better brand equity to achieve customer
loyalty.

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2.2.1.2 Enhancing Cargills CSR strategy to build CR, brand equity.

CSR operations help businesses to create strategic

capital, promote CR, brand equity (Fatma, et al., 2015),
90% of fortune 500 companies are investing in CSR
projects (Mckinsey, 2009). When doing CSRs,
companies focus on 3 key principles: People, Planet,
profit (Triple-Bottom-line; Figure 15).

According to annexure 7, Cargills CSR strategy under

triple bottom line has discussed in the following table.

Figure 15 Triple bottom line

Element Impact on CR, BE

Following CSR projects executed by Cargills add value to its CR.
Ex -Cargills Sarubima, Scholarship programs
But as identified in 2.1. Cargills doesn’t have a good communication strategy to get the
People
maximum benefit from it. customers are unaware of the engagement that they have
done. These CSRs are critical to enhancing market value as same as customer loyalty
through its CR.
Cargills has executed,
• GAP certification
• Investments in energy conservation
• Minimalizing post-harvest loss
Cargills have an environmental grievance mechanism. Stakeholders are urged to raise
Planet
their issues via a variety of channels, including hotlines, feedback forms, e-mail
conversations, and social media. These complaints are subsequently assigned to the
appropriate company units and processed on a case-by-case basis.
According to the study in GFK, 56 % of the customers are loyal to companies that act in
an environment-friendly manner.
Cargills has a structured corporate governance framework to express its accountability.
Financial performance of achieving a 13% growth in revenue with 36% growth in
Profit operating profit in 19/20 encourages various stakeholders/investors. Since there is a
positive link between performance, CR, investments add value to the brand, unlimitedly
impacting customer loyalty.

Table 6 Impact of Triple bottom line on CR and BE of Cargills

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2.2.2 Recommendation for managing the role of employees to achieve objectives, corporate branding
strategy.
Employees can be identified as the foundation of the corporate brand (Aakar, 2004). The Service-Profit
chain by Heskett (Figure 16) portrays the importance of satisfied, loyal, productive employees in creating
value which ultimately leads achieve growth, profitability through customer satisfaction, loyalty (Heskett et
al, 2008).

Figure 16 The Service-Profit chain by Heskett, 2008

As discussed in task 2.1, Annexure 5 & 6, Employee satisfaction and motivation significantly law in
Cargills due to their autocratic, rigid structure. Therefore, Cargills should enhance employee
engagement by sharing ideas/suggestions through internal communications to get them involved in
decision making, decentralize the structure to provide a sense of responsibility to increases the
commitment, it will motivate employees to be self-driven, do tasks in addition to their job duties
(Garas, et al., 2018). Ultimately Cargills can expect growth in employees on innovation, problem-
solving, strategic thinking resulting in a more responsive environment to achieve customer
satisfaction, loyalty.

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2.3 Evaluation of approaches to monitor and measure Cargills brand equity

Brand equity is a combination of assets and liabilities associated with a brand name and symbol that adds
or subtracts the value offered by a product or service (Aaker, 2013). higher Brand equity levels increase
loyalty, repetitive purchases, cash flows, improved competition (Pepe, et al., 2011).

2.3.1 Evaluation of shareholder value strategy to measure brand equity

Building strong brands raise stock market values by raising demand for products and services, which is
considered as a fundamental element in producing future earnings streams. (Aaker 1991). Therefore, there
is an inverse relationship between brand equity and stock return. ROI is used to measure stock return and
according to Robert Jacobson ROI changes over time impact brand equity.

CARGILLS ROI & EPS

25

21.36
20

15 15.82 15.21
12.35 12.5 11.7
10 10.47
9.55
7.25 7.7
5

0
2016 2017 2018 2019 2020

Return on investment (%)

Earnings per share (Rs.)

Figure 17 Brand rankings according to the brand value in Sri Figure 18 Cargills ROI & EPS fluctuation (Annual report 2016-
Lanka (Brandfinance 2016-2020) 2020)

Figure 18 shows the ROI % and EPS which can be used

to measure shareholder value and figure 17 shows a comparison of Cargills and Keels brand position
according to the brand value based on Brandfinance reports. According to the graphs, there is a
considerable drop in ROI that caused to reduce ultimately effect on shareholder value in 2019, parallelly it
has affected brand value also. Therefore, it’s clear that
the shareholder value strategy can indicate brand CARGILLS MARKET CAPITALISATION
equity. (MN)
According to Willmott (2010), Strategic narratives which 60
lead to investments in brand building enables 40
augmented market capitalization. Investments in brand 20
building contribute to brand equity and Figure 19 shows
0
the increasing market capitalization of Cargills over the 2016 2017 2018 2019 2020
past five years.
Figure 19 MarketMarket
capitalization of Cargills
Capitalisation (Mn)

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2.3.2 Evaluation of Return on Relationship approach to measuring and monitor brand equity

ROR is simply “the value that is accrued by a person or brand due to nurturing a relationship” (Rubin,
2011). ROR approach brings long-term benefits to the organization by leading companies to manage
organic engagement, sentiment monitoring, community management; allowing companies to
measure brand equity. (Stewart, 2009).

Figure 20 ROR model

The below table discusses the 5 elements required to achieve ROR,

Surveying Remember the

Listening to Delivering excellent
consumers “social” part of Being consistent
customers client service
interest social media
Cargills listen and Employees should be Cargills can Cargills engage Cargills should
engage with its trained and conduct surveys with customer build their
customers motivated to give a or build modern discussions in reputation by
through social better in-house platforms to social media. But modernizing the
media platforms service. (Figure 21) respond better to they could expand strategy along
consistently. Cargills is doing customer it with upcoming with the social
(Figure 22) better in online interests. platforms. changes and
services. Eg- Tiktok, competition.
Instagram
Table 7 ROR model for Cargills

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Figure 21 Figure 22

According to the above, Cargills can achieve customer loyalty by acquiring brand equity through the form
of Recommendations and Referrals, Social Media Engagement, Followers and Fans, Loyalty and repeat
business, Brand advocacy, Social Sharing which could be used to monitor and measure brand equity.

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3 Task 3

TASK 3

Word count (Excluding Headings)

Task 2: 1526

Task 2(a): 570, Task 2(b): 460, Task 2(c): 496

25 (5% upward variation)

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3.1 Evaluation of environmental trends driving changes in stakeholders’ digital behaviour, justification
of appropriate strategies for digital communications to achieve customer loyalty.
The digital world is continually expanding due to the influence of changing environmental conditions,
technological advancements that have an impact on company reshaping. Every activity such as product
portfolio development, communication has been impacted by digital transformation, companies have
recognized the benefits of digital platforms, tools. (Nocolas Bonoll, 2019)

Under PESTEL factors (Annexure 1), the following trends can be identified as driving changes in
stakeholders’ digital behaviour.

3.1.1 Increase of e-commerce base in Sri Lanka

The Figure 23 shows that between 2020 and2021, the number of internet users in Sri Lanka increased by
800 thousand(+7.9%), with Internet penetration reaching 50.8 percent in January 2021. (Hootsuite report
2021). This has emerged new opportunities, platforms including e-commerce services for businesses to
survive in the pandemic. According to a Kantar Sri Lanka research report regarding the post-lockdown in
Sri Lanka, the e-consumer basket has climbed from $11 to $38 in Sri Lanka. E-payments, E-banking, online
medical consultations, and Esports, which have become a new way of life for Sri Lankans, have indeed
contributed to this.Therefore, it’s important, shifting into new concepts to survive while maximizing
shareholders wealth. Cargills also started Cargills' online e-commerce platform to penetrate the market.

Figure 23 Annual digital growth of Sri Lanka (hootsuit report 2021)

3.1.2 Increased demand on personalization

According to SmarterHQ, 70% of millennials are annoyed by firms sending unwanted marketing materials,
and 71% of consumers are annoyed by impersonal shopping experiences. According to DataReportal, 2021
there were 30.41 million mobiles, which has been increased by 612 thousand (+2.1%) between January
2020, January 2021, 64% of the population use mobile phones to use the internet (figure 24). Since mobile-
based platforms are the most suitable platform to reach the consumers personal, there is a clear
opportunity to go with the trend in Sri Lanka.

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Figure 24 Share of traffic by device of Sri Lanka (hootsuit 2021)

3.1.3 Increased use of social media and new platforms

According to DataReportal, 2021, there are 7.90 million social media users in Sri Lanka (to 36.8% of the
total population), it has been increased by 1.5 million (+23%) in 2021. According to figure 25 new social
media platforms like Tiktok which is attributable to “raw, high-energy, deeply engaging” videos with
embedded music, visual effects have driven rapid growth in the pandemic, companies have started to use
this to get people involved in marketing.

Figure 25 Most popular Socialmedia sites 2021

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3.1.4 Strategies for Digital communications to support in achieving customer loyalty

RACE model has been conducted to develop a digital strategy for Cargills to achieve customer loyalty
(Annexure 8, Figure 26).

Stage Strategies to enhance consumer loyalty

Using SEO tools on social platforms to drive traffic, increase the volume of the audience.
Handling social media campaigns to get the awareness on Cargills including
Reach
CSR, animal welfare, equality campaigns on Tiktok, Youtube, Instagram alone with Facebook
(should differentiate the content) which matches with the consumer persona (Annexure 9).
Maintaining user-friendly, convenient online interfaces, ensuring the organization is always
ready to listen to customer requirements.
Act
Integrating AI technologies, frequent promotions to improve stakeholder engagement to share
their experience digitally, making it zero moments of truth to build customer loyalty.
Handling personalized campaigns, recommendations, reminders by using big data to manage
Convert one-to-one marketing campaigns to manipulate customer preferences.

Offer loyalty benefits, encourage consumers to provide feedback/reviews, offer different

messages for different users by ranking their engagement with Cargills (Loyalty points rewards
Engage based on basket value).
Cargills should focus on generating organic brand advocators by delivering an ideal shopping
experience.

Figure 26 Race model

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3.2 Effectiveness of Cargill’s available digital channels and key technological developments that can
impact Cargill’s corporate reputation.
3.2.1 Effectiveness of digital channels within the market
The effectiveness of the Digital channels used by Cargills food city can be discussed in table 8 under the
digital trifecta model. (Figure 27)

Figure 27 Digital Marketing Trifecta

Type Digital Channel Performance Rating

Articles Daily ft, Sri Lankas one of the reputed business e-newspaper, has
recognized Cargills among the top 10, most admired companies in Sri
Earned
Reports Lanka and daily news has published about the HRM practices of Cargills. 6/10
media
Cargills page has earned positive feedbacks, mentions for its quality
Reviews service during the pandemic, building its CR and CL.
Cargills food city runs through two separate identities for physical and
online segments, Cargills food city and Cargills online and owned fan
base is as follows. (Figure 28 shows the increase of Cargills Facebook fan
base over the past months.)
Company Cargills Food City Cargills Online
Website Facebook 287,100 4,535
Owned Instagram 11,000 3,408
8/10
media Social media
Cargills should focus on expanding its owned media channels by joining
Blogs with emerging social media platforms; Tiktok, Pinterest.
Cargillsonline website operates as an online shopping platform and
Cargills do continuous advertising through it.
Cargills Ceylon's website and LinkedIn page also run for corporate
visibility to other stakeholders.

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Figure 28 Cargills fan base (Socialbakers.com)

For to the customer persona of Cargills food city (Annexure 9), Facebook
is the most suitable platform for Cargills to reach the target audience
through sponsored ads since it covers all the customer segments in the
community (according to figure 29 Facebook potential advertising
population is 41% of the total population).

Paid Advertisements
8/10
media

Figure 29 Facebook audience of Sri Lanka

Table 8 Effectiveness of digital channels within the market

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3.2.2 Key technological developments in digital tools that can impact on CR of Cargills food city

Digital tools are being used to get the optimal benefits of digital channel’s effectiveness and efficiency.
The following table apprises tools that can be used to create a positive impact on Cargills CR.

Digital Tool Consideration Rating

A quality site structure with better contents that covers wider
keywords, drives the website to boost position in the organic
search results and leads unaware customers to the website
increasing the CR.
Search Engine SEO algorithms can be utilized to work well with different search
7/10
Optimization (SEO) engines to achieve desired results in each step by Optimizing each
step of the digital customer journey. (Gadget, 2019).
With the development of virtual assistants (Siri, Alexa) SEO
beyond Google is required for organizations to build CR.

Big data is being used to develop methods for increasing

conversion rates, prospect engagement, conversion rates,
revenue, and customer lifetime value by identifying the most
effective content for users. AI coupled with machine learning can
Big Data and Artificial “identify, map, and track customer data in real-time” (Mehta,
8/10
Intelligent 2020).
AI and Big data together can build the CR of Cargills by connecting
with consumers with personalized data together with supply
chain efficiencies, leading to a loyal customer base.

Table 9 Digital tools which impact on CR of Cargills

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3.3 Recommendation of digital communication strategy to protect and strengthen CR and stakeholder
relationships s including digital technologies for measurement and monitoring

3.3.1 Recommending a digital communication strategy

Companies use variance digital communication strategies to run the strategies on strengthening the CR
within its circle of stakeholders. Cargills can use the 5D’s of digital marketing model by Chaffey and Smith
(Table 10 & Figure 30) as a digital communication strategy to support the outlined strategies in task 2.2 to
strengthen CR and BE.

Figure 30 5D’s of digital marketing model by Chaffey and Smith

5 D’s Justification and Recommendations

In the dynamic digital world, it is vital to adopt trending digital devices. According
to Adam Berke (2016), modern consumers move and utilize multiple devices before
making a purchasing decision. Cargills has stepped into mobile devices via mobile
Digital Devices
applications and websites but it should be more optimized to digital
communication via utilizing additional capabilities of devices to interact with
customers.
Stepping into trending Social Media Platforms such as TikTok and doing continuous
and effective communication in the currently owned platforms of Cargills (Task 3.2)
Digital Platforms
by optimizing digital algorithms and increasing cross-platform integration with
personalized campaigns.
Collaborating with influencers and focusing on personalized marketing elements to
Digital Media encourage engagement on emotional dimensions of consumers on digital channels
can be used to increase customer loyalty on Cargills.
Utilizing the big data to predict consumer behaviours and purchasing habits to
Digital data optimize product offers and personalized solutions to offer a better service and
Cargills can gather reviews and respond to feedbacks builds the CR.
Using technologies like AI Chatbots with voice commanding functions and utilizing
Digital technology AR, VR, ML to deliver a customized innovative consumer experience increase
customer interactions with Cargills building CR and Loyalty.
Table 10 5D’s of digital marketing model

Implementation of this strategy would help Cargills to assist the modern customer journey as illustrated
in figure 31.

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Figure 31 Modern consumer journey

3.3.2 Digital technologies which could be used to monitor and measure the Cargills reputation

M&M tools used to quantify performance measurement through the effectiveness and efficiency of digital
channels, and the data is utilized to get important insight and make decisions. Cargills could use the
following tools to M&M the CR.

3.3.2.1 Google Analytics

Google analytics offered by Google, is being used to track, measure, report the ROI on adverts on digital
platforms and get insights on user-acquisition and user-behaviour data which drives the website traffic.
The insights can be used to reach the target audience to get effective traffic by optimizing other Google
services (publishing and advertising). Google provides detailed reports on optimization results and
continues to process data in real-time. As a result, constant insights are
provided to help optimize and strengthen the organization's digital marketing
domain, enhancing consumer loyalty and CR. (Google Marketing Platform,
2020)

3.3.2.2 Hootsuite
Hootsuite is a SaaS application that facilitates organizations to link different social media accounts to a
comprehensive social media management platform. It provides functionality to simplify repetitive and
complex tasks across platforms on a single platform, allowing executives to 'social listening' (Gary, 2020).
Further, Hootsuite provides insights on upcoming trends to build proactive
strategies to reach the audience and provides performance reports at the
end of campaigns to measure the impact on reputation and performance
(Hootsuite, 2020).

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4 References

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‘Digital in Sri Lanka: All the Statistics You Need in 2021’. DataReportal – Global Digital Insights,
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‘Needs-Based Selling: The 5 Phases of the Modern Customer Journey’. Vendasta Blog, 5 Feb. 2018,
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‘The Importance of Customer Loyalty - 5 Benefits’. Emarsys, 24 Oct. 2019,
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‘What Is Digital Marketing? A Visual Summary’. Smart Insights, 18 May 2021,
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Aaker, D. A. (1991) Managing Brand Equity; Capitalizing on the value of a Brand Name. New York, Free
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Aaker, D. A.and Biel, A. L. (2013). Brand equity and advertising: advertising's role in building strong
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Aaker, David. (2004). Leveraging the Corporate Brand. California Management Review. 46.
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Alsop, R. (n.d.). The best corporate reputation in America.
Alsop, Ronald. The 18 Immutable Laws of Corporate Reputation: Creating, Protecting, and Repairing Your
Most Valuable Asset. Free Press, 2004
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ARMSTRONG, G., & KOTLER, P. (2000). Marketing: an introduction. Upper Saddle River, NJ, Prentice-Hall.
Balmer, J. & Greyser, S., 2006. Corporate marketing: integrating corporate identity, corporate branding,
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Cargills Food City Recognised for HRM Practices at Lak Rakiya Harasara National Award Ceremony | Daily
FT. https://www.ft.lk/business/Cargills-Food-City-recognised-for-HRM-practices-at-Lak-Rakiya-Harasara-
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Cargills Recognised among the Top 10 Most Admired Companies in Sri Lanka - Press Releases | Daily
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Companies-in-Sri-Lanka/335-201658.
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Chun, R., 2005. Corporate reputation: Meaning and measurement. International Journal of Management
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2021].
Dailymirror.lk. 2021. Daily Mirror - Sri Lanka Latest Breaking News and Headlines. [online] Available at:
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Fatma, Mobin & Rahman, Zillur & Khan, Imran. (2015). Building company reputation and brand equity
through CSR: the mediating role of trust. International Journal of Bank Marketing. 33. 840-856.
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Fombrun, C., 1996. Reputation: Realizing Value from the Corporate Image. Boston: Harvard Business
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Garas, Sally & Mahran, Amira & Mohamed, Hassan. (2018). Internal corporate branding impact on
employees’ brand supporting behaviour. Journal of Product & Brand Management. 27. 79-95.
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Heskett, James L., et al. The Ownership Quotient: Putting the Service Profit Chain to Work for Unbeatable
Competitive Advantage. Harvard Business Press, 2008.
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Merry, J. (2013), "Aon Hewitt's 2013 trends in global engagement: where do organizations need to focus
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Narteh, Bedman & Braimah, Mahama. (2019). Corporate reputation and retail bank selection: the
moderating role of brand image. International Journal of Retail & Distribution Management. ahead-of-
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Parmar, Bobby & Freeman, R. & Harrison, Jeffrey & Purnell, A. & De Colle, Simone. (2010). Stakeholder
Theory: The State of the Art. The Academy of Management Annals. 3. 403-445.
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Pires, Vanessa, and Guilherme Trez. ‘Corporate Reputation: A Discussion on Construct Definition and
Measurement and Its Relation to Performance’. Revista de Gestão, vol. 25, no. 1, Jan. 2018
Shariq, Mohammad. (2018). BRAND EQUITY DIMENSIONS-A LITERATURE REVIEW.

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Singh, J., Crisafulli, B., Quamina, L. T. & Xue, M. T., 2020. To trust or not to trust”: The impact of social
media influencers on the reputation of corporate brands in crisis.. Journal of Business Research.

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https://brandirectory.com/rankings/sri-lanka/

Tan, X. Y. D. &. F. X., 2002. . Internet Integrated Customer Relationship Management a Key Success Factor
for Companies in the E-Commerce Arena.. Journal of Computer Information System, , 42(3), pp. 77-86.

The Consumer Decision Journey | McKinsey. https://www.mckinsey.com/business-functions/marketing-

and-sales/our-insights/the-consumer-decision-journey#. Accessed 24 June 2021.
Theron-Wepener, Marietjie & Boshoff, Christo. (2015). An instrument to measure the customer-based
corporate reputation of large service organizations. Journal of Services Marketing. 29. 163-172.
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Williams, R. J., Schnake, M. E. & Fredenberger, W., 2005. The Impact of Corporate Strategy on a Firm's
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Zaichkowsky, J., Parlee, M. & Hill, J., 2012. Managing industrial brand equity: Developing tangible benefits
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5 Annexure

ANNEXURE

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ANNEXURE 1 - PESTEL ANALYSIS

Drivers Impact Rating O/T
The government was taken legal actions against people and
Imposed businesses delegating rules which were imposed to control
island-wide Covid 19. The operations of the outlets were only allowed to
9 T
curfew due to deliver the essential services and it was negatively impacted
Political and legal

Covid 19 the revenue. After lifting the curfew Cargills is experiencing a

gradual increase in sales
Rules
regarding Central environment authority has taken actions to reduce
sustainable the usage of single-use plastic products as an initiative for
6 T
consumption environment protection. Cargills should focus on adopting
and those initiatives to its business practices
production.
Reducing the Impacts on imports and all the raw materials used for
value of the production increasing cost. It impacts the profitability of the 8 T
rupee business.
Consumer spending has been increased increasing
purchasing.
Economical

Lifestyle
7 O
growth

Economic Due to Covid 19, the Economy is experiencing negative

uncertainty growth increasing inflation rates and it impacts the 8 T
and crisis purchasing power of the customers

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Urbanization
and
Capitalize to boost supermarket penetration 6 O
increasing
population
Concerning
Impacts on Cargills to bring down fresh organic fruits and
healthy and
Socio-cultural

vegetables, since people are concerned about the 5 O

organic food
sustainability and healthy practices.
choices
Increasing
smartphone
penetration, Cargills has introduced Cargills online website and focus on
e-commerce social media promotions to get the benefits on increasing 7 O
usage and digital community
social media
usage
Big data Analytics use to streamline the supply chain, maintain a 360-
Technological

8 O
usage degree view of the customer base, optimize pricing.
Artificial Helps to unique needs specific to each customer and cater
intelligence them by adjusting strategies through personalized campaigns 7 O
usage
The earth-
friendly To reduce environmental impact through designing,
Environmental

7 T
business operating, and dispose of in an environment-friendly manner
practices
Sustainable Optimizing energy consumption and reduce resource
digitalized wastage that aligns the goal of global sustainability while 6 O
community human development.

ANNEXURE 2 - STRUCTURAL AUDIT

Dimensions Descriptions
Size 411 outlets, 10,522 permanent employees
Low level of integration between functions due to the tall structure. Every
Integration
department works with one purpose to reach the vision.
Sales and marketing functions have a moderate level of span of control, can make
Span of control
decisions on their own. Cross functionally, there are limitations.
Specialization High level of specialization due to the functional structure
Top management follows a high level of formulation process on decision making and
Formalization
approvals.
Centralization or Centralized structure on decision-making and demotivates the self-directed workforce
decentralization by not being open to new ideas.

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ANNEXURE 3- STAKEHOLDER ANALYSIS

Corpora
Expectations of Corporate
Stakeholder Description te
stakeholders identity
image
• Job security, growth Plays a significant role in
• Fair remuneration, implementing strategies and they
Employees

Positive

Positive
working conditions are the key link in managing CR
• (S.Cravens & Oliver, 2006)”
Internal

Training, career
development

• Quality, affordable One of the main concentrations

products on marketing objectives. (Diasz,
Customers

• Convenient, safe 2017).

Positive

Positive
shopping experience Customer focus and loyalty are
• Eco-friendly the top priority for the growth of
practices Cargills

• Sustainable business Plays the main part in the supply

Suppliers

Positive

Positive
partnerships chain and Cargills maintains a
• Reliable payment long-term relationship with local
cycles and international suppliers.
• Return on Directly impacts the existence of
Shareholders

investment the business. They are focused on

Positive

Neutral
• financial stability and the growth
Connected

Long term
profitability of the business.
• Sustainable growth
• Secured investments
Impacts on business performance
• Environment
Community

by concerning about the

protection
Positive

Positive
environment protection practices,
• Employment
Employment opportunities, CSR
opportunities
programs, and overlooking the
• CSR programs
overall business performance.
• Paying taxes, dues Influence on the company
without evasion performance by controlling the
• Contribution towards rules and regulations related to
Government

the sustainable the business performance (laws

Positive

Neutral

growth of the with quality and health, tax, Acts

economy and international trade)
External

• Following rules,
regulations

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ANNEXURE 4 - CULTURAL WEB

Factors Description
Stories 176 years of history, Market leader in the retail industry of Sri Lanka.
Symbols Symbolic color – Red
Slogan – On the way home
Leverage corporate name for a supermarket
Power structure The tall structure makes complications and delays in decision making.
Organization structure A centralized decision-making structure consists of a cross-functional team to
specializes in specific areas.
Holding power within Top management without building ground-level
leadership.
Rituals and routines Traditional culture in the workplace
Celebrates all the festivals and aligns business practices about the festival
themes.
Environment-friendly practices.
Low cost + good quality
Employee training and development programs
Control system Moderate level of employee rewarding and appreciation practices that
impact on potential skilled employees resulting in a high turnover.

ANNEXURE 6 - CORPORATE PERSONALITY SCALE RATING CALCULATION CRITERIA

Dimension Facet Item
Warmth Friendly, pleasant, open, straightforward
Agreeableness Empathy Concerned, reassuring, supportive, agreeable
Integrity Honest, sincere, trustworthy, socially responsible
Modernity Cool, trendy, young
Enterprise Adventure Imaginative, up-to-date, exciting, innovative
Boldness Extrovert, daring
Conscientiousness Reliable, secure, hardworking
Competence Drive Ambitious, achievement-oriented, leading
Technocracy Technical, corporate
Elegance Charming, stylish, elegant
Chic Prestige Prestigious, exclusive, refined
Snobbery Snobby, elitist
Egotism Arrogant, aggressive, selfish
Ruthlessness
Dominance Inward-looking, authoritarian, controlling
Informality None Casual, simple, easy-going
Machismo None Masculine, tough, rugged
The Corporate Personality Scale: Dimensions, Facets, and Items (Davies and Chun, 2004

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ANNEXURE 5 - AC2ID TEST (Balmer and Soenen 1999)

Element Description
Cargills management structure and centralized
decision-making style make employees dissatisfied
and demotivates self-driven employees without
Actual identity (Employee attitude, culture, giving them a chance within their traditional
quality measures) organizational culture. This practice impacted the
high rate of employee turnover creating low-quality
service leading in-house dissatisfying shopping
experience for its customers.
Cargills communicates a positive image through a
press release, conferences, about the company's
Communicated identity (Content, visual
performance. CSR programs executed by Cargills
analysis, and formal communication)
report to its stakeholders about the performance via
the annual report.
Cargills is conquering the retail market as a market
leader with a low-cost leadership strategy and now
Conceived identity (major stakeholders, values, they have entered digital platforms with high quality
and image) and convenient service patterns.
Cargills has not positioned itself as a company that
supports the community with CSR practices.
Cargills incorporated the Cargills Foundation, to
undertake the social development initiatives of the
Ideal identity (Unique resources and core
Group and initiated the Cargills Sarubima banner for
competencies)
the development of farmers' lifestyles. These
practices are not being perfectly communicated.
Desired identity (Vision, company leadership, Cargills vision is to become the global role model in
and top management) the community” this thrives to win and position on its
stakeholders' mind (Annual report 19/20)

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ANNEXURE 7 - CARGILLS CSR STRATEGY – TRIPLE BOTTOM LINE

Element The current context in Cargills
Cargills introduced ‘Cargills Sarubima’ in 2008, a fund that gives back 50 cents to the
community for every kilogram of fresh produce, and every liter of fresh milk,
purchased from our farmers. This fund has been mainly used to provide educational
scholarships for children, resources for learning and professional advancement,
insurance for farmers, and investment in local infrastructure.
People During the year, the fund provided a total of 444 beneficiaries with scholarships,
and other assistance. This amounted to a total disbursement of Rs. 21,920,000.

Introducing GAP certification with the Agriculture department to improve

agricultural practice in Sri Lanka is best demonstrated through the series of projects,
Save our Soil project in 2014 or the Agriculture Modernisation Project in 2018/19.
Cargills has invested in efforts to reduce our energy and water consumption across
Planet
all business units, Cargills initiatives to conserve energy across the ecosystem
include efforts to monitor energy usage, utilize renewable energy, and install
energy-efficient lighting. Another priority is to minimize food waste and post-
harvest loss.
Cargills food city was able to achieve a 13% growth in revenue with 15.2% ROI,
Profit operating profit Rs.846 Million with 36% growth in 19/20 FY.

ANNEXURE 8 - RACE MODEL

Activity Channels can be used KPI’s
Building brand Facebook, Intergram, Tiktok, Positioning Cargills brand name,
awareness while Youtube, Website increasing no of followers,
Reach
promoting contents (Paid, owned, and earned) keeping engagement

Delivering a clear Cargills online website, Twitter, Shares, likes, comments,

form of a message to Blogs, Facebook page interaction rate, pages per visit
Act
the target
community.
Ensuring a smooth Live chat and boxes for help, Subscriptions, conversion rates,
Convert flow in the process of Cargills online website, sales revenue
converting a client
Building customer Instagram (creating trends), Repeat purchases, brand
loyalty to achieve the Facebook, Tiktok, Snapchat advocates, Digitally loyal
Engage
long-term goal of customer base
Cargills.

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ANNEXURE 9 – CUSTOMER PERSONA

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ANNEXURE 10 - FOMBURNS CR FRAMEWORK IN CARGILLS CONTEXT

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