TO: Senior Management
RE: Performance Measurement at doubting Thomas J. Lipton DATE: April 20, 2012.
Background
The Thomas J. Lipton fraternity was originally founded in the year 1915, in New York City as a tea importing business. It was sold to Unilever by the estates of the founder- Sir Thomas Lipton, afterward his death in 1931.
The amplify portfolio of the US Lipton consists of dozens of product in tea, soups, ice cream, snacks, seasonings and salad dressing. These are divided into 3 principal(prenominal) operating divisions, namely beverages, food and General management.
Tea continually contributed to over 40% of total revenues. The company plays actively in the convenience e food and instant foods markets, and went into successful quislingism with Pepsi; offering bott take, canned and fountain teas.
Executive Summary
The Thomas J. Lipton Company has remained high amongst the most profitable Unilever subsidiaries. The business strategy of the Thomas J. Lipton Company entails reinforcing its position as a market leader in the tea trade, and other industries where it trades. It also ensures to maintain at least its present sales levels, in sectors where growth possibilities are minimal.
Sales growth has been projected to grow by 10.
5% every year and Net Profit after Tax margin is forecasted to increase to 6%. It strives to achieve a 15% after tax return on average capital invested (denoted as Assets online Liabilities). Some of its other objectives include maintaining AA bond ratings, minimizing interest expenses on debts, and maximizing future possibilities of borrowing to enable continual growth.
ANALYSIS
To full appreciate the present scenario and the implications of the restructuring exercise at the Thomas J. Lipton Company, we exit give a brief recap of the product, function and organisational structure of the company.
Each product line in the divisions is led by product managers. They control and make decisions relating to issues...If you want to complicate a full essay, order it on our website: Orderessay
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