Question

Required: cover company background, operational side of the business (no need for the finance maybe touch upon it very lightly), what was successful and what went wrong. cover the turnaround phase and analyze it. Pls refrence everything you use with proper citation and footnotes

Exhibits / evidence / data supporting and complementing the text will be expected; indeed we want you to present the evidence for your conclusions.

Choose a distressed company situation and identify the causes of failure, the nature of the crisis and what actions management took to turn the business around, using insights derived from the course.

Solution

Tate & Lyle Company Description

Currently, Tate & Lyle is the largest global sugar processor established in 1921 as a consequence of a merger between two family-operated sugar refiners previously founded in the mid-18^th century by Henry Tate and John Wright. According to Bat et al. (2012) the company has built its position as a global leader in the carbohydrate processing industry. The company has dominated its operations in UK, Portugal, Canada and Zimbabwe. Over the years since its inception (century and a half), the company has been better positioned in adapting to changing conditions including nationalization by government and increase in the demand of non-sugar sweetening products. In particular, in the late 1970s the company suffered from unprecedented unprofitable ventures leading to its acquisition in its core area of venture. This is necessitated by the company contemporary approach to scientific and technical expertise, research and innovation tandem with the client’s collaboration.

Successes of Tate & Lyle Company

Maintaining Market Share and Profitability

In the Post-world war 1 era, the company was faced by numerous challenges threatening its existence in the global sugar industry. However, in 1970’s, the company laid down its unprofitable businesses and reinvigorated their management team to recover on its lost market share and profitability. This was achieved by the management recognizing that sugar was not the only sweetener product of interest to their clients but high fructose corn syrup would equally give them a fortune. Through the entity global production facilities, they are better positioned in converting raw materials into ideal, high-quality ingredients for their clients (Tate & Lyle, 2010). The company venture into production of sucralose sugar replacer Splenda used by international entities such as PepsiCo, Unilever and General mills contributed to a full recovery of the company. As at 2016, the company pre-tax profit had increased from 25 million dollars to 126 million dollars. In 1985, Tate & Lyle has prioritized on two global areas which are the specialty food and bulk ingredients processing and acquired several American beet factories. In addition, the company has been named in the FTSE 100 with shares increasing with 2.2% from 28p to 628p as shown in figure 1 below.

Figure 1: Tate & Lyle Shares Increase

Source: (Tate & Lyle, 2016)

Diversification in Operations

In July 1988, the company acquired Staley Continental which was a major corn wet milling company in America. This provided the company with a 25%…………………………………..Please click the paypal icon below to receive this assessment for only $15