ECONOMICS

INTERNAL ASSESSMENT

An Investigation OnThe Impact Of The Role Of Grace Kennedy In Jamaica

Name: Mark hillips Teacher: !chool: Kingston "ollege

TABLE OF CONTENTS
Page Introd#ction Aims and O%&ectives Methodology (mployed MODULE 1 *A+ *-+ *"+ !carcity .emand Analysis Income 0 *.+ *(+ MODULE 2 *A+ *-+ *"+ MODULE 3 *A+ *-+ *"+ *.+ Appendices "oncl#sions Reference Theory of Income .istri%#tion .emand for 6actors !#pply of 6actors (val#ation and Recommendations $) $, $/2$0 $1 $32'5 '$ '' Market !tr#ct#re rice l#s "osting (val#ation and Recommendations $5 $$ $' !#pply (val#ation and Recommendations 123 4 , / $ ' )

INTRODUCTION
Grace Kennedy is one of the "ari%%ean7s largest and most dynamic corporate entities8 The company started in Jamaica in $4'' as a small trading esta%lishment and 9harf fo#nders8 It has e:panded and diversified over the years; changing from a privately2 o9ned enterprise to a p#%lic company listed on the stock e:changes of Jamaica; Trinidad; -ar%ados and the (astern "ari%%ean8 Today; the Grace Kennedy Gro#p comprises a varied net9ork of some 05 s#%sidiaries and associated companies located across the "ari%%ean and in North and "entral America and the <nited Kingdom8 Its operations span the food distri%#tion; financial; ins#rance; remittance; hard9are retailing and food2 processing ind#stries8 In $44/; Grace Kennedy developed its '5'5 =ision; its o%&ective %eing to transform the %#siness from a Jamaican trading company to a glo%al cons#mer gro#p 9ith the %#siness roots in Jamaica8 After thirteen years on this &o#rney; the company is s#%stantially larger and stronger; meas#red %y the %#siness gro9th in reven#es; prod#ctivity; profits and market val#e8 Its mission contin#es to %e; 7 To satisfy the #nmet needs of "ari%%ean people 9herever 9e live in the 9orld >8 Altho#gh Grace Kennedy is a conglomerate and is involved in ?6ood rocessing; 6inancial !ervices; Information !ervices and Retail and Trading8@ This st#dy foc#ses on the 6ood rocessing operation8

AIMS
The ma&or aim of this IA is to investigate the role of Grace Kennedy in Jamaica8 This pro&ect 9ill also help me to f#lfil the reA#irements of the "A ( ("ONOMI"! e:am and give me a %etter #nderstanding of the topics highlighted in the pro&ect8

OBJECTIVES
Module one: .efine .emand Identify the factors that affect demand and the elasticity of demand .efine !#pply Identify the factors that affect s#pply and the elasticity of s#pply

Module T o: !tate the type of market !tr#ct#re 9hich the firm operates (:plain the factors that infl#ence the pricing and o#tp#t decisions of the firm

Module T!"ee Theory of Income .istri%#tion .efine the term .emand for Ba%o#r .efine the term !#pply for Ba%o#r

MET#OD OF DATA COLLECTION

An intervie9 and a A#estionnaire 9ere #sed to access information from Grace Kennedy; d#ring the year '5$5 2'5$$8 The #rchasing Manager and the marketing manager of the company did the Intervie9s8 C#estionnaires 9here ans9ered %y the "hief (:ec#tive Officer; .o#glas Orane8

SCARCIT$
Grace Kennedy like any other firm #ses vario#s types of factors of prod#ction s#ch as land; la%o#r; capital and entreprene#rship8 These reso#rces are all economic reso#rces since they are scarce8 The company faces diffic#lty in this area %eca#se some of there prod#ct s#%sidies like g#ava have to %e imported; so this p#t a constraint on d company %eca#se they are s#pporting international market than local8 Dhen the vario#s reso#rces are #sed to prod#ce goods s#pplied %y Grace; there is an opport#nity cost; that is the alternative goods that s#ch reso#rces co#ld have %een #sed to prod#ce8

DEMAND ANAL$SIS
Grace prod#cts are demanded %oth %y local cons#mers as 9ell as international8 Grace Kennedy prod#ces a 9ide range of goods s#ch as ?Tomato Ketch#p888@ There is a 9ide demand for these prod#cts8 .emand for these prod#cts are affected %y the prod#cts o9n price; income; price of related goods and other factors8 A change in the price res#lts in the la9 of demand this means that the lo9er the price the greater the A#ality demanded8

Ela%&'('&) o* De+and
The concept of elasticity of demand meas#res ho9 responsive is the A#antity of a prod#ct to a change in its price8 It is the percentage change in the A#antity demanded divided %y the percentage change in price8 .emand for Grace prod#cts is likely to %e inelastic from the point of vie9 that these prod#cts are food items 9hich are considered as necessity8 Never the less these prod#cts have very close s#%stit#tes and demand 9o#ld tend to %e elastic8 Again Grace prod#cts 9o#ld tend to acco#nt for a relatively small percentage of cons#merEs income and are likely to %e relatively inelastic8

C"o%% Ela%&'('&)
!ince Grace prod#cts has a n#m%er of close s#%stit#tes a rise in the price of Grace prod#cts co#ld affect the demand of other %rands and vice versa8 (conomists refer to this relationship as cross elasticity of demand8

INCOME
As income increases %oth at home and a%road; larger A#antities of these prod#cts are generally cons#med especially these cons#mers 9ho vie9 the companies prod#ct as a normal good8 Fo9ever; some people may vie9 tin mackerel; sa#sages; sardines and corned %eef as inferior goods8 The demand for these goods 9o#ld decrease as income increases8 The e:tent to 9hich these goods 9ill %e perceived as normal or inferior goods 9ill depend on the level of income8

P"'(e o* Rela&ed ,ood%

The goods prod#ced %y Grace Kennedy have a 9ide range of close s#%stit#tes since there are other firms selling similar prod#cts8 A rise in the price of other prod#cts 9o#ld res#lt in a significant increase in the demand for Grace prod#cts and vice versa8 This means that the company 9ill 9atch caref#lly the pricing policies of its competitors8 (ven tho#gh there are other firms selling similar prod#cts persons might %e 9illing to pay higher price for Grace prod#cts d#e to the greater #tility associated 9ith the cons#mption of these prod#cts as oppose to other %rands8

SUPPL$
!#pply refers to the amo#nt of goods that Grace Kennedy is 9illing to prod#ce and offer for sale8 Bike demand; s#pply is affected %y a n#m%er of factors s#ch as the prod#cts o9n price; the cost of prod#ction; technology; price of related prod#cts and so forth8 The companyEs operation is largely dependent on o%taining reasona%ly priced prod#cts on a s#staina%le %asis8 To this end the company has %ypassed local farmers and other local prod#cers and o#tso#rce goods from overseas8 (8g8 cocon#t 9ater is o%tained from Thailand; mango concentrate is o%tained from "ol#m%ia; g#ava from -raGil and %ottles from Trinidad8 The reason given is the diffic#lty enco#ntered in o%taining reasona%ly priced goods on the local market on a s#staina%le %asis8 The company is man#fact#ring fe9er items and is o#tso#rcing them from more efficient prod#cers 9ho can s#pply these items at a lo9er price than it 9o#ld cost Grace to prod#ce8 The companyEs o%&ective is to move closer to the final cons#mer; develop %etter c#stomer service; e:tend its international %#siness and achieve operation efficiency8

Ela%&'('&) o* Su--l)
This is defined as a meas#rement of the responsiveness of the A#antity s#pplied to a change in price8 Grace Kennedy prod#cts can %e prod#ced in a relatively short period of time and 9o#ld %e A#ite responsive to an increase in price8 !ince most of the prod#cts have a relatively long shelf life; finished goods can %e stored as inventory8 Dhen price rises d#e to an increase in demand the company can sell goods %y red#cing its inventory8 Inventory 9o#ld tend to make s#pply more elastic8 Fo9ever; holding inventory increases

a firms prod#ction cost; it also involves financial reso#rces tied #p #ntil the goods are sold8 Bike all other Jamaican firms the company is affected %y higher cost of #tilities s#ch as electricity; 9ater; telephone service as 9ell as sec#rity cost8 The company operates in the heart of do9nto9n Kingston 9here crime is a ma&or concern and this necessitates the need for a large fleet of sec#rity personnel8

EVALUATION AND RECOMMENDATIONS

Grace Kennedy responds A#ite favo#ra%ly in satisfying the ever increasing demand for food items 9ithin the co#ntry8 The company #ses vario#s methods to increase s#pply not only %y means of its o9n prod#ction %#t thro#gh o#tso#rcing8 It imports a large amo#nt of fr#it concentrates and pastes from other co#ntries; many of 9hich can %e o%tained locally8 It asserts that Jamaican s#ppliers are #nrelia%le and the prices are sometimes too high8 The company o#ght to mo%iliGe local farmers to prod#ce the fr#its and other ra9 materials for its processing plants8 To the e:tent that it generates income for local farmers they 9ill %e a%le to earn the income to p#rchase the companyEs prod#cts8 Dith the present arrangement a significant part of Grace earnings is #sed to pay for imports8

MAR.ET STRUCTURE
Grace Kennedy operates in an oligopolistic market str#ct#re8 This str#ct#re states that 9here a fe9 #s#ally large firms characterise the market; each possessing a s#%stantial market share8 Its ma&or competitors are (ve; N#pak and Basco8 !ince there are other firms selling similar prod#cts firms are rel#ctant to engage in price competition8 If Grace lo9ers price; other firms are likely to c#t their prices 9hich may precipitate into a price 9ar8 If Grace raises prices it is likely to lose sales to other firms8 In reality there is a cl#ster of prices; that is; the price of other %rands are very close to that of Grace; sometimes differing only %y a fe9 cents8 This e:plains the typical price rigidity of the oligopolistic model8 Grace of co#rse #ses none price competition in terms of advertising an introd#ction of ne9 prod#cts Grace is arg#a%ly the market leader and there co#ld %e some elements of price leadership or tasic coll#sion 9here Grace as the dominant firm sets its price and the other firms follo98 In the a%sence of price competition oligopolists resort to research and development to develop ne9 prod#cts or add ne9 feat#res to e:isting prod#cts8 This 9ill serve to e:tend the prod#cts life in the market8 Over the past t9o to three years Grace has developed a 9ide range of ne9 prod#cts s#ch as ?Grace orridge; Grace J#ices; Grace !o#p H@ This is in keeping 9ith the health conscio#s cons#mers 9ho prefer non2s#gar nat#ral &#ices as oppose to artificially flavo#red drinks8 Today Grace is a pop#lar %rand name and there is tremendo#s %rand loyalty8 -rand loyalty 9ill make demand more inelastic and 9ill give the firm some discretion in raising price 9ithin certain limits8 This 9ill some9hat overcome the diffic#lties that oligopolists face in changing prices8

PRICE PLUS COSTIN,

The company is likely to #se the price pl#s costing method 9here the firm determines its #nit or average cost and adds a percentage mark #p or profit margin8 !#ch profit margins are %ased on the rate of ret#rn that a similar siGed firm of eA#al risk 9o#ld o%tain8 !ince average cost tends to increase 9ith prices; this #nit cost m#st %e calc#lated %ased on some level or percentage of capacity #tiliGation8 Grace is arg#a%ly a conglomerate since it prod#ces a 9ide range of differentiated prod#cts8 The company %enefits not only from economies of scale %#t economies of scope8 (conomies of scope is defined as a red#ction in average cost arising from the firmEs diversified %#siness8 !#ch %enefits assist the firm to occ#py a good position in the market and to %e %etter a%le to en&oy cost and price advantage over other firms8 The company also o#tso#rces certain prod#cts 9henever it finds other firms that can prod#ce that prod#ct or part of a prod#ct at a lo9er price8 (A#ipped 9ith s#ch strengths Grace is a%le to 9ard off the onsla#ghts of competitors and red#ce the level of the #ncertainty characteristic of the oligopolistic market8

EVALUATION AND RECOMMENDATIONS

Grace operates in an oligopolistic market 9here there is a great degree of interdependence8 !ince there are other firms selling similar %rands the company face limited options in raising prices; it is therefore forced to #se non2price competition s#ch as prod#ct improvement; development of ne9 prod#cts and %etter c#stomer service8 The company contin#es to increase efficiency %y o#tso#rcing prod#cts 9hen it can %e prod#ced cheaper %y other firms8 The company sho#ld al9ays try to identify local so#rces of prod#cts 9here possi%le8 The company can e:pand its range of prod#cts and %enefit from economies of scope as 9ell as risk %earing economies of scale8

T#EOR$ OF INCOME DISTRIBUTION

Bike all firms; Grace Kennedy #ses vario#s types of factors of prod#ction s#ch as land; la%o#r; capital and entreprene#rship8 Band is #sed to site the vario#s companiesE plants8 Ba%o#r refers to the vario#s categories of employees and capital refers to the %#ildings; machinery and eA#ipment #sed %y the company8 6inally entreprene#rs refer to the shareholders8 !ince these are economic reso#rces; they have to %e paid at least 9hat they co#ld have earned in their ne:t %est alternative #se8 !#ch opport#nity cost of a factor of prod#ction is kno9n as the transfer earnings8 This is the minim#m income reA#ired to attract or retain a factor in its c#rrent #se8 Any income earned that is a%ove the transfer earnings is kno9n as economic rent8

DEMAND FOR FACTORS

.emand for any factor of prod#ction refers to the amo#nt of #nits of that factor that a firm is 9illing to employ at different prices for that factor over a period of time8 .emand for any factor is a derived demand; since it depends on the demand of the goods that s#ch factors are needed to prod#ce8 In other 9ords Grace demands la%o#r and other factors of prod#ction %eca#se thereEs a high demand for the 9ide range of food prod#cts that the company prod#ce8 Bike any demand c#rve the demand c#rve for these factors 9o#ld %e do9n9ard sloping to the right; indicating that there is an inverse relationship %et9een factor prices and the amo#nt of factors employed8 In the short r#n the demand c#rve for factors like la%o#r is do9n9ard sloping d#e to diminishing marginal prod#ct8 In the long r#n the do9n9ard sloping nat#re is d#e to the s#%stit#tion of one factor for the other 9hen there is a change in factor price8 The demand for factor c#rve or any other factor is the marginal reven#e prod#ct c#rve8 This is the marginal prod#ct of la%o#r times the marginal reven#e of the prod#ct sold8

SUPPL$ OF FACTORS
The s#pply of la%o#r or any other factor is the amo#nt of that factor that ho#seholds are 9illing to sell or hire at vario#s factor prices over a period of time8 Bike any s#pply c#rve the s#pply of la%o#r slopes #p9ards to the right indicating that the higher the price of the factor; the more of that factor 9ill %e made availa%le to firms8 Grace Kennedy sells its prod#cts in an oligopolistic market %#t o%tains factors of prod#ction in a competitive market since it has to compete 9ith other firms for additional 9orkers8 This means that to employ an additional #nit of la%o#r the company 9ill have to pay higher 9ages to attract 9orkers from their previo#s &o%8 This means the marginal cost or the marginal reso#rce cost of la%o#r is #p9ard sloping8 Fo9ever; this 9o#ld refer to only professional; skilled or technical 9orkers 9ho are in short s#pply8 The company co#ld o%tain lo9er categories of 9orkers at a reasona%le 9age rate since the s#pply of these categories of employees 9o#ld %e m#ch more elastic8 Grace 9ill contin#e to employ additional #nits of la%o#r and other factors #ntil the marginal reven#e prod#ct of la%o#r is eA#al to the marginal reso#rce cost8 If the marginal reven#e prod#ct e:ceeds the marginal reso#rce cost it 9ill %e more profita%le to employ an additional #nit of la%o#r8 If marginal reven#e prod#ct e:ceeds marginal reso#rce cost; employing an additional 9orker 9o#ld add more to the firmEs total reven#e than to its total cost8 If the marginal reso#rce cost e:ceeds the marginal reven#e the firm sho#ld employ at least one less #nit of la%o#r since employing an additional 9orker is adding more to the firmEs cost than its adding to its reven#e8 The company is a ma&or player in the la%o#r market and co#ld have some degree of market po9er in determining 9ages nevertheless 9orkers are #nioniGed and trade

#nions 9o#ld act as a monopoly on la%o#r and ne#traliGe the market po9er of Grace; forcing it to act in a more competitive manner8 The company employs vario#s categories of 9orkers s#ch as engineers; technicians; mechanics and professional categories; many 9ith A#alifications in chartered acco#nting and masters in %#siness administration8 It has other categories of 9orkers s#ch as clerks; factory 9orkers and so forth; 9orkers are paid higher 9ages %ased on A#alifications; e:perience and so forth8 Dithin the company therefore there are s#%stantial 9age differentials8 The company not only compensates its employees %#t also its shareholders 9ho are the entreprene#rs8 The company ed#cates its 9ork force thro#gh training programs; %oth e:ternally and on2the2&o%8 Meas#res are also taken to improve 9orking conditions and to improve the level of safety and the red#ction of accidents8

EVALUATION AND RECOMMENDATIONS

Grace is a profita%le company and can afford to pay the 9ages that 9ill attract la%o#r and other reso#rces8 The companyEs employees seem to %e comforta%le since there has %een no evidence of ind#strial action8 Fo9ever; to remain competitive the company may have to mechanise more of its operations in order to increase efficiency8 This co#ld lead to the laying off of 9orkers8 The company sho#ld introd#ce employees share o9nership programs8 This method 9ill make all employees share holders of the company8 This step co#ld harmoniGe the o%&ectives of the employees 9ith those of the company and red#ce conflicts8 The company sho#ld contin#e training its staff to meas#re prod#ctivity8 "are has to %e taken to ens#re that s#ch training is specific or pec#liar to the company and red#ce the chance of trained 9orkers leaving and 9orking for other companies8

Fig 1 Diagram showing a graph of a typical demand curve

This typical demand c#rve sho9s that as the higher the price of the commodity; the smaller the A#antity demanded8 Dhen the price 9as at I$/ the A#antity demanded 9as at C$8 Fo9ever; 9hen the price increased to I'5 the A#antity demanded 9ent to C58 it also sho9s an inverse relation %et9een price and A#antity demanded %eca#se as one goes #p the other goes do9n8

Fig 2 Diagram showing a graph of a typical supply curve

This graph sho9s a positive relationship 9here as price goes #p there is an increase in A#antity s#pplied8 This can %e f#rther e:plained as it is sho9n on the graph 9here price 9as at I'/ and the A#antity s#pplied 9as at $558 Dhist as the price increase to I)5 the A#antity s#pplied 9ent to '558

Fig 4 Graph showing Economic Rent (B) & Transfer Earnings (A)

This graph ill#strates transfer earnings and economic rent8 Transfer earnings are indicated %y area #nder the la%o#r s#pply c#rve8 The economic rent is sho9n a%ove the transfer earnings8 The 9age rate is at eA#ili%ri#m 9ith the s#pply and the demand c#rve8 Altho#gh the eA#ili%ri#m 9age is D; at 9age rate %elo9 this are these are transfer earnings and a%ove the 9age rate those are economic rent8 !o persons that are 9illing to 9ork %elo9 the 9age rate are transfer earnings and person 9ho 9orks for 9ages a%ove the 9age rate are economic rent8

Fig

Graph !howing the Demand of "a#our

This graph simply ill#strates that as the 9age rate of Do the firm 9ill demand B5 9orkers8 As the 9age rate falls the firm is in diseA#ili%ri#m 9here the 9age rate is less than the MR of the last #nit of la%o#r8 Fo9ever as the 9age rate falls at D$; the firm 9ill employ more 9orkers 9hich means that the firm is a%le to pay the 9age rate of the la%o#r demanded8

Quantity supplied

Fig$ Graph !howing the !upply of "a#our This graph ill#strates that as the 9age increases the A#antity s#pplied of la%o#r also increases8 This clearly means that as 9hen 9ages is at D the A#antity s#pplied of la%o#r is BC58 Fo9ever 9hen 9ages moves to D$ the A#antity s#pplied of la%o#r increases to BC$8

EVALUATION AND RECOMMENDATIONS

Grace Kennedy responds A#ite favo#ra%ly in satisfying the ever increasing demand for food items 9ithin the co#ntry8 The company #ses vario#s methods to increase s#pply not only %y means of its o9n prod#ction %#t thro#gh o#tso#rcing8 It imports a large amo#nt of fr#it concentrates and pastes from other co#ntries; many of 9hich can %e o%tained locally8 It asserts that Jamaican s#ppliers are #nrelia%le and the prices are sometimes too high8 Fo9ever the s#pply of these prod#cts d#ring the h#rricane season 9ill decrease since the amo#nt of fertilisers 9ill also decrease 9hich 9o#ld %e %eyond the farmerEs control8 On the other hand; it can %e recommended that these farmers prod#ced as m#ch fertilisers to s#pply the company so that a h#rricane 9o#ld not m#ch of drastic effects8 The company o#ght to mo%iliGe local farmers to prod#ce the fr#its and other ra9 materials for its processing plants8 To the e:tent that it generates income for local farmers they 9ill %e a%le to earn the income to p#rchase the companyEs prod#cts8 Dith the present arrangement a significant part of Grace earnings is #sed to pay for imports

Grace operates in an oligopolistic market 9here there is a great degree of interdependence8 !ince there are other firms selling similar %rands the company face limited options in raising prices; it is therefore forced to #se non2price competition s#ch a %etter c#stomer service8 The company contin#es to increase efficiency %y o#tso#rcing prod#cts 9hen it can %e prod#ced cheaper %y other firms8 The company sho#ld al9ays try to identify local so#rces of prod#cts 9here possi%le8 The company can e:pand its

range of prod#cts and %enefit from economies of scope as 9ell as risk %earing economies of scale8 Grace is a profita%le company and can afford to pay the 9ages that 9ill attract la%o#r and other reso#rces8 The companyEs employees seem to %e comforta%le since there has %een no evidence of ind#strial action8 Fo9ever; to remain competitive the company may have to mechanise more of its operations in order to increase efficiency8 This co#ld lead to the laying off of 9orkers8 The company sho#ld introd#ce employees share o9nership programs8 This method 9ill make all employees share holders of the company8 This step co#ld harmoniGe the o%&ectives of the employees 9ith those of the company and red#ce conflicts8 The company sho#ld contin#e training its staff to meas#re prod#ctivity8 "are has to %e taken to ens#re that s#ch training is specific or pec#liar to the company and red#ce the chance of trained 9orkers leaving and 9orking for other companies8 Additionally; since Grace Kennedy is an oligopolistic market they face competitions from other companys s#ch as Basco; N#pack; and (ve; they can dominate these firms 9ith advertisements and promotions8 Grace Kennedy can advertise their prod#cts e:tensively to pers#ade cons#mers in p#rchasing it so that they can have a s#%stantial share of the market8 They can also #se promotions %y involving the cons#mers to make them have a sense of loyalty to9ards the company8 This 9ill ena%le the company to %e more involved 9ith the cons#mers and once these cons#mers realises the %enefits they provide it 9ill %e at an advantage to Grace to dominate more of the market share8 Grace Kennedy faces pro%lems 9ith the goods they prod#ced 9hich are slightly differentiated from those of their competitors8 Dith this pro%lem faced they can introd#ce a prod#ct innovation8 This means that they can do their o#tmost %est in trying to

differentiate their prod#cts from their competitors8 This can %e done %y changing the siGes or shapes for some of their prod#ced prod#cts8 6or e:ample %oth Grace and Basco prod#ce tinned mackerels8 These prod#cts are slightly differentiated ho9everJ Grace Kennedy co#ld #se the advantage %y prod#cing their tinned mackerels %y p#tting on a can opener so it 9o#ld %e easier for the cons#mers to open it instead of #sing a knife or something sharp 9hich co#ld ca#se damages8 Moreover; Grace Kennedy also faces pro%lems in terms of %rand proliferation8 This means that the company is not prod#cing eno#gh %rands to sat#rate the market8 It can %e recommended that the company prod#ces a lot of %rands that 9ill sat#rate the market so that no gaps 9ill %e left for their rivals8 Market segmentation co#ld also %e a pro%lem faced %y Grace Kennedy as an oligopolistic market8 This is so %eca#se they may not decide that there are s#% markets 9here cons#mers have different characteristics and needs8 This pro%lem co#ld %e solved %y getting different vie9s from their cons#mers in acA#iring information as to 9hat goods are more effective to them and those that are not8 Many ho#se holds in Jamaica cannot afford goods prod#ced %y Grace Kennedy %eca#se of the prices at 9hich they range8 The company can #se this as a means of implementing a process innovation8 This simply means that they can find a 9ay of red#cing their average cost; %y c#tting %ack on their prices to take these cons#mers in consideration 9itho#t sacrificing their profits made8

REFERENCE
Internet
9998GraceKennedy8com 9998Dikipedia8com

-ook
"omprehensive (conomics for "ari%%ean !t#dents2 (d9ard -aha9 (conomics for "ape "olin -amford and Narissa Mohammed

CONCLUSIONS
Grace Kennedy imports a lot of ra9 materials 9hich co#ld %e prod#ced in Jamaica8 6or (:ample; in the prod#ction of tropical rhythms; the g#ava is imported from -raGilJ the mango imported from "ol#m%ia and the %ottles from Trinidad8 There is little val#e added8 The company sho#ld mo%iliGe farmers to gro9 crops8 !ince more reven#e 9ill go to Jamaicans to p#rchase their prod#cts8 There is stiff competition for other prod#cts; 9hich tend to red#ce their market share8 Grace Kennedy sho#ld develop ne9 prod#cts 9hich 9ill take competing firms a 9hile to catch #p 9ith them8 The company has a system 9here employees and managers 9ork together to achieve desired o%&ectives8 6or e:ample; if a trailer is to %e #nloaded A#ickly; all mem%ers of the company from the 9orkers as 9ell as managers participate in man#al 9ork8 The company sho#ld enco#rage employees to %ecome shareholders8 This is likely to red#ce ind#strial #nrest in the organiGation8