The two questions every company should consider are do you have an ambition to grow your business in 2013 and beyond and do you have any actual plan, beyond working harder, to grow your core business?
That was the key message behind Professor Damien McLoughlin’s presentation, “Profiting from your Core” at Alltech’s annual breakfast meeting during the International Production and Processing Expo (IPPE) on Wednesday, Jan. 30. More than 240 members of the poultry industry joined the event as the professor of marketing and associate dean at UCD Michael Smurfit Graduate Business School, Ireland, gave his recommendations for sustaining continuous, profitable growth in the poultry industry through strong, well-defined core leadership.
According to McLoughlin, there are four pillars to sustained growth strategy:
- Pillar 1: A business must have a strong, well-defined core with leadership economics in the “core of the core”
- Pillar 2: Pursue the correct adjacent moves to secure growth within the company (and avoid wrong ones)
- Pillar 3: Become the best at following the customer
- Pillar 4: Continue to use repeatable formulas in the business strategy
“How many discussions have you had in your business about what the core of your business is?” McLoughlin challenged the audience. “Most strategic errors come from inadequate self awareness. Defining your core is the cornerstone of strategy. The core is what makes your company unique.”
McLoughlin shared the example of Nestlé as company that effectively defined its core products - coffee and infant formula - then used a successful adjacent strategy to leverage and reinforce the business and add other initiatives such as pet food. He offered Nike as a model company that has relentlessly repeated its growth formula through strategic clarity, superior learning, speed of decision making, lower management complexity and more focused innovation.
“How many of you are pushing your products at the customers and then tell me how many of your customers are pulling your products?” McLoughlin said. “It is critical to shift from the mindset that you are in the poultry business to recognizing that you are actually in the food business.”
Alltech also hosted its 19th annual Alltech Researchers’ Appreciation Dinner at IPPE where Steve Elliott, Alltech’s global manager for Sel-Plex® and Bioplex®, examined the role of organic mineral technologies in addressing modern production challenges.
According to Elliott, full replacement of inorganic minerals with an organic form is possible and has been shown to be both safe and effective for the birds and their environment. Elliott stressed that utilizing organic minerals is of particular importance for broiler producers and nutritionists operating in regions where ground water pollution is a problem in order to reduce the risk of contamination from manure without compromising performance.
“Alltech’s mineral technology has been scientifically proven to be cost effective in modern poultry production,” Elliott said. “Utilizing this approach encompasses Alltech’s core ACE principle, which states that, in doing business, we have a positive impact on the Animal, the Consumer and the Environment.”
In keeping with Alltech’s focus on education, the Alltech Student Manuscript Award was presented to Curran K. Gehring, a poultry science student at Auburn University, who won the award with his paper, “Effects of corn source on the relationship between in vitro assays and ileal nutrient digestibility.” Gehring received a trophy and a $500 cash prize.