Page 52 - How not to cheat
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§ How mature a certain technology is: The technology used in
chips business is fairly mature and scope of any new path breaking
technology is very limited. The only change seen over the years is
the change in the ingredients used to make the chips to give it a
new flavour.
§ Information technology: Although not specifically mentioned in
the case study, the IT (information technology) will play an
important role. The website of Tyrrells was made unique and it was
crafted to show the basic thinking of the people behind the Tyrrells
chips. Information technology would have also played an
important role in managing the entire supply chain, order
processing, payment tracking etc.
§ Communication: Communication is the key to effectively
manage any business. Without proper communication, any
business would go in a downward spiral. Nothing has been
mentioned about the communication in the case study but seeing
the progress that the Tyrrells made over a period of about 12
years, it becomes evident that they had clear communication
among all stakeholders of the company.
5. Legal factors:
§ Legal battles: As seen in the case of Tesco row, there could be
some unexpected legal battles wherein the company will have to
divert time and money to fight the cases. This eats up the valuable
management bandwidth which can be detrimental for the
company in the long run.
6. Environmental factors:
§ Ecological: The most important environmental factor affecting
Tyrrells is related to the farming of potatoes. A good season is
important to produce potatoes of required quality and quantity.
Since, no chemical fertilizers and pesticides are used; it may
become more difficult to increase productivity after the farm loses
its natural fertility.
§ Environmental regulations: There could be environmental
regulations in some countries banning use of certain types of
chemicals in farms. Since, Tyrrells chips are made from organically