Table of contentExecutive summary……………………………………………………………….3 Chapter 1 1.1 History………………………………………………………………………………..4 1.1.1 History of New KCC ltd ………………………………………………………………4 1.1.2 KCC Vision…………………………………………………………………………6 1.1.3 KCC Mission……………………………………………………………………….....6 1.1.4 KCC Objectives………………………………………………………………………6 Chapter 2 2.1. New KCC Organization Structure……………………………………………………7 2.2 General activities undertaken in the organisation………………………………………8 2.2.1 Core functions………………………………………………………………………8 2.2.2 Finance Department………………………………………………………………..8 2.2.2.1 Mandate of the Finance Department………………………………………………8 2.3 Specific activities undertaken ………………………………………………………….8 2.4 Profile of skills and competences gained ……………………………………………….9 2.4.1 Skills Gained…………………………………………………………………………..9 2.4.2 Core competences……………………………………………………………………….10 2.6 challenges Chapter 3……………………………………………………………………………………12 Analysis,Observation and critique………………………………………………………….12 3.1 Analysis…………………………………………………………………………………12 3.1.1 Swot Analysis………………………………………………………………………..12 1 2 Stake holders Analysis………………………………………………………………13 3.15 2 .2 recommendation……………………………………………………………………………..14 Chapter 4……………………………………………………………………………………15 Conclusion and recommendation……………………………………………………………15 4.3.1 conclusion………………………………………………………………………………15 4.1.3 Critique………………………………………………………………………………. which took place from January 14 to April 14 2015 covering a total of 13 weeks at the New Kenya Co-operative Creameries. The main goal of my internship was to be able to gain experience. and to contribute towards the realization of the company’s goal. observations. Secondly I will show the organization structure of the company and the different functions of the department in finance department where I was attached. It will also encompass the reason why it collapsed and how the government was able to revive it to become the leading producer of dairy products. to learn. skills learnt and challenges faced during the study. critique propose various recommendations to be done to improve the efficiency of the running of the company efficiently. Finally I will do various analysis of the company (swot and stakeholder). Firstly I will present the history of the company since its inception which was in 1925.EXECUTIVE SUMMARY This document aims to describe the work done during my internship. 3 . how the company was able to conquer not only the Kenyan market but also the East Africa. Thirdly I will talk about my internship. KCC was selling 1 million litres per day with purchases from dairy farmers reaching a peak of 1. to bid for the business and assets of KCC. the rest of KCC factories and cooling plants exist in the medium and high potential parts of Kenya.4 litres per day. Its predecessor. Come June 2003 the NARC government bought back the company at the same price and renamed it New KCC Ltd. In August 2000. the business has mainly been focused on 4 .1 History of New KCC ltd . By 1987/88. KCC 2000. the Kenya Co-operative Creameries Ltd has operated in Kenya since 1925. where over 70% of the population lives and where poverty is prevalent. KCC 2000 bid to acquire the business and assets on a going concern basis at Ksh. The company was created so that it can provide a channel for dairy farmers to sell their milk. The principal business of KCC Ltd was buying.Due to liberalization of the dairy sub sector mismanagement in the company caused it to collapse in 2000 and was put under receivership. technological and financial assistance from DANIDA. This makes it the oldest dairy processor in the country. Growth was mainly achieved during the period 1966 to 1988. The company started with only one factory in Naivasha . Over the last four years. Besides the factory that was set up at Miritini to serve the coastal region. The company operated as a monopolistic environment until the 1990s . processing and selling dairy products both in the domestic market and export market.Chapter 1 HISTORY BACKGROUND 2. The New Kenya Co-operative Creameries Ltd was registered on the 25th of June 2003. a select group of dairy farmers (majority of who were members of KCC) decided to form a new entity. 406 million was successful (KCCHL. 2001).1. As at the time there was a lot of technical. The history of KCC Ltd to KCC 2000 Ltd to New KCC Ltd is equal to that of Dairy Sector in Kenya. 2 Vision To be the market leader in quality refreshing dairy products in East and Central Africa 5 . According to the New KCC annual report 2006/07 the business is at its tail end of revival and rehabilitation program having successfully re-opened all the 11 Cooling Plants. Following the disputed outcome of the general election in 2007. 2007). New KCC has sustained growing profitability in the financial year ended 30th June 2007 despite increased competition and historically high fuel prices in the year which led to an escalating cost of production (New KCC. department and individuals and also put in place an appraisal tool and a reward scheme aimed at realizing the full potential for individual employees and entire organization. According to the New KCC annual report 2006/07 the company had put the Performance Management system which has redefined the key result areas for the organization. 7 Kenya’s political environment traditionally has an impact on the economy. 11 factories and 12 Sales Depots at an estimated cost of Ksh. 2007). 2. 3 billion. This had a significant impact on milk supplies to NKCC factories in the Rift Valley. In 2006 New KCC was awarded the Parastatal status which required the company to follow the Parastatal Act. The management staffs were put on Performance Contract as provided by the Public Service Act. During the year under review. there was widespread violence and displacement of people throughout the country.1. the company achieved the operational targets set by the government in the performance contract for the year.revival and rehabilitation of its factories and plants which were in desolate state when the company was revived in June 2003 (New KCC. 5 KCC Objectives To recruit suppliers through farmer registration and supplier registration To set up more coolers and collection points to ensure close proximity to our suppliers. To enhance fodder production Through cattle registration into NKCC herds and later Kenya stud book Promote cattle insurance cover Support in developing regional breeding scheme Support in developing regional animal health scheme 6 .1. 2.1. To develop an effective transport network that will ensure access to the various milk collection points To Provide farmer training.3 Mission New KCC is committed to provide quality dairy beverage and food products and services that are of international standing through sustainable innovation and effective value chain management.2.4 Core values Integrity Loyalty Innovativeness Quality 2.1. CHAPTER TWO 7 . Finance department comprises of a number of small departments. During the attachment period I was attached in the finance department.3.2.1 Mandate of the Finance department.1 Core functions Provision of quality products and services Customer satisfaction Corporate social responsibility Good corporate governance 2. e. monthly insurance deductions. manage financial resources of the company . 2. account payable and payroll.2.2.2 General activities undertaken in the organization 2. Sacco and loan deduction. and termination. it includes services to our taxpayers and our customers and suppliers. 2.2.2. NSSF. Updating staff bank accounts records 8 .2.2.g.2 Finance department.1 Payroll Processing the payroll Dispatch payments using EFTS and RTGS modes of payment Verification and posting of staff claims and overtime payments into the payroll using memory software and sap Making voluntary and statutory deductions from payroll such as NHIF.3 The different activities undertaken by the different departments 2. hiring. Communicating with Human Resource Department on staff issues affecting the payroll. account receivable. 2. listing them and banking them according to due dates. and payout. feeds. Reconciling supplier ledgers with their invoices.2 Accounts receivable Bank reconciliation and coming up with the summary of both presented and presented payment. Raising payment vouchers for transport. Receiving bank refunds and making payments to farmers on claim. 2.3. Posting payment for transport. feeds. to Sap system.3 Specific activities undertaken during attachment in payout. Allocation of customer’s payment to specific customers.3. 2.4 A profile of skills and competencies gained 9 . Efts in Sap system. feeds. preparing farmers payments Updating the payout deduction for various plants. extensions.2.2. Posting supplier cheques and allocating to the respective invoices paid using sap system. Posting invoices for transport.3 Accounts payable Posting vendor invoices into respective accounts.2. Filling and proper maintenance of accounting records and reporting. Receipt of sales revenue cheques from customers. Research skills and problem solving skills: These skills allowed me to properly assess a situation and make sound decisions based on the information available. Technology skills include computer literacy. 2. flexibility and communication competencies as the requirement of the organization for all its employees to enable them perform in adverse number of positions throughout the finance department. Communication skills During my attachment I learnt how to communicate appropriately. Time management involved my ability to adhere to a schedule and complete tasks correctly within the given time. The communication skills gained will help me to write and speak effectively. I was able to plan my days and utilize available resources to work more efficiently.2. understanding of basic hardware and software applications. Effective communication also involves good listening skills. These skills will not only help me understand the needs of others through effective listening. Problem-solving skills helped me use knowledge and information to think of creative ways to find solutions to studentrelated issues. The computers were limited in number and this affected my work schedule. During my attachment I gained teamwork. It also involved my ability to organize tasks allocated effectively.4.5 Challenges The challenges that I faced during my attachment period were limited and could be easily solved. but also convey information in a manner that is easy for others to understand. Technical skills: During my attachment I gained technical skills and the ability to effectively utilize workplace technologies and equipment. These competencies define what the organization values the most in people.2 Core Competencies These are organizational competencies that all individuals are expected to possess.4. 2.1 Skills Gained Time Management skills: During my attachment I learnt how to manage time. 10 . CHAPTER 3 ANALYSIS. one that employs the existing strengths.The work load was a lot since we were short with one person. Transformative leadership style g. thus was not able to go to other parts of the department to learn. Opportunities for increased revenue from income generating projects d.1 Analysis 3. Strength -Internal attributes that are helpful to NewKCC in achieving its objective a. Weaknesses. Strong linkages with regional market that ensure its diversified product sales in volumes h. Amiable relationship between farmers and the parastal this is enhanced through timely payments f.1. Diversified and well balanced marketing strategies to attract interest of the farmers b.1 SWOT analysis SWOT stands for Strengths. Strategic location of various plants and processors and cooler across the country to serve the country and the local farmer o Strong human resource base that ensures quality services is achieved. Integration of ICT in the payout process saves time and it’s much easier to do. Weaknesses -Internal attributes that are harmful to NewKCC in achieving its objective 11 . c. It is a way of summarizing the current state of a company and helping to devise a plan for the future. OBSERVATION AND CRITIQUE 3. e. redresses existing weaknesses. Innovative technological advancements with the institution using the best system to manage its resources called the SAP. Opportunities and Threats. exploits opportunities and defends against threats. Management of flush season when farmers are oversupplying-too much milk b. Change of government fiscal and monetary policy b. 12 . Weak social and recreational facilities for staff and casual workers f. c. It is the commitment of the institution to carry out stakeholder analysis on a continuous basis in order to identify changing needs to ensure cooperation and support in the achievement of her mission. Lack of clear policy for appointment to senior positions e. Political stability in the country and within East Africa c.a. 3. Lowly motivated staff b. Threats -External factors that are harmful to KCC in achieving its objective a. Dry seasons when there is no milk.1. d. Stiff competition from other dairy processors. Strategic partnership with local micro finances who can give credit advance to the farmers incase the payments delay. the Government. a. Privatization of the plant to private stakeholders that means that famers will lose billions of shillings from the planned initial public offers to privatize the institution. Inability to attract and retain best staff d. d. New KCC strongly believes that the identified stakeholders are critical to the success of its activities.2 Stakeholder Analysis New KCC recognizes the existence of a number of stakeholders with diverse interests and influence on the conduct of its activities. Lack of elaborate and fool proof reward system for best performing staff c. Opportunities -External factors that help KCC achieve its objective. Weak marketing strategies for the daily products as a result Brookside dominates more. staff. The major stakeholders identified include farmers. ICT growth and its application in the database management and audit trail of all the plants. the idea was to analyze the organizational environment and industry attractiveness. 3. Buyers (Customers): with different taste and preference of customers who are the major consumers of the dairy products have an influence on the sales volume of the company because if the demand is low the sales volume will be low thus will affect the company overall performance for example there is already a sh 1 billion worth of stock of powdered milk lying in the warehouse that will soon cost the company if it’s not sold. or taking away from. thus if they choose not to supply the company will lose millions of shillings and will be unable to pay its credit balances. Suppliers: this are the major players in the success of the company because they are the ones that supply kcc with the required volume of milk to be processed ..3. and identify factors contributing to. This report will use this model to analyze the observations of NEW KCC environment.2 Observation Five forces model was developed by Michael Porter (1979). The private milk processors are demonstrating a fierce competition by employing best and highly qualified personnel and have effective marketing strategies that help them market their products. the industry attractiveness”. 13 . Hax & Majluf (1996) interpret that “environmental scan identifies external opportunities and threats evaluate industry’s overall attractiveness. This leads to poor services given to farmers and wastage of a lot of time while doing things manually.3 Critique It has not completed the adoption of the new SAP system. Competitors (Private milk processors): There are more private milk processors especially Brookside that took control of the larger market segment. New Entrants (Local dairies and self-help groups) : there are upcoming local dairies that collect milk and offer faster payments and they sell this milk to private milk processor thus inhibiting kcc access to larger volumes of milk for processing. CHAPTER 4 CONCLUSION AND RECCOMENDATION 4. The industrial attachment was successful and I learned more about my career.NewKCC has a very complex operational structure/ bureaucracy which lead to wastage of time and energy. found out what it is like to work in my potential career. to obtain essential skills that I can adopt in the working environment. got some contacts which will be used anytime I am in need of the institution’s service and also for networking. gained valuable experience to build my resume. 14 .1 CONCLUSION The main aim of my attachment was to gain the much needed experience in the field of Finance. improve on my already existing skills and be able to improve my managerial skills. 3. Proper communication network e. 5. installation off more telephones 6. The company should invest more in information technology in order to improve on the efficiency of its employees and promote time saving e. the company should connect all branches or purchasing of new printers in every office 2.g. 4. Reducing the number process involved in data management or information management through delegation of duties as this will reduce centralization or reducing the number of signatories to a cheque 15 . The company should also device new ways of motivating their employees as this would improve on the effectiveness and also the time taken to do a certain task.4. in order to increase efficiency. The company to employ more staff in order to avoid overworking employees. This can be done by selling of the company products at a subsidized rate to the employees.2 RECCOMENDATION 1. Proper coordination between the employees.g.