COMPARATIVE ESSAY

Comparative Essay

Comparative Essay

Introduction

The purpose of the report is to compare the two companies Tate & Lyle PLC with Associated British Foods PLC. The comparison is made on the basis of accounting policies and corporate social responsibility.



Company Background

Tate & Lyle PLC is a UK based multinational, food manufacturer, company listed under the symbol of TATA on the London stock exchange. The company operates globally and is engaged in producing refined sugar, animal feed, starch and other ingredients to be used in food. The company was incorporated as a merger of two rival sugar refiner companies in 1921, Henry Tate & Sons and Abraham Lyle & Sons. Tate & Lyle provides ingredients and services solutions to beverages, food and industrial customers. Today, the company predominantly operates in Americas, Europe, and Asia. Tate & Lyle has operations in over 30 different countries.

The company has two main unit's operating globally: specialty food ingredients and bulk ingredients. Each unit has its own commercial and manufacturing operations. The main function of the company is to convert the raw material into useful, high quality and distinctive ingredients to be used in food by the customers. Food and beverages is the most significant market and constitutes around 70% of sales. Other markets include animal feed, industrial, personal care and pharmaceutical. Ingredients are predominantly produced from crops especially from corns. Ensuring proper supply of corn is very important and essential.

The company sales have increased from £2,720m last year to £3,088m this year. The adjusted profit before tax increased from £263m to £323m this year. Total employees working worldwide are 4,383.

The other company selected for the purpose of comparison with Tate & Lyle Plc is Associated British Foods Plc. The company was incorporated in 1935. Today Associated British Food is a multinational company, specialized in ingredients, foods and retail group. It's a food processing company headquartered in London, United Kingdom. The company's ingredient division is one of the world's 2nd largest producer sugar and yeast. It is also deals in emulsifiers, enzymes and lactose. There are around 100,000 employees working world wide. It has global operation in more than 40 different countries. The company has a significance presence in Europe, China, southern Africa, America, and Australia. The group has a retail subsidiary discount clothing chain, Primark, operating through 230 stores. The business is divided into 5 segments including sugar, grocery, retail, agriculture and ingredients. It is a London Stock Exchange listed company and is a part of FTSE 100 Index.

The gross revenue of the company has increased by 9% to £11.1 billion. Adjusted profit before tax has increased by 1% to £835 Million. Operating profit of the company seems to improve as it overcame the challenges of high inflation (in terms of commodity cost) and weaker consumer demand.

Discussion

Corporate Social Responsibility

A company no matter if it is a listed or non listed in the stock exchange, or whether it is a product or service based organization, it consists of many stake holders that are ...