DEPARTMENT OF MANAGEMENT

GROUP ASSIGNMENT- CA 02
ORGANIZATIONAL THEORY
REPORT WRITERS

Subject Details
Subject
ORGANIZATIONAL THEORY
Subject Code
MGT 2303

Student Details
Student Name Student Number Signature
01 W.A.E.N.H.WEERASOORIYA 7007

02 J.THILAXSHANI 6997

03 K.R.S.MIHIRAN 7074
04
N.A.S.S.RATHNASIRI 7117

05 S.M.D.Y.YOUGANTHA 7073

06 S.SURENTHINI 7011
07
R.D.S.M.RAJAPAKSHA 7134
08
H.A.S.K.MADHUWANTHI 7133
09
W.D.S.U.KUMARI 7072 KUMARI
10
W.S.P.S.DE SILWA 6945
Word count
5121
Due date / Time
15TH OF JULY 2022 @11.59pm
Group Declaration
We (Group) certify that the content of the above assignment is one of our original works and not copied
from any of the published or internet-based documents. Without references We have not used any of the
other person‟s original work or ideas. So, the report or the work We have done is free of plagiarism.
Group leader‟s Date
Signature 13TH OF JULY 2022
TABLE OF CONTENTS

1 INTRODUTION ..................................................................................................1

1.1 INTRODUTION OF THE REPORT ............................................................1

1.2 INTRODUTION OF THE ORGANIZATION .............................................1

2 THE STRUCTURE OF HAYLEY‟S COMPANY .............................................6

2.1 INTERNAL GOVERNANCE STRUCTURE AND ASSURANCE ...........7

2.2 EXTERNAL GOVERNANCE STRUCTURE .............................................7

3 CHALLENGES THAT THE HAYLEYS COMPANY FACED DURING ITS

LIFE CYCLE STAGE ...............................................................................................9

4 THE SOLUTION OR THE ACTION THAT THE COMPANY TAKEN TO

FACE THE CHALLENGES. ..................................................................................16

5 CONCLUSION..................................................................................................22
1 INTRODUTION
1.1 INTRODUTION OF THE REPORT

This report is considering about the Hayley Company‟s structure, the challenges that the Hayley
company faced during its lifecycle stages and the solutions or the actions that the Hayley
company taken to face the challenges. For this we took information from annual reports,
newspapers, files, social media and data providing resources. We followed all the rules and
regulations which are given by the lecturer.

1.2 INTRODUTION OF THE ORGANIZATION

Hayleys PLC was founded in 1878 and has grown to be one of Sri Lanka‟s biggest multinational
business conglomerates, owning a remarkable portfolio of key industry sectors, including
manufacturing, agriculture and services. The Group is internationally recognised as a leader in
innovation, with manufacturing facilities in Indonesia, India and Thailand, marketing operations
in Australia, India, Bangladesh, Italy, Japan, the Netherlands, UK and USA, offering
transportation and logistics solutions in Maldives, Myanmar, India, Singapore, Indonesia and
Malaysia. The Group accounts for approximately 3.2% of Sri Lanka‟s export income, and 3.6%
of tea and 3.9% of rubber production.

VISION

To be Sri Lanka‟s corporate inspiration at all times

MISSION

Delivering superior shareholder value by unleashing the full potential of our people and
achieving leadership in all our domestic and global businesses

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 WITH YOU, WHEREVER YOU GO

Explore Our Diversity

With a presence in 16 business sectors, The Hayleys Group is the most diversified conglomerate
in Sri Lanka.

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 BEYOND ALL BORDERS

Global Reach
 Fulfills 5% of global demand for household and industrial gloves
 A leader in Sri Lanka‟s transportation and logistics industry
 A leading player in the coconut shell based activated carbon
 Sri Lanka‟s largest manufacturer and supplier of consumer durables
 Generates 3.9% and 4.5% of Sri Lanka‟s tea and rubber output respectively
 Sri Lanka‟s largest exporter of processed agricultural food
 Sri Lanka‟s largest exporter of aluminum extrusion products
 Leader in Sri Lanka‟s innovative synthetic fabric and textile manufacture for global
brands

THE HISTORY OF HAYLEY’S COMPANY

Hayleys Advantis‟s roots go

back to 1878 and the formation
of Chas P. Hayley & Co. in the
Southern port of Galle. Hayleys
Limited is the result of British
industrialist, Charles Pickering
Hayley‟s vision and wisdom.
Nonetheless Hayleys Advantis
emerged much later – in 1958 –
initially as the shipping
division of Hayleys Limited. In
the 1960‟s, Chas P. Hayley &
Co. (Lighters) took over the shipping agency business of the Hayleys Group.

The company initially functioned as a steamer agency for the Dutch shipping line – Holland
Burma Bengal Line, the precursor to the Nedlloyd of today. Chas P. Hayley Limited continued to

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act as agents for Nedlloyd until the 1971 merger of Dutch shipping companies compelled a
change of agents. It was the implementation of the local Licensing of Shipping Agents Act of
1972 that eventually resulted in the formation of Hayleys Advantis Agencies. This Act
prohibited exporters from acting as shipping agents. Even at that time Hayleys Limited was one
of the biggest exporters of Sri Lankan products. Thus on 27th of December 1972, Maritime
Agencies Limited was born.

In the mid-eighties Hayleys Advantis expanded its customer base significantly and began to look
into providing a “total transportation solution”. The result was ventures in related areas such as
freight-forwarding, bunkering, warehousing and sea air consolidation. In 1984 Maritime Travels
was formed thus launching Maritime Agencies into the travel trade. The shipping industry was
liberalized in the late eighties/early nineties and Hayleys regained full equity control of the
company. Maritime Agencies was restructured in 1993 with Maritime Holdings Limited
functioning as the parent company of a series of subsidiaries engaged in transportation related
businesses. From that point the organization as a whole came to be known as the Maritime
Holdings Group.

In 1995, airline general sales agency was added when it acquired the passenger GSA for two
major international airlines. In 1996, the Group made an investment in a container depot and
freight station. The result was the addition of Logistics International to the Hayleys Advantis.
Millennium Transportation Limited, which was incorporated in June 1998, holds the cargo GSAs
for some well-known airlines. A more recent addition to the Group is South Asia Logistics
Limited – a company that became part of a regional freight management network. This company
started operations in 2000 and has now changed its name to Hay Trans Limited after the
involvement of Tran‟s world Logistics of India as a partner was established.

Since 2002, the Group, recognizing opportunities in assisting firms compete better in the
marketplace by eliminating unnecessary costs in their supply chains, set up Logiwiz Limited to
market and provide comprehensive logistics solutions using inter-alia its key asset, the newly
constructed modern distribution center at Kelaniya (a short distance North of Colombo). This
was concurrent with a move to „Bridge Gaps‟ in the Group‟s logistics offerings through heavy-

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equipment and other logistics services offered by „Log ventures‟ (another new addition). 2003
marked the Group‟s embarkation on the voyage of ship owning and ship management with its
first purchase, the MV Orient Stride, a 1,152TEU containership. Regional trade growth and a
burgeoning shipping market ensure the long-term potential of this activity. The development of
the Group‟s own fleet continues with the 2nd purchase in 2004.

2005 saw the company embarking into Courier Services with a Strategic Alliance to represent
FedEx – the largest Express Transportation Company in the world, in Sri Lanka. This further
enhances the company‟s focus towards providing integrated end-to-end logistics solutions to its
customers. In 2006, Hayleys Advantis took several giant steps in consolidating its position one of
which was the introduction of Moceti Lanka, its own NVOCC brand.

2007 saw Hayleys Advantis move towards consolidating an international presence. With Yes
Asia opening a branch office in the Maldives and Logiwiz expanding in India, 2007 has been
positive. In September, the evolution of Hayleys Advantis entered a new phase of global
dimensions, with the launch of its new brand „Civaro‟ which leverages on the group‟s existing
multi-faceted operations to position itself as an integrated A-to-Z supply chain management
(SCM) provider of global significance. Civaro‟s inception marked a significant step towards
becoming a leading integrated logistics service provider in the Asia-Pacific region.

In May 2008, the Group commissioned „Logilink‟, a modern Container Freight Station (CFS) to
offer Sri Lanka‟s importers, exporters and logistic service providers a comprehensive range of
value added logistics services for their cargoes. Logilink (Pvt) Limited‟ comprises of 42,000
square feet of covered warehouse space with 10 container loading bays and a one acre yard. It is
designed and equipped to comply with the USA‟s rigorous C-TPAT (Customs-Trade Partnership
Against Terrorism) and the European TAPA (Transported Asset Protection Association) safety
requirements for cargo.

Now, with 50 years of experience in the transportation trade, the Group has rapidly expanded its
capabilities by adding experienced logistics professionals; acquiring and developing advanced
logistics systems; and investing in high-quality people, equipment and facilities.

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2 THE STRUCTURE OF HAYLEY’S COMPANY

An organizational structure is a system that outlines how certain are directed in order to achieve
the goals of an organization. These activities can include rules, roles and responsibilities the
organizational structures also determines how information flows between levels within the
company.

The structure of the institution can be pointed out as the main function factors of an institution.
Accordingly, the structure of Hayley‟s institution consists of two very important parts. It is as
follows,

HAYLEY’S CORPORATE GOVERNANCE STRUCTURE

i. Internal Governance Structure and Assurance.

ii. External Governance Structure.

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2.1 INTERNAL GOVERNANCE STRUCTURE AND ASSURANCE

The procedure outlines the processes and principles by which the company will ensure proper
direction, consistent management and control application of cohesive policies decision making
and accountability through all phases of the project development and execution.

2.2 EXTERNAL GOVERNANCE STRUCTURE

External governance structure plays an important role in ensuring proper corporate governance
processes in a business organization. Some of the key external corporate governance controls
include government regulation media exposure.

And thus the Hayley’s are several forms of organizational structure.

Objective Setting

Risk Identification

Risk Assessment

Risk Response & Mitigating Activities

Information and Communication

Risk Assessment

Business units to set their goals and objectives annually after evaluating and identifying the risks
associated with their businesses. The Group's tolerance of risks identified will ultimately
determine the objectives agreed.

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The Group's Management Audit & System Review Department (MA & SRD) plays a significant
role in identifying financial and operational risks relating to SBU's / Sectors and deviations from
required internal controls. Internal audit reports produced monthly / quarterly by leading audit
firms relating to specific sectors are also reviewed to identify the risks. Key elements of risk
relating to sectors are discussed at monthly cluster meetings and at meetings of the Hayley‟s
Group Management Committee (HGMC).

Risk measures are based on likelihood and impact. Any significant risk exceeding risk tolerance
limits will require management responses. Risks mentioned in the MA & SRD reports are ranked
as High, Moderate and Low risk events based on the product of impact and likelihood. A higher
risk event requires a more urgent management response.

Depending on the significance of the risk to the sector in which the entity operates, decisions are
taken to appropriately manage the risk by accepting, reducing, sharing or avoiding it. Such
decisions are influenced by the Group's risk appetite. The Sector Head together with
Management Team initiates migratory action that is needed to manage risks

Documentation and Reporting plays a key role in monitoring risk. Group MA & SRD Reports
and outsourced internal audit reports are forwarded to the respective Group Management
Committee member for action and direction. The reports are also forwarded to the relevant Audit
Committees to increase awareness of the risks in each sector. Reports are tabled by sectors, at the
meetings of the Board, certifying their mitigating actions to overcome risk events

The ultimate responsibility for monitoring the process of Risk Management lies with the HGMC
and Audit Committee. This includes monitoring of efficiency and effectiveness of Group Internal
Controls.

Thus, it is clear that Hayley's organizational structure in the form of groups and in a very clear
way, the organization's activities are carried out structurally for the advancement of the
organization.

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3 CHALLENGES THAT THE HAYLEYS COMPANY FACED DURING
ITS LIFE CYCLE STAGE

 HAYLEYS MANAGEMENT PHILOSOPHY

The management philosophy is a system of beliefs or rules that managers use to guide their
decision-making within the organization. And it can also describe as a methodical approach to
assisting managers in their leadership roles. The typical management philosophy varies based on
the individual and the leadership style managers offer to their organization. It will also be
depending on the department/ division, team goals, and initiatives of the business organization to
be always Sri Lanka‟s corporate inspiration and to create greater shareholder value by
maximizing the people‟s potential and establishing leadership in all local and international
operations, Hayleys conglomerate tries to achieve according to their core values. Honest and
integrity, accountability, teamwork, humanity, enduring customer value, social responsibility as
a good corporate citizen, and innovation are core values of the Hayley‟s which are specified by
the management, for operating in the industrial environment. To overcome the challenging
situation due to covid-19, managers had launched “hay smart initiatives” to ensuring continuity
of business operations. According to that, the group has introduced cost-saving methods while
providing a healthy working environment for employees as per the guidelines of the government.
And the group paid full salary for their employees without deduction.

 ETHICAL AND SOCIAL RESPONSIBILITY STANDPOINT

There was a time when it was widely assumed that businesses were run entirely for the benefit of
the owners of the business. Classical economics‟ beliefs on the role of corporation in
socioeconomic reality, on the other hand, have become less applicable to the current
socioeconomic reality overtime. Furthermore, various developments have occurred in the field of
current company operations. Globalization combined with rapid technical advancements, has
created an entirely new corporate climate. Under the new business environment and trends of the
market, the growth of modern business organization is not only determined by the efficient use

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of the resources and the implementation of suitable strategies, but also by the incorporation of
the notion of Corporate Social Responsibility and business ethics into management operations.

 DECREASE DEMAND

Demand for products may weaken in export markets due to reduced disposable incomes and
buildup of inventory during the year, impacting top line growth. Economies were in recession
during the year resulting in subdued demand and buildup of inventory with customers. However,
economic forecasts for 2021 are positive and demand may rebound towards the latter part of the
year. The duration of the pandemic remains a critical factor for increased demand.

 INCREASING RAW MATERIAL PRICE

Commodity prices are expected to increase by 30% in 2021 as demand picks up with countries
emerging from the pandemic. This will exert pressure on margins as headroom for passing on
price increases is limited in the current economic environment.

Commodity prices declined in 2020 but we have already seen the increase in prices of raw
materials during 1Q of 2021 and it is likely to maintain the upward trend as countries resume
production, moving towards pre-pandemic levels.

 CURRENCY DEVALUATION

This can impact both balance sheet assets denominated in foreign currency as well as increase
cost of imported raw materials/products, exerting pressure on margins. With 49% of revenue
derived in foreign exchange during the year, the Group is cushioned by the impact of foreign
exchange risk to a large extent although converging risks or new opportunities can change the
dynamics. The rupee declined by 4.5% during FY 2020/21 amidst concern over balance of
payments issues and forecast debt servicing requirements. Wide-ranging import restrictions are
in place to support the currency at present. Increasing commodity prices and the need to purchase
vaccines will also add pressure.

 INCREASED COMPETITION

Players in the Asian region have ramped up production with production growth outpacing the
uptick in demand resulting in intense price competition. This is likely impact both export

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markets and the domestic market exerting pressure on both top and bottom lines. The global
recession has increased the intensity of competition in export markets by countries in the region
as they resumed production. In the domestic market, import restrictions in place have deterred
the informal market which has been positive for local manufacturers and ethical import
businesses. Easing of import restrictions in the future may create competitive pressures as
regional low-cost manufacturers in the Asian region seek market access through both formal and
informal channels.

 POLITICAL RISK INCLUDING GOVERNMENT POLICY

Government policy drive regulatory change which may have adverse impact on ethical
businesses that commit to regulatory compliance. The accommodative stance adopted by the
government saw the decrease in interest rates and extensive moratoria as well as lower tax rates
which supported a rebound in economic activity. However, other policy changes such as import
restrictions, the restriction - pesticides and weedicides are allowed of agrochemicals and the
Wages Board mandated wage increase for plantation workers have significant direct and indirect
adverse impacts on our businesses.

 CREDIT RISK

Increasing working capital cycle stressing cash flow management Potential losses due to
impairment of receivables. Losses in a number of sectors increased the credit risk with B2B
customers Delayed payments by the government also impacted some sectors Increased
unemployment and decreasing disposable income gave rise to increase in B2C credit risk.

 LIQUIDITY AND STABILITY

Financial stress and impaired ability to meet future debt obligations. Repayment of debt during
the year improved the debt equity ratios from 196.57% to 152.21%, strengthening the financial
position of the Group with sufficient headroom for further borrowings at need. On a sector basis,

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the Leisure sector has experienced significant cash flow stress and has been supported to a large
extent by the Group which will continue into FY 2021/22 as well.

 ENVIRONMENTAL RISKS

The Group owns biological assets in the plantation sector which are heavily dependent on
favorable weather patterns Additionally, the agriculture sector is directly impacted by weather
patterns. A number of other sectors are also directly or indirectly impacted by climate change in
varying degrees. Increased calls for tighter environmental regulation by climate change
champions. Weather patterns were relatively favorable during the year although harvests were
affected by the pandemic. There are significant opportunities for cost savings and promoting
green business ventures as there is significant interest in this area. Environmental certification is
becoming a mandatory requirement for access to markets and provides an opportunity to
differentiate products in advanced economies.

 OPERATIONAL RISKS

Operational risks include potential losses from the day to day running of the business including
lapses in compliance with regulatory requirements, weaknesses in internal controls,
implementation of health and safety measures etc.

Frequent business disruptions and a work from home trend may result in weaker controls that
were designed for a fully functional workplace. COVID-19 risks increased the operational risks
as described above.

 TECHNOLOGY

The risk of existing machinery being outdated or not fit for purpose The risk that development of
new technologies will require further investment to compete effectively The risk that technology
procured will not work according to specifications.

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Minimal capital expenditure invested during FY 2020/21 due to potential cashflow constraints
and limitations in installation of new machinery Some sectors will require investments in the
year ahead to increase capacity, enhance production capabilities or strategically differentiate a
product range.

 BUSINESS INTERRUPTION DUE TO PANDEMIC

Business closures resulting from lockdowns or an infection at the workplace continues to be an

imminent threat which will lead to loss of production, unsuitability of harvests and delays in
shipment of orders. The Leisure sector continues to be impacted by border closures with a
devastating impact on its cash flows.

While vaccines were developed at record pace, accesses to vaccines remain an issue as many
countries experience new waves and strains. While initiatives were launched to revive tourism,
they halted with the third wave and overall travel sentiments remain subdued.

 REPUTATION RISK

Hayleys PLC‟s reputation has been built over 140+ years and is zealously guarded by employees
of the Group. However, reputation risk arises from many sources and is hard to monitor until it
materializes. Hayleys PLC performed well during the year, rebounding as one of the success
stories in a daunting year.

 LEGAL RISK

Legal risk arises from litigation by stakeholders. Hayleys has developed a compliance and
socially and environmentally responsible culture that values our social license.

i. It is noteworthy that Hayleys portfolio tilt towards the local economy means that
domestic political and policy changes have a significant impact on the operations of the
Group. Downward revisions of sovereign ratings by international agencies are a key
consideration as well as the pressure on the exchange rate. Current import restrictions on
white goods included in the non-essential items is an example of policy impacts that

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 could adversely impact performance. Additionally, credit risk is also elevated, not just
within the local economy but with overseas debtors as well as fashion retailers and tour
operators experience extreme cash flow constraints. Volatility in fuel prices can also
impact the bunkering operations of the Transportation & Logistics Group which will need
careful monitoring and development of expertise to forecast movements. Volatility in raw
material prices could be exacerbated by the convergence on multiple factors and will
need equal vigilance and insight to manage margin pressures. Overall, many risks are
elevated at present and remain fluid with the potential for convergence of multiple risk
factors also at elevated levels with narrower margins for comfort due to resource
limitations which could also limit options for mitigating risks. Hayleys seeks to identify
potential risks early and take necessary action to seize opportunities and minimize
impacts of adverse movements in a timely manner and has increased Group oversight to
biweekly frequencies during this period in recognition of the risk landscape.

ii. A direct impact to the Hayleys Group was the US restrictions on Huawei phones
connecting to Google which led to a lull in sales of Huawei phones which accounted for
approximately 20% of Singer revenue. The issue has since been resolved and sales have
picked up although they remain below forecast levels.

iii. Corporate culture in sustaining business relationships with the global environment

iv. A corporate group or holding company business structure has been a popular approach
for corporate expansion in the world since the 1960s. A corporate group, often known as
a holding company, is a business organization in which two or more diversified
enterprises are grouped together under a single power of control, governance, and
leadership. Managing diversified organizations under the same leadership undoubtedly
offers an economic advantage, but diversified companies fail due to a lack of strong
leadership and an effective organizational culture. Managers in the corporate the group
may face the challenge of loss of control when diversification increases within the group.
state that, managers face more difficulty managing and controlling resources when an
organization gets more diversified.

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4 THE SOLUTION OR THE ACTION THAT THE COMPANY TAKEN
TO FACE THE CHALLENGES.

Hayleys PLC has developed their own strategic planning process which involves customer
Relationship Management Systems, Executive Information System, Evaluation Systems other
technologies. They collect data and information according to above mentioned sources when
they are making strategic decisions to enhance their company's development and organizational
performances. Also they had founded new opportunities, which are involves too company's
development. Then by adapting various opportunities, the company management can easily
decide how the technological development or demographical changes which are affected to face
challengers. As they founded opportunities,
 A new development of a new market such as the Internet
 Improving profit by moving into lately developed market segments
 Combine with strategic alliances.
 Modern International Markets
 Markets which are vacated by competitors who are ineffective.
To improve their organizational performance, Hayleys has captured both local and international
markets maintaining relationships with industrial giants. Due to the Covid 19 pandemic and other
economic recession all the companies‟ performances had been affected. So Hayleys has
diversified products are available to suite different markets.
To improve their financial position Hayleys PLC had done,
 Breaking old supplier chains to reduce the costs
 Introduction of the technology to the local markets and convincing them the
effectiveness of the product.
 Relocating its manufacturing units to reduce cost
 Diversifying the industrial involvement in untouched areas where less biography.

Also, for maintain investors and shareholders trust they have compared with the past and the
present short term and long term achievements. When consider about some other challenges and
what the solutions they had taken are,

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 01. Interruption which are occurred due to the covid-19 pandemic.

The outbreak of the COVID-19 pandemic has plunged the global economy into recession,
presenting organizations, communities and governments with some of the most complex
challenges of this generation. The implications on some of the Group‟s businesses have also
been severe, with every aspect of our operations being affected in some way or another. The
Group‟s success for the year is largely attributed to the ability of the Hayleys Team to swiftly
embrace new ways of working while promptly addressing emerging challenges through
innovative and practical solutions.

THEIR RESPONSE
The Group was quick to adapt to the realities of the pandemic, with all sectors obtaining the
necessary approvals and implementing stringent safety measures which in turn allowed the
relatively swift recommencement of operations. The Group‟s response included the following:
 Establishment of several Task Forces at Group level to ensure timely and proactive
interventions for critical challenges arising due to COVID-19.
 All sectors rolled-out COVID-19 response plans, which provided a blueprint for
recommencing operations under stringent health and safety guidelines.
 Introduced a range of safety protocol in line with the requirements of national and
international health authorities, which included bio-bubbles, distribution of relevant PPE,
implementation of sanitization and temperature monitoring mechanisms, provision of
transport facilities and random PCR testing among others.
 Facilitated remote working facilities for all office employees, providing the necessary IT
systems and infrastructure to ensure seamless operations.
 Group-wide decision to retain all employees in continuing operations at full remuneration
despite heightened uncertainty and liquidity strain during the first lockdown. The Group
Management Committee took a voluntary pay cut for a period of 03 months.
 Capitalized on opportunities presented by the pandemic through agile strategies and
operating models.
 Redeployment of employees between Sectors to ensure optimization of human capital.

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  Shifted engagement with both internal and external stakeholders to digital platforms
including training, employee induction, interaction, virtual tours for customers etc.
 Supporting the national effort to combat COVID-19 through direct monetary
contributions of nearly Rs. 44 Mn and distribution of a range of PPE, medical equipment,
sanitizers and ration packs to hospitals, healthcare workers, schools and vulnerable
communities.

02. Subdued demand.

 Diversification across markets and product categories.
 Forward contracts with key buyers.
 Focus on new customer acquisition.
 Explore feasibility of establishing distribution presence in key export market.

03. Due to the economic crisis and US dollars problems raw materials prices had
increased. So, they take some action to face challenges.
 Daily monitoring of raw material prices
 Forward booking where possible
 Buildup of sufficient inventory while balancing liquidity and other constraints such as
potential for price volatility due to new waves of pandemic and order pipelines
 Expanding upstream supply chains.

04. Currency devaluation.

 Centralized Group Treasury to manage overall foreign exchange risk.
 Natural hedge afforded by the Group‟s export business.
 Ongoing monitoring of macro-economic trends.

05. Cyber security.

 Continuous monitoring of cyber threats.
 Increased information security environment and controls.
 Review by external consultants across all sectors.
 Appointment of an Information Security Deputy General Manager.

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06. Huge competition.
 Aggressive client acquisition in export markets.
 Increased focus on strengthening presence in export markets.
 Diversification of export markets
 Differentiated customer value proposition in domestic market.
 ESG compliance and certification to gain access to markets and also drive strategic
differentiation.

07. Government policies and political risk.

 Representations made to regulatory authorities and ministries through industry
associations.
 Review of business models and strategy to align with regulatory requirements.

08. Credit risk.

 Implement Group credit risk management policy.
 Oversight of sector liquidity by Group Treasury.
 Increased rigor over receivables by all Audit Committees and sectors.
 Strengthened credit processes across business sectors

09. Liquidity and financial stability.

 Increased oversight on liquidity by Board and GMC.
 Management of liquidity by Group Treasury.
 Strong cash flow generation during the year.
 Strengthened financial stability.

10. Environmental Risk.

 Coordinated response on environmental risks by Group Sustainability and Sector
sustainability champions.
 Setting environmental targets to be achieved by 2030.
 Group Environmental policies revised and implemented.

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  Investments in reducing the Group‟s carbon and water footprint with improved access to
markets.
 Increase environmental certifications.

11. Operational challenges.

 Increased oversight by Boards and Audit Committees.
 All sectors have a Compliance Officer who reports to the Head of Finance on compliance
matters.
 Productivity initiatives and certifications benchmark our systems and processes to
international standards.

12. Reputation problems.

 Hayleys Way applicable to all employees and companies of the Group.
 Orientation programmers for all new recruits.
 Sound policy framework.
 A culture of going beyond regulation to high standards of ESG compliance.
 A valued reputation as a good corporate citizen.

13. Legal risk.

 Establishment of Whistle blowing policies and Grievance mechanisms for all employees
of the Group.
 Strong policy framework reinforcing equal opportunity, human rights, anti-corruption,
anti-sexual harassment and fair disciplinary processes.
 Active dialog with trade unions to identify and address concerns

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5 CONCLUSION

Our main objective in this report was to find out the structure of an organization and analyze the
challenges faced by that organization during its life cycle for its existence and growth as well as
a comprehensive analysis of the process of the solutions or measures taken by the organization to
face those challenges.

We chose Hayleys for this and Hayleys is a story of resilience and pioneering spirit with a
journey of success spanning 144 years. The group accounts for approximately 4.2% of Sri
Lanka's export revenue, 3.9% of tea and 4.5% of rubber production, with business interests in 16
business sectors and diversified investments in Sri Lanka. Hayleys has a strong global market
position in key industries such as transport and logistics, agriculture and retail, and has achieved
international recognition such as being the global leader in the production of coconut shell-based
activated carbon, representing 5% of the world's household and industrial production.

Having made a first impression about the company, we conducted studies on the entire company
structure of that company. There, we analyzed the problems, challenges, etc. faced by Hayleys
company with the global environment and the corporate culture of maintaining them, as well as
during the initial stages of the company. All the information found in this analysis has been
presented in this report and we have paid attention to the truth of all those facts as much as
possible in the analysis of each of those facts.

Furthermore, at the end of all these things, i.e. the study of the structure of Hayleys Company,
the challenges faced during the life cycle stage of Hayleys Company and how the company faced
them and how the company managed to survive by avoiding those challenges, we came to the
conclusion. Any company faces various challenges right from its life cycle stage and must
overcome those challenges to maintain the organization.

Furthermore, the study of this report can also gain insight into the solutions or measures to be
taken to face such challenges.

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