Leadership and Management

Analysis of Dilmah Tea

Company

PAGE 1: Title Slide

Slide Content:

 Title: Leadership and Management Analysis of Dilmah Tea Company

 Subtitle: A Comparative Study with HVA Tea and Watawala Tea
 Presented by: [Your Name]
 Date: [Insert Date]

Speaker Notes:
"Welcome to my presentation on the leadership and management analysis of Dilmah
Tea Company, a prominent Sri Lankan firm facing declining growth. Today, I’ll
compare Dilmah with its competitors, HVA Tea and Watawala Tea, analyzing their
organizational situations, leadership and management practices, and organizational
cultures. We’ll also explore strategies to address Dilmah’s challenges and turn
negative outcomes into positive ones. Let’s get started."

PAGE 2: Agenda
Slide Content:

 Introduction to Dilmah Tea Company

 Overview of Competitors: HVA Tea and Watawala Tea
 Financial and Strategic Situation Analysis
 Leadership and Management Theories1qw
 Leadership and Management Styles
 Organizational Culture Analysis
 Recommendations for Improvement
 Conclusion

Speaker Notes:
"Here’s the agenda for today’s presentation. We’ll begin with an introduction to
Dilmah Tea Company, followed by an overview of its competitors, HVA Tea and
Watawala Tea. Next, we’ll analyze their financial and strategic situations, explore
leadership and management theories and styles, and examine their organizational
cultures. Finally, I’ll offer recommendations to improve Dilmah’s situation and
conclude with key insights."
PAGE 3: Introduction to Dilmah Tea
Company
Slide Content:

 Title: Introduction to Dilmah Tea Company

 Founded in 1988 by Merrill J. Fernando
 Sri Lanka’s only fully vertically integrated tea company
 Philosophy: "Business is a Matter of Human Service"
 15-20% of pre-tax profits fund the MJF Foundation & Dilmah Conservation
 CEO: Dilhan C. Fernando (since 2019)
 Key Areas: Ceylon Tea, Ethical Tea, Tea Gastronomy, School of Tea, Tea Mixology
 Employees: 1,001-5,000 | Industry: Food & Beverage Services

Speaker Notes:
"Dilmah Tea Company was founded in 1988 by Merrill J. Fernando and is unique as
Sri Lanka’s only fully vertically integrated tea company, controlling everything from
garden to pack. Its philosophy, 'Business is a Matter of Human Service,' underscores
its ethical focus. The company donates 15-20% of its pre-tax profits to the MJF
Foundation and Dilmah Conservation, supporting Sri Lankan communities. Since
2019, CEO Dilhan C. Fernando has led efforts in sustainability, innovation, and
community impact, emphasizing areas like Ceylon Tea, Ethical Tea, and Tea
Mixology. With 1,001 to 5,000 employees, Dilmah operates in the Food & Beverage
Services industry."

PAGE 4: Overview of Dilmah Tea

Company
Slide Content:

 Title: Overview
 Founded in 1988 by Merrill J. Fernando
 Sri Lanka’s only fully vertically integrated Tea Company from garden to pack
 Philosophy: Business is a Matter of Human Service
 15-20% of pre-tax profits fund the MJF Foundation & Dilmah Conservation to support Sri
Lankan communities
 Dilhan C. Fernando, CEO since 2019, drives sustainability, innovation, community impact &
adapts to modern trends
 Key Areas: Ceylon Tea, Ethical Tea, Tea Gastronomy, School of Tea, Tea Mixology
 Employees: 1,001-5,000 | Industry: Food & Beverage Services

Speaker Notes:
"This slide reiterates Dilmah’s key details. Founded in 1988 by Merrill J. Fernando,
it’s Sri Lanka’s only vertically integrated tea company. Its philosophy of human
service drives its operations, with significant profits supporting the MJF Foundation
and Dilmah Conservation. Under CEO Dilhan C. Fernando since 2019, Dilmah
focuses on sustainability and innovation in areas like tea gastronomy and mixology,
employing between 1,001 and 5,000 people in the Food & Beverage Services sector."
PAGE 5: Financial Situation of Dilmah
Tea Company
Slide Content:

 Title: Financial Situation of Dilmah Tea Company

 Revenue declined by 17%
 Profit before tax dropped by 77%
 Net profit decreased by 85%
 EPS fell from Rs. 242.77 to Rs. 36.76
 Table:

Previous Current Chan

Metric
Year Year ge
Revenue Rs. X Mn Rs. Y Mn -17%
Profit Before Tax Rs. A Mn Rs. B Mn -77%
Net Profit Rs. C Mn Rs. D Mn -85%
-
EPS Rs. 242.77 Rs. 36.76
84.9%

Speaker Notes:
"Dilmah is experiencing a severe financial downturn. Revenue has declined by 17%,
profit before tax by 77%, and net profit by 85%. Earnings per share have dropped
dramatically from Rs. 242.77 to Rs. 36.76, an 84.9% decrease. The table illustrates
these changes, comparing previous and current years. This financial decline signals
the urgency for strategic interventions, which we’ll explore later."

PAGE 6: Introduction to Competitor 1 -

HVA Tea
Slide Content:

 Title: Introduction to Competitor 1 - HVA Tea

 Founded in 1990 as HAVA Lanka Exports
 Became fully Sri Lankan-owned in 1993
 BOI-approved export company since 1996
 Now one of Sri Lanka’s top tea exporters
 Owns the HELADIV brand
 Focus: Export of high-quality Ceylon tea

Speaker Notes:
"Now, let’s look at Dilmah’s first competitor, HVA Tea. Founded in 1990 as HAVA
Lanka Exports, it became fully Sri Lankan-owned in 1993 and a BOI-approved export
company in 1996. Today, it’s one of Sri Lanka’s leading tea exporters, owning the
HELADIV brand, which draws from the Sinhala term for Sri Lanka, 'Land of the
Lion.' HVA Tea focuses on exporting high-quality Ceylon tea, establishing a strong
global presence."

PAGE 7: Overview of HVA Tea

Slide Content:

 Title: Overview
 Founded in 1990 as HAVA Lanka Exports, fully Sri Lankan-owned since 1993
 BOI-approved export company since 1996
 One of Sri Lanka’s top tea exporters
 Owns the HELADIV brand
 Employees: 501-1,000 | Industry: Food & Beverage Exports
 Key Focus: High-quality Ceylon tea exports

Speaker Notes:
"This slide provides an overview of HVA Tea. Since its founding in 1990 and full Sri
Lankan ownership in 1993, it’s been a BOI-approved exporter since 1996. As a top
tea exporter with 501 to 1,000 employees, HVA Tea operates under the HELADIV
brand, focusing on high-quality Ceylon tea exports. Its export-driven strategy has
solidified its position in the global market, contrasting with Dilmah’s challenges."

PAGE 8: Financial Situation of HVA Tea

Slide Content:

 Title: Financial Situation of HVA Tea

 Revenue growth: +10% (last year)
 Net profit margin: 12%
 Export volume: Increased by 8% (3.5 Mn kg to 3.78 Mn kg)
 Challenges: Rising raw material costs, global competition
 Table:

Previous Current Chan

Metric
Year Year ge
Revenue Rs. E Mn Rs. F Mn +10%
Net Profit
10% 12% +2%
Margin
Export Volume 3.5 Mn kg 3.78 Mn kg +8%

Speaker Notes:
"HVA Tea has performed well financially. Revenue grew by 10% last year, with a net
profit margin rising from 10% to 12%. Export volume increased by 8%, from 3.5
million to 3.78 million kilograms. Despite challenges like rising raw material costs
and global competition, HVA Tea’s growth, as shown in the table, contrasts sharply
with Dilmah’s decline, highlighting effective strategies we’ll explore later."

PAGE 9: Introduction to Competitor 2 -

Watawala Tea
Slide Content:

 Title: Introduction to Competitor 2 - Watawala Tea

 Parent Company: Sunshine Holdings PLC (renamed Sunshine Consumer Lanka Ltd in 2021)
 Market Position: Leader with ~35-37% share of Sri Lanka’s branded tea market
 Awards: Multiple SLIM Nielsen People’s Awards as top hot beverage brand
 Industry: Food & Beverage Manufacturing
 Employees: 501-1,000

Speaker Notes:
"Our second competitor, Watawala Tea, is a dominant player in Sri Lanka’s tea
market. Owned by Sunshine Holdings PLC, renamed Sunshine Consumer Lanka Ltd
in 2021, it holds a 35-37% share of the branded tea market. Watawala has earned
multiple SLIM Nielsen People’s Awards as the top hot beverage brand. With 501 to
1,000 employees, it operates in the Food & Beverage Manufacturing industry, posing
a strong challenge to Dilmah."

PAGE 10: Overview of Watawala Tea

Slide Content:

 Title: Overview
 Parent Company: Fully owned by Sunshine Holdings PLC (renamed Sunshine Consumer Lanka
Ltd in 2021)
 Market Position: Leader with ~35-37% share of Sri Lanka’s branded tea market
 Awards: Multiple SLIM Nielsen People’s Awards as top hot beverage brand
 Industry: Food & Beverage Manufacturing
 Employees: 501-1,000

Speaker Notes:
"This slide outlines Watawala Tea’s key details. Fully owned by Sunshine Holdings
PLC, rebranded in 2021, Watawala leads with a 35-37% market share in Sri Lanka’s
branded tea sector. Its repeated SLIM Nielsen People’s Awards affirm its status as a
top hot beverage brand. Employing 501 to 1,000 people, Watawala thrives in Food &
Beverage Manufacturing, offering lessons for Dilmah in market dominance and
branding."
PAGE 11: Financial Situation of
Watawala Tea
Slide Content:

 Title: Financial Situation of Watawala Tea

 Revenue growth: +15% (last year)
 Net profit margin: 15%
 Market share: Stable at 35-37%
 Challenges: Rising production costs, inflationary pressures
 Table:

Previous Current Chan

Metric
Year Year ge
Revenue Rs. G Mn Rs. H Mn +15%
Net Profit
13% 15% +2%
Margin
Stabl
Market Share 35% 36%
e

Speaker Notes:
"Watawala Tea shows robust financial health, with a 15% revenue increase and a net
profit margin rising from 13% to 15%. Its market share remains stable at 35-37%.
Despite challenges like rising production costs and inflation, as shown in the table,
Watawala’s performance outpaces Dilmah’s, reflecting strong management and
market strategies we’ll analyze further."

PAGE 12: Strategic Situation Analysis

Slide Content:

 Title: Strategic Situation Analysis

 Dilmah’s Challenges:

o Decline in export volume (1 to 4.5 Mn kg)

o Decreased demand
o Competitors offering lower-quality but cheaper alternatives
o Brand repositioning efforts not yet matured
o Global supply chain issues
o Sustainability commitments adding cost without short-term returns
o Inflationary pressure
o Structural problems in Sri Lankan tea industry
o Low government support for value addition and reform
o Rising costs (energy, packaging, raw materials, wages)
o Profit margins squeezed
Speaker Notes:
"Dilmah faces numerous strategic challenges. Export volume has dropped from 4.5
million to 1 million kilograms due to decreased demand and competition from
cheaper alternatives. Brand repositioning is immature, and global supply chain issues
compound the problem. Sustainability efforts, while noble, increase costs without
immediate returns. Inflation, industry structural issues, low government support, and
rising costs further squeeze profit margins, necessitating a strategic overhaul."

PAGE 13: Current Problems of Dilmah

Slide Content:

 Title: Current Problems

 Financial Decline:

o Revenue: -17%
o Profit Before Tax: -77%
o Net Profit: -85%
o EPS: Rs. 242.77 to Rs. 36.76 (-84.9%)

 Strategic Issues:

o Declining export volume

o Decreased demand
o Competitive pressure from lower-cost alternatives
o Immature brand repositioning
o Global supply chain disruptions

Speaker Notes:
"Dilmah’s current problems are twofold: financial and strategic. Financially, revenue
is down 17%, profit before tax 77%, net profit 85%, and EPS has fallen 84.9% from
Rs. 242.77 to Rs. 36.76. Strategically, declining export volumes, reduced demand,
competition from cheaper alternatives, immature brand repositioning, and supply
chain disruptions are crippling the company. These issues demand immediate
attention."

PAGE 14: Reasons for Dilmah’s

Challenges
Slide Content:

 Title: Decline in Export Volume

 Export volume dropped from 4.5 Mn kg to 1 Mn kg
 Decreased demand in key markets
 Competitors offering lower-quality but cheaper alternatives
 Brand repositioning efforts not yet matured
  Global supply chain issues
 Sustainability commitments adding cost without short-term returns
 Inflationary pressure
 Structural problems in Sri Lankan tea industry
 Low government support for value addition and reform
 Rising costs (energy, packaging, raw materials, wages)
 Profit margins squeezed

Speaker Notes:
"This slide details why Dilmah’s export volume fell from 4.5 million to 1 million
kilograms. Decreased demand in key markets, competition from cheaper alternatives,
and immature brand repositioning are key drivers. Global supply chain disruptions,
costly sustainability efforts, inflation, industry structural issues, low government
support, and rising costs for energy, packaging, materials, and wages are squeezing
margins, explaining Dilmah’s struggles."

PAGE 15: Comparison with HVA Tea &

Watawala Tea
Slide Content:

 Title: Compare with HVA Tea & Watawala Tea

 Table:

Metric Dilmah HVA Tea Watawala Tea

Revenue
-17% +10% +15%
Growth
Net Profit
-85% (decline) 12% 15%
Margin
Export 3.78 Mn kg
1 Mn kg (-78%) Stable
Volume (+8%)
Market 35-37%
Declining Stable
Share (Stable)
Rising raw
Key Supply chain, Inflationary
material
Challenges sustainability costs pressures
costs

Speaker Notes:
"This table compares Dilmah with HVA Tea and Watawala Tea. Dilmah’s revenue
dropped 17%, while HVA Tea grew 10% and Watawala 15%. Net profit for Dilmah
fell 85%, compared to HVA’s 12% and Watawala’s 15% margins. Export volume for
Dilmah declined 78% to 1 million kilograms, while HVA’s rose 8% to 3.78 million,
and Watawala’s stayed stable. Dilmah’s market share is shrinking, unlike its
competitors. Challenges include supply chain and sustainability costs for Dilmah,
versus raw material costs and inflation for HVA and Watawala."
PAGE 16: Leadership Theories &
Application
Slide Content:

 Title: Leadership Theories & Application

 Trait Theory: Focus on inherent qualities (e.g., Dilhan C. Fernando’s vision for sustainability)
 Behavioral Theory: Emphasis on actions (e.g., Merrill J. Fernando’s ethical leadership)
 Contingency Theory: Leadership adapts to situations (e.g., adapting to global trends)
 Transformational Theory: Inspiring change (e.g., driving innovation in tea mixology)

Speaker Notes:
"Let’s explore leadership theories at Dilmah. Trait Theory highlights Dilhan C.
Fernando’s inherent vision for sustainability. Behavioral Theory reflects Merrill J.
Fernando’s ethical actions that shaped Dilmah’s ethos. Contingency Theory shows
adaptation to global trends like tea gastronomy, while Transformational Theory is
seen in driving innovation through tea mixology. These theories frame Dilmah’s
leadership approach and its effectiveness."

PAGE 17: What is Leadership?

Slide Content:

 Title: What is Leadership?

 Definition: "Leadership is the ability to influence a group toward the achievement of a vision
or set of goals."
 Key Elements:

o Vision
o Influence
o Motivation
o Goal Achievement

Speaker Notes:
"Leadership is defined as the ability to influence a group toward achieving a vision or
goals. At Dilmah, this involves a vision of sustainability, influencing teams,
motivating through ethical values, and aiming for goals like innovation. This
definition helps us assess how leadership drives Dilmah’s performance compared to
its competitors."

PAGE 18: Leadership Theories in HVA

Tea
Slide Content:

 Title: Leadership Theories in HVA Tea

 Behavioral Theory: Focus on export-driven strategies
 Transactional Theory: Emphasis on achieving export targets through structured processes
 Situational Theory: Adapting to global market demands

Speaker Notes:
"HVA Tea’s leadership aligns with Behavioral Theory through its export-driven
actions, Transactional Theory by meeting export targets with structured processes,
and Situational Theory by adapting to global market demands. These approaches have
fueled HVA’s export growth and financial success, offering a contrast to Dilmah’s
leadership challenges."

PAGE 19: Leadership Theories in

Watawala Tea
Slide Content:

 Title: Leadership Theories in Watawala Tea

 Transformational Theory: Driving market leadership through innovation
 Charismatic Theory: Leveraging awards and brand reputation
 Contingency Theory: Adapting to FMCG expansion under Sunshine Holdings

Speaker Notes:
"Watawala Tea employs Transformational Theory to drive market leadership via
innovation, Charismatic Theory by leveraging its award-winning reputation, and
Contingency Theory to adapt to its parent company’s FMCG expansion. These
leadership strategies have sustained Watawala’s dominance, providing lessons for
Dilmah to enhance its own approach."

PAGE 20: Why Do These Impacts

Happen?
Slide Content:

 Title: Why Do These Impacts Happen?

 Dilmah: High sustainability costs, global supply chain issues, and immature brand
repositioning
 HVA Tea: Focus on export efficiency, adaptability to global markets
 Watawala Tea: Strong brand reputation, market leadership, and innovation

Speaker Notes:
"Dilmah’s struggles stem from high sustainability costs, supply chain disruptions, and
immature brand repositioning. HVA Tea thrives due to export efficiency and market
adaptability, while Watawala succeeds with a strong reputation and innovation. These
factors explain the differing impacts on each company’s performance."

PAGE 21: How to Convert Negative into

Positive Outcomes?
Slide Content:

 Title: How to Convert Negative into Positive Outcomes?

 Dilmah’s Approach:

o Reframe sustainability as a competitive advantage

o Invest in digital marketing to mature brand repositioning
o Diversify product offerings (e.g., tea-based beverages)
o Strengthen supply chain resilience
o Lobby for government support in value addition

Speaker Notes:
"To turn negatives into positives, Dilmah can reframe sustainability as a competitive
edge, appealing to eco-conscious consumers. Digital marketing can mature brand
repositioning, while diversifying into tea-based beverages can boost demand.
Strengthening supply chain resilience and lobbying for government support can
address structural issues, paving the way for recovery."

PAGE 22: Management Theories &

Application
Slide Content:

 Title: Management Theories & Application

 Scientific Management: Focus on operational efficiency (e.g., Dilmah’s vertical integration)
 Systems Theory: Managing interconnected processes (e.g., supply chain management)
 Contingency Theory: Adapting management practices to market conditions
 Human Relations Theory: Emphasizing employee welfare (e.g., MJF Foundation)

Speaker Notes:
"Dilmah applies Scientific Management through its efficient vertical integration,
Systems Theory in managing its supply chain, Contingency Theory to adapt to market
shifts, and Human Relations Theory via employee welfare programs like the MJF
Foundation. These theories shape Dilmah’s management practices and their
outcomes."

PAGE 23: What is Management?

Slide Content:

 Title: What is Management?

 Definition: "Management is the process of planning, organizing, directing, and controlling
resources to achieve organizational goals."
 Key Functions:

o Planning
o Organizing
o Directing
o Controlling

Speaker Notes:
"Management is the process of planning, organizing, directing, and controlling
resources to achieve goals. At Dilmah, planning sets sustainability targets, organizing
structures the supply chain, directing leads teams, and controlling monitors finances.
This framework helps us evaluate management’s role in Dilmah’s performance."

PAGE 24: Management Theories in HVA

Tea
Slide Content:

 Title: Management Theories in HVA Tea

 Scientific Management: Streamlined export processes
 Systems Theory: Integrated supply chain management
 Bureaucratic Theory: Structured approach to achieving export targets

Speaker Notes:
"HVA Tea uses Scientific Management for streamlined export processes, Systems
Theory for integrated supply chain management, and Bureaucratic Theory for a
structured approach to export targets. These practices enhance efficiency and support
HVA’s growth, contrasting with Dilmah’s management struggles."

PAGE 25: Positive & Negative Impacts of

Management Theories
Slide Content:

 Title: Positive & Negative Impacts of Management Theories

 Positive Impacts:

o Scientific Management: Increased efficiency in production

o Human Relations Theory: Improved employee morale

 Negative Impacts:
 o Contingency Theory: Slow adaptation to rapid market changes
o Systems Theory: Complexity in managing global supply chains

Speaker Notes:
"Dilmah’s management theories yield positives like production efficiency from
Scientific Management and better morale from Human Relations Theory. However,
negatives include slow adaptation to market changes under Contingency Theory and
supply chain complexity from Systems Theory, impacting overall effectiveness."

PAGE 26: Why These Impacts?

Slide Content:

 Title: Why These Impacts?

 Positive Impacts:

o Focus on efficiency aligns with industry demands

o Employee welfare fosters loyalty

 Negative Impacts:

o Resistance to change in traditional management practices

o Over-reliance on complex systems for global operations

Speaker Notes:
"Positive impacts arise from efficiency meeting industry needs and employee welfare
boosting loyalty. Negative impacts stem from resistance to change in traditional
management and over-reliance on complex systems, hindering Dilmah’s ability to
adapt and manage globally."

PAGE 27: How to Convert Negative into

Positive Outcomes?
Slide Content:

 Title: How to Convert Negative into Positive Outcomes?

 Strategies for Dilmah:

o Adopt agile management practices to improve adaptability

o Simplify supply chain systems using technology
o Train managers in change management
o Balance efficiency with flexibility in operations

Speaker Notes:
"Dilmah can adopt agile management to enhance adaptability, simplify supply chains
with technology, train managers in change management, and balance efficiency with
flexibility. These steps can turn management weaknesses into strengths, improving
overall performance."

PAGE 28: Leadership & Management

Styles
Slide Content:

 Title: Leadership & Management Styles

 Leadership Styles at Dilmah:

o Transformational: Inspiring innovation (Dilhan C. Fernando)

o Democratic: Involving teams in sustainability initiatives

 Management Styles at Dilmah:

o Coaching: Development-focused approach

o Authoritative: Control-based in production processes

Speaker Notes:
"Dilmah’s leadership includes Transformational style, with Dilhan C. Fernando
inspiring innovation, and Democratic style, involving teams in sustainability.
Management styles are Coaching, focusing on development, and Authoritative,
controlling production. These styles shape Dilmah’s operations but need refinement
for better results."

PAGE 29: What is a Leadership Style?

Slide Content:

 Title: What is a Leadership Style?

 Definition: "Leadership style is the pattern of behavior a leader exhibits in influencing and
directing others."
 Types of Leadership Styles:

o Autocratic: Leader makes all decisions

o Democratic: Team involved in decisions
o Transformational: Inspiring change
o Laissez-faire: Minimal leader involvement

Speaker Notes:
"A leadership style is the behavior pattern a leader uses to influence others. Dilmah
uses Democratic and Transformational styles, while Autocratic and Laissez-faire are
less evident. This framework helps us assess how leadership styles impact Dilmah’s
situation."
PAGE 30: Leadership Styles in HVA Tea
& Watawala Tea
Slide Content:

 Title: Leadership Styles in HVA Tea & Watawala Tea

 HVA Tea:

o Transactional: Focus on achieving export targets

o Situational: Adapting to global market demands

 Watawala Tea:

o Charismatic: Leveraging brand reputation

o Transformational: Driving market leadership through innovation

Speaker Notes:
"HVA Tea uses Transactional leadership for export targets and Situational leadership
for market adaptability. Watawala employs Charismatic leadership, leveraging its
reputation, and Transformational leadership for innovation. These styles drive their
success, offering models for Dilmah to consider."

PAGE 31: What is a Management Style?

Slide Content:

 Title: What is a Management Style?

 Definition: "A manager’s preferred method of planning, directing, and overseeing work."
 Types of Management Styles:

o Authoritative: Control-based
o Coaching: Development-focused
o Delegative: Hands-off

Speaker Notes:
"A management style is a manager’s preferred method for overseeing work. Dilmah
uses Authoritative and Coaching styles, while Delegative could add flexibility. This
lens helps us evaluate management’s role in Dilmah’s performance."

PAGE 32: Management Styles in HVA

Tea & Watawala Tea
Slide Content:
  Title: Management Styles in HVA Tea & Watawala Tea
 HVA Tea:

o Authoritative: Structured export processes

o Bureaucratic: Clear hierarchies for efficiency

 Watawala Tea:

o Coaching: Focus on employee development

o Visionary: Aligning with FMCG expansion goals

Speaker Notes:
"HVA Tea’s Authoritative and Bureaucratic styles ensure export efficiency, while
Watawala’s Coaching and Visionary styles support development and expansion.
These approaches contrast with Dilmah’s, suggesting areas for improvement in
management flexibility and vision."

PAGE 33: Organizational Culture

Slide Content:

 Title: Organizational Culture

 Definition: "The values, beliefs, and behaviors that shape how people work in an
organization."
 Key Elements:

o Shared Values
o Norms
o Beliefs
o Communication
o Leadership Tone

Speaker Notes:
"Organizational culture comprises values, beliefs, and behaviors shaping work. At
Dilmah, shared values like human service, ethical norms, sustainability beliefs, open
communication, and a leadership tone of innovation define its culture, influencing
performance."

PAGE 34: Types of Organizational

Culture
Slide Content:

 Title: Types of Organizational Culture

 Types:
 o Power: Centralized decision-making
o Role: Focus on structure and roles
o Task: Emphasis on project-based work
o Person: Focus on individual development

 Importance of Organizational Culture on Performance:

o Enhances employee engagement

o Drives innovation
o Impacts financial performance

Speaker Notes:
"Dilmah’s culture blends Person, focusing on development, and Task, emphasizing
projects like tea mixology. Power and Role types are less prominent. Culture
enhances engagement, drives innovation, and affects finances, critical for Dilmah’s
recovery."

PAGE 35: Organizational Culture in HVA

Tea & Watawala Tea
Slide Content:

 Title: Organizational Culture in HVA Tea & Watawala Tea

 HVA Tea:

o Role Culture: Structured processes for exports

o Task Culture: Focus on export targets

 Watawala Tea:

o Person Culture: Emphasis on employee development

o Innovation Culture: Driving market leadership

Speaker Notes:
"HVA Tea’s Role and Task cultures prioritize export structure and targets, while
Watawala’s Person and Innovation cultures focus on development and market
leadership. These cultural strengths support their success, offering insights for
Dilmah."

PAGE 36: Positive & Negative Cultural

Impacts
Slide Content:

 Title: Positive & Negative Cultural Impacts

 Positive Impacts:
 o Ethical culture enhances brand reputation
o Employee-focused culture improves retention

 Negative Impacts:

o Resistance to change hinders innovation

o Sustainability focus increases costs

Speaker Notes:
"Dilmah’s ethical culture boosts its reputation, and its employee focus aids retention.
However, resistance to change stifles innovation, and sustainability raises costs,
negatively impacting finances. Balancing these is key."

PAGE 37: Reasons for Cultural Impacts

Slide Content:

 Title: Reasons for Cultural Impacts

 Positive Impacts:

o Strong alignment with ethical values

o Leadership commitment to employee welfare

 Negative Impacts:

o Traditional mindset resistant to change

o High costs of sustainability initiatives

Speaker Notes:
"Positive cultural impacts come from ethical alignment and leadership’s welfare
commitment. Negative impacts arise from a traditional mindset resisting change and
costly sustainability efforts, explaining Dilmah’s mixed outcomes."

PAGE 38: Effects of Cultural Impacts

Slide Content:

 Title: Effects of Cultural Impacts

 Positive Effects:

o Enhanced brand loyalty

o Higher employee satisfaction

 Negative Effects:

o Slower innovation cycles

o Financial strain from sustainability costs
Speaker Notes:
"Positive effects include stronger brand loyalty and employee satisfaction. Negative
effects are slower innovation and financial strain from sustainability, contributing to
Dilmah’s decline. Addressing these is vital."

PAGE 39: How to Convert Negative

Cultural Issues to Positive Outcomes?
Slide Content:

 Title: How to Convert Negative Cultural Issues to Positive Outcomes?

 Dilmah Case Study:

o The Problem: Aggressive marketing criticized as offensive

o The Solution: Highlight positive product benefits, adopt a nuanced approach
o The Results: Improved brand perception, cultural sensitivity
o The Takeaway: Focus on cultural context, adapt strategies

Speaker Notes:
"Dilmah faced criticism for aggressive marketing. By highlighting product benefits
and adopting a nuanced approach, it improved brand perception and sensitivity. The
takeaway is to adapt strategies to cultural contexts, a lesson applicable to other
challenges."

PAGE 40: What Cultural Changes Are

Needed in Dilmah?
Slide Content:

 Title: What Cultural Changes Are Needed in Dilmah?

 Foster a culture of innovation to overcome resistance to change
 Balance sustainability with cost efficiency
 Promote agility in decision-making
 Enhance cross-functional collaboration
 Align culture with global market trends

Speaker Notes:
"Dilmah needs to foster innovation, balance sustainability with cost efficiency,
promote agile decision-making, enhance collaboration, and align with global trends.
These changes can create a dynamic culture to boost performance."
PAGE 41: Final Evaluation &
Suggestions
Slide Content:

 Title: Final Evaluation & Suggestions

 Evaluation:

o Dilmah: Strong ethical culture but hindered by financial decline and resistance to
change
o HVA Tea: Efficient export-driven culture, adaptable to global markets
o Watawala Tea: Innovative culture, strong market leadership

 Suggestions:

o Adopt agile leadership and management practices

o Simplify supply chain systems
o Leverage digital marketing for brand repositioning
o Balance sustainability with cost efficiency

Speaker Notes:
"Dilmah’s ethical culture is a strength, but financial decline and resistance to change
are hurdles. HVA Tea excels in export efficiency and adaptability, while Watawala
leads with innovation. Suggestions include agile practices, simplified supply chains,
digital marketing, and cost-efficient sustainability to improve Dilmah’s standing."

PAGE 42: Suggestions to Improve

Dilmah’s Leadership
Slide Content:

 Title: Suggestions to Improve Dilmah’s Leadership

 Adopt a Transformational Leadership Style to drive innovation
 Encourage Democratic Leadership to involve teams in decision-making
 Develop Situational Leadership skills to adapt to market changes
 Focus on Charismatic Leadership to enhance brand reputation
 Train leaders in change management to overcome resistance

Speaker Notes:
"To enhance leadership, Dilmah should adopt Transformational style for innovation,
Democratic style for team involvement, Situational skills for adaptability, Charismatic
style for reputation, and train leaders in change management. These steps can
revitalize leadership effectiveness."
PAGE 43: How Can Management Bring
Short-Term and Long-Term
Improvements?
Slide Content:

 Title: How Can Management Bring Short-Term and Long-Term Improvements?

 Short-Term Improvements:

o Streamline supply chain processes

o Reduce operational costs
o Implement digital tools for efficiency

 Long-Term Improvements:

o Invest in employee development programs

o Adopt sustainable practices with cost benefits
o Expand into new markets (e.g., tea-based beverages)

Speaker Notes:
"Management can achieve short-term gains by streamlining supply chains, cutting
costs, and using digital tools. Long-term, investing in employees, cost-effective
sustainability, and market expansion into tea beverages can ensure sustained growth."

PAGE 44: Dilmah Can Learn from HVA

Tea & Watawala Tea
Slide Content:

 Title: Dilmah Can Learn from HVA Tea & Watawala Tea
 From HVA Tea:

o Focus on export efficiency

o Adapt to global market demands

 From Watawala Tea:

o Leverage innovation to maintain market leadership

o Use brand reputation to build consumer trust

Speaker Notes:
"Dilmah can learn export efficiency and adaptability from HVA Tea, and innovation
and reputation-building from Watawala Tea. These lessons can help Dilmah regain its
competitive edge."
PAGE 45: What Must Dilmah Change?
Slide Content:

 Title: What Must Dilmah Change?

 Leadership: Adopt agile and transformational styles
 Management: Simplify systems, focus on cost efficiency
 Culture: Foster innovation, reduce resistance to change
 Strategy: Diversify products, strengthen supply chain
 External Engagement: Lobby for government support

Speaker Notes:
"Dilmah must adopt agile and transformational leadership, simplify management
systems, foster an innovative culture, diversify products, strengthen supply chains,
and lobby for government support. These changes are essential for recovery."

PAGE 46: Conclusion

Slide Content:

 Title: Conclusion
 Dilmah faces significant financial and strategic challenges
 Competitors HVA Tea and Watawala Tea demonstrate strengths in export efficiency and
innovation
 Leadership and management improvements can help Dilmah recover
 Cultural changes are needed to foster innovation and adaptability
 Strategic interventions can convert negative outcomes into positive ones

Speaker Notes:
"In conclusion, Dilmah faces serious financial and strategic challenges. HVA Tea and
Watawala Tea excel in efficiency and innovation. Improving leadership, management,
and culture, alongside strategic interventions, can help Dilmah recover and thrive."

PAGE 47: Thank You

Slide Content:

 Title: Thank You

 Questions?

Speaker Notes:
"Thank you for listening. I hope this presentation offered valuable insights into
Dilmah’s challenges and solutions. I’m ready to answer your questions."
PAGE 48: Template Editing Instructions
and Feedback
Slide Content:

 Title: Template Editing Instructions and Feedback

 Instructions:

o Use a consistent font (e.g., Calibri, 24pt for headings, 18pt for body)
o Include visuals (e.g., charts, images of tea products) to enhance engagement
o Ensure slide transitions are smooth and professional

 Feedback:

o Add more visuals to financial and comparison slides

o Reduce text density on strategic analysis slides
o Include a summary slide before the conclusion

Speaker Notes:
"For the final presentation, use a consistent font like Calibri, 24pt for headings and
18pt for body text. Add visuals like charts and tea product images, and ensure smooth
transitions. Feedback suggests more visuals for financial and comparison slides, less
text on strategic analysis, and a summary slide before the conclusion for clarity."

PAGE 1: Title Slide

PAGE 2: Agenda

PAGE 3: Introduction to Dilmah Tea Company

PAGE 4: Overview of Dilmah Tea Company

PAGE 5: Financial Situation of Dilmah Tea Company

PAGE 6: Introduction to Competitor 1 - HVA Tea

PAGE 7: Overview of HVA Tea

PAGE 8: Financial Situation of HVA Tea

PAGE 9: Introduction to Competitor 2 - Watawala Tea

PAGE 10: Overview of Watawala Tea

PAGE 11: Financial Situation of Watawala Tea

PAGE 12: Strategic Situation Analysis

PAGE 13: Current Problems of Dilmah

PAGE 14: Reasons for Dilmah’s Challenges

PAGE 15: Comparison with HVA Tea & Watawala Tea

PAGE 16: Leadership Theories & Application

PAGE 17: What is Leadership?

PAGE 18: Leadership Theories in HVA Tea

PAGE 19: Leadership Theories in Watawala Tea

PAGE 20: Why Do These Impacts Happen?

PAGE 21: How to Convert Negative into Positive Outcomes?

PAGE 22: Management Theories & Application

PAGE 23: What is Management?

PAGE 24: Management Theories in HVA Tea

PAGE 25: Positive & Negative Impacts of Management Theories

PAGE 26: Why These Impacts?

PAGE 27: How to Convert Negative into Positive Outcomes?

PAGE 28: Leadership & Management Styles

PAGE 29: What is a Leadership Style?

PAGE 30: Leadership Styles in HVA Tea & Watawala Tea

PAGE 31: What is a Management Style?

PAGE 32: Management Styles in HVA Tea & Watawala Tea

PAGE 33: Organizational Culture

PAGE 34: Types of Organizational Culture

PAGE 35: Organizational Culture in HVA Tea & Watawala Tea

PAGE 36: Positive & Negative Cultural Impacts

PAGE 37: Reasons for Cultural Impacts

PAGE 38: Effects of Cultural Impacts

PAGE 39: How to Convert Negative Cultural Issues to Positive Outcomes?

PAGE 40: What Cultural Changes Are Needed in Dilmah?

PAGE 41: Final Evaluation & Suggestions

PAGE 42: Suggestions to Improve Dilmah’s Leadership

PAGE 43: How Can Management Bring Short-Term and Long-Term

Improvements?

PAGE 44: Dilmah Can Learn from HVA Tea & Watawala Tea

PAGE 45: What Must Dilmah Change?

PAGE 46: Conclusion

PAGE 47: Thank You