INCA GARCILASO DE LA VEGA UNIVERSITY

LAIVE SA

Course:
Human resources management

Teacher:
Pittman Quintter Larry Rooms

Members:
Rojas Holguin Evelyn
Rojas Holguin Kevin

Lima Peru

2015
INDEX
COMPANY INFORMATION...............................................................................................2
GENERAL DATA............................................................................................................................3
HISTORY..........................................................................................................................3
MISSION...........................................................................................................................5
VISION..............................................................................................................................6
STRATEGY..........................................................................................................................6
PERSPECTIVES.....................................................................................................................6
SOCIAL ROLE.......................................................................................................................6
ECOLOGY...........................................................................................................................6
YOUR PLANTS.....................................................................................................................6
SWOT ANALYSIS...............................................................................................................10
HUMAN RESOURCES FUNCTIONS...........................................................................................11
DATABASE........................................................................................................................11
COMPANY STAFF................................................................................................................12
Organization chart.....................................................................................................13

2
 COMPANY INFORMATION
GENERAL DATA
Company Name: LAIVE SA
RUC: 20100095450
Corporate Purpose: Production of dairy products.
Date of Start of Operations: October 20, 1910
Legal Address: Av. Nicolás de Piérola 601 Fnd. The Star – Ate – Lima
Website: http://www.laive.com.pe
Certifications: HACCP1 , DIGESA2 , ISO 9001.

1
HACCP stands for Hazard Analysis and Critical Control Points, which guarantees food safety without being a
quality management system. It constitutes a guide with principles and steps to follow to prevent food
contamination risks. the products.
2
DIGESA, acronym for the General Directorate of Environmental Health, which is the technical-regulatory
body of the Ministry of Health of Peru in aspects related to food sanitation.

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 HISTORY

In 1910, the Sociedad Ganadera del Centro SA, today LAIVE SA, was founded with the
participation of Messrs. Domingo Olavegoya, Demetrio Olavegoya, Felipe Chávez and
Juan Valladares with 50,000 Peruvian Pounds, to initially purchase the Acopalca,
Chamiseria and Runatullo haciendas. , to later annex other haciendas to the property,
such as Huari, Acocra, Punto, LAIVE and Ingahausi in the departments of Junín and
Huancavelica. Thus, since 1910 it has been characterized as the best food company in
Peru, providing its customers with excellent quality products.
The main activity of this society was the raising of sheep and cattle. From the first came
the production of wool, the company's main business; and the milk was extracted from the
cow only for the production of butter, which was the only thing that could be transported at
that time on donkey back to the markets of Huancayo and Lima. Thus, butter became the
first product marketed, first as the Olavegoya brothers' butter, then under the LAIVE brand.
Over the coming years, stallions were imported which improved the breed and productivity
of the cattle. Milk production increased and the production and marketing of matured
cheeses began. They were the 1930s and in 1958 they began to make processed cheeses
with matured cheeses. Also, over time, the new Yogurt, where an important development
was achieved in very particular circumstances: manufacturing dairy products without
having milk.
In the 1960s, land was purchased in the Ate district and the first machinery intended to
process farm products was later installed there. With the agrarian reform, the farms were
affected and the company decided to strengthen its industrial part in the city of Lima and in
1972 it inaugurated a modern dairy products processing plant in Lima that, in addition to
the processed cheese, butter and fresh cheese that was already produced, introduced
Yogurt.
In the 80s, the first plant was inaugurated in Arequipa to collect milk from that basin for
maturing cheeses. The cheeses Edam, Danbo, Gouda, Cuartirollo, Parmesan and
Mozarella are manufactured here. In the year 88, new products appeared at the Lima dairy
plant: manjar blanco and later cream of milk.
In 1991 LAIVE entered a new field of the Food industry with meat derivatives, initially
purchasing Sausage Switzerland, then the construction of a new and modern sausage
processing plant was approved. In this year, no longer having any work connection with
the center of the country, the company name was changed to LAIVE SA and the company
stopped being called Sociedad Ganadera del Centro SA. Likewise, the modern plant also
in Ate was inaugurated in 1995. , where a large amount of meat and sausages are
produced.
In 1997, LAIVE entered the market of ultra-pasteurized fresh milk and fresh lactose-free
milk packaged in boxes.3 , for which it builds a plant in Ate. Fruit juices are packaged in the
same plant and under the same process. The modern Majes plant in Arequipa is also
inaugurated with the purpose of collecting and evaporating the best fresh milk from the

3
Currently, it is packaged in Tetra Pak boxes and in PREPAC system bags, which allow the milk to be
preserved naturally and aseptically.

4
southern region of the country, which constitutes the main raw material for the products.
The plant has the capacity to process 250,000 liters of milk daily from more than 1,700
farmers and meets the highest quality standards.
In 1998, ultra-high pasteurized evaporated milk was launched in a new high-tech package
in a bag called Bolsitarro.
In 1999, LAIVE SA, ratifying its commitment to the well-being of the community, launched
the LA PREFERIDA brand on the market, with dairy and meat products of high nutritional
value.
In 2001, LAIVE SA entered a new stage of total quality and obtained HACCP quality
assurance certificates for all its plants. This certification is aimed at fully satisfying the
health demands imposed by the market and, above all, that the consumer requires for
effective protection of their health.
In 2002, to make the transportation and dispatch of its products more efficient, a modern
dispatch chamber was built at the Ate plant.
In 2005, LAIVE SA changed its Yogurt packaging, shaping its bottles and putting covers
on them. It also reformulated the content and concept of its yogurts, adding healthy
benefits such as probiotic cultures, launching its new line of BIO LAIVE Products on the
market. , the result of meticulous studies based on consumer needs, as well as research
and development of beneficial products for human consumption.
Following the line of prevention and good health foods, in 2006, the first probiotic
functional food on the market “Biodefensa” was launched on the market. Pasteurized,
whole, semi-skimmed and lactose-free evaporated milk is also beginning to be produced in
boxes.
In the following years, LAIVE continued with a sustained strategy of innovation in the
market, including its entry into the market for evaporated milk with added value, that is,
lactose-free, children's and omegas; and the launch of Yogurts with pieces of fruit and
dairy drinks aimed at the health and well-being of its consumers.
LAIVE reaches its centenary strengthened with an annualized sale of more than 100
million dollars and providing direct and indirect employment to more than 1,500 workers.

MISSION

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 “We are an efficient and innovative food company that provides its consumers with
guaranteed quality products and recognized brands, contributing to adequate nutrition in
homes. We are committed to being the best strategic partner for our suppliers and clients;
and for our shareholders an excellent alternative for profitability on invested capital. We
contribute to the growth of our collaborators and the well-being of the community by
operating with social responsibility.”

VISION
“To be a leading innovative company in healthy foods”

STRATEGY
The company has based its commercial strategy on product development. In this sense, it
has expanded its portfolio with presentations of Evaporated Milk of 410 grams, whole and
light, with the launches of Biodefensa and BioLaive Yogurts.
In addition, the company's management highlights the reinforcement of horizontal
distribution, both in Lima and in the provinces, and the installation of an ERP system, which
allows for greater efficiencies in various processes.

PERSPECTIVES
An improvement in the growth rate is projected, which will go hand in hand with greater
demand expected due to the growth of the economy. In addition, it will seek to obtain gains
in its market share, through greater innovation and quality in its products, which will lead to
reinforcing its investments.

SOCIAL ROLE
The greatest Social commitment is related to the great effort made to provide the best,
serious and responsible food through products.
The Company also has optimal relationships with its social environment, especially with
police stations and municipalities. Contributes and helps in works of social good, especially
those related to children. They collaborate with programs such as Fundades, Operación
Sonrisa, Anar, Bazar de Ayacucho, Niño Sano, Mercado de Pulgas.

ECOLOGY
Taking care of the environment is a constant in the work that LAIVE does. In general, you
are lucky to be a company that works with fresh, natural and non-polluting inputs, where the
processes in many cases are artisanal and help to better comply with the care of the
environment.
Thus, in 2010 an effort was made to change a large part of the energy from oil boilers to
gas.

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 YOUR PLANTS
Dairy Plant
The dairy plant located in Ate concentrates the manufacturing of
products such as Yogurt, Laive delicacy and fresh cheese. All of
these products are rigorously controlled to ensure quality,
freshness and nutritional value.

UHT plant
All the technology embodied in a modern plant, which ensures
the perfect condition and conservation of the product. UHT
(Ultra High Temperature) products are subjected to 145°
temperature for 3 seconds and are then aseptically packaged
in Tetra Pak and PREPAC containers.

Sausage Plant
The modern meat plant inaugurated in 1995 in Ate reaffirms the
company's commitment to providing excellent quality products.
Combining selected meats from the best suppliers, high
technology and rigorous quality control.

Arequipa Plant / Cheese Factory

Laive cheeses are manufactured in this plant, preserving the
tradition of manufacturing and natural maturation. In Arequipa,
all lines of ripening cheeses are processed and matured
naturally in their chambers. Parmesan, Dambo, Edam, Gouda,
black label Gouda, Santa Clara, Cuartirollo, Mozarella and the
Andean Majes and Characato.

Majes Plant / Collection

In Majes – Arequipa is the milk collector and evaporator, which
receives fresh milk from the best farmers in the region and
processes it with the highest standards of technology and
quality.

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 Laboratories of quality control
Laive cares about your well-being, that is why all our products
are under constant analysis and observation, guaranteeing the
perfect condition of our products. We have Laboratories for each
plant, both in Lima and Arequipa, all equipped with state-of-the-
art technology and specialized personnel.

Dispatch Cameras
Most of our products are fresh and need to be refrigerated to arrive at your home
in optimal conditions. That is why we have a modern refrigerated shipping
chamber that guarantees its conservation.

Cattle
The cows graze mainly in the fields of Arequipa and Majes.
LAIVE selects and works with more than 1,700 of the best
farmers in the region and they obtain the best fresh and natural
milk from their cows, which is the main raw material to
manufacture most of the products.
Likewise, the shareholders and directors of LAIVE feel proud to have committed the
collection of milk to suppliers in the Arequipa basin, since these investments made in the
South for collection, not only create sources of work but also They are decentralized and
generate wealth in the department.
In the 80s, due to decisions of the Peruvian State, 100% of the milk input used was
powdered and imported. Only about 10 years ago in Peru, national dairy production only
supplied 30% of the market. Today, almost all of the milk that LAIVE uses is Arequipeña.
Laive SA was the first company to implement a collection center and factory in the
irrigation of Majes. For this reason, the company is very proud that livestock farming has
developed, to the point of being today practically a self-sufficient country; and to be part of
the development of livestock farmers. Precisely due to the origin of the livestock partners
and the effort of national production, they have joined the "Buy from Peru" campaign, since
as more wealth is created, the range of product options, milk and dairy products will have
great potential in the country's diet.

Pig Cattle
Meats are purchased from model farms, helping to develop good practices on farms that
care about the cleanliness and quality of their breeds. The quality of their meat depends
on the improvement of the breeds. The animals are cared for to avoid diseases during
their growth and their diet is monitored.

Product innovation and development is a priority

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At LAIVE, consumer research and the search to create healthy foods with pleasant flavors
in containers and portions that they request, is the goal.
In the 100 years, technology has been the best companion in addition to saving original
processes and recipes with which we continue to work, trying to combine the original with
the modern and be at the forefront both in supplies that are purchased, for the most part.
national, in production machines-technicians, in product development ingredients-flavors,
in development of medical-food knowledge and aware of everything new in packaging that
protects food and provides convenience.
Thus, with technology, with the support of laboratories and production plants, food is
transformed into quality.
There are 5 production plants, 3 laboratories and a distribution center.
In Arequipa, all lines of ripening cheeses are processed and matured naturally in their
chambers. Parmesan, Dambo, Edam, Gouda, Black Label Gouda, Santa Clara,
Cuartirollo, Mozarella and the Andean Majes and Characato are also cut and packaged
there.
BIO LAIVE yogurts, the prestigious butter, fresh cheese and the classic processed cheese
are processed at the Lima Dairy plant. In Lima, all LAIVE milk lines are also packaged in
the Tetra Pak aseptic plant; fruit juices are processed and packaged in the same plant. All
of this is possible thanks to the modern help of laboratories that are essential in the control
of processes.
Finally, it should be noted that all plants are certified with HACCP and by DIGESA, which
is the national authority.

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 SWOT ANALYSIS

Strengths

1. Invest large sums of money in advertising.„X Pepsi¡¦s spend a lot of money on

advertising their new product through television, radio, internet, and billboards
2. Construction and implementation of modern infrastructure.
3. Product diversification: butter, cheeses, yogurts, milks, juices and sausages.

Weaknesses

1. „X The health issues are very big issues for Pepsi drink which contains a lot of
fat and sugar.Los problemas de salud son un gran problema para l amatoria de
bebidas de Pe La The health issue is a big problem for most of their products
due to their fat and sugar content that is harmful to the body.
2. sasregrgf„X Falling behind in International markets, namely Russia, Venezuela,
and South America.La odiseaLLack of leadership in market share in all its
product lines.
3. Low level of income, in relation to its closest competitor Gloria SA„X Pepsi
spend a lot of money on endorsement deal to pop stars but unfortunately most
of it was failure.
4. Little brand recall.„X Their promotions are only towards teen and not growing
generation who are the next generation.

Opportunities

1. The positioning and age of existing brands makes it difficult for new competitors
to enter, which benefits existing firms in this market.

2. E„X Besides Kentucky Fried Chicken and Pizza Hut, Pepsi should also merge to
sell their product in other country¡¦s local companies.Haccp, Digesa and ISO
9001 certifications.

3. ConstrucciCCConstruction of Training Room for 200 people

Threats

1. Strong competing companies.

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2. Yes• Pepsi is blamed for pesticide residues in their products in one of their
most promising emerging market eg in India sensitivity of the demand for their
products with respect to their prices.• Over 50 percent of the company's sales
come from Frito-Lay; this is a threat if the market takes a downturn

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 HUMAN RESOURCES FUNCTIONS

The company has a functional Organization, each area has a representative who is the Area
Manager and its sub-areas. Thus, in the structure of the organization, the areas and personnel in
charge are already established. In addition, HR has the corresponding information on the
description of each job position and the functions of the staff. Likewise, there is a profile for each
position and as the company grows, the creation of new positions is evaluated according to the
requirements of each work area.

The integration task is initially carried out by HR personnel through the recruitment, selection, hiring
and induction procedures of personnel, to cover vacant or new positions with competent personnel
from the company or new ones executing the induction to the position.

DATABASE

At Laive SA, a database is used that is controlled by the ERP – SAP system in a hierarchical
manner because it is divided according to the company's activities, to which only the personnel
corresponding to said activity have access. All entry and cancellation activities, whether of clients,
orders, products, operators, raw materials, billing, etc., are carried out through the ERP – SAP
system, storing all the information in the database that is hosted on the server. Likewise, a backup
of all the information is made, ensuring the work carried out against any unforeseen event or
accident that may occur, these are stored on DVDs. Through the network, all users are integrated
and related at the different points where a PC is located, because the information entered will be
used by the different areas through consultations, analysis, review, control, etc.

The database used is of an operational type, because it stores information that is used through
production processes, it also allows monitoring, controlling and maintaining inventories, it also has
customer information and HR maintains a base of all the Laive SA workers.
 COMPANY STAFF
The number of personnel employed by LAIVE SA is 1,784 people, as of December 31, 2014, made
up of 23 officials, 772 employees, 146 workers at the Lima Plant; 1 official, 53 employees and 27
workers at the Arequipa Plant and 45 employees and 2 workers at the Milk Collection Center in
Majes. We have 15 Professional interns and 11 Senati apprentices. Additionally, we have 689
outsourced workers through specialized companies nationwide.

Modality of contracting 2013(*) 2014(*) Difference

Officials 23 24 1
Employees 1443 1574 131
Permanent 727 837 110
Hired 40 33 -7
Outsourced 664 689 25
Interns 12 15 3
Operators 267 186 -81
Permanent 66 59 -7
Hired 191 116 75
Outsourced 0 0 0
Senati 10 11 1
Total 1733 1784 51

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Organization chart