Premium Essay

Arla Foods Case

In:

Submitted By astanle4
Words 375
Pages 2
1. What are the major societal issues or tensions that are raised by this case?
The major societal issues/tensions raised in this case involve the boycott of Danish products encouraged by the OIC and the bad image that danish products had in middle eastern countries. Also, Arla employees were being harassed and needed additional security escorts. The rapid deterioration in relations between Denmark and the Middle East, with Arla losing $1.5 M per day due to 50,000 stores banning their products. Consequently due to the major drop in sales they had to make some layoffs. Arla needed to decided how to communicate with those consumers who felt offended, while determining what kind of political or non political stance they were going to take so that their business had a chance to recover.

What stakeholders does Arla need to consider in developing a crisis management plan?
Arla could consider reaching out to the local state officials in Denmark. If they become aware of how badly the issue is effecting business for Arla and other products created in Denmark, they may take action because this ultimately can hurt Denmark’s economic state and increase unemployment. Also, they need to consider the supermarket chains and consumers in Saudi Arabia. They have built a positive, long standing relationship with them that Arla believes that authorities began to consider them as a local dairy.

What should Arla do?
It may be beneficial for Arla to create a public message or statement, concerning their disassociation with the local newspaper ads and how their product are not a reflection of Denmark’s local media. The consumers need to be aware that Arla’s products are in no way tied to these matters and they do not support them in any way. They should be careful doing this without tainting the image of Denmark like other European companies have done. They should also make

Similar Documents

Premium Essay

Arla Food

...13 Arla Food Set Industry Assignment 2 Bayarsaikhan Oyunjargal Contents Introduction 3 Critical Success factors 3 Bowman’s Strategic Clock 4 Key Resources and Competences 5 Ansoff Matrix 7 Conclusion 9 References 9 Introduction Arla food is dairy company, operating in local and global markets. The home markets are in Denmak, UK and Sweden. Arla food is owned by Danish and Swedish dairy farmers. It is also a supplier for variety of dairy products to the Northern European and United Kingdom market.( Arla Foods, 2013) Very well known brands such as Arla, Lurpark and Castello are present in 100 countries. Arla Food has over 18 000 employees. Has democratic structure in the company, makes sure everyone’s voice is heard. Yearly, approximately 3.2 billion of liters of milk collected. According to the Arla foods site (Arla Foods, 2013) “Arla’s milk pool is made up of three groups, Arla Milk Link, Arla Foods Milk Partnership (AFMP) and Arla Milk Link directs.” It is important to mention that Arla controls the value chain, fully and thus produced milk by farmers are sold or turned to another dairy product, which then are sold to global market. Critical Success factors Arla Foods had it big success for the past five years due to following factors and focuses. First of all, the origin country is Denmark. Denmark according to (World Bank, 2012) is 14th country in terms of DGP and being the wealthy and developed country, it has a high purchasing power. As Arla...

Words: 2229 - Pages: 9

Premium Essay

Dano

...influential strategy for any business. We can mention ‘pricing strategy’ is the heart of overall business strategy of DANO milk powder. On the other hand, at the very beginning of job, I was working actually with the marketing strategy (pricing policy, Distribution & Logistics policy) of DANO milk Powder. So, in this report I have prefaced all possible factors related with marketing, financing, economy, production (Packaging) etc. As Arla Foods Ingredients, Bangladesh can get actual picture of milk powder market and also can get real orientation about pricing policy as well as other policy. So far, I have tried to give a target from product market to reach it to final buyers. In the report, I have put up a proposal about DANO milk powder, product design, marketing of DANO milk powder, financial analysis, competitive current marketing strategy, Ad. & trade promotional opportunities, market segmentation, pricing strategy with the compare of competitors, opinions & suggestions from field survey, and other related factors. So, I think Arla Foods Ingredients, Bangladesh will get a thorough scenario of milk powder market of Bangladesh and will get the effective...

Words: 17500 - Pages: 70

Premium Essay

Arla Foods

...1. Arla Foods acted upon the abolishment of the milk quota by the European Union. Janus Skot, the senior director of Arla Foods Latin America and the Caribbean (LATAM), was attempting to build a competitive advantage in Latin America because of their milk deficit. Janus was slowly accomplishing his business goals by developing a strategy to work with local partners to integrate into local retail chains. Janus could not do this by himself; he had a team supporting him. Janus received his MBA from Denmark and held many positions in various Danish firms. He began working for Arla as an export manager and after work a few different international positions; he branched off into his own international distribution market known as LATAM. Other European professionals that were well versed in international trade supported him. Beret Jeanette Haven Andersen and Lars Tang Mikkelsen were two of these people. Arla Food has an ethnocentric orientation because they only employed European professionals in the key positions. “An ethnocentric company operates under the assumption that tried and true headquarters’ knowledge and organizational capabilities can be applied in other parts of the world” (Keegan 17). This is seen when Janus hired other European graduates to fill his key positions. They easily filled those positions because they had the proper credentials and educational history that Janus needed. Although the company is mainly ethnocentric, they have an advantage...

Words: 1629 - Pages: 7

Free Essay

Asdxzcz Asdasdzx

...PA R T B go online Go online to to find more case studies. CASE STUDY B Crisis management in international markets: ‘least said, soonest mended?’ John Knight, Department of Marketing, University of Otago and Bradley Mitchell, Inveratek Group Ltd 347 BACKGROUND An inevitable reality of doing business in the modern world is that crises recognise no boundaries (Fink 1986). A crisis management strategy needs to be part of the overall corporate strategy of any company operating internationally. Our chaotic times have led to some spectacular commercial crises. Sometimes these have been of companies’ own making through carelessness. A well-known example is the action of McDonald’s in promoting its sponsorship of the 1994 football World Cup by printing the flags of all competing nations on disposable packaging: the name of Allah is on the Saudi flag, and deep offence was caused by the fact that this was to be thrown away with the packaging (Starrett 1995). At other times crises have been caused by events completely outside of the control of the company. Examples of the latter include the deliberate product tampering of Tylenol products, leading to deaths by poisoning in the USA, and the massive product recall of Coca-Cola products in Belgium resulting from what appears to be a case of mass hysteria (Johnson and Peppas 2003). Furthermore, companies in the midst of a crisis may not be able to control the behaviour of others, but with proper planning and management the...

Words: 4074 - Pages: 17

Premium Essay

Jeena Jdei

...1800 the first diary cooperative was found and trough 1900 the cheese engineering and producing developed to the today’s applicable high industry level (Yiva Ardo). In 1999 the Arla foods diary company was founded (Yiva Ardo), which today is the largest diary company in the Europe (William Reed) ‘and it commands 51% value share’ (Euro Monitor) of Danish cheese market the rest of market share is saturated with thirty smaller diary companies (Danish Agriculture & Food Council). The Danish cheese market is marketed by domestic diary production, imported cheese and dairy products measures approximately 25% of domestic consumption, on the other hand the value of the dairy export totals to EUR 1.8 billion annually (Danish Agriculture & Food Council). As the EU cheese market including Danish market stepped in a mature life cycle, the activities became more competitive and volatile; the main task of current players should be to consolidate current market positions (The Diary Site), on the other hand the maturity of the cheese market and high volume production, demanded a structure change in milk production sector as well, from many mid-small sized farms the market was restructured to small number of large farmers. The growth of market and the changes in trends pursuing healthy life style the Danish food regulatory body submitted the tax filling on cheese ‘to be in line with other unhealthy consumer products like alcohol and tobacco’...

Words: 1361 - Pages: 6

Premium Essay

Variance Method

...Rev. DAVID A. PALMER BA (Financial Control) FCA CTA MCIPD David is an experienced financial professional who has devoted his skills to management training in practical understanding and utilisation of financial information. A Graduate, Chartered Accountant, and Associate of the Institute of Taxation, he is also a Member of the Chartered Institute of Personnel and Development and has been an Ordained as a Deacon in the Catholic Church. He has worked as a Financial Controller and Company Secretary in the Finance industry and as a Director of Finance and Administration in the Computer Services industry. Since 1990 he has conducted management development programmes for over forty major organisations including Arla Foods, Blue Circle, BP, CSC Computer Sciences, Conoco, Ernst & Young, Lloyds Bowmaker, Royal Mail, Unilever and Zeneca. He also runs programmes for the Leadership Foundation and the management teams at a number of Universities. International training experience includes work in Belgium and Holland for CSC, in Denmark, Kenya and the Czech Republic for Unilever, in Holland and the US for Zeneca, in Dubai for Al Atheer, in Bahrain and Saudi Arabia for Cable & Wireless. He specialises in programmes in financial management for both tactical and strategic decision making. In addition he has run courses in acquisition evaluation (The Economist, Eversheds, Blue Circle and Hays Chemicals) and in post-acquisition management (Unilever). All training is specifically...

Words: 458 - Pages: 2

Premium Essay

Electrical Engineer

...(GSB) – Cairo Master in Business Administration (MBA) Case Study in Economics Material Lecturer Dr. Doaa M. Salman Prepared By Ismail Abdel Maaboud Elghoul Mahmoud Abdel Maaboud Elghoul Tamer Emam (MBA Students) March 2013 Contents 1. Introduction Page-03 2. Market Volume Page-03 3. Market Share Page-03 4. Market Type Page-05 5. Company Portfolio Page-06 6. Company Products Page-07 7. Factors affect Supply. Page-07 8. Factors affect Demad. Page 07 9. Sales trend Page-08 10. Supply, Demand and Elasticity Page-08 11. Conclusion Page-08 12. References Page-08 ? Introduction: This Paper is a presentation for a real company economic analysis in regard with the market and the company portfolio as well as the factors affecting both of supply and demand product quantities. Also, in this presentation we will go through cases of elasticity in the relations between all of product price, supply and demand quantities. The subject company in this presentation is Almarai Company that produces Dairy liquid, Yoghurts & Desserts, Foods, Juices, Bakery Poultry and Infant Formula. Almarai Company is based in KSA; however it is considered...

Words: 1658 - Pages: 7

Free Essay

Ups Smart Systems

...around the World. Smart Labels USA is the biggest global event uniquely drawing Executive Level Representatives from the LABEL, PRINTING, PACKAGING, CONVERTING and USER market, teaching; RFID impact on businesses across a wide range of applications such as retail, manufacturing, healthcare, airlines and airports, passenger transport, archiving… RFID implementation – experience from the experts Manufacturing RFID smart labels Cutting edge RFID smart label technologies RFID Market growth – what’s in it for you? In 2006, almost three times the volume of RFID tags will be sold than over the previous 60 years since their invention. Primarily this will be because retailers and military forces are demanding that suppliers fit tags to pallets and cases to save cost and improve service but many other applications will be growing very rapidly. This exponential growth will continue and by 2015, the value of sales of RFID tags will have increased...

Words: 1276 - Pages: 6

Premium Essay

Unit 9 – P3 – M2 Business Lvl3

...Unit 9 – P3 – M2 This assignment will describe the role of advertising agencies and the media in development of a promotional campaign. P3: An advertisement agency is a service that is dedicated to creating, planning and handling advertisement and other forms of promotion for its clients. The President (CEO): The CEO is the main chairman of the company, usually the person who founded the company. Account services: In this particular campaign the Agency appointed the account executive to liaise with the clients. The account executives need to be sufficiently aware of the client's needs and desires that can be instructed to the agency's personnel and should get approval from the clients on the agency's recommendations to the clients. The account manager will develop a creative brief, usually about a page that gives direction to the creative team. The creative brief often includes information about the target audience and their attitudes and behaviours. The creative team will take the brief and, aware of their parameters; develop original copy and graphics depending on media strategy. Media Services: In this particular campaign the media services department may not be so well known, but its employees are the people who have contacts with the suppliers of various creative media. For example, they advised upon and negotiate with printers because the agency is producing flyers for the client. However, when dealing with the major media (broadcast media, outdoor, and the press)...

Words: 1381 - Pages: 6

Premium Essay

Aaaaaaaaaaaaaaaaaaaaaaaaaaaaa

...INTRODUCTION Mengniu CASE STUDY 2 Mrs Zhang’s farmyard, cows, and watchdog. Founded in 1999, Mengniu Group (Mengniu) has grown rapidly to become the leading dairy product manufacturer in China. Its principal products are liquid milk (UHT milk,1 milk beverages, and yogurt), ice cream, and other dairy products such as milk powder, milk tea powder, and tablets. Mengniu has overtaken its long-established state-owned rivals through dedication to quality and innovation in all aspects of its business, including marketing, governance, and aggressive adoption of international quality and best practice standards. CDH China Fund, an IFC investee private equity fund, invested in Mengniu in 2002. Mengniu went public in 2004 and trades on the Hong Kong exchange. This sustainable business case study focuses on Mengniu’s commitment to: ■ Its supply chain, consisting of independent small farmers ■ Adoption and implementation of internationally accepted management, systems for quality assurance, environmental management, and worker health and safety ■ Its employees and the creation of a safe and desirable workplace (recognized in 2005 as one of the 20 best places to work in China based on the “Happy Workplace” index) ■ Continuing improvement and innovation through joint ventures and use of state-of-the-art equipment. 1. Ultra-high-temperature (UHT) pasteurized milk does not require refrigeration, thereby providing extended nonrefrigerated shelf life of up to nine months and simplifying...

Words: 2884 - Pages: 12

Premium Essay

What

...Niels Laasholdt Steen Sloth Gitte Størup Marianne Poulsen BUSINESS ECONOMICS – AN INTRODUCTORY CASEBOOK FOR THE COMMERCIAL UPPER-SECONDARY COURSE (HHX) 1 BUSINESS ECONOMICS – an introductory casebook for the commercial upper-secondary course (HHX) © 2005 the authors and Systime A/S Copying from this book is only permitted subject to agreement between Copy-Dan and the Danish Ministry of Education. External editing: Knud Erik Bang Cover: Valentin Design Typeface: Adobe Garamond Pro 11/14 Graphical layout and production: Valentin Design 1st edition, 1st impression ISBN 87-616-1304-5 Skt. Pauls Gade 25 DK-8000 Århus C Tlf. (+45) 70 12 11 00 www.systime.dk Table of contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 1. Companies and their context . . . . . . . . . . . . . . . 1.1 Introduction . . . . . . . . . . . . . . . . . . . . . 1.1.1 The national economy . . . . . . . . . . . . . 1.1.2 Business economics. . . . . . . . . . . . . . . 1.1.3 Private finances . . . . . . . . . . . . . . . . . 1.1.4 The content of this textbook . . . . . . . . . . 1.2 What is a company? . . . . . . . . . . . . . . . . . 1.3 Types of company. . . . . . . . . . . . . . . . . . . 1.3.1 Production companies . . . . . . . . . . . . . 1.3.2 Trading companies . . . . . . . . . . . . . . . 1.3.3 Service companies . . . . . . . . . . . . . . . 1.4 Company functions. . . . . . . . . . . . . . . . . . 1.4.1 Functions in a trading company . ....

Words: 48419 - Pages: 194

Free Essay

Al Ain

...into (options include related lines like cheese); assets they need to acquire (manufacturing); and what future skills they need to develop to meet the regional challenge. There is a three to four year time frame to prioritise these objectives as the markets are still in recession. Shashi says about their vision for the future: S We are very much a local company and would like to be seen as regional at least in the Khaleej [GCC Countries], if not beyond . . . With the introduction of long-life juice, the whole world is a market for us because these products have a shelf life of nine months and unlike fresh products we don’t have limitations on time. Al Ain Dairy: a Government of UAE initiative Catering to local demand This case was written by Dr Melodena Stephens Balakrishnan at University of Wollongong in Dubai. It was prepared...

Words: 3605 - Pages: 15

Free Essay

Premier Foods

...Introduction Premier Foods is a renowned name in UK food manufacturing industry that has several market leading brands under its umbrella producing Items of Bakery, Desserts, Instant Meals, Sauces and variety of other categories. Over the period of time, they acquired several brands in order to expand their customer base and revenue. For the sake of operating effectiveness, the business is categorized in two layers “Groceries” and “Hovis”. Groceries division handle the entire groceries market and thus responsible for nearly a market share of 6.8%. Hovis handles the bakery division with its strong influence in the Bread market. Premier foods is in a downward projectile growth with excessive debt and started to lose its position as a market leader, reasons behind that shall be discussed by showing the financial history for Premier Foods and suggest strategies that Premier Foods need to implement in order to enhance its revenues and position in market. Premier Foods Background The company was founded in 1981 when Hillsdown Holdings purchased Lockwood’s Foods. Then named as Hillsdown Ltd. The company dealt with canning fruit and vegetables and carbonated drinks. In 1983 Hillsdown Ltd. acquired TKM Foods including Smedley’s canned and frozen fruit and vegetables. In 1985 they acquired meat canning of Robert Wilson. In 1986 they acquired John Morell & Co Ltd. who was into the fruit and vegetable canning as well and also had pet food business at Bardney, Lincs. This factory...

Words: 3820 - Pages: 16

Premium Essay

Re Evaluating Tesco Beef Supply Chain

...Introduction Strategic Supply Chain Management At Tesco Commerce Essay Tesco plc is a UK multinational with diversified retail operations in 14 countries in Europe, America and Asia. Tesco is the 3rd largest retailer in the world with £ 62.5 billion sales in 2009, having 4811 stores worldwide and 472000 employees. The core business is grocery items and main market is UK with c70 % of total annual sales. Tesco offers more than 70000 food and non food products and services by using different store formats as shown below in the diagram. The diagram shows different type of store formats and product and services offered by each format. The above complex structure makes supply chain operations even more complex to manage. This paper attempts to explore how the complex supply chain is managed at Tesco and looks at different supply chain practices implemented by Tesco. The paper discusses the supply integration practices adopted in the industry and looks at Tesco’s approach towards integrating the supply chain. Finally, the paper suggests some recommendation for improving Tesco supply chain. 2 Tesco Supply Chain Analysis Supply chain has been defined by many authors in different ways; in the context of Tesco’s supply chain the definition given by Stevens is most appropriate: “A system whose constituent parts include material suppliers, production facilities, distribution services and customer linked together via a feed forward of materials and the feedback of information”(Stevens...

Words: 4003 - Pages: 17

Premium Essay

Starbucks

...Starbucks Corporation Table of Contents Introduction Organizational Goals Symptoms of the Problem Diagnosis of the Problem SWOT Analysis Recommendations I. Introduction: In 1971, in Seattle, Washington, three entrepreneurs started the Starbucks Corporation. The primary business at this time was the selling of premium whole bean coffee in a single Seattle store. At the time, coffee consumption in the U.S. was on the decline and market dominance was established by the large supermarket brands. However, companies such as Starbucks, who began selling high quality specialty coffee, began to establish a following of loyal coffee enthusiasts. This niche market enabled Starbucks to expand into five stores that sold coffee beans, a roasting facility, and a wholesale business that served local restaurants. At this time, Starbucks did not serve coffee and would not be recognized as the company they are today. In 1982, Howard Schultz joined the organization as the manager of retail marketing and attempted to implement new ideas and a new business model for the organization. Schultz was inspired by the Espresso bars of Europe and saw the potential for establishing this type of European coffee culture in the U.S. market. Schultz’s idea was soundly rejected by the original owners and he left the organization and established a chain of coffee houses, themed after Italian café’s and they sold brewed Starbucks coffee. In 1987, Schultz bought Starbucks from the...

Words: 6385 - Pages: 26