INTRODUCTION
Milk is widely consumed in Australia with the average Australian drinking 105 litres a milk every year (Dairy Australia, 2015). In many Asian countries and specifically China, milk is currently reserved for; babies, elderly and the wealthy and is not a staple food item like it is in Australia (Hubble, 2013). Benson Murray Goulburn is an Australian milk producer who is Australia’s largest exporter of milk. The business development director is considering expanding the company by entering into a joint venture with a local Chinese milk producer. It is important to consider important factors such as;
• Is China a viable country to enter into
• Which company to enter a joint venture with
• What dairy based product would likely earn the most profits
• What lessons can be learnt from other international business that have failed in the Chinese market
• What province would be most beneficially to have the business headquarters in
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In 2006, dairy consumption reached 19 million tonnes however per capita consumption is still relatively low at only 42 grams of dairy products drunk in a day. This level is considerably lower than the world average (270 grams a day) and Asian average (140) (Debnam and Stanley, 2008). The industry is constantly growing with an average growth rate of 10% has occurred every year since 2003. Two leading reasons why China’s per capita consumption of milk is still relatively low are, its large population and the large number of Chinese people living below the poverty line (200 million people) (Laccino, 2014). The average price of for 1L of is milk 12.88 Chinese Yuan ($2.69 AUD) (Numbeo,2016) which shows that the large number of people who live behind the line of poverty would be unable to afford to buy milk and therefore is an indicator as to why the daily consumptions levels are so
Hatcher Family Dairy was established in 1831 and the Hatcher’s have been milking cows ever since. Throughout most of Hatcher Family Dairy’s history, milk produced on the farm was sold to a milk cooperative owned by farmers. The milk cooperative would transport the Hatcher’s raw milk from the farm to a processing plant where it was processed along with milk from other farms. Ultimately, all the milk processed by the milk cooperative comingled and was sold under various brand names to groceries stores.
From a financial and marketing standpoint, the effects have been catastrophic. In some areas, milk production has decreased by an average of two liters daily and calving index (efficiency at which new calves are produced) went down by an average of twenty days (Davies NP). Th...
Milk: Does the body good. That?s about as much as I knew. As a somewhat, well, I?ll admit it- ignorant consumer- I simply thought that milk in the super market came from, well? a big long row of cows somewhere. Oh, how I was wrong! When we were given an assignment to defetishize something, I realized my ignorance and decided to find out the truth about Dairyland Milk, my milk of choice. This paper is my journey from my small Kitsilano apartment building to the cow that potentially produced my milk in an effort to think of milk not only as an easily available healthy drink, but as an embedded set of geographical and social processes. Much to my astonishment, the production of milk involves much more than just the udder.
The article also give snap shot of the foreign companies who misjudge the Chinese culture, competition, size the market, and some other factors, have been badly affected by investing in china.
When you hear about milk, you may be expecting to hear about how it “builds strong bones” and has a “good source of calcium.” Only today, I’ll be discussing the ways milk harms us and why we should stop drinking it. Milk is very damaging to us all and we should definitely try our best to stop drinking it. My goal here is to coax you and everyone to stop having milk and dairy products and start looking at all the things it does to you. Today I’d like to tell you about how milk hurts us and why we should avoid it as much as possible. I hope this is taken into consideration and you stop drinking milk.
... The routine conversation that is usually conducted when we gather together is concerning the inflated price of milk of which has transpired within the last ten years. With possessing a small child the need for the consumption of milk is not considered an optional luxury but a necessary commodity for small children and their overall development. With inflated prices on necessary commodities, such as milk, for many young families produces an enormous financial burden with monthly demands of milk. Dealing with this issue of inflation is an extremely difficult issue to bring a conclusive solution towards however, the article makes a good point in sharing that there is a vital need to reexamine the present system.
Dierkes Meinolf from New York, Oxford University is an author of various books. In this book, the author stresses on the learning strategies and process of Chinese firms. He argues that the success of the Chinese firms is because of implementation of good organizational and learning knowledge. The Chinese government is well connected to the global market that makes its economy to grow due to the different innovations and qualitative improvement of the existing manufacturing firms. The area where the Chinese economy has improved is on the manufacturing and processing sectors where they range higher than the Americans.
The current Production Capacity is Low to face the upcoming competition-The dairy currently produces 10000 liters of milk per day even after 30 years of presence in the market. This will certainly affect the chances to take advantage of the current growing market and to manage the consumption cycles of the industry. The question of whether to decide on the expansion of production capacity: With an incredible growth expected in the industry, the issue that the management faces now is, whether to increase the production capacity or not. This is very much needed as the expansion of production capacity will equip the company to supply and cater to the demand as well as attain economies of scale, which can be used as a competitive advantage against the new entrants. However, this calls for capital investments on the assets required for expansion.
DuPuis, E. Melanie. Nature's Perfect Food: How Milk Became America's Drink. New York: New York University Press, 2002. Print.
Hill, C., Wee, C. and Udayasankar, K. 2012.International Business:An Asian Perspective. 8th ed. Singapore: McGraw-Hill.
The Melamine Milk Crisis pertains to a Chinese milk contamination, which affected thousands of infants causing hospitalization or in some cases death (Crandall, Parnell, & Spillan, 2014). Furthermore, melamine is product used in the production of plastics and laminates, and when added to milk melamine increases the overall protein content contained in the milk (Crandall, Parnell, & Spillan, 2014). Consequently, melamine is and dangerous and illegal in milk products, because through consumption melamine can cause kidney stones and renal failure (Crandall, Parnell, & Spillan, 2014). Therefore, in 2008, some Chinese milk distributors were diluting milk and adding melamine to extend the product usage, and the enhanced protein content demanded higher retail value (Crandall, Parnell, & Spillan, 2014).
Over the last 30 years the world has seen drastic changes in the Chinese way of making business. Nowadays, China has opened its businesses to the rest of the world, especially America and Europe (Teagarden & Cai, 2009). As a result, their economy has increased and the evolution of the companies have changed to be from closed doors to be international and multinational (Teagarden & Cai, 2009). This essay will analyze, first of all, how some Chinese companies have had success abroad, looking at the strategy that they applied to expand and to improve their products. Furthermore, this essay will show examples of successful Chinese firms, such as Lenovo and TCL Group, and how they achieve it.
Since its inception in 2001, Fonterra Co-Operative Group Limited (Fonterra), the largest company in New Zealand, has grown to be the world’s 4th largest dairy company in 2013 (Robobank, 2013). Fonterra is the largest dairy exporter of the world and it controls a third of global dairy exports. Fonterra has huge pool of talents of 16,000 staff locally and internationally to make dairy available every day to millions of consumers ...
China's development is praised by the whole world. Its developments are not only in the economic aspect, but as well in its foreign affairs. Compared with other developed countries, China is a relatively young country. It began constructing itself in 1949. After 30 years of growth, company ownership had experienced unprecedented changes. Entirely, non-state-owned companies can now be more involved in sectors that used to be monopolized by state-owned companies.
The packaged milk category was originated in 1981 by (quaintly named) Milk Pak, which pioneered tetra pack milk in Pakistan. The supply chain involved collecting milk from rural areas across Punjab, processing the milk through UHT (Ultra-High Temperature Processing) treatment, and selling it to consumers in uniquely colored triangular and rectangular packs designed to prolong the milk’s quality. Milk Pak’s “Milk Packs” were very well-received and the brand soon became synonymous with quality milk. Its first real competition came in the form of Haleeb, which introduced distinctively blue tetra packs to the market in 1986.