Assessment 1 Case study

This case study assesses the dairy industry in Australia, Bega Cheese's current position in the market, strategy, competitive advantage, and available options. It recommends that the company focus on innovation, advertising, and entering new market segments to diversify its product market and reduce risk.

Case Study

Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
Assessment of the industry..........................................................................................................1
Assessment of Bega.....................................................................................................................1
Current position in the market.....................................................................................................2
Strategy........................................................................................................................................4
Competitive advantage................................................................................................................5
Available options.........................................................................................................................5
Recommendations........................................................................................................................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Bega Cheese is one of the Australian company which provides diversified foods and has
manufacturing site in New South Wales, Victoria and Queensland. It was founded in the 1899 in
Australia. It is a company which was found as an Agricultural cooperatives in the torn of Bega
(Alieinykov, and et. al., 2019. ). It is a dairy supply company which provide dairy products to its
customers. This project report includes assessment of assessment of the industry and company. It
also includes the analysis of current competitive position in the marketplace. Moreover, it
includes strategy adopted by company, competitive advantages, available options and final
recommendations for the company.
MAIN BODY
Assessment of the industry
Daily industry is one of the rural industries in Australia as it is getting huge growth in the
Australia. It is a company that is producing around 8.8 billion of milk in the year 22018 to 2019.
It is an industry that is creating employment opportunities to many people as it has generated
employment for around 46,200 people of Australia It is the fourth largest industry of the
Australia in terms of its values. It is generating around $4.4 billion through farm gate values in
the year 2018 to 2019. In this industry, the majority of milk is produced in the southeast seaboard
in Victoria, Tasmania as well as New South Wales. It is an industry that is exporting its 35% of
the milk production which is creating a value of 3.2 billion during the year 2018 to 2019. It is
one of the larger proportions of exports in the form of value addition of the products like butter,
milk powders, ultra-heat-treated milk and cheese. Dairy produce produced in Australia is
produced by this country in all over the world (Barney, 2020). It is one of the industries which is
providing various opportunities for purpose of Bega cheese which is offering dairy products to
its consumer. It is a company that is producing high-quality products to its customers and the
growth of the dairy industry creates an opportunity for this business.
Assessment of Bega
Bega is an Australian Company which is offering diversified food to its customers it was
established in the 1899 as an agriculture cooperative in Australia. It is a company that goes
public in the year 2011 and was also listed in the Australian Securities Exchange. It is a company
that has sale its half of share to the public and is considered a publicly traded company. It is a
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company that is considered as one of the largest companies in the Dairy Sector of Australia. It is
a company which is earning revenue of A$1,493,219,000 (2020), A$1,419,952,000 (2019). It is
also earning operating income of A$102,992,000 (2020), A$104,867,000 (2019). It is a company
which has another subsidiary company name as Bega Dairy and Drinks. Half of the overall profit
of the company is comes from dairy consumer goods and other groceries, spreads and also its
flagship of Bega Brand holding which is the 15.7% of the Australian retail cheese market. There
are some other brands of Bega Cheese including Vegemite, Tatura, Zoosh, Farmers Table, Dairy
Mont and other which is a major consumers as well as food packaged goods brand.
Current position in the market
In order to analyse the current position in the marketplace, managers of the company need to
conduct different steps. An explanation of these steps in the context of Bega Cheese is mentioned
below:
Strategic issues:
There are different types of strategic issues to be faced by companies that create impact on the
performance of the company. These issues create a negative impact over the position of the
company as well as its operation in the marketplace (Bell and et. al., 2018). Bega Cheese is
facing strategic issues like increasing competition and changes in trends in the market. It is one
of the important strategic issues which create a negative impact over the performance of the
company.
Environmental analysis
For purpose of identification of the competitive position of the company, business managers of
Bega Cheese need to conduct an environmental analysis which helps them to identify factors that
create a negative impact on the business. An explanation of PEST analysis in the context of Bega
Cheese is mentioned below:
 Political Factors: Dairy industry is providing growth to the economy of Australia due to
which government of the Australia is providing support to dairy companies. It is
important for businesses for the purpose of getting growth. For this, government of the
country is also giving subsidies and tax benefits to dairy product company (Fonseca,
Abreu and Silvestre, 2021).
 Economic Factors: It is also an important factor for the company as it will create impact
over the cost of the company. Australia is one of developed country which has proper
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resources and tools that allow company to produce goods in effective manner and also
helps them to saves their cost to transport the effective resources.
 Social Factors: Dairy product is in demand among people as due to covid-19, the focus
of people is shifted to healthy diets and other things. It is also important for the company
to take advantage of increased demand in the marketplace.
 Technological Factors: As Australia is a developed country, it has advanced technology
which will increase the productivity of the company. Increasing use of technology also
creates threats like a failure of machines, data breaching and others.
Competitive analysis: There are a number of competitors in the market of the UK which will
create impact over the market share and profitability of the company (Khosiev and et. al., 2019).
There are number of competitors are present in Australia who are competing with the Bega
Cheese. These players includes Dari gold, Yili, Tine and others. Bega Cheese is competing its
product by offering higher level of quality in the marketplace.
SWOT
Strength Weakness
Bega Cheese has successful records in the
market place in context to new product
development as well as product innovation.
It is a company which is getting good return in
the market over the capital expenditure.
It has a company which has highly successful
in the marketplace on basis of its marketing
strategies.
The new contribution and profitability ratio of
Bega Cheese is below the average in
comparison to its industry.
It is bearing higher daily inventories which
creates problems for the business.
Investment of companies in research and
development is lower in comparison to other
companies which does not allow them to bring
innovation (Kumar, Pandey and Mukherjee,
2021).
Opportunity Threats
The new taxation policy of the government is
creating a positive impact over the ways in
which business is conducted. It allows Bega
Cheese to increase the profitability of the
company.
There is different new environmental
regulation in the Australia that create impact
for purpose of existing categories of the
product.
There is a lack of innovation in their
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Decreasing the transportation cost of the
company will also provide them the
opportunity for purpose of decreasing the cost
of the company.
organisation that will create a huge threat for
business to complete in the marketing
environment.
Customer segment
STP analysis is one of the organisations which is important for businesses in order to identify the
target customers. It is important for businesses for purpose of identification of the right segment,
target and positioning of the company. Explanation of these components helps business of Bega
Cheese for purpose of identification of the right segment is mentioned below:
 Segmentation: Bega cheese is segmenting customers on basis of geographic
segmentation (Makadok, Burton and Barney, 2018).
 Targeting: It is selecting segments on basis of marketing share, growth opportunities and
profitability of the company.
 Positioning: Bega Cheese is also focusing on developing functional positioning in the
marketplace which allows them to solve solutions to the problem faced by consumers.
Strategy
Porters generic strategies is another strategies which is important for business for purpose of in
order to gain competitive advantages and also to overcome of threat. Explanation of these Porters
generic strategies in context to Bega Cheese is mentioned below:
 Cost leadership: it is a strategy in which a business needs to focus on the reduction of the
cost of the company. It is also important for the company for purpose of in order to take
cost advantage and also to increase the profitability of the company.
 Differentiation: In this strategy, the business of business on the research and development
which allow them to differentiate their products from others. It is also important for
businesses for purpose of introducing new in the marketplace (Newburry, Deephouse and
Gardberg, 2019).
 Focus strategy: It is another strategy in which focus of business on a niche market which
is important for them in order to meet the requirement of the specific market. In this,
focus on business in on cost focus and differentiation focus strategies.
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On basis of above discussion, it can be analysed that Bega Cheese should be a differentiation
strategy in their organisation. It is important for business for purpose of overcome of competition
and also to get success in the marketplace.
Competitive advantage
 In order to gain competitive advantage Bega Cheese will adopt differentiation strategy. It
helps the company to be different from others and also helps to differentiate its offering
from others. It helps the company to offer good quality products which eventually helps
in good profit margin and all the things helps in maintaining the healthy client
relationship.
 Bega Cheese will hire skilled labour to get a competitive advantage. It helps the company
to complete his task in the given time which eventually reduces the workload and also
helps in the quality of the products generated, which creates a positive impact on the
stack holders towards the company (Pfarrer and et. al., 2019).
 Bega Cheese focuses on building a positive relationship with consumers because the
company perceived good quality of products then it increases the brand value and helps
in maintaining consumer brand loyalty.
Available options
There are different types of options to be available to a person for purpose of getting success in
the marketplace. Business managers of Bega has different options to be enter into food segment
as they can offer packaged food products in any category like healthy food or fast food. Bega
Cheese needs to focus on proving healthy food product packages to its customers in order to
enter into a new market segment which allow them to get more demand in the market place and
also to focus on getting success.
Recommendations
 It is recommended to Bega Cheese to develop innovative environment in the
organisation. In order to adopt innovation in the organisation company needs to improve
its existing procedure, their work methodology so that the company generate better
output than others . company should focusing on their research and development so that
they find the consumer's need and their expectation for the company and also work to
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fulfill their need to build a good relationship with consumers and maintaining consumer
brand loyalty.
 It is recommended to Bega cheese to more emphasize on the advertisement of the
company which helps them to increase awareness of the product. It helps them to get
success in the market place and also helps them to attain competitive advantage in the
market place.
CONCLUSION
From above mentioned project report, it can be concluded that Bega cheese needs to analyse the
competitive position of the company in order to enter into a new segment. Entering into a new
segment helps a company to diversify its product market and reduce the risk present in the
market. It is also important for the business to adopt new products which are in demand and
allow them to take advantage of increasing demand in the market.
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REFERENCES
Books and Journals
Alieinykov, I., and et. al., 2019. Development of a method of fuzzy evaluation of information
and analytical support of strategic management. Eastern-European Journal of
Enterprise Technologies, 6(2), pp.16-27.
Barney, J.B., 2020. Measuring firm performance in a way that is consistent with strategic
management theory. Academy of Management Discoveries, 6(1), pp.5-7.
Bell, R.G., and et. al., 2018. From the guest editors: Opportunities and challenges for advancing
strategic management education. Academy of Management Learning &
Education, 17(3), pp.233-240.
Fonseca, A., Abreu, I. and Silvestre, W.J., 2021. Investigating context factors in the strategic
management of corporate sustainability integration. Journal of Cleaner
Production, 314, p.128002.
Khosiev, B.N., and et. al., 2019. Strategic management and zootechnical control in pig-breeding
enterprises: development of its information base. Research Journal of Pharmaceutical,
Biological and Chemical Sciences, 10(1), pp.1267-1279.
Kumar, S., Pandey, N. and Mukherjee, D., 2021. Cross Cultural and Strategic Management: a
retrospective overview using bibliometric analysis. Cross Cultural & Strategic
Management.
Makadok, R., Burton, R. and Barney, J., 2018. A practical guide for making theory contributions
in strategic management. Strategic Management Journal, 39(6), pp.1530-1545.
Newburry, W., Deephouse, D.L. and Gardberg, N.A., 2019. Global aspects of reputation and
strategic management. In Global aspects of reputation and strategic management.
Emerald Publishing Limited.
Pfarrer, M.D., and et. al., 2019. Sociocognitive perspectives in strategic management. Academy
of Management Review, 44(4), pp.767-774.
Online
Dairy in Australia. 2022. [Online]. Available through:
<https://www.agriculture.gov.au/agriculture-land/farm-food-drought/meat-wool-dairy/
dairy#the-dairy-levy>
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