History and Growth of Bega Cheese

Running head: BEGA CHEESE
BEGA CHEESE
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Table of Contents
Case summary and analysis.......................................................................................................2
History and growth of the company...........................................................................................2
Internal strengths and weaknesses of Bega Cheese...................................................................3
Nature of the external environment............................................................................................4
SWOT analysis of Bega Cheese Limited...................................................................................5
Corporate and business level strategies......................................................................................7
Company’s structure and control systems..................................................................................8
Strategic recommendations........................................................................................................9

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Executive summary
Case summary and analysis
The aim of this report is to discuss the history and growth of the company over time
firstly. By detailing the internal strengths and weaknesses of the company and the nature of
the external environment surrounding the company, it will be understood that how these
factors have impacted on their strategy. This paper has conducted a SWOT analysis and
identify, differentiate among the corporate and business level strategy it is pursuing. Through
these analysis, the company’s structure and control systems can match its strategy can be
identified. Finally the report will be recommending some steps for the better future of the
company (Begacheese.com.au 2019).
History and growth of the company
The company started to operate in the year 1899 when the Bega Dairy farmers created
a cooperative then established the factory in 1900. Then in 1985, the company started to
expand by contracting Bonlac which was a Victoria based dairy company. This company
helped Bega to market their products properly out of the previous territory of service of the
com any in New South Wales and the ACT. In 1994, the company started to expand itself by
the means of joint venture with Capitol Chilled Foods that was the one and only dairy
producing company in the ACT along with Canberra Milk and Gold Brands. After six years,
the company signed contract with Fonterra as the later had acquired Bonlac. This led the
company to gain reputation and popularity more along with scope for further expansion
(Begacheese.com.au 2019). This is due to the fact that Fonterra was a large dairy product in
both Australia as well as New Zealand. Moreover, this company had a suite of retail brands
therefore, had a completely own market. This company helped Bega Cheese to distribute the

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brand in all over Australia. Based on this deal, Vega also helped Fonterra to take packaging
operation of Bonlac in Melbourne.
In 2007, the company also bought 70% of share of Tatura milk based in Tatura,
Melbourne. The reason of purchasing the share of this company is to acquire the infant milk
powder formula along with its other nutritional products. Tatura Milk was going through
financial problems hence Bega had no problem to acquire this share and within four years,
the company bought all the share of Tatura Milk. In 2008 and 2009, Bega bought Coburg
cheese processing brand which mad the company to handle the dairy products of Australia
more exclusively (Ansoff et al. 2018). However, according to the constitution of the
company, this brand cannot be bought or managed by only one person therefore, it has been
operating in the market by the cooperative of the dairy farmers till now (Begacheese.com.au
2019).
Internal strengths and weaknesses of Bega Cheese
The company has several domestic and international industry chaos which has led
Bega to have internal strengths and weaknesses. These however balanced the growth of the
company making it to find out the opportunities present in the market.
The first and foremost strength of this company is its strong financial position in the
market of Australia which is gained through consecutive years of profit in the market in every
sector of dairy products. In addition to this, the company has a large asset base that create no
problem of solvency (David and David 2013). Secondly the company has a large market
coverage in Australia as retail and processed cheese is only sold under this brand in the
country. This has led the company to expand its business in some Asian countries, Chinese
market, in some parts of Europe and complete New Zealand. Thirdly the company serves the
customers with its huge range of products starting from nutritional foods, cheese, infant