Bega Cheese: Issues, Strategies and Solutions

Running Head: BEGA CHEESE 0
Management

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Contents
Introduction................................................................................................................................2
Issues and problem.....................................................................................................................2
Strategies to overcome all the issues and problem.....................................................................4
Fallouts.......................................................................................................................................7
Conclusion..................................................................................................................................7
References..................................................................................................................................9

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Introduction
Bega Cheese is an Australian Cheese Company in the New South wales, town of
Bega. It was founded as the agricultural cooperative that is owned by the dairy suppliers. In
the year 2011, it became public company when it listed on the “Australian Securities
Exchange.” The main business segment includes the dairy ingredient such as Cream Cheese,
Cheese, as well as powdered milk (Lindberg, Nichols & Yam, 2017). From the report, it is
founded that Australian Dairy industry consists of the several food items. Bega Cheese put
emphasis on the different taste as well as health supplements. It has become a market leader
due to its effective distribution network and proper sales. It also has skilled and competent
staff in its firm. Bega Cheese is number one cheese manufacturing brand based in Australia.
In the case study, issue of recession has been presented. Therefore, any recession in the future
might affect the growth and profitability of Bega Cheese limited.
Due to the key player in the dairy industry on global scale, it has earned a great
reputation in the dairy industry. Its strong market presence over Australia and overseas helps
it in launching new products. It is also founded that demand of dairy product is regularly
increasing that presents several opportunities for the Bega Cheese. In the first section, the
discussion is carried on the mission statement and SWOT analysis of the Bega Cheese. It is
also founded that competition is also increasing to a great phase that is putting the threat to

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Bega Cheese. Besides this, economic recession and debt is also one such issue that is being
described. The solution to these problems has also being described further.
Issues and problem
 Risk of diversification- It has been seen that Bega Cheese planning to make the
largest acquisition by meeting with Mondelez, that is one of the largest snack food company.
By taking this, the major issue arises with Bega Cheese to change its business model (Dale,
Robinson, Fallon, Cameron & Crotts, 2016). By bringing this change, the problem arises in
terms of new skills, new people, and new strategy. By undertaking all these, it is also required
to deliver strong financial result. It was also not sure how the Bega employees, suppliers as
well as investors will respond to the news of Bega regarding venturing outside of the dairy
industry.
 Increasing competition- It is one of the concerning issue with the Bega Cheese. It has
been founded that the on-going turmoil is creating the intense competition. Due to entering in
the processing business, it is becoming difficulty for the company to compete with the largest
processors of Australia. Whenever, any company enters into any new business, it is obvious
that it will face the high competition from established business operation. In addition, one of
the strong products, vegemite has faced the stiff competition in the spreading breakfast
category from its very old competitor- Marmite. In the current time, every new firm is