MGMT7933: Global Business Developments
Added on 2020-05-01
11 Pages2966 Words69 Views
Business DevelopmentLeadership ManagementLanguages and Culture
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RUNNING HEAD: GLOBAL BUSINESS DEVELOPMENT1Global BusinessDevelopment Silver Fern FarmsSubmitted by:
Silver Fern Farms2HistorySilver Fern farms are a Primary Producers co-operative Society registered in the year 1948. In beginning the company started with trading as PPCS while changing itself to Silver Fern Farms in 2008. The company recognized in 1948 as the Primary Producers Cooperative Society. It was formerly situated in the South Island ofNew Zealandas a meat marketing cooperative primarily selling sheep. The company formerly transformed into PPCS Limited till the deployment of new management team. The over-capacity in meat industry gave a chance to utilise its profitability generated in the previous decade. It expanded formal functioning in 1980sfrom small processing operations via meat giving out cooperatives originally in the South Island and later the North Island (Council, 2016). Later in 1986, the released asset value was returned to the farmer shareholders through the holding company Apex Limited. Acquisition of Canterbury Frozen Meat and consolidation of the New Zealand meat industry sustained during the 1990s with PPCS. This includes business competence by not getting trapped out by the competitors like AFFCO Holdings. However, in 2006, the company Hawkes Bay based Richmond Meats to determine issues regarding the undisclosed investment created in the late 1990s. This burdened the cooperative with debt. As a result the Silver Fern Farms in 2008 based on the long standing brands. The company was unable to complete the equity lifting required finance offered. They had to pay $42 million in compensation to Silver Fern and write off a total of $50 million for the compensation and due diligence expenses. They are important for managing tasks in an appropriate way. The brand revamped itself On 1 October 2014, by reorganizing the business into three species-based units. They created two new 100% subsidiaries, Silver Fern Farms Beef Ltd and
Silver Fern Farms3Silver Fern Farms Venison Ltd. In October 2015, Silver Fern Farms underwent a partnership proposal for an investment of NZD $261M with a subsidiary of Bright Food Group. The company underwent a deal with a Chinese company that will help in global expansion. The deal was completed in June 2016(Hutching, 2016). The vision of Silver Fern Farms Beef Ltd is to create an inspirational Food by Passionate People. The company is thinking of ways to manage individual interest by developing an effective ways to enjoy a meal by the people. There strategy is to identify the needs of the consumers and developing the same accordingly. As a cooperative society, Silver Fern Farms has a target to manage the organization to gain market competency. They are highly focusing over the high quality, grass-fed, red meat that is made in New Zealand. As a long term strategy, the brand wants to establish itself as the consumers brand to deliver reliable and sustainable chain of care for farmers. Their central plan is to deliver what is promised. For the reason, they are meeting consumers’ needs by working consequently with the team. Silver Fern Farms Co-operative Limited distributed a special dividend of $34.5 million on 14 February. The shareholders received 30 cents per share on all Ordinary Shares and Rebate Shares after the completion of Shanghai Maling Aquarius’ $267m investment in Silver Fern Farms Limited (Silver Fern Farms, 2017).Potential Risks and BenefitsPotential Benefits 1.New Zealand is a stable and globally competitive business environment. They have a positive economic growth. For the reason Trade has been an essential element in order to gain economic affluence.
Silver Fern Farms42.The prospective investment opportunity in the coming years will gradually impactthe business growth. This will gradually help in handling of free trade agreements, pro-competitive regulation, an efficient tax regime in gaining innovation and an efficient and competitive economy.3.In some way the country is using the foreign funds preferable to manage the export and import. FDI provides with different risk sharing options to the business organization by supporting capital investment.4.FDI is an important parameter that offers greater stability of funding in the business organizations in New Zealand. It is a a smaller amount liquid form of investment which reduces the risk of the firms due to rollover risk. The Debt to direct investors does have favourable terms. These features help in reducing the economy from risk. They however help in reducing risks to macroeconomic steadiness. It is evident for an economy that FDI can amplify the chances of supplementary investment into New Zealand. Multiple investments in the country will eventually. 5.Silver Fern Farms and Chinese company Shanghai Maling have signed their partnership In June 2016 appointing present SFF chairman Rob Hewett as a co-chairman along with Xia Xu Shen. The deal amounts to $267m investment into Silver Fern Farms acted as a game-changer for Silver Fern Farms. 6.The International deals act as an appropriate platform to manage the strong and sustainable capital structure. This will eventually help in managing the resources to speed up strategy in ongoing and upcoming market. It will allow the business
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