Contemporary Management Assignment sample
Added on 2020-12-18
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CONTEMPORARY MANAGEMENTIN ACTION
TABLE OF CONTENTSEXECUTIVE SUMMARY.............................................................................................................1PART 1: INTRODUCTION............................................................................................................1PART 2: INFLUENCE OF BREXIT..............................................................................................2Brexit impact in the external environment to the internal environment of the organization.......5PART 3: REALWORLD COMPARISON......................................................................................6PART 4: RESEARCH APPROACH...............................................................................................7PART 5: CONCLUSION................................................................................................................8REFERENCES................................................................................................................................9
EXECUTIVE SUMMARY This research problem definition identifies a research problem within an organisation that Ihave chosen, which has been and is going to be affected by Brexit significantly. It will becombined with my management pathway subject area knowledge which is leadership andmanagement. The research intends to use both primary and secondary data, as well as qualitativeand quantitative data. Then the problem will be set up and discussed providing sufficient contextand background in those following below: firstly, brief justification of the reason why thiscompany has been chosen, and background of the company will be followed. Then in the secondpart will be about the influence of Brexit. Relation of the chosen company and elements ofinterest from the indicative content for this module will be explained. The third part will explainresearch about real-world comparison. The forth section will be about the research approach. It isgoing to be identified and explained the research approach proposed. And lastly there will beconclusions. There is going to be summary of my findings, and indicate where my actionresearch process might take me in the coming stages. PART 1: INTRODUCTIONFood industry especially the processed food and drink sector is the biggest manufacturingsector in the UK and contribution to the economy is worth £28.8 billion. In 2017, exports wereworth £22 billion itself and it is expected to stay growing. The sector employs 400,000 people inthe UK, and one third of them are EU national employees. The success of this sector has beenhighly dependent on participating in the single market and customs union, meaning it will getgreat influence by hard Brexit (the Houce of Commons, 2018). Arla Foods is an international company, produces dairy food. The headquarter is inDenmark. It is owned by 12,000 dairy farmers and approximately 2,500 of them are based in theUK. The biggest market is in the UK and Arla is the UK’s number one dairy company in termsof milk, butter, spreads and cheese. The history of this company dates back to the 1880s whenthe first dairies Sweden and Denmark were formed (Arla, 2018). Arla Foods was chosen for this assignment because it is the UK’s leading dairy companyand is the great way to show the example of what could happen to dairy industry including foodindustry in general. Dairy provides 80,000 workforces across the UK and helping manycompanies that is involved in the supply chain to generate revenues. Since the UK is the thirdbiggest milk producer in the EU after Germany and France at 14.8 billion liters of milk output1
per year, there is high possibility of Brexit could make dairy industry more competitive andprofitable (Bate, 2016). PART 2: INFLUENCE OF BREXITThe estimated impact of Brexit on the food industry is huge, in terms of inwardinvestment, labour and employment, as well as the change of policy and regulation. It is not onlyUK’s food producers concern but also for any companies that serves the UK market (HoganLovells, 2016). As mentioned above, there is possibility that dairy industry could be morecompetitive and profitable by the influence of Brexit. In order to make this happen, theorganisations have to manage the impacts of change on external environment and as also on theinternal environment of the organization (Dhingra and et.al., 2016). Arla food products will notface any changes in demand of its products as it has already created brand image and loyalty ofits customers. Brexit will impact trade cost, labour markets, and also some problems will befaced by goods markets as well. UK household faces' problem of loss in disposable income dueto depreciation in sterling and Brexit related uncertainty. UK will have to spend more on tradecost due to changes in rules and regulations of Brexit effect. The animal origin products will face a great problem as when imported from Europeanmarkets, it received UK special country treatment. Now it has to fulfill veterinary certificaterequirements. Arla foods also have to manage veterinary control check which will cost 50.60euros per 6 tonnes consignments and will also require 54 euros per consignment for organiccertification. Arla foods will also face problem regarding ports as it has to change routes whichwill further increase its cost and time for go through checks (Ziv, 2018). Domestic dairy market has been strong and successful for years and exports have beenincreasing and demand in non EU countries have also been increasing by 91% in volume overthe past few years, meaning even if the hard Brexit hit and trading in EU had become difficult,there is a way to stay profitable by doing business outside of the EU. As for a fact, it is expectedthat demand for dairy products will grow at 2% globally in the next decade, which means UKwill have more opportunities to have new markets and increase dairy exports globally (WillisTowers Watson, 2017). However, Pan-European dairy cooperative Arla Foods thinks borderbreakdown could also leave consumers in the UK with higher prices and fewer choicesespecially for the availability of butter, yogurts and cheese, which is caused by non-tariff barriersto trade and restricted access to labour (Do and Smallbone, 2017). This means that current2
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