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Decisions That Help Improve Dairy Industry (pdf)

   

Added on  2020-05-16

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Running head: DECISIONS THAT IMPROVE DAIRY INDUSTRY 1Decisions That Help Improve Dairy IndustryNameInstitution

DECISIONS THAT IMPROVE DAIRY INDUSTRY 2DECISION THAT IMPROVE DAIRY INDUSTRYIntroductionThis report covers various methods, strategies and decisions that can be put in place toimprove Dairy farming. Dairy farming is extremely dynamic in which a slight change in priceand market conditions, climate conditions, environmental restrictions and evolving policiesdetermine performance. The dairy company is Australia’s best rural industries. The report dealsspecifically with Dairy products such as Yoghurt, Ice cream, Skim, butter and other types of milkproducts. It is true that the industry dealing with dairy products performs in a highly competitiveenvironment, thus vigorous productive improvement are critical for the success of the company.The management therefore, needs to take into consideration major opportunities for productivitygain and production and operate towards achieving their objectives. The report explained indetail how technology can help improve the business performance. The last part is the generalconclusion.Decisions that the management should put in placeNew technology (improvement because of new technology): the management shouldmade use of Automation technology as this will change the way the organization produce milk,and the actual benefits that the company may realized include the following: first it will improvethe quality of milk products then it will also improve the profitability of the business and thenlastly it may improve the Animal welfare and lifestyle. It can also help the organization to usefavorable processing method that has not been used before, to support the actual decision makingprocess (Cabrera, 2018).Research and development: The board should put in place a longstanding need for thepurpose of developing industry’s mix specifically so given pressure related to the recent dairy

DECISIONS THAT IMPROVE DAIRY INDUSTRY 3products price changes and the actual exclusion of price support. The organization needs not torely on low products and it should aim at higher value extra products. In order to achieve this,continuing research and development is needed. The company should aim at developing a highvalue extra health enhancing milk products by use of innovation, technology and science.There is also need for developing marketing initiatives and product research with an aimof stimulating the profitability and demand for the company’s produced milk. The dairy industrycombines all the processing entities that get much of their income from milk supplies to outsidecountries. This encourage long-term health of the company, enables good business sense, that isonly realizable through the establishment and maintenance of excellent milk products that mayencouraged exports to other markets( Challis, Tierney, Todd, Wilson, 2017).In addition the company should also base their research on environmental, nutritional andwelfare aids of the milk products as this would help to increase the demand for the commodity.The company should also come up with new marketing initiatives which encourage strongproduct recognition (milk products). This concept will stimulate international customers to buythe quality products produced. The company should therefore realize that Dairying is coming to a new level oftechnological transformation, including development in new technologies, autonomous androbotics vehicles. Therefore, there are abundant emerging technologies important to the sector ofthe dairy industry. They should be put in place with an intention of improving decision makingprocess and this will enables the company to be head of the competitors.Milk pricing:The processing cost is related to price structure for milk usually used to sell the productsand too pay the farmers who supply milk to the company. Dairy prices always change from

DECISIONS THAT IMPROVE DAIRY INDUSTRY 4being demand driven to supply and always responsive to consumer demand and market signals.For example a change in payment for Chocolate and Lite Milk will enhance the sales Market. When the company decreases the actual price of the commodity, the demand for theproduct will increase hence increasing the market sales. It was realized that when the price of fullcream milk decreases it enhances sales of the commodity and this makes the company to makegood amount of profit. In order for the company to be a head of the competitors, it must set afavorable price that is manageable to both the customers. By taking into consideration thecompetitors price, the company may increase the export of its product to other countries (Ho,Heard, Wales, Jacobs, Doyle & Malcolm, 2017).Advertising CampaignThe expenditure on advertising is quite expensive but the process is important because itrelay information useful to consumers. The information can also help customers to make choicesand this will sustain demand for a product. The company should therefore concentrate onadvertisement in order to aim at getting new customers. The problem with advertisement is thatcustomers easily forget all about the process after sometimes. The company should therefore,invest in advertisement in order to increase the actual sales of the commodity ( Kerslake, Amer,O'Neill, Wong, Roche & Phyn, 2018).) The customers should get the information in case of change in the price of thecommodity. They should also alert the public if there is a change in brand name as this willincrease the actual sale of the new products. When company decided to add products into themarket, such as Ice cream and Strawberry flavored Milk. The management should thereforeinvestment in advertisement in order to alert the customers on the new products.

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