A2 Milk Company: Business Scope, Products, and Financial Performance

Running Head: Milk 0
A2 Milk Company
Contemporary Strategic Management
4/6/2019

Milk 1
Introduction
The A2 Milk Company is a New Zealand organization, determining revenue from the
commercialization of A1 protein free branded milk and other associated products. The
organization engages approximately 185 people, operates in Australia, the United Kingdom,
New Zealand, Asia, and the United States. It is duly registered on the ASX and NZX, under
the code A2M and ATM respectively. Dr. Corran McLachlan established the company in
2000, who was researching the health impacts of A1 beta-casein and health risks. Their
mission is to discover the scientific understanding of the A2 protein type and maintain the
prestige of nutritional goodness that emerges from natural and real milk (Esty and Fisher,
2019). In the following, an effort has been made to discuss the business scope, major
products, and financial performance of the A2 Milk Company. In addition, it also discusses
the PESTEL analysis along with Porter’s five forces analysis to determine the competitive
edge.
History, ownership, and size of the company
History
The organization was previously known as A2 Corporation, which is engaged in the
development and production of milk and other associated products. It is stated that they only
produce milk products, which are associated with the infant formula. They carried out a
generic test to recognize which cows can produce milk with A1 protein (Trivedi, Deth and
Zhang, 2016).
Ownership
The A2 Milk Company is a public limited company lies in the fact that with the CEO and
board of directors of the organization. David Hearn is the Executive Director and Chairman
of the company who is accountable for the corporate ownership policy along with the board
of directors of the organization. It is stated that the board of directors of the organization
involves Peter Hinton, Jesse Wu along with Julia Hoare, and Warwick Every-Burns (Yu and
Hu, 2018).
Size and Business Scope
The A2 Milk Company operates in International markets involving New Zealand, Australia,
Asia, and other developing economies. It works on an international level and market value is

Milk 2
projected to be US$ 12,184 million and diversifying at a CAGR of 18.5% by 2023. They are
having a diversified number of business units in the Australian market comprising of daily
ingredients supplied through A2 protein, consumer section under infant formula brand with
approximately 32% market share, and food supplies under A2 milk fresh brand (Li et al.,
2017).
Major products, services, and markets
Their range of milk products involves-
 A2 MilkTM Light
 Skim milk powder
 No Fat
 A2 MilkTM Full Cream
 A2 MilkTM Full cream milk powder
 Infant formula
It is stated that A2 Milk Company is positioning and target its customer needs in the
diversified portfolio. They marketed its products in several countries involving the US, UK,
Australia, and other countries (Mucchetti and Zambrini, 2017).
Financial performance
It is stated that the A2 Milk Company hits a net profit to US$195 million and attains a total
revenue of $900 million. They significantly enhanced strategic cooperation with Fonterra and
Synlait (Alexey, 2018).
External environment
It is stated that the A2 Milk Company pronounced that its revenue has greatly increased up to
89% over the previous year. There are certain factor, which influences the performance and
development of A2 Milk Company as economic, political, technological, and legal (De Lucia,
Pazienza and Vecchione, 2017).
Political factors
It is stated that government policies and regulations are determined as a major influence on
the farmer’s efficiency and decisions. They have initiated a competition policy, which is
introduced in order to develop a competitive market. This policy is been developed to
eradicate the competition barriers and improvement within the dairy market in an easy