A2 Milk Company: Strategic Management and Business Units

Running Head: Milk 0
the a2 Milk company
Strategic Management
3/30/2019

Milk 1
Contents
Introduction................................................................................................................................2
Business units and product lines.............................................................................................2
Business revenue units...........................................................................................................3
External environment.................................................................................................................3
Political factors.......................................................................................................................3
Economic factors....................................................................................................................3
Social factors..........................................................................................................................4
Technological factors.............................................................................................................4
Environmental factors............................................................................................................4
Legal factors...........................................................................................................................4
Determination of internal competitiveness................................................................................5
Resource Capabilities.............................................................................................................5
Core Competencies.................................................................................................................5
Competitive advantage...........................................................................................................6
Recommendation........................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

Milk 2
Introduction
Agribusiness is a major sector in Australia with contributing a substantial amount in the
international investment and gross income of Australia. Dr. Corran McLachlan, who was one
of New Zealand’s richest men, founded the A2 Milk Company in 2000. The organization was
formerly known as A2 Corporation Limited that commercializes intellectual property
associated with a2 milk products such as infant formula. It was later renamed as A2 milk
company that an ASX 200 public listed company. They operate its activities in several
countries such as Australia, the United Kingdom, China, and the United States. They are
more concentrating on nutritional products, experience strong growth through sales
capabilities, and has expanded the U.S. market (Esty and Fisher, 2019)
Their main vision is to be a smart and innovative choice for daily nutrition. They maintain
consistently high quality branded products that are diversified into Australia fresh milk into
nutritional products. Their ambition is to be the most attractive nutritional company, which
fulfills their developing digestive health needs. It has been recognized that the company is
achieving substantial gains in revenue and earnings in the 2017 financial year at $300
million. They are continuing their growth capabilities and planning to broaden its
organizational capabilities into other global markets (Pal et al., 2015). In the following, an
effort has been made to discuss the business units of the A2 milk company. In addition, the
discussion has been made on the external environment and determination of internal
competitiveness of A2 Milk Company.
Business units and product lines
It is stated that A2 Milk Company is having a broad number of business units in the
Australian market involving food supplies under the A2 premium fresh milk brand, consumer
section under Australian infant formula brand with 32% market share, and daily ingredients
supplied through A2 protein. They are diversifying their market business units, which are
assisting them in catering to a different assortment of consumer segments.