Strategic Company Report: Case Study of Dairy Farmer Pty Ltd

Strategic Company Report
Case study of Dairy Farmer Pty Ltd

Table of Contents
1. Introduction................................................................................................................ 3
2. Discussion of the Macro and Micro Environment of the organisation..........................................4
Macro environment: PESTEL Analysis..............................................................................4
Micro environment analysis............................................................................................. 6
3. Competitive Advantage of Dairy Farmers............................................................................7
4. Use of Porter’s Generic Strategies..................................................................................... 7
5. Use of Growth Strategy by Dairy Farmer Pty Ltd..................................................................8
6. Strategic Recommendations for the organisation...................................................................9
7. Conclusion.................................................................................................................. 9
References................................................................................................................... 10

1. Introduction
The dairy industry in Australia is one of the competitive industries. It is the third largest rural
industry has contributes significantly to the overall economic growth of the country. The gross
value of the industry is around $4 billion which clearly shows its importance to the Australian
economy. Dairy Farmers Pty Ltd is one of the leading organisations in Australia selling dairy
products in New South Wales and Queensland. The organisation is renowned for its dairy
products including desserts, custards, buttermilk, yogurts and specially thick and creamy milk.
Dairy Farmer is a common brand working under the parent organisation Lion Dairy and Drinks.
The organisation was originally established in the year 1900 and had 65 stakeholders in the
market. In the financial year of 2005 the organisation was the third largest revenue generating
organisation in the dairy industry (Regulations, 2015). With time the company has expanded its
operations in East Europe, Middle East and Asia and is planning to launch in other parts of the
world. In the year 1977 the organisation invested in Ultra High Temperature Production for the
first time which became a revolutionary concept and helped the organisation reach the pinnacle
of success in the Australian market.

2. Discussion of the Macro and Micro Environment of the organisation
Analysing the macro and micro environments is extremely important for every organisation. The
Macro environment provides excellent overview of the market especially about competition and
market situation and the other driving factors which helps an organisation to prepare effective
business plan to sustain in the market. On the other hand the micro environment effectively
develops an understanding of the key stakeholders and their importance in the organisation.
Together analysing macro and micro environment helps to develop suitable business strategy that
allows an organisation to sustain in a market for a long period of time.
Macro environment: PESTEL Analysis
The tool PESTEL analysis helps to analyse the political, economic, social, technological,
environmental and legal factors. It is extremely important for Dairy Farmers Pty Ltd to
effectively understand the importance of these factors and accordingly analyse them to get
effective idea about their roles in helping a business move ahead. Analysing these factors would
help to prepare strategic moves for the company.
Political: The politics largely affects the movement of business in a country to a large extent.
Effective political stability would mean that an organisation would be able to move ahead with
its strategies and ideas properly whereas in a politically unstable market nothing seems to be in
balance which forces the organisations to go into uncertain situations. Hence, analysing the
political environment becomes extremely important for the organisation Dairy Farmers. The
bureaucracy and corruption in the Australian dairy industry is comparatively low which helps the
organisations to perform their operations effectively as well as provide consumers with the best
possible product (Pembleton et al., 2015). The new Government has put forward policies related
to the dairy industry has helped organisations to ensure proper operations. Australia is
diplomatically placed in global politics and doesn’t experience terror threats which help the
various industries to keep a stable strategy to operate in the market. Since there’s no disruption
of business environment businesses could operate effectively.