Entrepreneurship and Innovation in the Dairy Industry: Miraka Report

This report provides a comprehensive analysis of Miraka Company, a dairy processing company in New Zealand, focusing on product innovation and entrepreneurial opportunities. It begins with an introduction to Miraka, its values, and its market position, followed by an assessment of entrepreneurial opportunities within the dairy sector. The report utilizes SWOT and BCG matrix analyses to evaluate Miraka's strengths, weaknesses, opportunities, and threats, and to determine the strategic positioning of its products. It identifies key issues such as limited product range and health concerns, and proposes a new product innovation: an infant formula targeting babies up to 12 months. The analysis incorporates Maori values such as Manakitanga, Kaitakitanga, and Whanaungatanga to inform business decisions. The report includes a detailed market evaluation of the proposed innovation using the 4Ps, target market segmentation, and competitor analysis. It further assesses the critical business risks associated with the innovation, including revenue streams, cost structure, and key metrics. The report concludes with a discussion of the proposed innovation, the business risks, and the overall strategic implications for Miraka Company. The assignment adheres to APA 6th edition referencing and includes a Lean Canvas and KPI model for strategic planning.

Running Head: ENTREPRENURSHIP AND INNOVATION
ENTREPRENURSHIP AND INNOVATION
Name of the Student
Name of the University
Author Note

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ENTREPRENURSHIP AND INNOVATION
Executive Summary
The main purpose of this report is to do a product innovation and to understand the complete
Business activities of Miraka Company in order to introduce new innovation. The study is
supported by analysing the company profile of Miraka Company. The new product will focus
on solving the issue of allergies within the children.

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ENTREPRENURSHIP AND INNOVATION
Table of Contents
Introduction................................................................................................................................3
Assessment of entrepreneurial Opportunities............................................................................3
Market Evaluation of proposed innovation................................................................................4
Critical Business Risk Appraisal for the proposed innovation................................................17
Conclusion................................................................................................................................22
References................................................................................................................................23

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ENTREPRENURSHIP AND INNOVATION
Introduction
This report will focus on evaluating the business function of Miraka, which is a dairy
processing company. The assignment will enable the entrepreneurs to find opportunities in
dairy processing sectors and expand their growth. The market appraisal of the company is
done on the basis of product innovation using the business model and market analytical tools.
The next part of the assignment has focused on the business risk appraisal of the company.
The main objective of this report is to do a product innovation of the company and
understand the complete Business activities of Miraka Company in order to introduce new
innovation.
Assessment of entrepreneurial Opportunities
MIRAKA (Maori Milk Company)
Miraka is a well-established dairy processing company of New Zealand. The industry
is located at Taupo in Northern Island of New Zealand. The company supplies for nearly 100
local farms that is situation nearby 85kms from the factory. The company is owned by Maori
trusts and incorporations (Council, 2017). The company has nearly 29 employees in its
location. The company was incorporated in the year 2009 as Miraka Limited.
Company Values
The dairy processing industry is focused on deriving strong values on the basis of
cultural perspective of the owners. These values guide the company in making business
related decisions and help in building relationships with other organisation and helps in
business sustainability (Joseph et al., 2016). The top most important values of the company
are:

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ENTREPRENURSHIP AND INNOVATION
 Exceeding the Expectations- the Company is focused to perform their best every day
in the dairy processing process.
 Sustainability- Company is focused in nurturing the natural resources and society for
business sustainability.
 Build a trustable relationships- It focuses on taking personal responsibilities for
building an honest & ethical behaviour in their work culture.
 Diverse culture- It focuses on respecting the diverse culture in its business.
 Innovation- It focuses on building a flexible business process by implementing new
and creative business solution. It always focus on building opportunities.
Industry Information- Company in this industry produces dairy products starting from
raw milk to processed milk.
Market Identification
The Miraka Brand is exported to various regions of New Zealand. The products are
exported to Northern and Southern America, South Asia, Eastern & Western Africa,
Australia and Pacific region. It is focused on delivering a high standard of customer supply in
an excellent way (Rout & Reid 2019). The company mainly produce Taupo Pure milk
powder, ingredient powders and UHT products. The competitive advantage of Miraka
Products s that, it gives farms fresh products with optimum quality that is needed by the
customers. It mainly focuses on building a strong dairy processing company all across the
global. With respect to Maori value Kaitakitanga the company is focused on deriving the
value without affecting the society or people and the natural resources.
Customer Needs- Fresh farm milk with high quality of nutrients for the children and
people.

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ENTREPRENURSHIP AND INNOVATION
Market Evaluation of proposed innovation
Issues in Miraka Company
 Less product range – The Company supply its products to only 100 local farms that is
situated from 85km from the factory. Therefore, the product range is very less. The
fresh products can only be delivered within this range.
 Shortage of farm animals- The consumption of feed has a rapid increase in the dairy
processing industry of New Zealand. Therefore, the company faces shortage in
domestic animal is the major problem in the company.
 Health- The Company is situated in the local region of New Zealand. The health care
centres for animal feeds are located far off places (Taylor, 2018). This results in
inadequate health service to the animals and therefore they donot have immunity to
fight against some of the cattle diseases.
 Marketing and pricing- The milk is offered at low price, therefore the farmers donot
get sufficient remunerative price for supplying the milk. This is one of the issues the
farmers are facing.
Models
SWOT analysis
1. Strengths-
 The company is the only-owned & controlled dairy processing company. The
business is all about production and processing of milk.
 The company has a venture with Turaopaki trust, Wairarapa Moana, Tuaropaki Trust
and other farms. The company have shareholders from these trusts and farms.
 The plant can process nearby of 210 million litre of milk and can easily process
around eight tonnes of milk powder per hour.

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ENTREPRENURSHIP AND INNOVATION
 The company have direct contact of their customers. This is one of the strength of the
company.
 It can help the local farmers to meet their needs those who cannot reach the industries
of other country side.
 With respect to Whanaungatanga, Miraka create sense of belonging among employees
and has unique in cultural sense that helps in building the profitability of the business
(Harmsworth, 2005).
2. Weakness-
 Miraka possess very limited range of products as compared to its competitor company
Fonterra.
 The plant is situation in 30km of northwest from Taupo. Therefore, the location
doesnot allow the company to reach towards more suppliers.
 The company is a new entrant to dairy processing industry, therefore they are more
concern to the company risks (Jiang et al., 2018).
 Miraka Company is owned jointly by Maori Trusts & other companies. Tuaropaki
Trust are the major shareholders with 54% stakes. The company doesnot have its own
control. It can be forced to do stake sale by other company. This can be loss for the
business. The company plans & objectives can be sold.
3. Opportunity
 Miraka is building a new plant in Taupo to process a whole milk powder products.
The company have the opportunity to source milk to various farms of central Plateau
region under Raw Milk Regulations.
 The company have direct contact of their customers. This will help the company in
providing a better opportunity.

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ENTREPRENURSHIP AND INNOVATION
 The vision & strategy of the company will provide a niche opportunity for the
business.
 Miraka Milk Company has built connections beyond New Zealand. The company is
also owned by Vietnam’s biggest dairy company known as Vinamilk. This company
selects its first foreign investment with Miraka (Abdel-Basset, Mohamed &
Smarandache 2018). With this concept it can be seen that, Miraka have a greater
opportunity in expanding its business all across the global.
 The company has also initiated an online business website that provide opportunity
for them to produce new products and reach to new markets.
4. Threats
 Vietnam has issues with China because it provides a middle class higher quality of
nutrition products. This can be a threat for Miraka in case of expanding its industry in
China.
 The company has a small stake with Global Dairy Network (GDN) which is the ex-
partner of Fonterra, an excellent experience in sales and marketing of the milk
production. This is can be a threat for the company in the competitive market.
 The business partners and suppliers have a doubt in the good practice of business
culture. Therefore, the attitude of the suppliers and the shareholders towards the
business is not positive. This may be a threat for the business.
 The children are facing allergies from the milk. There can be a chance of spreading
viruses from the farm animals used for production of milk.
BCG Matrix

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ENTREPRENURSHIP AND INNOVATION
Figure 1: Growth/share Matrix
The Boston Consulting group’s (BCG) product portfolio will help to implement and
design a long-term planning of the business (Mohajan, 2017). This will help the company to
evaluate their growth opportunity of the business by analysing the portfolios of the products.
This will also help the company to decide where to invest and were they should focus on
continuing the developments.
 Stars- Packs of Ultra-High-Temperature (UHT) milk are the star product of Miraka
Limited. This Ultra-High-Temperature facility in the milk products has a largest
capacity of 60 million liters pa. This allows the company to provide farm-fresh
products to customers situated (Suksantilap, Leelasantitham & Glesner 2017). One of
this UHT milk product are ingredient powders. This is the largest capacity in the
commodity market. It has an excellent capacity of nearly 8-10 MT of milk powder in
every hour. Some of the ingredient powders and their size are listed below:

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ENTREPRENURSHIP AND INNOVATION
 Cash Cows- The company generates its steady income from whole milk powder. The
growth rates is less only 4% as compared to other competitors in the New Zealand.
The company generates a revenue of $125million from the products. It provides a
100% exports to 23 countries through their joint ventures. The company must focus
on improving the growth rates of this products. Taupo milk product is one of the
product that the company is focused on continuing its development in terms of quality
in order to improve its growth rate in the competitive market (Miraka.co.nz. 2020).
 Question Marks- Fonterra milk products that is generated by the company has the
highest market share of 96%. But, the product has a very small growth rates of 0.12%.
This product has a high customer brand in the competitive market. It is recommended
that the company can invest in its research & development to improve the product
development strategy and bring more profits from the products in order to improve
the growth rates.
 Dog- In the recent financial year 2017 report of Maori Trustee, it has been found that,
Maori trustee has not done any investments in Miraka Company, which is an
associates of Maori Trustee (Shanbhag, Dutt & Bagwe 2016). This part of business
unit of the company has a less market share in the market. This part of the business
units may be failure for the company.

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ENTREPRENURSHIP AND INNOVATION
KPI Model-Balance Score Card
This is a strategic planning tool that helps to translate the business strategy into the
financial & non-financial measures of the business performance in order to take further steps.
Items Corporate Goals Target/Measures Initiatives
Shareholders To protect the
interest of the
shareholders
Proactive in the
organisational
policies and dealing
with the company
management.
Accelerating the
shares of the
company and
initiating the
compensation for
shareholders
proposals. Providing
opportunities to
threshold and call in
the company
meeting.
Customers To produce milk
product that will be
free from allergies
and has high
nutrients for the
toddle growth.
Implement a
successful supply
chain process.
Understanding the
customer
requirements, the
understanding the
cause of allergies to
the children and
avoiding the factors
in the new product.
Internal processes Improving the
quality standards of
Improving the
quality of customer
Will implement new
strategies & policies

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ENTREPRENURSHIP AND INNOVATION
the business process
(Iona, 2018).
service and examine
the day-to-day
operations.
that will give fruitful
advice for product
development. Will
focus on strict
development.
Employees To emphasize the
labours and workers
with specific job
goals.
Employment and
manpower
requirements
(Ramandita, Utami
& Lutfi 2019).
Duties will be given
according to the job
requirements.
Employees will be
allowed to share
their ideas in product
innovation process.
Lean Canvas