Friday, October 18, 2019
Individual assignment case study reviews Essay Example | Topics and Well Written Essays - 2500 words
Individual assignment case study reviews - Essay Example Therefore, a compare and contrast approach has been followed to understand their future success. Dairy Crest Group Plc is one of the leading dairy products company in Europe. They are engaged in manufacturing, processing and distribution of milk and dairy related products. This company was established in the year of 1981 and it is headquartered in the United Kingdom. This group serves near about 35,000 foodservice customers such as hotels, schools, cafes, stores, convenience stores and hospitals. Their key brands include Frijj, Utterly Butterly, Cathedral city and Clover. The annual revenue of this company is approximately $2,184.2 million in the fiscal year ended 2013 (Dairy Crest, 2013). Organisations like Arla and MÃ ¼ller Wiseman Dairies are increasing the competition of the liquid milk market by their investment in new liquid processing and distribution facilities by (MarketLine, 2014a). Economical Factor: The main financial risks of this Group are interest rate risk and price risk. The change in market interest rate can cause financial risk to the organisation because of their long-term debt obligation. Various non-milk commodities those are affecting the input price of this organisation are vegetable oil, electricity, diesel and gas. They are regularly reviewing the relevant commodity market and the levels of future cover (Vignali, Vrontis and Vignali, 1999). Political Factor: The challenges of trade regulation are increasing day by day. This situation is harming the farmers and dairy processors. Changes in trade policies can restrict their business with other countries. Dairy Crest Group has already invested in various trade operations outside the UK and they have started selling their product in those locations. There is a huge chance of getting affected by the trade policies and exchange rates of those locations. (Pattisson and Lindgreen, 2004). Social factors: Social
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