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Arla Case Study

This case study looks at the growth of a producers co-operative to become the largest dairy
group in Europe and how rapid growth required a values-driven culture and identity. This
enabled the new business to create leading brands across a range of markets.

Exhibit 1:
It talks about A milk quota is the maximum quantity of milk which a farmer may market in a year free of
levy. Milk quotas were introduced in the EC and allocated to farms producing milk or other milk products
on 2nd April 1984 in order to restrain rising milk production. They were introduced initially for a five year
period, but this has subsequently been extended.

Ex 2: Image representation about different product line available with Arla Foods.
Arla Foods had three major brands that covered several product lines: 1) Arla, which produced a broad
range of natural goodness and dairy products; 2) Lurpak, which produced luxury, high-quality butters
and spreads; and 3) Castello, which produced high-end specialty cheeses

Ex 3, 4: THE BOARD and org Chart , the Arla Foods cooperative was owned by
13,500 farmers located in seven countries: Belgium, Denmark, Germany, Luxembourg, the
Netherlands, the UK and Sweden. The Board of Representatives was Arla Foods' supreme decision-
making body.
The Board of Directors (see Exhibits 3 and 4) was elected by the Regional Boards and the Board of
Representatives.
Arla farmer owners have agreed to share equally the earnings from each litre of milk they deliver to Arla.
This is a core principle in the cooperative model Arla farmers stand together in good and bad times and
they share the profits and losses from all markets.

Ex 5: shows the performance report of Arla foods for the yr 2013.

Ex 6:
Discuss about the M&A and Joint venture of arla foods from the year 2004 to 2012
Ex 7: Arla world wide
Representation about Arlas core markets, production areas and sales/re-packing offices world wide.
Ex 8; About Arla future strategy for the year 2017.
We aim to develop our core business and our three global brands
We aim to create growth outside of the EU
We must be more effective
Ex 9:
OVERVIEW OF COUNTRY RISK IN LATIN AMERICA
A.M. Best Company provides news, credit ratings and financial data products and
services for the insurance industry.
Arla Case Study

This company analyzed the latin America and distinguished the regions in to low, moderate, risk and high
risks areas. They categorized risk in to Economic, political and Financial risks.
This report helped the management team to analyze the strategy very carefully before expanding their
business.
Ex 10:
Population Report from world bank in Latin America region.
Ex 11:
To strength local partnership and criterias to select the local partners. Arla devised 7 types of criteria
before selecting a local partner.
EX 12:
Arla Foods sales volume of different country in Latin Amercia and the sales of Product
Ex 13:
Discuss about Customer segments In mexico with report of Ecomonia.com website.
Ex 16: MEXICO AND THE MEXICAN DAIRY MARKET
Talks about Mexico total population, and GDP along with dairy market.
International Farm Comparison Network reported that Mexicos self-sufficiency in milk only increased
8%, and has never been over 81% between 1990 and 2004
And a huge demand in With more than 20% of the national consumers demand going unsatisfied, Mexico
is among the largest importers of dairy products in the world, and it has a long history of relying on
international markets.* and market leaders are local business players with no access to international
regions.

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