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MANAGEMENT OF SSI SYBMS 'B' ROLL NO: 82

SUMEDHA KANE

DECISION MAKING
AMUL BUTTER
Amul (Anand Milk Union Limited), formed in 1946, is a dairy cooperative movement in India. It is a brand name managed by an apex cooperative organisation, Gujarat Cooperative Milk Marketing Federation Ltd. (GCMMF), which today is jointly owned by some 2.6 million milk producers in Gujarat, India. Amul has spurred the White Revolution of India, which has made India the largest producer of milk and milk products in the world. It is also the world's biggest vegetarian cheese brand]. Amul is the largest food brand in India and world's Largest Pouched Milk Brand with an annual turnover of US $1050 million (2006-07). Currently Amul has 2.6 million producer members with milk collection average of 10.16 million litres per day. STRATEGIC DECISIONS It was started as a co-operative society to help the farmers thus giving them a fair return for their milk produced.
Population of India is ever growing. Ever second individual has bread daily. So

Amul thought of a product called butter to spread on bread.


India has the largest population of buffalos. So there is milk in abundance. It is used

effectively by making milk products like butter, cheese etc. Therefore there is easy availability of raw material It had no competition when it was launched; hence there was less risk of product getting failed. Even today Amul butter has no competition in the market. Thus Amul adopted a low-cost price strategy to make its products affordable and attractive to consumers by guaranteeing them value for money.

OPERATING DECISIONS The first thing they did is they built the collection centres near the village so that the farmers were not required to carry the milk far off. The collection centres were set up in the adjacent areas of Gujarat
In the above process they collected milk directly from the farmers, which

eliminated the middleman completely.


As milk is a perishable good it has to be processed fast. So the milk collected twice

a day was sent to the factory at Anand, Gujarat. The problem of storage at collection centres was eliminated. There are 47 depots with dry and cold warehouses to buffer inventory of the entire range of products.
Amul was the first Indian company to have web presence. Hence the distributors

were able to place their orders on the website, Amulb2b.com, especially meant for accepting orders from stockists and promoting Amuls products via e-commerce
Two national organations, the National Dairy Development Board (NDDB) and the

National Co-Operative Dairy Federation Of India (NCDF) were established to coordinate the dairy activities through co-operative in all states of the country. CONTROL DECISIONS.
The installation of over 3,000 Automatic Milk Collection System Units (AMCUS)

at village societies to capture member information, milk fat content, volume collected, and amount payable to each member, has proved invaluable in ensuring fairness and transparency throughout the entire organisation. In the above process the quality of the butter is maintained at all the levels right from the collection of milk to the final process. The company has also earned AGMARK i.e agricultural mark for its quality.
They hire professional managers, and supervisors to run the federation and unions,

whose values included up liftment of rural poor. Amul actively pursues developments in embryo transfer and cattle breeding in order to improve cattle quality and increases in milk yields.

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