Case Study Analysis
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1. Where should Al Ain Dairy locate its activities?
Al Ain Dairy started its daily farm in Dubai, UAE. They began their dairy farm in 1981 and they are running it successfully till now. Over the last five generations, they did not imported any single cow and they are having three farms with over 5000 cattle heads in it. The number of camels in their dairy farm is 230 approximately. Even though, the business started in 1981, it took peak growth from 1990 onwards where, it merged with Al Ain Poultry and formed Al Ain Farms for Livestock production and their company worth estimated to AED 140 million.
2. What should be the best strategic plan for the company for the next two years? Why?
The best strategy plan for the next two years is to increase the sales of dairy and juice products. It is clearly fact that they are selling dairy and juice products to large extent which was mostly liked by the children’s and thus increasing the sales of dairy and juice products need to be increased rapidly with no compromise in the quality. Dairy products, juice products and chilled dairy products are the three major products that the company is placing under their strategy plan belt. They are also planning to expand their farms of Al Ain and also planning to invest in at least 1200 cattle head counts with new infrastructure plans. The most important strategy that they are looking is to lock their own agro product sources which accumulates for at most 90% of their total cost. This is a good strategy as they can reduce their cost to greater extent by locking their agro products. Also, the company is planning to increase their milk yields and they planned to increase the camel milk from 2000 liters to 10000 liters per day over the period of six months. The company mainly depends on four company values, namely, people, customer relationship, business conduct and commitment to the environment. They are focusing on all of these four values which helps them to grow their business to great extent
3. What are the resources needed to manage the new initiatives?
The Al Ain management’s new initiative is to reduce their cost to greater extent by locking their agro products. Also, the company is planning to increase their milk yields and they planned to increase the camel milk from 2000 liters to 10000 liters per day over the period of six months. The company mainly depends on four company values, namely, people, customer relationship, business conduct and commitment to the environment. They are focusing on all of these four values which helps them to grow their business to great extent. They monitor the waster, water and emissions and they work along with their stakeholders to deliver quality products to their customers. The most important part of supply chain process is understanding the cold chain process and delivering safe milk and juice. Since milk products are highly sensitive and will contaminate within a short duration of time, we need to take at most care in delivering safe milk products to their customers. Over the last five generations, they did not imported any single cow and they are having three farms with over 5000 cattle heads in it. The number of camels in their dairy farm is 230 approximately. Even though, the business started in 1981, it took peak growth from 1990 onwards where, it merged with Al Ain Poultry and formed Al Ain Farms for Livestock production and their company worth estimated to AED 140 million.
4. Should Al Ain Dairy consider markets in Europe , why or why not
No. It is not required for Al Ain Dairy consider markets in Europe. The Al Ain management’s new initiative is to reduce their cost to greater extent by locking their agro products. Also, the company is planning to increase their milk yields and they planned to increase the camel milk from 2000 liters to 10000 liters per day over the period of six months. By creating a new facility in Europe, they need to incur high investment over materials and instruments which is not required now. Also, the agro products in Europe seems to be very high and they will be forced to place high price to their products which would be difficult for them to compete with their business competitors. Also, understanding the European market is a difficult task and therefore, it is advisable to not open Al Ain Dairy farm in Europe markets now.
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