Historical background of the company Milkpak

Historical background of the company Milkpak Milkpak was part of a family group of businesses, known as the Ali Group, which also operated businesses in textile industry, had major holdings in the vegetable and soap industries among others. One of the Ali Groups leading companies was called Packages Limited, established in Lahore in 1956. This company supplied packaging materials to a variety of industries and also provided technical assistance to packaging plants overseas. In 1976 a review of Packages Ltd showed that one of its machines, the Tetra Laminator, was very under utilized. This machine was designed for making packaging material for long-life milk or UHT milk. Milk packaged in this way had a shelf life of up to three months without refrigeration. Thus, following this review, Milkpak was established to create a market for the packaging materials produced by Packages Ltd. The company then found one milk plant in Pakistan which was suited to produce sterilized milk. It leased the plant and launched a pilot project, which turned out to be a success. Milkpak was therefore incorporated in January 1979 and began commercial production in November 1981. In 1984 Milkpak started marketing the Frost line of fruit juices which had been introduced a few years earlier by Packages Ltd. Soon after, Milkpak bought the Frost brand name from Packages and in 1986 it accounted for 9% of Milkpaks total sales. In 1985 the company launched its own butter, and in 1986 it launched a sterilized cream product called balai and also a cooking oil called Desi Ghee. These products were sold under the brand name of Milkpak. Situation Analysis The environment in which businesses operate is dynamic, never static, that is it keeps changing. It is increasingly turbulent due to the era of change and uncertainty in which we live and is never stable. The pace of these changes is accelerating, which requires continual response from the business organization. In this section we will discuss some of the external factors and internal factors that influenced Milk Pak operations: Vision Statement of Milkpak The strategic priorities of Nestle Milkpak are focused on delivering shareholder value through the achievement of sustainable, capital efficient and profitable long term growth. Improvements in profitability will be achieved while respecting quality and safety standards. In line with this objective, Nestle Milkpak envisions to grow in the shortest possible time into the number one food company in Pakistan with the unique ability to meet the needs of consumers of every age group from infancy to old age, for nutrition and pleasure, through development of a large variety of food categories of the highest quality. Nestle Milkpak envisions the company to develop an extremely motivated and professionally trained work force, which would drive growth through innovation and renovation. It aspires, as a respected corporate citizen, to continue playing a significant role in the social and environmental sectors of the country. SWOT Analysis When making decisions it is very important for the business to consider the external environment as well as the firms existing resources. The SWOT analysis helps the management to set objectives and make plans to build up on the strengths, rectify the weaknesses, avail the opportunities and counter the threats. Strengths Milkpak had a high market share. Milkpak Ltd product line included diversified products. The strength of Milkpak is its identity. Extensive and continuous supply of milk from different sources. Milkpak distribution network grew rapidly between 1981- 1986. Within few years of its establishment it had sales offices in major cities of Pakistan. Milkpak had a reputation for consistent high quality for both consumers and the trade. Milkpak limited was owned by one of the leading industrialist of Pakistan i.e. Ali Group. Milkpak had a shell life of up to 3 months and did not require refrigeration. Milkpak also catered to low income consumers. Milkpak taught it suppliers scientific methods of livestock care and breeding. This made it milk supplies more reliable and of high quality. Weaknesses The total processing cost was around 25% of the total product cost. Packaging material which were heavily taxed by the government lead for another 26%of Milkpak production cost. Milkpak limited lacked required technical knowledge and expertise to expand the business. New brick pak was introduced in 1986, this required extra packaging material and therefore lead to an increase in Milkpak cost. Opportunities Government fostered the UHT milk industry by removing duties on import of machinery for dairy products. An opportunity of a joint venture with a foreign company. Training of Milkpak employees if Milkpak had a joint venture with Nestle or Friesland. Threats Government sanctioned a number of additional plants which lead to the possibility of substantial overcapacity in the market. Chaudhri Industries entered the market in 1986 with a competitive advantage i.e. brick packaging. Because the industry risked facing overcapacity, it was important for Milkpak to increase its market share. If it did not, its competitors could have dominated the market. Many companies were planning to enter the dairy industry. Between 1960- 1970, 23 dairy processing plants were establish out of which at least 15 plants closed due to lack of poor management and infrastructure, lack of milk supply and extensive refrigeration requirement. A joint venture with a large multinational might dominate Strategy of Milkpack In Pakistan, one of the major problems facing all milk producers and distributors was the discrepancy between the demand and supply of milk. There was a marked seasonal demand for milk, which peaked during the summer and slowed during the winter months. In contrast, the production of milk was highest during the winter months i.e. December to May, also known as the flush season and was lowest during the lean season, i.e. from May to August. To alleviate the problems brought about by the seasonal mismatch between supply and demand for milk during summer, the Pakistani government adopted liberal policies toward the import of milk products. This meant that Milkpak now had to compete with foreign markets alongside local milkmen who supplied raw milk. Milk powder became a popular import and by 1986 was making up 30% of all milk supplies in Karachi. The problem of seasonality meant that during the lean season Milkpak faced a shortage in demand, and during the flush season the company had to refuse milk supplies. The company needed to gain some knowledge and insight regarding how to operate in an environment where demand and supply were so seasonal. Furthermore, Milkpak marketing managers were reluctant to promote Milkpak heavily during the flush season for fear of creating demand in the lean season which they would not be able to satisfy. Although they were committed to increasing UHT milk sales, the UHT business was a very high volume and low margin business, where the technology for manufacturing UHT milk was considered very expensive. To counter the problem of milk shortages during the lean season it was possible to add milk powder to increase overall output volume. However, since the milk powder itself would be imported, this was an expensive option which also resulted in providing competitors with business. Milkpak also encountered some difficulties in marketing its product. A major challenge which the company faced was in positioning the milk. It was difficult to introduce the idea of long-life milk to their target market, especially since this milk did not require any refrigeration. At that time the market was mainly accustomed to buying small amounts of raw milk on a frequent basis, which needed to be stored in cool conditions. Another concern which consumers had was that the Milkpak brand contained preservatives, or were perhaps not genuine because it contained no cream. Milkpaks success with UHT milk encouraged a number of other competitors to enter the market. Some of these competitors were short lived and left the market soon after facing financial difficulties. Others were more sustained, such as Milko, Pakistan Dairies and Chaudhuri Dairies. All these competitors had some advantages over Milkpak, either in terms of more experience, better distribution networks, or more convenient packaging. Furthermore, the government was now encouraging companies to enter the market by making exemptions on the import of machinery for dairy plants and by providing low cost financing by several government agencies. The government had also sanctioned a number of additional plants which would be in working condition soon. The concern now was that the UHT milk industry would be facing a substantial overcapacity. It was thus decided that finding an appropriate joint venture partner would be a viable solution to the problem of growth for Milkpak. As it would provide Milkpak with the opportunity to obtain new capacity, expertise and technological knowledge which was very much required. And also that Joint venture with any of the competing firms would possibly wipe off the competition from the market. In assessing Nestle as a joint venture partner, there were many advantages to both Milkpak and to the Pakistani industry as a whole. However, the company still faced certain drawbacks. Both companies were likely to be concerned about management control of the operation. Another point which needed to be settled was what products were to be manufactured and where they would be produced. Mission statement Nestlà ©s mission is to provide the best food to people throughout the world. Objectives and core values Lead a dynamic motivated and professional workforce proud of its heritage and bullish about the future.  · Meet the nutritional needs of consumers of all age groups from infancy to old age, from nutrition to pleasure, through an innovative portfolio of branded food and beverage products of the highest quality.  · Deliver shareholder value through profitable long-term growth, while continuing to play a significant and responsible role in the social, economic and environmental sectors of the country. Development of strategy There are many models for the development of strategy i.e. Potters generic strategies. There are 3 generic strategies of potter Cost leadership Differentiation Focus Anssoff Matrix Provides the basis for an organizations objective setting and sets the foundation of directional policy for its future (Bennett, 1994). The best selection for Milk pack is cost leadership. For this purpose Milk pack needs to outsource it non core activities. The major risk of outsourcing is that you may not be building the value of your company in terms of personnel, in-house knowledge, and infrastructure. In this case, the value of an outsourcing agreement with a provider will be less effective than an internal department. Implementation plan for strategy Strategy making needs person with vision whereas strategy implementation needs a person with administrative ability The implementation plan can be divided into many parts Project Implementation requires the management to have a firm grasp of the strategy to be implemented. Project management involves recognition of critical success path. With all the activities lying in the critical success path will then be given significant importance. If a project needs to be implemented in time, then all the activities lying on the critical success of must be performed on time. Procedural Implementation means that milk pack has to bring change in its value chain. The value chain describes all the core activities of the business. After all the core activities of the business have been recognized, support activities can be removed or restructured. Resource Allocation is the most important part of the strategy. If proper allocation of the resources is not made the strategy might not be implemented. Before choosing a strategy for implementation the company carefully analyses all its resources and then allocates some resources for implementation of the strategy. For the strategy of outsourcing to work it is necessary that Milkpak is able to find a suitable company to outsource. This requires a lot of time and effort, appropriate resources and time allocation needs to be made. Structural Implementation is necessary if the company requires a change in structure to support the strategy. Without the proper structure for the strategy, the strategy is bound to fail. Functional Implementation means the division of objectives of strategy into functional achievable and goals i.e. budgets. This is the implementation of the strategy at grass root level. Behavioral Implementation suggests a change in the culture of the organization. The people of the organization need to accept the change in strategy. If the people are working hard to implement the strategy then there is a good chance that the strategy will be successfull Conclusion This case study shows how a relatively small company in a developing country made an error by choosing a wrong strategy and powerful and aggressive joint venture partner. Milkpak wanted to retain control and majority ownership of the joint venture but Nestle, although having an initial stake of only 49%, managed to increase it by forcing new technologies and acquisitions into the partnership. The Ali Group could not keep up with these expenses and Nestle thus raised its participation to 67%, relegating the Ali family to the role of spectators. Friesland would have been a much better partner due to its smaller size. They efficiently co-operate with local companies in many countries, letting them to conduct the operations without trying to take over their partner. Unfortunately, they committed some important mistakes during the negotiations, like not allowing the Milkpak management to see their milk powder factory, thus leading Milkpak to believe that they were trying to hide technolog y from them. On the other hand, Nestle swiftly sent one of its vice presidents to Pakistan, showing respect for Milkpak. This senior executive proved to be very familiar with this kind of operations and he flattered Milkpak, admiring the quality of their products. Thanks to this smart negotiation, both emphasizing their experience in operating milk powder factories in Asia and showing deference to Milkpak, Nestle won the deal. This shows how much it is important to know the culture of the persons you are negotiating with, in order to be able to adapt. Failure to do so may lead to an unfortunate outcome.

Comparison between Salazar and other Authoritarian Regime in the era

Estado Novo or simply the New State was established after the overthrowing of the first republic in 1933. The second Republic was established by Antonio de Oliveira. This authoritarian regime adopted an integral orientation totally different from what characterized most of the fascist states in Europe. The basis of his authoritarian rule was on the premises of economic and political stability; he instituted major reforms which greatly privileged the people in the upper classes to the disadvantage of the poor section of the society. The regime that Salazar established was more inclined towards the church and there was much influence from it, perhaps this emanates from the fact that he was a strong catholic himself. It has been described as a nationalist political regime which was almost similar to the one established hy his italian counterpart , Benito Mussolini. The regime was nevertheless different from the Mussolini Fascism because of its different and less totalitarian leanings. His State was basically founded on the Catholicism and the Anti-communism ideologies. Salazar did not claim in developing power for his regime with the same degree as fascist did (Cook, B 2001) One of the outstanding difference between Salazar and other dictators is that he did not intiate the cult of personality instead he is more recognized for his mere simple and ascetic manners. â€Å"his one party system was based on a different premise to those of Germany and Italy,the ruling party Unicao Nacional was not intended as a radical means of reshaping political view and mobilizing political opinion rather it was a device to create consensus or to demobilize politics altogether. (Lee,Stephen 2000) The origin of Salazar and Hitler’s regimes is coincidental, Hitler and Salazar arose to power on the same year and precisely the same month, the two dictators’ ascension to power was seen by many as the hope of their nations. The two leaders had the same agendas but none seemed to be fascinated by the other. During the Second World War Portugal chose to remain neutral and safeguard her interest both locally and internationally. Her support for either of the sides would have threatened it own existence and the colonies it owned overseas. (Stanely, G 2008) Perhaps the common factor that the two dictators shared during this war period was the hatred towards soviet communism, they felt that rise of communism would be a great threat to the capitalist attitudes adopted by their regimes. (Lieitz, C 2000) notes that the two leaders worked very hard towards frustrating Soviet attempt to spread their communism ideologies to the different parts of Europe. Salazar and Franco of Portugal had a common fear of the Anglo-Russian agreement and the relationship that Russia was having with the United Nation. As time went on the two dictators greatly depended on Germany for trade as this was a very important element for their retention of their power, they felt that the rise of communist power would have a great influence and this would ultimately jeopardize their regimes. (Cull, N Holbrook, D, Welch, D 2003) Stanely, G (1987) attribute Salazar regime survival in power to his manipulative ability where he gave some fictitious power to some of the institutions, elections continued to be held where president was elected but he continued to control the most powerful office on the land, Stanely, G notes that Salazar allowed kept some kind of constitution dispensation something which was totally different with Franco’s regime. According to Stanely and Paney this â€Å" enabled Salazar to the degree of opprobrium suffered by the Franco regime in 1945†(p631). Despite being a dictator he was able to penetrate the walls made by the international community barring dictators the limelight enjoyed by the democracies especially in the western world. (Christian, L 2001) Despite the fact that Salazar wanted Portugal to thrive economically he has been described as having established a traditional and conservative regime. Compared to what Mussolini and his Germany counterpart achieved he fell short of industrializing his country. He had no ambitions of expansion â€Å"Portugal has no need for wars, usurpations or conquests† (Lee, Stephen 2000). Portugal seemed more satisfied with what they had explaining the reason why Salazar felt they should first preserve what they had acquired in the past, this contradicted with Hitler and Mussolini who felt that expansion was the only way to consolidate power. Salazar regime has been described as one of the milder dictatorships in the period after the two great wars. The carefully adopted policy initiated and approached by Salazar explains why his regime outlived the other right wing authorities but this longevity has been greatly attributed to the country’s delay in democratization.

Topics W / Statistics for a Factual Argumentative Essay Ideas

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Frederick Douglass And Frederick Douglass Analysis

Frederick Douglass’s speech The Meaning of July Fourth for the Negro and John C. Calhoun’s Speech on the Reception of Abolition Petitions have some similarities and differences in the argument about slavery and its destiny with America. They both talk about slavery but in different ways. Douglass argues against slavery addressing that the signers of the Declaration of Independance put the interests of a country above their own and urges his listeners to continue the work of these great men who brought freedom to this land. While Calhoun argues for slavery responding to anti slavery petitions sent to the Senate by abolitionist groups, and unlike most southern politicians, Calhoun thought white southerners needed to stop apologizing for†¦show more content†¦Seventy-six years, though a good old age for a man, is but a mere speck in the life of a nation†¦ There is hope in the thought, and hope is much needed, under the dark clouds which lower above the horizo n. Douglas is starting to pave the way for his argument on slavery. He then starts on the American Revolution and their fight for freedom under the tyranny of British rule. He reminds the audience that, in 1776 many people thought it was dangerous to revolt against the British. Later in 1852 though, â€Å"to say now that America was right, and England wrong, is exceedingly easy.† In much similarity he states that in 1852 many people consider abolitionism a dangerous political stance. Douglas then implies that future generations will consider his stance reasonable. Douglas then goes on to the real purpose of his speech arguing about slavery and why its wrong. One of the key differences between Calhoun and Douglass is that douglass was more fiery when it came to giving speeches. For example, At a time like this, scorching irony, not convincing argument, is needed. O! had I the ability, and could I reach the nation’s ear, I would, to-day, pour out a fiery stream of biting ridicule, blasting reproach, withering sarcasm, and stern rebuke. For it is not light that is needed, but fire; it is not the gentle shower, but thunder. We need the storm, the whirlwind, and the earthquake. What, to the American slave, is your 4th ofShow MoreRelatedAnalysis Of Narrative Of The Life Of Frederick Douglass1450 Words   |  6 PagesReid Champlin Mrs. Stack AP English, Period 7 14 August 2015 In His Own Words: Analysis of The Narrative of the Life of Frederick Douglass They say that one can never fully understand a situation until he/she is put into that scenario themselves. Too often, history is written by those who have only read and researched the issues, remaining distant and objective to get all the facts straight. 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