Rewrite Arla Foods

Corporate Governance:

The dairy companies comprise different customers: industry customers, including baby food manufacturers, retail customers, supermarkets, and foodservice customers, including restaurants and hotels. Four significant factors enhance governance in dairy industries to create new categories. They include wellness derived from weight management attributes, gratification derived from attributes such as taste, convenience derived from attributes such as portability, and safety derived from attributes like certification. Also, the company has a self-governing model, which is associated with the supply side.

Value chain:

Arla was established in dairy Cooperative known as Arla Mejeriforening. A series of border acquisition occurred, leading to consolidation into Arla Food. Arla joined venture with China Mengniu Company. Also Arla merged with Milk Link, the largest milk cooperatives in the United Kingdom. The company earned a considerable profit worth DKK 63.14 billion in the year 2012. The company had products in thirty countries and marketing its products in more than one hundred countries.

Core competences:

Developing local sales and marketing infrastructure, build local partnerships, and acquire local diaries and production facilities. The company shall also make a strong presence in chosen markets from among one hundred countries where it distributed its products.

Objectives:

The structure had to be compatible with the strategic plan of the year 2017 concerning the existing core market in Northern Europe. The new organizational structure ensures that Arla has the right competitive stance to achieve its cost leadership, seeking differentiation, and finding its niche. Also, the new organizational structure had to establish dairy categories established from local resources and marketable globally over time, and the company is determined to peruse a hybrid of global and local strategies.