SERVICE MINDSET AND BUSINESS RELATIONSHIPS

Executive Summary

This study focuses on Arla foods one of the major producder and distributor of diary products. It will cover all the aspects required for an organisation to market its product in a global market like shareholder behaviour, market environment, SWOT analysis and Arla foods design evaluation. It is important for Arla foods to address the weaknesses in forecasting demand and budget planning. Different approaches for service delivery, such as internet-based platforms and partnerships with other entities, provide flexibility. The organization's dedication to sustainability and innovation is also discussed in this report.

Introduction

Arla foods is a multinational organisation based in Denmark. Across the globe Arla Food is considered the fifth biggest dairy company and in the United Kingdom is the largest producer of dairy products. The organisation was formed in the year 2000 when a merger took place between the Swedish dairy cooperative named Arla and the Danish dairy company named MD foods. Arla food is a producer of dairy products and supplies milk, milk powder, yoghurt cheese and other dairy products (Sumaiya, 2023).

Arla foods exists for maximizing the value of milk by ensuring sustainable farming practices and in delivery a good quality of dairy products for consumers globally. The organisation aims to be a leader in dairy world wide, it is committed for a sustainable and responsible farming. The vision of the organisation is to make sure for a long term innovation of the dairy industry. The mission of Arla foods is to create opportunities in the world wide market. The organisation is dedicated in producing nutritious and sustainable dairy products in continuously improving the operations for meeting the needs of consumers catering both its production and the environment. The objective of Arla foods is to make sure about the profitability and prosperity of their products by ensuring high quality and sustainable dairy products (Sumaiya, 2023).

This report will descridbe how Arla Food is progressing with social,ethical and environmental commitments. The purpose is for providing transparent and balanced information about the goals of Arla Food.

Power-Interest matrix showing stake holder analysis for Arla food

Marketplace overview/context of organisation

SWOT analysis draws out both the external as well as internal factors of an organisation, the purpose of this analysis is for the organisation to make the right decision. This is identified by the available opportunities and threats. Porter’s five forces is helpful for a organisation for helping them understanding the competitive dynamic of the organisation and make a more informed strategic decisions. The PESTEL analysis assesses the impact of political, economic, social, technological, environmental and legal factors to help Arla Food for identifying risks and opportunities for a strategic planning and working in external influences. SWOT analysis is helpful for Arla Foods in identifying both intenal like strengths and weakness and external factors like opportunities and threats.

Strengths

• Arla foods has a strong base of supplier regarding raw materials enabling it for overcoming any supply chain problems.

• The company has expanded by entering new markets around the world helping them in building new revenue stream.

• Arla foods has built a strong distributor and dealer relationship where dealers not only promote the product of the company but invest in training sessions where the sales team can understand the product in a better way and get the maximum benefits out of the products (Brinch-Pederson and Moller, 2022).

• The company has a highly skilled workforce through its training and learning programs. This skilled force results in a team that can motivated for achieving more.

Weakness

• Financial planning in Arla foods is not being done in a proper and efficient way. It is shown in the current asset ratio and liquid asset ratio that Arla foods can use its revenue in a more efficient that what it is doing at the current situation (Becker and Logeais, 2020).

• Arla foods has a poor decision making process when it comes tto demand forecasting which leads in a high rate of opportunities that are missed like timely product launches and inventory management as compared to its competitors.

• Arla foods need to invest more in new technologies. In the current situation the investment in technologies does not match the company’s vision for unlocking possibilities in dairy and innovations in sustainability (Golovina et al, 2021).

• Arla foods has lost market share due to not handling the challenges by the new entraints in the market. For overcoming these obstacles Arla has to make an internal feedback system that obtains input from its sales staff.

Opportunities

• Arla may be able to enter new markets due to its current changes in consumer behaviour. consumer behaviour offers the company a good chance for diversifying into new product categories and generate new revenue streams.

• New technology gives a chance to Arla food for using a differentiated pricing approach in the new market. In this way the business will attract new customers with more economical offerings while retaining its existing customers.

• Reduced shipping costs can also result in decreased transportation costs for Arla's products this gives the company the option of increasing profitability and expanding its market share (Lizikeviciute-Grisine, 2020).

Threats

• Different nations have different liability laws and Arla Foods may be exposed to several claims of liability depending on the change in policies in those markets.

• Shortage of skilled workers in particular area of the world like Sweden can lead to steady growth for Arla foods in those markets.

• Raw material availability challenges can pose a threat to the profitability of Arla Foods (Lizikeviciute-Grisine, 2020).

Evaluation of service design and delivery

Arla Foods, an international dairy cooperative would likely be judged on factors such as the quality of product, logistic efficiency, customer service, and innovation in response to market developments. While dairy products are perishable, the efficiency of their supply chain from farm to consumer is essential.

The service design of Arla Food may be examined on the basis of how well it satisfies the needs of its customers, including environmentally friendly practices, and adapts to changing customer preferences. Effective service design is also improved by innovation in product creation, packaging, and marketing tactics. Delivery methods like logistics and distribution networks are also important to consider. In the food industry, timely and dependable delivery is very necessary. Any shortcomings in these areas could affect the loyalty and confidence of customers. Distribution and logistics is important for Arla foods to make sure that goods reach on time to customers (Akiko Nakayama, 2023).

Effective delivery methods, which include strong logistics and distribution networks constitute key elements in the food sector that have a big impact on the satisfaction of customers and performance of the business. Arla foods deal in perishable products for which prompt delivery is important. Arla foods uses different delivery methods for meeting the diverse needs of its customers such as

Physical delivery

Using retail outlets and distribution networks. Arla foods can easily be found in supermarkets, grocery stores where customers have easy access to Arla foods products. The company also uses extensive distribution networks for making sure that the products are reachable to customers in a timely manner (Mozaffari and Nouman, 2021).

Online platforms

Arla foods uses it official website for selling products directly to its customers, online platforms also includes partening with e-commerce platforms.

Customer services

Arla foods operate call centers for handling customer inquiries, solve the concerns of customers, address product information or any other type of issues that the customer may face (Emilsson and Fornander, 2023).

Use of technology

Arla foods have a mobile application that allows customers for placing orders or tracking deliveries.

Arla foods like many international companies engage in third parties for different aspects of its business operations. Some areas where Arla foods use third parties are

Distruibuiton and logistics.

Making sure for an efficient transportation and delivery of products Arla Foods may work with third party distribution companies for making their supply chain strong. Another third party that Arla foods work are technology providers for maintaining its digital platforms and mobile applications. For marketing and advertising campanings the company uses advertising agencies for enhancing its brand visibility.

Arla foods partner with third party supplier for packaging and design making sure that the quality and sustainability are met. Being an important contributor in the international dairy market, Arla Foods may evaluate its level of success by considering things like share of the market, growth in revenue, product innovation, and customer satisfaction. Arla foods financial development and health are shown by financial reports. Arla foods performance is also assessed in accordance with its adaptability in adjusting to market developments, efforts to promote sustainability, and investing in innovation and technology. Significant measures would also include a review of supply chain efficiency, cost management, and international market expansion plans (Wilson, 2020).

In my view Arla foods have place a strong emphasis on quality product, expanding in international market and sustainability. If Arla foods commits to these objectives it is likely that the company will achieve its goals. For getting the most accurate evaluation it is better to refer Arla foods most recent reports and official correspondence to get a detailed information on the operations of the company and to its stated objectives.

Conclusion

In conclusion, the study discusses about Arla foods, shareholder analysis and market place context. The study also highlights SWOT analysis and evalusaiton of Arla foods in terms of design and delivery. The main strength of the company was found to be its commitment to sustainability which has a positive feedback on international markets.

References

Akiko Nakayama, K., 2023. Perceptions of Swedish Dairy Companies and Their Role in Sustainable Development.

Becker, T. and Logeais, M., 2020. Circular Business Models in the Dairy Industry. Bachelor’s Programme in International Business.

Brinch-Pederson, T.M. and Moller, M.C.G., 2022. Sustainability in Business Strategies.

Emilsson, A. and Fornander, M., 2023. The Impact of Data-Sharing Technology on Farmers’ Sustainability Work.

Golovina, S.G., Mikolaychik, I.N., Poltarykhin, A.L. and Zhuravlev, P.V., 2021. The impact of human Capital on The success of an agricultural Cooperative (example of ‘Arla foods’). Siberian Journal of Life Sciences and Agriculture, 13(2), pp.262-283.

Lizikeviciute-Grisine, J., 2020. Shared Value in Sustainable Development Goals: The case of Arla.

Mozaffari, A. and Nouman, M., 2021. Exploring the Drivers and Moderators of Business Model Innovation: A Case Study of the Dairy Industry.

Sumaiya, F., 2023. An elementary study on how Arla foods influence employees’ preferences in a culturally diverse workplace.

Wilson, R., 2020. Delivering sustainability improvements within a dairy cooperative. Journal of Supply Chain Management, Logistics and Procurement, 2(4), pp.371-381.

Important Notes:

This paper focuses on Arla Foods, one of the major producers and distributors of dairy products. It will cover all the aspects required for an organisation to market its product in a global market, like shareholder behaviour, market environment, SWOT analysis and Arla Foods design evaluation.

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