Business Essays Heineken Beer Market

Business Essays Heineken Beer Market Heineken Beer Market Executive Summary Chapter 1 analyze threats Heineken is facing and opportunities the company can get from the beer market by using two model PESTLE and Porter Five Forces. PESTLE describe what difficulties come from external environmental factors that the company is facing and Porter five force analyze the threats as well as opportunities of Heineken in suppliers, buyers, competitors, substitutes and new entrant. OT factors in SWOT analysis also use to define in chapter 1 for threats and opportunities of the company. Chapter 2 describes strengths and weaknesses in the company operation through the analysis of internal environment such as company resources, organizational structure and culture. The resources with include tangible, intangible, management capability and marketing which used to identify what the advantages Heineken are managing for the performance of their operation. SW in SWOT also use at the same time to analyze strongly what strengths and weaknesses Heineken is taking. Chapter 3 assesses how Heineken perform in term of effectiveness, efficiency and return to shareholders based on efficiency ratios and performance investment ratios. This assessment identifies the market share and market growth of company in the market. Chapter 4 finding the options those are available to the company and recommendation of the most appropriate ones for future strategic direction. Chapter 5 finding recommendations for structures, systems and policies which use to implement these strategies successfully. Chapter 6 the outline of my assessment of the usefulness of strategic management models for Heineken analysis. How PEST, Porter Five Force, SWOT, resource-based and financial analysis use to be described for my analysis successfully. Introduction Today beer is widely available and enjoyed in most countries and cultures around the world. Heineken is one of the largest companies in a global network of distributors and breweries. In addition, Heineken owns and manages one of the worlds leading portfolios of beer brands in terms of sales volume and profitability. Moreover, the company has been able to remain one of the worlds leading consumer and corporate brands for more than 130 years. It became Europes favorite beer brand successfully exported to every corner of the world. Chapter 1 Analysis of the external general PESTLE model Political Beer is a kind of drink that the government excises significantly because it contains alcohol which is addicted people. Therefore, this will affect Heineken Company in sale volume in the market. With internationalisation and globalisation, more and more brewers are hunting for new markets, governments on the other hand with and intention to gain maximum profit as well as get empathy on ethical grounds are imposing heavy taxes on liquor and beer imports. As a result, this fact will bring threat for Heineken. For example, recently drinking alcohol is prohibited on public transport in London. This hence will impact on the beer market because people want to enjoy their beer not only at home but also at public where they can have fun time with their friends. Economic Heineken has many operations in mature – mainly Western European and it is reported in Euros. Therefore, the currency fluctuations could create threat to the overall company results, especially relating to the US dollar. However, Heineken has a clear policy on hedging transactional exchange risks; this would postpone the impact on financial results. Nowadays, unemployment has risen due to recession in the market and this will result in more people will choose some cheaper alternative. As a result, Heineken with premium price will be impacted for that. This also brings threats for company in distribution aspect. Social culture Nowadays, beer is not only for men enjoy it but women also drink beer to enjoy its taste. Furthermore, life style of the new generation has become very fast and different, which result in lack of time in today life. Thus the consumption at bars is declining. This means that the beer market will be affected by this as well as Heineken Company, this will lead to go down in sale volume. Furthermore, demographic changes would influence the company a lot. For examples, in China where the population is going up rapidly and this combined with consumer having increasing amounts of leisure time. Therefore, these would lead to consumption of beer in China grew by 33.56% between 2000 and 2006. China now has overtaken the United State to become the largest national beer market in the world. As a result Heineken Company will have significant sale volume in this market. Technology Now it is hard to find a part of the company’s business that doesn’t use technology. Therefore, technology is developed will impact the company as well as beer industry. Information technology security upgraded has created opportunities for Heineken’s worldwide business operations, and connectivity in the company and with outside partners is increasing. For example, the recent advancement in the technology has opened huge markets for organizations to access world population without any barriers. This can be taken as a chance to reach out to almost every location on the globe. Hence Heineken will open their market in many locations in the world. Porter’s five forces model The bargaining power of suppliers The suppliers of raw materials to Heineken Company are mainly farmers. Therefore, the threat for power of supplier is high. The bottle supplier for Heineken is provided by Heye Glas Nederland which is fully supplied the green bottle for the worldwide distribution of Heineken beer. In the past, Heineken kept only 33% its stake in Heye Glas in order to secure the supply of high quality export bottles at a lower cost to meet the needs for demand but now Heineken has kept 100% stake in 2002. Beer is produced by water, barley, hops and yeast. These ingredients are supplied by farmers. Heineken also mentioned that competition for agricultural products from the biofuels industry that is affecting their costs. The bargaining power of buyers The buyers in this industry have many choices as there are many companies serving beer. This will increase the choice of the customer and hence the threat for power of buyers is high. For example, for serving customer at the pub, there are a lot of beer brands for them to fit their taste such as Guiness, Carlsberg, Tiger. Therefore, buyers now have a choice to choose the one they like. As a result, choosing of customer for what kind beer they want to drink will bring threats for Heineken. The threat of potential new entrants Nowadays, an explosion of smaller brewers has entered the market during the past decade that making the industry much more competitive. Heineken is one of the largest brewers in the world and they have to share market with other brewer. The barrier in the beer market is low. Therefore, the threat of potential new entrants for Heineken is high. This will make Heineken considering to create innovation or uniqueness into their product that can sustain competitive advantages in the beer market. The threat of substitutes Beer is a kind of beverage which contains alcohol. However, people can switch to drink wine which also is alcohol drink. Customer’s taste is not similar so that they have right to choose what they want to enjoy, so this will affect the beer market as well as Heineken Company. As a result, the threat of substitute for beer market is high. The extent of competitive rivalry Heineken has achieved the economy of scale in the market especially in Europe. It holds about 30% of market share in European beer market. Since the beer market is growing, so the competitors will try to attain their growth targets. The large brewer like Heineken tends to enforce their own strategies to the beer industry and due the economies of scale they will produce higher quality and unique products which can make their own place in the market, hence keep themselves growing to achieve their target. Chapter 2 Internal analysis of the company Analysis the resources Tangible: Since Heineken know that their plant and equipment is a key for company production, they invest so much in the infrastructure to make sure that their operation is working efficiently. For example, Heineken have four breweries in Russia, all those use KHS Till plant technology. This equipment at Heineken’s packaging can processes 50 liter kegs in addition to 30 liter at an output of up to 140 kegs an hour. As a result, the two-lane machine can operate with one racking, six washing and sterilizing stations. Intangible: brand name is most valuable asset of the Heineken Company, they has built this name Heineken with premium brand. The company recognizes that brand is very important key for them to develop a strong presence globally in the beer market so that Heineken have a lot of marketing activities for its brand name. Furthermore, branding is also a highly defensible competitive advantage for Heineken; this would bring strength to company expansion. Hence Heineken Company can stretch their production internationally and add more money for company. Management capability: Heineken implemented a number of new initiatives in the area of leadership development in 2004. One is a new leadership competency model that defines behavior expectations from all senior managers at Heineken. The model takes Heineken company ambitions and values as a starting point and translates these into the leadership behavior required from senior managers. With marketing differentiation using different message within normal media advertising can also have differentiating effect. This differentiation will bring strengths for Heineken. When most advertisers are pursuing essentially the beer market with the same message like showing gregarious groups of males in public houses having an enjoyable night out. In the other hand, Heineken managed to differentiate its beer by using a series of advertisements employing humour and the caption Heineken refreshed the parts other beers can not reach. Organizational structure In 2005 Heineken announced that it was created a new top management structure, this would drive and support growth as a global organization. In order to connect functions, operation and finance in a more effective way, the company create a new more streamlines Executive Board. Hence change would lead to create strengths for operating regions and global functions. Furthermore, Heineken has grown substantially over the past four years. The new structure is better suited to the present organization and ensures faster decision-making. In the beer market where the consolidation process is accelerating and rapid introduction of innovations is essential, this is crucial to the achievement of Heineken’s long term ambitions. Culture Heineken is proud of they are one of the world’s great beer companies. Hence their culture will reflect the company view and values. These values create so many strengths for company to develop their environment within the company. Heineken based on the value that they respect their employees, business partners, customers, shareholders and all others who are connected to the company. Furthermore, Heineken make life more enjoyable by bring enjoyment to life, they also encourage this core value within the working places and atmosphere within the company. In addition, company has a fundamental belief in the concept and delivery of quality, it is also reflected in their other activities such as their social and employment policies. This will create benefit and value both for Heineken and their reputation. As a result, these values define Heineken corporate culture and working methods which help company to do the business successfully. Chapter 3 Evaluation of the company’s financial performance 2005 2006 2007 Return on investment (ROI) 14% 20% 12% Return on equity (ROE) 21.1% 27.0% 15.5% Net profit margin 7.05% 11.02% 7.72% Dividend payout ratio 25.8% 24.3% 42.5% Earnings per share 1.71 1.90 2.29 Return on investment of Heineken changed from 2005 to 2007. In 2006 return on investment have a significant improvement compared to 2005. The increasing of ROI show the efficiency which Heineken got profit from its technology investment. The reason for increasing ROI is that the company deployed Windows Mobile 5.0 in 2006 and has experienced significant business benefits. Company has improves account development by offering its sales representatives instant access to pricing, promotions, availability and accounts receivable data. Window mobile led to an average sales increase after deployment. The return on equity of Heineken rose 5.9% in 2006 then declined 11.5% in 2007.The reason for going up return on equity is net profit increasing. In 2005 Heineken’s net profit is â‚ ¬761 millions and it was increasing to â‚ ¬1211 millions in 2006.The rising of return on equity shows that the company have used money from shareholders effectively in manufacturing. However, declining return on equity indicated that the Heineken beer was getting more expensive to produce because the prices of raw materials and packaging have raised significantly, transportation, energy and pressure on labor costs were also expected in the beer market. In 2006 net profit margin of Heineken increased so much compared with 2005 and 2007. 11.02 % show that the company got more profit from their sale. In that year, the distribution of Heineken went up with 111.9 hectoliters in consolidated beer volumes. Furthermore, the company achieved the best annual growth rate for Heineken premium brand for many years with growth of 11.8 %. With these reason Heineken achieved their performance effectively. From the table above we can see dividend pay out ratio decrease 1.5% in 2006 and then increase so much 18.2 % in 2007.The reason of increasing is that Heineken  has been changing its dividend pay-out policy at the end of 2006. This means that it would up the amount paid to shareholders from 20-25% of net profit before exceptional items and amortization to between 30% and 35%. These proposals support Heinekens intention to preserve its independence, to maintain a healthy financial structure in order to grow the business both organically and through acquisition. Earning per share of Heineken increased from 2005 to 2007. These figures above show the company has maintenance revenue. Distributions of company increase every year so that Heineken could earn from 1 share which investors have invested. Moreover, increasing company market share by earning per share will indicate that the profit getting from every dollar invested can satisfy both Heinekens’ stakeholders and shareholder. Chapter 4 Recommendations on strategic options 4.1. To face with the alcohol pressure in the market, Heineken have the strategy to produce and sell beer in the ways that have a positive impact on society at large. With this strategy, Heineken promotes awareness of the advantages and disadvantages of alcohol, this also encourage informed consumers to be accountable for their own actions. For example, in 2006 the launching of the â€Å"Enjoy Heineken Responsibly† program was finalized. Therefore nowadays company is becoming more and more engaged to promote responsible consumption in partnership with consumers. By using this strategy as purpose the company does not want beer consumers to condone in any way the abuse of alcohol, particularly Heineken Brand. As a result this will lead to the Company get positive aspect for their production in the society. I strongly recommend Heineken should use this strategy. 4.2. For solving the problem with currency risks as the global market is unstable in exchange money, Heineken have a strategy on hedging transactional exchange risks which postpones the impact on company finance result. After deduction of dollar-denominated costs, a net cash inflow in US dollars remains. This cash flow is hedged in advance mostly by means of forward contracts. This reduces the volatility of export results and the â‚ ¬ cash flows due to short-term fluctuations in the value of the US dollar against the Euro. Transactions are entered into with a limited number of counterparties. I don’t recommend that the company use this strategy because the global market is unpredictable. 4.3. To intensify the international marketing Heineken have sponsored for a lot of entertainments activities in the world. This strategy would bring the biggest strengths for Heineken brand name. For example, company is a major sponsor of tennis champion such as Wimbledon, the US Open, Australia Open and the Shanghai Open. Moreover, the music plan adopted also remains a key sponsorship area for Heineken. For example, in Singapore has been successful that it is now used in other markets such as Malaysia and Thailand. Following with these marketing strategies on advertisement, the good thing company would show that Heineken always attend to social activities that mean they are not only bring enjoyable but also bring responsible to people around the world. I recommend Heineken should continue to pursue this strategy. 4.4. For adapting with development of technology, Heineken has a strict information technology (IT) security strategy to ensure confidentiality, integrity and availability of information and data. Furthermore, supporting and monitoring activities towards operating IT are being strengthened for the company. Moreover, IT contingency measures with regard to the partly outsourced IT shared service centre. The benefit of this strategy on IT would help Heineken to connect with so many operations around the world. I recommend company use this strategy. 4.5. By using brand strategy Heineken has built a strong portfolio that combines the power of local and international brands. Furthermore, the consistent growth of brand requires solid creative brand management which Heineken coordinate centrally. Company has developed and adopted brand strategy to get strengthening in the market share where there are lots of other brewers there. I recommend Heineken use this strategy. 4.6. To sustain with strong position in the beer market, Heineken have adapted competitive strategy in its management. By offering competitively priced and quality products, Heineken want to give consumers the premium product with reasonable price compare with other brewers. The management of company recognizes that to maintain Heineken’s sales, they need to focus on what consumer needs. In addition to look at the strengths and weaknesses of the competitor in the key business segments, competitive strategy would bring advantages for Heineken to compete with it’s competitor for attracting customers. Chapter 5 Recommendations on the most feasible strategic options 5.1. Responsibility is a heart of alcohol policy. Based on the alcohol policy adopted Heineken want to stress that their operations need to sustain dialogue with government and health organizations. The objectives of policy are to prevent misuse and abuse of alcohol. Furthermore, they want to ensure that responsible consumption of beer is socially acceptable. In addition to help Heineken be a truly sustainable business. With this alcohol policy would implement for succeed of strategy. 5.2. As consumer needs and tastes vary, Heineken must decide how much to adapt marketing strategy to local needs using a variance of standardized marketing mix adapted marketing mix, owing to the strong brand preferences loyalties that exist among the beer drinkers. Also, Heineken need to prioritize between global integration versus national responsiveness evident from decreasing sales in Holland, Rest of Europe, and Africa. Besides that the beer market is also attractive in terms of size and future growth, this approach would help the company differentiate Heineken beer with premium price compared with other beer brewer. 5.3. Data synchronization provider system can manage data behind the firewall while benefiting from one point of access to the Global Data Synchronization Network. This system would help to minimal disruption to Heinekens day-to-day operations. This integration is the first in a series of initiatives that Heineken International has been planning to accelerate its data synchronization activities through one central connection point. As a result, this system would implement highly for technology strategy to the company. 5.4. Using the branding policy the company has built brand recognition for long-term to differentiate the brand Heineken and be sure to add value to the product in order to get the brand loyalty. The brand policy also stresses for maintenance of beer quality or creates benefits for society and culture, and also provides an emotion to its consumers. This policy would add more value for Heineken Company in successful way. 5.5. Heineken has in place a strong competition compliance policy across the entire business and has a comprehensive code of business conduct for all employees. Furthermore, Heineken believes in the principle of fair competition. It will keep in place policies and programmes aimed at giving guidance to employees to ensure that they understand competition laws and act in compliance with them. Chapter 6 The assessment of the usefulness of strategic management models 6.1. To me, I find that the PEST analysis is a useful business measurement tool. It’s looking at external factors to the organization. Following the factors of the analysis, I can see the big picture of Heineken’s environment in which they are operating and the opportunities and threats that lie within it. By analyzing factors of PEST model I can understand the Heineken external environment and how the environment affects business performance of the company. 6.2. For me, I find that The Porter’s five forces tool is a simple but powerful tool for understanding where power lies in a business situation. This model is useful because it helps me understand both the threats of Heineken current competitive position and the strength of a position company are looking to move into. Furthermore, understanding the nature of Heineken competitive environment by using Porter’s five forces model, I can analyze what are crucially important for company to build long-term business strategy and sustain competitive advantages in the market. 6.3. SWOT analysis is a powerful model for me to understand Heineken strengths, weaknesses, opportunities and threats that company face. This model helps me to assess what Heineken can and can not do as well as its potential opportunities and threats. Therefore, I can know what may assist the firm in accomplishing Heineken’s objectives and obstacles. Moreover, the model is also useful in the way that it gives me the overall performance of Heineken. Hence I can analyze where the place the company get their position. 6.4. Resource-based theory is useful to me in the analysis of internal factors of Heineken following these reasons. Firstly, I can find the factors that deliver sustainable competitive for the company like branding. Secondly, the physical resources can give me a look about the efficient operation of Heineken in new technology they adopted. Thirdly, by understanding resource-based I can recognize that the way company has the dominant position in the beer market compare with other breweries. 6.5. Financial analysis method is useful for me to understand the measurement of performance of Heineken. Based on the ratio formula I can see how effectiveness and how the financial risk company was doing. Moreover, looking at the numbers which company has represented on the financial statement, I can know the market share that Heineken has positioned in the market place and the market growth company has developed. As a result of calculating for financial analysis for every year I can find how the company has operated in the effectiveness way. Conclusion I think that with all analysis include external and internal environments, company performance and all the strategy and policies Heineken adopted will help company to step more successful in the future. Although Heineken now have some troubles in production or distributions but the top management are considering creating flexible way to overcome them and then Heineken Company will keep their position is that one of the most largest brewers in the world. Appendix Key financial ratios 2007 IFRS 2006 IFRS 2005 IFRS Net profit margin 7.72% 11.02% 7.05% Operating profit margin 12.0% 15.3% 11.6% EBIT margin 12.2% 15.5% 11.9% EPS 2.29 1.90 1.71 Operating cash flow per share 3.53 3.77 3.82 ROE 15.5% 27.0% 21.1% Equity/ borrowed capital 0.85 0.74 0.62 Interest coverage ratio 22.7 19.7 14.8 Net Debt/ EBITDA 0.8 0.7 1.3 Operating free cash flow/ net debt 0.39 0.59 0.43 Cash conversion rate

Customer Satisfaction on Milk Products Essay

â€Å"Marketing is a total system of business, an ongoing process of: 1. Discovering and translating consumer needs and desires into the products services (planning and producing the planned products). 2. Creating demand for this product and services through promotion and pricing. 3. Serving the consumer demand through planned and physical distribution with the help of marketing channels. 4. Expanding the market even in the place of keen competition. † â€Å"Marketing is the process associated with promotion for sale goods or services. It is considered a social and managerial process by which individuals and groups obtain what they need and want through creating and exchanging products and values with others. It is an integrated process through which companies create value for customers and build strong customer relationships in order to capture value from customers in return. † The modern marketer is called upon to set the marketing objectives, develop the marketing plan, organize the, marketing function, implement the marketing plan or programme (Marketing mix) and control the marketing programme to ensure the accomplishment of the set marketing objectives. The marketing programme covers producer planning or merchandising, price, promotion and distribution. In short, modern marketing begins with the customer, not with production cost, sales, technological landmarks and it ends with the customer satisfaction and social well-being. Under the market- driven economy buyer or customer is the boss. Marketing has been viewed as an ongoing or dynamic process involving a set of interacting activities dealing with a market offering by producers to consumers on the basis of reliable marketing anticipation. 1. Marketing is a matching process by which a process by which a producer provides a marketing mix that meets consumer demands of a target markets within the limits of society. The process is based on corporate goals and corporate capabilities. Marketing process brings together producers and consumers the two main participants in exchange. Each producer or seller has certain goals and capabilities in making and marketing his products. He uses marketing research as a tool to anticipate market demand. Then he provides a marketing mix in order to capitalize marketing opportunity. An exchange or a transaction takes when market offering is acceptable to the customer who is prepared to give something value I return against the product so bought. Objectives of Marketing: 1. Increase in sales volume 2. Increase in net profit 3. Growth of the enterprise Marketing environment The term marketing environment relates to all of the factors (whether internal, external, direct or indirect) that affects a firm’s marketing decision-making or planning and is subject of the marketing research. A firm’s marketing environment consists of two main areas, which are: a. Macro environment On the macro environment a firm holds only little control. It consists of a variety of external factors that manifest on a large (or macro) scale. These are typically economic, social, political or technological phenomena. A common method of assessing a firm’s macro-environment is via a PESTLE (Political, Economic, Social, Technological, Legal, and Ecological) analysis. Within a PESTLE analysis, a firm would analyze national political issues, culture and climate, key macroeconomic conditions, health and indicators (such as economic growth, inflation, unemployment, etc.), social trends/attitudes, and the nature of technology’s impact on its society and the business processes within the society. b. Micro environment A firm holds a greater amount (though not necessarily total) control of the micro environment. It comprises factors pertinent to the firm itself, or stakeholders closely connected with the firm or company. A firm’s micro environment typically spans: * Customers/consumers * Employees * Suppliers * The Media By contrast to the macro environment, an organization holds a greater degree of control over these factors. Market segmentation Market segmentation pertains to the division of a market of consumers into persons with similar needs and wants. As an example, if using Kellogg’s cereals in this instance, Frosties are marketed to children. Crunchy Nut Cornflakes are marketed to adults. Both goods aforementioned denote two products which are marketed to two distinct groups of persons, both with like needs, traits, and wants. The purpose for market segmentation is conducted for two main issues. First, segmentation allows a better allocation of a firm’s finite resources. A firm only possesses a certain amount of resources. Accordingly, it must make choices (and appreciate the related costs) in servicing specific groups of consumers. Furthermore the diversified tastes of the contemporary Western consumers can be served better. With more diversity in the tastes of modern consumers, firms are taking noting the benefit of servicing a multiplicity of new markets. Market segmentation can be defined in terms of the STP acronym, meaning Segment, Target and Position. Segment. Segmentation involves the initial splitting up of consumers into persons of like needs/wants/tastes. Four commonly used criteria are used for segmentation, which include: * Geographical (e. g. country, region, city, town, etc. ) * Psychographic (i. e. personality traits or character traits which influence consumer behavior) * Demographic (e. g. age, gender, socio-economic class, etc. ) * Behavioral (e. g. brand loyalty, usage rate, etc. ) Target Once a segment has been identified, a firm must ascertain whether the segment is beneficial for them to service. The DAMP acronym, meaning Discernible, Accessible, Measurable and Profitable, are used as criteria to gauge the viability of a target market. DAMP is explained in further detail below: * Discernable – How a segment can be differentiated from other segments. * Accessible – How a segment can be accessed via Marketing Communications produced by a firm. * Measurable – Can the segment be quantified and its size determined? * Profitable – Can a sufficient return on investment be attained from a segment’s servicing? The next step in the targeting process is the level of differentiation involved in a segment serving. Three modes of differentiation exist, which are commonly applied by firms. These are: * Undifferentiated – Where a company produces a like product for all of a market segment. * Differentiated – In which a firm produced slight modifications of a product within a segment. * Niche – In which an organisation forges a product to satisfy a specialised target market. Marketing information system A marketing information system (MKIS) is an information system that is commonly used by marketing management to analyses and view information pertaining to marketing activities. As the label suggests, an MKIS is a computer-based information system therefore used to input, store, process and output marketing information. [12] An MKIS spans four subset components, which are detailed below: 1. Marketing intelligence system This sub-system stores information gathered from a firm’s marketing intelligence activities. Marketing intelligence consists of actions a firm would undertake within its own market or industry, geared towards information existing within its markets. This can be obtained via communication with suppliers, consumers or other bodies within a market. 2. Internal processes system The internal processes system catalogues all internal marketing processes within a firm. 3. Marketing research system This section of the overall system contains data from a firm’s marketing research activities. 4. Analytical system The analytical system is the only sub-system which does not store data or information. Its function is to analyze and process data from the other three systems, into reliable, timely and relevant information for the perusal and use of marketing management. Industry profile: In early 1940’s a farmer in Kaira district, as elsewhere in India, derived his income almost entirely from seasonal crops. The income from milk was paltry and could not be depended upon. The main buyers were milk traders of Polson Ltd. -a privately owned company that enjoyed monopoly for supply of milk from Kaira to the Government Milk Scheme Bombay. The system leads to exploitation of poor and illiterate farmers by the private traders. However, when the exploitation became intolerable, the farmers were frustrated. They collectively appealed to Sardar Vallabhbhai Patel, who was a leading activist in the freedom movement. Sardar Patel advised the farmers to sell the milk on their own by establishing a cooperative union, instated of supplying milk to private traders. Sardar Patel sent the farmer to Shri Morarji Dasai in order to gain his Co-operation and help. Shri Dasai held a meeting at ‘Samrkha’ village near Anand, on January 4, 1946. He advised the farmers to from a society for collection of the milk. These village societies would collect the milk themselves and also decided prices for that which would be profitable for them. The district union was also from to collect the milk from such village cooperative societies and to sell them. It was also resolved that the government should asked to buy milk from the union. However, the government did not seem to help farmer by any means. It gave the negative response by turning down the demand for the milk. To respond to this action of government, farmer of Kaira district went on a milk strike. For 15 days not a single drop of milk was sold to the traders. As a result the Bombay milk scheme was severely affected. The milk commissioner of Bombay then visited Anand to assess the situation. Finely he decided to fulfill the farmers demand. Thus their cooperative unions were forced at village and district level to collect and sell milk on a cooperative basis, without the intervention of government. Mr. Verghese Kurien had main interest in establishing union who was supported by Shri Tribhuvandas Patel who convinced farmers in forming the cooperative unions at the village level. ‘The Kaira District Co-operative Milk Producers’ Union’ was thus established in Anand and was registered formally under section 10 of Bombay Act VII of 1925 on December 14, 1946. Since then farmers are selling all the milk in Anand through cooperative union. In 1955 it was commonly decided the sell milk under the brand name ‘Amul’ At the initial stage only 250 liters of milk was collected every day. But with the growing awareness of the benefits of the co-operative-ness the collection of milk increased. Today Amul collect 50, 00,000 liters of milk every day. As the milk is perishable commodity it became difficult to preserve milk for a longer period. Besides when the milk was to be collected from the far places there was a fear of spoiling of milk. To overcome this problem the union thought to develop the chilling unit at various junctions, which would collect the milk and could chill so as preserve it a for a longer period. Thus, today Amul has more than 168 chilling centers in various villages. Milk is collected from almost 1097 societies. With the financial help from UNICEF, assistance from the government of NewZealand under the Colombo plan, of Rs. 50 million for factory to manufactory milk powder and butter. Dr. Rajendara Prasad, the president of India laid the foundation on November 50, 1954. Shri Pandit Jawaharlal Nehru, the prim minister of India declared it open at Amul dairy on November 20, 1955. KARANATAKA MILK FEDERATION Karnataka cooperative milk producers’ federation limited (KMF) is the apex body in Karnataka representing dairy farmers’ co-operatives. It is the second largest dairy co-operative amongst the dairy cooperatives in country. In south india it stands first in terms of procurement as well as sales. One of the core functions of the federation is marketing of milk and milk products. The brand â€Å" nandini† is the household name for pure and fresh milk and milk products. KMF has 13 mil unions throughout the state which procure milk from primary dairy cooperative societies (DCS) and distribute milk to the consumers in various towns/cities/rural markets in Karnataka. The first ever world bank funded dairy development program in the country started in Karnataka with the organization of village level dairy co-operative in 1974. The AMUL pattern of dairy co-operatives started functioning in Karnataka from 1974-75 with the financial assistance from world bank, operation flood II & III. The dairy co-operative were established under the ANAND pattern in a three tier structure with the village level dairy co-operative forming the base level, the district level milk unions at the middle level to take care of the procurement, processing and marketing of milk and the Karnataka milk federation as the apex body to co-operative the growth of the sector at state level. Cooperative of activities among the union and developing market for milk products is the responsibility of KMF, marketing milk in the respective jurisdiction is organized by the respective milk unions. Surplus/ deficit of liquid milk among the member milk unions is monitored by the federation. While the marketing of all the milk products is organized by KMF, both wit in and outside the state, all the milk and milk products are sold under a common brand name NANDINI. Company profile INTRODUCTION The Bangalore Milk Union Ltd. , (Bamul) was established during 1975 under Operation Flood II by keeping â€Å"Amul† as its Roll Model. At present Bamul has Bangalore Urban, Bangalore Rural & Ramanagaram Districts of Karnataka State as its area of operation for Milk Procurement and selling Milk in part of Bruhath Bangalore Mahanagara Palika (BBMP) area. Since its inception the Union is constantly striving further for dairy development and marketing activities in its milk shed area. OBJECTIVES * To organize Dairy Co-operative Societies at Village level and dissemination of information like good dairy animal husbandry and breeding practices & Clean Milk Production through Extension Services. * To provide assured market & remunerative price for the milk produced by the farmer members of the co-operative societies. * To provide technical input services like veterinary services, artificial insemination, supply of balanced cattle feed & Fodder seed materials etc., to milk producers. * To facilitate rural development by providing opportunities for self-employment at village level, thereby preventing migration to urban areas, introducing cash economy & opportunity for steady income. * To provide quality Milk and milk products to urban consumers at competitive prices. BACKGROUND On January 1st 1958 a pilot scheme to cater the Bangalore Milk Market, Department of Animal Husbandry, Government of Karnataka was started Milk processing facilities & Veterinary Hospitals at National Dairy Research Institute (NDRI). Later in 1962, The Bangalore Milk Supply Scheme came into existence as an independent body. With the great efforts by the then Hon’ble Minister for Revenue & Dairying, Government of Mysore Sri M V Krishnappa, A joint venture of UNICEF, Government of India & Government of Mysore was dedicated Bangalore Dairy to the people of Karnataka State on 23rd January 1965 by the then Hon’ble Prime Minister Late Sri Lal Bahadhur Shastriji. The Bangalore Dairy scattering over an area of 52 Acres of land, the Dairy had an initial capacity to process 50,000 liters of milk per day. Bangalore Dairy underwent a structural change in December 1975, handed over to Karnataka Dairy Development Corporation (KDDC). Rural Milk Scheme of Mysore, Hassan & Kudige Districts was started under Operation Flood-II and then transferred to Karnataka Milk Federation (KMF) in May 1984 as a successor of KDDC. To cater to the growing demand for milk by the consumers of Bangalore City, the capacity was increased to 1. 5 lakh liters per day under the Operation Flood-II during 1981 and later increased to 3. 5 lakh liters per day under Operation Flood-III during 1994. As per the policies of the National Dairy Development Board (NDDB), Bangalore Dairy was handed over to Bangalore Milk Union Ltd. , (Bamul) on 1st September 1988. The Union is capable of processing the entire milk procured, by timely implementation of several infrastructure projects like commissioning of New Mega Dairy state-of-the-art technology with a processing Capacity of 6. 0 Lakh liters per day, new chilling centers, renovation of product block etc. ,The milk shed area of Bamul comprises of 2611 revenue villages. As of now the Union has organized 1853 Dairy Co-operative Societies (DCS) in 2,245 villages, thereby covering 86 % of the total villages in these three districts. In these DCSs, there are 3,40,307 milk producer members. Among them 109834 members are women and 60,452 members belong to Schedule Caste and Schedule Tribes. The philosophy of this co-operative milk producers’ organisation is to eliminate middlemen and organise institutions owned and managed by milk producers, by employing professionals. Achieve economies of scale of rural milk producers by ensuring maximum returns and at the same time providing wholesome milk at reasonable price to urban consumers. Ultimately, the complex network of co-operative organisation should build a strong bridge between masses of rural producers and millions of urban consumers & achieve a socio-economic revolution in the village community. Bamul has been registered under MMPO by Central Registration Authority. Today, the Union has become the biggest Milk Co-operative Union in Southern India. Bamul has been certified for ISO 22000:2005 & ISO 9001-2000 for quality management and Food Safety Systems. In recognistion to these efforts and achievements, the National Productivity Council (NPC) of Government of India has conferred â€Å"Best Productivity Award† FIVE TIMES and â€Å"Energy Conservation Award† by Bureau of Energy Efficiency (BEE) to the Union. VISION, MISSION, OF THE UNION VISION â€Å" WISH TO GROW INTO A MODEL CO-OPERATIVE† bamul is biggest milk union in south india, fully owned and managed by milk producers of Bangalore rural and urban districts of Karnataka state. Since its incepection in 1975, union is constantly striving to further the dairy development and marketing activities in shed area. MISSION â€Å" USHERING RURAL PROSPERITY IN THE LIVES OF MEMBERS OF MILK PRODUCER† This co-operative milk producer’s orgation is to eliminate middlemen and organize institution owned by the milk producers themselves, by employing professionals, achieve economies of scale and to ensure maximum returns to the producers, at the milk producers, at the same time providing wholesome milk at reasonable price to urban consumers ultimately, the complex network of co-operative should build a strong bridge between masses of rural producers and millions of urban consumers and achieve a socio-economic revolution in the vicinity of the territory. MILESTONE: 2008 Commissioning of Channarayapatna Product Plant at a total cost of Rs. 72 Crores. * a) Launch of New products & new stunning packs (Sundae, Crazy Cone ice cream/Lite Skimmed Milk/ Cool Milcafe/Choco Milk Shake/Dairy Whitener) * b) Launch of Goodlife Slim in 1Ltr Brik. 2009 Gulbarga Dairy & Milk Marketing taking over by KMF 2009 Launch of Good Life variants in Cuttack,Orissa,Tiruchi(Tamilnadu) 2010 Peak Procurement of 41. 83 LKPD 2010 Starting of Procurement routes at N. R. Pura,Koppa Taluk(Chickmagalur District) 2010 Hosting of new KMF website wwww. kmfnandini. coop with online order facility. ORGANISATION STATUS The member producers and their Dairy Co-operative Societies (DCS) are the vital constituents of the Union and their progress is the judging yardstick on the efficiency of the Union’s operation. Hence the maximum importance has been given to their development. The Union is making intensive efforts over the years to organize DCSs in more and more villages of the three districts in the milk-shed area. Number of Functional DCS 1266 1301 1386 1433 1483 1547 1607 1657 1708 1761 1805 0 200 400 600 800 1000 1200 1400 1600 1800 2000 2000-01 2001- 02 2002- 03 2003- 04 2004- 05 2005-06 2006- 07 2007- 08 2008- 09 2009-10 2010- 11 Importance has been given to enroll more and more milk producers in the villages as members of these DCS’s. While enrolling these members, more emphasis is being accorded to enroll more number of women members and to organize more women managed DCSs under STEP (Support to Training and Employment Program for Women). It is heartening to note that there is an active participation of women/ weaker sections of the society in all the dairy development activities of the Union. They have become mainstay of all the developmental programs of the Union. This has resulted in the buildup of economical benefits to the most vulnerable sections of the rural mass. As on March 2011 in these DCS , there are 3,40,307 milk producer members are enrolled and out of which 1,09,834 are women and 44,202 members belong to Schedule caste and 16,250 members belongs to schedule Tribes. Total Milk Producers & Women Membership at DCS 185166 203831 275440 289095 297162 309597 321238 327176 325854 331544 340307 32827 38878 72220 81344 85849 91746 96653 99603 102842 105804 109834 0 50000 100000 150000 200000 250000 300000 350000 2000 -01 2001- 2002 2002- 03 2003- 04 2004- 05 2005- 06 2006- 07. 2007- 08 2008- 09 2009- 10 2010- 11 MILK PROCUREMENT The Milk produced by 92913 farmers at village level will be collected every day morning and Evening at DCS. Under Clean Milk Production programme, to maintain the freshness & quality of the milk 121 Bulk Milk Coolers covering 373 DCS of Total Capacity 1,59,000 Lts were installed at DCS level. During the year the Unions daily average milk procurement is 8. 47 Lakh Kgs, which works out to be 410 kgs per day per DCS. The milk procurement has increased by 2. 15 % when compared to the last year. Bamul is offering the most remunerative milk procurement price to member producers. The operational efficiency is reflected on procurement prices paid to the member producers. The average milk procurement price paid during the year was Rs. 19. 81 for every Kg of Milk supplied to the Union. Which is 80% of total cost of production. Milk collected at DCS will be transported to Chilling Centers, through 92 Milk Procurement Can Routes, by traveling 15,497 KM’s every day. 21 Bulk Milk Cooler (BMC) Routes are also in operation, which collects milk from 121 BMC centers of 373 DCS directly transported to Bangalore Dairy through insulated tankers. LIQUID MILK MARKETING. The Bangalore Milk Union is marketing milk and milk products in the brand name of â€Å"Nandini† through 1190 retailers, 38 Franchisee Outlets, 25 Milk Parlors, 224 distribution routes. The key success factor of Bamul in becoming a market leader is the narrow price spread maintained between purchase & sales, marketing higher volumes of milk. The volume of sales plays a critical role in determining costs. Hence, the market strategy of Bangalore Milk Union is to regard selling of market milk as its core marketing activity and to concentrate its efforts in this direction to increase the volume of milk sales. The impressive growth in the sale of milk by Bamul over the years is due to the persistent efforts to maintain timely supply, maintaining quality and attending to the complaints of consumers and agents with prompt follow-up action. Bamul is also organising Consumer Awareness Programme as a part of Market Development to create awareness of â€Å"Nandini† Milk through personal contacts, Door to Door campaigns, Organisational Meetings, School Children Mega Dairy Plant visit etc. , are conducting regularly. INFRASTRUCTURE DEVELOPMENT: The strategy of Bangalore Milk Union is â€Å"Procure More, Sell More & Serve More† and reaping the benefits of economies of scale. In order to realize this strategy, the Union has implemented the following projects so that more and more milk can be procured and processed. This will help us to serve our producer members by passing on the maximum benefits, we are consciously adopting the growth-oriented strategy of helping our producers to grow by ourselves growing constantly. Mega Dairy with a capacity to process 6 lakh litres of milk per day expandable to 10 llpd has been built by investing Rs.38. 70 crores obtained as term loan from National Dairy Development Board. The Mega Dairy, has latest state-of-the-art technological facilities in dairy processing and the Union will have the ability to manufacture milk and milk products to world class standards. Although Bamul sets standards for its products for better serve to customers, it was not possible to keep the standards stability due to manual operations. In designing mega dairy, Bamul looked towards an automated system that would allow it to achieve consistent quality parameters for each product. Energy and manpower would also be more effectively optimised and controlled and all plant equipment would be integrated. NEW Projects: Bamul has planned to convert Hosakote Chilling Center into a 2. 0. LLPD Capacity Dairy with an investment of Rs. 2427. 00 Lakh and a New Product Block at Bangalore Dairy Premises with an investment of Rs. 2033. 00 Lakhs . Bamul has SEVEN Chilling Centers geographically located around Bangalore and 85 Bulk Milk Coolers at DCS Level. Milk Product Block within the campus to manufacture Butter, Ghee, Peda, Flavoured Milk, Spiced Butter Milk, Paneer, Set Curds etc., FINANCE: The Union had an approximate turnover of Rs. 698. 47 crores in the year 2010-11 as against Rs. 527. 76 Crores for the year 2009-10. TECHNICAL INPUT SERVICES: Bangalore Milk Union is providing various Technical Input & Extension Services to the milk producer members & their Dairy animals through ELEVEN Camp Offices situated in each Taluk i. e. , Anekal, Bangalore Head Office (Bangalore South), Yelahanka (Bangalore North), Channapattana, Devanahalli, Doddaballapura, Hosakote, Kanakapura, Solur (Magadi), Nelamangala & Ramanagara. From these camps the Technical Input services like Weekly Mobile Veterinary Service, Emergency Veterinary Service, Artificial Insemination Service, Periodical Vaccinations, Balanced Cattle Feed Sales, Mineral Mixture Sales, Fodder development and Fodder Seed Production, Clean Milk Production practices, Extension Services for Cattle Feeding, breeding, insurance and milk production etc. , will be carried over. ANIMAL HEALTH AND OTHER ACTIVITIES ANIMAL HEALTH The Union is taking special care to promote the health of the cattle of member milk producers. Veterinary facilities have been extended to all the DCS. Mobile veterinary routes, emergency veterinary routes, Health camps, vaccination against foot & mouth disease and thaileriosis diseases, etc. , are being regularly done. Regularly Deworming is also done for the cattle. There is also a backup of First Aid Services to needy DCS’s. Particulars| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| MVR Cases Treated| | | | 43761| 171613| Health Camp cases Treated| 128174| 149565| 166198| 118307| | Emergency Cases Treated| 63818| 70735| 70420| 74773| 88440| F& M Vaccination| 377654| 430431| 373107| 528259| 506479| Rakshavac| 13675| 13395| 18094| 26227| 22176|. ARTIFICIAL INSEMINATION Artificial Insemination (AI) has been the main functional tool in dictating this upsurge of development of Dairying in Bamul. Farmers have taken up cross-breeding from way back in 1962. The Union has surveyed and appropriately located AI centers based on cattle population. It is also popularized the idea of cluster AI centers and replace the Single AI centers in a phased manner. The use of progeny tested semen from â€Å"Nandini Sperm Station† is also giving a further boost to the breeding activities. Particulars| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| No. of Single AI Centers| 320| 248| 251| 259| 259| 242| No. of AI Done| 1,66,614| 1,27,320| 1,11,536| 1,12,740| 1,16,002| 113300| No. of Cluster AI Centers| 64| 89| 94| 96| 101| 111| No. of AI Done| 1,38,895| 1,69,950| 1,69,185| 1,92,207| 1,97,645| 227761| Total AI Done| 3,05,509| 2,97,270| 2,80,721| 3,04,947| 313647| 341061| To reduce infertility in cattle, a frontal attack has been continuously attempted by conducting Special Infertility Camps under the expert guidance and by the use of infertility connected drugs. During 1999-2000, a Vertical Silo of 10,000 liter capacity for storing Liquid Nitrogen has been installed under TMDD program in collaboration with National Dairy Development Board and Karnataka Milk Federation. In addition this facility is being used for supplying liquid nitrogen to neighboring Unions and also to Department of Animal Husbandry. This has helped in protecting the quality of semen straws, thereby considerably increasing the probability of conception during artificial insemination of cattle. CATTLE FEED & FODDER DEVELOPMNET. The Union is implementing several programs to increase milk production and also to reduce the cost of milk production in the milk shed area. Balanced cattle feed is being procured from the Cattle Feed Plants of KMF for distribution among member producers. Fodder seeds are distributed to member producers at subsidized rates. In addition to this, technical advice, Silage Demonstrations, Azzolla Demonstrations and Straw Treatment Demonstrations are also being conducted at DCS level. Chaff Cutters are supplied at subsidized rates. Cattle Feed Sales: Particulars| 2005-06| 2006-07| 2007-08| 2008-09| 2009-10| 2010-11| CF Sales (in MT’s)| 28515| 29813| 33359| 37691| 40529| 45233| A Seed Processing plant was commissioned at Rajankunte by investing Rs. 41 lakhs. The Union is catering to the Seed production needs of many Unions in Karnataka and also of Southern India. YASHASVINI HEALTH INSURANCE: Yashasvini Health Insurance Scheme was muted by Government of Karnataka during the year 2001-02. This scheme was implemented by Coperative department, Members of Co-operative Societies and their family members are the beneficiaries of this scheme. The annual premium is Rs. 120/- per beneficiary. All major hospitals are adopted for this scheme, all types of surgery will be covered under this health scheme. Bangalore Milk union has covered 1. 50 Lakh beneficiaries under this scheme by contributing Rs 30/- towards premium per beneficiary. CATTLE INSURANCE: Bangalore Milk Union is providing Insurance Coverage to the Dairy animals in collaboration with United India Insurance Ltd. , 40,238 animals are covered under this Insurance. The annual premium is 2. 22% of the value of the animal. 50% of the annual premium of Rs. 122. 99 Lakh was borne by bamul. IN THIS MILLENNIUM. We want to become not only the largest Union, but also become one amongst the best-run milk unions in the country. The Union is aware of the challenges of the new private entrants, who are mainly thriving on unfair trade practices. They procure milk at least cost, without bothering about the welfare of the producers and without extending any technical inputs for improving milk production. They market milk by resorting to unhealthy and unethical practices deceiving the unsuspecting consumers. The Union wants to counter this in a positive manner by trying to improve its efficiency of operation and market promotion. It wants to become well trenched in the market as market leader. It wants to follow the strategy of cost-competitiveness, which is hard to match by the competitors. PROGRESS AND ACHIEVEMENT OF THE UNION SINCE ITS INCEPTION 1. Establishment of the Union: * Bangalore Co-operative Milk Producers’ Societies Union Ltd. was established on 16th November 1976. * After the bifurcation of the above Union, into two separate union for Bangalore Districts (Urban and Rural) and Kolar District, Bangalore Urban and Rural District Co-operative Milk Producers’ Societies Union Ltd. (BAMUL) on 23rd March 1987. * Bangalore Dairy was took over by BAMUL on 1st September 1988. * Bangalore Mega Dairy started functioning on 17th December 2000 * MMPO-1992 Registration No 42/R. MMPO/93 * Bangalore Dairy ISO 22000-2005 & ISO 9001-2000 Certified by Standard Australia International (SAI) Global Ltd. , a reputed Australian based company during 2006. 2. Infrastructure at the time of inception & subsequent expansion – year-w.

Obedience, Disobedience, And Disobedience - 1687 Words

Obedience and Disobedience in People in Relation to â€Å"Holes† People choose how they react to authority based on several things. These include; how they were raised, how much respect they have for the authoritative power, and how that authority has treated someone. This is shown in the novel â€Å"Holes† by Louis Sachar because the main character, Stanley, is sent to a child correction camp and has to obey the upper authority Mr. Sir. He starts out being an obedient child and following all Mr. Sir’s rules but then as he begins to see the real reason he is told to dig holes in a barren desert he rebels against Mr. Sir. These acts of obedience and disobedience are then analyzed and explained by; â€Å"Milgram Experiment† by Saul McLead, â€Å"Opinions and†¦show more content†¦The book Holes challenges this thought because even though the children, at one point or another, have done something wrong that lead them to be there it does not mean the y were doing it for the wrong reasons or that they are bad people, they still have feelings and can learn to respect authority, if that authority respects them. When Zero starts to tell Stanley that he was the one that stole the shoes he says; â€Å"We always took what we needed, Zero said. When I was little, I didn t even know it was stealing. I don t remember when I found out. But we just took what we needed, never more† (Sachar 81). This quote shows how Zero was raised to disobey authority, but never knew it to be wrong, and under all that emptiness there is an actual kid who is smart and brave. So according to Brooks essay’s theory the leaders should be nice and civil human beings, but they are not. Brooks then goes on to state that â€Å"To have good leaders you have to have good followers† (594). This thought is tested in â€Å"Holes† because while Mr. Sir and the Warden are corrupt leaders at camp Green Lake they abuse their power and use fear to b end the children to their will, so have the children at one point or another. This goes to show that whatShow MoreRelatedObedience, Disobedience And College1060 Words   |  5 PagesAdrian Nathaniel Soriano Prof. Saleem English 101A September 16, 2015 Obedience or Disobedience in College For a lot of people, especially those who have recently graduated from high school, college is completely different from the 4 whole years of high school. For many, it is a new chapter of life. 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Mental Illness And Its Effects On Your Mood, Thinking, And...

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