Business Case Analysis on Australia Moxey farms
Introduction (100 words)
Introduce the topic, state the purpose of the essay and the key points (scope) to be covered.
Case company synopsis (100 words)
Briefly provide some background information which you deem essential and highly relevant to your analysis. [Avoid direct ‘cut’ and ‘paste’ from company websites, paraphrase using your own words and put company website as an in-text reference as per APA style]
Body paragraphs (1300 words)
You decide how to allocate words per question listed below, I would suggest that questions (a) and (e) are descriptive in nature, answers are expected to be concise and straightforward. Remember to incorporate definitions of key concepts in your answer. (See criteria 2 in Marking Rubric). Questions (b) to (d) require critical thinking and analysis based on your research, hence allocate more words accordingly. In-text citation is very important in this part of the essay, as it corresponds to evaluation criteria 2 and 3 (which combined account 20% of your score for this assignment) and criteria 6.
a) What is the business structure and governance structure of your chosen company
b) Which environmental factors are influencing your chosen company’s performance and/or decision-making
c) What are the top three risks your chosen company face and how are they influencing its performance and/or decision making
d) What business practices your chosen company adopt and how are they influencing its performance and/or decision making
e) What functional departments does your chosen company have
Conclusion (100 words)
Once again, be concise. Provide a summary of your key points in the essay (avoid using same sentences). Avoid introducing new topics (e.g., recently, the company is involved in a scandal etc.), but do highlight implications on the management of the company in the future on the basis of your analysis.
The essay deals with the positive impact technology-driven processes on the dairy industry and one of the largest dairy farms of Australia Moxey farms has been chosen to demonstrate this factor. It is a huge farm in which 6000 cows are present on 2800 hectares of land and it is known to produce multiplemillion tonnes litres of milk annually(globalaginvesting.com2019). The key points that this essay will be highlighting will be associated with will be the business structure, environmental and people concerns of the chosen organisation. The risks that the business is facing and the decision making the process of the various functional departments of the organisation are huge.
Case company synopsis
Australia is the third-largest dairy exporter in the world. It exports a huge range of dairy products such as milk, milk powder, yoghurt,cheese and butter. Initially, the farms only served the domestic market due to the lack of modern amenities and innovative technology. Initially, the industry was highly regulated and in the year 2000 along with deregulation, the dairy farmers received $1.73 billion for restructuring(pwc.com.au 2019).The liberalised nature of the business ensured that efficient production methods came in and this led to the dairy industry becoming the third largest industry of Australia. Moxey farms have become a pioneer in building infrastructure and ensuring that technology and innovation and a dedicated team of 200 people the company has been able to earn a good name in the business (moxeyfarms.com.au 2019).
Australian Fresh Milk Holdings (AFMH), is a partnership between the Moxey family and the Perich family along with New Hope and Freedom foods is in partnership with Moxey Farms business. China’s New Hope diary has been involved with the Perich family and this alliance has added technology and innovation to the business. The AFMH is a consortium that is in strategic partnership with Moxey farms. The strategic partnership has given the company to access assets and operations across the dairy settlements all over Australia(Manson, 2019).Moxey farms is a professionally handled modern generation business that is associated with working in close collaboration with grass-root level farms and bringing these farms modern technology that ensuresa better quality of the product and better life for the farmer. The company is known for maintenance of excellent governance and focuses on its cows, its people and its farmland in the most diligent manner.
Environmental factors that are affecting the decision making of the company are associated with greenhouse gas emissions, use of too much water in the scarce water conditions and the lack of the resources of land that are required in order to grow the production in the high quality milk business that the chosen company is in. The company is committed to the environment and as a prove it can be observed that it has also gained the ISO accreditation 14001:2004(moxeyfarms.com.au 2019). In order to ensure that the impact of greenhouse gases and other negative factors that affect the environment is reduced the decision that is taken in Moxey are carefully laid out to protect the environment. This is the reason the business has been focusing on green energy and cow manure is being consideredfor this, as it is already a by-product of the farm. Along with other key dairy farms, the administration in Moxey Farms has taken up improvement in land management, reducing waste, using renewable sources of energy as well as judicious use of water resources(dairy.com.au 2019).There is an effort to nurture the land through compost and fertiliser that is developed in an organic manner in the farm itself. There is also use of centre pivots and flood irrigationsystems for saving of water on the vast farmland(moxeyfarms.com.au 2019).
The top three risks that are faced by the company are associated with climate change and its impact on the livestock, the concept of protectionismin the competing markets along with water policy changes and the rising price of inputs like labour and fast-changing technology. Manure and dairy cows produce many greenhouse gases and sustainable dairy farming has become crucial to the growth of the industry. Livestock production is crucial to dairy farming and there is a severe need for more land and water, both of which are now in scarce quantity. This is the risk that the farmers face of having to produce more with least resourcesworldwildlife.org (2019). There are also many problems that are associated with the usage of too much water by the industry which; is causing major uncertainty in the industry for a long time. Protectionism can be defined as that economic tool that is used to ensure that there are trade barriers put so that the domestic economy can benefit by barring or restricting international trade to percolate and compete with domestic business(Marette&Beghin, 2017). The use of tariffs and import quotas are put in place to ensure the success of the concept of protectionism. Input prices are also a major concern. The cost of labour and the extremely changing technology has led to many investments and it is becoming a major concern to keep up with the changes in technological innovations in the dairy business. Policy uncertainties over water and prices are also proving to become risks in the business of this essential commodity.
The various business practices that the chosen company has decided to adopt is associated with sustainable farming. It has stayed focused on the triple bottom line approach that is linked to benefitting the people of the company, protecting the planet and ensuring that profit is reaped in a manner that will lead to long term business set up(Elkington, 2013). The various processes, practices, and methods that the farm has adopted are all linked to greater good being attained along with maintenance of profitability and this is the best business practice that the company has adopted. This decision for sustainable growth is affecting the decision making the process through the company adopting standard practices to ensure that there is less degradation of the environment due to the various business processes. There is an effort to replenish the land through compost and fertiliser that is developed in an organic manner in the farm itself. There is also use of centre pivots and flood irrigationsystems for saving of water on the vast farmland(moxeyfarms.com.au 2019). There is the practice of waste management that is practised on the farm and that ensures that there is a deeper commitment to the environment. Quality production and systematic delivery of the high-quality product is its commitment to the people so that it is possible that the farm business stays true to its customers by giving them high-quality milk. There is a need forexcellent technology to achieve that, which is the decision that the business takes when it invests in innovative technology.
The various functional departments that the chosen company haveare teams of people who are associated with the business on various functionalities. The Dairy team comprises of farmers, veterinary doctors who are responsible for the health of the herd, feeding and monitoring technicians, as well as on-site technicians who are responsible for the smooth running of the machinery that is associated with collection and transportation of milk. A farm unit is into agriculture using organic composting so that the best quality harvest crops can leave the best fodder for the cows. There is another functional department, that is the workshop and maintenance team, which is associated with handling and maintenance of farm equipment and this department,is made up of skilled technicians who are extremely capable of keeping the technology-driven farm running. Then there is the logistics department transport the milk to aggregation units(moxeyfarms.com.au 2019). This is a specialised department uses the state of the art technology to keep the milk fresh. The projects and construction team is another major functional department that is involved in ensuring that there is always supportive infrastructure built that will ensure that the business is always enhancing its capacities through construction and fabrication. The final department that keeps it all co-ordinated is the people and administration department that also takes care of the finances of the business(moxeyfarms.com.au 2019).
It can be concluded that in the chosen farm, there is the concept of sustainable business effort and the farm has become a major exporter of milk and milk products in spite of international business is slow, it has strived to ensure that there is much growth in the business. There is an effort taken to grow as a family with people in the form of employees and collaborative farmers, who have started to work with Moxey with the hope of earning better profits. There also has been the process of ensuring that the company stays true to its mission of sustainable growth and ensure that the company takes up the chosen business practice of triple bottom line approach and through effective decision, making the company is able to reach its goals of becoming a dairy giant.
globalaginvesting.com(2019), Australian Fresh Milk Holdings Formed with Closing of $100 Million Moxey Farms Acquisition - Global investing. (2019). Retrieved 13 August 2019, from http://www.globalaginvesting.com/australian-fresh-milk-holdings-formed-with-closing-of-100-million-moxey-farms-acquisition/ moxeyfarms.com.au (2019).Moxey Farms – We are Australian dairy farmers who make the finest milk that can be made. (2019). Retrieved 13 August 2019, from http://moxeyfarms.com.au/
Manson, S. (2019). Two of Australia's biggest dairy empires are joining forces with help from Chinese investment. Retrieved 13 August 2019, from https://www.abc.net.au/news/rural/2015-04-28/moxey-farms-consortium-new-hope-dairy/6428248
moxeyfarms.com.au (2019).People – Moxey Farms. (2019). Retrieved 13 August 2019, from http://moxeyfarms.com.au/people/ worldwildlife.org(2019). Dairy | Industries | WWF. (2019). Retrieved 13 August 2019, from https://www.worldwildlife.org/industries/dairy
Marette, S., &Beghin, J. (2017). Are standards always protectionist. In Nontariff Measures and International Trade(pp. 179-192).
moxeyfarms.com.au (2019).Our Environment – Moxey Farms. (2019). Retrieved 13 August 2019, from http://moxeyfarms.com.au/our-environment/ dairy.com.au (2019). Dairy Australia's Strong Commitment To The Environment. (2019). Retrieved 13 August 2019, from https://www.dairy.com.au/our-commitments/environment
Elkington, J. (2013). Enter the triple bottom line. In The triple bottom line (pp. 23-38).Routledge. moxeyfarms.com.au (2019).Farms – Moxey Farms. (2019). Retrieved 13 August 2019, from http://moxeyfarms.com.au/farms/ pwc.com.au (2019). Retrieved 13 August 2019, from https://www.pwc.com.au/industry/agribusiness/assets/australian-dairy-industry-nov11.pdf