BMGT-8005 - a2 Milk Company Limited Case Study - Management Assignment Help

Assignment Task

Organisation: a2 Milk Company Limited

PART 1: Introduction
The a2 Milk Company Limited (A2MC) was founded in Auckland, New Zealand in 2000. In April 2014, A2 Corporation Ltd rebranded to call itself The a2 Milk Company Limited. The A2MC and its subsidiaries, sells A2 protein type branded milk and related products in New Zealand, US, Australia, China and other Asian countries. The company offers fresh milk under the A2MC brand; and infant formula under the a2 Platinum brand. (simplywallst, 2021)
The global dairy sector is enduring a turbulent and challenging period. The reason is from China's slowing demand, Russia's trade embargo and the removal of EU milk quotas that have resulted in a period of excess supply and low prices.
Looking past the short-term turbulence, the long-term outlook for the milk sector remains positive. The world's population is rising, and changing diets are increasing demand for dairy. Rising urbanisation and increased wealth tend to result in individuals receiving more calories from proteins (including dairy) instead of basic carbohydrates (mostly grains).
(Deloitte, 2017)
Deloitte predicted that global dairy demand would increase by 2.5% per annum to 2020 due to urbanisation and rising incomes in emerging markets. (Deloitte, 2017)
A2MC unique selling position is that they market their A2MC as a superior and one of a kind composition which emphasises a science-based differentiation as a possible resolution to digestive irritation experienced by some consumers (Stuff, 2020). Due to the relatively unique features of A2MC, its only mainstream competitors in NZ would
be considered to be Anchor who also has a protein-based milk product.
A2MC most well-established market is in Australia where they have continued strong focus since 2007. The Australian fresh milk business continued to strengthen with 14.1%1 revenue growth and maintained an 11.3% market share. (AAGWS, 2019)
The Dairy Farms industry's market size in the US has grown 1.8% per year on average between 2016 and 2021. (Ibis, 2020) A2MC could investigate this in the future. Currently, the writers believe the biggest threat to A2MC is trade restrictions in China due to Covid-19. The paper proposes to turn this threat into an opportunity. The dairy industry is losing billions to trade barriers, and A2MC will have to adopt a new way of thinking and operation to overcome such
significant financial losses. (Stuff, 2017)
The scope of this report is to investigate a2 Milk Company with respect to a problem that requires change within the organisation. A change model is reviewed against this problem to assess its suitability.

Limitations:
• Based on the reports currently published by A2MC
• Forecasting models etc., are based on pre-covid conditions. Covid-19 is unprecedented, so reliability on models, company growth and future performance is uncertain.
• Possible over-simplification of resolution between three nations with complex laws/regulations.

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