CHAPTER 1 - INTRODUCTION
Founded in 1999, Mengniu Group (Mengniu) has grown rapidly to become the leading dairy product manufacturer in China. It’s principal products are liquid milk (UHT milk-Ultra-high-temperature pasteurized milk, milk beverages, and yogurt), ice-cream, and other dairy product such as milk powder, milk tea powder, and tablets. Mengniu has overtaken it’s long-established state-owned rivals through dedication to quality and innovation in all aspects of its business, including marketing, governance, and aggressive adoption of international quality and best practice standards. Mengniu is a manufacturer of milk products based in Inner Mongolia, famous for its grasslands and one of the traditional dairy regions of China. Mengniu was privately founded in 1999 by a management team with long experience in one of Inner Mongolia’s state-owned milk product companies, Monglia Yili Industrial Group (Yili). Mr. Niu Gensheng, the founder and the chairman of Mengniu, had lost his position as vice-president of sales at Yili after an internal power struggle in 1999. Mr. Niu had worked at Yili for 17 Years and his father before him for 38 years. Mr. Niu, and the small but experienced management team he brought with him from Yili, started Mengniu with $ 12,600 of their own capital. 1 (Business Week,, 2005) Mengniu Competes fiercely with Yili and the other big Chinese dairy, Bright Dairy & Food. The three companies collectively controlled approximately 60 percent of the market as Aug 2005. 2 (Business Week,, 2005) Research Problem
Only 8 Years, Mengniu has grown explosively, overtaking Yili as the top seller of milk and simultaneously becoming one of China’s best-known brands. According to AC Nielsen (December 2007), Mengniu held 40.7% share of the liquid milk market (excluding milk beverage and yogurt) in China in terms of sales revenue, representing an increase against 36.2% in December 2006, continued to champion the market in China. Mengniu’s success is also a function of its commitment, and the following factors: - Innovation and quality in the dairy industry, such as the new product development. - It’s supply chain, consisting of independent small famers, how they can get the stable and trustable suppliers and make them be successful.
- Its employees and the creation of a safe and desirable workplace (recognized in 2005 as one of the 20 best places to work in china based on the “Happy Workplace” index) - Adoption and implementation of internationally accepted management, systems for quality assurance, environmental management, and worker health and safety. - The crisis of management of Menginu in “Melamine” and their positive response, be the responsible enterprise. Objective
This study will focus on Menginu's innovation and quality, collect the data analysis the workplace and crisis solution are the objectives of this study : - evaluate innovation and quality, such as the new product development, how can be a the success factors of Menginu. - Research and collect the data to analysis the workplace – Physical part like environmental and non-physical part manage in employees. - What is the new challenge and how they solve the crisis to make them still led the milk product market. Significance
This is a good case for reference for existing milk product brand or new milk product brand in China would like to expand their business in mainland. It will gives analysis that innovation and quality will it the main factors or the best human resources – create a happy workplace to achieve the successful? Why Mengiu can get the best workplace recognized in 2005 as one of the 20 best places to work in china based on the “Happy Workplace” and how is the award affect their successful in the dairy market? Moreover, it also find out the crisis management is importance to any enterprise of daily industry. No doubt that this study will let Mengniu know more about their successful...
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