Strategic alliance : F&N Berhad

Topics: Milk, Dairy product, Dairy farming Pages: 16 (2980 words) Published: October 20, 2014
SYDNEY BUSINES SCHOOL
UNIVERSITY OF WOLLONGONG

MASTER OF INTERNATIONAL BUSINESS

INTERNATIONAL BUSINESS STRATEGIES:
F&N DAIRIES (M) SDN BHD AND I-MEI FOOD COMPANY

Name:

UOW Student ID:

Site Coordinator:

Facilitator:

Submission Date: 20TH OCTOBER 2014
Executive Summary
F&N Dairies is seeking to penetrate the Taiwanese dairy produce market. It wishes to achieve this, through a formation of a complementary contractual strategic alliance between F&N Dairies and I-Mei Foods Co. which is a Taiwanese company that focuses in the production, supply and distribution of various type of food stuff. That being said it this paper I will examine the feasibility of this collaboration, through the analysis of the country as well as SWOT analysis of F&N Dairies and I-Mei Foods Co. I will look into the industrial analysis of diary produce.

Table of Contents
Executive Summary2
Table of Contents3
Company Overview5
F&N DAIRIES (M) SDN BHD5
I-Mei Foods Company5
SWOT Analysis: F&N DAIRIES (M) SDN BHD5
Strength5
Weakness6
Opportunity6
Threats6
SWOT analysis:I-Mei Foods Co.6
Strengths6
Weaknesses7
Opportunities7
Threats7
Country Analysis of Taiwan8
Politics8
Economic8
Social9
Legal11
Environment11
Porter’s Five Competitive Forces Models12
Threat of Rivalry12
Threats of New Entrants12
Threat of Substitutes12
Bargaining Power of Suppliers12
Bargaining Power of Buyers13
Value Chain13
Conclusion and recommendation14
Reference15
Websites15

Company Overview
F&N DAIRIES (M) SDN BHD
F&N Dairies is a Malaysian dairy company and one of the largest and oldest producers of dairy products such assweetened condensed milk, evaporated milk, pasteurised milk, UHT milk, juice or ice cream. This company was established through a joint venture between an American company Beatrice Foods of Chicago with a F&N Sdn Bhd and other companies such as Nestle in the year 1959 and was formerly known as Premier Milk. It was later on named F&N Dairies in the year 1989 (F&N Dairies, n.d). The group has later on acquired interests in Beatrice Foods of Chicago (1989), Magnolia (1995), Tea Pot brand (2007) and the group went on to acquire the remaining shares in the Premier Milk from Nestle.Today, F&N Dairies is a market leader and exports to a vast number of countries which accumulate to more than 40 (F&N Dairies, n.d). I-Mei Foods Company

I-Mei Foods Company is a company that specializes in dairy products, this company is based in Taiwanis a Taiwanese based company. This company was formed in the year 1934 and it specialises in a wide portfolio of food stuff. These food stuff can be put into different categories such as frozen dessert, some confectionaries and other sweet products on top of that they also have gift packs. I-Mei Foods supplies to a lot of countries such as Asian Pacific, North America, South eastern Asia, Europe and the Middle East. I-Mei Foods Company is one of the top five diary related products exporter(I-Mei Foods Co, n.d). SWOT Analysis: F&N DAIRIES (M) SDN BHD

Strength
F&N Dairy is a dairy company which has proved to be a market leader not only in Malaysia but in the Southern Asian region. It has also a vast and wide experience in this industry, because of this it has also managed to gain an efficient system(F&N Dairies, n.d). This company has also managed to gain economies of scale by being one of the largest exporters in Malaysia, with about 60 percent market share within the country. Weakness

One of the major weaknesses is that there is also a low supply of milk for the production of the products, thus getting the milk for production is very hard and expensive. This has a huge impact in the price that is passed on to the customers and also on the company’s performance financially. Opportunity

There is a huge and growing demand for the dairy products around the world especially in the Asian...
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