Grass fed milk malaysia

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Exercise # 3

Kyami Clarke

BMGT 364 6387

University of Maryland University College

February 14th, 2019

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Exercise # 3

It is essential to take into consideration the product offering, what others are doing, the place of business, the people employed, and best practices. The central resources for a business are the people, location, and capital. The culture of a place plays a vital role in the location and people employed. For a business to be successful, knowledge of all these factors will determine whether production will be sustainable and well managed. This paper will explore how Biotech’s new Infant Formula Division can be successful by the leadership of Expert Food Consultants.

Product

The organic infant formula industry offers many product offerings, such as grass- fed cow milk, non-GMO, sensitive, corn, soy. The purpose of infant formula is to imitate breast milk. The benefits of breast milk is the naturally occurring protein, vitamins, minerals, and carbohydrates. It is essential to select a product that replicates the nutrients babies would typically get from traditional breast milk. Per market analysis, Expert Food Consultants should consider launching is grass-fed cow milk and sensitive formula. From a financial aspect, the production costs associated with grass-fed cows is lower. From product offerings standpoint, studies show that grass-fed milk is healthier and contain higher natural occurring protein, calcium and vitamin D (Heins, 2018).

Infant organs are not fully developed, and it is essential for babies to consume

formula that has decreased body fat. Grass-fed milk is an essential component of this factor. The omega-3 fats contained in grass-fed cow milk has resulted in parents seeking and giving this kind of milk to their infants for healthy growth in their infants. Grass-fed milk has higher levels of fatty acids and lowers omega-6 (Heins, 2018), blood sugar regulation, conjugated linoleic acid (Kirkpatrick, 2017), which are all vital for infant growth and health. All of these health benefits make it in high demand, hence why launching this type of product offering as marketable.

Net Profit

As of 2016, the value of natural baby formula was listed $6.5 billion (Statista, 2017) and is expected to reach $11 billion by 2023 (Wood, 2017). Nestle reported an average growth for organic formula is 2.8%, while in Asia 4.4% growth (Nestle, 2018). Abbott saw an increase of 2.33%, which equalled $1.6 billion (Penumudi, 2015). According to market analysis, the Asian region is the best due to its health-conscious population and economic growth (Anand & Koshy, 2017). By doing business in Malaysia, this will assist in the ROI and higher profits, primarily because of the tax advantages and cost savings (Doing Business in Malaysia, n.d.). It is reasonable to expect the Infant Formula Division to start at 2% and follow an upward trajectory to 4%-5%.

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Competitors Success

There are many companies which are successful in the organic infant formula industry. These companies include Mead Johnson Nutritionals, Danone, Nestle Products and Abbotts (Changing Markets Foundations, 2017). Each of these companies has specialised in provisions of sustainable and organic infant products. Their success can be attributed to their commitment to upholding the code of agreement in association with other stakeholders. They give a high-quality product which has made their market value higher. Also, they have come together to come up with a partnership with other organisations (APIYCNA, n.d.). The partnership is called the Federation of Malaysian Manufacturer Infant Formula Ethics Committee.

With the help of this partnership, these companies have been successful in

offering these products to the market. The success of these companies has been possible through their provision of products which they give priority. The success of these businesses have been due to their ability to prioritise; hence their products seems to encourage the same. The other reason why these businesses have huge customers which translates to their success is that they act as platforms for enhancing ethical business practices as needed by the ministry of health. The Malaysian government have been supporting these businesses in their dealing and doing all they can to make them a success for they pay their taxes hence creating government revenues (Doing Business in Malaysia, n.d.). The ability of these businesses to act responsibly by supporting underprivileged and conducting nutrition studies with an institution of higher learning has led to the businesses being valued by most community members hence making a huge purchase.

Best Location

Malaysia is a country that depends more on imports for dairy products. The country is known to be having low milk production, which translates to lower dairy produce. Although there is a considerate increase in milk production for the last four decades, the demand is not being met as expected. The demand has not been fully met since the high population is not being satisfied with the low quantity of milk produced (Bonaventure & Umberger, 2012).

As leader of Expert Food Consultants the best location to source milk will be