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Bega Cheese report

MGF3401 Strategic Management Group Presentation

Lana Nguyen

on 11 May 2014

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Transcript of Bega Cheese report

Q1 What are the types of strategic alliances Bega form to develop competitive advantage?
Brief Background
A Cheesy Industry Analysis
Question 3:
Considering the dynamic challenges facing the Australian commodity market, what future strategy should Bega Cheese pursue?
Risks of cooperative strategy
Question 2 What benefits of cooperative strategies?
First We Must Understand Two Definitions

Strategic Alliance- A
cooperative strategy
on which firms combine some of their resources and capabilities for the purpose of creating a competitive advantage

Cooperative Strategy- To collaborate for the purpose of working together to achieve a shared objective
Founded in 1899
Headquartered in Bega Village
Grown from a local dairy farmer to 1360 staff
Produces products such as
Milk Powders
Cream Products
- managerial problems
- misrepresentation of core competencies (Hanson, Hitt, Ireland, and Hoskisson 2014)
- inadequate contracts
- integration difficulties
- financial liabilities
- difficulty in managing retail relationships
- trademark falsely used
- conflicts in sales and distributions
Bega Cheese Workshop
Background information
Bega's Competitive Advantage
Strategic Alliances
Benefits and Risks of cooperative strategy
Possible future strategy with dynamic challenges

Bega's Strategic Alliances
Competitors in the diary industry have different capabilities depending on the products they have processed historically

In this industry, competitors take over, merge with, enter into contract or gain control over a capability they see as strategically advantageous

The reason for this is because these large diary industries may find it more efficient for a third party to process their products and distribute them
Strategies to use to overcome the challenges:
- increase diversified product categories
- increase export base market in Asia - OPPORTUNITY BENEFIT
- overcome trade barriers in international markets
- access to better raw materials/pooling new resources with large capital - RESOURCE BENEFIT
- access to new business techniques
- share risks and responsibilities
- establish franchise in existing market - EFFICIENCY BENEFIT
- maintain market stability and hopefully profitability

Reference list
Bega Cheese brief history, 2014. Retrieved from: http://www.begacheese.com.au/student-resources/brief-history/. Accessed date: April 28th, 2014.

Bega Cheese annual report, 2013. Retrieved from: http://www.begacheese.com.au/wp-content/uploads/2013/08/00-BEGA-FY13-Annual-Report-FINAL.pdf. Accessed date: April 28th, 2014.

Hanson D., Hitt M. A., Ireland R. D., and Hoskisson R. E. (2014). 5th Asia-Pacific edition. Strategic Management: Competitiveness & Globalisation. South Melbourne, Victoria: Cengage Learning.

Johnson M. and Gelb B. D. (1999) "Predicting cooperative behavior during a retailer’s bankruptcy", Qualitative Market Research: An International Journal, Vol. 2 Iss: 1, pp.31 – 45.

By Thi Cuc Nhat Nguyen (Lana) - 24501646
Tiffany Tee Yee Ying - 24915815
Sam Despo (Sam)- 25131745
Given the current position of Bega, what is one benefit and one risk associate with the adoption of a cooperative strategy

Groups of 3 people
Dynamic Challenges:
- Export relatively expensive due to the high value of Australian dollar
- High demand for dairy goods in China but cost of exporting will increase by doing so.

Horizontal complementary strategy alliances
: An alliance in which firms share some of their resources and capabilities from the same stage of the value chain in order to create a competitive advantage.
To face the challenge of high value of Australian dollar.
- Cross-border strategic alliance:
A type of international cooperative strategy in which firms combines some of their capabilities and resources in different nations to create competitive advantages.
To face the challenge of expand market into China without spending too much cost on exporting.
Full transcript