Assessment Project for “Doing Business in Global Markets”
Identify a business, research and report on how the business with a particular product may enter a defined global market.
Company: Glenisk Organic Dairy, Co. Offaly, Ireland
Programme: Bachelor of Business in International Business (2014-2015)
Module: Doing Business in Global Markets
Lecturer: Sharon O’ Brien
Students: Charlotte Doyle (171259), Mariam Sillah (173100), Mahamud Abdelwahab (171843) , Robert Kennedy(172630), Slawomir Starzec (170799)
Final date of submission: 7th November 2014
Word count: 3,892
TABLE OF CONTENTS
1. COMPANY DESCRIPTION 3
1.1 FOUNDING OF GLENISK 3
1.2 GLENISK PRODUCTS 3
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They also believe that ‘healthy soil creates healthy food to raise healthy children’. (Glenisk.com, 2014)
Glenisk managed to create a brand of an innovator and built a strong voice in the organic food industry. The company works in the partnership with The Organic Centre, Co Leitrim, GM Free Ireland Network and Love Irish Food.
2.2 GLENISK PRODUCTS
Glenisk organic products must comply with strict requirements of control and certification system regulated by law (the Irish Organic Farmers and Growers Association and the Organic Trust). As such, the company is subject to continuous quality control at each phase of production from sourcing milk to delivering ready products to customers. The assortment of Glenisk products comprises: Organic Milk (Whole and Low Fat), Organic Yogurt (Greek Style low Fat and Organic 0% Fat Yogurt), Organic Kids (Kids yogurts which are suitable for kid over 6 months healthy and with no sugar), Organic Goats Products (Goats Milk, Goats Yogurts plain, and fruit Flavoured Goats Yogurt), Organic Crème Fraiche and Organic Fresh Cream. Nominated in October 2014 for their innovative products Pure Originals baby yogurts in the Ernst & Young Entrepreneur awards & Bord Bia National Organic awards for Organic Go- Yos tubes.
2.3 COMPANY OPERATIONS AND ECONOMIC CONDITION
Glenisk employs 60 people directly and cooperates with 50 small Irish farms from which it purchase organic caws’ and goats’ milk. Due to successful strategy the company managed to triple its market share over the last five years and its turnover reached €17 million in 2013 to account 90% of Irish market. In 2006, Stonyfield Europe, a subsidiary of US Company Stonyfield Farm, the world’s leading organic yogurt manufacturer, acquired a 37% minority stake in Glenisk (Glenisk.com, 2014). The brand selling 110, 000 servings of yogurt a day or 50 million a year became available in most Irish retailers and currently exports dairy products to the UK, Portugal, Spain and the UAE (Newenham, 2014). In 2013 , the business increased its profits before tax by 353% after the revenues rose by 20% from €14.09 M to €16.94M (Deegan, 2013).
2. BENEFITS FROM ENTERING EMERGING MARKETS
Glenisk's Managing Director, Vincent Cleary, states that the company will ‘continue to invest in our facilities, new product development, innovation and marketing to further grow our business in 2014, and develop our export potential further’ (Deegan, 2013). Glenisk’s illustrious development and plans to double in size within the next four to five years allows to set a goal for the company to sell its products in emerging markets for a number of reasons.
1) 75% of the world’s population lives in emerging economies with trends continuously increasing demand for organic food in particularly in North America, India, Japan, China, Russia (Kennedy, 2012).
2) Emerging markets has a growing upper/ middle-class population with a focus on rising health and environmental...