Abc Assignment Help

Business Model and Organization Structure of Angus Dairy

Overview

Through an analysis of an organisational business model case (see below - Angus Dairy Co), students are expected to address a range of key theoretical perspectives on processes and practices that relate to organisational structures, people management, marketing and finance. Students will draw on the Essential and Recommended Readings as set out in this Learning Guide as well as their own research. This assessment is designed to foster learning in relation to the first four unit learning outcomes. Through undertaking this task it is expected that you will be able to:

– Explain contemporary organisational structures and design. 

– Analyse contemporary people management practices. 

– Discuss marketing practices in contemporary organisational settings. 

– Explain financial practices in contemporary organisational setting

Details 

Assessment require you to make use of the information provided in the business model summary below - Angus Dairy Co, and demonstrate how your organisational design allows this business model to manage its resources and promote and support its products and services.

Angus Dairy Co

Angus Dairy Co, established in 1911, is a co-operative incorporated in Australia. Its head office is based in the Southern Highlands of NSW and its members and operations are located in Queensland, NSW and Victoria. Angus Dairy Co has 3000 farmer members and the Co-operative employs 2000 full-time and 500 casual staff. Our Human Resources (HR) strategy continues to build further training and development platforms for all our members and staff with a key focus on best practices in Work Place Health and Safety (WPHS) in all aspects of the Cooperative’s business units, and individual professional development programs. Revenue was $3.2 billion in FY 2017/2018 with operating profit continuing to grow at 11% per annum. 100% of all profit generated by the business is paid to our farmer members by way of a highly competitive farm gate milk price, dividends and reinvestments in our farmer owned co-operative. The Co-operative maintains a strategy of having a diverse business model that helps to safeguard both the overall business profitability and also Member profitability. The principal activities of the Co-operative are the processing, manufacture and sale of dairy products, and the provision of farm advice. The marketing, advertising and promotion of our products within Australia has been outsourced. The outsourcer also undertakes consumer research on behalf of the Co-operative to decide on advertising campaigns, marketing strategies and product development. Research and Development for the Australian and emerging markets is informed by market research from our advertising agency and carried out in-house

Angus Dairy Co has three operating groups: milk collection, manufacturing and farm advisory, and works closely with government, industry and agribusiness organizations to ensure that Angus Dairy Co products and its suppliers meet world class quality standards. In today’s environment, dairy farm sustainability embraces more than just milk production, productivity, and profit. It involves environmental stewardship, animal welfare and ensuring that the dairy community has a standard of living typical of modern society. The Farm Advisory team has excellent skills in various aspects of dairying including: pasture and forage production; herd nutrition, reproduction, and health; and business management and enterprise growth. Milk collection is undertaken daily and collects raw milk from farms transporting this to manufacturing facilities of which there are 7 located along the east coast of Australia. Angus Dairy Co manufactures a wide range of dairy products, for both the local market and the global market, to the most exacting standards and specifications using state of the art technologies and systems: White milk; Flavoured Milk; Cheese; Cream; Custard; Butter; Yoghurt. 50% of the total production is exported to countries in Asia and Europe. We are also experts in contract manufacturing for well-known established brands, retailers, quick serve restaurants, and aspiring entrepreneurs both nationally and internationally. Working from concept to shelf our team can develop a targeted product for a client’s specific requirements. We also respond to the demands from export customers who may want products with low salt levels, added ingredients such as Omega-3 fatty acids for good health, depending on the tastes of the region they are being exported to.

Assessment 1 Essay question 

Based on the detail provided about the company, analyse this business model and create your interpretation of its current organisational design. Use relevant management and organisational theory to support your analysis and explain your reasoning as to why this company would structure its operations in this way. In your answer, include a diagram of your organisational structure.


Answer

Understanding Contemporary Organizations

2.4.1 ESSAY 

INTRODUCTION

An organization is adopted different kinds of business structure and management practices as per the industry standards, goal of business, internal and external environment factors, target customers and etc. All these elements have significant impact on business model and organizational structure of an organization (Boyd, Henning, Reyna, Wang, Welch and Hoffman, 2017). In this context, the approach of contemporary organization design is identified as most effective model in the current highly fluctuated market trends. This is because this approach has found very effective for making an organization more flexible, more efficient, more productivity and more profit with high satisfaction level of workers. In this type of companies, involvement of employees has significantly increased in the form team working, appropriate delegation of powers, reducing the element of control and focusing on appropriate supporting firm (Battilana, Sengul, Pache and Model, 2015). This report is going to discuss different elements of business model and organization structure with reference to the case of Angus Dairy Co. The company was established in 1911 in the form of co-operative incorporated in Australia. The head of organization is situated in Southern Highlands. According to case, Angus Dairy Co. is managing several business operation related to dairy industry in the form of milk collection, distribution, processing and etc.  

MAIN BODY 

As per the case, Angus Dairy Co. has maintained a diverse business model that provides significant assistance for safeguarding both the overall business profitability along with its member’s profitability. Therefore, Co-operative organization has maintained highly efficient business structure that offers great flexibility in business operations for accomplishment of organizational objective with appropriate support of members, employees and other business stakeholders. The evaluation of present case has addressed that business entity has different groups in the form of 3000 farmer members, 2000 full-time employees and 500 casual staff. For managing efficiency of different individuals, Co-operative firm has managed different strategy for ensuring training and development of workers (Thompson, 2017). All these skills and training development operations designed with reference to three basis factors such as processing, manufacture along with sale of dairy products. The business entity of has also determined the provision of farm advice. 

The evaluation of business model of Angus Dairy Co. is determined that organizational structure of Cooperative firm is greatly associated with Team Structure Approach of Contemporary Business Model. A team structure is termed as an important business design in which whole formulation of an organization in categorized in the different teams. In the team based business model, each team manages different operations and activities for attainment of certain common goal (Grant, 2016). Therefore, it has been addressed that if an organization formulates different groups to perform a verity of functions of the company then employees in different teams must be performed appropriate as per the business goals. This is because different teams are accountable for their performance. In the contemporary business model based on team structured organization, there is no hierarchy or chain of command identified because employees are highly involved in different aspects of business operations and teams also understands impact of its performance. Furthermore, Teams are also having appropriate power and authorities to be as innovative and apply distinct strategy for generation of optimum results as per the business goals (Bromley and Meyer, 2017). With the reference to Team based organizational structure, it has addressed that Angus Dairy Co. has formulated different teams and work groups along with an extensive support system so as optimum result could be attained in different teams. In the context of production of milk based products, several groups or teams are formulated such as milk collection, manufacturing, human resource management team, and farm advisory. 

Organizational Structure of Angus Dairy Co

Figure 1: Organizational Structure of Angus Dairy Co

 With reference to present case, it is evaluated milk collection team is focused to collect raw milk from different farms by transporting milk to manufacturing facilities from different locations in Australia. This team ensures about timely transportation, quality of milk, reducing wastage and various other elements of milk collection (Knoke, 2018). This team is considered as an important element of business structure of Angus Dairy Co. In addition to that efficiency of this team leads positive impact on production schedule of different milk products. It also ensures timely delivery of final products and services. 

As per the case, it is evaluated the production team is responsible for managing different manufacturing process in Angus Dairy Co. for a verity of dairy products such as White milk,  Flavoured Milk, Milk cream, Cheese, Butter and Yoghurt. Therefore, this team handles different aspects of production process with reference to different quality standards of local and the global market. In the context, this team plays important role in determination of quality standards as per domestic and international quality norms because 50% of the total production of dairy firm is exported to different countries in Asia and Europe. The team based organizational structure offers significant assistance to company for managing contract based manufacturing with different brands, retailers, restaurants and other firms (Clegg, Kornberger and Pitsis, 2015). In this process, the production team makes effort  in order to determine needs and interests of customers in the from taste, health factors and quality elements. All these factors have been found very effective in determination of salt levels, additional ingredients like Omega-3 fatty acids for good health. By considering these additional features, Angus Dairy Co. is able to manage significant growth in markets that plays important in profitability of business. 

In context of current business environment, Farm Advisory team has developed diversifies excellent skills related to various aspects of dairying. In this context, this team offers significant assistance to farmer and employees about several factors of milk production such as pasturing and forage production, determination of nutritional element, reproduction, and health management of different cattle groups (Manning, 2017). This approach has found very effective in assessment of support of employees and farmers in different aspects of business management so as corporate goals of Angus Dairy Co. could be achieved. It also influences productivity of different individuals associated with dairy firm. 

In addition to that human resource management team in Angus Dairy Co. is mainly focused to build a verity of training and skills development platforms and tactics for different    members and staff. The primary objective skills and training activities is to promote best practices in Work Place Health and Safety (WPHS). In addition to that individual professional development programs of human resource management have played important role for increasing efficiency and skills of workers (Davis, 2015). It has also increased knowledge of workers about latest technology and equipments related to dairy industry so as employees are able to manage different critical aspect production and business operations. 

In the context of present case, business model of Angus Dairy Co. is also influenced by the Contingency Approach Of Contemporary Organization. According to this approach, it has evaluated that selection of organizational design must be associated with aim and vision of business. Therefore, both internal and external factors of business environment needs to considered while developing an appropriate organisational structure such as Environment, Technolog, Size of operations and People (Clegg, Kornberger and Pitsis, 2015). This approach suggests that situational analysis must be carried out so as an appropriate business model could be developed. In the case of Angus Dairy Co., different internal and external factors are considered by management such as interest of farmers, requirements of employees, current market trends in dairy industry, product chain, government safety standards related to food production and distribution, global and domestic market trends, skills of workers, efficiency of farmers, short and long term business plans, marketing and promotion activities and etc. All these elements have significant impact on business growth and business planning process. In this context, business entity has formulated different teams for managing different operations such as collection of milk, processing and selling. In order to assess current market trends, the business model of Angus Dairy Co. influences different teams for carrying out research and development for the Australian and new emerging markets so as optimum results could be produced about information related to promotional factors of consumers and interest of customers (Knoke, 2018). This information assists manager for developing reliable business plans and strategies in dairy products. 

CONCLUSION

On the basis of above assessment, this essay has concluded that contemporary business model has found very effective for increasing organizational efficiency in terms of production efficiency, satisfaction of customers and other individuals, long term growth of business with appropriate profitability. By using contemporary business structure, a business leads positive change in the several operations which would be become more flexible, more efficient, more productive and more profit. As per the present case, Angus Dairy Co. has followed team based business model for managing different business operations by formulating different teams. This report has concluded that team based organizational structure has found very effective for improving overall business efficiency. In addition to that Contingency theory has played important role for managing business operations of dairy firm as per the various internal and external factors.  

Customer Testimonials