Assessing the different business strategies used by Companies - Free Essay Example

Sample details Pages: 3 Words: 1012 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? In this paper, the researcher will mainly discuss the successful business strategies of the corporation. After clarifying the concept of the business strategies, the researcher will discuss the integrated nature of developing a corporate strategy and describe the four key dimensions of well-developed business strategies. After researching world enterprise development history, people can find out that corporate strategy is the foundation of modern enterprise (Bent Kjell, 2002). Don’t waste time! Our writers will create an original "Assessing the different business strategies used by Companies" essay for you Create order Although development environment, product structure, organization and management, technical innovation, product quality and capital scale can have an influence on the enterprise life, whether the enterprise strategy research is successful is also quite important for the company. Business strategy can be considered as that in the competition environment, the enterprise should consider its advantages and disadvantages, and take reactions in order to create the space of survival and development (Naveh Marcus, 2005). Business strategy can not stand still, and it should make adjustment with the changes of internal and external environment conditions. For the different stages, different companies will have different management modes. In the modern world, the essence of management is that adjusting serve management strategic at any time in order to adapt itself to the changing world market. Thus, the researcher considers that the so-called business strategies are that in the enterprise man agement, in order to achieve certain operations objectives, under certain market environment conditions, all the actions, plans and competitive manners helping achieve the operational objectives. Since business strategy activity is a kind of tough brain activity and creative activity of rational thinking, the managers should fulfill conditions and make a correct application in business strategy. First, enterprise owns high sensitivity towards the market environment changes. For a modern enterprise leader, how to adjust enterprise development strategy according to the environment changes and quickly become the leader is vital. A good modern enterprise operator should make changes timely according to the environmental changes. Second, during the enterprise strategic adjustment process, guiding ideology is also important. Third, organization mechanisms of the enterprises should have sustained innovation ability. Various enterprises can obtain surviving space and prolong enterprise l ife in different types of innovation activities. Fourth, the enterprises should have a scientific financial operations and reasonable cash flow. If the enterprise wants to do high-level innovative activities, it should investment in researching and developing. Fifth, the modern enterprise culture and values is another factor. After the entrepreneurs make strategic adjustment, the whole organization should operate up according to instructions (Dovev, 2006). In addition, the core of enterprise strategy is innovation. When the enterprise makes each strategic adjustment, the environment actually changes and for the company, the core of enterprise strategy is how to respond to the changes. Describe the four key dimensions of well-developed business strategies When the researcher looks at a well- developed business strategy holistically, there often will be four distinct and key dimensions that account for every action and decision (Kor Mahoney, 2004). These four dimensions are: strategy, operations, marketing and finances respectively. Finances dimension mainly answers the question that how to win the support of shareholders and how to create enterprise value? And finances dimension is the starting point and final result of business strategy. Strategy dimension often includes several aspects: management strategy, technology innovations, and so on. Marketing dimension mainly focus on the question that how to adapt to the market and how to create values for customers. Delivery cycle, service response time, and when new productions put into the market will have an important effect on the market sharing and customers needs (Stefanie Thomas, 2004). Operations dimension mainly answers the question that what is our advantage and different an swers to the same problem will form the different core competitiveness. Therefore, a good enterprise often can pick out the business program having a great influence on the customers satisfaction, including time, quality, service and productivity, make sure its own core competitive ability, and convert them to some specific assessment indexes, such as manufactured products passing rate and so on. Although theyre distinct dimensions, there is also a heavy and important interrelation among them. For a good company, the financial strategies may often guide the operational decisions and at the same time the operational decisions will often have to be checked by the financial strategies. Since profit is the premise of enterprise existence and development, financial indexes are the expectations and requirement of shareholders while financial profits finally come from the final customers and users. The strategic initiatives will have an influence on the marketing decisions while the mar keting activities may reveal new strategic chances that the managers should keep a close eye on. Using the example of the Volkswagen group to support your analysis As a famous brand in the world market, Volkswagen always has a high market sharing and strongly stimulates consumers purchasing desire. This strong brand and advanced technology has won many consumers trusts. The company has a well-developed business strategy which can properly deal with the relationships of the four key dimensions (Nile Jeffrey, 2004). This can be reflected in the following aspects: first, Volkswagen has seized the market opportunities and gasped the marketing regular patterns. The company has made use of the governments policies and propagandized the advanced consumption ideas in order to stimulate customers purchasing desires. Second, Volkswagen has made productions with better quality, provided relatively perfect after-sale service and in this way it can recognized by the market and the customers (Tallman, Jenkins Pinch, 2004). So from this point, the researcher also can find out that the operations and the marketing are in close relationship. Third, better b usiness strategy has provided another chance for the companys development. Volkswagen has made different strategies for different period and it also made adjustment for the changes of the market and government policy. This also has helped dividing the market, selecting the target market and relocating. Conclusion In this paper, the researcher discussed the successful business strategies of the corporation, including the integrated nature of developing a corporate strategy, the four key dimensions of well-developed business strategies and using the example of the Volkswagen group to support the analysis.

Who Are The Most Important Actors Of The Global Political...

Who are the most important actors in the global political economy and Why? Ipe is about culture and society as well In all spheres and society is also a Unequal relationship of society is basis of Introduction/thesis statements: Global Political Economy is essentially a study of a political battle between the winners and losers of global economic exchange. In fact, understanding global economy relies on a clear knowledge of the process of political competition. Political power possessed by actors regulates economic activity and in turn this creates the basis for and affects political power. Through, critical analysis of the concept of global political economy it becomes clear that there are three prominent theories that form GPE, mercantilism, economic liberalism and Marxism. At this point in time, the main actors in the international system are nation-states seeking an agenda of their own based on personal gain and national interest. Significantly, the most important actor is the United States, a liberal international economy, appointed its power after the interwar period becoming the dominant economy and in turn attained the position of hegemonic stability in the international system. The reason why the United States is dominating is imbedded in their intrinsic desire to continuously strive for their own national interest both political and economic. Further, there are other nature of actors that are not just nation-states, including non-states or transnational,Show MoreRelated An Analysis of The Dominate Perspectives of International Political Economy1532 Words   |  7 Pagesinternational political economy, three dominant perspectives have emerged over time. The differences and similarities between the realist/mercantilist, liberalism, and historica l structuralism perspectives are significant. In this essay, I will compare and contrast these dominant perspectives. First, I will give a historical account of how each perspective originated. Then I will outline the actors involved in each perspective, explore those actors’ interests, and outline which of those actors set economicRead MoreMarketing Analysis : Global Supply Chain Essay1721 Words   |  7 PagesGlobal supply chain remains a highly contested theme and there have been many attempts to define the real winner and competition of market power in the literature. The participant network varies in size and scope, depending on the products involved, geographic dispersion of supply and demand, and customer service requirements. Martin Christopher (2011: 15) states that within global supply chains the real competition is not company against company but rather, supply chains against supply chains. ThisRead MorePrimary Actors in International Society Essay1246 Words   |   5 Pagesregimes collapsed and Germany became whole again. Since then, emerging actors have joined states to collectively impact international society, and an important question to ask is: Are non-state actors becoming more important than state actors? Although non-state actors, such as terrorists and region states, have become increasingly important in the modern world, states remain the primary actors since they influence non-state actors, and ultimately provide order in the international society. DueRead MoreClimate Change Has Become The Most Pressing Issue Of Our Time1448 Words   |  6 PagesIt is best put bluntly: climate change has become the most pressing issue of our time. It is a concern so urgent that many say we have already passed a point in which we cannot recover; we can merely hope to minimize the damage. It is an issue that has found its way to the forefront of many governmental platforms, regardless of political affiliation. Most recently, APEC - Asia-Pacific Economic Cooperation – held its yearly summit in Beijing, the capital of the world’s greatest polluter: China. HoweverRead MorePolitical-Cultural Approach to Market Institutions Essay932 Words   |  4 PagesMarkets as Politics: A Political-Cultural Approach to Market Institutions Author: Neil Fligstein in: American Sociological Review, 1996, Vol. 61 (August:656-673) personal summary Markets are social constructions that reflect the unique political-cultural construction of their firms and nations. The creation of markets implies societal solutions to the problems of property rights, governance structures, conceptions of control, and rules of exchange. These solutions are then linked to current perspectivesRead MoreDifferent Types of Leadership and Liberalism Essay1632 Words   |  7 PagesWe shall first start by defining a leader as a whole. Who is a leader? Basically a leader is someone who gives directions to others, that is he or she is in charge and takes responsibility of the people being led by him or her. Hence leadership comes from leader meaning the act of portraying the qualities and role of a leader. Leaders tend to be more of serving the people rather than commanding as many may think. They show qualities such as being caring, focused, committed and have a high sense ofRead MoreTransnational Corporations As The Movers And Shapers Of The World Economy : A Critical Consideration1428 Words   |  6 PagesTransnational Corporations as the Primary ‘movers and shapers’ of the World Economy: A critical consideration Transnational corporations (TNC’s) have often been regarded by many commentators as the dominant institutions within the contemporary global economy, and popular discourse has regularly painted TNC’s as amoral financial behemoths that transcend state boundaries and plunder the earth’s resources at will. Dicken (2007), in his examination of TNC’s, attempted to allay some of the misconceptionsRead MoreHow And Why One Should Reform The Global Economy1245 Words   |  5 PagesHow and Why One Should Reform the Global Economy It was chosen the texts, which are related to the last global economic crises in 2008 and more later analysis of the influence of globalization on national politics of different countries. The first one is a chapter from the book Free fall: America, Free Markets, and the Sinking of the World Economy by Joseph E.Stiglitz, the title of which is The Making of the Crisis. Joseph Stiglitz described the background of the economic crisis in 2008. He startedRead MoreGlobal Security And International Global Economy Essay2123 Words   |  9 Pagesthe past decade, the world economy has been in trouble having to face multiple critical situations. In the world we live in today, it seems impossible to only choose one of ‘most’ critical challenges we are facing in our international economy. The amount of conflicting challenges the global economy is dealing with is absurd. A few major issues are: Environmental Security, Global Corporation, Political war/conflict, Globalization and so much more. Needless to say global security and internationalRead MoreThe Hidden Side Of Social And Solidarity Economy Social Movements1469 Words   |  6 Pages2. The Hidden Side of Socia l and Solidarity Economy Social Movements and the â€Å"Translation† of SSE into Policy (Latin America) Introduction: The nature and meaning of a social and solidarity economy (SSE) encompasses the potentials of collective action. Collective action has been a mechanism for social change in a multitude global crisis and social interactions (Utting, 2013). Social solidarity economies are a broad range of organizations that have both economic and social aims (Utting, 2013). A

Telecity Group Plc Financal Statement Analysis Free Essays

Submitted in fulfillment of assignment 1 of Financial and Management Accounting course Telecity Group plc Background Founded in 1998 with the establishing of the first data centre in Manchester, Telecity Group plc is operating a carrier-neutral data centre in Europe to support digital economy. It is a combination of TeleCity Limited, Redbus Interhouse Limited and Globix Holdings (UK) Limited. As a leading provider of data centre services, Telecity Group plc is listed in London Stock Exchange. We will write a custom essay sample on Telecity Group Plc Financal Statement Analysis or any similar topic only for you Order Now In the meanwhile, it is is a constituent of the FTSE 250, FTSE techMARK 100 and FTSE4 Good indices. Driven by the rapidly increasing of digital economy, Telecity Group has been targeting to build secure, resilient and highly-connected colocation environments for the IT and telecoms equipment, to which customers can outsource their telecoms, web and IT infrastructures. For this purpose, Telecity Goup has launched the demand-driven data expansion programme, which is expanding its data center capacity through Europe. This European-based programme is expected to increase customer power capacity, which will in turn bust company economic of scale. Furthermore, as an Information Technology Company, Telecity Group has been highly relying on high and new technology to attract new customers and increase profits. Thus, much effort has been put into company’s ability to innovate new products and services in terms of data accessibility, security and specialty. Focusing on evaluating the implementation of its growth strategy, this paper will analyse it is financial statement base on the basic financial ratios. Ratios Analysis Introduction This section will evaluate Telecity Group plc’s financial ratios in detail. Other than looking at the past and present performance trends of the Group, this essay will also discover the company’s financial performance in comparison to Datacenter industry overall. Consequently, company management team will be able to determine the short term forecast of future performance. Furthermore, the analysis in this section can give guidance to investors by providing data and giving realistic view of Telecity Group’s inancial position and comparison to the industry. Profitability Ratios Given the important role profit plays as financing both dividends to shareholders and retained earnings, it is the main measure of financial performance. Figure 1 Profitability Ratios (GPM- Gross profit margin, OPM- Operational profit margin) As can be seen from figure 2, the gross profit was dramatically increased from 52% to 56 % through year 2010, and there wa s impressively improvement for year 2011. This can be explained by company’s successfully implementation of its growth strategy. On one side, driven by the high demanding of digital economy, the company has been focusing on increasing earnings by expanding data centre capacity and adopting new technology. On the other hand, along with the growth there is high cost. However, the even higher revenue growth still made the growth of gross profit margin. Operation profit was slightly decrease in year 2011, which implies high administrative costs in 2011. This is mainly because of a total amount of ? ,510,000 provisions respect of certain leases and the acquisition with Data Electronics and UK Grid, the costs of which were accounted in operational exceptional items in consolidated income statement. Figure 2 Profitability Ratios (PreTPM- Pre-tax profit margin, PostTPM- Post-tax profit margin) The pre-tax profit margin has also significantly improved from near 23. 5 % to about 25 % in 2011. One of reasons of this improvement is the gains on foreign exchange. The most important reason should be the write off of costs incurred on refinancing, which was an ? 00m five-year financing agreement with Barclays, HSBC, Lloyds Banking Group and RBS from last year. Unlike PreTMP, post-tax profit margin has dropped impressively to about 17. 6 %. This may be mainly because of the dramatically increment in both current tax and deferred tax. Figure 3 Profitability Ratios (ROCE- Returns on capital employed, ROE- Returns on equity) Figure 3 shows that The Telecity Group’s average ROE is comparable to industry ratio which is 7. 1% up to year 2010. However, in terms of growth, the trend is dramatically going down from 2009, which is despite the fact that both total equity and profit after tax have been improved. However, the growth of profit was not in pace with the equity. In fact, this makes sense when take into account the company’s expansion strategy, which has been being successfully implemented by setting up new data centres across Europe. A big money has been invested in this expansion program, which in turn provided the company high potential turn-over. In general, financial analysts consider return on equity ratios in the 15-20% range as representing attractive levels of investment quality. In this sense, the company’s performance is healthy with regards to efficiency of profitability. ROCE is one of Telecity Group key performance indicator, which is added to evaluate company’s strategy of focusing earnings return from investment. ROCE was decreased during year 2011, which was due to the company’s capacity expansion programme and acquisitions’ effect. Even though, the company’s performance in terms of generating returns is healthy in comparison with industry average rate at about 8%. Liquidity Rations Liquidity ratios are to measure a company’s ability to pay off its short-term financial obligations (Atrill and McLaney, 2011). Figure 4 Liquidity Ratios In theory, the higher current ratio is better as it clearly identifies the company’s ability to pay off short debts fund its on-going operations. (Investpedia, 2009) In the case of Telecity Group, its average current ratio shows that the current assets are not able to cover its current liabilities. This is mainly because the company has invested a big money into company’s capacity expansion program and acquisition, which are holding most of company’s capital. However, the average rate is comparable to the industry as a whole at 0. 8. Trade receivable days are healthy between 25 and 40 days over the year from 2009 to 2011, there is even a decrease from 40 days to 35 days in year 2011. This is due to the demanding digital economy market. Financial Gearing Financial gearing happens when business is financed in a way of borrowing (Atrill and McLaney, 2011). The analysis of gearing ratios is to evaluate the business’s level of gearing, which is the key factor of assessing risk. Figure 5 Gearing Rations (D/E- Debts to equity, ND/E- Net debt to equity) Figure 5 shows that gross debt to equity has increased from about 30% to over 60% in year 2011 after a slightly decreasing in year 2010, which indicates Telecity Group is highly geared in 2011. This is because the significantly increase of non-current borrowing for company’s capacity expansion program and the two acquisitions. Net debt to equity is concerned with company cash to repay the borrowings. It has impressively increased to more than 60% as well demonstrating that risk exists at Telecity Group’s failure. Figure 6 Gearing Ratios (IC- Interest covre, NIC- Net interest cover) Interest cover ratio measures the amount of operating profit available to cover interest payable(Atrill and McLaney, 2011)†. As can be seen from figure 6, gross interest cover has fallen from 11 % to 10. 4 % in 2011. In terms of net interest cover which takes into account finance income, the cover ratios were slightly increased. Overall, the figures are showing that Telecity Group has t he strong ability to service its debt. Cash flow analysis CFPS is concerned with the company ability of generating cash. Therefore, it is commonly referred by analysts for more accurate measure of a company’s financial situation. Figure 7 Cash flow ratios (EPS- Earnings per share) The CFPS has increased from 37 pence in 2009 to 60 pence in 2011. The EPS is averagely higher then CFPS as we would commonly expected. Both EPS and CFPS have increased over the two years. The main reasons for the increase and the difference between CFPS and EP as follows: 1. Movement in foreigner exchange 2. Movement in trade receivables and trade payables 3. Depreciation charge 4. Cost of exceptional items To sum up, the net cash flow from operating activities has significantly improved by 25 % to over ? 120million. Over ? 00 million was spent on investment activities, which include capacity expansion program and acquisition activities. Investment analysis â€Å"Investment ratios are designed to help shareholder to assess the returns on their investment† (Atrill and McLaney, 2011). Earnings per share have risen from 19p to 21p in 2011, which is basically because of the increasing profit margin over the year. Conclusion As ca n be seen from above, the Telecity Group plc has gone through a stable healthy financial year with regards the implementation of its growth strategy. Telecity Group’s profitability stayed stable and healthy in the near two years. The low profit increment was due to the company’s expansion and acquisition strategy. Given the fact that data centre services is demanding in digital economy, Teleicty Group’s successfully expansion and acquisition will in turn make big returns. Liquidity is poor in terms of ability to cover its current liabilities. However, given the industry ratio being 0. 58, it is comparable healthy in the market. Furthermore, the short trade receivable days imply the high market demands in the data centre industry. Company’s gearing has risen to extremely high level due to its growth strategy. From investor’s perspective, there would be risk of investing in the case of company’s failure. However, take into the consideration of the characters of data centre industry, which are demanding the high capacity, connectivity and flexible services, Telecity group are in no way to failure as it has achieved successful implementation of its business across Europe and gained the potential of attracting new contract with exiting as well as new customers. Overall, the Telecity has been seeking the best practise within the data centre industry as a leading provider of premium carrier-neutral data centres. As the result of its successful capacity expansion and acquisitions, the further high turnover is inevitably. Appendix 1 Profitability| Gross Profit Margin| =| Gross Profit/Revenue%| ? | ? | 2009| =| 88,727| /| 169,383| %| =| 52. 4%| 2010| =| 109,773| /| 196,397| %| =| 55. 9%| 2011| =| 134,701| /| 239,818| %| =| 56. 2%| ?| Operating Profit Margin| =| Operating profit/Revenue%| | ? | 2009| ? | 39,102| /| 169,383| %| =| 23. 1%| 2010| =| 55,173| /| 196,397| %| =| 28. 1%| 2011| =| 65,359| /| 239,818| %| =| 27. 3%| ?| Pre-tax profit Margin| =| Profit before tax/Revenue%| ? | ? | 2009| =| 38120| /| 169,383| %| =| 22. %| 2010| =| 45,941| /| 196,397| %| =| 23. 4%| 2011| =| 59,438| /| 239,818| %| =| 24. 8%| ?| ? | ? | ? | ? | ? | ? | ? | Post-tax profit Margin| =| Profit after tax/Revenue%? | ? | 2009| =| 34722| /| 169,383| %| =| 20. 5%| 2010| =| 38,031| /| 196,397| %| =| 19. 4%| 2011| =| 42,641| /| 239,818| %| =| 17. 8%| | Return on Capital Employed| =| Operating Profit/Total Capital employ ed| ? | ? | 2009| =| 39,102| /| (80,467+218,931)| %| =| 13. 1%| 2010| =| 55,173| /| (80654+257,545)| %| =| 16. 3%| 2011| =| 65,359| /| (183,451+298,027)| %| =| 13. 6%| | Return on Equity| =| Profit after Tax| /| Equity| %| ? ? | 2009| =| 34722| /| 218,931| %| =| 15. 9%| 2010| =| 38,031| /| 257,545| %| =| 14. 8%| 2011| =| 42,641| /| 298,027| %| =| 14. 3%| Liquidity| Current Ratio| =| current Assets/Current Liabilities | 2009| =| 51,623| /| 82,961| =| 0. 6 | ? | ? | 2010| =| 46,501| /| 82,474| =| 0. 6 | ? | ? | 2011| =| 48,398| /| 103,283| =| 0. 5 | ? | ? | ?| Trade payable days| =| Trade payables/Cost of Revenue*365| 2009| =| 47,089| /| 80,656| *| 365| =| 213days| 2010| =| 47,085| /| 86,624| *| 365| =| 198days | 2011| =| 57,935| /| 105,117| *| 365| =| 201days | ?| Trade receivable days| =| Trade receivable /Revenue? | 009| =| (19,483-6,975)| /| 169,383| *| 365| =| 27days| 2010| =| (22,139-746)| /| 196,397| *| 365| =| 40days| 2011| =| (26,365-3,560)| /| 239,818| *| 365| =| 35days| Gea ring| Debt to equity| =| Non-current borrowings/Equity%| 2009| =| 80,467| /| 218,931| %| =| 36. 8%| 2010| =| 80,654| /| 257,545| %| =| 31. 3%| 2011| =| 183,451| /| 298,027| %| =| 61. 6%| ?| Net debt to equity| =| Borrowings less cash/Total Equity%? | 2009| =| (80,467-32,140)| /| 218,931| %| =| 22. 1%| 2010| =| (80,654-24,362)| /| 257,545| %| =| 21. 9%| 2011| =| (183,451-22,033)| /| 298,027| %| =| 54. 2%| | Interest Cover| =| Operating profit/Interest expense ? 2009| =| 39,102| /| 3788| =| 10. 3| ? | 2010| =| 55,173| /| 5,017| =| 11| ? | 2011| =| 65,359| /| 6,300| =| 10. 4| ? | ?| ? | ? | ? | ? | ? | ? | ? | Net Interest cover| =| Operating profit/Net Interest expense| *Net interest expense=Finance expense-interest? | 2009| =| 39,102| /| (3788-117)| =| 10. 7| ? | 2010| =| 55,173| /| (5017-11)| =| 11. 0 | ? | 2011| ? | 65,359| /| (6300-103)| =| 10. 5 | ? | Cash Flow| Cash flow per share| =| Net cash flow from operating activities/Number of equity share issued| 2009| =| 74,017| /| 198, 092| =| 0. 37365| =| 37. 4p| 2010| =| 96,380| /| 198,092| =| 0. 86542| =| 48. 7p| 2011| =| 120,554| /| 198,892| =| 0. 606128| =| 60. 6p| Investment| Earnings Per Share| ? | ? | 2010| =| 19. 0p| 2011| =| 21. 1p| References Atrill, P. and McLaney,P. (2011) Accounting and Finance for Non-Specialists. 7th. ed. Essex: Pearson Education Limited. Telecity Group plc Annual report and accounts 2011 Data centres at the heart of the digital economy, 2011 TelecityGroup. Telecity Group plc Annual report and accounts 2010 Data centres at the heart of the digital economy, 2010 TelecityGroup. http://www. investopedia. com/terms/c/currentratio. asp, Investopedia. How to cite Telecity Group Plc Financal Statement Analysis, Papers

Australian Dairy Farmers-Free-Samples for Students-Myassignment

Question: Analyse and Interpret data to assess the Competitive Challenges and Opportunities facing a specific sector of the Food Industry. Answer: Introduction Australia is not a big producer of milk but it is the 3rd largest dairy exporter in the world and they export 50% of their production. After wheat and beef, it is their 3rd largest rural industry with a gross value of $4 billion. Among the dairy products they produce milk, yoghurt, milk powder, cheese and butter. The sector is mainly spread in south- eastern parts of Australia with Victoria being the largest producer. Production in Victoria is mainly seasonal and their entry in the export market makes them susceptible to unpredictable global prices. Other areas which produce dairy products provide the domestic market for an all year production (Barkema et al., 2015). About the industry In 1788, the first dairy cows had arrived in Australia. They had faced problems with poor grazing condition and fodder. Lack of refrigeration referred to the prior serving of the domestic market by the Australian industry. Most of the production areas were situated close to the consumers so that they could be easily accessible. With the advancement of refrigeration, there was commercialization in the industry. It became possible for the farmers to increase their profitability and efficiency. For ease of transporting, processing and marketing of the milk produced by the farmers, cooperatives were established. But with the corporatization of those cooperatives it became a challenge for the dairy farmers again to gain profit or increase their productivity and efficiency (Beggs et al., 2015). Few important facts are given in the following table. Fig- Dairy facts in Australia Source- Buys et al.,2014 Challenges and opportunities The modification in the Australian dairy industry has put it in a favorable condition as compared to other sectors of the food industry. It has helped in increasing the technical efficiency and strong herd genetics. The following figure will help in portraying the SWOT analysis of the industry. Strengths- increased efficiency in production; in a stable position for export market; strong hold in the export business Opportunities- risk in the management of production; rise in demand from the Asian countries; achieving greater efficiency in the market Weakness- unpredictable climatic condition; purchasing and selling of retail and wholesale products; uncertain policy and rules Threats- change in the climate; protectionism in the competitive market; input prices Recently there are various challenges faced by the Australian dairy industry along its supply chain. The different stages in the supply chain include input, production, processing, exporting, manufacturing and retailing of milk and milk products. There is volatility in the price along with a decrease in price at the input level. Uncertainty and unavailability of water due to scarcity of rain and increase in urbanization is a threat to the dairy industry. The investment and adaptation in the production stage and restructuring might be a challenge for the dairy industry (Byrne et al., 2016). Production factors and international demand are the major criteria which tend to be an opportunity for the dairy industry of Australia. It is important for the production system to adapt to the uncertainty in climatic condition and increase in volatility of market. The deregulation in the dairy industry with a clear focus on has been favorable to meet with the increased global demand. This demand in the developing markets has not decreased with the increase in prices. Demand markets are also important for the benefit of Australias industry. It has led to an increase of 33% in the consumption of dairy products. Increase in the price of oil is directly proportional to income and demand. Domestic production rate will be limited which signifies that the growth in demand will be met by the import business. There is a strong relationship between the Australian dairy industry and developing markets (Moate et al., 2014). Analysis and interpretation Future of the dairy industry among farmers as measured by NDFS has decreased from 67% in 2016 to 53% in 2017. A study has also showed that the profitability for three years is so low that 45% of farmers when surveyed anticipated a profit in 2016- 17. Improved margins have controlled the decrease in milk production and there has been an increase of 3.8% in the overall demand for export. Fig- Export share and region- wise analysis Source- Nettle, Brightling Hope, 2013 Fig- Australian milk production (billion litres) Source- Byrne et al., 2016 ADF or Australian Dairy Farmers Ltd is a non- profitable organization which takes care of the interests of the dairy farmers. They get the partial funding of 30% from voluntary fees, members of the organization and some income from the fund. Fig- Statistics of Australian dairy industry (2009- 10) Source- Regulations, 2013 The supplementary food or grain is becoming common as the Australian dairy industry is based on pasture. The industry gets an added value through processing and manufacture of milk and milk products. Overview The dairy industry of Australia is well stocked with government interventions. This results in the use of inefficient resource and increase in the price of milk and milk products. This intervention causes a virtual distinction between the two types of milk used for consumption and manufacturing of dairy products. Price of market milk is higher than manufacturing milk even though there is no difference. The kinds of intervention are- regulated price of milk in all the states, definite quota for market milk, regulation in the processing and distribution of milk, regulation in the retail prices of market milk in almost all the states, limitation in some states for trading of market milk, tariff quota for restriction on the import of cheese and control on the export business by the statutory bodies. Conclusion The strong relationship between of the Australian dairy industry and the developing market has lead to increased growth and export. The demand of the market has also increased the awareness about the nutritional value of milk. Although the dairy industry has faced remarkable challenges like financial crisis, drought and deregulation but their ability to face such difficult situations with collective actions has proven has helped in attaining success. The major element of success for the dairy industry is the policy environment which helps it to adapt and develop. Competition in the processing and functioning of dairy industry ensures options for the stakeholders while selling and purchasing the dairy products. References Barkema, H. W., Von Keyserlingk, M. A. G., Kastelic, J. P., Lam, T. J. G. M., Luby, C., Roy, J. P., ... Kelton, D. F. (2015). Invited review: Changes in the dairy industry affecting dairy cattle health and welfare.Journal of dairy science,98(11), 7426-7445. Beggs, D. S., Fisher, A. D., Jongman, E. C., Hemsworth, P. H. (2015). A survey of Australian dairy farmers to investigate animal welfare risks associated with increasing scale of production.Journal of dairy science,98(8), 5330-5338. Buys, L., Mengersen, K., Johnson, S., van Buuren, N., Chauvin, A. (2014). Creating a Sustainability Scorecard as a predictive tool for measuring the complex social, economic and environmental impacts of industries, a case study: Assessing the viability and sustainability of the dairy industry.Journal of environmental management,133, 184-192. Byrne, T. J., Santos, B. F. S., Amer, P. R., Martin-Collado, D., Pryce, J. E., Axford, M. (2016). New breeding objectives and selection indices for the Australian dairy industry.Journal of dairy science,99(10), 8146-8167. Moate, P. J., Williams, S. R. O., Deighton, M. H., Pryce, J. E., Hayes, B. J., Jacobs, J. L., ... Wales, W. J. (2014, November). Mitigation of enteric methane emissions from the Australian dairy industry. InProceedings of the 6th Australasian dairy science symposium(pp. 19-21). Nettle, R., Brightling, P., Hope, A. (2013). How programme teams progress agricultural innovation in the Australian dairy industry.The Journal of Agricultural Education and Extension,19(3), 271-290. Rad, S. J., Lewis, M. J. (2014). Water utilisation, energy utilisation and waste water management in the dairy industry: a review.International Journal of Dairy Technology,67(1), 1-20. Regulations, P. (2013). Australian Dairy Industry.