Essays on Strategic and Organizational Capabilities Needed by Bega Cheese Assignment

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The paper "Strategic and Organizational Capabilities Needed by Bega Cheese" is an outstanding example of a management assignment.   Bega cheese is the largest cheese manufacturer in Australia and currently one of the top companies in the world that produce dairy products. Bega cheese also specializes in other dairy products such as milk powders and cheddar including mozzarella. All these products are largely sold in the Australian market with a substantial percentage of the products being exported overseas. Asia provides the largest market for Australian dairy products. For a company that started in 1899, it has a strong base and good knowledge of how both the Australian and the international market operates.

Since 2007 the company has witnessed tremendous growth doubling its size over the period (Waitt & Gibson, 2013). Economic environments have been changing over time since 2007 and most regions have undergone hard economic times before bouncing back. Based on the current Australian statistics of 2014, Bega cheese is on the top of its game. It is currently being rated as the most expensive dairy factory on the basis of price to earnings (Phillips, 2014).

Despite all these successes, economic environments are unpredictable. This article will, therefore, base its contextual analysis on discussing important strategic and organizational factors that Bega cheese can employ to stay ahead of the competition. This will be done by analyzing what are the factors for Bega cheese success and what loopholes can be manipulated to help the company stay ahead of the competition. Overview of the economic environment The economic environment that any business survives in is made up of many factors. These factors range from the parent country environment to international operational standards.

The major factors include political environment, technological environment, economic factors and the international operational environment. Of great importance are the economic factors which include inflation and other factors such as monetary systems (Burton-Jones, 2001). Inflation rates usually vary depending on economic development. Political factors are also important in determining several strategic decisions made by multinationals (Tobin & Rose-Ackerman, 2011). Currently, Bega Cheese performance in Australia has not been but there is still a strong force from the upcoming local dairy companies. The election mood witnessed in the country in 2013 held back economic progress.

The previous economic conditions in Australia were not conducive but a recent study indicates that the economy is currently picking up after cooling down of the political temperature. This indicates competition between companies will be stiff as 2015 approaches. To stay ahead of the competition, Bega cheese has to play cool with the current political class. This will be effective in ensuring that major deals are passed in favor of the company. Having a political back up also ensures stability in the current market.

Though not morally right, political or governmental support can ensure that rules of the game favor only one industry thus staying ahead of the competition (Fenna, 2013). China is the largest market in Asia and most of the Australian products are exported there. This indicates that an economic crisis in China will have a direct impact on the Australian economy. Companies, therefore, have to be backed up with other options in order to survive such periods. The only better option is capitalizing on the Australian domestic market.

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