ACC311 Impact the Operating Environment
Operating in the dairy industry, The a2 Milk Company impacts the environment in a number of different ways and there are certain initiatives that the firm can take to minimise these impacts. The firm also impacts a number of different stakeholder groups and there are a number of key social concerns that management must be cognisant of. Prepare a report which identifies and summarises the key environmental and social concerns relating to the operations of The a2 Milk Company. Your discussion should consider a range of different stakeholder groups and a number of different environmental and social issues from across the firm's value chain.
As part of your report, suggest three potential environmental and social objectives that the firm could strive to achieve. For each of these objectives, suggest at least 2 measures that the firm could use to measure their progress towards the objectives (the template below should be used to summarise your findings for this task). This table should be presented within the body of your report and your recommendations should be thoroughly discussed.
|
Dimension |
Objective |
Possible Performance Measures |
|
Environmental |
1. |
a. |
|
2. |
a. | |
|
3. |
a. | |
|
Social |
1. |
a. |
|
2. |
a. | |
|
3. |
a. |
Some Guidelines for you:
This report must be supported by reference to a range of relevant academic and other research sources.
Paragraph Structure
A paragraph must have both unity and cohesion. It is “a group of related sentences that develops one main idea.
Answer:
The a2 Milk Company has been found to impact the operating environment in a number of ways and the Company has undertaken certain initiatives to minimise those impacts (Thea2milkcompany.com, 2018). The aim of the report is to identify the key environmental and social concerns related to the operations of the Company. Followed by this, the report will aim at suggesting three potential environmental and social objectives and a thorough recommendation for the Company.
Key environmental and social concerns:
The a2 Milk Company has been in news for certain environmental and social concerns in its business operation. It has been found that the company had taken initiative to commercialise a kind of genetic test on cows to determine if a cow can produce milk without A1 protein. This initiative to develop a herd that would only produce a2 milk created major concerns. In the article, Trivedi and Deth, (2016) stated that the initiative was delayed by the opposition from Fonterra because it had around 98% of New Zealand’s dairy farms.
However, Paterson attempted to force High Court of New Zealand to put health warnings because the milk can lead to various diseases like schizophrenia, type 1 diabetes, autism and even major heart disease (Wilkinson & Garnsworthy, 2017). As a consequent to this act, the entire economy of New Zealand was threatened and Fonterra also had troubles in managing the international reputation as this company was responsible for exporting more than 20% of products from New Zealand (Landcareaustralia.org.au, 2018). This act was one of the major environmental concerns that the company had brought to the country.
If the social concerns related to A2 Company are considered, it has been found that the company has been selling its milk at a rocketed price compared to the other companies in the market claiming that the milk is better as it contained both A1 and A2 proteins that will not result in indigestion. In such claims, the major stakeholders like Nestle and other big companies coming up with better formulas decided to sell their own brand to A2 Milk Company so that the products can be sold easily in the market of China. Major shareholders like the fund managers Colonial First State Global Asset Management, Greencape Capital Pty Ltd and Challenger Managed Investments Ltd had to lower down their position (Thea2milkcompany.com, 2018).
Three potential environmental and social objectives:
The primary objective of the Company was to supply better quality and healthy milk to the customers that would not result in certain diseases like diabetes, autism or heart related problems (Jianqin et al., 2015). However, at the same time the Company also wanted to increase its business and capture the market of Australia, New Zealand and China by claiming that their products are the best.
|
Dimension |
Objective |
Possible Performance Measures |
|
Environmental |
1. To achieve sustainability |
a. By the means of Sustainable Agriculture Grant program. |
|
2. To enhance positive environmental outcome |
a. The program also suggests increasing productivity of food along with increased biodiversity and better pasturing health (Trivedi & Deth, 2016). | |
|
3. Promising better health of the herds |
a. The nutrients supplied to the herd and cattle were of good quality to ensure better health of the animals. | |
|
Social |
1. To establish a brand power |
a. As a result of an infamous milk powder scandal, the demand of milk of A2 company increased in China (Wilkinson & Garnsworthy, 2017). |
|
2. Major stakeholders had to sell down |
a. The expensive milk resulted in backing out of major stakeholders. | |
|
3. A crackdown in China on gray-market imports |
a. As a result of A2 Milk Company in China, other companies like Bellamy’s Australia and Blackmores Ltd turned away from using daigou |
Recommendations:
It has to be understood by the Company that milk does not equate with riches and thus, the company has to cut down the price of its product. This situation is most important when it comes to New Zealand dairy that faces toughest challenges in terms of farm gating prices in the recent seasonal condition in past few years (Navarro et al., 2015). The market is getting boasted with digestive benefit products. In addition to this, as commented by Banerjee, (2018), the company can also come up with variety of products for infants or people belonging to different age groups considering the health benefits.
Conclusion
A detailed analysis on the social and environmental concerns of a2 Milk Company has been discussed. It has been found that the company claimed to supply best quality milk at a very expensive price compared to others as a result of which many stakeholders had to suffer. Considering milk to be white gold, the company has to reduce the price of its milk.
References
Banerjee, S. (2018). A2 Milk: The Unknown Story About a Milk Protein. Acta Scientific Nutritional Health, 2, 28-31.
Jianqin, S., Leiming, X., Lu, X., Yelland, G. W., Ni, J., & Clarke, A. J. (2015). Effects of milk containing only A2 beta casein versus milk containing both A1 and A2 beta casein proteins on gastrointestinal physiology, symptoms of discomfort, and cognitive behavior of people with self-reported intolerance to traditional cows’ milk. Nutrition journal, 15(1), 35.
Landcareaustralia.org.au (2018) The a2 Milk Company
Navarro, E. F., Faure, G., Cortijo, E., De Nys, E., Bogue, J., Gómez, C., ... & Le Gal, P. Y. (2015). The impacts of differentiated markets on the relationship between dairy processors and smallholder farmers in the Peruvian Andes. Agricultural Systems, 132, 145-156.
Thea2milkcompany.com (2018) Latest Company News
Trivedi, M., & Deth, R. (2016). Clinical and pre-clinical evaluation of the effect of different type of beta-casein on redox and epigenetic status.
Wilkinson, J. M., & Garnsworthy, P. C. (2017). Dietary options to reduce the environmental impact of milk production. The Journal of Agricultural Science, 155(2), 334-347.
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