AGRANA – From a local supplier to a global player Essay

The place market from the European Union is one market which everyone has free motion with goods. services. capital and people. This was non ever the manner if we look back before the clip of the EU we had a Europe which was overfilled with struggles and wars. Because of the foundation of the EU we got a batch of chances in the Western Europe and in Central and Eastern Europe but besides challenges because it’s non easy to convey so many different states together with different regulations. civilizations. norms and moralss under one large Union.

Western Europe
The Western Europe refers to the states in the West of Europe. where the differentiation is different depending on the context. But the boundary lines between Western Europe and CEE were one time determined by the ratio of power between USA and UDSSR during the Cold War. Europe was so divided in half by the Iron Curtain. Opportunities:

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One large chance for Western Europe is that the houses can acquire inexpensive human capital for their ain work. Even today a blue-collar worker in Germany earns a batch more than in Poland. Another point is that the houses can put in other endeavors from the CEE. So they can turn highly fast as we have seen this with the AGRANA Company. With the difference in civilization between Western Europe and CEE the houses can come in in a new market which can be truly profitable. Challenges:

But the fact. that the houses can acquire so inexpensive human resources. is on the other manus besides a job. Because of the inexpensive human resources. the ain place state workers will lose their occupation and the unemployment rate of the state will lift. Another challenges is. that houses from the CEE country can spread out to the Western Europe country. so there is the danger. that it will acquire dumping monetary values. The other civilization and norms makes the whole state of affairs a batch harder. The houses have to see tonss of different facets. When they don’t do that the new subdivisions can non lift and boom in the CEE states. These are a few challenges for the Western portion of Europe and it is non easy to work out these jobs. Central and Eastern Europe

The Central and Eastern Europe states include all the Eastern axis states West of the Iron Curtain. which was collapsed in 1989-90. Besides included are the three Baltic States Estonia. Latvia and Lithuania. Opportunities:

For the CEE states the integrating of EU markets brought with it many chances to turn economically and politically. One of the large chances is that the CEE states can profit from the higher degree of life from the Western Europe states. Everybody can work easier and live in another state. So if you want to go forth your place state and settle down someplace else that is no longer a job. We still see this phenomenon to this really twenty-four hours in the Western European states. More and more people are coming to populate in the state than emigrate. The houses which can do concern in the CEE states are making new workplaces and paying revenue enhancements on the net income. So the whole state and the authorities have the opportunity to raise their degree of life. Challenges:

Of class there are on the other side besides challenges for the CEE states. One of them is that the states have to pay attending to their ain experts in the state. A batch of houses in the Western portion of Europe want to win the elite of the state over. This can be really unsafe for the ain economic system. The 2nd facet is that because of the globalisation the poorness spread is acquiring bigger and bigger every twenty-four hours. The CEE states have to be really careful that they don’t lose the entree to the industry provinces.

Question 2: From a resource-based position. what is behind AGRANA?s impressive growing?

“AGRANA was founded in 1988 as a keeping company for the Austrian sugar and Starch industry. Operationss started with 3 sugar workss. a murphy amylum works and a maize amylum works. ” “Nowadays. AGRANA is one of the taking providers to the transnational trade names around the universe with grosss of US $ 2. 6 billion and capitalisation of $ 1. 4 billion. In the last two decennaries. it has become a planetary participant with 52 production workss in 26 states with three strategic pillars: sugar. amylum and fruit. ” The resource-based position focuses on a firm?s internal resources and capablenesss. for case rare cognition in the refinement and processing of agricultural natural stuffs like AGRANA. These specific cognition is a large advantage for the AGRANA company and non easy to copy by other rivals. “After the reorganisation of the European sugar market by the European Union. AGRANA was motivated to look for new waies to guarantee future growing of the endeavor.

AGRANA decided to diversify into the fruit-processing sector in the hereafter. ” This was a truly happy determination. because AGRANA was able to convey their core competency of the polish procedure relatively easy to the fruit sector. With the bing cognition “AGRANA focused on fruit readyings and the fabrication of fruit juice concentrates to sell them globally to fruit juice and drink bottlers and fillers. ” An analysis of the day of the months of the Tables 4. 1a and degree Celsiuss ( AGRANA works locations ) shows. that the fruit sector is largely responsible for the impressive growing of the AGRANA Company in the last old ages. In merely four old ages ( from 2002/3 to 2006/7 ) AGRANA?s works locations increased from wholly 20 works locations ( 15 Sugar. 5 Starch. 0 Fruit ) to 53 ( 10 Sugar. 4 Starch. 39 Fruit ) . It is noticeable that during these four old ages the decrease of the figure of sugar and amylum workss was wholly compensated by the new fruit works locations.

Furthermore. AGRANA expanded during the growing period across the universe. Particularly with the fruit sector AGRANA practiced plant?s in states like Argentina. Brazil. China and USA for illustration. The key to the impressive growing of AGRANA and particular the fruit sector were firstly acquisitions and secondly “the ability to incorporate those acquired into the group to recognize interactive effects” . It started with the acquisitions of Denmark?s Vallo Saft ( presence in Denmark and Poland ) and Austria?s Steirerobst ( presence in Austria. Hungary. Poland Romania. Ukraine and Russia ) in 2003. Furthermore. this was followed by acquisitions of France Atys Group ( largest acquisition. 20 workss across every continent ) . Belgium?s Dirafrost and Germany?s Wink Group. “AGRANA?s most recent enlargement was a 50-50 joint venture with Xianyang Andre Juice Co. Ltd. in China. ”

The chosen consistent acquisitions policy of AGRANA?s CEO Johann Marihart was merely possible because of bing relationships and a immense sum of capital. AGRANA benefited from bing relationships to the nutrient and drink industry from the sugar and amylum sector. whereby the variegation into a new sector was a spot more straightforward. With the bing relationships it was easier to happen on the one manus acceptors for the new AGRANA merchandises and on the other manus new concern spouses in the country of distribution for illustration. Furthermore. “Johann Marihart believes that growing is an indispensable demand for the fabrication of top-quality merchandises at competitory monetary values. ” For this really ground. AGRANA is prospecting for new growing chances in the hereafter. Hence. AGRANA has started to diversify into the biofuel sector to guarantee future growing and enlargement of the company.

Question 3: From an international position what challenges do you anticipate AGRANA facing as it continues its enlargement into other parts such as Asia?

The impressive growing of the AGRANA Company is connected with an spread outing scheme in Europe every bit good as in other continents like America and Asia. With this scheme AGRANA discovers new regional. cultural and linguistic communication challenges for case. AGRANDA already have a batch of experience in Asia because in 2006 they acquired a 50 % interest in dressed ores maker Xianyang Andre Juice Co. Ltd the company is located in the state Shaanxi China and besides in 2008 AGRANA started a 2nd joint venture for apple juice dressed ore in Yongji China. But possibly they might hold the job of accommodating to a different concern civilization. The concern theoretical account that AGRANA usage in Europe and the western universe might non work every bit good in Asia. AGRANA will hold to be flexible and adapt to the concern features of that certain state that they expand excessively.

Many Asiatic states have certain concern features that are profoundly related to the states tradition and these traditions will non in most instances be changed. Because of this many of AGRANA’s concern criterions such as work moralss and direction manners may non fit up good with Asiatic civilization. In Asia a batch of administrative undertakings that have been made easy in the West can be really clip devouring. Many processs that would be handled electronically in the West need a batch of paperwork which need to be filled out and stamped by manus. Cultural misconstruing from miscommunication could be one of the biggest challenges that AGRANA will hold to face. It might be really difficult to do a concern trade in Asia because of communicating jobs as there are a batch of English talkers in Asia but non many of them would hold a strong plenty apprehension of both Chinese and western civilization to assist in concern dialogue state of affairs.

Besides Many Asiatic states have high context civilizations and AGRANDA would be more used to runing in low context civilizations like in most of Europe. “In high context civilizations communicating relies upon mute conditions or premises. ” This means that “yes” does non needfully intend “yes” and this could be a major challenge for AGRANDA as they would non be used to this. Besides another challenge that AGRANA might confront would be that their merchandises might non be as popular in these parts and because of this it might non be as profitable for the company to open a subdivision in Asia. Some of the substructure might non be really good in some eastern Asiatic states so things like transit of their merchandises might non be delivered really safe or every bit efficient as in their European subdivisions.

Besides because of clime and pollution it might be more money to maintain the merchandises fresh. ARGANDA might hold problem with human resources because in the western universe employees give a batch of duty and would hold more flexible lines of authorization whereas most of the Asiatic workers are more accustoms to a hierarchal construction in which each worker has their ain function. All in all AGRANDA can non vouch success in another part but if they stay sensitive to the countries civilization and local traditions for case they can at least avoid some basic errors.

Question 4: Compare the growing scheme of AGRANA to that of Danisco. one of its rivals in the sugar market. Which scheme do you anticipate to be more sustainable in the long tally?

To sum up the 2nd inquiry. AGRANA?s impressive growing scheme is affected by acquisition associated with the variegation into the fruit sector. AGRANA acquired rivals peculiarly in Europe and expanded around the World and led them to be one of the biggest participants.

“The Danisco Company is a Danish bio-based company with activities in nutrient production. enzymes and other bioproducts every bit good as a broad assortment of pharmaceutical class excipients. ” “Danisco employed 6800 people in 17 countries” and “is one of the world’s taking manufacturers of ingredients for nutrient and other consumer merchandises and was besides one of the biggest sugar manufacturers in Europe until the divestment of its sugar division to Nordzucker in 2009. ” However. to look at the things in the right sequences:

“Danisco had been created in 1989 by a amalgamation of three companies taking to make a strong Danish company that could vie in the EU common market after its completion” The new company reinforced the nutrients. nutrient ingredients and packaging concerns. peculiarly in the sugar sector. “Danisco foremost consolidated its dominant place and Denmark. and so grew by acquisitions. ” But after the reorganisation of the European sugar market and besides because of the strength of competition in the sugar market. Danisco was motivated to change and started a longtime transmutation procedure. In 1997. the new CEO Alf Duch-Pedersen of Danisco “started concentrating on going a planetary nutrient ingredients company. ”

During the undermentioned old ages. Danisco started to get tonss of ingredient and similar companies to originate the transmutation. The first measure to go a planetary nutrient ingredients company was to get the Finnish ingredient company Cultor in 1999 and at the same clip the divestment of the De Danske Spritfabrikker Company ( liquors and cordials ) and branded nutrients and nutrient packaging.

In June 2004. “Danisco acquired the Rhodia Food Ingredients Company which becomes Danisco?s dairy civilizations division. The division is one of the two taking manufacturers of dairy civilizations and nutrient safety products” . Rhodia is located in France and is an international operating company with a world-wide presence in Asia Pacific. Latin America and North America for case. This will be followed by the acquisition of Genencor International in 2005. “which became Danisco?s enzymes and bio-chemicals division” . Furthermore. Danisco invested in new research constitutions in Shanghai. China for illustration. In contrast to AGRANA. Danisco divested every bit good. for illustration the spirit division to Firmenich. But the most of import determination was the divestment of Danisco?s sugar division to the German Nordzucker AG.

With the divestment of the sugar division. which was one of its chief divisions in the yesteryear. the transmutation procedure was completed. During the transmutation procedure the internationalisation of gross revenues of the company increased quickly. It is mentioned that the gross revenues outside of Denmark rose from “69 per cent 1995 to 88 per cent in 2004 and over 95 per cent after the sale of the sugar division” . In add-on. it is impressive to see that the turnover of Danisco was ˆ 1. 7 million in 2009 and that the turnover consisted largely of all the continents. that means that Daniso has become a planetary participant runing all over the universe. “After the transmutation. Danisco was positioned as a specialised provider of nutrient ingredients based natural natural stuffs. Its clients included planetary nutrient giants such as Unilever. Kraft. DANONE and Nestle . every bit good as regional and local participants in all major economic systems. ” In a concluding measure. Danisco were acquired by the DuPont Company in 2011.

“Danisco?s attractive industrial enzymes and forte nutrient ingredients concerns have clear synergisms with the DuPont Applied BioSciences and Nutrition and Health concerns. ” This amalgamation advances both companies ‘global attempts to supply sustainable solutions and to guarantee future growing and enlargement of the company. Summarizing up one can state that AGRANA grew by geting a batch around the universe and by diversifying their concern. Danisco grew by internationalising their gross revenues. transforming their concern to the taking manufacturers of ingredients for nutrient and selling their old concerns in order to concentrate on the new 1s. The most of import difference between these two growing schemes is that AGRANA wanted to guarantee future growing by diversifying into other merchandises with their bing cognition. Danisco wanted to vouch future growing by transforming themselves into a leader in a niche market.

To reply the last inquiry we want to specify “Sustainability in the long run” . Sustainability or sustainable scheme at its most basic degree “suggests that a company will better its opportunities of endurance in the hereafter by guaranting that resources used by the concern are responsibly managed and maintained. ” Furthermore. “in concern. it is the ability of a company to develop and implement winning schemes that lead to long-run success” and the ability to make up one’s mind “when to remain on class with the proved schemes or when it is clip for alteration. ”

We expect the AGRANA’s scheme to be more sustainable in the long tally thanks to their diversified beginnings of income such as their three chief pillars: amylum. sugar and fruit. AGRANA has more sectors to play on so AGRANA is non as dependant of a specific merchandise sector like Danisco if concern does non travel as planned. The chances of growing are besides bigger. because AGRANA has more capital and AGRANA has more companies to sell their AGRANA merchandises to in the hereafter because AGRANA is present worldwide and particularly in emerging markets. In add-on. AGRANA is portion of a safe market. AGRANA?s three pillars are ever in demand besides due to the fact that the Earth population will turn. Furthermore. AGRANA could enlarge their merchandise line by diversifying to another sector with their bing cognition every bit good as the fruit sector. All in all. AGRANA has a really good sustainable concern scheme and we think that AGRANA will go on to be really successful in the hereafter.

Resources:

hypertext transfer protocol: //www. danisco. com/about-dupont/duponttm-daniscor/history/ hypertext transfer protocol: //www. agrana. com/en/agrana-group/about-agrana/history-of-agrana/ hypertext transfer protocol: //www. us-pacific-rim. net/the-five-biggest-challenges-for-businesses-in-china. html hypertext transfer protocol: //www. mapconsulting. com/articles1-177/BusinessSustainabilityTheStrategiestoAchievetheLeadershiptha- tMakesItHappen

hypertext transfer protocol: //www. wisegeek. com/what-is-long-term-sustainability. htm hypertext transfer protocol: //www. rhodia. com/en/about_us/worldwide_presence/index. tcm hypertext transfer protocol: //en. wikipedia. org/wiki/Agrana # History

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