Gcmmf Case Study Solution

Assignment 1: Case of “Gujarat Co-Operative Milk Marketing Federation Ltd.” (GCMMF) (Case Reference from the Text Book: Strategic Management by Hitt, Ireland, Hoskisson and Manikutty) Answer all the following Questions: 1. What are the salient changes in the external environment of GCMMF? What constraints are they posing to GCMMF Answer : a) Competition: GCMMF diversified since its inception to a great extent and has top market share in most of its products. They are forced to compete with FMCG giants and small players at the same time for different products. In the Liquid milk market, lot of emerging private diaries and contractors are bringing in competition especially with the festival season sales to the sweets makers who are not brand concerned. Britannia entered in the butter, cheese market with extensive advertising campaign. Local players and FMCG giants such as HLL and Nestle are sharing sweets and near ready sweets market to a great extent. Kwality and Walls brand of HLL and strong local players such as Vadilal ice creams are strong competitors in the ice-cream market. In the branded edible oil market, ITC holds the major share. Almost 70% of the sales are happening in the unbranded sector. b) Large portion of the population does not care about quality issues in milk. People still prefer unpackaged milk for their taste and price. Because of high price sensitivity for dairy products, people are not willing to pay for quality c) Increased price of the maize which is causing the increase in the feed prices d) Large informal markets that extend credit are constraining farmers e)


Case Details:

Price:

Case Code:OPER057For delivery in electronic format: Rs. 300;
For delivery through courier (within India): Rs. 300 + Rs. 25 for Shipping & Handling Charges

Themes

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Case Length:14 Pages
Period:1991 - 2006
Organization:GCMMF, AMUL
Pub Date:2006
Teaching Note:Not Available
Countries :India
Industry:Dairy Products

Abstract:

The case discusses the supply chain practices of Gujarat Co-operative Milk Marketing Federation (GCMMF). GCMMF was owned by a chain of farmers who had formed a network of cooperative societies. Milk was collected from more than 2.4 million farmers in 11,615 villages twice a day, and tested, graded, and transported to the processing centers. GCMMF's products were marketed through 50 sales offices located across India to 4,000 stockists. These stockists supplied the products to more than 500,000 retail outlets. The case examines in length the milk procurement, processing and distribution activities of GCMMF's supply chain.


Issues:

» Study the unique aspects of GCMMF's supply chain management practices

» Understand the procurement, processing and distribution activities of GCMMF's supply chain

Contents:

Keywords:

GCMMF, AMUL, Anand Pattern, Village Cooperative Society, District Dairy Union, State Federation, Cooperative Movement in India, Procurement, Processing, Distribution, Automatic Milk Collection Units, Enterprise-wide Integrated Application System, Cold Chain

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