Seminar 2 Answers
1) Analyse and assess the external environment affecting Arla in the Middle East (e.g., PEST).
You may use “external” sources besides the case study document.
There wasn’t really enough information in the case study to use too many tools, beyond a SWOT or a
PEST analysis. If the latter option is selected and implemented, note that it is important too to say
something summarising the micro environment (e.g., competitors, customers) even if formal
frameworks (e.g., 5-forces) are not used.
Generally speaking a case study will usually have so much
detail so as to pose a luxury problem where it is difficult to know which frameworks to limit oneself
to in order to remain efficient! Going beyond the case and googling it would reveal, in particular, a
fuller political backstory to the issue.
For the PEST one could have:
Political: Political involvement in the Middle Eastern economy; local religious leadership’s political
role; Middle East country Ambassadors in Denmark; Danish Government (reaction); Islamic
autocracy / absolute monarchy; Danish bureaucracy; freedom of press in Denmark; low level of
consumer protection law in the Middle East
Economic: Growing GDP; growing economic links between Denmark and the Middle East; Middle
East is an affluent and growing marketplace for consumer products; low tax rates; WTO membership
and attractive to foreign investors; high percentage of migrant workers; monopolistic markets
Socio-cultural: Consumer religious sentiments; consumer boycotts and campaigners; strong social
traditions and customs; collectivistic society
Technological: Information and communication technologies (internet and mobile communications)
speeded up the boycott
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- Fall '16
- Sandra Bernie
