MS Seminar 2 - Arla Answers.doc - Seminar 2 Answers 1 Analyse and assess the external environment affecting Arla in the Middle East(e.g PEST You may use

MS Seminar 2 - Arla Answers.doc - Seminar 2 Answers 1...

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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; national unity of the press in the Middle East; 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 2) Should Arla have foreseen this issue through checking its periphery? The key to answering this question is whether or not there were ‘weak signals’ in the environment that Arla could have acted on. Peripheral vision is about interpreting and acting on these so as not to be blind-sided. On the one hand, Arla were caught up in a crisis that was not of their own making. In just a few days they lost most of their market share in the region. Forty years of building their brand came to a stop in days. The issue didn’t evolve—it exploded into life.
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