Milk Operations

Organization Ltd. : Case

Study

Submitted By:
Group 8 -
Aakash Verma
Akanksha Gupta
Sanjay Ingawale
Sarvangini Singh
Vijay Tripathi
 Contents

Introduction
History
Problem Statement
Past data
Structured Approach
Sample Questions
SWOT Analysis
Hypothesis
Solution approach
 Introduction

This Case Study focuses on Milk

Operations Organization Ltd. based in
Europe. The Products manufactured by the
firm are: Bottled milk, flavored milk, tetra-
pack milk, milk powder, butter, lite butter
spreads, cheese and cheese spreads.
Bottled milk is supplied to residences as
well as businesses, hence the industrial
sub-division.
 History

Being a very old dairy company, the Milk

Operations Organization Ltd. was one of the
few remaining firms that still supplied milk
to doorsteps in a country in Europe.
But currently Extremely short on cash flow,
falling milk subscriptions, product
inventory and perishability had all been
plaguing this firm.
Problem Statement
1. What are the core issues afflicting Milk
Operations Organization Ltd.?
2. Is it possible to address those issues? Can
Milk Operations Organization Ltd. remain
relevant in today’s consumer scenario?
3. What are your initial ideas to turn around
Milk Operations Organization Ltd. given
the above information?
Past Data
Milk Operations Organization Ltd. is divided as follows:
1. Milk Division
a. Consumer Division
b. Industrial Division
2. Dairy Products Division
a. Spreads Division (Butter and Other Spreads)
b. Cheese Division
The profitability and revenue percentage share of
these divisions is as follows:
Structured Approach -Discuss
• What has been done to solve the problems so far?
• Why did those efforts fail? While door delivery milk sales
are falling, what is happening to firm sales?
• Is the reduced sale important to the firm? What is the
brand impact? What does history show?
• Have other milk delivery firms in the west faced this
issue?
• Do you have any competitors doing the delivery at
cheaper price than your product?
• Do you have tie up with super stores / local by shops for
home delivery ?
• can be reduce the operation cost ?
Structured Approach –
Understanding / list symptoms
• .Bottled milk causes perishability loss, Powder milk
is very low in margin.
• Forecasting of milk bottles should be done inline
with demand.
• Right tools are not in placed to do the accurate
forecasting of demand.
• Proper media, discounts, retailer push and other
techniques to manage some of the problem.
• Delivery costs
• Rising prices.
Competitors - Swot Analysis
Strength Weakness Opportuniti Threats
es
Store milk • Brand • At store and Tie up with pure • Many
• Easier to not at home online players competit
forecast • Less fresh such as ors with
• Price than door amazon long life
advantage delivery milk

Door milk • . At home • . Need milk • Increase • . Buying

• Tradition runs varieties behavior
• Cost to • offered, for – stores
serve more or
orders • online
for most
purchas
es
 Hypothesis
Hypothesis 1
Data Needed for H1
Competitors play significant role influencing Demography of competitors café data
coffee sales

Hypothesis 2
• Menu plays significant role Data Needed for H2
Data required about menu at coffee
affecting coffee sales
house

Hypothesis 3 Data Needed for H3

• Vegan trend significantly affect Data required about vegan preference
coffee sales at coffee house