Glanbia's Internationalisation Strategy

International Management

Date of Submission:

8th December 2006

A Report to the Managing Director of Glanbia, outlining the issues for consideration in order to expand into International Operations

Contents Page Page

1.0: ACKNOWLEDGEMENTS

2.0: DESTINATION OF REPORT

3.0: AIMS AND OBJECTIVES

4.0: EXECUATIVE SUMMARY

5.0: METHODOLOGY

6.0: INTRODUCTION/ BACKGROUND

7.0: RATIONAL FOR INTERNATIONALISATION

8.0: MANAGERIAL CONSIDERATIONS

Managing Culture

Planning

Problem Solving and Decision Making

Change Management

Management Styles

Branding of Product

CONSIDERATIONS

9.0: Operations

10.0: Market

11.0: Financial

12.0: Environmental

14.0: SUMMARY

14.0: CONCLUSION

14.0: RECOMMENDATIONS

1.0 Acknowledgements

Acknowledgement goes to Paul Rowlandson and Rory Mc Laughlin for providing background material in support of this report.

Thanks also go to the library staff and everyone who contributed to the report.

2.0 Destination of Report

The aim of this report is to brief the managing director John Maloney of Glanbia with the key considerations and issues that Glanbia need to address for successful international growth and development. The report will cover all management, market, financial, and environmental considerations. By the end of the report the managing director will have clear recommendations to guide Glanbia through an effective internationalisation growth strategy.

3.0 Objectives

* To present a general background and introduction to Glanbia PLC

* To discuss the situation and factors surrounding the group's reasons for embarking on international growth

* To investigate and discuss any managerial issues which Glanbia's management need to take into account in order to secure international success

* To analyse and discuss market, financial, operational, environmental and any other considerations which will influence and effect the growth and performance of Glanbia's international growth strategy

* To present all findings in a report to John Maloney, managing director of Glanbia PLC

* After careful analysis of all findings, design recommendations, which Glanbia can use as a source of reference for future business developments.

4.0 Executive Summary

Glanbia are an Irish Dairy Ingredients firm with operations in Ireland, UK, USA and Nigeria. They also recently opened offices in China. Although they are the number one supplier of branded food and beverages in Ireland future growth depends upon international growth. Their strategic vision for the future is to 'build international relevance in cheese, nutritional ingredients and selected consumer foods'. To do this they must expand their international operations. In order to do this they must consider managerial aspects, i.e. Planning, Problem solving and Decision Making, Managing Culture, Branding, Managing Change and Management Styles.

Market, operations, financial and environmental considerations are also key to successful international expansion. Careful analysis has shown Glanbia must address various key issues before it can maximise success in international growth. These include operational issues. Glanbia must remain innovative in all operational divisions, especially the consumer foods division. There is concern for the agribusiness sector as it is in decline. Glanbia should investigate alternative options to rationalise activities in this division. They must also address cultural and environmental differences which exist in markets which they are wishing to expand their food ingredient and nutritional division of the organisation. It was discovered that Glanbia are experiencing financial problems, and if they wish to succeed on an international level they need to address domestic issues. They need to consider if it is feasible to continue to serve the European and Irish market. It