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Mengnu Dairy Group Sustatinable Corporate Strategy Report

Term Paper Number
898599781
Term Paper Description
Mengnu Dairy Group Sustatinable Corporate Strategy Report
Publish Year
2009
Academy
UniSA
Course
Sustainable Corporate Strategy
Number Of Pages
8
Number Of Words
2336
Number Of Sources
18
Price
59 $ (USD)
Keywords
Executive Summary, introduction, sustainable issues, Adopted strategy, viewpoints of various stakeholder, CSR issues, action & follow up, conclusion
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Paper Abstract

Executive Summary

Mengiu Diary Group, one of the top dairy manufacturer and distributor in China, was ranked as the largest dairy group in China by the market share of 22% in 2004. The company has successfully built its brand equity in the country by various high profile advertising campaigns which has led to over USD 3 billion in annual revenue and has become a symbol of the entrepreneurship in China. However, the tainted milk scandal in 2008 that has claimed thousands of sickness and lives of children impacted the organization in both economical and social values as its brand equity and revenue has dropped significantly. Since the scandal has drawn numerous media reports around the globe, Mengniu was not only suffering from profit loss but a severe impact on its corporate and social values and has paved a long way for the company to face the future challenges in recapturing consumers’ trust and brand recognition in the midst of the crisis. The report has identified the CSR and sustainable issues in this case and has also illustrated the different sustainable forces and stakeholders’ viewpoints. Finally, the actions of the various stakeholders are also considered and evaluated with some recommended actions to conclude the report.   A sustainable enterprise is one that contributes to sustainable development by delivering simultaneously economic, social, and environmental benefits—the so-called triple bottom line. (Hart L, 2003). Mengniu management needs to consider those forces and incorporate them in the corporate level strategy to sustain the business.

Apparently the melamine scandal has seriously impacted Mengniu’s values in economical, ethical and social perspectives as such scandal has caused thousands of human illness and death which has affected the company’s reputation and profitability. Mengniu has to face the recovery path to survive the scandal and ultimately to recapture consumers’ trust by providing high standard of quality products and re-building its brand recognition. Moreover, they are required to perform a positive accountability and corporate social responsibility to the public to deliver a promising and a long lasting relationship with the customers.



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