Azz FoodsDate: 3rd December, 15Management AccountingGroup 4BChirag Aggarwal (CEO)Glefanny PispisVaibhav NeemaPadmapani ShivsharanIshita TyagiAZZ FoodsThe company is in the processed food business. They produce pre-packed Asian meals ready for consumption.The company provides a range of innovative food preparations which are a real alternative to authentic Asian cuisine.The company has been doing very well in the domestic market. This can be evidenced through the high adoption rates of their products as well as modest development costs. However, they may need some guidance with respect to the international market.Keeping in mind the different markets, AZZ foods should come up with different product combinations along with Malay and Indian food, in order to expand their product base, and in turn, their consumer base.The most risky assumption made about the future is the forecast sales. Based on these forecasts, the budget is drafted and hence relying completely on this is perilous. The company should have expanded into Singapore, Hong Kong and other Asian countries. They should also have tapped the European market. It is necessary for the company to expand and export its products as the Malaysian market would mature in the near future which would stagnate the volume of sales. UK and Europe have high populations of Indians as well as Asians. However, the acceptance rate here would depend on the competition in these new markets and the availability of other processed food brands. Singapore would probably be quick in accepting these products, given the large population of Indians and Malay. Venturing into new markets can be risky for any organization. AZZ is taking the risk of compliance to foreign regulations, increased competition, possible price change strategies as well as an entire strategic management change.AZZ will need an effective and efficient sales team as well as distribution strategy. Since a lot of exporting is involved, a cost effective transportation system is a must. They would also need a foreign policy compliance system.To check the company’s progress, AZZ would need to conduct market research as well as compare its actual figures to the forecasted ones. They would need to keep a constant check on competitors strategies and performance levels.
Essay About Azz Foods And Domestic Market
Essay, Pages 1 (373 words)
Latest Update: August 1, 2021
Views: 122