Arla Foods - Matching Structure With Strategy
(9 pages of text)
In early 2013, the head of business development and commercial operations of Arla Foods, a dairy enterprise focused on Northern European markets, is examining, in the light of a new five-year strategy, alternatives to the existing organization structure. His dilemma is to determine the best structure that can deliver the strategy, which is focused on renewed international expansion. The new structure must support the company's strategy in relation to both the existing core markets in Northern Europe and also the growth markets of the future in countries of Asia and Africa. It must ensure that Arla Foods has the right competitive stance in individual markets, which vary widely in terms of customer buying habits and retail formats. It must also ensure regular innovation of dairy categories developed from local resources and marketable globally.
The case can be used in strategy, international business and organizational behaviour modules to achieve the following objectives:
- Analyze the organizational challenges created by the implementation of globalization strategies.
- Develop an understanding of how to approach the design and implementation of an organizational structure to match a global strategy.
- Explore the process of managing transformational change in a multinational company.
United States, Large, 2013
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