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1
Almarai is the largest incorporated dairy foods company in the world and is the largest
diary company in Saudi Arabia. The company had offer a wide range of products such as
yoghurt, cheese, natural juices, baby milk, cakes, and breads. For a large company such as
Almarai to go global is not complex as when small or medium companies go global. Almarai
have already developed strategy and business plan to expand over the Middle East. For the
company, it is very important to revise its business model and structure to help decide how they
will expand globally.
There are few challenges that will face Almarai expansion. Hiring employees is one of
the biggest challenge. Almarai must build large work force to keep up with the rate of expansion.
The diary company required specialized staff that might be limited to have (Kim & Wright,
2013). Another challenge is growing revenue and financial risk. For large company like Almarai,
growing revenue will always be a challenge. This challenge focused more on expanding the
consumer base and marketing (Crane & Matten, 2016). Diary business as a result of expansion
might face increase in wealth and increase financial risk at the sometime. Price of milk and
seasonal weather conditions will increase the financial risk of the company. Almarai must
consider the economic and financial impacts of going globally before committing to such a
move.
Developing a well plan to face the challenge of expansion is very important for business
to success globally. Hiring specialized employees and growing revenue is very necessary to keep
the business strong. Increase in wealth might have increase financial risk as well. Almarai is
capable to expand globally as the company has already successes in expanding over the Middle
East.
References
Kim, B. S., & Wright, J. (2013). Staying local or going global: challenges for expansion into
emerging markets. Logistics management (Highlands Ranch, Colo.: 2002), 52(7).
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
2
There are five major types in the manufacturing process, and each one of them has its
needs, rules, advantages and disadvantages. These process types contain of job shop, batch,
repetitive, continuous and project. In fact, once a business owner decides to apply a particular
approach of the mentioned process, it is very hard to change it later on due to the high cost, and
time consuming (Stevenson,2018). Hence, understanding the environment, the natural of
business, and the target customers is very beneficial (Paul, Kennedy, Burgess, & Godfrey, 2012).
Likewise, Almarai is considered as the largest dairy company in the Middle East area, it provides
numbers of high quality beverages and nutritious food, and this company aims to improve people
lives and health at the same time(Almarai,2017). If the company plans to open a new location
locally or internationally, it will most likely to use the repetitive process in this location for
major reasons.
Since Almarai provides dairy food and drinks to its customers like milk, juice and
yoghurt, and these items follow the same pattern in production from time to time. This means
that the company makes identical food and drinks in a repetitive way. Therefore, applying the
repetitive process is recommended because the company has a stable demand, and it rarely
changes (WiseGreek,2017). Plus, efficacy, efficiency and effectiveness are associated with the
repetitive approach in manufacturing (Paul, et al., 2012) that help to cover the customers’ needs
quickly. Taken into account that even though the company has a constant demand among the
year, it can speed up its process to match the customers desires and needs in no time because
there is low unit cost along with the high quality of the production (Stevenson,2018).
Additionally, Almarai has a mass production in its assembly line when its employees have a
minimum level of skills (WiseGreek,2017). This makes the repetitive process a target for the
company because the employees don’t have to get an advanced training programs or technology
skills as they perform the same task again and again all the time. So, Almarai will not waste
time, money and effort in bringing training professionals or highly educated trainers. It is clear
and obvious that Almarai food and drinks prices are affordable for people from various age
groups, and economic levels. Hence, the repetitive approach grantee that the final product is
cheap, and customers are satisfied with it (Goldense,2011).
References
Almarai. (2017). About Almarai Company. Almarai. Retrieved from
https://www.almarai.com/en/about
Almarai. (2017). Almarai Products. Almarai. Retrieved from
https://www.almarai.com/en/brands/almarai
Aswann, N. (2011). Methods of Production. GCSE Business Studies. Retrieved
from https://www.rewardinglearning.org.uk/common/includes/microsite_doc_link.aspx?
docid=9709-1
Goldense, B. (2015). The 5 Types of Manufacturing Processes. Machine Design. Retrieved from
http://www.machinedesign.com/contributing-technical-experts/metrics-iot-productdevelopment-process
Paul, M. G., Kennedy, C., Burgess, S., & Godfrey, P. (2012). The development of a value
improvement model for repetitive processes (VIM). International Journal of Lean Six
Sigma, 3(4), 315-338.
Stevenson, W. (2018). Operations management (13th ed.). New York, NY: McGraw-Hill Irwin.
WiseGreek. (2017). What is repetitive manufacturing? WiseGreek. Retrieved from
http://www.wisegeek.org/what-is-repetitive-manufacturing.htm
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