Dairy Farm Group
Synopsis:
Dairy Farm Group is the 126 years old company which was started at 1886 by a Scottish surgeon, Sir Patrick Manson together with five other businessmen. Initially they had business objective was to supply uncontaminated Milk to local Population with lower price which was achieved by importing cattle. Later on Group gradually extended their business objective was to supply Food products to local country as well as their neighbouring countries.
Dairy Farm International Holdings Limited was the leading food and drugstore retailer in APAC region. DFG is Hong Kong based company operated in a number of supermarkets, Drugstores and convenience stores in neighbouring countries such as Singapore, China, Australia, India, Indonesia, Malaysia and New Zealand. Also this group had interest in Caterings service and Hypermarkets in Hong Kong and Taiwan.
Although DFG increased its size across APAC , still its sales was down key reason for the down slide in sales was Asian Financial Crisis was partly blame and growing competition from Europe and US Retail Chain hope establish their Business in APAC Region.
Even though DFG was a leading group in APAC region, there was a huge pressure to Change its Business strategy to revamp its market lead position. Thus DFG recruited high quality senior management employs, hence its over head cost got increased but they believed it will be regained in future.
DFG Strategic Vision:
“Our vision is to be the leading food and drugstore retailer in Asia Pacific region in terms of Sales and long term shareholder value creation”
To reach that vision they adopted a three pronged business strategy. First it wanted to defend its Current markets, second it wanted to respond to competitive pressure by restructuring its organization and reengineering its business processes and third it wanted to exploit new opportunities.