Entrepreneurial Health Assessment for [Amul India]

Assignment 3 IBU5COV Corporate Venturing

10/5/2021
La Trobe University
Author names

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 Executive Summary

As the part of 1st as well as 2nd assessment at effective level I have been functioning
on the effective food processing FMCG organization Amul India. I have completed research
in detail to present the report. At first an impressive introduction has been provided regarding
the organization considering external forces such as vision, mission, and purpose of Amul
India. A theoretical concept has been effectively written within the descriptive manner
through utilizing the academic level research that presents the different analysis levels. There
will be discussion about the conceptual difference between corporate entrepreneurship and
entrepreneurial intensity involve within the report. Corporate strategy in relation to Amul
India will be included to present the detail discussion as recommendation.

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TABLE OF CONTENTS

Executive summary…………………………………………………………………………2

1. INTRODUCTION AND COMPANY OVERVIEW.....................................................4

1.1 [Purpose of the report]....................................................................................................4

1.2 [Company overview].......................................................................................................4

2. THEORETICAL CONCEPTS........................................................................................4

3. SITUATION ANALYSIS.................................................................................................4

3.1 External Environment Analysis.....................................................................................4

3.2 Entrepreneurial Health Assessment..............................................................................4

4. CORPORATE STRATEGY............................................................................................5

5. CONCLUSION..................................................................................................................5

REFERENCES.........................................................................................................................5

APPENDICES..........................................................................................................................6

Appendix A: Risk and innovation .........................................................................................6

Appendix B: The Entrepreneurial Grid ...............................................................................6

TABLE OF FIGURES

Figure 1: Risk and Innovation (Source: Morris, Kuratko & Covin, 2011, p69)........................4

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 1. Introduction and Company Overview

1.1 [Purpose of the report]

This report will take place with purpose to explain the theoretical concepts, situation
analysis, and corporate strategy of Amul India. Overview about the key theoretical concepts
as well as definitions will take place within the report through explanation of degree of risk to
Amul India with adoption of different innovation. Situation analysis will be divided in two
parts. These are external environment analysis and entrepreneurial health assessment.
External environment analysis will be explained with overview about the important driving
forces within the external environment organization facing including important conclusion
about the key opportunities as well as threats. An explanation about the evaluation of
entrepreneurial health of Amul India will be presented within the report. Corporate
entrepreneurship strategy of Amul India will be explained on the basis of situation analysis
which is designed to expand the organizational capability to develop as well as sustain
competitive benefit in the future.

1.2 [Company overview]

Amul India is recognized as the Indian dairy cooperative society situated at Anand
within the Gujarat state of India (Linkedin, 2021). This was formed in year 1946 as the
important response to marginal milk producers’ exploitation through agents as well as traders
within the case of small cities. Purpose of Amul India refers to supply products and services
with the best quality and purity at reasonable rates. This supported to minimize malpractices
carried through traders of milk and merchants. Mission of Amul India is to manufacture
world class products with outstanding qualities, providing the associated resolutions and
services to client while using latest techniques, highest business standards, work ethics,
corporate governance so it can make every customer SMILE (Amulboards, 2021). Vision of
Amul India refers to provide the satisfaction to farmers, customers, distributors, and
employees.

2. Theoretical Concepts

There are many important reasons in relation to success of Amul India are adhering to
very strict hygiene as well as standards of quality, diversification into many dairy based
products and appropriate utilization of marketing (Reddy, 2021). This became very
successful that its model was applied whole over the India resulting within The White

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Revolution (Operation Flood). Products of Amul India are very affordable and remain the
best in class. Imitation innovation in relation to Amul India brings

Imitation innovation in relation to Amul India can refer to entice through many
elements, particularly statistics. For instance, Amul India remains profitable by imitate
methods of innovators, pioneering experience, and learning. Continuous innovation in
relation to Amul India refers to make the constant improvement regarding the products,
services, and techniques that they are liable for with medium level of risk. For instance, Amul
India ensures minute changes in drinks and re-launches it within the market. Dynamically
continuous in relation to Amul India refers to low level of risks in which new products
development are different from previous available products but that do not change patterns of
buying or usage strikingly. For instance, Amul India provides the many offers to replace
others products with new taste. Discontinuous innovation for Amul India refers that new
product is launched differently in compare to the previous one leading to the main change
within the habits of consumption (Youthkiawaaz, 2016). For instance, Amul India introduces
the many new products that have empowered individuals through changing the way
individuals eat.

High

RISK

Low

Imitation Continuous Dynamically continuous Discontinuous

(Source: Morris, Kuratko & Covin, 2011, p69)

Error: Reference source not found Degree of risk

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 3. Situation analysis

Performance of an organization in its particular industry as well as strategies utilized

within the external environments leads to determine the organizational success (Jang, et al.,
2015). Situational analysis of Amul India involves organizational history, statistics, and many
other factors which are significant to important suggestions. Situation analysis is important to
evaluate the internal forces and external forces within the organization. This supports to
utilize market research in relation to analyze the state of the organization. Situation analysis
in relation to Amul India will support to create the important basis of understanding about the
environment in which a plan is delivered.

3.1 External Environment Analysis

 Technological investment or changes in technology

Amul India has achieved exponential growth within the past few decades with force
of technological investment. This is the important strength of Amul India. It is investing at
regular level within the adaptive techniques and revolutionary techniques in dairy industry.
This has supported to target the turnover of more than 50000 crore rupees within the fiscal
year 2020. Amul India as an effective brand understands the requirement to ensure
investment within the different techniques and updating the present techniques in relation to
retain the present customers and attract possible future customers. It has invested amount of
600 crore to 800 crore within the present fiscal year for developing new plants of milk
processing. This has invested in relation to expand capability of existing units
(Economictimes, 2020). In general whole industry is adapting many latest techniques which
support in supervising productivity level of milking animals as well as dairy farmers.
Objective of Amul India refers to identify faulty works and ensure corrective steps in relation
to meet the demand of market. Application of latest techniques in Amul India is equipped
with unique identities smart chips which are tagged that support such organizations in
registering the health records and productivity records of individual animals.

 Customer needs

One of the important reasons for Amul India being the trusted brands within the
nation like India and having the strong as well as loyal base of customer is its customer

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needs. The company has not faced any challenges in ensuring qualitative level in market of
India. Customer needs have enabled the company to maintain transparency concerning
control practices of quality. Organization is maintaining quality which supports to ensure and
meet the customer needs. The company maintains good relations with department of health
and agencies of government. Regular validation from these kinds of authorities leads to
develop trust in customers mind regarding the quality level of Amul products. Amul India is
recognized as one of the most valuable brand in nation like India. Customer needs is main
force behind the organizational success (Businessworld, 2017). This has come very close to
image in front of public or value of brand that it enjoys within the market of India.

 Political environment

Because of the favourable political elements organization like Amul India

accomplished the growth of almost 11.35% across the operational units within Kolkata, Pune,
as well as Mumbai. Organization focuses on developing the long lasting relations with the
producers of milk through ensuring that they easily pay them high prices. The organization
has set the milk procurement function in West Bengal underneath “Amul Pattern”. It has
resulted in improvement progress to social economic situations of associates of producer’s
community. Organization in state such as Maharashtra, Punjab, as well as Gujarat has
developed and continued new milk societies. Basically, union has developed milk societies
outside state like Gujarat underneath “Anand Pattern”. It provides the high qualitative feed as
well as services of veterinary to cattle owned through the milk producers of particular
societies. Last year has been very difficult because of the import as well as export hurdle.
Lower demand of daily products and services has proved as the main barrier within the
organizational growth (Rajshekhar, 2017). This is the weakness for the organization like
Amul India. If Amul India gains appropriate level of support from state level and union level
through adopting the latest technique they would be capable to accomplish the highest
procurement rate and progress organizational name to the successful level.

Nation like India is recognized as the high milk consuming country with milk
products as well as dairy products being the important component of an Indian diet. As per
the research people of Indian are consuming about 100 liters of milk at annual level. This
nation has the billion plus population that is regularly improving. Overall growth within the
population as well as high consumption of milk opens many opportunities for Amul India in
relation to expands capabilities of product and attracts new possible customers. Amul India

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can invest within the research as well as development or adopt the mergers as well as
acquisition approach in relation to expand line of product. The company has the extensive
network of distribution that can be utilized in relation to sell new services and products
within the market and considerable brand value as well as trust of every customer will ensure
easier acceptance level from huge number of customers (Amul, 2021). Amul India can work
to serve international markets. It can expand into many overseas markets. These can be
Middle-East markets and Asian markets through targeting hostilely Indian expats living
within all these nations. Amul India can broaden originally global presence and consumer
base.

Amul India is facing the improving level of competition within the milk products and
dairy products industry from brands like Mother Dairy, Kwality Ltd, Aavin, Nadini Dairy,
HUL, and many other local players (Businessmavericks, 2021). This is facing improving
competition in ice cream industry from Kwality walls, Baskin Robins, Havmor, London
Dairy, and many other domestic brands. There is growing trend of product like Veganism
within the nation like India. Many individuals in India at regular level are turning to
veganism that implies that all these kinds of individuals do not consume products of dairy or
dairy. It can lead to influence the level of demand regarding Amul’s milk as well as products
of dairy if veganism popularity improves and spreads across many different portions of the
nation.

3.2 Entrepreneurial Health Assessment

An entrepreneurial affair is recognized as the act which leads to validate amount of

risk taking, innovativeness and proactiveness. Overall amount as well as scale of particular
acts recommends the entrepreneurship intensity and degree within the organization. Amul
India has been recognized to be one of the inventive and proactive organizations within the
food processing FMCG industry it has earned the title through challenging and creating the
qualitative products with affordable price. Procedure of product development in Amul India
is customer driven which creates the products through keeping in mind the quality level
requirements of customers. The company monitors the ideas for new development with the
objective of using all resources and techniques through deliberating which resource would
remain important process so that final price can remain less. Overall, dedication to innovation
within the each portion of product development has got Amul India a very big base of
customers (Amuldairy, 2021).

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 Amul India works with the open interface regarding communication in and outside the
organization that enable it to have the right level of feedback from all customers and form
within the company. Amul India as an attractive organization focuses on practising CSR
practices through setting important objectives of zero carbon footprints as well as creating all
practices qualitative and innovative. A grid will present the entrepreneurial intensity
comparison level between Amul India and its competitor Mother Dairy (Times of India,
2021).

Amul India focuses on organizational climate as tries to remain inventive as much as

possible through regularly updating as well as reshaping structure when an opportunity is
provided (The hindu business line, 2021). Amul India is working as the firm believer of work
discretion through providing every employee right level of equality, cooperation, flexibility,
and motivation. This has supported at constant level to ensure empowerment of women and
performed appropriate.

4. Corporate Strategy

Cost leadership is recognized as the important approach in which a company

emphasizes on the product or service price it provides to the market as the main feature
creating it distinctive from all the competitors (He, & Balmer, 2013). In relation to succeed,
Amul India should lower other costs to lower cost of service. Cost leadership strategy at
effective level can be adapted by management of Amul India through good years of
experience as well as investments in right practices. Overall investments need to be ensured
within the facilities of production, procedure, and employees. Overall cost leadership
organization like Amul India needs to ensure and perform the cost control technologies
within the procedure such as chain of supply production, and transportation. It should refrain
from spending high amount on invention, advertising, and marketing.

Amul India has the big plan of growth and it is anticipated to improve the total
amount of revenue. Minimization in amount of cost and expansion will remain important
driving factors for growth of Amul India. Amul India inline other competitors does not
terminate its employees regarding minimization in amount of cost. This regularly upgrades its
procedures and machines which ensure produces more yield. It reviews all products and
services to in relation to minimize the size of packaging. This is the king of packaging and
self-assembly as well as find important ways in relation to improve the level of quality so that
it can easily fit more products while distribution thereby saving costs of distribution.

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 Usually customers are relying on dairy product dealers regarding the transportation of
product but it is not a case in relation to Amul India. Customers of Amul India is happy to
pick its products and use them with very easy to follow instructions. Every product is packed
effectively with the capability that is important for organization and all customers as well.
Amul India serves the products with low amount of costs still meeting the all strict needs of
functionality, quality, distribution, and sustainability. Amul India has strong level of links and
conversations with everyone that is because Amul India is high volume organization. It
enables it to please Amul India and ensure to provide the best deals.

Amul India is regularly growing as well as expanding the all operations it is within
the regular requirement of capital and going public will be important strategic decision. With
initial public offerings Amul India can raise its capital speedily. The company can use the
capital within the research, expansion, good infrastructure, and many actions. When going
public then nation of origin and place of listing is significant as well. The company has quite
an important option into particular market it prefers to get listed. . There are many benefits of
effectively going public. This will lead to create the publicity which support in penetrating
market very deeper.

With improvement in net value ratio of debt-to-equity will lead to improve as well as
with less level of debt-to-equity level ratio it has improved capability to borrow money.
Through going public Amul India has higher level of prestige and that in turn supports to
attract huge number of suppliers as well as prospective investors within the foreign
marketplace. Going public will lead to ensure interest of new talents which support Amul
India prosper new perspective and fresh perspective of talent. There is the pressure of
performing effectively as it is answerable to all stockholders as well as investors. Information
it should publish and ensure availability to all stockholders who care it more vulnerable as all
data is available publicly to rivals to exploit (DiSegni, et al., 2015). There will be shift of
control from hand of owners to hand of public that can be a challenge.

Benchmarking is recognized as the important approach which compares the all

products as well as services of the all best performing companies in an industry. Every
competitor is main threat of the organization within the any industry. Amul India is operating
under high competitive environments then benchmarking strategy is important.
Benchmarking is an important approach utilized through the organizations which are
underperforming and through top organizations. The top organizations utilize benchmarking

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in relation to anticipate how successful it is within the market and evaluate what can be done
effectively, for example, Amul India compares strategy of product pricing with that of
Mother Dairy. Management and senior employees of Amul India in relation should utilize
benchmarking strategy in relation to identify the right approaches to compete as well as
succeed in food processing FMCG industry. It should compare strategic objectives in relation
to make the right vision for organization. This will enable to compete more effectively.
Performance benchmarking will allow Amul India to focus more on products and service. It
should consider parameters such as quality, price, design, reliability, and speed. The
organization can compare the techniques with others and consider upgradation of production
machines in relation to ensure right level of efficiency.

5. Conclusion

To remain efficient within the modern organizational practices there is requirement of

innovation as well as entrepreneurship, and change within the system. Amul India since very
start has been unremitting as well as dynamic advances within the work field. This is one of
the rarest things within the industry of food processing FMCG and not many rivals hold that.
In today’s time Amul India needs to remain entrepreneurial and Amul India is the first
believer of that however there can be important changes which can be involved within the
present system which can support Amul India to flourish. With pretty discussion there were
important strategies which discussed within the report. Every element of the industry like
demand, trends, conditions of marketing, and many more were identified and considered
before choosing all the strategies. These all leads to influence the impact of application in
relation to keep strategies within the mind before any suggestion were made. Overall Amul
India is performing at the appropriate position and more effectively than ever as Amul India
has been preserved on inventing and trying either it may be strategies or products and
services to penetrate market. One of the important approaches out the all strategies in relation
to Amul India is cost-leadership approach in which it can remain more cost driven that
anything else within the mind. Strategy will support to attract the huge number of customer.
It will in return have high level of profits. Moreover in addition to approach of cost
leadership will allow it to gain the overhand within the market that is mainly consumer
driven, this approach will support correspondingly Amul India within the benchmarking
approach as well.

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 References

Amul. (2021, 10 05). Amul. Retrieved 10 05, 2021, from https://www.amul.com/m/about-us:

https://www.amul.com/m/about-us

Amulboards. (2021, 10 05). Vision & Mission. Retrieved 10 05, 2021, from Amulboards:
http://www.amulboards.com/vision.html

Amuldairy. (2021, 10 05). Quality managemnet & initiatives. Retrieved 10 05, 2021, from
Amuldairy: http://www.amuldairy.com/index.php/cd-programmes/quality-movement

Businessmavericks. (2021, 07 09). Who Are The Competitors Of Amul. Retrieved 05 10,
2021, from Businessmavericks: https://businessmavericks.org/competitors-of-amul/

Businessworld. (2017, 12 03). Amul Plans Innovative Programmes To Make Dairy Industry
'Contemporarily Cool' For Youth: Sodhi. Retrieved 10 05, 2021, from BW
Businessworld: http://www.businessworld.in/article/Amul-plans-innovative-
programmes-to-make-dairy-industry-contemporarily-cool-for-youth-Sodhi/03-12-
2017-133529/

DiSegni, D. M., Huly, M., & Akron, S. (2015). Corporate social responsibility,
environmental leadership and financial performance. Social Responsibility Journal.

Economictimes. (2020, 12 08). How Technology helped Amul create supply chain resilience
during COVID-19. Retrieved 10 05, 2021, from The Economics Times:
https://economictimes.indiatimes.com/partnerships/how-technology-helped-amul-
create-supply-chain-resilience-during-covid-19/articleshow/79492213.cms?from=mdr

He, H. W., & Balmer, J. M. (2013). A grounded theory of the corporate identity and
corporate strategy dynamic: A corporate marketing perspective. European Journal of
Marketing.

Jang, H. A., Kwon, H. M., Hong, S., & Lee, M. K. (2015). A study on situation analysis for
asil determination. Journal of Industrial and Intelligent Information, 3(2).

Linkedin. (2021, 10 05). About. Retrieved 10 05, 2021, from Linkedin:

https://www.linkedin.com/in/pavan-singh-5b323613/?originalSubdomain=in

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Morris MH, Kurakto DF & Covin, JG (2011), Corporate Entrepreneurship and Innovation,
3rd Edition, Mason OH: Cengage Learning.

Rajshekhar, M. (2017, 11 30). The Amul story: How politics is hurting the economics of
Gujarat’s milk cooperatives. Retrieved 10 05, 2021, from Scroll:
https://scroll.in/article/858576/the-amul-story-how-politics-is-hurting-the-economics-
of-gujarats-milk-cooperatives

Reddy, N. (2021, 03 19). Inspiring Success Story of Amul. Retrieved 10 04, 2021, from Youth
Motivator: https://youthmotivator4life.com/amul-success-story/

The hindu business line. (2021, 07 20). Amul turnover grows 2% amidst Covid-19
challenges. Retrieved 10 05, 2021, from Thehindubusinessline:
https://www.thehindubusinessline.com/companies/amul-turnover-grows-2-amidst-
covid-19-challenges/article35423185.ece

Times of India. (2021, 07 04). The Times of India. Retrieved 10 05, 2021, from Amul
turnover rises: https://timesofindia.indiatimes.com/business/india-business/amul-
turnover-rises-2-to-rs-39200-crore-in-fy21-despite-covid-19-gcmmfs-md-sodhi/
articleshow/84112506.cms

Youthkiawaaz. (2016, 09 26). 5 Reasons Behind Amul’s Massive Success. Retrieved 05 10,
2021, from Youthkiawaaz: https://www.youthkiawaaz.com/2016/09/amul-india-
success-story/

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 Appendices

Appendix A: The entrepreneurial grid

High

Continuous incremental Revolutionary

Frequency of

Entrepreneurship Dynamic

Periodic incremental Periodic Discontinuation

Low

Low High

Degree of entrepreneurship

(Innovativeness, risk taking, and proactiveness)

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Appendix B: Benchmarking strategy

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