Gujarat Cooperative Milk Marketing Federation Limited (GCMMF)
Objectives of the case study:
• What are the salient changes in the external environment of GCMMF? Are they posing constraints to GCMMF? What are they?
• Evaluate GCMMF.s response to these changes in terms of (i) the resource requirements of the proposed food products business and (ii) resources and capabilities available at GCMMF.
• Is GCMMF taking what it may think is the easy way out? Can it stay in its core business and make a difference to the milk sector in India (and yet be successful commercially)?
Introduction:
GCMMF was established in the year 1973 with a view to streamline the milk production and supply process in Gujrat. Its main aim was not to…show more content… • Since fruits are grown in different parts of the country, an effective logistics system to gather the produce at appropriate locations needs to be created.
• Install technologically competent machinery and processors.
• Since fruits are long term produce when compared to milk which is a daily produce, GCMMF should find an optimal method of compensating the farmers.
• Reduce/eliminate middlemen so as to give maximum benefit to the grower.
• Position its processed foods well in comparison to the competitor’s products.
Resources and capabilities available at GCMMF.
• Incentives to fruit growers in order to increase their yield, training in different kinds of growing methods and a probable cyclical incentive plan. They may also want to apply the oil business strategies in the processed foods sector.
• Setting up factories close to the location of the produce, in order to save on logistics cost, wastage in the process of transportation and faster supply.
• It needs to position its processed foods just as well as it has positioned its edible oil and milk products. With the fruit consumption set to increase many-fold in the coming years, GCMMF can explore the area of canned fruits and vegetables instead of only concentrating on the processed foods section.
• Although it was a farmer focused organization, the growing competition forced it to focus on consumers. To provide
