P1, P2 & P3
Introduction:
This report will be describing the two types of business organisations and
what makes them successful. The report will explore the features of a private
limited company as well as a cooperative company.
Aims:
The aim for this research is to explore:
-History
-Ownership
-Scope
-Size
-Business Structure
-Liability
-Purpose
-Aims and objectives of the business
And most importantly find out what the reasons for success of these
businesses are. To achieve this, this report will include:
• Reliable data
• Facts and figures
• Structures
Amul India
Amul is an Indian dairy cooperative
society, based at Anand in the Indian
state of Gujarat. This company was
formed in 1948 and it is managed by the
Gujarat Cooperative Milk Marketing
Federation LTD. Amul impelled Indias
white revolution, which made the
country the worlds largest producer of
milk and dairy products.
https://startuptalky.com/amul-case-study/
Ownership:
Amul is a cooperative company which means that it is owned, controlled and
operated by a group of 3.6 million farmers to meet the common needs of its
members, sharing ownership as well as making decisions democratically.
Cooperative businesses have its advantages and its disadvantages.
1
, P1, P2 & P3
Advantages:
• Workers get a voice- the member owners of a cooperative business work
together to make large and small decisions about the mechanics and
direction of running the company. This is an advantage because multiple
minds can bring in new ideas to help the company grow.
• Easier sources of financing- cooperative businesses can be financed in
party by their members, whose buy-in equity can go towards working
capital and expansion.
Disadvantages:
• Cooperatives struggle to establish unique branding. Cooperatives can
sometimes lose sight of their unique branding because their members are
part of each individual instead of standing separately as a unique brand.
• Cooperatives aren’t as profitable to the owners or founders. The earnings
and profits of a cooperative receive equal distribution Among every empty,
that means this business type is nowhere near as profitable to the initial
owners or founders of the company.
Liability:
Amul has limited liability which means that if the company fails the members
will not have to risk their personal assets. Having a limited liability is
extremely beneficial as members can buy and sell their ownership, change
management, or restructure and they have no need to report it to their state.
https://amul.com/m/disclaimer
History of Amul:
It was founded in 1946, before the pre-independance in India, when the dairy
sectors were ruled by Poison dairy and ruined the farmers journey. Farmers
were angered by the unfair trade practices and approached Sardar Vallabh
Bhai Patel. He suggested the idea of having a cooperative society of their
own, having its pasteurisation plant and advised farmers that they should
discontinue selling their dairy products to the middle men, in case their
demands were not fulfilled. The demand was later on fulfilled, despite being
turned down initially by the government. This marked the beginning of the
Kaira District Cooperative Milk Union Limited, Anand. Their main goal was to
provide value to consumers money. It started with few villages, and after 10
years Amul has become a big brand. Companies with good marketing
strategies ruled the world and Amul is one of them.
https://www.courseinbox.com/amul-case-study/
2
, P1, P2 & P3
Purpose
Amuls purpose is to market a wide scope of items such as: milk powders,
milk ghee, chocolate, shrikhand, gulabjabun, dessert, cream and others,
making it the biggest sustenance brand in India with a yearly turnover in
abundance of US $1 billion. Amuls main purpose is to innovate, Amul also
won the World Dairy Innovation Award in 2018.
https://amul.com/m/amul-wins-world-dairy-innovation-award-2018
Aims and Objectives:
• Amul has been trying to make the products available to its customers
easily.
• Amul has constantly been innovating and launching new products and the
aim is to continue to do so.
• Amuls objective is to supply goods with best of quality and purity at very
reasonable rates.
• Increase Indias milk production
• To increase the foreign exchange of the country by exporting the milk
products
• To produce products according to national priorities
• “Amuls common business objective is to have self sufficiency in milk
production” (quoted by Prashant Upadhye- senior marketing manager of
Amul.)
• “Farmers can earn their own benefits out of the production and
procurement of milk” (quoted by Prashant Upadhye- senior marketing
manager of Amul.)
These aims and objectives will be thoroughly discussed as the report
progresses.
How Amul is influenced by its stakeholders:
In a personal interview held by me Prashant Upadhye the senior marketing
manager of Amul claims that their communication strategy is very effective-
“Amuls main stakeholders are the farmers who supply raw materials and
customers from whom we make our products”. Amul has always cared for
common consumer needs and common supplies for better quality product
than others.
Size:
Amul is jointly owned by 3.6 million farmers. It is Indias largest food product
marketing organisation and it has an annual revenue of $4.5 billion. Amul
produces 18 million litres of milk everyday which means that this is large
business.
Scope:
3
Introduction:
This report will be describing the two types of business organisations and
what makes them successful. The report will explore the features of a private
limited company as well as a cooperative company.
Aims:
The aim for this research is to explore:
-History
-Ownership
-Scope
-Size
-Business Structure
-Liability
-Purpose
-Aims and objectives of the business
And most importantly find out what the reasons for success of these
businesses are. To achieve this, this report will include:
• Reliable data
• Facts and figures
• Structures
Amul India
Amul is an Indian dairy cooperative
society, based at Anand in the Indian
state of Gujarat. This company was
formed in 1948 and it is managed by the
Gujarat Cooperative Milk Marketing
Federation LTD. Amul impelled Indias
white revolution, which made the
country the worlds largest producer of
milk and dairy products.
https://startuptalky.com/amul-case-study/
Ownership:
Amul is a cooperative company which means that it is owned, controlled and
operated by a group of 3.6 million farmers to meet the common needs of its
members, sharing ownership as well as making decisions democratically.
Cooperative businesses have its advantages and its disadvantages.
1
, P1, P2 & P3
Advantages:
• Workers get a voice- the member owners of a cooperative business work
together to make large and small decisions about the mechanics and
direction of running the company. This is an advantage because multiple
minds can bring in new ideas to help the company grow.
• Easier sources of financing- cooperative businesses can be financed in
party by their members, whose buy-in equity can go towards working
capital and expansion.
Disadvantages:
• Cooperatives struggle to establish unique branding. Cooperatives can
sometimes lose sight of their unique branding because their members are
part of each individual instead of standing separately as a unique brand.
• Cooperatives aren’t as profitable to the owners or founders. The earnings
and profits of a cooperative receive equal distribution Among every empty,
that means this business type is nowhere near as profitable to the initial
owners or founders of the company.
Liability:
Amul has limited liability which means that if the company fails the members
will not have to risk their personal assets. Having a limited liability is
extremely beneficial as members can buy and sell their ownership, change
management, or restructure and they have no need to report it to their state.
https://amul.com/m/disclaimer
History of Amul:
It was founded in 1946, before the pre-independance in India, when the dairy
sectors were ruled by Poison dairy and ruined the farmers journey. Farmers
were angered by the unfair trade practices and approached Sardar Vallabh
Bhai Patel. He suggested the idea of having a cooperative society of their
own, having its pasteurisation plant and advised farmers that they should
discontinue selling their dairy products to the middle men, in case their
demands were not fulfilled. The demand was later on fulfilled, despite being
turned down initially by the government. This marked the beginning of the
Kaira District Cooperative Milk Union Limited, Anand. Their main goal was to
provide value to consumers money. It started with few villages, and after 10
years Amul has become a big brand. Companies with good marketing
strategies ruled the world and Amul is one of them.
https://www.courseinbox.com/amul-case-study/
2
, P1, P2 & P3
Purpose
Amuls purpose is to market a wide scope of items such as: milk powders,
milk ghee, chocolate, shrikhand, gulabjabun, dessert, cream and others,
making it the biggest sustenance brand in India with a yearly turnover in
abundance of US $1 billion. Amuls main purpose is to innovate, Amul also
won the World Dairy Innovation Award in 2018.
https://amul.com/m/amul-wins-world-dairy-innovation-award-2018
Aims and Objectives:
• Amul has been trying to make the products available to its customers
easily.
• Amul has constantly been innovating and launching new products and the
aim is to continue to do so.
• Amuls objective is to supply goods with best of quality and purity at very
reasonable rates.
• Increase Indias milk production
• To increase the foreign exchange of the country by exporting the milk
products
• To produce products according to national priorities
• “Amuls common business objective is to have self sufficiency in milk
production” (quoted by Prashant Upadhye- senior marketing manager of
Amul.)
• “Farmers can earn their own benefits out of the production and
procurement of milk” (quoted by Prashant Upadhye- senior marketing
manager of Amul.)
These aims and objectives will be thoroughly discussed as the report
progresses.
How Amul is influenced by its stakeholders:
In a personal interview held by me Prashant Upadhye the senior marketing
manager of Amul claims that their communication strategy is very effective-
“Amuls main stakeholders are the farmers who supply raw materials and
customers from whom we make our products”. Amul has always cared for
common consumer needs and common supplies for better quality product
than others.
Size:
Amul is jointly owned by 3.6 million farmers. It is Indias largest food product
marketing organisation and it has an annual revenue of $4.5 billion. Amul
produces 18 million litres of milk everyday which means that this is large
business.
Scope:
3
