Global Supply Chain Management

Supply Chain Management Author Name Institution Affiliation Kylemore Farmhouse Cheese is an Irish cheese brand run by Teresa Roche. A 39 years old nurse-turned-business woman has been operating her business since late 2017. Her passion to start her own venture drove her to open the Kylemore brand after she had worked in the healthcare industry for about 14 years. Teresa went through a number of stages (such as business development courses, gaining in-field training and experience) over many years before actually starting her business. She secured the accreditation of Bord Bia Quality Assured for the milk production for her startup. The business made headlines due to its innovation and Teresa is an active member of the West Women in Farming Ireland (WWFI), Galway European Region of Gastronomy 2018 and Irish Holstein Friesian Association (IHFA). In the section below I will try to establish a point whether or not Austria will be a suitable choice for Kylemore Farmhouse Cheese to expand its business in to. For this, the focus will be on two key points; cultural considerations and risk management. Cultural considerations in Austria Several key points can be covered under cultural considerations, but I will be enlisting only those that are more relevant for Kylemore Farmhouse Cheese, so no deviation is occurring. Cheese market and its consumption The country has a huge potential for cheese producers as the consumption of cheese keeps growing every year. The latest report shows that the year-on-year revenue in the cheese market is 3.80 percent and stands at $1533 million (Edkins). The year-on-year per capital is also up by 3.70 percent which stands at $174.93. Although the revenue growth rate has slowed down the revenue is increasing and is projected to touch $1659 million by 2023. In the same line of growth, the per capita is also projected to increase and touch $187.69 in next four years. The report also reveals per capita consumption of cheese to be at 24.3 Kg as of this year (2019). This brings us to the average per unit price of cheese in Austria which has stayed over $7 and under $8 since 2010, and in 2019 the average per unit price stands at $7.20. These are impressive figures, and it seems like Teresa’s Kylemore Farmhouse Cheese will be able to claim a reasonable market share to start with and then it will depend on a number of factors which far she can take her a relatively new brand to make it an everyday household brand. Changing consumer trends It has been noted in recent years that consumers are more confident on buying cheese that is clearly labeled with the business certification(s) because such businesses are under a legal obligation to follow standard practices as a minimum and their products are most likely to be of good quality. It is a highly competitive market, and the consumer demands are changing with time (Morana, 2013). The Austrian people are moving away from traditional cheese to flavored cheese which has forced the cheese produces to introduce a range of flavors. Each unique flavor adds value to their business, and this is something Kylemore Farmhouse Cheese needs to keep on its books. To stay in the market for long sustainability it will be crucial for Teresa to come up with new ideas/flavors. Economy...