FoodMaster Company Is on the Verge of Expansion - Case Study Example

Until the early parts of the 1990s, even a single yogurt manufacturing unit was there in Kazakhstan. A group of young businesspeople has identified and discussed the opportunities for yogurt manufacturing and the outcome was the establishment of the first yogurt manufacturing company in Kazakhstan in 1995, under the name FoodMaster Company (FoodMaster, N.d.). FoodMaster Company has grown tremendously over the last 19 years from its introduction. At present, the company has 4 factories, 16 retail branches, and two dairy farms across the country. Moreover, the FoodMaster factories have the capacity to process more than 100 tons of dairy products daily at present.

Initially, the company was interested in the manufacturing of yogurt alone; however, the company is currently manufacturing many other dairy products such as Kefir (a healthy dairy drink), Lapped Milk BIO-C Immun+ (a sweet vanilla flavored or fruit jam lapped milk), Dolce Yoghurt Drink (a gentle creamy drinking yogurt made from milk of the highest quality, with large cantles of natural juicy fruit), Lactel Milk with Vitamin D (a milk RANGE with vitamin D) and Nanny Yogurt Drink (a drink made from the milk of the highest quality with a wide range of fruit supplements). Are yogurt, sour cream, home curd, Dolce yogurts, and Bio-C Immune+ curdled milk are extremely popular among the people of Kazakhstan (FoodMaster, N.d.). The company has the habit of updating and diversifying its product ranges every year, based on the changing trends among the consumers. It should be noted that consumers are always looking out for new tastes and flavors. FoodMaster Company knows this fact very well and has developed more than 100 popular dairy products as of now. Some of the major landmarks of FoodMaster Company’s history are given below.

·       1995: Launch of the first Kazakhstan Yogurt.
·       1997: Launch of the first Kazakhstan Yogurt Drink.
·       1999: Launch for the first time in Kazakhstan of ultrapasteurized milk in a carton package.
·       2001: implementation of the quality management system in accordance with the international standard ISO 9001:2000
·       2005: Launch of the first granular curds in Kazakhstan. (FoodMaster, N.d.).

One of the major success factors of FoodMaster Company is its commitment to corporate social responsibility, environmental protection, and sustainable development. The company’s vision is to provide dairy products with natural ingredients to the people of Kazakhstan. It should be noted that many other prominent dairy companies in other parts of the world are using artificial ingredients to stretch the life of dairy products as much as possible. The company is giving more importance to the health and safety of the people rather than the profitability of the company. FoodMaster Company is not taking such dangerous risks to enhance profitability. The company’s corporate culture and its utility are visible at each department level. While most of the other companies say volumes about corporate social responsibility and deliver less, FoodMaster Company says less and delivers more as far as CSR is concerned. The company has plenty of social service programs to help orphans, youth, veterans, and persons with disabilities, as well as other socially vulnerable groups (FoodMaster, N.d.).

The FoodMaster Company is currently doing everything possible to protect the environment. The company has already reduced energy consumption as much as possible as part of its efforts to contribute something to environmental protection. It should be noted that all types of energy production are causing some problems to the environment. The company is currently using green energy as much as possible. 

FoodMaster company aims to be a responsible corporate citizen of the Republic of Kazakhstan. The Company believes it necessary to contribute to the improvement of national competitiveness, promote social and economic development in the regions of its presence, to be a reliable partner of government and public organizations in the formation of a stable and supportive social environment.FoodMaster company is one of the largest Kazakhstani taxpayers. This year, the Company ‘Company FoodMasterTrade’ Ltd. rightfully won the award as ‘The best Taxpayer of the year’ (FoodMaster, N.d.).

FoodMaster Company knows the importance of international business and currently, the company is looking for expansion opportunities outside Kazakhstan. In order to increase the corporate image, the company has joined the Laktalic International Group (France) in 2004.  This group comprises 200 reputed companies around the globe, which are producing high-quality dairy products. The company expects that membership in this group would help them to increase their corporate image and reduce the barriers of entry in overseas countries. The company has implemented a quality management system at the beginning of 2000 and succeeded in receiving an ISO certificate in 2004. In 2004 itself, the company has received a certificate from the authoritative international certification body TUV Rheinland (Germany). Moreover, in 2010, the company has implemented the international system of food safety — HACCP (Hazard Analysis and Critical Points) (FoodMaster, N.d.). All these strategies are helping the company to enhance its corporate image so that its internationalization process is becoming easier and easier as time goes on.

In short, FoodMaster Company is on the verge of expansion at present. The name; FoodMaster is familiar to the people of Kazakhstan and the company is currently determined to familiarize its name in the international market. The Kazakhstan market is almost saturated for the company at present. The company has dairy stores, virtually at every corner of Kazakhstan. At the same time, the international market is offering plenty of scopes to dairy products at present. It should be noted that globalization has brought plenty of opportunities to companies that are ready to internationalize.