Xyz Company Essay

283 Words2 Pages
CASE STUDY XYZ is a multinational food and beverage company and has many factories in different regions. One of the factories is located in Asia and the country suffers from a number of social, political, and economic problems. In spide of these problems, the beverage consumption is increasing very rapidly in this country so it is the most expanding and growing market for XYZ company. The country is near the seaside and has a port. XYZ sales volume and production in this country is increasing % 15-20 every year so it is the most important market and further growth is expected. The XYZ is the second market leader for beverage sales in this country. The seasonality is very critical for the sales. The production is increasing rapidly in the peak season, but there is a supply problem for one of the major ingredients. This ingredient is used for a certain type of beverage production. Annual consumption of this ingredient is 15.000 ton for 2013. Inside the country, the production of this ingredient is very scarce and limited since there are some energy problems. In the production process of this ingredient natural gas is used, but natural gas sources are not enough and continuous in the country. XYZ company is dependent on this ingredient to continue its production. There should be a new solution within 6 months since the stocks will finish. The supply from the current sources is not enough and it will be the peak season for sales. How can you secure the supply? Considering %20 growth every year, what should be the consuption of this ingredient for 2020 and what should be the long term strategy for the
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