Fan Milk's leading shareholders included Danone, a global food and beverage company and Abraaj, a Dubai...

 

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Fan Milk's leading shareholders included Danone, a global food and beverage company and Abraaj, a Dubai private equity group. Spurred on by the company's strong performance and the favourable market for its products in Ghana; shareholders were committed to the continued growth and investment needed at Fan Milk. Additionally, Danone anticipated a steady growth in demand for dairy products in sub-Saharan Africa in the coming decades. In 2016, the board's strategic growth plan included a planned expansion of the production lines of the firm. This expansion would be achieved by opening three new factories in the country to help the company to sustain the demand for dairy products in West Africa. Pierre-André Térisse, Executive Vice President Access, Africa at Danone and Non-Executive Chairman of Fan Milk International opined that "...Fan Milk's growth has been strong for the past few years, and we believe there is potential for dramatically expanding its footprint by exploring yet untapped sources of growth, including the drinkable yoghurt category". Wahid Hamid, the Managing Partner at The Abraaj Group, was also of the view that the investment will further propel Fan Milk's production capacity and ensure it can meet its ever-growing consumer demand for its high quality and nutritious products. 1. Q - Evaluate Fan Milk expansion in Ghana. Support your answer with background research and data that support company's decisions? (S&E 2.3, 10 marks). 2. Q - Establish methods of communication to recommend to Danone's management on future growth into international markets? |(A&A 4.5, 7 marks). Fan Milk's leading shareholders included Danone, a global food and beverage company and Abraaj, a Dubai private equity group. Spurred on by the company's strong performance and the favourable market for its products in Ghana; shareholders were committed to the continued growth and investment needed at Fan Milk. Additionally, Danone anticipated a steady growth in demand for dairy products in sub-Saharan Africa in the coming decades. In 2016, the board's strategic growth plan included a planned expansion of the production lines of the firm. This expansion would be achieved by opening three new factories in the country to help the company to sustain the demand for dairy products in West Africa. Pierre-André Térisse, Executive Vice President Access, Africa at Danone and Non-Executive Chairman of Fan Milk International opined that "...Fan Milk's growth has been strong for the past few years, and we believe there is potential for dramatically expanding its footprint by exploring yet untapped sources of growth, including the drinkable yoghurt category". Wahid Hamid, the Managing Partner at The Abraaj Group, was also of the view that the investment will further propel Fan Milk's production capacity and ensure it can meet its ever-growing consumer demand for its high quality and nutritious products. 1. Q - Evaluate Fan Milk expansion in Ghana. Support your answer with background research and data that support company's decisions? (S&E 2.3, 10 marks). 2. Q - Establish methods of communication to recommend to Danone's management on future growth into international markets? |(A&A 4.5, 7 marks).

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Evaluating Fan Milks Expansion in Ghana Supporting Fan Milks Decision Strong Performance and Market Favorability Your provided passage mentions Fan Milks strong performance and the favorable market fo... View the full answer