Essay on AGRANA - From a local supplier to a global player

2859 Words Oct 30th, 2013 12 Pages
Question 1: From an Institution-based view, what opportunities and challenges have been brought by the Integration of EU markets in both Western Europe and CEE?

The home market from the European Union is one market which everyone has free movement with goods, services, capital and people. This was not always the way if we look back before the time of the EU we had a Europe which was overfilled with conflicts and wars. Because of the foundation of the EU we got a lot of opportunities in the Western Europe and in Central and Eastern Europe but also challenges because it’s not easy to bring so many different countries together with different rules, cultures, norms and ethics under one big Union.

Western Europe
The Western Europe
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In the last two decades, it has become a global player with 52 production plants in 26 countries with three strategic pillars: sugar, starch and fruit.”
The resource-based view focuses on a firm´s internal resources and capabilities, for instance rare knowledge in the refining and processing of agricultural raw materials like AGRANA. These specific knowledge is a big advantage for the AGRANA company and not easy to copy by other competitors.
“After the reorganization of the European sugar market by the European Union, AGRANA was motivated to look for new directions to ensure future growth of the enterprise. AGRANA decided to diversify into the fruit-processing sector in the future.”
This was a really well-chosen decision, because AGRANA was able to transmit their core competence of the refinement process comparatively easy to the fruit sector. With the existing knowledge “AGRANA focused on fruit preparations and the manufacturing of fruit juice concentrates to sell them globally to fruit juice and beverage bottlers and fillers.”
An analysis of the dates of the Tables 4.1a and c (AGRANA plant locations) shows, that the fruit sector is mostly responsible for the impressive growth of the AGRANA Company in the last years. In only four years (from 2002/3 to 2006/7) AGRANA´s plant locations increased from totally 20

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