Economic Efficiency
Recent measures taken by the firm to achieve efficiency. (Distinguish carefully as between different economic notions of efficiency in your answer).
Glanbia plc is an international dairy and nutritional ingredients group headquartered in Ireland. The company has 4,500 employees in seven countries and sales offices in a further five. International operations include food ingredients and nutritionals while Irish operations incorporate consumer foods and agribusiness and property. The group has three strategic joint ventures which are based in the UK, USA and Nigeria. The company has the early 2000’s expanded its international based projects and acquired new sectors of the world market by mergers and acquisitions.
Due to the economic downturn more and more companies are facing financial difficultly. To try reduce this and combat the situation the economic market sees itself in companies are trying to become more efficient and using their resources to their full capacity where as in the “boom” years were able to over look. With glanbia now having a worldwide operation with sites all around the world the company had to look right across the board to see where it can improve on its efficiency. In Ireland labour costs are one of the highest in Europe so this amounts for a lot of glanbias cost. To try and resolve this cost glanbia cut 50 jobs in their city west facility and a further 210 jobs across their plants in Ireland as part of their cost saving plan. The job losses were part of glanbias 16 million restarting plan for 2009. Glanbia has also implemented a global senior management pay freeze and that all plc non-executive directors have taken a 10% salary cut. Also glanbia to the disappointment of farmers cut milk prices from 10 to 14 cent. The lower price means glanbias cost of their raw material is reduced greatly helping the efficiency of the company.
Electricity is also a major contributor to the cost of production in glanbia and being able to use its
Glanbia plc is an international dairy and nutritional ingredients group headquartered in Ireland. The company has 4,500 employees in seven countries and sales offices in a further five. International operations include food ingredients and nutritionals while Irish operations incorporate consumer foods and agribusiness and property. The group has three strategic joint ventures which are based in the UK, USA and Nigeria. The company has the early 2000’s expanded its international based projects and acquired new sectors of the world market by mergers and acquisitions.
Due to the economic downturn more and more companies are facing financial difficultly. To try reduce this and combat the situation the economic market sees itself in companies are trying to become more efficient and using their resources to their full capacity where as in the “boom” years were able to over look. With glanbia now having a worldwide operation with sites all around the world the company had to look right across the board to see where it can improve on its efficiency. In Ireland labour costs are one of the highest in Europe so this amounts for a lot of glanbias cost. To try and resolve this cost glanbia cut 50 jobs in their city west facility and a further 210 jobs across their plants in Ireland as part of their cost saving plan. The job losses were part of glanbias 16 million restarting plan for 2009. Glanbia has also implemented a global senior management pay freeze and that all plc non-executive directors have taken a 10% salary cut. Also glanbia to the disappointment of farmers cut milk prices from 10 to 14 cent. The lower price means glanbias cost of their raw material is reduced greatly helping the efficiency of the company.
Electricity is also a major contributor to the cost of production in glanbia and being able to use its