The Dutch Lady

 Introduction

Industrial developments and growth information is an important for management. To understand and analyze the growth it requires economical analysis for finding the values of production, demand, supply etc., and microeconomics is s tool to take a decision on various levels to capture the business growth (Solomon, 2000).Dutch Lady Milk industries Berhad Malaysia is established in 1963 and producing milk products for Malaysian population. Milk is an essential product for all equal. Milk also used as a substance to produce variety of products. Dutch Lady Milk industries Berhad Malaysia producing milk for 1963s and captured Malaysia consumers and as well as Indonesia and Thailand, Philippine etc.,Dutch Lady Milk industries Berhad Malaysia established at Kula Lumpur and having a various distribution centers to cover the Malaysia as well as other area.Dutch Lady Milk industries Berhad Malaysia the milk production is 3 million liters milk per day. Dutch Lady Milk industries Berhad Malaysia have a strong plan reducing of production 27 millions of liters to consume locally and intentionally per day (Ross, & Stephen, 2008).

Type of economic goods produced

Dutch Lady Milk industries Berhad Malaysia is a leader providing milk product to the consumers. In this analysis focuses only milk products. That is

1. milk mum
2. milk for growing children
3. Milk for family

Dutch Lady Milk industries Berhad Malaysia the other three products are available with various favors Dutch Lady Milk industries Berhad Malaysia locally and internationally.

Full cream milk 20% fat

Toned milk   2% fat

Double toned milk 1% fat

Low fat   10% fat

Zero cholesterol 0% fat.

Economic problems

Malaysia populations are more interested to consume milk particularly families. Dutch Lady Milk industries Berhad Malaysia is running their business s last 50 years with a strong value from the consumers. The problem is facing from procuring a milk from local farmers and as well as importing.  Dutch Lady Milk industries Berhad Malaysia having a strategy to maintain procurement of milk produce the processed milk according to the demands.

 Application of microeconomic concept

Dutch Lady Milk industries Berhad Malaysia business economical issues require the resources to understand the values of demand and supply.Organizations growth is influenced from resources. Dutch Lady Milk industries Berhad Malaysia the resources particurly milk form milk suppliers. Procuring raw milk is a challenging price from various suppliers. The following suppliers are (Scott, & David 2009).

Local farmers,

Import form new Zealand

Import form Australia

 Short Run production/services

Dutch Lady Milk industries Berhad Malaysia milk production of various products is described from short run production curve as shown in the figure. The figure shows the various cause involved in Dutch Lady Milk industries Berhad Malaysia products like fixed cost and variable cost concerned in short run productions (Stephen, Robbins, & Millett 2004).

Organization growth and its profits is also depends on organization pricing strategy. The pricing strategy of Dutch Lady Milk industries Berhad Malaysia is monitored by Malaysia government authorities so that they have a proper sealing on milk products. The intension is to provide low cost price to the consumers. Dutch Lady Milk industries Berhad Malaysia the short run productions are different locations of Malaysia to produce depends on various occasions. Particularly a special seasons etc.,(Block, & Stanley 2008).

Figure 2 : short run production

Source: www.rmit.edu.au/short-run pdf

 Long run production

Dutch Lady Milk industries Berhad Malaysia products long run description described in long run output graph. the curve explains the various cost invoked in long run average fixed cost is also considered as Dutch Lady Milk industries Berhad Malaysia average variable cost etc. The following graphs describe long run productions details (Solomon, 2000).

Dutch Lady Milk industries Berhad Malaysia Products and organization financial growth is depends on fixed prices so that organization can achieve market equilibrium. Dutch Lady Milk industries Berhad Malaysia long run productions are particurly various distribution centers to run the different capacity of distributions as per the year (Go, 2009).

Figure 3 : Long run productions

Source: https://www.rmit.Long+run+production.edu.au

 Demand and supply

Supply of products depends on availability of products as per the demand from the customers purchasing price. Dutch Lady Milk industries Berhad Malaysia supply of milk products and its details as shown in the figure 4

Malaysia populations are more interested in consuming milk so there is a big demand so Dutch Lady Milk industries Berhad Malaysia maintains the supply always equilibrium between products supply as per the demand of the products in equilibrium price (Blake, 2002).  

Figure 4: Production levels

Source: https://www.Dutch+lady+Productionc.com.pdf

Dutch Lady Milk industries Berhad Malaysia mangment focus on the price fixation so that Malaysia government maintains the market demand of milk product must balance the supply of the demand equilibrium price of Dutch Lady Milk industries Berhad Malaysia products.

Dutch Lady Milk industries Berhad Malaysia the products are

Full cream milk

Toned milk

Double toned milk

Low fat milk

Zero cholesterol

Dutch Lady Milk industries Berhad Malaysia mangment intention to maintains pricing strategy as the east cost element where itself Dutch Lady Milk industries Berhad Malaysia products at lowest cost for the consumers focusing on various sectors in the society. Dutch Lady Milk industries Berhad Malaysia procuring milk and its cost varies between local framers and as well as import milks are different prices because of transportation cost.Malaysia government is encouraging the Malaysian people so consumers milk for health. So the government strongly controls the price fixing of Dutch Lady Milk industries Berhad Malaysia. Malaysia government looking basically befitted to the society so that providing cheaper rate of milk (Solomon, 2000).Subsidy is one of the major benefits to the society. Malaysia government implemented subsidy schemes particurly on procuring pricing of milk so that Dutch Lady Milk industries Berhad Malaysia can provide subsidized price to particurly society.Dutch Lady Milk industries Berhad Malaysia maintains the price ceiling strategy so that company have a control on fixing price on product as per the ceiling from he government. Malaysia government is involved in fixing the price of the product as per the ceiling level. This indicates Dutch Lady Milk industries Berhad Malaysia have no control on fixed price of product.

Price in elasticity of demand

Price elasticity of demand describes the changes of demand due to the price fluctuation. Price is the value fixed by the seller to the consumer. The figure 7 shows the pricing strategies levels. Dutch Lady Milk industries Berhad Malaysia pricing strategies impact from the relative in elasticity demand of the product price. The relative inelasticity demand is called as it is not effect on maximum changes in the demand of the product even though changes gradually high level in pricing (Solomon, 2000).

Figure 7: Price Elasticity of demand

Source: www.rmit.edu.au.ped.pdf

  Price elasticity of supply

The elasticity of supply describes the fluctuations of demand by impact due to variation of prices. Dutch Lady Milk industries Berhad Malaysia product is supply impact by the pricing strategy. Dutch Lady Milk industries Berhad Malaysia mangment wants increase the supply level parallel to increase the procuring the rice of milk from the various local vendors and as well as exporters(Philp 2002).

Figure 8: Price elasticity of supply

Source:www.rmit.edu.au/pes.pdf

 Conclusion

Dutch Lady Milk industries Berhad Malaysia management is understandings the Malaysia government policies, subsidies to maintain the business ceiling on Dutch Lady Milk industries Berhad Malaysia products. Dutch Lady Milk industries Berhad Malaysia products and their profits are minimum level because to produce milk for society health purpose and as well as government subsidies.

 References

Philp K. (2002)  Microeconomics, New York: Prentice Hall, pp31-71.

Blake, B, A. (2002) Microeconomics Policy Issues Surrounding Tobacco Quota Buyout Legislation,from:http://www.ca.uky.edu/cmspubsclass/tinymce/jscripts/tiny_mce/plugins/filemanager/files/lpowers/buyout/03June_BuyoutIssues.pdf

Stephen, P., Robbins, B. & Millett T. (2004) Microeconomics & Management, Australia: Pretice Hall, pp9-139.

Ivancevich, G, & John M. (2008) Microeconomics Management Strategy, Boston, MA : McGraw Hill,pp234.

Go, F. M. (2009) Microeconomics Management Behaviour and Theory, New York, NY : John Wiley,pp45.

Naved H. (2004) Role of Microeconomics from: http://www.adb.org/Documents/Speeches/2004/ms2004001.asp

Solomon T. (2000) The Microeconomics: Theory and International Evidence, from http://fic.wharton.upenn.edu/fic/papers/05/0523.pdf

Scott, F & David F, (2009) Basic Microeconomics Management, New York: Prentice Hall,pp22-111.

Ross, H & Stephen A, (2008) Modern Financial management, Indiana Polis: McGraw-Hill Irwin,pp31-88.

Block,  B & Stanley B, (2008) Foundations of Financial management, New Jersey: McGraw-Hill Irwin,pp24-92.