Dairy Farm

1. team mate:Chan Chak Chuen 4E (1) Chan Chun Bong 4M (2) Cheung Ka Yan 4M (11) Cheung Wai Ho 4M (12) Tsoi Lai Suet 4M (28) Dairy Farm

2. Integration 合併 Dairy Farm its businessinHongKong:

3. Integration 合併 Dairy Farm is a Conglomerate Integration(集團合併) The Group, its associates and joint ventures operated over 5,700 outlets; Wellcome/Food World (supermarkets), 50% share of Maxim‘s Catering (restaurants), cold Storage (supermarkets), Jasons Market Place/Market Place by Jasons/Jasons Food Hall (high end supermarkets), Shop N Save (discount supermarkets), Giant (hypermarkets), Mannings/Guardian (health and beauty) stores; it also operates 7-Eleven (convenience stores) throughout the region, and IKEA (home furnishings) stores in Hong Kong and Taiwan. In 2012 the group, its associates and joint ventures operated over 5,700 outlets, employed over 97,000 people and had total annual sales in excess of US$11 billion.

4. Integration 合併 Conglomerate Integration is define the firm nature of the product is completely different vendors merge That is irrelevant to the two companies, there is no direct competition between them, the market is different, but happens combined, that is conglomerate integration.

5. Integration 合併 Advantage of Conglomerate Integration: 1) Risk diversification 2) Enjoy economies of scale 3) Product diversification

6. Type of production • Primary production • Secondary production • Tertiary production

7. Type of production • Primary production it refers to the those activities that directly extract or use raw materials from rature • Dairy farm of HK $ 30,000 to build ranch in Western District Pokfulam early and feeding 80 cows imported from the UK Pokfulam old cowshed

8. Type of production • Secondary of production it refers to the processof turning raw materials into semi-finished or finished goods • Dairy farm feeding 80 cows imported from the UK in the ranch to product fresh milk

9. Type of production • Tertiary production it refers to the provide services • In 1960, Dairy farm and co-founder of Crawford, a subsidiary of the Italian even (Dairy Lane), the creation of the Italian even supermarkets in Central Hong Kong, Hong Kong's first supermarket. 1970 has a branch in Italy even Causeway Bay Pearl City Mansion, 1980 renamed Wellcome.

10. Type of production • Dairy farm have many business to provide services • wellcome • 平記超級市場 • Jasons Food & Living • ThreeSixty • GNC Health Food • Oliver's • Market Place by Jasons • Mannings • 7-11 • IKEA home furnishings • Maxim's Caterers Ltd. (50% stake)

11. Market Structur • Define of market:A market exists when buyers and sellers com into contact for transactions. • Market structure describes the features of a market, especially the competitions between sellers. • We classify different markets into four types of market structures: • Prefect competition • Monopolistic competition • Oligopoly • Monopoly

12. Market Structur • Dairy Farm International Holdings • Number of sellers: Dairy Farm was set up in 1886 by Sir Patrick Manson, a Scottish surgeon, and five well known Hong Kong businessmen. • Nature of goods:They initially aimed to improve the health of Hong Kong people by providing them with non-contaminated cows' milk and to import a herd of dairy cattle so as to decrease the price of milk by more than half.In 1890, Dairy Farm built a low-rise brick and stucco building on Lower Albert Road in Central for use as a cold storage warehouse. This warehouse was later renovated and expanded in 1913 to include a dairy shop, a room for meat smoking, a cold storage room for winter clothes and residency for the General Manager.

13. Market Structur • Information of the market:Imperfect It is barriers to entry. It is price searcher. ∴Dairy Farm International Holdings is oligopoly.

14. Limited company • A limited company is a legal entity which its shareholders enjoy limited liability and it can raise captial by issuing shares Features of limited companies: • a legal entity • limited liability • lasting continuity • separation of ownership and management • higher profits tax rate • easy to set-up • wider soures of captial

15. Limited company Type of Limited companies Private limited company • number of share holders ranges from 1-50 • cannot issue shares to the public • share can only be transferred with the consent of other shareholders and are not freely traded on the stock exchange • has to disclose its finahical statements to share holders only Public limited comany • at least 1 shareholder with no upper limit • can be listed and issue shares to the public • shares can be freely traded on the stock exchange • has to disclose its financial statments to the public regularly

16. Limited company • Dairy farm is a public limited company. becauseat least 1 shareholder with no upper limited and can be listed and issue shares to the public also shares can be freely traded on the stock exchange Dairy farm have 2 shares in the market • SGX(新加波交易所)：D01 • BSX(百慕達證券交易所)：133

17. Issuing ordinary shares to raise capital (for company)

18. Buy ordinary shares(For smallinvestor)

19. laws of supply and demand • Ifthefirmset theequilibriumprice,thetotalrevenueisthelargest. • Thediagramshowthis.

20. laws of supply and demand 1.Whenthegoodspricesetatthe  equilibriumprice,quantitydemandandquantitysupplyarethesame. 2.Ifwesetbelowtheequilibriumprice,quantitysupplywouldlessthanquantitydemand,shortageappear.

21. laws of supply and demand Ifsomeonesaidthatmilkishealthy,customerswillbuymore. So,demandincrease,priceincreaseandquantitytransactedincrease.

22. laws of supply and demand Suddenly,manycowsborn.Therearesomuch milktosupply,supplyincrease.

23. laws of supply and demand • If the extent of demand changes more than supply , the price will increase. • If the extent of demand changes less than supply , the price will decrease. • If the extent of demand changes equal to supply , the price will remain unchange.