Management Accounting Practices

MANAGEMENT ACCOUTING PRACTICES

KERRY GROUP BUSINESS SERVICES

SOBANA D/O RAMACHANDRAN

MBS141029

Management Accounting

Master of Business Administration

International Business School

Universiti Teknologi Malaysia

30 NOVEMBER 2014

1.0 History of Kerry

Kerry is a food company headquartered in Ireland. It is quoted on the Dublin and London stock exchanges, with a market capitalization in excess of 9 billion Euros and some 30,000 shareholders. Kerry’s headquarter is in Tralee, County Kerry, Ireland, Kerry employs about 36,000 people in its manufacturing, sales and technical centers worldwide. Kerry supplies over 15,000 food, food ingredients and flavor products to customers in more than 140 countries worldwide. It has manufacturing facilities in 24 different countries and sales offices in 20 other countries includes Malaysia. Today, with operations in that 24 countries across five continents, Asia Pacific markets represent 12% of sales, American markets 31% and European markets account for 57% of sales.

In 1973, Kerry started as a private company with three shareholders, which are the state-owned Dairy Disposal Company, a Federation of eight small farmer co-operatives in Kerry and Erie Casein Company Inc. from the US. In the period of 1974 to 1979, Kerry expanded its milk business in a similar fashion to other dairy cooperation but did so on a consistently profitable basis, which of course was not always typical of the traditional dairy cooperation sector. Kerry grew organically simply by taking the milk that came its way, processing it and meeting all other farmer requirements in terms of inputs and on farm services. The milk supply increased from 67 million gallons in 1974 to 87 million gallons in 1978. In 1979 and 1980, Kerry lost almost 20% of its milk supply as, milk production was depressed due to wet summer weather. Between 1980 and 1985, with a great deal of talent nurtured throughout the organization, Kerry diversified its food...