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Homework answers / question archive / XYZ Company for Tea Production XYZ Co is a prominent company in the FMCG industry

XYZ Company for Tea Production XYZ Co is a prominent company in the FMCG industry

Operations Management

XYZ Company for Tea Production XYZ Co is a prominent company in the FMCG industry. It provides 400 different brands spanning 14 categories of home, personal care and foods products. XYZ is now one of the world's biggest companies. Their first business in the Middle East started in Saudi Arabia in the 1930's and by 1978, the first factory was set up in Jeddah to supply the Middle Eastregion with home and personal care products. In Egypt, XYZ established in 1991 a joint venture with an Egyptian company creating one of the largest FMCG businesses in Egypt. In 2000, XYZ established its tea factory in Borg El Arab to produce high quality tea. The total sales for XYZ (the tea factory) were around 50 Million Egyptian pounds during year 2019. The company is operating under a strategy that aims to provide the best tea tasting experience to its customers (differentiation strategy). During the last board of directors meeting, there was a hot discussion about the future of the tea business. The General Manager of the tea business shared the latest sales numbers. He highlighted the constant growth in sales in years 2017, 2018 and 2019. However, the current conditions in Egypt and the world calls for reassessment of their future sales.

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