bfp1100 ( bega cheese assignment) 3b: greenhouse business challenge and carbon footprint
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Assignment 3B: Greenhouse Business Challenge and Carbon FootprintUnit Code: BFP1100Unit Name: PROFESSIONAL DEVELOPMENT 1 - CRITICAL THINKING AND PROBLEM SOLVINGVictoria University, Melbourne Semester 1, 2013TRANSCRIPT
Assignment 3b:
Greenhouse Business
Challenge and Carbon
Footprint
Group Name: Reflective
Thinkers
Tutor: Jan Marett
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Reflective Thinkers Group Members
Members: Student ID: Role:
Vilashini Radha Krishnan 3757732 Team Leader (A)
Rostand Bongwa 3876049 Team Leader (B)
Lingyue Xiao 3914679 Researcher (Corporate Governance)
Sarah Grusazk 3823118 Researcher (Operations)
Shane Cameron 3635170 Researcher (Corporate Social Responsibility)
Lina 4090386 Researcher (Current Global Practices)
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Executive Summary
The Greenhouse Business Challenge and Carbon Footprint is an assignment assigned to
Professional Development 1 students in order for students to effectively work in teams.
Teamwork is increasingly becoming popular in businesses and industries in order to
formulate and solve problems. “Teams have proven to be a good way of improving the
effectiveness of organisations” (Williams & McWilliams, 2010).
The aim of this report is to understand how businesses are impacted by the Carbon Tax that
was introduced in June 2012 by the Australian Parliament. The Reflective have chosen to
look at Bega Cheese. This report will specifically look at three carbon footprints which are
Corporate Governance, Operations and lastly Corporate Social Responsibility.
Under Corporate Governance we found that the major issue was in regard with internal
conflict. We recommended that Bega cut its number of suppliers to help with the issue of
internal conflict. Also another recommendation would be to keep a carbon inventory so that
Bega knows how much emissions are being let off. Under Operations, the major issue Bega
is dealing with is high electricity usage. We have recommended that Bega starts using solar
panels in order to reduce their energy consumption. Lastly under Corporate Social
Responsibility (CSR) we recommended that Bega prints advertisements to promote its CSR
so the public and shareholders will know their policy. We also recommended that Bega
make alliances with farmers, stakeholders and the government to reduce its carbon
emissions.
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Table of Contents
Executive Summary ................................................................................................................................. 2
1.0 Introduction ................................................................................................................................ 4
2.0 Background on Greenhouse Challenge & Carbon Footprint in Australia ................................... 6
3.0 Current Global Practices ............................................................................................................. 9
4.0 0rganisational Background ....................................................................................................... 13
5.0 Corporate Governance .............................................................................................................. 14
6.0 Operations ................................................................................................................................ 19
7.0 Corporate Social Responsibility ................................................................................................. 27
8.0 Overall Recommendation .......................................................................................................... 31
9.0 Conclusion ................................................................................................................................. 32
10.0 Appendices .................................................................................................................................... 34
10.1 Reference List Collated ............................................................................................................. 34
10.2 Meetings Agenda (Leader A) .................................................................................................... 39
10.3 Meeting Minutes (Team Leader B) ........................................................................................... 45
10.4 PowerPoint Slides ..................................................................................................................... 47
10.5 Turnitin Originality Report ........................................................................................................ 55
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1.0 Introduction The Greenhouse Business Challenge and Carbon Footprint assignment used many problem
solving techniques that were thought in Professional Development 1 throughout the
semester. “Problem Solving involves identifying and taking actions to resolve problems”
(Schermerhorn, et al. 2004, p.73). The aim of the subject being to provide students to
effectively solve problems and think critically.
The first step was to do a general brainstorm (Refer to appendix 10.4) which involved listing
the issues of each of the three responses. The second step was a mind map of problems
(Refer to Appendix 10.4) of each response. “Mind mapping is a technique that is used to
represent ideas linked to and arranged radially around a central key word or idea” (Fogler &
leBlanc 2008, p.126). The next step involved identifying the major problems within the
three responses. The forth step used the K-T situation appraisal (Refer to appendix 10.3).
The K-T situation appraisal provides a decision on what problems should receive the highest
priority. Fogler & LeBlanc (2008) discusses the evaluation criteria (what problems should be
dealt with first) involved in the KT-SA; the first is timing (how urgent is the problem); the
second is trend (problems potential for growth?) and lastly impact (how serious is the
problem). The evaluation criteria is categorised into high, medium and low. By using the KT-
SA we can find out the top problem and how to rectify the problem. This is done by using
the Duncker diagram model (Refer to appendix 10.4). The “Duncker diagram helps us obtain
solutions that satisfied the present state/desired state statements” (Fogler & leBlanc 2008,
p.60).
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After doing all the problem steps we can finally come up with a recommendation to Bega on
how to improve their corporate governance, operations and corporate social responsibility
regarding carbon emissions.
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2.0 Background on Greenhouse Challenge & Carbon Footprint in
Australia
Australia is one of the driest countries in the world with a lot of desert. Australia is
especially vulnerable to climate change and is the developed world’s highest per capital
polluter. The reason for this is that Australia’s electricity is made from coal; which is the
most polluting fuel for the environment. The Australian Government has introduced a
carbon tax which will reduce Australia’s carbon emissions by 5% by 2020 (The International
Institute For Strategic Studies, 2011). “Australia has placed a high price of $23.80 per tonne
compared to other countries such as in Europe where the price is $8.70 to $12.60”
(BioCycle, 2011). Under the scheme Australia’s 500 worst polluters will be imposed a fixed
price for every tonne of carbon emissions they release from 1 July 2012; afterwards there
will be a movement to a full emissions trading scheme in 2015 (The International Institute
For Strategic Studies, 2011). The overall aim of the carbon tax is to encourage firms to cut
carbon emissions as much as they can and invest in green technology.
The carbon price will move to an emissions trading scheme (ETS) on 1 July 2015. The price
for acquiring permits under the ETS will be due to the number of permits available in the
market (supply) and the overall demand for the permits. For the first three years of the ETS
there will be a price cap on the market price of the permits. Therefore, the price will not be
flexible. On 1 July 2018, the ETS will be transformed to a flexible ETS which means there will
be no price floor or ceiling (CPA Australia, 2011).
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An important point to make is with regard to the mining industry. The mining and coal
industry are not pleased with the carbon tax. Clayton-Dixon quotes from Australian mining
“The tax’s cost impact, will hit many of Australia’s mines making them uncompetitive on
international markets” (Clayton-Dixon, 2013). Another quote from Clayton-Dixon states
from Rio Tinto’s Australia’s manager David Peever; alleges the country’s mining sector “now
faces significant additional costs not faced by competitors” (Clayton-Dixon, 2013).
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Team Leader (A) References
BioCycle 2011, Australia Passes Carbon Tax, BioCycle, 52 Issue 11, p6-6 Callum Clayton-Dixon 2012, Mining: debate over true impact of carbon tax on mines, Crickey: Independent Media, Independent Mines, viewed 15 May 2013, < http://www.crikey.com.au/2012/05/29/mining-debate-over-true-impact-of-carbon-tax-on-mines/> CPA Australia 2011, Summary of the Australian Government’s Climate Change Plan, CPA Australia, viewed 15 May 2013, < http://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/Summary-of-australian-governments-climate-change-plan.pdf> Fogler, H S and LeBlanc, S (2008), Strategies for Creative Problem Solving, Pearson Education, Upper Saddle River, NJ. Schermerhorn, J, Campling, J, Poole, D, & Wiesner, R 2004, Management: An Asia-Pacific Perspective, 1st edn, John Wiley & Sons, Australia. The International Institute for Strategic Studies 2011, Australia’s Carbon Tax Drama, The International Institute for Strategic Studies, vol. 17, comment 35. Williams, C & McWilliams, A 2010, MGMT, 1st Asia Pacific edn, Cengage Learning, Australia.
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3.0 Current Global Practices
The carbon footprint is a popular tool for individuals, populations and other entities to
investigate their individual or collective consumption and to analyse which items of
consumption embody the most greenhouse gases (Weber and Matthews, 2008;
Hertwich and Peters, 2009). The publication of footprint results by type of good or
service is of value in helping consumers to ‘green’ their consumption – enabling shifts
from more to less greenhouse-gas-intensive products. Within a product carbon
footprint,-a life-cycle approach (Finkbeiner, 2009; Weidema et al., 2008) is taken
implicitly in the calculation of the footprint for each item consumed by a population.
Australia emitted about 1.5% of global greenhouse gas emissions. However, on a per
capita basis, Australia is one of the world's largest polluters. For the year to June 2012,
our national inventory emissions per were about 24.4 tonnes carbon dioxide equivalent
(CO2e) per person. Australia's per capita CO2 emissions are nearly twice the OECD
average and more than four times the world average (Autralia's Greenhouse gas
emissions, 2009)
America's Share of the Climate Crisis Greenpeace report on historic emissions shows
why America is morally obligated to lead global response to global warming say that
"Over the past 150 years, the U.S. has emitted 328,264 million metric tons of carbon
dioxide (MtCO2), the primary greenhouse gas. That amounts to 29% of total global
emissions. Meanwhile, no other country in the world emitted more than 8% of global
emissions." Therefore, how can countries responding to these thing?
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The United States
The US is the second biggest emitter of greenhouse gases after China. Latest figures
expose total US greenhouse gas emissions improved 1.4% between 1996 and 1997
following a stable average annual upwards trend of 0.9% since 1990. Totally, emissions
from the US improved by 14.4% between 1990 and 1996. As of 2009 the US is passing its
first climate bill, which aims to cut carbon emissions by 17% by 2020 and 83% by 2050. ,
it has established some criticism as the targets are much lower than those being pursued
by most developed countries, and the calculation for cuts is based on 2005 emission
levels not those of 1990, which the Kyoto signatories have been working to (Exploring
climate change,nd).
Europe
According to Exploring climate change, most countries in Europe have managed to cut
their emissions, consequential in a net turn down for the third consecutive year in 2007,
according to the EU's greenhouse gases inventory information compiled by the European
Environment Agency. The EU-27's overall domestic emissions were 9.3% below 1990
levels, which equalled a fall of 1.2% or 59 million tonnes of CO2 equivalent compared to
2006. The EU-15 now stands 5% below its Kyoto Protocol base year levels.
China
China had overtaken the United States as the world's biggest emitter of carbon dioxide,
accounting for a fifth of the world's greenhouse gas emissions. Even though the usual
person in China uses only 10-15% of the energy of the average US citizen, its economy
has been increasing quickly and emissions are rising fast. Since most of its electricity
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comes from coal, China has been building coal-fired power plants at a rate of roughly
two a week for the past few years. Parallel to its speedy economic growth, China
continues to struggle to bring a large percentage of its population out of poverty. In 2007,
China unveiled its climate change plan. While refusing to accept binding targets, China
aims for a 20% share of renewable energy by 2020 (Exploring climate change, nd).
India
Exploring climate change say that "Pradipto Ghosh, India's Environment Secretary, said in
2007 that India would not curb its greenhouse gas emissions as long as the West continued
to treat it as a 'second class global citizen' with less right to pollute than the developed world.
At the heart of India's position on climate change is the notion that India - whose population
is predicted to reach 1.5 billion by 2050 - must be allowed to pollute on a per capita basis
equally with the West. Prime Minister Dr Manmohan Singh said that while aiming to reduce
poverty, India would ensure that its per capita emissions will never exceed those of
developing countries"
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Researcher (Current Global Practices) References Autralia's Greenhouse gas emissions, 2009, viewed 14th May, 2013
< http://www.carbonneutral.com.au/climate-change/australian-emissions.html>
America's Share of the Climate Crisis Greenpeace report on historic emissions shows why America is
morally obligated to lead global response to global warming, 2009, viewed 14th May, 2013
<http://www.greenpeace.org/usa/en/news-and-blogs/news/america-s-share-climate-crisis/>
Exploring climate change, nd, viewed 14th May, 2013
<http://www.educationscotland.gov.uk/exploringclie/emissionsspmatechange/respons>
Finkbeiner, M. (2009) 'Carbon Footprinting – Opportunities and Threats', The International Journal of
Life Cycle Assessment, No 14,pp 91–94.
Hertwich, E. and G. Peters (2009) Carbon Footprint of Nations: A Global, Trade-Linked
Analysis.Environmental Science & Technology.
Weidema, B.P., M. Thrane, P. Christensen, J. Schmidt and S. Løkke (2008) Carbon Footprint. A
Catalyst for Life Cycle Assessment? Journal of Industrial Ecology, no 12,pp 3–6.
Weber, C.L. and H.S. Matthews (2008) 'Quantifying the Global and Distributional Aspects of
American Household Carbon Footprint', Ecological Economics,no 66, pp 379–391.
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4.0 0rganisational Background
The process of dairying in Australia began in the 1850’s which saw farmers from all around
the Bega valley selling there produce from his own dairy to the public. On the date of July 18
1899 local farmers joined resources and banded together to establish Bega Co-operative
creamery company in order to better their production and marketing activities. The
company began production in mass amounts in 1990 which saw the demand from their
customers grow in the same way for the rich product that were produced by the company.
This allowed Bega to become the most dominant cheese brand in Australia for over 30
years. Today Bega produces both Natural and processed cheddar cheese products and is
recorded to sell over a million packets of its products a day across all brand and all of its
customers. This has been made possible by their two manufacturing sites one in New South
Wales and another in Victoria. (Bega, 2010)
Bega cheese has 100 plus farmers that supply them with milk to the factories and employs
over 500 staff in the Bega valley area, Bega is currently the leading supplier of cheese
products on the Australian market.
Bega cheese manufactures bulk cheddar, whey powder and butter, and produces cheddar
cheese retail packs, processed cheese products, individually wrapped slices, infant
nutritionals and lactoferrin products. (AAP Finance News Wire, 2013)
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5.0 Corporate Governance
Background:
An increasing number of companies are facing the challenge of greenhouse, future
greenhouse gas limits tends to be a certain trend. If companies still think ‘business as usual’,
the whole company will fall behind their competitors (Anonymous 2006, P. 1). Therefore, it is
necessary to switch strategies to confront climate change, starting with the improvement of
corporate governance in a company.
Definition of CG:
Corporate governance indicates company policy and principles by which a company or
business is regulated. These guidelines and procedures ensure the operation of a company
and add value to a company by achieving missions and goals. Corporate governance is usually
divided into internal factors and external factors (Robert & Minow 2011, P. 435).
Detail CG in Bega:
For Bega Cheese, the internal factors of its corporate governance refers to the board,
shareholders and employees. ‘The board is committed to maximising performance,
generating appropriate level of Shareholders value and financial return and sustaining the
growth and success of the Bega Cheese and the Bega brand’ (Bega Cheese Limited 2012) and
a Board Charter is adopted. There are currently five Supplier Directors and each of the five
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Supplier Directors are also farmer suppliers and shareholders. Employees are employed
through individual contract and are ruled by skills and ethic policies. On the other hand, its
external factors comprise suppliers, the government and the environment. Suppliers are also
its shareholders who carried out New Milk Pricing Policy in 2011. Moreover, Bega works
together with the government to implement safety policy such as ‘administration of food
stands and safety assurance system’ (Bega Cheese Limited 2012). In terms of environment,
Bega Cheese works together with Department of Environment, conversation & Climate
Change (Bega Cheese n.d.) and has agreement with Yarra Valley Water Limited and so on
(Bega Cheese Limited 2012) in order to meet ISO 14001 standards.
Expand to CG in Greenhouse for organisation:
According to its annual report, Bega Cheese has invested a large amount of money to address
emission issue and is dealing with some by-products and emission under legislation. For
instance, under the Australian Carbon Tax Legislation, the Board has recently measured the
impact of announced carbon tax proposal (2012). In addition, the company was awarded over
$280,000 to solve its carbon footprint problem, which means ‘for every $2 spent by Bega, the
government will invest $1’ (Bartlett 2012). However, although Bega has put much effort on
cutting carbon emissions, further action should still be taken.
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Best practice:
Some best practices in corporate governance area are worth learning from. Dairy Australia
suggests Research & Development department of each company to develop a cost effective
mitigation technology in order to reduce greenhouse gas emission (2012). Additionally, as
Kraft Foods is a forerunner of sustainability, leaders of Kraft have not only added cutting
carbon emission into the company charter, they even encourage every employee to accept
reducing carbon footprint as a part of their lifestyle. Furthermore, Kraft has been a part of
Carbon Disclosure Project (CDP) since 2005 and it has established Farmer Constitution to
require suppliers to comply with green farming policy (Kraft Foods Responsibility 2010).
Problems:
Bega has already done very well in corporate governance area, however, compared with
those best practices such as Kraft, there are still some issues remaining to be improved.
Firstly, because Bega has a background of co-operative business, distinct shareholders
including five suppliers and three independent directors who are holding contradictory
interests causes internal conflict on reducing carbon emissions from farms, which will cost
much money for suppliers to do so. For instance, although all the other independent directors
insist on renewing manufacturing mechanism, five out of eight shareholders who are all
suppliers reject this proposal. Secondly, it seems like Bega has no clear guideline on how to
reduce carbon emissions from the board down to the staff. Thirdly, monitor and control
systems of carbon emission needs improving.
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Recommendation:
Among these problems, internal conflict is obviously the main problem. It is recommended
to cut the number of suppliers or increase the number of independent directors to make
them equal. Moreover, the power of each shareholder should be transferred to
independent managers. On the other hand, energy-efficient manufacture training should be
provided to suppliers. Meanwhile, it is strongly recommended that managers should create
a special account to define main carbon inventory, to calculate carbon emission of each
stage of production as well as the amount of its further carbon tax. The nest year, these
controlled accounts should be reviewed by managers (Jemina 2010).
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Researcher (Corporate Governance) Reference List
Anonymous 2006, ‘Business and the Environment with ISO 14000 Updates’, Corporate
Governance and Climate Change, Vol 17, Iss 7, pp. 1-5.
Australian Diary Industry Council Inc. 2012, Dairy Industry Sustainability Framework Final,
DairyAustralia,viewed17May2013.
<http://www.dairyaustralia.com.au/~/media/Documents/Industry%20overview/Sustainabili
ty/Dairy%20Industry%20Sustainability%20Framework_Final%20Dec%202012.PDF>
Bartlett, J 2012, ‘Bega Cheese’s cleaner future’, Bega District News [Bega, N. S. W], 25 June
2012.
Bega Cheese Limited 2012, Bega Cheese annual report 2012, Bega Cheese Limited Prospectus.
Jimena, J 2010, ‘Managing Your Carbon Footprint’, Canadian Mining Journal, Vol 131, Iss 7,
pp. 10.
Kraft Foods 2012, Creating a More Delicious World, Kraft Foods Company, viewed 13 May
2013,
<http://www.kraftfoodscompany.com/SiteCollectionDocuments/pdf/kraftfoods_responsibil
ity_report.pdf>
Robert A. G. & Minow, N 2011, Corporate governance, 5th edn, Wiley, United States.
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6.0 Operations
Background/Definition/Description of Operations
The operations of any company or organization consists of recurring actions and procedures
which will help them to run efficiently, effectively and in return aim to result in positive
outcomes whilst generating revenue (Lindstrom, Matthew J. 2011, pg 167). These business
procedures can include both internal and external practices. These practices rely on one
another as they allow production processes to begin, for manufacturing to take place, and
for products to be dispatched to their desired locations. The operations of Bega include;
farming practices, manufacturing processes (such as cutting, refrigeration, packaging etc),
waste production, transportation, and also office and business duties. These operations
work together to ensure that Bega produces their creations, in the most efficient way while
also using best practices to ensure that all operations are environmentally friendly.
All operations are equally important, and heavily depend on one another to ensure each
individual practice is completed before it can be processed in the next step of the
production line. For example Bega Cheese relies on its farming operations (external
practices) to produce and supply fresh milk which is then collected by Begas ‘road tankers’
(Bega Cheese, 2012) to the factories, to then be stored until its ready for it to be
manufactured into dairy products. If farmers are unable to supply milk, this can cause Bega
to fall behind in their production schedule that will affect all areas of operations, especially
office practices.
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Bega Cheese’s Operations Carbon Footprint
In recent times the operations of dairy business worldwide have come under scrutiny due to
their lack of environmental awareness especially towards greenhouse gas
Emissions, and their ‘lack of best practices in place’ (Boyle, G 2008) to reduce carbon
footprints. ‘Dairy production along with all other types of animal agriculture is a recognized
source of GHG emissions’ (C. A. Rotz et al 2010). Direct emissions: Bega emits large amounts
gases such as ‘nitrogen oxide’ (Goche, K), into the atmosphere each time one of their trucks
leaves their factories to supply dairy goods all areas of Australia, or even on simple journeys
when collecting milk from Bega’s dairy farmers. Direct emissions: An example of Begas
indirect emissions can include the use of purchased electricity to operate machinery. Whilst
Milk is collected from farmers, it needs to be stored in refrigerators, which operate 24/7
across of 5 Bega sites. Lastly there are also other indirect emissions. Farming operations
help to supply bega with milk, but this comes as a cost as cows produce ‘methane
emissions’ (Silverman, J 2013) due to flatulence. Methane is said to be ’23 times more
powerful than carbon dioxide’ (Minato et al, 2013) Bega’s dairy farmers also contribute to
the emissions due to the soil in farmer’s paddocks, and also as these farms use large
amounts of electricity on machinery that help to acquire milk from their cows.
Best practices
Over the last year Bega has implemented steps to reduce amount of emissions that their
operations area produces, and to ensure that best practices are in place. As declared in the
2012 Bega Cheese limited annual report, Bega has appointed a new environment and
sustainability manager who is in the progress of developing new strategic plans to help
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reduce emissions such as farming programs. An example of a farming program is the
Environmental Management System, and as suggested by Begas annual 2012 report, the
project helps to minimize soil emissions by providing soil & nutriment tests to farmers. This
will then provide vital information about soil and nutrient levels. High levels will indicate
that cow diet need to be changed. As reported by Josh Bartlett at Bega district news (June
25th 2012) Bega in mid 2012 was awarded a grant of $280,000, by the Federal governments
aiming to lower energy emissions. Operations such as manufacturing processes, and
office/business duties, have taken advantage of the grant and have reduced the amount of
energy emissions, by implementing energy efficient lighting by Tigerlight electricity, and this
resulted in ‘power reductions by almost 66%’ and reduced maintence costs’ (Tigherlight,
2013). Other Dairy operations in Australia have implemented steps and best practices to
ensure that their greenhouse gas emissions are reduced.
‘The Murry Goulburn Co-operative which produces dairy products’ (Berry, P 2007)for brands
such as; ‘Devondale & Cobram Cheese’ (MGC, 2012), have ensured that their farming
operations use best practices to help reduce their green house gas emissions. Their farmers
have installed solar panels on their milking sheds, which helps to generate energy to run
farming machinery. These solar panels help to reduce energy emissions, and also help to cut
back costs. As stated by Peter Telford, a Goulburn dairy farmer, his energy bills dropped
from ‘$1200 a month to 300-400$ a month’ (DSI, 2012)
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Problems/Concern
As mentioned in previously, Bega already has implemented best practices to reduce their
carbon emissions but there are still outstanding problems in operations that need to be
addressed. Although Energy emissions at some Bega factories have been attended there is
are still 3 outstanding sites which need to incorporate these actions, and other areas of
operations which need to include these practices. Bega also needs to incorporate best
practices to help reduce energy emissions. Another operations area, which needs to be
addressed, further in reducing ghg emissions is Begas transportation services. Bega needs to
look at the amount of ‘carbon dioxide and nitrogen oxide’ (Goche, K, 2012,) that their trucks
are releasing at every journey they make. Bega needs to find a more environmentally
friendly way to transporting their goods. Another concern of operations at Bega that
contributes to their carbon footprint is their farming practices. Although as mentioned
previously there has been tests for farmers to use to find out if their farms produce high
amounts of emissions, these tests are not given out to every bega dairy farmer and the
strategy is not followed up so some farmers my not event change cattle diet.
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Recommendation for the major problem in the Operations area
The major problem at Bega is their electricity usage. Energy efficient lighting is currently
being used at the 2 Bega sites in their office and manufacturing processes areas, but Bega
could go a step further and install solar panels across all 5 sites and even give incentives for
Bega’s dairy farmers to install them too. Solar Panels are generally installed on the roof of
sheds and they help to ‘generate electricity’ (Australia Solar Quotes, 2013) to households,
businesses, and even farms By using solar panels and using ‘clean solar energy’, electrity
costs throughout operations such as farming, manufacturing processes, and office duties
will be heavily reduced, and energy emissions will go down significantly. By also
implementing this, the ‘carbon tax’ (Carbon Tax 2012), will decrease as carbon emissions
will be reduced.
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Researcher (Operations) Reference List
-Australia Solar Quotes, 213, How solar panels work, sited on the 14th/May/2013,
<http://www.australiansolarquotes.com.au/buyers-guide/the-basics-on-solar/how-solar-panels-
work/>
-Bartlett, J 2012, Bega Cheese Cleaner Future, Bega District News, Sited
13th/May/2013<http://www.begadistrictnews.com.au/story/176726/bega-cheeses-cleaner-
future/>
-Bega Cheese, 2013, Sustainability- Action Plan, sited on the 13th/May/2013,
<http://www.begacheese.com.au/WebImages/Sustainability/APCActionPlan290612.pdf>
-Bega Cheese, 2012, Bega Chese Limited, Annual Report, sited on the 13th/May/2013,
<http://www.begacheese.com.au/docs/Annual_Report_2012.pdf>
-Berry, P 2007, Dairy, Agriculture Commonities, Vol. 14, No. 3, 2007: 449-452.
-Boyle, G 2008, The way forward: Greenhouse Gas Highlights, TResearch, Vol3 pg 1-26, New York,
America
-Carbon Tax, 2011, sited on the 15th/may/2013 < http://www.carbontax.net.au/>
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-C. A. Rotz, F. Montes, D. S. Chianese, 2010. The carbon footprint of dairy production systems
through partial life cycle assessment, Journal of Dairy science, Vol 93, pg 1266-1268, American Dairy
Science Association, America
- Dairy Sustainability Initiative, 2013, Case Study, sited on the 13th/May/3013, <http://www.dairy-
sustainability-initiative.org/Public/ListSet.php?ID=230&parentID=109
-Department of Environment and Primary Industries, Victoria, Australia, 2011, sited on the
12th/May/2013, <http://www.dpi.vic.gov.au/agriculture/dairy/emissions-in-dairy>
-Goche, K, 2012, Food energy savings to reduce carbon footprint, Abc,
http://www.abc.net.au/rural/content/2012/s3532497.htm, sited on the 14th/May/2013
-Murry Goulburn Co-operative, 2013, Retail brands, Sited on the 14th/May/2013,
<http://www.mgc.com.au/index.php/our-products/retail-brands/>
-Minato, K. Kouda, Y. Yamakawa, M. Hara, S. Tamura, T. Osada, T. (2013), Determination of GHG and
ammonia emissions from stored dairy cattle slurry by using a floating dynamic chamber. Animal
Science Journal, 84: 165–177, Japan
-Silverman, J 2013, Do cows pollute as much as cows?, How Stuff Works, sited on the 14th/May/2013,
http://science.howstuffworks.com/zoology/mammals/methane-cow.htm
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-Tigerlight Electricity,2013, Case Studies-Bega Cheese NSW, sited on the
14th/May/2013<http://www.tigerlight.com.au/case-studies/bega-cheese-bega-nsw/>,
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7.0 Corporate Social Responsibility
WHAT IS CORPORATE SOCIAL RESPONSIBLE TO BEGA
Every corporation big and small has a corporate social responsibility to reduce their
greenhouse gases for the greater good of the planet. “Corporate Social Responsibility (CSR)
is concerned with treating stakeholders of the firm ethically or in a socially responsible
manner”, which will ultimately protect and promote your brand positive light to the
stakeholders and community (Hopkins 2006, p299). Bega has a huge CSR to the community
of Bega which relies heavily on the prosperity of the cheese manufacturer providing
manufacturing jobs, and purchasing the local dairy farmers produce. Bega understands it
has CSR to the welfare therefore branding itself as part of the community, and successful
gained the trust and respect of the town by investing heavily in the area. The introduction
of the carbon tax on greenhouse gases has created a greater emphasis on CSR for Bega
relating to raw material, production, effects to the Bega community and the world as a
whole. Bega has launched many projects that balance the welfare of the employees, and
the dairy farmers that already had significant financial pressure within the industry. An
article published in the Daily Telegraph “estimates energy costs for NSW farmers will be
$7691 higher under the carbon tax” (Lewis 2011).
WHAT PROBLEMS REQUIRE BEGA TO BE CORPORATE SOCIALLY RESPONSIBLE
The major problems associated with best practice cheese production are how do you lower
your electricity, and get the famers to change age old processes. Bega has planned
installation of “one million dollars worth of refrigeration and lighting upgrades” as outline
the media release below (Gocher 2012). Bega needs to reinforce their emissions reductions
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to compete with companies like Kraft in pricing and CSR. Kraft have released similar media
releases to promote the “52 per cent decline in energy consumption” by “investments in
stat-of-the-art equipment” (Victoria Government 2011, pp1-2). Bega working with the
government has made huge inroads into efficient energy consumption, and published
“comprehensive on farm risk assessment to create a data base containing the
environmental foot print for the regions dairy industry” (Ken Garner 2006). Bega need to
continually promote best farming practice to ensure that “adaptation practices, which are
readily available to producers but not adopted by all” will be incorporated into local dairy
farms to reduce the problems related to farming emissions (Mukherjee, Bravo-Ureta & De
Vries 2013, p124). By using print media they have publicise “the $850,000 grant will allow
Bega Cheese to provide essential information on the Carbon Farming Initiative to 480 dairy
farmers” in the local area” (Bega District News 3 May 2013). Every industry is trying to
prove how environmental aware like Bega, which will provide consumer and stakeholder
confidence for the future.
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RECOMMENDATIONS FOR BEGA CHEESE’S CORPORATE SOCIAL RESPONSIBLITY
The recommendation is that Bega Cheese should firstly continue to use “print
advertisements to promote CSR actions to stakeholders, including the wider society, as it is
through communication that the association between corporations and society is
established” (Farache & Perks 2010, p163). Secondly continued alliance with farmers,
researchers, stakeholder and government to ensure improvements to the overall process
such as “soil chemical analysis” to understand the process, and reduce carbon emissions (Liu
& Haynes 2012, p134). Finally Bega Cheese should continue to reduce emissions related to
manufacturing, and refuse to purchase products from farmers who make no attempt to
reduce their carbon footprint or seek assistance.
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Researcher (Corporate Social Responsibility) References
Bega Cheese 2006, ‘Final Report – Bega Cheese EMS Pilot Program, ending April 2006,
<http://www.daff.gov.au/__data/.../bega-cheese-cooperative-final-report.doc>
Bega District News 2013, ‘Tasty Bonus for Bega Cheese’, 3 May, viewed 15 May 2013,
<http://www.begadistrictnews.com.au/story/1475855/tasty-bonus-for-bega-cheese/>
Farache, F & Perks, KJ 2010, ‘CSR advertisements: a legitimacy too?’, Journal of Marketing Communications, Volume 16,
Issue 3, pp163-181
Gocher, K 2012, ‘Food energy savings to reduce carbon footprint’, ABC, 25 June, viewed 16 May 2013,
<http://www.abc.net.au/rural/content/2012/s3532497.htm>
Hopkins , M 2006, ‘What is corporate social responsibility all about?’, Journal of Public Affairs, Volume 6, Issue 3, pp 298-
306
Invest Victoria 2011, ‘Investing in Victoria’s Food Processing Industry For Innovation and New Market Access’, Invest
Victoria, State Government Victoria, Australia, viewed 15 May 2013, <http://www.invest.vic.gov.au/Assets/1567/1/Kraft-
Foods-Australia-201109-WEB.pdf>
Lewis, S 2011, ‘Carbon tax will milk dairy farmers’, The Daily Telegraph, 8 August, viewed 15th May 2013,
<http://www.dailytelegraph.com.au/carbon-tax-will-milk-dairies/story-e6freuy9-1226110437341>
Lui, YY and Haynes, RJ 2011, ‘Influence of Land Applications of dairy factory effluent on soil nutrient status and the size,
activity, composition and catabolic capability of the soil microbial community’, Applied Soil Ecology, Volume 48, Issue 2,
pp133-141
Mukherjce, D, Bravo-Ureat, BE & De Vires, A 2012, ‘Dairy productivity and climate conditions: econometric evidence from
south eastern United States’, The Australian Journal of Agricultural and Resource Economics, Volume 57, Issue 1, pp123-
140
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8.0 Overall Recommendation
Although is a successful company but like every other company it has problems that haven’t been
addressed. Bega cheese has internal conflicts, where shareholders who are also their suppliers reject
the proposal of renewing their manufacturing mechanism to reduce carbon emission from farms
saying it will cost the suppliers a lot of money to initiate in the process.
With the help of the Dunker diagram some solutions arose, Bega cheese should consider the
prospect of cutting down the number of their suppliers and reduce the powers of each supplier, they
should also create a carbon inventory account to record their carbon emissions for each stage of
production (Jemina 2010).
Bega cheese’s CSR has been working hard to reduce their carbon foot print, Bega has been working
with government and with the $850,000 grant Bega cheese is planning on sharing their information
to other dairy farmers. (Bega District News 2013) Bega took another step forward by using print media
to promote CSR actions to its shareholders and the society. (Farache & Perks 2010).
Electricity is one of the major problems Bega cheese is facing, manufacturing process areas on two
Bega sites use efficient lighting although this is a good step forwards, Bega could use solar panels
across all their five sites and they dairy farmers to install them too. By using these solar panels across
their operation area and implantation carbon tax this will lower Bega cheese electricity bills and
reduce carbon emissions. Replacing their exiting fridges with ammonia-cooled refrigeration,
“ammonia is an environmentally compatible refrigerant because it has an ozone depletion potential
(ODP) of zero and a global warming potential (GWP) of Zero” (ammonia refrigeration, n.d)
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9.0 Conclusion
In conclusion although Bega cheese has been hard working on reducing their carbon emissions
through their CSR and their daily operations it still has a long way to go and we felt that that they
still have room for improvement especially on operations and management of their stakeholders,
Bega cheese inclusion in the top 500 greenhouse polluters deduces that they have to pay $23 per
tonne of carbon emissions. Bega cheese has to keep pressing hard to make their brand
environmentally friendly so they do not lose their market share.
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Team Leader (B) References
AAP Finance News Wire, 2013 “FED: Profile of Bega Cheese”, Australian Associated Press Pty
Limited, 21 Feb, viewed on 18 May 2013, < http://0-
search.proquest.com.library.vu.edu.au/docview/1289260029/fulltext?accountid=14844>
Ammonia refrigeration n.d, osha, Viewed on 19 May 2013,
http://www.osha.gov/SLTC/etools/ammonia_refrigeration/credits.html
Bega, 2010, the great Australian cheese company viewed 18 May 2013,
http://www.begacheese.com.au/
Bega District News 2013, ‘Tasty Bonus for Bega Cheese’, 3 May, viewed 15 May 2013,
<http://www.begadistrictnews.com.au/story/1475855/tasty-bonus-for-bega-cheese/>
Farache, F & Perks, KJ 2010, ‘CSR advertisements: a legitimacy too?’, Journal of Marketing
Communications, Volume 16, Issue 3, pp163-181
Jimena, J 2010, ‘Managing Your Carbon Footprint’, Canadian Mining Journal, Vol 131, Iss 7, pp. 10.
Bega District News 2013, ‘Tasty Bonus for Bega Cheese’, 3 May, viewed 19 May 2013,
<http://www.begadistrictnews.com.au/story/1475855/tasty-bonus-for-bega-cheese/>
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10.0 Appendices
10.1 Reference List (Whole)
AAP Finance News Wire, 2013 “FED: Profile of Bega Cheese”, Australian Associated Press Pty
Limited, 21 Feb, viewed on 18 May 2013, < http://0-
search.proquest.com.library.vu.edu.au/docview/1289260029/fulltext?accountid=14844>
Ammonia refrigeration n.d, osha, Viewed on 19 May 2013,
http://www.osha.gov/SLTC/etools/ammonia_refrigeration/credits.html
Anonymous 2006, ‘Business and the Environment with ISO 14000 Updates’, Corporate
Governance and Climate Change, Vol 17, Iss 7, pp. 1-5.
Australia’s Greenhouse gas emissions, 2009, viewed 14th May, 2013
< http://www.carbonneutral.com.au/climate-change/australian-emissions.html>
America's Share of the Climate Crisis Greenpeace report on historic emissions shows why America is morally obligated to lead global response to global warming, 2009, viewed 14th May, 2013
<http://www.greenpeace.org/usa/en/news-and-blogs/news/america-s-share-climate-crisis/>
Australian Diary Industry Council Inc. 2012, Dairy Industry Sustainability Framework Final,
DairyAustralia, viewed 17 May2013.
<http://www.dairyaustralia.com.au/~/media/Documents/Industry%20overview/Sustainabili
ty/Dairy%20Industry%20Sustainability%20Framework_Final%20Dec%202012.PDF>
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Australia Solar Quotes, 213, How solar panels work, sited on the 14th/May/2013,
<http://www.australiansolarquotes.com.au/buyers-guide/the-basics-on-solar/how-solar-
panels-work/>
Bartlett, J 2012, Bega Cheese Cleaner Future, Bega District News, Sited
13th/May/2013<http://www.begadistrictnews.com.au/story/176726/bega-cheeses-
cleaner-future/>
Bega Cheese, 2012, Bega Chese Limited, Annual Report, sited on the 13th/May/2013,
<http://www.begacheese.com.au/docs/Annual_Report_2012.pdf>
Bega Cheese, 2013, Sustainability- Action Plan, sited on the 13th/May/2013, <http://www.begacheese.com.au/WebImages/Sustainability/APCActionPlan290612.pdf> Bega Cheese 2006, ‘Final Report – Bega Cheese EMS Pilot Program, ending April 2006,
<http://www.daff.gov.au/__data/.../bega-cheese-cooperative-final-report.doc>
Bega, 2010, the great Australian cheese company viewed 18 May 2013,
http://www.begacheese.com.au/
Berry, P 2007, Dairy, Agriculture Commodities, Vol. 14, No. 3, 2007: 449-452.
BioCycle 2011, Australia Passes Carbon Tax, BioCycle, 52 Issue 11, p6-6
Boyle, G 2008, The way forward: Greenhouse Gas Highlights, TResearch, Vol3 pg 1-26, New York, America REFERENCE LIST: C. A. Rotz, F. Montes, D. S. Chianese, 2010. The carbon footprint of dairy production systems through partial life cycle assessment, Journal of Dairy science, Vol 93, pg 1266-1268, American Dairy Science Association, America
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Callum Clayton-Dixon 2012, Mining: debate over true impact of carbon tax on mines, Crickey: Independent Media, Independent Mines, viewed 15 May 2013, < http://www.crikey.com.au/2012/05/29/mining-debate-over-true-impact-of-carbon-tax-on-mines/> Carbon Tax, 2011, sited on the 15th/may/2013 < http://www.carbontax.net.au/>
CPA Australia 2011, Summary of the Australian Government’s Climate Change Plan, CPA Australia, viewed 15 May 2013, < http://www.cpaaustralia.com.au/cps/rde/xbcr/cpa-site/Summary-of-australian-governments-climate-change-plan.pdf>
Dairy Sustainability Initiative, 2013, Case Study, sited on the 13th/May/3013,
<http://www.dairy-sustainability-initiative.org/Public/ListSet.php?ID=230&parentID=109
-Department of Environment and Primary Industries, Victoria, Australia, 2011, sited on the
12th/May/2013, <http://www.dpi.vic.gov.au/agriculture/dairy/emissions-in-dairy>
Exploring climate change, nd, viewed 14th May, 2013
<http://www.educationscotland.gov.uk/exploringclie/emissionsspmatechange/respons>
Farache, F & Perks, KJ 2010, ‘CSR advertisements: a legitimacy too?’, Journal of Marketing
Communications, Volume 16, Issue 3, pp163-181.
Finkbeiner, M. (2009) 'Carbon Footprinting – Opportunities and Threats', The International
Journal of Life Cycle Assessment, No 14,pp 91–94.
Fogler, H S and LeBlanc, S (2008), Strategies for Creative Problem Solving, Pearson
Education, Upper Saddle River, NJ.
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Goche, K, 2012, Food energy savings to reduce carbon footprint, Abc,
http://www.abc.net.au/rural/content/2012/s3532497.htm, sited on the 14th/May/2013
Hertwich, E. and G. Peters (2009) Carbon Footprint of Nations: A Global, Trade-Linked
Analysis.Environmental Science & Technology.
Hopkins , M 2006, ‘What is corporate social responsibility all about?’, Journal of Public
Affairs, Volume 6, Issue 3, pp 298-306
Invest Victoria 2011, ‘Investing in Victoria’s Food Processing Industry For Innovation and
New Market Access’, Invest Victoria, State Government Victoria, Australia, viewed 15 May
2013, <http://www.invest.vic.gov.au/Assets/1567/1/Kraft-Foods-Australia-201109-
WEB.pdf>
Jimena, J 2010, ‘Managing Your Carbon Footprint’, Canadian Mining Journal, Vol 131, Iss 7,
pp. 10.
Kraft Foods 2012, creating a More Delicious World, Kraft Foods Company, viewed 13 May
2013,
<http://www.kraftfoodscompany.com/SiteCollectionDocuments/pdf/kraftfoods_responsibil
ity_report.pdf>
Lewis, S 2011, ‘Carbon tax will milk dairy farmers’, The Daily Telegraph, 8 August, viewed
15th May 2013, <http://www.dailytelegraph.com.au/carbon-tax-will-milk-dairies/story-
e6freuy9-1226110437341>
Lui, YY and Haynes, RJ 2011, ‘Influence of Land Applications of dairy factory effluent on soil
nutrient status and the size, activity, composition and catabolic capability of the soil
microbial community’, Applied Soil Ecology, Volume 48, Issue 2, pp133-141
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Minato, K. Kouda, Y. Yamakawa, M. Hara, S. Tamura, T. Osada, T. (2013), Determination of
GHG and ammonia emissions from stored dairy cattle slurry by using a floating dynamic
chamber. Animal Science Journal, 84: 165–177, Japan
Mukherjce, D, Bravo-Ureat, BE & De Vires, A 2012, ‘Dairy productivity and climate
conditions: econometric evidence from south eastern United States’, The Australian Journal
of Agricultural and Resource Economics, Volume 57, Issue 1, pp123-140.
Murry Goulburn Co-operative, 2013, Retail brands, Sited on the 14th/May/2013,
<http://www.mgc.com.au/index.php/our-products/retail-brands/>
Robert A. G. & Minow, N 2011, Corporate governance, 5th edn, Wiley, United States.
Schermerhorn, J, Campling, J, Poole, D, & Wiesner, R 2004, Management: An Asia-Pacific
Perspective, 1st edn, John Wiley & Sons, Australia.
Silverman, J 2013, Do cows pollute as much as cows?, How Stuff Works, sited on the 14th/May/2013, http://science.howstuffworks.com/zoology/mammals/methane-cow.htm The International Institute for Strategic Studies 2011, Australia’s Carbon Tax Drama, The International Institute for Strategic Studies, vol. 17, comment 35.
Tigerlight Electricity,2013, Case Studies-Bega Cheese NSW, sited on the
14th/May/2013<http://www.tigerlight.com.au/case-studies/bega-cheese-bega-nsw/>,
Weber, C.L. and H.S. Matthews (2008) 'Quantifying the Global and Distributional Aspects of
American Household Carbon Footprint', Ecological Economics,no 66, pp 379–391.
Weidema, B.P., M. Thrane, P. Christensen, J. Schmidt and S. Løkke (2008) Carbon Footprint.
A Catalyst for Life Cycle Assessment? Journal of Industrial Ecology, no 12,pp 3–6.
Williams, C & McWilliams, A 2010, MGMT, 1st Asia Pacific edn, Cengage Learning, Australia
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10.2 Meetings Agenda (Leader A) Vilashini
Facilitator : Vilashini & Ross Meeting Number: 1
Meeting date: 6/05/2013 Meeting Start Time: 10am
Meeting end time: 12pm
I) Meeting objectives:
Choose what company to research
Choose Team Leader (A)
Choose Team Leader (B)
Choose each researcher
II) Attendees
Vilashini
Ross
Shane
Sarah
Lucy
Lina
IV) Actions Assignment Person Responsible Due Date
Go home and look at the companies and choose which All Next team Meeting
one to research.
Have a read of the assessment task and what is required. All
Next team meeting
V) Next Meeting
Meeting Date 9/05/2013
Meeting Starting Time 6:00pm
Meeting and End Time -
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Facilitator : Vilashini & Ross Meeting Number: 2
Meeting date: 9/05/2013 Meeting Start Time: 6:00pm
Meeting end time: 8:00pm
I) Meeting objectives:
Make a definitive decision on what company to research
Make a definitive decision on group roles
(Leader and researcher)
Do a general mind map on Bega Cheese and their emissions
Brainstorm the general issues within Bega cheese
II) Attendees
Vilashini
Ross
Shane
Sarah
Lucy
Lina
IV) Actions Assignment Person Responsible Due Date
Complete mind map on each individual response Each researcher 12/05/2013
State the major issues within each response Each researcher 12/05/2013
State the major problem for each response (Duncker Diagram) Each Researcher
V) Next Meeting
Meeting Date 12/05/2013
Meeting Starting Time 2:00pm
Meeting and End Time 4:00pm
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Facilitator : Vilashini & Ross Meeting Number: 3
Meeting date: 12/05/2013 Meeting Start Time: 2:00pm
Meeting end time: 4:00pm
I) Meeting objectives:
Define the Problem with each response
Start on KT-SA as a group for each response as a group
Start on Duncker diagram for each response as a group
Allocate roles for what to do in presentation
Start writing up PowerPoint Slides
1. Brainstorm
2. Mind map
3. KT-SA
4. Duncker Diagram
II) Attendees
Vilashini
Ross
Shane
Sarah
Lucy
IV) Actions Assignment Person Responsible Due Date
Make sure PowerPoint slides on Brainstorm, Mind map, KT-SA Researchers next meeting
and Duncker Diagram are done. (for each researcher)
Leaders start to get background information on Bega and Leader
carbon emissions as a whole
V) Next Meeting
Meeting Date 13/05/2013
Meeting Starting Time 10:00am
Meeting and End Time 12:00pm
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Facilitator :
Vilashini & Ross
Meeting Number:
4
Meeting date: 13/05/2013 Meeting Start Time: 10:00am
Meeting end time: 12:00pm,
I) Meeting objectives:
Discuss each other’s PowerPoint slides
Make sure everyone is satisfied with Slides
Make a start on individual research parts (essay component)
Have a discussion on who will present each slide
Put together the Slides
Make sure everyone has adequate references for essay
Discuss any problems with individual components
Complete the slides and put them on PowerPoint.
II) Attendees
Vilashini
Ross
Shane
Sarah
Lucy
IV) Actions Assignment Person Responsible Due Date
Each individual component to be completed roughly. All next meeting
Everyone practices their part for the oral presentation All next meeting
V) Next Meeting
Meeting Date 12/05/2013
Meeting Starting Time 2:00pm
Meeting and End Time 4:00pm
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Facilitator : Vilashini & Ross Meeting Number: 5
Meeting date: Meeting Start Time: 2:00pm
Meeting end time:
I) Meeting objectives:
Have a brief run through of PowerPoint slides for oral
Have a look at references and make sure appropriate.
Finish the whole Problem Solving Process -Brainstorm -mind map -KT-SA -Duncker diagram
Make sure Problem Solving Process addresses the three responses.
Everyone to look at Problem Solving Items and make sure satisfied with them as a group.
Make sure everyone is on track with individual essay component.
II) Attendees
Vilashini
Ross
Shane
Sarah
Lucy
IV) Actions Assignment Person Responsible Due Date
Complete mind map on each individual response Each researcher Next meeting
State the major issues within each response Each researcher Next meeting
Start Collation of assignment Vilashini -
V) Next Meeting
Meeting Date 12/05/2013
Meeting Starting Time 2:00pm
Meeting and End Time 4:00pm
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Facilitator : Vilashini & Ross Meeting Number: 6
Meeting date: 19/05/2013 Meeting Start Time: 2:00pm
Meeting end time: 4:00pm
I) Meeting objectives:
Place finishing touches on PowerPoint slides
Look at final assignment as a whole and see if satisfied with the format.
Have a run through of oral presentation.
II) attendees
Vilashini
Ross
Shane
Sarah
Lucy
IV) Actions Assignment Person Responsible Due Date
Print Off Assignment Vilashini 20/05/2013
Put Assignment through Turn it in Vilashini 20/05/2013
Put PowerPoint slides together. Ross 20/05/2013
V) Next Meeting
Meeting Date 20/05/2013
Meeting Starting Time 9:00am
Meeting and End Time -
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10.3 Meeting Minutes (Team Leader B)
Meeting 1
DATE&TME 6/05/2013 14:00pm
Location P227B
Attenders Lucy
Lina
Sarah
Shane
Vil
Ross
Absent none
Discussed Bega cheese
Brainstorm
Mindmap
Agreed Actions have 7 references before the next meeting
Next Meeting 12/05/2013
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Meeting 2
12/05/2013
P227B
Lucy
Lina
Sarah
Shane
Vil
Ross
none
worked out the Powerpoint slides
defined the problems associated with each response
14/05/2013
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10.4 PowerPoint Slides
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10.5 Turnitin Originality Report
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