Cows are stressed

Change in climate in southern part of US has stressed out cows. Cows are producing less milk than usual. The humidity, hot nights, and hot weather have made southeast part of US to be the least friendly place in the country for dairy cows to live. By using detailed climate data, scientists have discovered that, dairy cows suffer more in Tillamook and Oregon which are humid and does not have any huge change in temperature at night time compared with Arizona which is more humid and dry. Dairy cows in Tillamook and Oregon produce less milk than dairy cows in Arizona.

Less productive dairy cows in southern US have brought daily loss to firms about 50%. The impacts also felt by other barnyard animals such as pigs, and impacts on mortality rate that rise temperature might have on cows. In 2080, it is predicted that there will be 6% drop in Holstein milk production in US. So, what are the suitable solutions for decline in milk production caused by climate change? As it is seen from the case, southern US is not a suitable place for dairy cows to live and to be productive.

Therefore, firms can do cost evaluation and effectiveness of methods for keeping cows cool by picking up dairy cows and truck them elsewhere so they can be more productive. Advanced in technology also will be able to solve the problem by implementing new technology that might be able to double milk production in the next 30 – 50 years. How does the news item illustrate the topic assigned for your presentation? The topic allocated for the presentation is evaluating a firm’s external and industry environment.

Based on the article, change in weather that has caused cows to be less productive can be seen as natural element of the PESTEL (Politic, Economic, Social culture, Technology, Environmental, Legal) analysis that every firm have. The impacts of climate change stimulate firms to set strategic group in order to create strategies and scenario planning to reduce the loss. Firms will be able to know future opportunities and threats for their business by analyzing Porter’s 5 forces which are new entrants, suppliers, buyers, substitute products, and rivalry among competitors.

What can be learnt from the event? How does this event (a news item) contribute to a better understanding of the topic assigned for your presentation? There are six elements of firm which is known as PESTEL analysis. Those elements will bring great impacts to firm’s performance. The article has given an example of change in environmental element that also enable firm to do some researches to solve the problems that occur. There are many things must be considered by firm in making new strategies to suffer from loss.

Firm must be able to analyze the impacts to other stakeholders including those who are included in Porter’s 5 forces (new entrants, buyer, supplier, substitute products, competitors). As it is explained in the lecture, to cope with a problem, firm needs to form strategic group to set new strategies and scenario planning in case the strategies are not well performed. The case of less productive cows also enable firm to implement the same ways in facing a problem. Firm also will be able to understand their opportunities and threats in the future and set long term plans for firm’s future. Can you predict the further development of the situation?

What might happen next? It is predicted that in 2080, there will be 6% decline in milk production because of bad weather in US. But, the rate of the decline will not be high because as in the future, many new technologies will be introduced and developed. Dairy cows may have been moved to other parts or places that enable them to be more productive and new technologies used by firms might enable them to double the milk production. So, in my opinion, although there will be small decline in milk production, but firms will be able to suffer from it and take a quick action to solve the problems supported with advanced technologies.

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