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Mercury Inc and AusMilk Ltd Assignment Explained

Mercury Inc and AusMilk Ltd Assignment

You and I know that this assignment belongs to the management accounting subject. Let me not start off by explaining what management accounting is, why this subject is important and stuff. That is not important, right? You are here because you must be either enrolled in this course or want to learn to something.

There are a few problems that you need to answer in this assignment which I have explained below.


Very well, then, let us begin our journey.

What opportunities are there in the Chinese market?

After the United States, guess who buys the most food and beverages from other countries? That’s absolutely right, China! 10 points to Gryffindor.

China is regarded as the second largest buyer of imported food and beverages. The market is more than A$130 billion. That’s not me saying, this is given on the website of Australian Trade and Investment Commission. Yes, you can trust this information. I think it is highly unlikely that the government will spread false information among the masses unless they are planning to take over the world.

Now guess who is the 6th largest supplier of food in the world? You are right, again. It is Australia! Boy, you are so smart. Are you a fellow of the great Albert Einstein?


As per the records of 2016, the total export value of Australia’s food export was A$5.3 billion. This makes our share roughly a little over 4% in the Chinese market. And do you know that the export of processed food in Australia increased by 40% from 2015 to 2016?

Why Australian products are being accepted in the Chinese market?

The people in China also exhibit consumer behaviour like every consumer in the market. They are no different. Their spending and consumption of various products vary by region, age, and income.

But the Chinese consumers are more attracted to and are more likely to buy the products that –

  • Are safe to eat
  • Are of high quality
  • Have superior taste
  • Have excellent nutritional value
  • Helps in improving the functionality of the human body
  • Are packed with care and quality
  • Are fresh and can go long way in storage
  • Are conveniently available

The Australian brands are mostly promoted in the Chinese market by word of mouth.


In major cities, this word promotion holds a lot of importance. Such announcements can help others identify the products that you found useful and motivate others as well to buy it. The people who buy packaged food in such major cities are more likely to choose a brand that is established and is known to them. Such brands have to be available at convenience.

This problem is not faced in regional areas. The people there are more price sensitive than they are brand conscious.

What all can you sell in the Chinese market?

Australia holds a good reputation among Chinese consumers. Australian products are regarded by them as natural and manufactured under highest of the quality standards. This feature is also promoted in sales and marketing campaigns.

Moreover, the Chinese market has increased its investment in cold chain logistics. This is helping in meeting the high demand of consumers for fresh produces. China’s E-Commerce Research Centre says that because of the cold chain logistics, the online sales of processed food is growing annually at 80%.

The demand for various products includes a lot of things. Let me get my scroll containing the list. Here, I found. Step back, please.


Let me read out the top ones or else we will be sitting here for the entire 2019.

  • Milk powder for infants (the focus of this assignment)
  • Adult milk powder
  • Pasteurised milk
  • Cheese
  • Saltwater shellfish like oysters, crabs, lobsters, etc.
  • Fresh fruits like cherries, mangoes, etc.
  • Breakfast cereals like oats
  • Beef (chilled and frozen)
  • Processed food
  • Baby food
  • Wine
  • Craft beer
  • Natural fruit juice

The new trends also include the growth of coffee consumption and bakery products. This will give Australia to give them raw dairy material.

What is power distance and why is it needed to be taken into account here?

We all have studied that the universe always wants to remain in one state that it is comfortable in. So is the case with the humans as well, agree? We all want that the power in the society is not concentrated on one group only but is distributed equally.

There are three sections of the society, always. The high, middle and low ranks. The high rank individuals always want the power to belong to them and the low rank individuals always want the power to be distributed.

Power distance is the extent to which these low rank individuals accept that the power is distributed unequally.

In this assignment, power distance is applied because the organisation culture varies from organisation to organisation and country to country.

The managers at China South Dairy Co might be accustomed to treat their boss or manager as a friend without too much formal conversation. While at Mercury Inc, Dierdre might be used to keeping formal professionalism in the way between her and her boss, not to talk directly to the boss whenever she wants or anything like that. Thus, when the managers of China South Dairy Co will become a member of the team she is supervising, she will expect them to behave as she behaves with her boss. While on the other hand, the managers will expect Dierdre to behave like their boss.

The interaction will be heavily impacted by this power distance.

Oh dear, will you look at the time already? I don’t know for how long was I speaking. Did you get bored? I hope not.


I think I just heard something. There are dark forces lurking in the dark waiting to devour you. Quick, let me help you with this assignment or any other management accounting assignment you got before the panic monster grabs you.

You can either talk to me for a live one on one session or send me the assignment details through this form. Or you can simply drop your query in the comments below.

Author: Julia Martin

Julia Martin has been a teacher, private academic expert and has held the position of an accounting manager at a firm in Melbourne. She joined My Assignment Services as an accounting assignment writing expert and have grown since then to become one of the best accounting assignment experts in the assignment help industry. She has worked with students of several universities and has even aided students from Singapore, the United Kingdom, etc. with her expert consultation. She writes blogs for students to help them understand the accounting assignments’ concepts, principles and theories.

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