Porter five forces:

Bargaining power of supplier of milk (SALL)

The prolonged long dry-spell resulted into lack for animal feeds and
water, thus affecting production in much of Ugandas milk producing
corridors.
Ugandas main milk producing corridors, indicate that production from the
area continues to dwindle.

Farmers now have the bargaining power due to the fact that they are able to
sell to the highest bidder. Hence the scarcity of milk causes the increase in price
of milk by SALL in the market hence strengthen the bargaining power.

Bargaining power of

of buyer

The price increase has been exacerbated by the commoditys scarcity across
milk-producing corridors, as well as an increase in demand from large
processors, and the increase in the cost of doing business, especially for
processing firms.
Hence the bargaining power of buyer is minimized due to scarcity of milk.
Threat of new Entrants:
The increase in the cost of doing business minimizes the chances of new
entrants. Hence Innovating into new product and supply processes may
cause threat of new investment.
competitiveness improves when other non-milk benefits were considered,
Results from cost/benefit analysis showed that losses from collecting points
were mainly due to poor cost management and low throughput. Formal sector
milk processors operated below capacity (30% capacity utilization, according
to Kasirye, 2003) and with high cost of operations. Examination of a large
UHT processor in southwest cooridor also showed that the large losses were
due to operation at low capacity and poor cost management.
Threat of substitutes.
Quality is the main driver of demand for imports as these are perceived to be
of higher quality to local products. there are a variety of local product
substitutes for all milk product imports.
Therefore, the degree to which demand for imported dairy products should
threat for substitute.
Rivalry

 high value specialty dairy products are increasingly being produced by a

number of micro-processors and small-scale/cottage milk processors all
regions of the country.
The key products by the cottage industry are yoghurt, ice cream, ghee,
sour butter, cheese and cream, with yoghurt and ice cream being the
most commonly produced, and some renowned brands have emerged.
OBJECTIVE OF THE STUDY:

The objective of financial statement is to know information about the financial

position, performance & cash flows of an enterprise with the help of analytical tools.

To know the Market Position AMUL by taking Market Value Ratios

To know the tradeoff between Liquidity & Profitability.