GOLDEN CIRCLE AN ECONOMIC CASE STUDY

Golden Circle An Economic Case Study

Golden Circle An Economic Case Study

Golden Circle

Golden Circle is an unlisted public company that primarily belongs to the Australian fruit and vegetables industry. It's owned by around 700 farmer shareholders, most of whom supply the company with their products. Golden Circle only manufactured pineapples when it was founded back in 1947, compared to around 500 different products now. The production type is a computerized inventory factory that uses labour workers as well. The process in general; the crops are grown, then picked, then transported to the factory. The factory then processes the foods, cans them, and labels them. The cans are then taken to different retail stores around Australia or exported overseas for use.

In general, it is easiest to select a product or service provided by a company whose stock is publicly traded. These firms are required to provide a minimum of information to the public. However, if you wish, you may choose a product that is produced by a privately-held company. Be aware that it may be much more difficult to obtain information about the product and the company.

Location

The main Golden Circle factory is situated at Northgate, and was founded back in 1947, soon after the end of World War 2. The land was available for sale for a cheap price from the government (the land had been used as an army barracks) and the Golden Circle founders bought 16.5 ha of land. Cheap land would have been a major plus in setting up the company, provided the location is suitable for all other criteria of a factory. Golden Circle have just purchased another 10 ha of cheap government property to grow crops on site for even fresher, faster processing, and therefore allowing more products to be made for the high demand of Australian consumers.

The factory is situated in the outskirts of a major city, Brisbane city, so labour force is plentiful, for a reasonably cheap price, especially for the conditions they work in. Likewise, the factory has no trouble receiving enough power from the city's power supplies. Transport is cheap and fast from Golden Circle to farmers, as the cargo can travel by truck and train, and the factory is close to the Brisbane Port, so it can export and import goods without too much expensive hassle. Similarly, the transport for labour is very accessible and cheap, with a train station on the backdoor of the factory. The company has no problems with sound or pollution as it's just far away enough from the city to run without disturbing residents in the city or suburbs. So, in summary, they have bought cheap land to save money, that avoids any legal debates to save further money, bought additional cheap land to save on transport for certain crops and to allow more products to be produces, and have ensured that their workforce won't suffer in numbers. In my opinion, economically they have chosen a very good location to found and ...