Clearfield Cheese Company Case: A Sequel The setting up of a subsidiary company to produce nondairy products such as White Wave company, including alternatives to cow milk, could be considered as a viable option. The firm would penetrate a new market with great potential. The market for healthier products are expanding and if Clearfield wants to continue with a profitable company they too must provide healthier options due to this current trend. The venture could also be risky since the subsidiary corporation would be in competition with the mother company as a result of a split in the market. In effect, a divide in the market would lead to a conflict of interest as the subsidiary company may have the potential to affect the sales and profit margin of Clearfield Cheese Company. The company will be in competition to a new market base and to new competitors. The market expansion to Central America and Mexico would require a substantial amount of investment as the Clearfield Cheese company would have to open a …show more content…
production plant in the area. The move to another unfamiliar market could pose a high risk for the enterprise. Despite this fact, the Central American and Mexican market could be a great opportunity for the corporation to grow as a multinational. With their expansion into overseas or foreign market places, they will have to deal with the import and export cost, or delays in shipping. They will also be dealing with a consumer base that does not know the product or trust them as a company. The simplest potential benefit to this is that they have already proven to be successful with their current product, has its risks but in order to continue to grow I believe that expansion into other large markets hold the least amount of risk.
An expansion of the product offerings as an alternative to the company would produce additional products such as ice cream, high-end cheese from sheep and goats as well as high-end based candy could assist in cementing the company’s position as the market leader. Despite the advantages that the new products could bring, the company would be required to make a significant investment to facilitate the production of multiple goods. Since the expansion does not guarantee growth, the corporation may incur a significant loss. If research is not systematically approached the company can lose; they must be careful to not use too much of their current product to produce the
byproduct. Based on the information provided I would suggest that the company carries out a conclusive research on the markets both locally and abroad. The market study should concentrate on the evolution of the tastes and preferences of the target market. The research on regulations and existing competitors globally would assist the corporation to gauge its chances before venturing into other markets. I would further recommend that the company does not invest immediately but rather carry out real expansion plans in phases. The implementation in phases provides the company with the opportunity to evaluate its performance on a smaller scale, facilitating realistic forecasting. It also reduces the magnitude of risks presented by the process of growth. The company should also have well-developed risk management strategies to ensure that the expansion plans do not affect its operations and the performance of already high components. References: Coyle, J. J., Novack, R. A., & Gibson, B. J. (2019). Transportation: A global supply chain perspective (9th ed.,pp.28-29). Mason, OH: Cengage
In order to right the ship that is America’s food industry, we need to recognize the monopolies in the U.S food industry. These massive food conglomerates must be broken up in order to create competition in the market. This will allow the completion to dictate the market. More companies means more competition, and when companies compete, the consumer wins.
A line extension or a new product line will require additional investment for product development and marketing activities.
The purpose of this case study is to explore the implications for expanding the products offered by Mountain Man Brewing Company (MMBC) from one product, Mountain Man Lager, to adding a Light version of the beer. This paper will evaluate the following:
Saroj (2001) supports the fact now a days factors that cause change to occur are unpredictable, Bega Cheese however appears to be in a continual state of change. Change is driven by forces which make a firm unique to able to achieve strategic goal of company. These forces can either be internal of external. External forces that have driven Bega Cheese to prompt change include social and political pressure is another force due to customers, suppliers’ needs wants to be unsteady, fore which, managers at Bega Cheese implement participative leadership (Rawat 2001). As Bega Cheese export cheese worldwide, therefore, many social and political concerns arises, however, Bega Cheese has valued and acknowledged high quality to be exported through applying legal conformity such as Halal accredited to Middle East countries. Moreover, it has gained competitive advantage to establish high value of its customers and employees as well as superior profits for itself (Micheal 1998).
And we will purchase capacities when plant utilisation above 90%. This will expand the business size and have a positive impact on economies of scale. Composed with High End and Size products transfer into Traditional and Low End, we have multiproduct in targeted segments. “Higher firm-level ability raises a firm 's productivity across all products, which induces a positive correlation to a firm’s intensive and extensive margin” (Bernard, Redding and Schott 2006). This means with an effective business strategy and management, businesses can boost sales of all products within the segment. With a larger product profile for Traditional and Low End, it works to generate larger market shares. Refer to Graph 4 and 5, Digby sold twice units of products than its core competitor-Baldwin by having Daze and Dixie in its Traditional segment, which drives its segment market share to double Baldwin’s. The boost in sales and market share prove the correct implication of the
Porcini’s Inc. is considering expanding to other regions. However, the expansion may ruin the quality of the products and services offered to its customers. Therefore, the big question is that, should the firm expand and risk losing its brand and quality of service in the market or should it remain at the current level of production and maintain the level quality of its products and services? This question seems to be easy to be answered but is technical, complex and it will affect the profitability of the firm.
1. Context: In early September’08 Giant Consumer Products, Inc. (GCP) realized that Frozen food division, which had been growing at 2.8% (compounded annual growth) rate since 2003 to 2007 and accounted for almost 33% of GCP’s overall business volume, is not doing well now. The sales as well revenue volume is around 3.9% behind the target. Most specifically marketing margin (key parameter for GCP business) was also under plan by 4.1%. GCP had been doing well in wall-street but performance of past couple of quarters has increased the worries of GCP i.e. whether GCP will able to maintain its profitable growth.
The Cheesecake Factory brings authenticity to many people around the world. It began from a 1940s newspaper recipe, that later turned into a dream. Accomplished by a woman and her family with desires to succeed in their business. At The Cheesecake Factory Incorporated majority of their employees say it’s a great workplace. It is known for it’s tasty cheesecakes and it’s enticing meals. The Cheesecake Factory is not just an amazing place to dine at for their pastry, but their restaurants cuisine is highly favored.
Tractors: From Then to Now “The farm implement industry has profoundly shaped both American agriculture and the national economy. Of all farm implements, the tractor has had the greatest impact on rural life” (Robert C. Williams, qtd. in Olmstead). To understand the history of the John Deere company, one must know its origin, development, and its impact on the farming community.
Diversification: Pursuing diversification on strategy to acquisitions concerning the purchasing, production, and marketing and distribution system.
Being the leader in its industry, the company has capitalized on the large market capital and is opening up to foreign countries where organic food is appreciated.
This will not only maximize the company’s operational expenses by concentrating only to a particular segment of the age bracket of consumers by providing them product lines that will suite their taste and demands it will also allow the company to set the trend as to what is the next big exciting thing this season. In this case, the company’s resources will be used properly and is expected to increase its market share continuously leaving the competitors far behind. (Starbucks,
A company must identify its strengths and weaknesses in order to develop growth. Downsizing products is more important than developing new products. A company must be able to identify where there weak markets are at. Times change and so do products. The products that are less profitable or simply aged are the ones that must be downsized in order to make way for a different, more innovative market. When developing growth strategies a company must use the product/market expansion grid. First the company has to figure out whether they can have better market penetration, second they must consider looking for market possibilities for current products. Third they must develop their products into innovative products that people can’t live without having. Lastly they need to be diverse with their company, therefore expanding and including different features to the company could draw more attention from different
One must look at the economic environment and how it will affect the launch of the product. One must look at:
Once the product is accepted the organisation would experience a high growth rate. For example, PAX Yogurt Company which originates on Mount St. Benedict, is a local company which developed seven different flavours of yogurt into the market, they are: almond, guava, passion fruit, pineapple, soursop, strawberry, natural (plain) and vanilla. The primary objective was to meet the customers’ needs with a good quality product at an affordable price in order to return high sales and profitability for the company. It is imperative at this stage, that particular attention should be placed on creating strategies for pricing, place or distribution and promotion so as to establish a market presence and create a suitable demand for the product. Pricing strategies include price skimming and price penetration. It is advisable at this stage to employ the price skimming strategy for example, pricing the product at the highest point possible. Prices can then be lowered when demand starts to