Olymel: Strategic Expansion in the Pork Industry
(5 pages of text)
The case highlights how global dynamics impact both regional economic development and the organizational growth of a market-leading pork producer with a promising yet uncertain future. A key Western Canadian pork production industry stakeholder was tasked with assessing existing environmental complexities as well as global supply and demand factors in an effort to address changing consumer preferences. After determining that global factors could either support or limit further industry investment, the aforementioned stakeholder had to evaluate company resources and firm risks to identify the qualitative and quantitative factors that would influence two specific expansion opportunities and the associated income projections within the local industry.
This case study is most appropriate for use in advanced undergraduate- or graduate-level courses in management accounting, agribusiness, business strategy, or entrepreneurship. It could also be used in capstone case courses that integrate multiple functional areas. Instructors are able to tailor the implementation of the case to the specific requirements of their courses. They may explore internal resource analysis, financial modelling, and external environmental risk analysis separately, or by integrating each perspective into an analysis of strategic decision making. The authors propose that instructors use this case study toward the end of the course, when the students are integrating multiple analysis tools to offer strategic recommendations. The case study is most effective when assigned to the students in advance.
This case study fosters learning by presenting a scenario in which students must adopt the perspective of a key industry decision maker and then incorporate financial analysis, environmental scanning, risk management, and resource planning in an effort to develop an appropriate company growth strategy. The use of strategic analysis tools is required, including Porter’s Five Forces; Political, Economic, Social, Technological, and Legal factors (PESTEL); the resource-based view (VRINE); enterprise risk mapping; and, income projections. After the completion of this case, students will be able to
- identify and interpret the business risks and opportunities within the global pork industry;
- identify and categorize the resources and capabilities of the focal firm;
- construct and analyze financial projections in light of two comparable growth scenarios;
- develop insights into how environmental and enterprise analyses can complement or hinder a financial analysis when making strategic decisions; and
- analyze appropriate qualitative and quantitative factors in order to offer strategic recommendations concerning the deployment of limited resources.
Agriculture, Forestry, Fishing and Hunting
Canada, Large, 2019
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