Cervus Equipment Corporation: Harvesting a New Future
(10 pages of text)
By 2015, Cervus Equipment Corporation, based in Calgary, Alberta, has grown its business substantially through regional acquisitions and strong organic growth. The company was founded in the 1990s to manage and consolidate farm equipment dealerships in western Canada but, in partnership with original equipment manufacturers, has branched into the construction equipment and long haul trucking manufacturing industries and has moved into New Zealand and Australia. The board of directors is now looking for the new chief executive officer to chart an innovative growth strategy that will see the company triple in size over the next five years. The market fundamentals to support this growth are quite strong and realistic; however, the growth opportunities in the company’s traditional Canadian markets are not sufficient and its customers’ requirements are being driven to new levels of complexity due to a technology revolution happening within the industry. At the same time, its experience overseas has ultimately provided an opportunity to develop a greater understanding of the differences in international markets and new cultures. Management needs to come up with a growth plan that puts the company into non-traditional markets or new industries while addressing the changes happening in the industry.
This case is designed for use in a strategic management course focusing on managing organizational change, managing innovation or globalization of a regional business to illustrate:
- The nuances and challenges associated with successfully growing a business via acquisitions.
- Challenges associated with early state international growth.
- Barriers to executing a decentralized management philosophy within a growth context.
- Related challenges associated with an industry that is very vibrant, yet in the midst of a revolutionary change due to technological evolution.
- Internal challenges that usually accompany a strong acquisition-based growth strategy.
Canada; New Zealand; Australia, Large, 2013
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