Feed Green Ethiopia Exports: Stabilizing Product Quality and Price
(6 pages of text)
In mid-2015, the managing director of Feed Green Ethiopia Exports PLC (FGE), one of Ethiopia's leading export companies, faced a pivotal decision. FGE specialized in herbs and spices, and the price of one of FGE's major products, paprika, had skyrocketed in the past six months. As a result, FGE had sustained a massive loss. This problem had taken a toll on FGE's profitability, and the company's future was on the line. The managing director needed to mitigate this problem and prevent it from occurring again. He saw three alternatives: FGE could maintain the status quo, operate its own farm in one of two locations, or purchase its spices directly from local farmers. Maintaining the price and quality of the products and providing excellent customer service were the company's main priorities, regardless of which option it chose.
This case is intended for advanced undergraduate course on operations or strategy. It teaches students how to effectively make critical business expansion decisions using qualitative and quantitative analyses in a complex African context. By working through the case and assignment questions, students will learn to do the following:
- Describe the export environment in a developing country.
- Explain the implications of having government support in a tumultuous business environment.
- Evaluate strategic alternatives based on long-term business goals.
- Assess a business's strengths and weaknesses, and recommend alternatives based on this assessment.
Agriculture, Forestry, Fishing and Hunting
$4.25 CAD / $4.25 USD Printed Copy
$3.75 CAD / $3.75 USD Permissions
$3.75 CAD / $3.75 USD Digital Download