JMD Oils: Deciding on a Growth Strategy

內容大綱
The director of JMD Oils, an edible oils firm, is considering the strategic options to drive his company to the next level of sales and profitability. The business has been showing a steady performance, but he feels that it could improve substantially. To increase profits, the director could increase sales volumes or increase gross margins. An increase in volume could be achieved by increasing the geographical footprint, which would require setting up additional factories. Increasing the margins would require a shift from a dealer push strategy to a consumer pull strategy, which could be achieved by brand building. The director needs to estimate returns from brand building and geographical expansion. The financial risks for each are different and the implementation challenges complicate the decision. What strategy will gain the confidence of investors and yield the best results for JMD Oils in the long term?
學習目標
This case can be used in a master course on management education, strategic management and/or advanced marketing management, as it helps in developing skills in business decision-making and selecting growth plans. It also provides insights on backward integration and consumer pull strategies. Students will:<ul><li>Calculate the financial implications of the strategies of backward integration and geographical expansion of a sales and distribution network.</li><li>Calculate the impact of brand building on gross margins.</li><li>Learn to choose between different growth options.</li><li>Understand the differences between the decision-making paradigms of investors and business owners/managers.</ul></li>
涵蓋主題
新增
新增