Climate Corporation is a San Francisco-based data analytics company focused on agricultural applications. It was acquired by Monsanto in 2013. In 2015, Climate's decision support platform was used on 75 million acres of farmland in the U.S.; however, most of those acres were "free" acres. To build a viable business, Climate had to convince farmers to subscribe to and pay for premium offerings. The case describes Climate's technology approach, product offerings, marketing plans, and the competitive environment for "digital agriculture".
This case highlights the tough choices, competing interests, and decision-making mechanisms involved in California's management of its severe drought, entering its fifth year in 2015. Stuart Woolf, CEO of Woolf Farming, a grower and processor of almonds, tomatoes, and other crops in California's Central Valley, must decide how to respond to the changing operating environment. Scarce water resources-and institutional constraints on the use of water-have forced many producers, including Woolf, to fallow farmland. Meanwhile, competing demands for water from municipalities and environmental interests have raised the public's scrutiny of agricultural water use. This case describes farming in California's Central Valley and reviews the state's complicated system for managing water rights and resources. It invites students to analyze the relative merits of competing perspectives on how to allocate water, the institutional mechanisms for doing so, and the potential responses of agricultural producers to the changing marketplace. Is now the time to double down on farming in the Central Valley, shift to a higher-value-added crop portfolio (e.g., organics), or retreat from this challenging business?
Hain Celestial manufactured natural and organic food and personal care products to be sold to retailers of these products. The company had grown successfully and profitably through acquisitions and organically for two decades. In late 2015, Hain faced challenges on several fronts. First, new consumers were interested in these products and these consumers had characteristics different from those of historical consumers in the segment. Second, the natural and organic market segment had been growing faster than the conventional market overall and was expected to continue to do so. This had caused large conventional manufacturers to enter this space increasing the level of competition for Hain. Third, this segment growth was also attracting a wider range of retailers wanting to sell these products and some of these retailers were introducing their own natural and organic brands.
In 2012, Syngenta, one of the world's largest agricultural input company, committed to build a $1 billion business in Africa over the next 10 years. In mid-2014, CEO Michael Mack and Africa Venture Team head Dimitri Pauwels are reviewing progress. Was the company's committment to Africa still relevant and achievable?
Argentina-based Cresud managed 1 million hectares (2.5 million acres) of land in South America. For 20 years, the publicly traded company's strategy had been to acquire underutilized properties and turn them into productive farmland for cattle and crops. In 2014, Cresud's CEO wondered if the strategy was still correct in the face of falling commodity prices, more powerful input companies, and potentially positive changes in Argentina's political environment.
Privately held Simplot has developed a new genetically engineered potato that substantially reduces waste and does not turn brown after cutting. Unlike other GMOs, it does not contain foreign genes. The case describes the company's commercialization plans in light of the complex environment surrounding genetically modified foods.
As the leading distributor of fresh avocados in the U.S., Mission Produce was at a crossroads in late 2013. Avocado consumption was booming and CEO Steve Barnard wanted to acquire additional land in Peru and develop new avocado farms to help fill a projected supply gap. Mission could also buy avocado farms in other countries, expand its international marketing efforts, invest in brand building in Asia, and/or add processed avocado products. This strategy case describes Mission's growth, entrepreneurial leadership, future opportunities, and financing alternatives.
In 2010, the world's third largest retailer created a new centralized sourcing department for fresh food and store-brand grocery products in response to changes in global supply and to better meet the needs of a new multi-channel retail environment. The case, set in late 2013, covers the development of Tesco Group Food and identifies future opportunities and challenges.
OSI, one of the world's largest suppliers of processed meats to McDonald's and other QSRs, was in the middle of a $400M expansion in China that included backward integration into poultry production. However, its current customers took only a portion of each bird produced and OSI had to develop a go-to-market strategy for the rest. The case describes the opportunities and challenges of operating in China and raises questions involving vertical integration, competitive positioning, corporate strategy, organizational design, marketing and branding, and the management of business and political risk.
In 2007 Royal DSM, a leading life science and materials company, entered a partnership with the World Food Programme (WFP) to combat hidden hunger around the world by providing micronutrient solutions. The case investigates the unexpectedly large impact the partnership had on DSM and on the global nutrition discussion, and discusses the benefits and challenges of scaling up the Nutrition Improvement Program-a key component of DSM's human nutrition and health division-beyond the WFP partnership, despite the need to build significant additional capabilities and its somewhat lower margins.
From modest beginnings as a cashew trader in Nigeria, Olam, founded by Indian nationals in 1989, has grown into a leading global agricultural trading company, with annual revenues of $14 billion. The company recently has begun investing in farms and in the production of packaged goods, shifting from its traditional focus on the midstream of the value chain. The case raises questions involving competitive positioning, corporate strategy, sustainable development, and the management of business and political risk.
In late 2012, Kori Tuggle, director of marketing and business development at Ocean Mist Farms, a California produce company, examines her social media-based marketing program and her attempts to create a brand for a bulk commodity.
In 2011, Fonterra, the world's largest processor and exporter of dairy products, needed to reposition its business to take advantage of rising demand in emerging markets in Asia.
In 2011 Khalil and Adil Sattar are considering growth opportunities for K&N's, their family business that is the market leader for processed chicken and value-added chicken products in Pakistan. This position has been built through a strategy of vertical integration, product innovation, and branding. K&N's has also developed its own chain of retail "Chicken Stores" to promote their products. Growth opportunities include contained expansion in Pakistan, exporting to nearby markets, and/or developing a global Halal food brand.
Domino's Pizza is the world's second-largest pizza company with 9,436 stores globally, 95% of which are franchised. Domino's franchisees in the U.S. market were able to purchase fresh dough, cheese, pizza toppings, and other menu ingredients and store supplies directly from the company-owned supply chain system. When commodity prices became more volatile in 2007 and 2008, executives at Domino's changed the way they worked with suppliers and franchisees to manage costs and risks, and better leverage the assets of the supply chain system. As the company prepared to accelerate international growth in 2011 and beyond, executives contemplated how to best apply their purchasing and supply chain knowledge into new international markets.
Grower-owned Zespri is the sole exporter of New Zealand-grown kiwifruit outside of Australia and New Zealand. Facing growing international competition, Zespri invested in consumer branding and innovation, which has led to new types of kiwifruit that taste better and are protected with patents. Consumer response has been positive and Zespri has begun to grow kiwifruit outside of New Zealand in order to have the product on retail shelves year round. Is this the right strategy for the future?
As Ireland's third largest beef processor, Kepak faces new opportunities as well as significant challenges from the collapse of the "Celtic Tiger." The government has identified food and agriculture as one way the country could significantly grow exports. However, the beef industry is suffering from overcapacity and from an inefficient farming structure. CEO John Horgan is considering the best way to position Kepak for success, including the possibility of an umbrella Irish beef brand, opportunities for "co-opetition" within the industry, and how to expand the firm's successful convenience foods business to more countries.
Since the first KFC opened in China in 1987, Yum--under Sam Su's leadership--had built the largest restaurant company by far in mainland China. Averaging one new restaurant opening a day for the past five years, in 2010 Yum ran over 3,600 restaurants in 650 cities and employed over 250,000 people, many of them college students in their first jobs. In the third quarter of 2010, Yum China's revenues surpassed U.S. revenues for the first time and many analysts expected that Yum's China business--driven by a rapidly growing middle class--would be twice as large as its U.S. business within five years. But before rushing out to open thousands more stores, Su wondered what the company should do to forestall some of the problems plaguing the fast food industry in the West.
Once Spain's largest sugar company, Ebro Puleva has been transformed through a series of international acquisitions into the world's largest package rice company and second largest pasta company. In 2009, Chairman Antonio Hernandez Callejas must decide how to proceed now that the firm's sugar business has been sold. A specific question is whether the firm should sell its dairy business, which is limited to Spain. The case discusses the firm's branding strategy, approach to integration, and organizational structure used to manage a global business. The case also describes several changes in consumer behavior and the retail food market brought on by the global financial crisis.