Shorefast Case Study B March 2013
Table of Contents
Introduction…………………………………………………………..1
Financial Analysis…………………………….…..………………….1
Strategy Diamond Model……………………………………………7
Internal Analysis…………………………….……………………….8
Value Chain Analysis…………………………………………….……..8
VRINE Analysis…………………………………………….…………12
External Analysis……………………………………………………13
Porter’s five forces………………………………………………………13
PESTEL……………………………………………………………..…..14
Alternative Evaluations………………………………………….…15
Fit analysis…………………………………………………….…….18
Conclusion………………………………………………..………….19
Recommendations……………………………………...……………19
Introduction
Plant Nutrients Inc. (PNI) is an international company that supplied fertilizer ingredients used by its subsidiaries in 6 geographic area which are Northeastern United States, Eastern Canada, Europe, Australia, New Zealand, and South America. The general manager of PNI is Brian Dunwoodie and the marketing manager is Dave Claussen. Mr. Dunwoodie and Mr. Claussen are the main decision makers within the organization. They were meeting with each other to determine the main issues of the company, which how to improve company’s performance next year (1999). They came up with three potential alternatives, which are strengthening the existing business, adding a seed business and adding precision agricultural services to better PNI’s performance next year. For choosing the best alternatives, this paper will use different frameworks and models to analyze each alternative, for example financial analysis, strategy diamond model, internal analysis (Value Chain and VRINE), external analysis (Porter’s 5 forces and PESTEL). After analyzing all these parts, the fit between internal and external environment will be analyzed as well.
Financial Analysis
1. Operating income statement (Exhibit 1)
As Exihit 1 in the case shows that the main product PNI had sold was Fertilizer, the total sales of PNI in 1998 is
Introduction…………………………………………………………..1
Financial Analysis…………………………….…..………………….1
Strategy Diamond Model……………………………………………7
Internal Analysis…………………………….……………………….8
Value Chain Analysis…………………………………………….……..8
VRINE Analysis…………………………………………….…………12
External Analysis……………………………………………………13
Porter’s five forces………………………………………………………13
PESTEL……………………………………………………………..…..14
Alternative Evaluations………………………………………….…15
Fit analysis…………………………………………………….…….18
Conclusion………………………………………………..………….19
Recommendations……………………………………...……………19
Introduction
Plant Nutrients Inc. (PNI) is an international company that supplied fertilizer ingredients used by its subsidiaries in 6 geographic area which are Northeastern United States, Eastern Canada, Europe, Australia, New Zealand, and South America. The general manager of PNI is Brian Dunwoodie and the marketing manager is Dave Claussen. Mr. Dunwoodie and Mr. Claussen are the main decision makers within the organization. They were meeting with each other to determine the main issues of the company, which how to improve company’s performance next year (1999). They came up with three potential alternatives, which are strengthening the existing business, adding a seed business and adding precision agricultural services to better PNI’s performance next year. For choosing the best alternatives, this paper will use different frameworks and models to analyze each alternative, for example financial analysis, strategy diamond model, internal analysis (Value Chain and VRINE), external analysis (Porter’s 5 forces and PESTEL). After analyzing all these parts, the fit between internal and external environment will be analyzed as well.
Financial Analysis
1. Operating income statement (Exhibit 1)
As Exihit 1 in the case shows that the main product PNI had sold was Fertilizer, the total sales of PNI in 1998 is