Investing in the Ugandan dairy sector

Learning outcomes Industry analysis and market attractiveness: Understand how to analyse an industry, using the dairy sector in Uganda as an example and what makes a market attractive for incumbents or future entrants. Value disciplines: Understand and apply the different value disciplines companies can choose from to achieve market-leading positions. Business integration: Understand some of the key benefits of vertical integration and when it may or may not make sense to integrate. Doing business in Africa: Understand the specific generic challenges of doing business in Africa, particularly in the agricultural and manufacturing sectors. Generalisability of frameworks: Realise that the same frameworks that are used to analyse large firms and mature markets can be applied to smaller firms in less developed markets. Case overview/synopsis The case is set in the early months of 2020, as Bernd Schanzenbächer, founder and managing partner of EBG Capital (a Swiss investment firm that manages a multimillion global portfolio of agricultural investments), and his team are deciding whether to invest in a dairy farm in Uganda. The opportunity looks quite interesting and the EBG Capital team believes there is a good fit between the farm owners’ needs, its management team’s objectives and EBG Capital’s strengths and interests. However, the dairy market in Uganda faces many challenges and, while the market-demand fundamentals appear promising, the team wonders if it is the right time to invest. The issue for EBG Capital is to understand what makes the Ugandan dairy industry so challenging and to determine how to fix or mitigate some of the industry’s most pressing problems – given that it will be the firm’s first investment in the country – as well as for deciding where it makes sense to play in the broad value chain (i.e. only in milk production or also in milk processing). Complexity academic level Masters in Business Administration and Executive Education courses. Supplementary materials Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

Modern approaches to the formation of enterprise competitive strategy

The article considers the approaches to the formation of a competitive strategy. The purpose of the article is to systematize existing approaches to the formation of a competitive strategy and highlight modern competitive strategies. The essence of the concepts «strategy» and «competitive strategy» is considered. Based on a critical analysis of the essence of «competitive strategy» concept, three approaches to its interpretation by various researchers are identified: it is aimed at creating a stable position in the market, provides for the creation of a sustainable competitive advantage, and it is aimed at achieving superiority over competitors. Based on the results of interpretations systematization and analysis of the essence of «strategy» concept, the author’s definition of competitive strategy as a direction of forming a competitive advantage for creating a unique value of the product is proposed. The process of choosing a competitive strategy by M. Porter has been analyzed and it has been established that after its development, further continuous improvement is necessary. The process of choosing a competitive strategy by M. Porter is analyzed and it has been established that after its development, further continuous improvement is necessary. The main approaches to the formation of a competitive strategy, which considering modern business trends are investigated: industry positioning, competitive cooperation, value disciplines, evolutionary theory and key competencies. The essence of the considered concepts, their advantages and disadvantages are clarified and two types of competition, typical for these concepts are identified, namely: tough competition; competition and cooperation. A number of competitive strategies, which take into account the specifics of modern enterprises, are investigated and the essence, necessary resources, output characteristics and type of competition for each of them are highlighted. It was substantiated that each of there searched strategies implements one of the basic competitive strategies: cost leadership or focusing. The cost leadership strategy using at domestic enterprises, which is the most acceptable for the modern realities of the functioning and development of business, is proposed,

Analisis Strategi Soar Pt. Xyz Dalam Meningkatkan Penjualan Bahan Baku Kimia Untuk Industri Tekstil, Kayu, Pakaian Dan Deterjen

PT. XYZ is a private multinational company engaged in chemical type commodities trading with sodium sulphate, sodium carbonate and hydrogen peroxide – three of the most common chemicals used in textile, pulp & paper and detergent industry – as their main traded commodities. However, due to many opportunities available and the company’s experience as an international trader, marketing plan should not be ignored especially when the company is still relatively new as a supplier. Based on last year sales revenue alone, PT. XYZ placed third among four other companies, placing PT. XYZ as a market follower and thus needed to formulate an offensive strategy to achieve higher sales. The method used in this study is by using SOAR tool instead of SWOT analysis and translated into Treacy and Wiersema’s value disciplines. consisted of three strategies, i.e. operational excellence, customer intimacy and product leadership. The study found that there is a need for the company to use a combined strategy of operational excellence and customer intimacy.

Operational Excellence as the Main Customer Value: Information Technology Vendors' Perspective

Background: Information technology (IT) requires substantial investments from enterprises to build competitive capabilities. IT products are supposed to provide value to customers and to increase the competitiveness of enterprises. Vendors of IT products should take the competitive strategy and value creation for enterprise buyers into account. Objectives: This article takes the perspective of IT vendors (ITVs) and attempts to answer the research questions “What types of customer value do ITVs consider?” and “Do ITVs consider the competitiveness of enterprises?” Methods/Approach: This research investigates descriptions from ITVs and analyzes patterns and correlations of coded content. The annual reports of 32 global market-leading ITVs were examined through direct content analysis. Results: Half of the annual reports mention the competitiveness of enterprise buyers; 84% of the samples relate to customer-value disciplines. Moderate positive and monotonic relationships were detected between customer value disciplines. Conclusions: ITVs consider the competitiveness of buyers and noticeably regard customer value disciplines, mainly operational excellence, that in turn refers to process efficiency and cost-effectiveness.

PRIORITY DIRECTIONS OF OPTIMIZATION OF OPERATIONAL ACTIVITY MANAGEMENT OF PRIVATE MEDICAL INSTITUTIONS

The specifics of medical services have been updated, which determines the features of operational management of private medical institutions. It is argued that the most rational direction of improving the management of operational activities of private medical institutions should be based on the concept of «value disciplines» F. Wirsem and M. Tracy: ensuring operational excell ence, innovative leadership, customer-centricity. On the basis of economic substantiation of projects of improvement of management of operational activity of «Clinic of anti-aging «MEDIKOM» the theoretical conclusions are empirically confirmed and their applied significance is proved.

AN ANALYSIS OF THE EFFECT OF COMPETITIVE STRATEGIES ON PERFORMANCE: A SURVEY OF MFIS IN KENYA

Purpose: The purpose of the study was to investigate the competitive strategies being adopted by MFIs and the effect of such strategies on firm performanceMethodology: The study adopted a descriptive survey research design. The targeted population of the study was derived from the 41 members of Association of Microfinance Institutions. A census was carried out. The questionnaire was the main data collection instrument due to its convenience and ease of use. The data will be analyzed through both descriptive statistics and regression statistics.Results: The findings of the study indicated that MFIs used cost leadership competitive strategy, differentiation strategy, focus strategy and value disciplines. Findings indicated that there was a relationship between competitive strategies and the performance of MFIs.Unique contribution to theory, practice and policy: It was recommended in the study that the MFIs should continue the use of the competitive strategies as they were impacting positively to their performance. The suggested area of research was to determine most preferred dominant competitive strategy being used by MFIs and also to ascertain the truth of the “being split in the middle phenomena” advocated by porter (1998).

COMPETITIVE STRATEGIES ADOPTED BY PLAYERS IN THE BEER INDUSTRY IN KENYA

Purpose: The focus of this study was on assessment of competitive strategies adopted by players in the beer industry in KenyaMethodology: The study adopted a cross sectional descriptive survey research design. There are 11 players in beer industry operating in Kenya. The research therefore took the form of a census study covering all the players in the beer industry in Kenya since the population of 11 firms was considered small enough. Eleven questionnaires were given out though only 10 were considered fit for data analysis. Data was analyzed using descriptive statistics.Results: Findings indicated that players in beer industry in Kenya were faced by several forces that shape competition. These included competitive rivalry, threat of new entrants, bargaining power of suppliers and customers, globalization, regulation and information technology. Players in beer industry in Kenya used cost leadership strategy as a competitive strategy since they attempt to reduce their operational costs in order to deliver the product at the lowest prices. It was also possible to conclude that players in beer industry in Kenya use differentiation as a competitive strategy since they have invested in product research. Players in beer industry in Kenya also used focus as a competitive strategy since they have products for different types of consumers. It was also possible to infer from this study that players in beer industry in Kenya used value disciplines as a competitive strategy.Unique contribution to theory, practice and policy: The study recommended that players in beer industry should carry out constant environment scanning so as to be able to identify the various forces that affect their operations. In addition, they needed to adopt strategic planning as a tool for planning against any unforeseen events that may destabilize the operations of the company. Finally, it was recommended that these players needed to continue using the various competitive strategies. However, they also needed to factor in the concept of strategy fit by considering the internal capabilities and resources of the firm.