Daregal business case

Résumé du document

By utilizing a strategic analysis process, we can clearly determine the advantages and the threats prevalent in the environment of the company which will in turn influence its future development. Daregal, the renowned family entrepreneurship, has been existing with an age-old history and great traditions. Today it is one of the biggest producers of deep-frozen herbs. It is the Daregal family that created this type of product and this gave rise to the development of a brand new consumer market. As the environment gives a company its means of survival, the company in turn, needs to play a significant role by adopting ethical standards which will not be hazardous to the environment. To a great extent, it is the environment that is responsible for a company's success. Therefore, a new framework, known as The PESTEL framework will be used in order to analyze this layer of the business environment. The market as a whole is not so widespread and hence, its capacity of being influenced by any kind of change in the surrounding environment will be an easy task. Half of Daregal's production is sold on the domestic market in France but the other half is exported to the rest of the world (Europe, US, Asia). In this scenario, the company will have to deal with the French environmental influences as well as with international challenges.

Extraits

[...] This second major part of the Daregal analysis is going to deal with the resource based view of the strategy. The distinctiveness of the capabilities of Daregal is about to be examined. Resources and competences of the company are the factors that we are looking for so that we can determine its strategic capabilities. Threshold capabilities Capabilities required to be in the business ( Threshold resources - Physical resources The integration of the company has made it possible to be in the farming as well as in the industrial business. [...]

[...] There are medium barriers to entry. (Threat of substitutes Dehydrated aromatic herbs can be considered as substitutes of the deep- frozen herbs. In fact it is the same product that received a different kind of treatment. Even though the dehydrated herbs do not have the same aroma as the deep-frozen ones, there might be people who will start to buy this substitute depending on the price of the two products. (The power of buyers Here we should consider the different type of buyers for this product: - Food industry 50% - Catering 20% Daregal sales - Scale retailers / Hypermarkets 30% As a whole the bargaining power of buyers is very high. [...]

[...] Daregal possesses 7 production units that gives it big productive capacities. Laboratory which controls the herbs quality. - Human resources the whole personnel of the company, customers - Intellectual capital Certifications ISO for the plants which are necessary for the functioning of every single plant. (Threshold competences - The management of the plants. The company doesn't hesitate to close a plant if it is not profitable for the whole organisation. Acquisition decisions. - Competent suppliers - Ability to receive short-term and long-term loans for future investing Capabilities for competitive advantage ( Unique resources - The Daregal brand the first to be in the business; it created this micro-market (the first mover advantage) - The technology used for the deep-freezing of the herbs The specific deep-freezing technique IQF. [...]

[...] The Daregal company can be easily influenced by its macro-environment. It is a relatively small one so any change in the factors listed up-above can improve or deteriorate the company's performance. The most critical factors are related to the foreign trade because 50% of its sales are made by exporting to the rest of the world. The company receives a large amount of money (different currencies) so the exchange rates and the financial markets can be considered as key drivers of change. [...]

[...] Last but not least if there isn't a heir who can inherit the control of the company, there must be unprecedented changes in the structure of the government of Daregal. Daregal is a family owned company so the fundamental decisions are being taken by the family council (The Daregal's board of directors). The specific governance structure cannot fit to none of the models of governance shareholder or stakeholder governance. This is one of the characteristics that makes Daregal different from its competitors. The family is the major stakeholder so its interests are always to be regarded. There aren't any real threats of being taken over by another organisation. [...]