Van Heerden Foods Essay

Van Heerden Foods is one of the largest food producers in South Africa whose greatest business strengths were powerful brands and loyal customers. The company has a strong track record as an innovator and a well-funded R&D budget. However, the food manufacturer has some weaknesses like the recent loss of top management talent to its rivals and a cultural resistance to change that reduced response to market forces. In addition some key threats have been developing for several years including the success and increased market share of less costly, private-label brands. Secondly, the South African market has been a key target for various overseas manufacturers who are using aggressive marketing strategies. Moreover, local rivals have been quick to respond to the increasing consumer demands for less fattening and healthier food choices. The firm's new Chief Executive Officer has been evaluating the business by looking at these dynamics in order to make the most appropriate, though unpopular decision that would get the company back on track.

Decision-making Process Taken by Don Stransky and Van Heerden:

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for $19.77 After analysis of the strengths, weaknesses, opportunities, and threats of Van Heerden Foods, the CEO had to examine whether to exploit an opportunity to acquire a smaller rival, JF Foods. This competitor is renowned for its ability to produce quality ready-to-eat, comfort foods and snack foods. JF Foods not only has a considerable portion in the private label market but produces foods that target the growing sector of the market. Through acquisition of JF Foods, Van Heerden could obtain their core competencies for innovation. Stransky is renowned for successfully spotting new market opportunities by acting on instinct, which paid off handsomely.

Essay on Van Heerden Foods Is One Assignment

Don Stransky and Van Heerden Foods completed several steps in the decision-making process to decide on whether to acquire JF Foods as part of attempts to transform the company into a highly-flexible, customer focused company. The first step of the decision-making process completed by the CEO and Van Heerden is identifying or clarifying the decision to be made. In this case, a decision had to be made on how to get the company back on track in light of the difficult challenges it had experienced in recent years. Following a comprehensive analysis, the CEO identified the decision to be made i.e. The best strategy towards transforming the firm into a highly-flexible, customer focused company. Secondly, relevant information was gathered in attempts to identify the most appropriate decision. This is an important step because many decisions usually require gathering relevant information ("Decision-making Process," n.d.). This process was completed through examining the strengths, weaknesses, opportunities, and threats of Van Heerden Foods.

Third, the alternatives were identified including considerations on whether to acquire JF Foods or continue with aggressive pricing to increase market share. Fourth, Don Stransky… [END OF PREVIEW] . . . READ MORE