KEPAK'S BUSINESS STRATEGY

Kepak's Business Strategy

Executive Summary

Kepak has been engaging in diversification strategies that are meant to provide Kepak a competitive advantage. Kepak's current strategy is vulnerable and it is a strategy that has roots in traditional business management practices and takes minimal advantage of recent innovations and developments. The firm appears to be relying almost entirely on alterations in distribution, pricing and production practices.

Kepak needs to implement a multinational scope. There is an unrealized wastage of resources that is diminishing revenue as a result of inefficient and somewhat misguided development practices. Kepak is at a position where it has fully matured and can therefore expect a decline in the near future.

Kepak's Business Strategy

Introduction

This discussion will present a review of the strategic situation of Kepak. This will constitute a close examination of Kepak's business environment and a comprehensive analysis of Kepak's current strategy. Furthermore, as per report requirements, the discussion will also appraise Kepak's current strategy in order to ascertain how likely it is that the company can sustain competitive advantage. It merits highlighting at this point that the report will borrow extensively from the Harvard Business School case study provided (Bell, McLoughlin, & Shelman, 2011).

Kepak's Business Environment

The business environment that currently surrounds Kepak is of a somewhat unpredictable nature. It is riddled with unexpected fluctuations in industry trends that are caused by rapid innovation and development (Bell, McLoughlin, & Shelman, 2011). It is imperative to note that the bulk of these innovations (and the most influential developments for that matter) take place in livestock farming industry and distribution practices.

Innovations in these industries influence cost structures; which in turn influence supply chain practices (Hill, 2012). The eventual outcome becomes apparent in the form of expansions in the product range, alterations in supply chain practices and consumer friendly pricing structures.

Kepak's business environment is also influenced by major changes in consumer preferences in the last decade. Consumers now look for food products that deviate from traditional diet trends and are fundamentally healthy in nature (Bell, McLoughlin, & Shelman, 2011). This has resulted in the development of a business environment where firms functioning in the meat industry are continuously attempting to breach into the health-friendly food market through diversification strategies (Fischer & Hartmann, 2010).

The net impact of this is observed in the form of new products entering the market at a rapid pace. In addition, firms functioning in the beef industry are faced with the challenge of appealing to a completely different category of consumer preferences; one that was rarely considered or addressed in the past (Hill, 2012).

The data provided shows that the beef farming industry is currently undeniably under-utilizing its resource. Ireland is known for nature friendly outdoors and this fact is a natural cost-cutter for cattle farmers. However, the inadequate government attention in the past has placed the Irish beef farming industry well behind other globally competing beef industries (Bell, McLoughlin, & Shelman, 2011). This is evidenced through the fact that cattle export is a more feasible practice than the execution of ...