Wednesday 4 November 2009

Recommendations

Overall the farm seems to be in a weak state. Tow main options: to sell and moving into the crisp market. There are many factors that success depends such as their finance, percentage of risks which they will face, demand of crisp and barrier to entry the market which is high because it is oligopoly market (80-83% share control by 3 largest firms).

My recommendation is that any business always face with many risks to have high profit. All of their shareholders are proud of their family business, they should move into the crisp market. However they should research about their new market clearly again because some of their information is not clear and sure. Crisp market is a oligopoly market, therefore there is a high barrier to entry. They must to have enough finance if they don’t want to have problems with their cash-flow and their loans. They will have two more workers if they want to move to crisp market. Therefore they should teach them and train another 4 workers as well. They are new in crisp market so they have to follow another competitors’ s price in first time. After customers know their brand name, they should change their price to compete with them.