Point of View: Henry Livingston, Vice President of the Africa Middle East Region of Hygeia International
Time Context: 1980
Statement of the Problem: To determine whether to venture into poultry production, retain current business position, or to use poultry production as a sales promotion tool to increase profit
Statement of the Objectives: * To determine the number of human resources needed for the company to be ready in venturing into poultry production in Nigeria in four weeks time * To analyze risks involved in poultry production in Nigeria in four weeks time * To determine historical data of sales growth within the past five years to project return of investment in the next five years
Areas of…show more content… Its massive foreign exchange from its crude oil exports ($15 billion in1980) provides a base for all sorts of expansion and is very favorable for the company. However, pricing poses a dilemma. High prices, which will stimulate farm output, also lead to high prices for the city dweller that is already caught in inflation.
Alternative Courses of Actions:
ACA #1: Expand business by venturing into poultry production in Nigeria
ACA #2: Retain current business position
ACA #3: Use poultry production in Nigeria as a sales promotional tool for the company
Analysis of the Alternative Courses of Actions:
ACA #1: Expand business by venturing into poultry production in Nigeria The first alternative course of action is the expansion of Hygeia by venturing into poultry production in Nigeria. Since the company is already well established in the country, has good relationship with the government, it would be feasible for it to expand its business here. The company, aside from being one of the largest pharmaceutical companies in the world, also has an expertise in the technology even though it does not produce poultry because its operation focuses in drugs for disease control and feed supplements of chicks. There is a projection of return of investment by 30 percent hurdle-rate used for domestic investment. Moreover, there’s a high potential demand for protein foods, especially eggs, which are less perishable
