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Heroes met case study

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DÉBORAH                lundi 18 septembre 2023

HEROES MET

Question 1 :

STRENGHTS

WEAKNESS

NEEDS FOR IMPROVEMENT

EXPORT DEPARTMENT

  • Existing infrastructure with a dedicated export department ;
  • English speaking team members ;
  • Key account managers responsible for world markets
  • Low motivation among teams members ;
  • Potential communication issues within the team
  • Motivation and team morale need to be boosted with a challenge for example ;
  • Define clear goals and incentives to drive performance

FRENCH SALES DEPARTMENT

- Appears to be adequately staffed

- Evaluate if the French team can contribute to international sales efforts and if so, define their roles in the international expansion strasegy

SUPPLY CHAIN DEPARTMENT

- Handling back office functions for the both French and export markets

  • Lack of English speaking personnel ;
  • Decreased proficiency in English due to lack of practice

- Invest in language training to improve the language skills of existing staff

MARKETING DEPARTMENT

- Successfully launched a new « Premium » product line

  • Limited team size ;
  • Limited international marketing experience

PRODUCTION / QUALITY DEPARTMENT

  • Plans to upgrade the factory and increase production capacity ;
  • International certification efforts initiated

- Timeframe for factory upgrade is relatively long so 9 months

- Explore options to expedite the factory upgrade process

Question 2 :

STRENGHTS

WEAKNESS

OPPORTUNITIES

THREATS

Product Quality: HEREOS' commitment to high-quality edible oils, including premium and organic options, positions it well in export markets where consumers seek quality and healthy products.

Resource Constraints: Smaller companies may face resource constraints, limiting their ability to invest heavily in marketing, distribution, and regulatory compliance.

Growing Demand for Premium and Healthy Products: The global trend towards healthier eating habits and premium food products aligns with HEREOS' offerings.

Intense Competition: Established global competitors and local brands in export markets can pose significant challenges.

Existing Export Experience: The company already has export experience, comprising 15% of its turnover, which provides valuable insights into international markets.

Language and Cultural Barriers: Language and cultural differences may hinder effective communication, marketing, and understanding of consumer preferences in foreign markets.

E-commerce: The growth of e-commerce provides a platform to reach international consumers directly and expand market presence.

Supply Chain Risks: Global supply chain disruptions or issues with sourcing raw materials can impact production and delivery schedules.

Partnerships: Collaborations with partners like IN VIVO and potential future partners can facilitate market entry and expansion.

Partnership Synergies

Currency Exchange Risks: Fluctuations in currency exchange rates can affect pricing and profitability in international trade.

Product Diversification: The introduction of a new "Premium" line of oils allows for a broader product range to cater to different market segments.

Cultural Challenges: Understanding and adapting to the cultural nuances and consumer preferences of diverse export markets is essential for success.

Question 3 :

The company, HEREOS, is in the process of preparing to restart exporting, but it is not yet 100% ready to "press the button" and attack new export markets. There are several factors that need to be considered:

  • Capacity: An industrial development plan to modernize the Provence factory and increase production capacity by 30% is underway. However, the work is expected to take nine months to complete. Until modernization is complete, the company may not have the capacity to meet the needs of new export markets ;
  • Certification process: Group Quality Director Jean Raffy was tasked with obtaining international certification for HEREOS products and production. While progress is being made, the certification process may take some time to complete ;
  • Language skills: While the export team speaks English, other departments lack English skills. This may create order fulfillment challenges for international customers that may need to be addressed before entering new export markets.

Question 4 :

OPPORTUNITIES GERMAN MARKET

THREATS GERMAN MARKET

High Demand for Quality Products: Germany is known for its demanding consumer base that prioritizes quality and healthy food products. This aligns with HEREOS' focus on premium and organic oils, providing an opportunity to capture a share of the market.

Intense Competition: The German market is highly competitive with numerous local and international producers of edible oils. HEREOS will face competition from well-established brands with established customer bases.

Premium Oils Market: The German premium oils market is evaluated at €350 million, indicating a significant market size for high-quality oils, which can be tapped into by HEREOS.

Supply Chain Challenges: Global supply chain disruptions or issues with sourcing raw materials can impact production and delivery schedules, affecting the company's ability to meet market demands.

Growing Interest in Organic Products: The potential for organic oils in Germany, where consumers increasingly prefer organic and sustainable options, offers a niche market segment for HEREOS to explore.

Currency Exchange Risks: Fluctuations in currency exchange rates can affect pricing and profitability for an international company like HEREOS, especially when dealing with exports.

Cultural Differences: Understanding and adapting to the German market's cultural nuances and consumer preferences is essential for successful market entry. Lack of cultural understanding can hinder marketing efforts.

Question 5 :

Mr. Faille's decision to prioritize the German market as a priority for HEREOS appears to be a strategic move with potential benefits. Several factors support this choice :

  • Market Potential: Germany is one of the world's largest and most developed economies with a strong food culture and a preference for high-quality products. The German premium oils market is substantial, offering significant growth opportunities ;
  • Demand for Quality: German consumers are known for their emphasis on quality and health-conscious choices. HEREOS, with its focus on premium and organic oils, aligns well with these consumer preferences ;
  • Established Partners: Mr. Faille has identified potential partners such as FOODGERMANY, LIDL, HIGH DELIGHTS GMBH, and BOSCH GMBH. Collaborating with these established players can provide easier market entry and distribution channels ;
  • Personal Affinity: Mr. Faille's personal affinity for Berlin and German culture may provide him with valuable insights and connections within the market, potentially facilitating market entry.

Question 6 :

Entering the German market represents a significant opportunity for HEREOS, the cooperative company with a rich history of producing edible oils. To ensure a successful market penetration strategy, Mr. Faille, the new director, must carefully consider various aspects, including partner selection, product adaptation, regulatory compliance, and marketing strategies. This comprehensive set of recommendations aims to guide Mr. Faille and HEREOS in their endeavor to establish a strong presence in the competitive German market and capitalize on the growing demand for premium and organic edible oils.

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