Topic > South African Food Manufacturers: Van Heerden Foods

Van Heerden Foods: Van Heerden Foods is one of South Africa's largest food manufacturers, whose greatest commercial strengths are 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, such as the recent loss of top management talent to its rivals and a cultural resistance to change that has reduced its response to market forces. Additionally, some key threats have been developing for several years, including the success and increased market share of less expensive private label brands. Secondly, the South African market has been a key target for various foreign manufacturers using aggressive marketing strategies. Additionally, local rivals have responded quickly to growing consumer demands for less fattening and healthier food choices. The company's new CEO evaluated the company by looking at these dynamics in order to make the most appropriate, albeit unpopular, decision that would get the company back on track. Decision Making Made by Don Stransky and Van Heerden: After analyzing 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, J.F. Foods. This competitor is renowned for its ability to produce quality prepared foods, comfort foods and snacks. JF Foods not only has a sizable share of the private label market, but produces foods aimed at the growing sector of the market. Through the acquisition of JF Foods, Van Heerden was able to acquire its core competencies for innovation. Stransky is renowned for successfully identifying new market opportunities by taking action...... middle of paper... a financial officer against the takeover initiative. The inadequacy of the acquisition attempt is demonstrated by the fact that many competitors have adopted such strategies and that customers are satisfied with current products. Therefore, I advise Van Heerden Foods to adopt an effective pricing strategy as customers purchase based on price in the current economic climate. Bottom line: Van Heerden Foods CEO Dan Stransky needed to make a decision that would help get the company back on track to overcome the difficult times it was experiencing. As evident in the case, Stransky used a different decision-making style or approach that led him to consider acquiring JF Foods. However, the company's decision-making process was incomplete and ineffective as the CEO and senior executives did not complete all steps of the process.