Gangong Bros

Ganong Bros. Limited Case

Content

-problem statement

-analysis

-alternatives

-recommendations

Introduction

Strategy

Differentiation

– boxed chocolates/high end products

Cost leadership

– Latest manufacturing technology

Critical success factors

Key competitive factors

– variety of high end products

-Broader exposure/brand presence

-close to community/ownership

[Constraints]

Key assumptions/owners/mgrs

-Commitment to community

-Can you take on other partners?

* Can create potential long term problems, partner might end up taking complete control eventually

Problem Statement

Issue: something that requires attention and can create a problem in the future if not dealt with.

Questions:

What major steps do you need to take immediately to help improve the financial position of the company?

How can we grow company revenues by 50% in the long term? (Long term)

-investors, financing solutions (balance sheet improvement), or creditors

Analysis

Tools:

SWOT – general analysis, strategy – Q 1.

Financial analysis

How bad is the current financial condition?

Misc areas (retrenchment strategy):

Cut unnecessary costs that the business does not need to keep running

Sell assets that are available and unused to the business; however, will get minimal cash

Focus product line, stop selling unprofitable products

Layoffs/job share (manufacturing, selling, admin)

Get rid of sales staff and go to distributers

Stop working in Thailand even though it is successful, it is only 5% of business, too much time

SWOT

Strengths:

Weaknesses:

(Internal)

Threats:

Opportunities:

(External)

Analysis of SWOT

Strengths 1-10 Trend

Boxed chocolates, strong brand presence 8-8

Overall reputation 8-8

Board of directors 9-9

Subsidiary – Asian 2-3

Innovative 8-5

Community commitment + employees 9-9

Weaknesses 1-10 Trend

High fixed costs 9-9

Low volumes 10-10

Sub-distraction...