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Management 6 Pages

Cervus Equipment Corporation: Harvesting A New Future

Question

Describe Cervus Equipment’s existing corporate and business level strategies at the time of the case. Use evidence from the case to support your assessment. (10 marks)

Conduct an external analysis of the macro-environment of the North American Agriculture Equipment Industry and be sure to highlight both the potential opportunities and threats for Cervus Equipment. (15 marks)

Use Porter’s Five Force model to analyze the structure of the North American Agriculture Equipment Industry.  Given your analysis, what can you conclude about Cervus Equipment’s position within this market? (20 marks)

Conduct a VRIO analysis of Cervus Equipment’s resources and capabilities.  Identify the three most important, be clear on what each one is, and explain why you consider them to be the most important. (15 marks)

Based on your knowledge of Cervus Equipment’s strategy, and given the external and internal analyses, what strategic alternatives/options could you justifiably recommend to the company?  Explain. (20 marks)

Make BOTH a short term and medium/long term strategy recommendation for Cervus Equipment, justifying and explaining your answer with points from your analysis and facts from the case. (20 marks)

Solution

Title: Cervus Equipment Corporation: Harvesting A New Future
Length: 6 pages (1687 Words)
Style: APA

Preview

Cervus Equipment Corporation: Harvesting a New Future

Answer 1

For a company that had experienced tremendous growth in only 11 short years, there had to have been corporate and business level strategies that were put in place. Below are the corporate and business level strategies that had been put in place:

  • Principles over policy approach – the company did not only care about the growth and profitability of their business, but they also cared about service their community earnestly and with utmost respect. They had a reputation of integrity and goodwill. They not only cared about the community but they gave first priority to local suppliers and paid them over a reasonable period of time
  • Involving and allowing employees to make critical decisions about customers desires and requirements
  • Maintaining a ‘local’ view from its customers – they did so by purchasing from local dealers
  • Maintaining significant relationships with their Original Equipment Manufacturers - one of the challenges Cervus Equipment faced while planning to scale up was whether they would be able to continue to obtain small equipment traders at realistic valuations that would assist them in having acceptable payback periods.
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