Blue Ridge Spain Harvard Case Solution & Analysis

Blue Ridge Spain Case Study Solution

Major Problems in the case:

The problem in the case starts with the situation when there was disagreement between the new owners of the company Blue Ridge for strategic alliances with joint ventures. A former profitable venture named as Terralumen was having a strategic partnership with Delta foods which was going through the dissolution strategy by the Regional Director for Costas.  This company was not performing up to the mark due to the unrealistic goals set by the inexperienced owners of Terralumen.

New profitability targets and expected returns have been forecasted for Terralumen so that the issue of Delta to expand internationally in Spain, Germany and France by opening up the new stores can be resolved. Another major problem which was causing due to the termination of strategic alliance between the Blue Ridge and Terralumen as they were in strategic alliances for a long time and it was  providing a good return on investment for both the companies. So, it could have left a negative impression and this strategic alliance would have come to end in a worst possible way.

Moreover, short term goals were being considered by Sodergran such as earning more returns and profits by enhancing sales and they just needed cash for operating its business successfully. Another issue was selling the property by exercising his real estate transaction authority which is the false representation ethically.

The major issue is moving around the termination of the joint venture between Terralumen and Delta and the formation of the dissolution strategy by Costas.

Suggestions/ Recommendations:

Costas:

As it is analyzed from the case that there lies a strong strategic relationship between Terralumen and Costas so it is necessary to revise the targets so that they become easily achievable and create synergy for both the companies rather than setting challenging and unrealistic goals which turn out to be the end of their long lasting relationship.

Sodergran:

To make the situation viable, it is advisable for Sodergran to let the Terralumen run its operations in Spain and it should mainly focus on the operations of France and Germany. This will lead to achieve fore casted profits and once they meet their targets, Sodergran has an opportunity to acquire Terralumen and make it bound by its own policies of the business. The Profitable market of Spain will be the prime focus of business to remain in the market.

Blue Ridge Spain Harvard Case Solution & Analysis

 

 

Delta Foods:

Due to the positive and bright future, it is recommended for Delta foods to discard its decision to dissolve the Blue Ridge Spain so to avoid the negative impression in the market. To remain profitable, it is necessary for both the companies to remain in collaboration with each other and support the business of one another for generating more and more returns.

Alternatives for Sodergran are that it can take over control through purchasing Terralumen or it has an alternate option to let it run the operations of Spain.

Whereas, alternatives for Costas can be to revise the Terralumen targets as challenging but realistic goals and it can exercise the dissolution strategy......................

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