Coronilla: Pivoting with a Social Purpose Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Coronilla: Pivoting with a Social Purpose Case Study Analysis

Partnership with its biggest client

Forming a partnership with the biggest clients holds some benefits and drawbacks. As the company has significantly establishedastrong business partnership with the biggest buyer in Switzerland. Almost 60 percent of the products are sourcedfrom Coronilla, and at the same time, the business of Coronilla is 30 percent dependent on him. The joint venture between Coronilla and the buyer could provide Coronilla an ability to fully utilize the tacit knowledge and understanding gained from working with the buyer, so that the company could effectively implement its models in the Switzerland market.The joint venture would provide Coronilla with an opportunity to gain expertise and new capacity and access to greater resources. The Client would not be entitled to use his brand name with any other producer, which demonstrates that customers would not get confused with the actual brand.

On the other hand, the joint venture might lead to certain issues, such as: joint profit, joint control and a likelihood of the technology leak. Coronilla would have to share the profit and returns generated from the business operations with the client due to the 50:50 ownership. Additionally, the company would have to share its entire developed technology and information related to the manufacturing of gluten-free pasta with the client.

Decision Matrix

Decision criteria	Brand development strategy	New production facility	Partnership with its biggest client
Improved brand identity	9	6	6
Increased sales volume / sales synergy	9	8	7
Efficient export logistics	7	9	7
Reduced operating expenses	7	5	9
Total	32	28	29

Recommendations

On the basis of the alternative analysis and decision matrix, the best suggested alternative is creating the brand development strategy as it would lead to greater differentiation and appeal in new international markets, new revenue streams, new market share, building trust, and employees’ retention and motivation. The launch of the product in thenew market with improved features would help the company to create a larger customer base, which is of paramount importance to achieve greater revenues.

Collaborating or forming a joint venture with its buyer would not be a strong strategic decision for the company,because the company already generatesrevenuesfrom its major customer and buying its client would not reap more financial and non-financial benefits. Also, the company would miss the opportunity of global expansion and might not be able to compete with the competitors in terms of seized share of international markets. Similarly, setting up a production facility in already served or home markets i.e. Peru and Bolivia would not help the company to gain the sales synergy and increased international productivity. Through expanding the business operations in global markets, Coronill would be able to reach the new customer base & follow the old ones, hence meeting the increasing demands.It would enjoy new knowledge, experience and contacts etcetera. The capacity of production would increase, thus representing a positive outcome.

It is also recommended that Coronill Company should also improve the quality of its decisions in order to have better results derived after an implication of such decisions. The values and culture of the R&D are also vital.The company should maintain a strong, successful, fast and positive culture, which might help the company to hold on to the best players in the company. Furthermore, the company has to ensure that the customers are perceiving a positive image about the offerings of the company. Due to the changing customer preferences, intense market competition, and emerging trends; the company would have to make sure that all the operations are effective and it is following the market trend. The company has to overcome its weaknesses and strive to exploit future opportunities.

Conclusion

Coronilla is a Bolivia based provider of the original line of quinoa-based pasta as well as other organic and gluten-free products to the entire markets of the world.Because of an outstanding nutritional value of the quinoa with unique and exceptional attributes, there were many scientistswho sequenced the genome of the plant of quinoa.After the years of continued growth and success, the company is now contemplating something else for having a continuous success.There are three strategic areas, which require strategic decision, including: considering brand development strategy, building a new production facility and forming a partnership with the biggest client. The best-suggested alternative is creating the brand development strategy as it would lead to greater differentiation and appeal in the new international markets, new revenue streams, new market share, building trust, and employees’ retention and motivation......................................

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