Golden Gate Harvard Case Solution & Analysis

Golden Gate  Case Solution

Option 01: Growth Moratorium and Fix Existing Units

Another option available to Golden Gate is to stop opening-outlets for the next six months and focus on improving its supply chain efficiency,which would drive maximum value for the company. As per the advice of Chad Ovel – a partner at Mekong Capital; the decision of increasing the efficiency at the back-of-the-house operations would allow the company to get back on the track of having a strong financial position. The supply chain improvements-tend to include various key elements that would work as the strengths of the Golden Gate’s supply chain, such as: relentless investment, innovation, optimum inventory planning and management, multi-level supply chain, supplier code of conduct, product development, and robotics technology and logistics options. Additionally, the effective management of the supply chain would lead towards higher efficiency rate, improved cash flow and risk mitigation, reduced overhead cost, improved quality control, helping in keeping up with the customer’s demand, having cost efficiency and making the customer delighted.

Thus, based on the analysis and evaluation of both the options available to the company; it must pursue the option of improving the supply chain and accelerating its efforts on increasing its efficiency at the back-of-the-house operations, in the short term. Afterwards, the company is advised to expand its business operations in the emerging markets, to grow further in the market and to improve its financial performance for  the long run.

What might Mekong Capital do to differentiate itself from other PE firms in the eyes of Vietnamese business-owners?

Mekong Capital should differentiate itself from other PE firms in the eyes of Vietnamese business owners through being committed to bring a professional, reliable and a quick financial solutions to the consumers. The company could get competitive edge-over the market competitors through IT infrastructure, professional management team and strong corporate governance. Additionally, the company should keep investing in the fast-growing companies, with an ambitious expansion plan as well as a strong commitment towards building a management team which-should be capable of applying best practices and successfully-executing on those expansion plan. The steps through which the company can add value to the business and differentiate itself from other private equity, firms are as follows:

  • Focus on improving the operations.
  • Build strong and an effective management team.
  • Introduce external experts and best practices
  • Leaders personally commit to invested firms, achieving their long-term goals and vision.
  • Offer incremental capabilities to entrepreneurs, which would make it different from other private equity firms who simply offer capital.
  • Provide aid to firms, helping the min improving their operationally
  • Build and maintain strong and long-term relations with the investments, in order to ensure long-term success and growth in the market.
  • Foster the culture of collaboration and communication, which would serve as a model for the invest firms. It is because the strong culture provides the basis for the team members to be effective, independent and empowered at delivering outcomes.
  1. Any improvement in the performance of the company’s investment would require profound transformation. To strengthen the market performance and to gain a competitive advantage; the company needs to address the problems of imperfect corporate culture and internal management and lacks of technical knowledge. The corporate culture’s transformation starts by exposing, identifying and handling the persistent excuses and complaints within the organization.Whereas, the second stage of the transformation process includes the shared set of values and development of a new framework for investment, which in turn would lead towards improved business results. Moreover, the company’s management team should take actions to make the company's employees committed to the long-term future at Mekong Capital & to deal effectively with the facts rather than dis-empowering the interpretations. After the competition of the process; the company needs to shift its focus on identifying the key performance indicators and measurements that would be most relevant for the implementation of the milestone (Miles, 2010).......................
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