LOGOPLASTE: GLOBAL GROWING CHALLENGES Harvard Case Solution & Analysis

LOGOPLASTE: GLOBAL GROWING CHALLENGES Case Solution

Problem Diagnosis

            Logoplaste Company is one of the leading players in the rigid plastic containers industry and it was the top 10 manufacturer in the year 2010. Since the inception of the company in the year 1976, it had created a strong competitive advantage in its Portuguese market and by the start of the year 2010, it had expanded into many international countries of the world through its ‘hole in the wall’ manufacturing concept for the major blue chip companies such as P&G, Coca Cola and Heinz.

            In January 2010, the owners of the company were debating about a more dramatic growth and expansion strategy for Logoplaste when the most of the business world was still overcoming the recent financial crisis. By the year 2010, the total sales of the company were about Euro 300 million and it operated a total of about 60 plants across the five continents. However, the clients of the company which comprised of the major blue chip companies required Logoplaste to expand its productive base and expand its operations globally to support their latest demands.

            This required the management of the company to take a bolder growth step in order to sustain the current growth rate and the profitability of the company. A range of options are available for the company to achieve this, therefore it could either expand its productive base for its international clients, target the local firms which are operating in the current markets of the company, acquire one of its strong competitor to become a major player in the industry among the top three or the management could also adopt a combination of these growth strategies. A detailed situation analysis and interpretation through mental model needs to be performed before the best course of action of recommended for Logoplaste.

Analysis

            The analysis of the situation faced by Logoplaste has been performed by first assessing the threats and the opportunities facing the company and then analyzing the situation of the company through a mental model. After this the strategies available for the business expansion have been analyzed and a communications plan has been developed along with final recommendations.

Assessment of Logoplaste Situation in Market

            The current position of the company is strong and the management of the company has maintained a growth rate of about more than 15% for the past 15 years. The performance of the company could be also compared with its competitors as shown in the exhibits.Nevertheless, there are many threats as well as opportunities faced by the company. These threats and opportunities have been assessed as follows:

Threats

            First of all, if we assess the major threats faced by Logoplaste, then the first threat which is starting to hinder the current position of the company in the market is that the current major clients of the company which comprise of the major blue chip companies such as P&G, Coca Cola and Heinz have started to demand a higher level of sophistication and service from Logoplaste.

            However, in order to finance these needs, Logo plaste needs to have a larger productive base and huge investments would be required by the company. Since the company has now expanded internationally around five continents, it is now considered as a big supplier of the plastic containers and this brought new challenges and threats for the company. For instance, the clients of the company now require higher level of attention and detail from the company regarding the major issues and this was proving to be difficult for the company to meet with its current resource base.....................

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