Polyface: The Farm of Many Faces Harvard Case Solution & Analysis

Evaluation of Alternatives

Similar Business Philosophy:

With the idea of staying as such the business has been running  on the philosophy of Salatin’s father, which is that the company cannot grow and expand itself. The reason is quite simple, it does not have the capacity with the current land to produce more products at the farm and cannot cater the needs of the customers. With the current idea and strategy the farm, Polyface cannot increase the profitability because of the lack of resources. With the current situation, Salatin can maintain customer satisfaction with limited number of clients.

However, this idea will not increase the market share and thus Polyface has to remain content with what it is earning already. This option of staying small but user-friendly is aligned to the company’s strategy. The option of buying a new place will help to maintain quality because it has been serving limited number of customers for more than a decade. The supply chain network with the number of animals will also be easier to manage when the expansion strategy is not adopted by Salatin. Overall, this idea does not seem to be an attractive one because if the growth potential exists in the market, then Polyface needs to expand itself.

Acquire more Land:

The alternate option to expand itself, Polyface can acquire land space and develop a new farm on the similar pattern. This idea looks good but in the long run it can back-fire  Polyface as the farm faces a lack of skilled workers to expand its operation. The reason as stated in the case, Salatin is concerned about who will manage the additional farm activities over there with only six full time employees at the company, it is actually difficult to come up with this new idea of expansion.

Following the option of acquiring land requires large capital investment from purchasing a land to developing hoovers, paddock, hoop houses, etc. This option if completed successfully will definitely increase the profitability because now Salatin and Polyface will be able to meet the industry requirements. However, in case of acquiring new space the customer satisfaction will be difficult. Acquiring a land will increase sales, market share and return on investment, but it is against the current strategy of the company. However, the move of growing is against the initial strategy of the company where it wanted to remain competent with current resources. Therefore, the option of acquiring a new land where similar farm can be developed is a costly and risky move with not a lot of expert employees at the farm who can move there and look after the operations which may be a difficult move.

Acquire Local Farm:

The third alternative for Polyface is to acquire a local farm with similar structure, animals and synergies. The option of acquiring a local farm will increase profit margins with maintaining customer satisfaction also because with a new farm Polyface can cater demands of diverse customers. This move will definitely increase the sales, market share and return on investment. However, the move will not be in accordance with business strategy of serving limited number of customers but with complete dedication and conviction. The idea of acquiring a local farm will retain the flexibility of having all the animals and bi-products intact. The idea of not opting to structure a new farm which obviously requires capital, management to maintain quality standards and expertise regarding all aspects, but by acquiring a farm Salatin can head the farm according to his quality standards and can keep a check on employees and train them accordingly. The move will also help manage supply chain activities of the farm because with a new farm, reaching new clients will be easier and distribution will also become effective. Therefore, with the results shown by the key decision criteria, the option of acquiring a farm with similar synergies will be the most feasible option.................................

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