Produce a case study of a strategic situation of significance to the organization and define the business issues it is facing. Provide an analysis and the strategic direction the organization should take. Make use of appropriate analytical tools, theories and frameworks.
The company is a small/medium agrochemicals retailers and distributor which buys agrochemicals from established mutinationals such as Syngenta, Monsanto, BASF, Bayer, etc and some generics and then sells directly to farmers who are the end users.
The issues facing the company can be summarised as follows:
1. Declining profitability due to increased competition, increasing costs, cheap generics flooding the markets, etc.
2. Difficulty in managing growth. There has been increasing in the branch network, increase in number of employees and thus coordination has become a challenge. Systems are falling behind the growth of the company.
3. Managing Work Capital. Difficulty in accurately forecasting sales and purchases. Generous credit terms have become the noum in the industry. There is evidence of over trading