Brannigan Foods: Strategic Market Planning
1.How would you analyze the process Clark is using to determine his best “investment bets” for allocating resources?
Keep his analyze and use the information from the investment to judge which is correct
2.Which of the four managers’ proposals should Clark favor? Absent any resource constraints, which of the four departmental directions do you think is the most viable? Which is the second best strategy? Which is the least viable? (In considering Mackey’s proposal to acquire a company, do the quantitative analysis on Red Dragon Foods only.)
Anna Chong’s plan: Brannigan Foods also need new products even most people do not accept it. Without New products, Brannigan Foods can’t compete with its competitors and Brannigan will always pay a lot of money to copy or buy others’ products to enter the primary market. Creating something new or get it from some small company should be the most profitable for Brannigan Foods.
Acquire Price(MM): 4.2*6=$25.2 4.2*7=$29.4
Total sale in 2018(MM): 2913*99.7%+36=$2940.261
AD: 408*45%=$183.6 170*45%=$76.5
Interest from Red Dragon(MM): 4%*8230=$329.2
3.If Clark chooses a strategic direction that favors only one department, what negative effects could this have on other departments? How can Clark mitigate the damage?
Srikant Tipha is trying to catch the customers hobby in 3 years, Claire Mackey is looking for a plan which could bring more profit for Brannigan Foods in 5 years. Anna Chong is taking the risk, but her plan brings Brannigan Foods a chance to be a leader in the next 3-5 years. Bob Pugh provide a more detail plan for recent years. A good manager should always have a plan B. If Clark only choose one of them. The Brannigan Foods might lose the chance of the further or get too much stress in recent years.
For example, Brannigan Foods needs new products to compete with its competitors. Without new products, Brannigan will always pay a lot of money to copy or buy others’ products to enter the primary market. Creating something new or get it from some small company should be the most profitable for Brannigan Foods. However, if Clark doesn’t have a good plan for recent years, too much stress might bring Brannigan Foods to the edge of the bankrupt.
4.What effects is the change in the strengths and weaknesses of competition having on the Brannigan’s division? How does this impact the investment decision?
Anna Chong: invest in organic growth from internally developed new products.
She believes that Brannigan Foods should be a leader of the market. Do not follow others too much. Brannigan already had some plans:
Increase advertising and promotional support for new products.
Buying some small companies because of it less expensive and ultimately much more profitable.
Serval new products are ready for lunch.
Anna Chong’s long-term plan will help Brannigan Foods become a leader in the market.
5.Given the information in the case, what strategic course do you think the division...