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South African Food Producers: Van Heerden Foods Essay

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Van Heerden Foods: Van Heerden Foods is one of the largest food producers in South Africa whose greatest business strengths were powerful brands and loyal customers. The company has a strong track record as an innovator and a well-funded R&D budget. However, the food manufacturer has some weaknesses like the recent loss of top management talent to its rivals and a cultural resistance to change that reduced response to market forces. In addition some key threats have been developing for several years including the success and increased market share of less costly, private-label brands. Secondly, the South African market has been a key target for various overseas manufacturers who are using aggressive marketing strategies. Moreover,…show more content…
In this case, a decision had to be made on how to get the company back on track in light of the difficult challenges it had experienced in recent years. Following a comprehensive analysis, the CEO identified the decision to be made i.e. the best strategy towards transforming the firm into a highly-flexible, customer focused company. Secondly, relevant information was gathered in attempts to identify the most appropriate decision. This is an important step because many decisions usually require gathering relevant information (“Decision-making Process”, n.d.). This process was completed through examining the strengths, weaknesses, opportunities, and threats of Van Heerden Foods. Third, the alternatives were identified including considerations on whether to acquire JF Foods or continue with aggressive pricing to increase market share. Fourth, Don Stransky weighed the evidence by listening to contributions from senior managers such as Jennifer Le Roux, the services division head, and Sam Botha, the Chief Financial Officer. However, the Chief Executive Officer and Van Heerden Foods did not complete other steps in the decision-making process. They did not choose from the alternatives, did not take action, and did not review or evaluate their decision. Therefore, Don Stransky and Van Heerden’s decision making process was incomplete and ineffective. Decision-making Styles: Even though the
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