Ican 2023 Corporate Strategic Management And Ethics Question 1

Oyinbo Industries Limited is a medium-scale enterprise involved in the processing and packaging of local (traditional) food items for the Nigerian market. Its product portfolio includes Instant Elubo Powder, Instant Pounded Yam Powder, and Instant Beans Powder, all of which have been successful in the Nigerian market. The company hopes to expand its market coverage to the United States, United Kingdom, France, Canada, and United Arab Emirates, which are believed to be viable new markets for the products. To achieve these goals, the company hopes to start by strengthening its position in the Nigerian market. To this end, the management hopes to improve the market share, sales growth, and profitability of each business unit. In pursuit of these objectives, the company expanded its portfolio by introducing the following products into the market: Instant Plantain Powder, Instant Soya Beans Powder, and Garri Ijebu. The table below shows current market and sales growth for each product: The company’s current market growth rate for each of the products is over 10%. The fast-growing nature of the market is attributable to population growth and the growing concern about the hygienic conditions of food items sold in the open market. The company hopes to take advantage of this opportunity to become the biggest producer and exporter of processed and packaged food items in the country. Competitors of Oyinbo Industries Limited are largely cottage industries and small-scale producers, but command substantial share of the market. Entry into the industry is not regulated. Most of the firms in the industry rely on small farmers in the rural areas of the country, and they are many. As part of its growth plan going forward, Oyinbo Industries Limited plans to acquire a large expanse of land in Kwara State for farming. The firm hopes to use this farm to secure supply of the needed raw materials. The Company also hopes to strengthen its relationship with a local fabricator of processing equipment, which supplies the plants and machinery that the firm needs. The technology that is used in the industry has remained largely unchanged in the last 20 years. In pursuance of its growth strategy, the firm plans to leverage on its extensive distribution network and internal production capabilities to increase its market share of existing products and push the sales of the new commodities. However, the incessant power failure and frequent breakdown of the company’s equipment constitute a major concern for the management of the company.