Natureview Farm Case Study
Natureview Farm Case Study
Table of Contents
Organic Growth and Thoughts of Expansion.............................................................................2
Evaluating Opportunities and Potential Issues...........................................................................2
One Choice, Three Possible Paths................................................................................................3
Option #1: New Market Development with 8-ounce Cup Size...................................................3
Option #2: New Market Development with 32-ounce Cup Size.................................................4
Option #3: Product Development with Childrens Multipack.....................................................4
Decision Criteria and Analysis.....................................................................................................5
Recommendations: More Than One Strategy?...........................................................................5
Appendices......................................................................................................................................6
Appendix A: Placement of Strategic Options.........................................................................6
Appendix B: Cost-Benefit Analysis of Strategic Options.......................................................6
Appendix C: Financial Value Added Analysis........................................................................7
Appendix D: Pro Forma Analysis of Strategic Options.........................................................7
Works Cited......................................................................................................................................8
were available to them. In general, Walker had a very tough task ahead of her. How was she
going to balance all stakeholder interests while also ensuring financial viability moving forward?
Before the organization decided on which path to choose, they needed to ensure there was a
system in place to evaluate the strategic advantages and risks of each option. Additionally, they
needed to figure out how to deal with any conflict of various stakeholder interests and ensure
their channel management strategy could reconcile any issues that may arise. Now, an entrance
into the supermarket channel in a noticeable and widespread fashion would cause friction with
their natural food channel. Was there a way for Natureview to accomplish an entrance into the
supermarket channel without majorly disrupting the sales in their natural foods channel?
Additionally, if they chose to the new product offering in the existing natural foods channel,
would there still be a way for them to develop a possible entry strategy into the supermarket
channel that would allow for incremental adoption as opposed to an all-at-once mentality?
These are the questions that needed to be answer and the issues that needed to be resolved before
Natureview could narrow their three choices down to one final recommendation. With that in
mind, the financial and strategic benefits and risks of each option will now be evaluated.
option would greatly hurt the relationships and revenues generated from the high price-point
natural foods channel.
Appendices
Appendix A: Placement of Strategic Options1
Costs
Utilitaria
n Ruling
(1-10)
Option #1
Option #2
Very high revenue
Intermediate revenue
potential
potential
Greater scale
Positive net income
achievable
venture
Natural food channel
Unknown effect on natural
relationship damage
foods channel relationship
Operating under a net
loss
More harm than benefit
More benefit than harm with
with large-scale market
a medium-scale market
entry (4)
entry (7)
Option #3
Highest profitability
Maintain natural food
channel relationship
Lowest initial investment
Lower revenue addition
*For slotting expenses: 101 retailers; $10,000 fee per SKU per retailer; Option 1: 6 SKUs; Option 2: 4 SKUs
10
Works Cited
"Ansoff Matrix Template and Professional Matrix Software." Ansoff Matrix Template and
Professional Matrix Software. Web. 31 Mar. 2015.
Fleming, Karen M. "Natureview Farm." Brief Cases. Harvard Business School Publishing,
7 June 2007. Web. 31 Mar. 2015. <https://cb.hbsp.harvard.edu/cbmp/content/32486931>
11