The Halderman Companies essay
- Which are this firm’s competitive advantages? Are they sustainable or not? Why? Support your statement.
In actuality, The Halderman Companies faces considerable problems because its rivals operating in South America grow stronger. In this regard, it is possible to refer to Argentinean company El Tejar. El Tejar leased the land from small farmers and centralized management (Goldberg, 2004). In such a way, the company concentrated in its hand a large part of agricultural trade of the country because the company possesses no land but still manages farmlands and can distribute and sell crops collected by farmers that put the company in an advantageous position in the market.
Also, it is possible to refer to Brazilian Gruppo Maggi. Gruppo Maggi had the vertically integrated soybean value added chain. The company built transportation system and infrastructure to deliver crops from farmlands to ports and trade centers (Goldberg, 2004). In such a way, the company takes advantage due to the transportation services and infrastructure that the company provides for farmers.
The Halderman Companies provided professional farm management services. The Halderman Companies offered diverse lease types that meet interests of farmers (Goldberg, 2004). In such a way, the company has reached the high level of flexibility because now the company can offer its clients any type of lease they consider the most beneficial for them. Thus, the company takes competitive advantage of the customer-centered approach. Furthermore, the share lease implied sharing costs and benefits between the Halderman Companies and farmers. In addition, the Halderman Companies helped clients to cut costs.
However, such competitive advantage of the Halderman Companies can hardly be sustainable. At the moment, the company insists on the expansion of farmlands that contradicts to the concept of sustainability. In addition, the company current position focuses on the maximization of profits of its clients and its own profits, regardless of the long-run prospects of the business development and impact of the company on the environment.
- What recommendations can you make to the CEO of this company in terms of how to manage future growth and the firm’s international strategy?
Taking into consideration the current position of the Halderman Companies, the company has to introduce changes in its marketing strategy to enhance its position in international markets. In this regard, the land expansion is not enough but may be an effective tool to improve the performance of farmers and the company. However, this step will not bring positive effects in a long-run perspective, but this can be a provisional measure to ease the current position of the company and to enhance its competitive position in international markets at least for a while.
Furthermore, the company can follow the lead of South American companies. For instance, the Halderman Companies should refuse from diverse lease types, which now comprise about 100. Instead, the company should introduce the standard lease type that is beneficial for the company (Van der Borght, 2000). This measure will simplify the management and increase its effectiveness.
In addition, the company should focus on the trade helping farmers to sell crops. In fact, the company can attempt to concentrate the agricultural trade in its own hands. The company can buy out crops from farmers and sell them in domestic and international markets. In such a way, the company will enhance its position due to taking control over a large part of the agricultural trade in the US.
