ACCT10143 Accounting Behaviour And Organisations

ACCT10141
Accounting, Behaviour, and Organisations
Key West Key Lime Pie
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ACCT10142
CASE STUDY: KEY WEST KEY LIME PIE
1. What type of strategy (cost leadership/differentiation) does Key Lime Pie take
after the redesign of the store? Discuss in terms of personnel, resources and activities
performed. Provide a thorough analysis to justify your answer.
After an analysis of the Key Lime Pie case, the best strategy that the firm should take is a
complete differentiation. In as much as cost leadership is a key strategy in pushing a firm to the
top position, it needs a well-established firm with large annual revenue. Notably, before the
change brought in to the company by Marcus Lemonis, the firm operated a large capital of
approximately$1.4million with large debts and poor employee management. This, therefore,
means that even with the capital injection done by Marcus the new CEO, the firm cannot adopt a
cost leadership strategy as it needs to stabilize in the first place.
Differentiation as a key strategy is the best cause of strategic action that Key West Lime
Pie can take after the change as it will allow the firms to provide a superior product (Pie)
compared to other firms in the same industry. More so, differentiation is key in the provision of
high-end value to a firm's customers at an affordable cost (Cattani, Dunbar and Shapira 2017).
The strategy is also suitable as it provides a firm with the means to raise general profitability as
well as business long term viability which is a win-win situation needed by the owners of the
firm together with the employees. According to the new CEO, Key West Lime Pie needs a
completely new way of doing things as the old methods failed to work and earn the firm a good
profit margin. Therefore, the best way to attain this is to come up with a strategy that can
completely influence the behavior of everybody within the firm. The adopted strategy must be
able to provide direction and offer motivation to employees and owners.