Silver Fern Farms Case Study: Analyzing Strategy and Responsibility

This case study provides an in-depth analysis of Silver Fern Farms (SFF), focusing on key stakeholders such as management, suppliers, customers, and the government, and their respective expectations. It highlights SFF's commitment to social and environmental responsibility, emphasizing initiatives like scholarships, charitable trusts, and drought assistance. The study further explores SFF's cultural web, characterized by symbols, power structures, and organizational structures that promote teamwork and innovation. Finally, it examines the value chain analysis, detailing primary activities like inbound logistics, operations, outbound logistics, sales and marketing, and service, to identify areas for competitive advantage. Desklib offers this assignment as a valuable resource for students, alongside a wealth of study tools and solved assignments.

Running Order: CASE STUDY-SILVER FERN FARMS 1
Case Study-Silver Fern Farms
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CASE STUDY-SILVER FERN FARMS 2
Case Study-Silver Fern Farms
Part A
Question One - Key Stakeholders and Their Expectations
Management:
The management of Silver Fern Farms are the key stakeholders when it comes to setting
of business objectives and the company strategy. The management are responsible for leading
the company into success by coming up with different strategic initiatives and analysing and
resolving any underlying issues. They would like to see all projects succeed. As demonstrated in
the case, through management, the company has been able to regain its position in the market by
coming up with various initiatives. One such initiative is debt repayment (Slack,2015). The
management have been able to come up with ways of SFF being able to sell more hence
increasing profits and being able to repay the debts that were pulling the company down. Further
to this, management have been able to improve the organization’s operational efficiency through
staff training and adoption of lean methods of manufacturing hence leading to better processes
and customer service.
The management expects staff to perform well and have their goals aligned to that of the
company. Silver Fern Farm has more than 7000 staff across its branches and the management has
created cutting edge processing plants which it considers to be its innovation centres.
Information retrieved from the market is used in ensuring that the staff are producing quality
foods in line with the demands of the market. Management ensure that the staff are always
improving on their skills so that they master their craft and perfect their skills
(Rothaermel,2015). The management further ensures that the staff take approved training courses
from the New Zealand Qualifications Authority so that they achieve their full potential and
leverage SFF into achieving its business objectives and strategy.
The other expectation of management as stakeholders is to ensure that SFF maintains a
strategic position in its industry. To do this, the management has ensured that it has a team of
talented staff who use their skills to produce the best lamb, beef and venison, drawn from New
Zealand’s best livestock. Production of quality enables the company to attract and retain a

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myriad of customers. SFF also invests in state of the art technology to be able to provide the best
to its consumers. The x-ray systems enable the company to get much needed information on
animal perfomance hence improving the decision-making process to cut what is best suited to
customer needs. SFF also focuses on the ‘plate’ first through identification of customer needs.
Suppliers:
Suppliers are very important in the SFF stakeholder list. SFF’s major suppliers are the
farmers and they determine the quality of products that finally reach the consumer. SFF together
with farmers has built a programme that has been tailored to New Zealand’s farming conditions
while leveraging on international best practice. This has led to suppliers being trained on lifting
standards in animal husbandry and farm management. The SFF programme ensures that farmers
achieve farm assured status by ensuring the farm is trained by an SFF livestock representative
and then audited by a recommended farm auditor (Rothaermel,2015). While auditing, the audit
covers animal health, animal husbandry and welfare, stock, animal nutrition, environment and
facilities. This has ensured that the suppliers meet very high standards that have enabled SFF
achieve its business objectives and strategy by producing quality meat products. SFF has also put
in place the farm IQ system that is aimed at helping farmers to manage their animals, land and
perfomance of their farm employees. The result of this is farmers being able to record, analyse
and report efficiently.
Customers:
Customers are very vital since the business exists because of them. Silver Fern Farms
strives to ensure that the customers get the best quality meat. The company strives to ensure its
customers are taken care of in terms of providing a robust customer care system that ensures
there is adequate feedback provision and that customer queries and concerns are taken care of.
One of the programmes that SFF has put in place is the Eating Quality System (EQ). This is a
process which is science backed and allow consumers to have a better beef eating experience.
This quality system rates beef using seven scientific criteria which have been proven to highly
contribute to the eating of quality red meat (Slack,2015). The customer gets high quality of taste,
tenderness and juiciness. The cuts are chosen by a master grader who then ages them with care
for 21 days and enables the beef to have a quality master grade.
The Government:

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The Government is an important stakeholder since it makes the rules and regulations.
Rules and regulations differ greatly in different countries. Whatever rules and regulations that
have been set up enable a SFF to be able to penetrate the business environment. Government
rules and regulations either favor a business or make it difficult for the company to do business.
Various governments have supported SFF and enabled the company to be able to successfully set
up and further export to different countries.
Question Two-Importance of Social and Environmental Responsibility for SFF
Organizations must engage in both social and environmental responsibility is they are to
gain acceptance by the community. It is now a requirement that businesses engage in sustainable
practices that do not cause harm to communities in any way. It is paramount that businesses try
and follow the United Nations Sustainable business goals so that they are in line with what is
required in terms of meeting social and environmental goals (Rothaermel,2015). SF engages in
various activities that enable it to give back to the community. One of these activities is offering
of scholarships to the youth. The company gives scholarships each year that enable the youth to
advance their careers. The company in partnership with farmers also developed the Te Aroha
events center charitable trust. Further to this, SFF has a feed drive that helps farmers to manage
during times of drought.
Social an environmental responsibility is important to SFF since it improves the public
image. Since the company has demonstrated its commitment to different initiatives, they are
perceived as philanthropic and consumers would like to be associated with such companies.
Consumers feel good when they purchase the products or services of a company that has been
relevant in their midst. SFF can also further improve their public image by supporting different
events through their staff volunteering or them making donations. The more activities that the
company engages in, the more it becomes favorable in the eyes of consumers and this is
significant when it comes to increasing and sustaining customer numbers.
SFF engages in social and environmental responsibilities since it also gives them a
chance to increase media coverage on the company. This is a chance to get free publicity and
make consumers aware of the company’s existence. It will make non-customers get curious
about the company hence leading to more awareness (Slack,2015). When organisations like SFF

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carry out certain responsibilities, the media covers them hence enabling them to also form
relationships with local media stations. The more activities the company engages in, the more the
media coverage that is received by the company hence the better the benefits. Media will enable
SFF to shed a light of positivity on the organization.
SFF can boost engagement of its employees through social and environmental
responsibility. The company will be able to attract and retain good employees since employees
prefer working for a company that has a good public image. This leads to better productivity for
the company. Research shows that about 60% of employees who bear pride in the company’s
social and environmental responsibility are engaged at work hence translating to better results for
the company. Employee retention is also higher in a company that has a good corporate image
especially through social and environmental responsibility. The company does not have to incur
unnecessary costs by constantly having to replace employees. On the contrary, there will be a lot
of costs saved as employees tend to stay in such organizations for a long period.
SFF will be able to attract and retain investors if it maintains a good image of a company
that is socially and environmentally responsible. Investors are only willing to place their money
where they know it is being used well. An organization that volunteers its time and that of its
employees to serving the community shows an investor that they are not only interested in profits
but also in doing the right thing and helping their communities to thrive.
Question Three-Cultural Web in Relation to Strategy
3 elements of cultural web
The cultural web is an important aspect of any organization as it defines the
organizational culture that has been adopted. It is an important way that organizations can use to
build their brand and stand out in whatever industry they are operating. The cultural web in SFF
is depicted by three factors which are symbols, power structures and organizational structures.
When it comes to symbols, an organization like SFF displays this in terms of logos, offices and
jargon. It can also reflect the culture that has been adopted by senior executives that are working
for the organization. SFF is characterized by a flat structure that enables employees and their
executives to work in open spaces and at times address each other in an informal way. The
company’s logo is outstanding, represented by a fern logo inside a circle.

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Power structure is another element of the cultural web that is used by SFF. The
company’s power structures affect the core assumptions. SFF is characterized by leaders who
influence the employees in a positive manner. Power is distributed within the organization as the
leaders have allowed all employees to display their potential and influence each other in a
positive manner. The leadership believes that for the employees to be innovative, they need to be
given a positive environment and space where they can express themselves (Rothaermel,2015).
These beliefs are strong such that innovative employees are rewarded. Thanks to innovation, SFF
has been able to grow and come up with unique ideas for its business.
Organizational structure is the third element that represents SFF. The company has been
able to maintain a flat structure which encourages team work and competition. There is
teamwork between staff and various departments, hence leading to work being enjoyable for the
employees. Employees also practice healthy competition since those who perform well are
recognized and rewarded by the company. Team work and competition have led to efficiency in
processes.
The above three elements, symbols, power structure and organizational structure are
interlinked. Power structure is usually a reflection of the type of structure that an organization
has developed. In this case, the positive power structure reflects the flat structure that has been
adopted by SFF. Power and organizational structure have also enabled the company to come up
with a strong symbol that is a representation of the overall brand.
Question Four-Value Chain Analysis and Its Importance in SFF
Value chain analysis is a tool that is very important as it is used to analyse the internal
activities of an organization. The aim of this is to recognize the activities that are most valuable
to the company and the ones that still require further improvement so that they can lead to a
competitive advantage. In SFF, just like in any other organization, the value chain is made up of
primary and secondary activities (Rothaermel,2015). The primary activities in this case include
inbound logistics, operations, outbound logistics, sales and marketing and service. These are the
core internal activities for SFF. Inbound logistics involve how the raw material will be sources
and get to the factory. Operations are all the activities done within SFF to ensure that the
company efficiently and effectively produces a product that is in line with consumer standards. It

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deals with the processes used to ensure that SFF products are produced and supplied
appropriately. Sales and marketing activities are those used by the company to attract customers
so that they are aware of the availability product and where can purchase the same. The sales and
marketing activities are aimed at ensuring the company optimizes sales. Service involves the
type of customer service that SFF consumers receive. It is how consumers are sold to the product
and whether their complaints are resolved and feedback taken into consideration. The secondary
activities carried out by SFF are those which support the company to ensure that the primary
activities are effectively carried out. These include infrastructure, human resources, procurement
and technology. In SFF, the company has laid out infrastructure that enables processes to be
carried out smoothly. There is efficient communication within the company that supports the
infrastructure (Slack,2015). The company has also invested in qualified human resources, who
are further trained to ensure that the company has knowledgeable and innovative staff. The
company has also put in a robust procurement department that ensures all supplies matters are
handle efficiently. The technology used by the company is the latest so that the customers can
get the best out of the organization.
Value chain analysis is important in SFF because it leads to a reduction in delivery times.
Through value chain analysis SFF has been able to reduce the days taken to get supplies from
farmers and male deliveries to the consumer (Rothaermel,2015). This has led to more customer
retention since SFF exceeds their expectations when it comes to delivery of products.
Value chain analysis has enabled SFF to optimize its inventory. The company has been
able to work closely with farmers to reduce the delivery times and therefore coordinate all the
outbound processes with the inbound logistics (Slack,2015). There is no excess inventory hence
no waste. The company has also set up its system in such a way that no shortages are
experienced.
Value chain analysis has enabled SFF to improve its customer relationships. The
company has improved its response times and minimized costs of customers. Customer
relationships have been greatly improved with the current value chain activities that the company
carries out. Further to this, the company has been able to enhance revenues and profit since value
chain processes have been streamlined.

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PART B-STRATEGIC DIRECTION
Question One-Business Strategies
Generic Business Strategies:
SFF has engaged itself in the differentiation strategy. This involves a company making
products or services offered unique and more attractive than those of the competitors. In this
case, SFF has come up with meat products that are unique and appealing to its customers. The
company has been able to do this by engaging in good research and innovation. This has enabled
it to come up with products that are highly favorable to customer needs. Further to this, the
company can deliver high products and this has been made possible by the company ensuring
that it focuses on quality from the farm to the time the product reaches the customer’s plate. SFF
has also been able to differentiate itself by putting in place a unique sales and marketing team
that engages in high quality advertising hence enabling the company to attract several consumers
(Slack,2015). SFF has stayed on top of its new product development process, hence enabling the
company to stay ahead of competition when it comes to meat products.
Apart from the above, SFF has used the focus strategy in concentrating on niche markets
that mostly love beef, lamb, venison, mutton and offal products. The company has been able to
understand the dynamics of the market hence develop products that are tailored to niches. Due to
this, SFF has been able to build a strong brand following among its customers.
Strategy and Competition:
The differentiation and focus strategy has been pivotal for the company when compared
to its competitors. The major competitor for SFF is AFCO and is the second largest meat
producer after SFF. The competitor has strong Japanese support when it comes to sausages and
seafood processing. The differentiation and focus strategy has enabled SFF to maintain its
number one position in the market. The company has been able to successfully do this by
looking at the market gaps and filling in gaps using their products. This has been done by
ensuring employees handling the company products receive proper training and certification and
are able to fully focus on giving the customers quality. The company has been able to produce an
array of products under each category, hence giving consumers a wide variety to choose from.
The company has also been able to use latest technologies that have enabled it to achieve a
competitive advantage. SFF can give the best cuts due to technology, hence making consumers

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to love the organization’s products. Further to this, SFF has been able to maintain a good
relationship with suppliers by supporting them through various programs and enabling them rear
animals in the best way possible. This has enables the farmers to be committed to quality hence
supply the best animals which translate into great sales for SFF.
Threats and Opportunities with Maintained Status Quo:
With the status quo that SFF has maintained, the company has been able to face various
opportunities and threats. The first opportunity is that the company has an opportunity of
penetrating further global markets. With the current quality that is being produced, the company
will be able to attract and maintain an array of customers. SFF has an opportunity of extending
its product range. The company with its innovative nature can be able to come up with more
creative products that will enable it to attract more consumers (Rothaermel,2015). The company
also has an opportunity of attracting and retaining more customers, through its marketing and
sales strategies. The market is still large hence the company can attract more customers. The
threat that faces SFF is the rules and regulations set in different countries that may not be
favorable to SFF. This can affect the supply of products to such countries. Another threat faced
by SFF is competition. There is increasing competition in the market where SFF operates hence
the company must keep being innovative to maintain its top position.
Question Two -Strategic Directions
The Ansoff Matrix:
When it comes to the Ansoff matrix, SFF is under the market penetration stage, where it
can focus on selling the already existing products to the existing markets. SFF aims to increase
the market share of its current products and this is done by offering prices which are competitive
and carrying out sales promotion. SFF also wants to secure dominance of its markets,

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considering the growth of various competitors. The company wants to retain the customers that
had already been acquired. The company also wants to increase product usage by customers
hence it has differentiated its products to offer wider variety
Future Strategy and Justification:
The company is looking at product development, where it is considering developing new
markets for its retail cuts. The company has long been relying on frozen cut. There is a lot of
growth since the industry has become stable hence meaning that there is an opportunity for more
competitors to enter the market. To maintain the number one position, SFF must continue being
innovative and developing products further, so that new markets are attracted by the company.
Question Three-Internationalization Strategy
Key Drivers for the International Strategy:
SFF uses several key drivers to maintain its current international strategy. The first one
consideration of local situations. The company adapts to local price structures and customers
hence enabling it to penetrate foreign markets effectively (Rothaermel,2015). The company also
makes considerations in terms of cultural factors hence selling only products that appeal to the
specific country where they are operating.
SFF also has tailored its structure according to its operations. The company has
established offices in key markets hence ensuring that the structure used favors certain markets.
The main office can influence the activities that are carried out in other smaller offices all over
the globe. SFF also manages risk actively. The company protects is intellectual property and
ensures that it legally complies to any regulations laid out by various governments.
SFF has ensured that it has the financial resources needed to maintain all its international
businesses. This has enabled the company to effectively invest and beat competition in the
international business scene. It has also ensured that it employs skilled and experienced staff.
The company employs locals in whatever countries they are launching the business. The locals
have key knowledge when it comes to legal frameworks and how to penetrate the market. SFF
also have studied the market characteristics well. Before they invest anywhere, they do market
research and determine the potential of that market. They also come up with the most effective
strategies that are suitable for penetrating different international markets.

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Markets Prioritized by SFF and Justification:
SFF has prioritized markets in the United States, Middle East, Europe, Asia and the
United Kingdom. This is because the company has been able to successfully set up and grow in
these markets. Further, these markets still present opportunities for the company in terms of
coming up with new products and attraction of new customer segments (Slack,2015). These
markets have also been favorable in terms of legislation and government support. Due to this,
SFF has been able to set up regional offices that enable them to monitor key markets.
Strategies Used to Expand into International Markets:
SFF uses the partnering up strategy to penetrate new markets. This is demonstrated by the
Shanghai Maling partnership. Further, SFF operates like a farmers’ cooperative where customers
are given shares based on their supplies to the company. The company has been able to use this
strategy whenever it gets into international markets. Partnering with local farmers and other
organizations has enabled the company to successfully gain a foothold in international markets.

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References
Slack, N. (2015). Operations strategy. NY, John Wiley & Sons, Ltd.
Rothaermel, F. T. (2015). Strategic management. LA, McGraw-Hill Education.