Zambia Pork Products Limited Zambia Pork Products Limited is the country\'s lead
ID: 435749 • Letter: Z
Question
Zambia Pork Products Limited Zambia Pork Products Limited is the country's leading company in the processing and sale of pork meat. Industry sources however estimate that the market growth rate of pork products has now declined for two reasons. First, there is a growing population of new converts to Islam and the religion does not permit its followers to consume pork. Second many Zambians, concerned about their health, are aware that pork contains fat and they are, for health reasons, avoiding any food which they perceive to contain fat Sondashi Enterprises Mr. Samson Sondashi owns and runs a three-acre farm on the outskirts of Lusaka where he grows maize, soya beans and bananas, Like most small scale farmers in Zambia, he feels he could achieve more if only he had capital and equipment. He has now been approached by a Lebanese-owned firm that has offered to buy all the maize, soya beans and bananas. This order represents far much more money than Mr. Sondashi has made and could ever make. REQUIRED: Using the Boston Consulting Group product portfolio matrix to the scenarios described above a. Identify and describe the opportunity/threat and strength/weakness in each scénario b. Illustrate the scenario described in the matrix c. Discuss and justify the appropriate strategy (s) END OF THE QUESTION PAPERExplanation / Answer
a) For the first case
The business of pork is on the verge of decline due to reasons of conversion of religion and majority of population opting for healthy food options. Hence the market growth rate as well as relative market share is low for the particular business.
For the second case
As seen from the case there is low market growth rate (cash usage) but relatively high market share (cash generation). The owner of the farm required more capital to expand his operations but eventually ended up selling all the farm produce at a profitable deal.
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