Rynard Farms Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Problem Statement
Running an old family business creates pressure on Wayne Rynard, the current owner of Rynard Farms, to keep alive the family business and uphold the traditions on which it is run. HoweverHowever, in modern times the break-neck competition has taken place, in all kind of industries, on basis of rapid technological development and corporate world seeking to maximize its profits.
Introduction
The main issue facing Rynard Farms is the stiff competition it is getting from upcoming farmers making extensive use of latest technology and arriving in the farming industry on basis of high capital. This competition is causing the farm to lose its land to farmers with more capital.
Wayne Rynard is adamant in continuity of his family business but will be unable to carry it on due to unavailability of potential heir. Even though his family consisting of females has shown their support for the business, they have also expressed their lack of interest in being part of the business.

Rynard Farms Harvard Case Solution & Analysis
The basis of the family business creates an advantage of experience over competitors leading to the business being self-sufficient and perform strongly. Due to the strong performance, Rynard will be able to attract investors but he will also have to think about passing on the business after few years which he wants to work.
Selling the business is also tricky as evaluation needed to be done on farm may prove to be complex financially and may require extensive usage of information to be able to determine right price.
Industry Analysis (PESTEL Analysis)
PESTEL analysis deals with:
1) political,
2) economic,
3) social,
4) technological,
5) environmental and,
6) legal
aspects of the business side.It gives an overall view of performance of a business and helps in analyzing strengths, weaknesses, opportunities and threats. It further highlights the areas where the company is facing most problem including high costs areas. PESTEL analyses helps in outlining the future of the business based upon its past performances and the market flow.
Political
On political front, farming industry have never been able generate to government support. With even the subsidies being provided by the government being way lower in comparison to other countries, farming industries will have to seek to capital from private investors. Government’s subsidy stands at 40 cents per bushel as compared to $2.5 paid by USA to it farmers.
However, with changing trends and more and more people becoming health conscious, government is trying to support a rise in demand for organic food. Government is actively encouraging production of organic food through financial aid.
Rynard can take opportunity to expand into production of organic food beside his existing production of cash crop and cattle breeding. This would help in increasing the consumer base and profits and will also further attract potential investors, should Rynard decide to sell of the business.
Economic
On economic front, family farming businesses mainly follow traditional business models where the company revolves around certain individuals. There is fewer delegation of work and employees are not highly skilled and paid lower salaries.......