Yu Ranch Case Study Help
Recommendations
The founder’s decision to expand the supply of GFSR seems to be a viable strategy which is evident by the increasing number of health conscious customers and demand of GFSR in Ontario. In addition, the farms enjoys competitive advantages including strong relationship with farmers, additive free beef production models, safe cattle raising and feeding practices and lower debt interest rates as compared to its competitors, it is likely that the business’s strategy to grow will be successful.
In order to achieve growth, it will be recommended to purchase the additional land required of more than 250 acres through finance lease as the present value of lease rentals calculated under the finance lease amounted $230033 as compared to present value of annual interest payments amounting $532632 (See Appendix 1). These values are based on various assumptions referred in the appendix 2. As the demand of GFSR is likely to increase further in the future, it is likely that the organization will be able to pay the annual lease rentals without compromising their profits.
In addition, in order to ensure business growth and to stimulate sales, the organization should enhance the awareness of GFSR beef among customers by marketing their menus and the hygienic practices they adopt in production of beef and feeding of GFSR cattle so that the customers can be made familiar with the health benefits and quality of the GFSR beef. Similarly, in order to achieve growth and stimulate its sales it will be suggested to the founder to target the major population centres which include London and Toronto by usingdistribution channels such as large supermarkets......................
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