Zespri Grows Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Zespri Grows Case Study Analysis

Proceed with Current Operations

In this option, it is suggested to the Zespri Group stay with its current operational practices and strategies because these practices proved a success in the prior year’s financial statements. Zespri presents itself as one the top three largest kiwifruit exporters and its results highest overall average assets returns in the year (2015 – 2017) at about (9.3%)(Dalziel, 2018), which presents a high return on assets as compared to the other two exporters in the market. The quality of the Kiwifruits exported by Zespri is much good as compared to other exporters and this is the reason that makes Zespri the position of a market leader. The organization has high strictness in its internal standard and patents, which help the organization to create good relations with its supplier and help to gain the satisfaction and loyalty of the customers through their products. Moreover, the financial statements of Zespri present that the organization has stability in its operations and practices that ultimately help the organization to increase its total revenue stably. These factors consider the main reason Zespri can achieve a ($4.5 billion) global turnover in 2025.

Global Strategy with China

Zespri Group presents that it creates good relations in the corporate world and it ultimately helps the organization to get the cooperative partner to achieve the set goal. In this option, it is suggested to the organization come up with a new global strategy with China because China is situated in the Northern Hemisphere. It presents that the exports of China for Kiwifruits and Zespri exports are supplied in different seasons because of the change in the region and different times for kiwifruits to mature stumbles(Tangiora, 2022). Furthermore, all over the market and globe know that China delivers a flawless physical atmosphere and considers low labor costs for operational activities.

One of the main benefits and advantages for Zespri is that the people of China consider consistent buying power, which will ultimately help Zespri to increase its overall sales and revenues from exporting Kiwifruits to achieve (the $4.5 billion) target. In the current situation of the market, China considers being an appropriate and fastest-growing market for Zespri to export Kiwi all over the world. In the year 2017, the total kiwi sales of Zespri resulted by more than (20%) as compared to the total world’s sales. Moreover, the sales income presents highly growing percentages in 2017 as compared to the previous years. Moving from Japan to China helped Zespri to make itself the number one market leader in Kiwi exports.

Research and Development for Product

To achieve its target in the year 20205 and compete with the big exporters all over the globe then Zespri has to put more focus on the product (Kiwi) by improving its quality ad present innovation in the procedure of production because global market presents giants of exporters that use new technologies and high-quality products. Looking over the goal it can achieve by also investing more in (Research and Development) of the product that ultimately helps the organization to improve the procedure of the production of the Kiwi and also increase the overall quality of the product to compete in the global market. According to the customer reviews and analysis of the case presets the taste of Zespri’s (Kiwi) is satisfactory, which helps to increase the demand for the product by increasing its market price. The analysis presents that the price of Zespri Gold consider high prices because of its rare taste and still it provides (22%) of sales in total revenue. This is the factor that Zespri can use by developing and investing in new exotic fruit classes by including (red kiwi and organic kiwi) that help the organization to generate high profit by selling all over the globe because of new species present high demand with high prices. This option is also considered to be best for Zespri because improving the product line and categories in the product help to achieve the future target.

Learning from Zespri’s Business Model and Global Growth Process

Looking over the business model for Zespri it presents that the organization included an operating model in which it follows the overall process of Kiwi production by using the procedure from collecting to selling. This type of system helps the organization to achieve high-quality standards that consider being carried out in its overall supply chain process. Zespri presents a high level of growth globally and the main reason to get success in it that create and maintain good relations between supply and demand according to the need.

Zespri used harvesting and post-harvesting handling process for its all exports. Kiwi is harvested in the month of (March to July) and it’s marketed from (April to December)(Kindred, 2018). The post-harvesting process of the organization is used for classifying, packing, and warehousing by liberated post-harvest operators of Zespri. Taiwan's agriculture industry and the other stakeholders including (Hong Kong, Japan, and Korea) learn the process operated and used by Zespri for exporting and harvesting their products. They learn to create sustainable and long-term value for the growers of kiwi and also learn to manage the necessity of supply and demand. The main reason for Zespri’s success is thatit exports most of its production of kiwi from China because it provides kiwi in a different season as compared to other exporterswhich ultimately increases the sales ratio for Zespri.

Recommendation for Strategic Goal

After analysis of Zespri’s strategic goal for 2025 present’s feasibility but it needs to be focused on various things to achieve this goal easily and on time. The three options suggested to the organization are evaluated and it presents that the last option (research and development) process is the best option for the organization because it helps to increase the interest and sustainabilityof the growers of kiwi. It ultimately helps to increase the attraction and working interest of the growers or producers of the fruit. This option does not need any other global partner because getting a new global partner is considered to be very difficult and it also increases the risk of unpredictability.

Conclusion

Zespri becomes the 3rd largest exporter in the world because of their best marketing strategies which they had applied by making standards for the kiwi taste and quality so that customers get the same quality whenever they consume it. They have added value to their organization to be competitive against their rivals for having an inexpensive kiwi in the market. Now their goal is to get a sale of $4.5 billion in 2025 which is achievable if they use the same operational and financial strategies which will make not only its operations better but also get stability in revenues.........................

Zespri Grows Case Study Analysis

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