Chicken and Egg: a study of poultry genetics industry

Essay by pastnieceUniversity, Master'sA, April 2008

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A1:Problem StatementThe main problem is that the German and American companies share the same vision, but have major differences on how to implement it. (“..both shared the same vision – to maximize profits and company value – they diverged on the means to reach those goals.” Page 5.)NOTE: it is true that the overall objective (or problem) is how to maintain the company’s leadership position as well as revenue/profit growth in the industry in the current slow growth world environment. However, this cannot be solved satisfactorily until there is corporate agreement on how to implement the corporate vision, i.e. what overall strategy to pursue. If a group gave “how to maintain the company’s leadership position” as their main problem they got a mark of 10/14.

The main sub-problems are the following:•Lack of good communication between the German and American CEOs (neither spoke the other’s language), and thus, even though the case does not state it explicitly, poor communication at other levels as well leading to the main problem; NOTE: this sub-problem is the most important one and must be solved first for there to be any kind of success in solving the others.

This sub-problem must be one of the 3 mentioned – preferably first, but certainly mentioned. If it is not mentioned the maximum total mark will be 18/21.

•Decreased autonomy of the American subsidiary (increasing centralization in German head office) and invasion of the American market by Lohmann.

•Long-term planning by Hy-Line vs. short-term by the Germans•Emphasis on cost-cutting by the Germans vs. emphasis on market dominance, customer focus, and employee development and satisfaction by the Americans•simple yearly increase in profit by the Germans vs. more sophisticated approach to measuring profit by the Americans•Attacks by the animal rights movement on the industry•Outbreak of bird flu in...